The Island Packet newspaper, Hilton Head Island's local, daily newspaper ran an editorial in it's Sunday, January 31 edition in which it stated that there is a big disconnect which exists between the stated mission of the state's Taxation Realignment Commission and what it is likely to accomplish.  The legislation creating the panel last year states: "The Commission's report must be a detailed, comprehensive and careful evaluation of the state's tax system structure."

The Island Packet futher stated that this is all well and good, but the law goes on to state that the commision must stay away from the resident homeowner exemption for school operating taxes under the 2006 Property Tax Reform Act.  Most of all school taxes in South Carolina are paid by non-residents and businesses, not residents.  Not often do I agree with The Island Packet editorials, but I sure agree with this one!

A bill to give the Commission more time to do its work is moving quickly through the legislature.  It would extend the deadline from March 15 to November 15 and also expand the scope of the commission's work.Some commissioners, realizing how narrow that "cpmprehensive" review really is, have asked to include the entire property tax reform law in their work but they have been told in no uncertain terms that the lawmakers would not support it according to a report in the Greeneville News. 

Much of the griping about the law goes to the inequities it creates- through the school operating tax exemption, the 15 % cap on reassessments for property that doesn't change hands and the point-of-sale provsion for property that does change hands.  A "compromise" plan worked out last week would have created even more disparities.  The plan did not address the underlying problem-similar properties paying taxes on very different values.  The differences hinge on when you bought your property and if you are a full time resident or not.

The average person cries foul when a neighbor in a house very similar to theirs pays taxes on a value much lower than theirs.  The same is true for a new business owner trying to compete with a long established business down the street.  This particular "compromise" fell apart, but rest assured, lawmakers will continue to pick at this problem, influenced by special interest groups. All the while, lawmakers will point to the Tax Realighnment Commission as evidence that they are serious about tax reform in South Carolina.  I don't think they are serious about tax reform.

Until all aspects of state tax law is on the table for the Tax Commission to review and until the politicians stop monkeying with the tax code in the meantime, we can only assume that they are not serious about true tax reform in South Carolina.  I agree that more piecemeal changes for problems created by piecemeal changes won't result in sound tax policy.   Until the property taxes in South Carolina are fair and equitable for everyone, we will have problems in South Carolina with real estate sales, jobs. creation, and business in general.  Why the politicians in this state can't figure this out is beyond my comprehension. 

Maybe we need a Tea Party to march on Columbia??

If you are concerned about this issue, email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

If you feel that your property taxes are unfair, email me and I can put you in  touch with a group who is doing something about it.