Town Council Supports Tax Credit Plan

Town Council approved four to one a resolution authorizing signature of an MOU (Memorandum of Understanding) with the James Island Public Service District (JIPSD) that would be a first step towards reducing property taxes in the Town.   Joining me in support of tax relief were Councilmen Blank, Mullinax and Stokes.  Voting against was Councilman Milliken.

JIPSD property tax was increased by 13% last year and makes up approximately half of the total property tax burden for homeowners in the Town.   As a result, the total amount paid by homeowners in the Town on last October's property tax bill surpassed what was paid by homeowners in the City of Charleston for the first time.

The Town retained the Pope Flynn law firm to develop a proposal for tax relief.   This firm works for municipalities and special purpose districts across South Carolina.   I sent the proposal they developed to the JIPSD Commissioners last spring.  The Town would pay for a portion of JIPSD services directly in exchange for the Commission's consent to provide credits against the property taxes the JIPSD collects in the Town.  In response, I received a very nasty letter from four of the Commissioners rejecting our offer. Fortunately for the taxpayers of the Town, three of those four were defeated in last November's election.

The Pope Flynn law firm has now developed an MOU for the Town and the JIPSD to sign.  The MOU creates a nonbinding road map for negotiating a more detailed agreement that would implement the tax credit plan.  It is called the "Cost-Sharing Agreement" and would only be executed after approval of both Town Council and the Commissioners.

I hope that the James Island Public Service District Commission will also authorize signature of the MOU.  It is important to begin working on this now so that credits can appear on the County tax bills going out to property owners in the Town next October.