The state Legislature passed a bill before the session ended last week that put a cap on local property tax reassessments. While it still has to be signed into law by Gov. Mark Sanford, the cap would prevent counties from raising the assessed value of houses, buildings, swimming pools and other residential and commercial properties more than 20 percent.

All properties in York County went through the last reassessment in 2001, a process that happens every five years, unless an extension is granted. York County received a year's extension in 2000.

Properties have to be re-evaluated again by 2005, according to state law. County appraisers got started on that process a couple of years ago, but officials say they are working to determine what impact the new cap will have on residents' tax bills.

For example, in 2000, the owner of a $100,000 house in Rock Hill paid about $923 in county, city and school taxes. In 2001, the owner of the same house, valued at $125,000 after reassessment, paid about $1,226, an increase of $303, or 33 percent. On average, home values increased about 25 percent.

The new cap could aid taxpayers on a moderate to low income who live in high growth areas such as York County and the coastal counties, said Rep. Vida Miller, D-Georgetown, the bill's sponsor. Personal property -- such as cars, boats and airplanes -- is excluded from the reassessment.

"There are folks on moderate income living on valuable property where the taxes are so high due to reassessment that they can't afford to live there anymore," Miller said.

But opponents of the legislation say the opposite is also true. They have argued that those who live in less affluent neighborhoods will have to make up the tax difference for those who do.

For instance, the reassessed value of lakefront homes like those in Tega Cay and Lake Wylie would be capped at 20 percent, so the homeowner would not be taxed for its true worth. But the cap wouldn't really benefit someone whose home wouldn't be reassessed much more than 12 percent, said Robert Croom, assistant director for the S.C. Association of Counties. They would still be paying a property tax increase that reflects the real reassessed value of their home.

The association also fought against the cap because it feels the majority of tax bills will go up. The rate used to calculate property taxes, or millage, would have to be increased so that revenues stay neutral, officials say.

Miller disagrees that the cap is a tax shift.

"There has already been a shift in the last 10 years or so to the homeowner," Miller said. "Anytime local government adds more money to its coffers or offers tax incentives for commercial development, it usually places the burden on the homeowner. At least this will give them a break on the property reassessment."

A similar 15 percent cap was passed by the General Assembly in 2000, but it wasn't mandatory. Only Charleston County opted to use it and later suspended it after several lawsuits were filed because it wasn't passed on to all property owners.

Erica Pippins • 329-4072

epippins@heraldonline.com