South Carolina property owners pay taxes based on their property’s fair market value, i.e., the price on which a seller and buyer would agree. Now the S.C. Golf Course Owners Association has drafted legislation to free the state’s golf course owners from most of their property taxes by forcing counties to calculate an artificially low value for golf courses based on their gross income.

Since this legislation does not reduce any county’s spending, all other property owners will have to pay more property taxes to make up for taxes not being paid by golf courses. Ironically, this legislation’s chief sponsors are from the coastal counties whose property owners will be hurt most if this becomes law.

Although it might be possible to analyze golf course selling prices and derive a formula relating price to gross income, the formula in this bill was simply pulled from the air to generate reduced values. We should examine the justification for this significant departure from a uniform and equitable tax policy.

Golf course owners claim that assessors “regularly overvalue” property during reassessments. They do not say how this escapes the state’s examination of every county’s reassessment, nor do they offer even one example of a golf course that sold below its valuation.

Their only evidence is that “several” golf courses have gotten their appraisals reduced. They do not address how many hundreds of golf courses did not appeal their valuations because they knew they were already undervalued.

They also cite the “problem” that golf courses are valued differently in different parts of the state. State law allows this, under the theory that local people know local land values best. An artificial formula from Columbia, based on nothing and designed solely to reduce taxes on golf courses, is hardly the foundation of a uniform tax policy.

And wouldn’t we want to solve this “problem” not just for golf courses but also for shopping centers, woodlands, wetlands, residences — all real property in the state where the value is now being set locally? If valuation methods are to be dictated by the Legislature, it should be done as part of a comprehensive overhaul of property tax policy, not just to reduce taxes on the pet business of a few legislators.

Professional tax assessors protest that this legislation will set golf course valuations far below their actual market value, forcing all other property owners to pay more of each county’s expenses. Sen. Scott Richardson, R-Beaufort, a bill co-sponsor, answers that he is not “sympathetic” and says that tax assessors “are just trying to protect county revenue.”

He should be sympathetic; his constituents will be among those hurt most by this legislation. In fact, assessors’ actions do not affect county revenue — only the way the property tax burden is distributed. State law requires that tax rates be rolled back to prevent increased valuation from increasing county revenue.

The first step in this process should be demonstrating that there is a problem with golf course valuations. The fact that golf course owners do not like their appraisals does not mean there is a problem. The fact that some golf courses have persuaded assessors to reduce their valuations does not mean there is a problem. To prove that there is a problem, golf course owners need to show that golf courses routinely sell for less than their valuations.

I challenge the supporters of this bill to present data for all golf course sales in the last 10 years and to prove that the average assessed valuation at time of sale is higher than the average selling price. Until they prove that they are overvalued, there is no reason to even consider their proposed changes. I believe they will not respond to this challenge because they know the inverse is true — that the average golf course selling price is much more than its assessed valuation.

A good illustration of the assessors’ concern is North Myrtle Beach’s Gator Hole course, which sold for development in 1999 for $14.8 million. At that time its assessed valuation was $4.4 million, indicating that the owner had been paying taxes on only 30 percent of its actual value. And this is the valuation that the legislation would reduce!

Under this bill the course would be valued today at an estimated $2.7 million, 18 percent of what it sold for four-and-a-half years ago. This example suggests that golf courses are undervalued and that assessors should be looking at the full development potential of golf course land when determining its fair value.

This legislation, drafted by golf course owners and introduced by legislators representing the people whom it will hurt most, is a shameless raid by golf courses on the pockets of every other property owner in South Carolina.

Mr. Kanel is a chemical engineer and business consultant from North Myrtle Beach.