Posted on Thu, Apr. 22, 2004
EDITORIALS

More Money, No Tax Rise
Sanford should sign bill to speed up tax collections


Gov. Mark Sanford rightly objects that bills applying to one county only - local bills - enable legislators to micromanage their home counties from Columbia. So it's good that the General Assembly broadened a local bill for Horry County to help other fast-growing S.C. counties defray the costs of absorbing new residents.

The bill, now on Sanford's desk, would allow the councils in counties that collect more than $10 million a year in accommodations taxes to put new homes and business buildings on the property-tax rolls twice a year instead of once. Counties undergoing building booms and rapid population growth could collect property taxes on new construction sooner than current law allows - a blessing for school districts in particular.

Under current law, a new building occupied in the early months of a year escapes property taxation for as long as 23 months because such buildings go on the tax rolls only in December, with taxes for a given year collected late in the following year. The effect: New residents absorb public services that they do not immediately help fund.

If Sanford signs the bill, local governments in qualifying S.C. counties could start putting new buildings or improvements on existing buildings on the tax rolls in June as well as December. Owners of buildings enrolled in mid-year would receive a prorated tax bill the following December.

Why use $10 million-plus accommodations tax collections as the trigger for twice-a-year property-tax enrollment? Accommodations tax collections reflect annual visits, and visits correlate with the influx of new permanent residents.

The bill would capture tax money that governments should be getting anyway - without raising tax rates. For that reason especially, Sanford should sign the bill immediately so that qualifying counties can begin collecting due taxes this year.





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