County leaders to focus on property taxes
Monday, January 23, 2006
Aiken County Council members, chief administrative officers and assessors
from a number of counties will have an opportunity to become better informed
Tuesday about the property tax restructuring proposals as part of the South
Carolina Association of Counties Lobby Days.
The lobby days will provide an opportunity for the contingents from the local
communities to be briefed on the latest legislative information, and give them
additional resources of where they’ll be able to find the key legislators,
according to the Association of Counties.
The two versions of the tax proposal have the ability to generate revenue
that’s necessary to provide local services and public education in a way that’s
more palatable to taxpayers.
The proposals have the potential to affect bond ratings, local services and
will have a direct impact on communities business climates.
“The legislative day affords the opportunity for the legislature in Columbia
to get a better understanding of what the priorities are at the county level,”
said Scott Singer, Aiken County Councilman. “Anytime property tax restructuring
is considered it can’t violate the spirit of Home Rule.”
The Senate’s version of the proposed bill adopted two constitutional
amendments that addressed the valuation for property tax purposes and a millage
cap on Dec. 1.
“I’ve already had some discussions regarding the property tax restructuring
proposals,” said Chuck Smith, Aiken County Council representative. “This is an
important issue from my community’s standpoint. We’re looking at it carefully
because we’re a border community. A change in the tax restructuring could have
far reaching effects. By shifting the property tax to the sales tax, it has the
potential to have a negative impact on the community. I haven’t heard all of the
proposals, and it’s still a novel proposal.”
The House Ad Hoc Property Tax Study Committee met on Dec. 7, and produced a
conceptual framework, which will be drafted and introduced, the senate proposal
remains as it was adopted, according to the Association of Counties.
Under the house’s plan, the proposal calls for the elimination of all
property taxes on owner-occupied homes for the operational expenses of schools,
municipalities and county governments; property taxes levied for current and
future bond debt would remain on homes; the proposal will also exempt unprepared
food from the existing sales tax; increase statewide sales tax from 2 percent to
7 percent; eliminate reassessment on all real property, going to a “point of
sale” system or a freeze on property tax variations; counties will also be given
the option to recognize improvements for property taxation as early as one month
after the improvement is sold the initial time; local millage rates would be
capped, with each year’s increase limited to the increase in the Consumer Price
Increase plus the population growth.
