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FRIDAY, NOVEMBER 11, 2005 12:00 AM

Real hope for progress on property tax reform

BY JAMES J. BAILEY

Over coffee several days ago, a friend of mine said, "Ten years ago no one would listen about property tax reform, now everyone is talking about it." A day or two later, Rep. John Graham Altman called to ask my opinion on property tax reform and reminded me of a conversation I had with him several years ago about the huge increases that would occur in the Crescent subdivision. These two conversations made me think back to the beginning of my concern over the present method of property taxation.

It began after the reassessment of 1983. At the time, I owned several properties in the city of Charleston and Sullivan's Island. I remember sharing my thoughts with then-Sen. Dewey Wise. There were not many outcries, however, and the issue faded away. There was an interesting debate in California, however, and I believe Proposition 13 passed that year or shortly thereafter.

In 1988, I decided to run for the S.C. House of Representatives and included in my brochure was a concern about my property taxes increasing by 275 percent, and I vowed to try and do something about it.

From the day I was elected until the day I left the General Assembly, I searched for ways to do something about what I perceived to be a bad law.

I introduced bills but never got anywhere with them. There were several problems, not the least of which was a very complicated issue. In addition, other areas of the state were not yet experiencing the huge increases that we were in Charleston and therefore could not relate to our problem.

I remember telling Jack Simmons, chairman of The Committee to Save The City that until Greenville and a few other counties received the jolt we were beset with, nothing would happen. In addition, the municipal and county associations were opposed to any changes in the current law. They would, then as now, do anything to protect their sacred cow.

In the mid-'90s I appeared before our Charleston County Legislative Delegation and warned what was to happen in the next reassessment.

At that meeting, then-Sen. Ernie Passailague asked his fellow members to allow me to be on the delegation subcommittee dealing with property tax reform.

After a number of attempts by Sens. Passailague and Glenn McConnell in the Senate and Reps. Altman, Bobby Harrell, and Chip Limehouse in the House, it occurred to me that any proposed legislation should be local option.

While this would solve the political problem of other counties, it also became clear to me that one law for the entire state was an idea left over from the days our state was so different from what it is today.

The current law was created by a largely rural Legislature whose members represented farm areas. In addition, the urban areas experienced little or no economic growth.

It was at this point that I met with Bernie Maybank in the Department of Revenue and together came up with the 15 percent cap idea.

I need not dwell on what happened with that legislation.

Today, I see some real hope for something being done to make a change in an antiquated law because Charleston County is not the only county experiencing huge property value increases and higher taxes. Some residents of North Charleston are now dealing with increases they never thought would occur.

I believe local elected officials will do everything they possibly can. The reality, however, is that well-paid lobbyists, the municipal and county associations and other legislators will be fighting any proposal that changes the status quo. It will take a two-thirds vote of both bodies to get anything done.

Think about discussing a controversial subject among 10 or 15 people at the corner grocery store, a favorite pub or anywhere people gather and try to get two-thirds of them to agree on a controversial matter. Everyone is for what is right, but sometimes a consensus, much less a two-thirds vote, will not happen.

I trust our delegation to do their best. We need to encourage but not hamper them with proposals that will not get enough votes. It would be nice if all property taxes were eliminated, but that just is not going to happen.

If I were king for a day, I would do the following:

--Increase in the sales tax to provide for state support of operating expenses for public education, K-12, eliminating the tax on homeowners. To eliminate taxes on all real property is risky and probably not feasible.

--Provide for a 15 percent cap on all property with base value changing when property is sold. If a local government selects the caps; a roll back tax similar to the agriculture roll back should be allowed. This roll back tax should be used only for bond payments. A percentage would go to the school district based on a formula.

--If the local option sales tax is not repealed, that money should also be required to pay bond debt. I regret the day that we did not require this when we passed local option.

Some of the above would require a constitutional amendment. I believe an amendment would pass, provided the public is given some options.

James Bailey is a former state House member from Charleston.


This article was printed via the web on 11/16/2005 9:22:07 AM . This article
appeared in The Post and Courier and updated online at Charleston.net on Friday, November 11, 2005.