Tax Credit Progress

The Pope-Flynn law firm is now working for both the Town of James Island and the James Island Public Service District (JIPSD) on a cost sharing plan. This would allow the Town to pay the JIPSD for services on behalf of its residents and the JIPSD would allow the Town to put a credit against the JIPSD line on the County property tax bill for all taxpayers in the Town.

Our attorney has begun discussions with the Charleston County Auditor. The Auditor was very open to the proposal and believes that credits can appear on October's bill. The Auditor is asking for a review by Charleston County's legal department. In the past, the County's legal department had no objection to placing credits on the bill if they are agreed to by the Town and the JIPSD. The County legal review is continuing.

The Town's draft budget includes $1 million for payment to the JIPSD for fire protection and solid waste collection services. It will be presented to Council tomorrow night. First reading will be in April and second and final reading in May.

If approved by Town Council, this would result in a 30% decrease in the property tax Town homeowners pay to the JIPSD. Compared to the amount paid in 2017, before the JIPSD's 13% property tax increase, the reduction is 21%.

Property taxes that Town homeowners pay to the JIPSD will be 31% lower than what is paid by homeowners in the City of Charleston. (This year homeowners in the Town paid 3% more than homeowners in the City.)

While substantially lower than in the City of Charleston, the property tax burden will be comparable to that in the City of Folly Beach or the Town of Mount Pleasant.

Why is this happening now? Because the JIPSD Commissioners elected in November are willing to cooperate with the Town.

Because property taxes paid to the JIPSD are approximately 50% of the total property tax paid by a Town homeowner, the reduction in the overall property tax will be closer to 15%. The Town will continue to provide a 100% credit against its millage resulting in no net property tax paid to the Town.

The average value of a home in the Town is $280,000. The property tax paid to the JIPSD will be reduced from $721 to $503 for a saving of $218.

While the JIPSD will receive less property tax from the taxpayers in the Town, the payment by the Town to the JIPSD will result in the JIPSD receiving the same total revenue. This proposal will in no way result in reduced services for anyone and it will not result in higher taxes for those in the unincorporated area of the JIPSD.

After discussion between the attorney from Pope/Flynn and the JIPSD's acting General Attorney Michael Timbes, the MOU between the Town and the JIPSD is being abbreviated. I hope that it can be signed soon.

The Town and the JIPSD, working with our joint attorney, must still work out some of the details about the agreement. Still, I am very optimistic that tax relief will come to the homeowners of the Town. There will be tax savings on cars, businesses, boats and all other taxable property.