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ScribeBy: Arlie Porter of The Post and
Courier Staff
Originally Published on: 4/26/03
Reassessment cap lawsuit in hands of state Supreme Court
Beginning as early as today, nearly 100,000 Charleston County taxpayers will receive notices in the mail informing them that they might be due a property tax refund.
After losing an initial court battle over a reassessment cap enacted two years ago, County Council was ordered by a judge to issue the notices, which were mailed Friday.
In all, 97,305 taxpayers paid higher taxes because of the illegal reassessment cap, according to the court ruling and county tax records.
The notice is part of a class-action lawsuit filed by more than 100 property owners who paid higher taxes than they would have if the cap had not been passed for the 2001 tax bills.
Those who receive the notices are automatically included in the class-action suit unless they send in a form to opt out. If they do nothing, they may receive a tax refund settlement from the county.
Those who opt out won't share in any refunds that a court might ultimately order, and they won't be bound by any decision in the lawsuit. They also could choose to pursue their own claim.
It's not clear, however, what the outcome of the lawsuit will be or when it will be settled, although one attorney predicted it may be a year or even two years away.
When taxpayers receive the notices, "they're going to think that it's about time that they receive a refund from the illegal cap ordinance. They (County Council) forced them to subsidize other taxpayers in Charleston County," said Trenholm Walker, an attorney whose firm is handling the class-action suit.
Walker predicted that less than 5 percent would opt out.
County Council chairman Tim Scott said that while a judge has ruled the reassessment cap illegal, his decision is being appealed. Until a final ruling, which is expected from the S.C. Supreme Court, the cap is legal, he said.
The mailings include a letter and legal documents describing the litigation and the potential for refunds, which could amount to as little as pennies and as much as thousands of dollars, depending on the value of a taxpayer's property.
Those wishing to opt out have until May 23 to notify Walker's firm. Walker said that a Web site, www.refundillegaltax.com, is set to be up and running with additional information next week.
County officials said it cost $48,477 to print and mail the notices.
They also have said that if the county is ordered to issue refunds, the county would have to increase property taxes to raise the money.
The 2001 cap primarily benefited those who owned their own home and only if that home increased substantially in value.
Meanwhile, County Council is considering whether to enact another version of the cap this year. This one would benefit owners of both residential and commercial property whose values soared in the 1990s.
The Charleston County School Board and the city of North Charleston, claiming that the vast majority of taxpayers would pay higher taxes with the new cap, have filed lawsuits challenging it.
Under the latest cap, owners of 82,000 residential and commercial properties would pay higher taxes, while 53,000 would pay less, according to county assessor estimates. In effect, the cap shifts the property tax burden from commercial and residential properties that have increased substantially in value in recent years to all other properties.
Kiawah Island, where most property owners would benefit from a cap, has joined the county in defending the new cap in court.
FOR MORE INFO Those with questions about the reassessment refund notice may call 720-7602
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