Beaufort County governments would be hit with deficits totaling more than $40 million if the governor were to sign the legislation after property tax bills go out in mid-October.
There is no need for the county, municipalities and school district to suffer this uncertainty.
And under no circumstances should the governor take any action that would invalidate tax bills after they are mailed. Charleston County is in a serious bind because it used a similar tax cap in a way the courts ruled was unconstitutional. Now it faces expensive refunds it cannot afford. It's a mess that Beaufort County does not need or deserve to face.
Beaufort County needs to get the tax-bill question behind it, and the governor's veto would do that.
The problem started on the last day of the 2004 legislative session when state Sen. Scott Richardson, R-Hilton Head Island, added an amendment to another bill, which passed. The amendment would limit increases in property assessments for tax purposes to 20 percent. That means the more your property value grew over the past five years, the greater your tax break would be. It is unfair, and it appears to be unconstitutional because the state constitution says property taxes must be based on fair market value. The governor's veto would allow more time for the state Supreme Court to rule on that question, which has been raised in Charleston.
Meanwhile, the Beaufort County situation illustrates the unfairness of the bill.
The county recently sent out residential reassessments. Subsequently, the County Council set the tax rate. But what happens if the assessment cap is enacted? The tax rate would likely increase because $40 million in revenue would disappear. That $40 million would be made up inequitably, with people with lower home values paying a greater proportionate share.
Soaring property values are creating tax problems for a lot of people. The governor's veto could force a better solution -- one that is equitable. And it could eliminate uncertainty in Beaufort County.