Can We Have a Property Tax Reduction in 2016?

I have written the James Island Public Service District Commissioners asking that they reduce the property tax they collect in the jurisdiction of the Town for 2016 and instead receive payment for solid waste services from the Town by contract during the 2016-17 fiscal year.

I have suggested that the JIPSD follow the practice of many other local governments and itemize their operating millage, with a separate millage for fire protection and solid waste collection.    The County Auditor would easily be able to stop collecting the JIPSD millage for solid waste collection in the jurisdiction of the Town, resulting in a substantial tax cut for residents of the Town.    With this proposal, those living in the Town would still pay the JIPSD millage for fire protection, and those in the unincorporated area of the JIPSD would pay both the fire protection and solid waste collection millage.

The Town would continue to collect its own millage and also continue to provide a property tax credit.  The LOST statute requires that the Town provide a credit against its own property tax, reducing the amount that must be paid to the Town.   I am proposing again that the amount of the tax credit be sufficient to zero out the Town property tax bill for each and every Town taxpayer.

I am not sure that there is a majority on Town Council  who would support this proposal at this time.   But if there is a majority of JIPSD Commissioners willing to cooperate on providing a tax reduction, I will work to find a majority of Council who will support it as well.   Last year, the Town's property tax revenue was earmarked for lease purchase payments for real estate and for a reserve.   This would need to change to allow our property tax revenue to also be used for solid waste collection.

If there is no majority of JIPSD Commissioners and Town Council willing to move forward on this proposal this year, then I will ask Council to again earmark the Town's property tax revenue for lease purchase payments for real estate and reserve.   This will allow the Town to make further progress in paying off the new Town Hall.   Funds in the reserve will be available to make capital improvements such as drainage and sidewalks in future years.

If the Town, working with the JIPSD, can provide a property tax reduction this year, then we will gradually pay off the new Town Hall over the next 15 years.   And we will still have the other sources of funds we have been using for capital improvement projects.

At the Town's budget workshop in 2015, I asked each member of Council if they favored writing checks to property taxpayers in the Town.   Each member of Council said no.  I agreed and still agree.   Tax credits should reduce the amount of property tax paid on the tax bill.   Having the Town send out refund checks is an administrative nightmare.   No municipality in South Carolina follows that policy.

While I was willing to be patient and wait for an agreement with the JIPSD, a majority of Council (three members)  said that we had waited long enough to provide a credit on the tax bill and should begin spending the money we have received.   As a compromise, some agreed that if and when the JIPSD comes to an agreement with the Town, we can again consider a tax reduction.   That is the policy the Town is currently following.

Each year, I have worked to lower property taxes in the Town in cooperation with the JIPSD.   I didn't want to let this year pass without again making an effort.    Unfortunately, the JIPSD Commissioners are the same ones who rejected the Town's proposal last year.  Still, I hope that some or all of them have had a change of heart.  Regardless, it is my sincere hope that after the JIPSD election next November, there will be a majority of Commissioners willing to work with the Town to reduce property taxes in 2017.