Posted on Thu, May. 20, 2004
S.C. BUDGET

Cap not right way to stabilize property tax



As expected during an election year, voters in communities are besieged with promises from politicians seeking re-election or those aspiring to become elected. In South Carolina, this is particularly true. This year, we are being overwhelmed by so-called "do-gooders" who hold out promises to revise the method or means by which government should amend or in some cases even cancel tax laws such as the residential property tax.

One of the more than 180 such tax adjustment ideas that really bothers me and thousands like me is a regressive tax bill now before the S.C. Senate for approval. This bill proposes to place a mandatory cap on the assessed value of high-dollar properties, such as waterfront residences, including those possessed by absentee owners, until sold. Certainly a win-win for such a residential property owner.

Using the "little old lady" in jeopardy of losing an expensive waterfront home because of being taxed at a rate she may not be able to afford is the excuse given by proponents of this regressive idea. I say to them, these occasional circumstances have more advantages than disadvantages.

Property such as this appreciates because of its increasing fair-market value. Thus, it becomes a good investment for those who are lucky enough to inherit same or purchase same. After all, thankfully, we live in a country with a market-driven economy and for the most part have a progressive taxing system.

Our communities cannot continue to grow at the rate they have by implementing such regressive tax cap laws. I agree with The Sun News editorial ("Tax cap bill unfair," May 6) that needed government services, civil as well as educational, must be provided if we are to remain the envy of the world. We must not transfer the responsibility of funding these services from the haves to the have nots. Expert economic analysts have shown that such would be the case should this residential property tax cap bill obtain the S.C. Senate and our governor's approval.

There are alternatives to keeping our owner-occupied property tax more stabilized - amend the state developer impact fee law on new development, for instance. Horry County Council is in the process of submitting such a proposal to the General Assembly under the OK of Horry County Council Chairwoman Liz Gilland and the impact fee panel Chairman Councilman Harold Worley, District 1.

[Readers] should tell their state senators to say no to the proposed residential property tax cap bill but to say yes to the forthcoming amendment to the developer impact fee legislation.


The writer, president of We the People of Horry County, lives in Little River.




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