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May 28, 2006   •   Beaufort, South Carolina 
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Officials are mixed about taxes
Some are wary, others are optimistic
Published Sat, May 27, 2006

Local officials are trying to figure out what a property-tax relief deal struck Thursday means for Beaufort County property owners and the public schools.

So far, local lawmakers and county government and education officials all have different interpretations -- some that sound better for the county than others -- of the compromise reached by a six-member conference committee.

"It could be tremendous news for Beaufort County," said County Council Chairman Weston Newton. "The devil is in the details, and the mechanics of how this will work are what are very significant."

The plan, which still must receive approval from the state House and Senate, would eliminate school-operating taxes on owner-occupied homes and increase the state sales tax by a penny to 6 cents on the dollar. The state sales tax on groceries would be reduced to 3 cents. The additional sales tax would be used to fund South Carolina's schools.

The deal also would cap how much a home's value can increase during any five-year reassessment. Under the plan, values could not rise more than 15 percent in that period. It also would allow people to pay their property-tax bills in installments.

On the school-funding issue, the Beaufort County School District's operating budget currently is $137.3 million, which property owners fund by paying 77.9 mills. In theory, Newton said, those mills would be eliminated on tax bills for owner-occupied homes.

Rep. Bill Herbkersman, who sat on a committee that reviewed some of the plan's details, said school districts would receive the same amount they currently spend. He said the plan accounts for inflation and population growth, though he is concerned whether it will be equitable for all counties.

Herbkersman did not know whether counties could raise taxes on homes not occupied by their owners to pay for school operations. He had not received a copy of the conference committee report as of late Friday afternoon. Newton also was seeking a copy of the report.

Overall, Herbkersman said, the changes could benefit Beaufort County property owners and schools.

"Right now it's a really good formula for us," Herbkersman said. "We accomplish two things: We lower our property taxes, and we do get a substantial amount of money back from the state."

Phyllis White, the school district's chief financial officer, spent Friday on the phone with her counterparts in other districts and the South Carolina School Boards Association trying to figure out what the plan means for Beaufort County schools. She's still not sure.

"It's too premature to make any kind of determination because they didn't give us a lot of details," White said.

Beaufort County School District Superintendent Edna Crews isn't optimistic about the plan. She hoped to review the details over the weekend.

"On the surface, it doesn't look like it's a great plan," she said. "If one of the issues is how do we fund education in South Carolina, I don't believe this is the answer to that question."

The plan doesn't change the Education Finance Act formula that gives less money to districts that have a high value of total assessed property. This year, Beaufort County is scheduled to lose $15 million under that formula. Herbkersman said lawmakers will begin work this summer to reform that formula.

Lawmakers are expected to vote on the deal Tuesday. Herbkersman said he plans to read it over at least five times to ensure he has a grasp of the changes and what they mean for Beaufort County.

The Associated Press contributed to this article.
Contact Ginny Skalski at 706-8144 or .
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