Property tax reform and relief effort needs vocal support of people

A letter from Senator Glenn McConnell, published in The Post and Courier
Originally Published on: 7/10/05  

One of the cruelest taxes of all, the property tax, is long overdue for reform or even more, extinguishment in South Carolina. As long as we have property taxes, we are, in effect, paying rent to the government for the use of our property, which we have paid for or will pay for with money already taxed and risk losing to the government if taxes increase more than our earnings.

 

These local governments can charge us as much as they want and feed their need to spend our money like they have a blank check. Some hide behind the excuse that it is state law and that we need to talk to our legislators if we don't like it.

 

But, when we attempt to change these laws or give citizens the right to vote on meaningful reforms, local government lobby groups like the Municipal Association and the Association of Counties become as busy as termites undermining or diluting the amendments proposed. Their

presumption for reform has always been more sources of revenues but lesser and lesser restriction on how and how much they can spend.

 

Faced this year with the growing need for change and the failure of past efforts statutorily, I proceeded to author constitutional changes to empower the Senate Judiciary Committee to move forward into this area. I appointed a special subcommittee to deal with this in the summer and fall interim on which I will serve personally. Our subcommittee is joined by a Senate Finance Subcommittee on the subject, so we have a good chance for reform.

 

The reform will focus in three areas:

 

1) Reassessments, valuation, and collection of the property tax;

2) Possible substitute revenue resources in lieu of the property tax; and

3) Possible elimination of property taxes.

 

The goals must be fair and at the very least the reforms must not produce a net increase for government in collected taxes. Some of the proposals to date are:

 

1) Limit by constitutional amendment the taxable value of your property to the time you bought the property, built on it, gifted or devised it or developed it.

2) Limit by constitutional amendment the increase in property value to two percent annually until you sell, gift, devise or develop it.

3) Limit property tax increases to the annual percentage increase in personal income.

4) Limit the total tax which may be assessed against property to one percent of the value of the property.

5) Place by constitutional amendment a limitation of a 20 percent cap on the amount your property may be increased in value in any reassessment cycle.

6) Increase the sales tax by 2-1/2 cents to 3 cents to eliminate all property taxes on real property in South Carolina.

7) Increase the sales tax enough statewide to replace all education expenses paid by property taxes.

8) Constitutionally cap property tax millage rates and prohibit local government entities from increasing these without a vote of the public in a referendum.

 

Our goal of reform must be determined and must involve a grassroots movement of the people. We need your proposals for change, your active support and your opinions as we undertake this challenge. Let us hear from you or the silence of the people will be construed as a tacit endorsement of doing nothing.

 

I will be taking our subcommittee across South Carolina to solicit your ideas on reform and to get your support for the showdown in Columbia next year. We need a two-thirds vote in the House and Senate to get the constitutional changes on the ballot so that you can vote on it. Be assured the local government lobbyists will be there to stop or slow down change. But you have the power to make it happen If you want change, we need you to let it be known that you favor reforming property taxes. In order to effectuate change, legislators need to hear from their constituents telling them what they want.

 

Hopefully, the voices of the people from the mountains to the coast can drown out those of the paid lobbyists.

 
Web site created by Scribe hieroglyphicMy Scribe
Copyright © 2002  WelcomeToKiawah.com. All rights reserved.
Revised: April 27, 2007