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ScribeBy: James Scott of The Post and
Courier Staff
Originally Published on: 4/8/03
Waiting for court's ruling would be prudent, N. Charleston mayor says
North Charleston Mayor Keith Summey has threatened to take Charleston County Council to court to block implementation of the controversial reassessment cap before property tax bills go out this fall.
In a March 28 letter to County Council Chairman Tim Scott, Summey said the county should hold off on applying the cap to tax bills until the state Supreme Court has ruled on the cap's legality.
Summey said also that North Charleston, which sued the county in February to test the cap, will not help repay roughly 85,000 taxpayers who paid too much under the county's previous cap. That cap was ruled illegal last year.
"Why put us at risk again until the court has determined how it should be handled," Summey said Monday, adding that he will consult with the city's legal department before determining a deadline to seek an injunction to block the cap. "If County Council makes that decision, then they have to live with the repercussions of it and not pawn it off on other entities."
County Council, which voted in November to move forward with the reassessment cap this year, unanimously voted last week to spend $75,000 to program computers to calculate the cap in this year's tax bills.
Scott said Monday he hopes the Supreme Court will rule on the cap before mid-July, which is the last chance the council has to change its mind before the September tax bills are calculated.
Attorneys on both sides have said they can't predict whether the court will rule before the county's July deadline."If the court has not ruled by the summer, then we will probably pause, take a look at it and decide whether we can extend the time before sending the tax bills out or make a decision to act one way or the other," Scott said. "At this point, we are moving forward and hoping the Supreme Court will rule."
Most council members say they support the cap and intend to press forward with it this year, short of a Supreme Court ruling against it.
North Charleston City Council, which over the years has passed four resolutions against the cap, has argued that the cap shields residents in downtown Charleston and in the beach communities from rising taxes while sticking North Charleston residents with the tab.
The cap, which first was implemented in 2000, limited property value increases on owner-occupied homes to 15 percent in a reassessment year, giving a tax break to homes that appreciated rapidly. As a result, owners of homes that did not increase as much in value, along with owners of commercial property and second homes, paid a relatively higher tax rate.
The state Supreme Court ruled last year that capping only owner-occupied homes was illegal, prompting the council to institute a new cap this year. The new cap would also apply to commercial properties that have increased substantially in value.
After the Supreme Court ruled the first cap illegal, a state judge ordered the council to refund taxes to as many as 85,000 property owners who paid higher taxes because of the first cap. Council members are appealing the lower court decision. County officials estimate the refunds could total between $8 million and $12 million.
Summey and other North Charles-ton leaders said they will not contribute any money to help repay the 85,000 taxpayers. Preliminary numbers, Summey said, call for North Charleston to repay about $750,000. The school district, he said, could have to come up with $7 million, and the city of Charleston $3 million. "If there is any community that shouldn't have to pay any money back, it's North Charleston since we were adamantly opposed to the cap," said Summey.
North Charleston officials argue that city residents will fare even worse with a cap applied to all properties. According to information provided by the city, roughly 97 percent of 67,282 taxable properties in North Charleston, from cars and boats to homes and businesses, would be taxed more if the cap is put in place. Beyond North Charleston, city figures show that about 89 percent of 497,320 taxable properties countywide would face higher taxes if the cap is implemented.
"I cannot believe some of the people on County Council," North Charleston Councilwoman Phoebe Miller said Monday. "When they have already made one mistake that is going to cost them millions, now they are going to do it again. Where are their brains?"
Some North Charleston City Council members, frustrated by the ongoing saga, went so far Monday as to criticize County Council members who represent the north area and have supported the cap in the past. City Councilwoman Dorothy Williams singled out those members, A.D. Jordan, Carolyn Conlon and Scott, claiming that because county officials are elected at-large, they had "sold out" to the wealthier communities to garner political support.
"They have been selling out since they got elected," said Williams. "They have never supported us. I think they should be ashamed."
Jordan countered Monday, arguing that the cap also will benefit residents in North Charleston. "I am looking out for the residents of North Charleston," he said. "With all the new development and redevelopment, property values are already going up and the 15 percent cap will help them also."
Conlon, who was not on council last summer when the vote was cast, said she felt the new cap would help North Charleston area residents.
"When taxes are such a burden to people, then something needs to be done," she said. Her husband, former Councilman John Conlon, had voted in favor of the new cap.
Scott, who also represents the north area, voted for the original cap, but opposed the current one. All County Council members voted in favor of recalibrating the county's computers to collect the taxes with the cap.
"There are some positives and negatives about the cap," Scott said. "We need to continue to let the majority speak, and we need to find a way do what's best for the community."
With the cap, the owners of 82,000 residential and commercial properties throughout the county would pay higher taxes, while 53,000 would pay less, according to county figures.
Those who benefit the most from the cap are owners of large commercial properties and homes that increased the most in value in the 1990s. Because the owners of these properties pay less in taxes, most homeowners and commercial property owners would pay more. Taxes on more than 300,000 cars would also be higher with the cap than without it.
Meanwhile, Historic Charleston Foundation has announced that it will hold a property tax forum on April 16 in downtown Charleston.
The 7 p.m. public forum is expected to focus on the reassessment cap, organizers say. Speakers at the forum, to be held at Physicians Auditorium at Coming and George streets, include Charleston Mayor Joseph P. Riley Jr.; Charleston resident and commercial property owner Emerson Read; Charleston County Assessor Mike Huggins; County Council Chairman Tim Scott; and College of Charleston economics professor Andy Felts.
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