Property Tax Cut

The Town is working to lower the property taxes of our homeowners by approximately 10%.

To accomplish this, we are proposing that the Town collect the operating property tax in the Town's tax district in place of the James Island Public Service District.    The District currently collects an operating property tax of 51 mills and receives approximately $2.7 million each year from property owners in the Town.

To cut taxes 10%, the Town would need to pass a 51 mill property tax next budget year.   The Charleston County Auditor would include this millage on each property tax bill.   The Town would be obligated to use 71% of the Local Option Sales Tax we receive to provide a property tax credit.    We have $720,000 budgeted for the property tax credit next year.   This would be a 26 percent credit against the Town's proposed millage and the Charleston County Auditor would put the tax credit on each property tax bill.  The amount each homeowner pays the County Treasurer each year, or else, the amount of the escrow payment included with monthly mortgage payments, would be reduced.  The net effect would be a 10% tax cut for homeowners in the Town.   There would also be a property tax reduction for cars and boats, as well as business and rental property.

Of course, the Town can only do this if the James Island P.S.D. tells the Charleston County Auditor to stop collecting the District's 51 mill operating levy.    Don't worry.   I would never ask the Auditor to place the Town's millage on your tax bill in addition to the District's millage.  I recently met with the County Auditor and he has assured me that if there is an agreement between the Town and the District, the bills can be adjusted to replace the District's operating millage with a Town millage.   Further, there is a section of state law prohibiting a Town and District from charging twice for the same services.

Speaking of services, how will the Town pay the James Island Public Service District for the fire protection and solid waste collection services they fund with the operating property tax millage?    The Town will directly pay the District for the services provided to residents of the Town.   The County Treasurer will pay the property tax monies received from the Town's district to the Town.   The Town will take that money, plus the Local Option Sales Tax monies we are already receiving from the State Treasurer, and pay it over to the District in exchange for services for the Town's residents.   How much will the Town pay the District?    The same $2.7 million that the District is currently collecting from the Town's taxpayers.

A resolution is coming before Town Council at our next meeting, directing me, as Mayor, to negotiate an intergovernmental agreement between the Town and the District with the goal of providing each homeowner a 10% property tax cut.    We will insist that the Town remain in the District and that the voters of the Town continue to be eligible to serve as District Commissioner and vote in elections for District Commissioner.   We are proposing no change in the services provided to the residents of the Town.   Further, we are proposing no change in billing for waste water collection or the property tax millage for James Island Public Service District Bonds.   Any draft agreement will come back to Council for review and approval.

I expect to open negotiations with the District Commissioners shortly after the November 21 Town Council meeting.    If all goes well, you can expect a 10% reduction when the next property tax bills come out in the fall of 2014.