For the past month, a number of county governments facing mandatory property reassessments have been in limbo, waiting to see whether the governor will veto or sign into law an act that mandates a 20 percent cap on real property tax assessments in all the counties. It's time for the governor to end the suspense.
We previously have urged the governor to veto the legislation, and we continue to believe that is the right course. Among other pluses, it would give the affected counties impetus to proceed with reassessment this year. If he signs the bill, the 20 percent cap almost certainly will be immediately challenged in the courts.
The state Chamber of Commerce has pointed out that no one even knows whether the legislation is properly before the governor since there was no recorded vote in either the House or the Senate. Both bodies passed the last-minute legislation by voice vote. Legislation that alters the state's tax structure requires a two-thirds vote in each body.
Further, the legislation is constitutionally suspect. The state constitution requires that property be assessed for tax purposes at fair market value. Indeed, a lawsuit was filed on just that point by the city of North Charleston challenging an earlier 15 percent local option tax cap adopted only by Charleston County.
The governor's signature on the 20 percent cap bill would do nothing but delay an answer from the state Supreme Court on whether a cap can be imposed at all without a constitutional amendment. The North Charleston suit is on its way to the state Supreme Court. But the new legislation voids the 15 percent cap, which means that lawsuit would be moot. A new lawsuit almost certainly would be filed on the 20 percent cap, further delaying a final decision by the state's high court.
Counties are mandated by state law to reassess properties every five years, and about 10 are scheduled to take that step this year. One-year waivers can be granted only once and at least one county scheduled for reassessment -- Beaufort -- already has used up its extension period. Association of Counties Executive Director Mike Cone describes the situation as a "mess," and is among those who believe the 20 percent cap before the governor should be scrapped.
So does Berkeley County Supervisor Jim Rozier, who notes his county is in the process of requesting the one-year reassessment extension. Mr. Rozier says any property tax cap would be fraught with technical minefields and legal problems. He said he only would support a constitutional amendment that would freeze the assessments -- for tax purposes -- for property owners 65 and over.
We have agreed with those who argue that there are legitimate areas of tax structure concern, particularly involving elderly homeowners in areas where values have wildly escalated. But the Legislature hasn't faced up to the fact that this is a constitutional issue that can't be resolved short of a constitutional amendment.
If the governor vetoes the bill, the 15 percent local option cap will still be law and the North Charleston challenge to it will go forward. There's a good chance the high court can then settle this matter before next year's legislative session ends. If he signs the 20 percent statewide cap, the new litigation will take far longer to resolve. Either way, time is wasting.
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