Although I have supported every effort to slash your property taxes, they have all failed. Once again proponents of reform have lost yet another battle in the “deliberative” body of the SC General Assembly. We now have a last gasp on property tax reform. This allows for a local option to remove operating expenses from your property tax bill by local government. The author, Sen. Chip Campsen (R-Charleston) has voted in favor of all of the meaningful reform proposals.
Local Option Property Tax Relief Act
Part 1 – School Operations Relief for Primary Residences, Business Personal and Other Personal Property
-Permits a county-by-county referendum on property tax relief for school operations on primary residences, business personal and other personal property.
-Counties could opt-in to just enough county-wide increase in the sales tax to provide this relief for primary residences, business personal and other personal property (see attached sheet for how much sales tax would be required in each county)
-Either County Council or 7% of electorate by petition initiative can put the Local Option Property Tax Relief measure on the November ballot
-Would eliminate approximately 50% of total property taxes on primary residences business personal and other personal property (statewide average is 49.3% – each county will vary)
-Sales tax revenue considered a part of local maintenance of effort
Part 2 – Statewide Tax Relief from a ¼ Cent Increase to the Statewide Sales Tax
-Circuit Breaker Income Tax Credit when property tax on primary residence exceeds 5% of income – 100% refundable tax credit for households at or below the median household income in SC & 50% refundable tax credit for households above the median household income
-Income Tax Credit equal to 4% of total property tax paid on commercial/rental property
-Does not affect school funding formulas
Part 3 – Other Provisions
-Quarterly property tax payment
-New property on tax roles sooner
-Local millage cap to protect business
-Rolling reserve fund in school districts to cushion volatility in sales tax revenue
-BEA balanced
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