Property tax relief could start soon for Myrtle Beach residents
September 28, 2009 by admin
Myrtle Beach leaders say they want to give property owners the tax credit they promised a year earlier than planned.
Councilman Phil Render wants the city to approve a resolution asking the General Assembly to amend the law it passed this spring that allows the city to collect a 1 percent sales tax and give that money to an authorized group to promote the Grand Strand to potential out-of-area visitors.
The state law says that after the second year of the 10-year tax, the city will retain 20 percent of the money and give property owners a tax credit.
“The chamber needs a recurring revenue stream, but people need help, too,” Render said. “We’re in tough times.”
Render’s proposal would shave about $1,000 off his own property tax bill this year.
Sen. Luke Rankin, R-Myrtle Beach, was the lawmaker who included the property-tax clause in the bill in the first place, and he said he likes this idea.
“The delegation would have to agree to it, but I’m more than willing to talk about it,” Rankin said. “I’m certainly not opposed.”
Rep. Alan Clemmons, R-Myrtle Beach, said Myrtle Beach’s legislative delegation would be open to talking about the idea and evaluating the likelihood of its success in the General Assembly.
“No one has approached me with it yet, so this is just a first impression,” Clemmons said, “but we are a tax-relief-loving people.”
The city has already chosen to give property owners about a 90 percent break on the millage they pay inside the city. Of the 64.4 mills the city charges in property tax, the council elected to give property owners a credit for 57.1 mills, or all the tax the city uses for city operations. Property owners will still pay the remaining 7.3 mills that’s dedicated to debt repayments for city projects.
Render said the tax break could also prop up the sagging residential real estate market.
“Who wouldn’t want to move to a place where you only pay $69 in city property taxes on a $300,000 house?” said Councilman Wayne Gray, who supports the idea and said he thinks the General Assembly will, too.
He said the only discussion will likely be that those who promoted the tax to the General Assembly presented an urgent need for the money and the economy is still rocky.
The city said things were so dire when discussing the tax that it chose not to put the sales tax to a voter referendum this fall, but to approve the tax increase this spring - raising the ire of many in the area.
“We’ve already seen meaningful results [from the chamber]. We have a level of funding that will work and allow us to give people a tax break and add tourism-related infrastructure,” Gray said.
Render said fiscally, there’s no reason not to start the tax credit early.
But Rep. Thad Viers, R-Myrtle Beach, said he would want to see and consider the numbers along with finding out how the chamber would be able to absorb the loss, but he supports the idea in concept.
“I support any kind of tax relief to homeowners and property owners,” Viers said. “I will definitely look into it, and I’d love to get everyone around the table to talk about it.”
Viers said new legislation won’t get a first reading until January, anyway, but it could be pre-filed.
Chamber President and Chief Executive Brad Dean said his group hasn’t reviewed the idea with its legislative policy council yet, but “because the tourism fee mandates the largest municipal tax cut in state history, I expect his idea will attract a lot of attention and merit consideration. When debated in the General Assembly, the tourism fee was viewed as a tool to boost the economy and create jobs, but now that City Council has turned it into a tool to eliminate property taxes, I expect this proposal will get a serious look.”
Councilman Mike Chestnut said he didn’t see why the legislature wouldn’t support the idea “unless there’s something we’re missing. But we’re committed to it and want to move forward and give people tax relief as soon as we can.”
