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. |