We've been hoodwinked, I think, and some of us are going to pay
for it next year.
Greenville County Council's decision to delay reassessment was
shortsighted, motivated by a few people who stand to gain and bought
like snake oil by a population that's understandably tired of
increasing property taxes.
First a confession: I moved to South Carolina from a state that
rarely saw a tax it didn't like. My property tax bill on a home
worth $97,400 in Green Bay, Wis., was $2,164. I expect my tax bill
this year on my home in Greenville County (worth about $125,000) to
be a little more than half of that. You might understand, then, why
I initially wondered what all the fuss was about property taxes.
But it's all perspective, I suppose. In Wisconsin, no property
taxes are collected on cars, and groceries are exempt from sales
taxes. That aside, the last thing I want to do is tell everyone in
South Carolina they're crazy to complain about how high their taxes
are. But it is counterproductive to complain about them and then
take action that might make it even worse.
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That's what Greenville County did last week. But it was drawn
into it by a Legislature that sold us a bill of goods in the guise
of property tax "relief." That plan includes a referendum this fall
to cap the growth of assessed property values at 15 percent. I
expect the referendum to pass, given the angst we have over property
taxes.
There certainly will be some people able to say the cap relieved
their taxes -- but they'll be the owners of higher-priced homes
whose values are skyrocketing. Those in modest or less-than-modest
homes that increase in value at or below 15 percent (not to mention
those decreasing in value) will wind up bearing a greater share of
the burden, and their taxes might actually increase. Regardless,
they'll probably pay more than they would have without a cap and if
reassessment had been done this year.
It's been said by some that property taxes are like paying rent
on your home, that you never really own your property. That's hardly
true. Every home incurs expenses for the community. Roads must be
built and maintained, fire and police departments must be staffed,
garbage has to be collected and children need to be educated.
Property taxes are the most equitable way to pay for all that,
and the fairest way to figure out who owes what is to base the taxes
on the values of our homes. Those whose homes are worth more pay
more and those whose homes are worth less pay less. For that system
to work, the county must regularly recalculate assessed values. If
it doesn't, things get out of whack.
Throw in an artificial 15 percent cap and delay reassessment
until after that cap is in place, and you've got a recipe for
disaster. We're now almost certain to wind up collecting too much
taxes from people whose homes' values increase less than 15 percent,
and not enough from those whose homes should have increased more
than 15 percent.
If some entities take advantage of the system, the answer isn't
to treat the symptoms. We need to prevent those entities from
reaping windfalls due to reassessment and require them to be honest
with constituents by explaining precisely how taxes work. For
instance, a 42.5 mill rate year after year to pay for school
improvements is, indeed, a tax increase when levied against growing
property values. Tax policies for all entities should essentially be
"revenue-neutral," with overall mill rates adjusted down to collect
the same levy based on new property values unless a strong case is
made for a tax increase.
Delaying reassessment won't prevent tax increases. Neither will a
15 percent cap. Those options only make the system less fair as long
as there are systemic problems. County Council didn't fix anything
Tuesday night, and it might have made things worse.
I'm afraid next year, when the cap is in place and reassessment
takes place, many of us are going to pay with unexpectedly higher
property taxes.
What sort of elixir will we use to fix it then? |