The Uniform and Fair Golf Course Valuation Act of 2004, a concurrent measure in the House and Senate, was modified and approved in the Senate Finance Committee on Thursday with a higher tax rate than the original proposal. While the legislation could undergo many changes before it becomes law, the proposal changes assessments of golf courses to a percentage of gross income instead of just being based on the land's fair market value.
The driving force is reassessment, the same force that is driving the debate over assessment caps in several counties and the General Assembly. Golf courses, like waterfront homes in fast-growing coastal counties, have experienced an increase in value.
Golf course owners complain that a one-size-fits-all plan is unfair because golf courses are like neighborhoods. Some are in better condition than others.
Still, a uniform method of valuation and taxation must be found so taxation will be fair.
The proposed law has many county officials, especially those in coastal counties like Beaufort and Horry, worried about a loss of tax revenue from golf courses and where the burden would shift. According to Beaufort County Assessor Bernice Wright, the county tax burden for Hilton Head Island golf courses could be reduced from $105,930 to $35,932.
Statewide the original proposal carried a $7 million cost to counties, according to The Sun News at Myrtle Beach. After changes in the Senate on Thursday, that was cut to $5 million. According to DiscoverSouthCarolina.com, the state has at lest 330 golf courses. Beaufort County has more than 60 courses and Horry County has at least 88. The cost to counties could be sizable.
The current method of assessment has many problems. It allows each county to choose one of three methods of assessing the value of golf courses. The formula also should be simplified so it reduces the number of appeals, which are costly to golf course owners and counties. A uniform method of taxing the courses would be fairer and could reduce the number of appeals.
With so many golf courses, Beaufort and Horry counties should be leading the way to calculate the cost and benefit and helping structure the legislation.