Town and JIPSD Sign MOU for Tax Credits

At the end of January, the JIPSD Commission voted 7 to 1 to approve a Memorandum of Understanding  (MOU) with the Town to work towards having the Town pay the JIPSD for a portion of the cost of providing fire protection and solid waste collection services to the residents of the Town in exchange for the JIPSD allowing the Town to provide a credit against the property taxes levied by the JIPSD in the Town's area of jurisdiction.   Town Council also voted 4 to 1 to authorize the agreement.

Representatives of the Town and the JIPSD met in late February.   The JIPSD Commission had approved joint representation of  both the Town and the JIPSD by the Pope-Flynn law firm.   The Commission Chair and Secretary and I signed a joint representation agreement.  Also at that meeting he JIPSD's acting general attorney recommended that the MOU be shortened.   That task was completed and the shortened document approved.  Commission Chair Alan Laughlin and I signed the MOU this week.

Our joint attorney approached the Charleston County Auditor in early March.   The Auditor will be responsible for modifying the tax bills going out in jurisdiction of the Town so that the credit will reduce the amount paid by Town taxpayers to the County Treasurer and so the amount paid over to the JIPSD.   The Auditor's office is working on the necessary modifications in its computer software and the County legal staff is reviewing the proposal. 

Town Council held its public hearing for the 2019-2020 budget   I asked for  $1 million for fire protection and solid waste collection services.   It passed first reading on a 4 to 1 vote.   Second and final reading will be at the Town's May meeting.   The tax credits will result in a 30% reduction in what Town homeowners pay in JIPSD property tax and an overall 15% property tax cut.

Our attorney from Pope-Flynn is developing the Cost-Sharing agreement.   Two important items to be setting is when and how the payments will be made by the Town to the JIPSD and also the amount of an "administration fee" to be paid by the Town to the JIPSD for the cost of administering the agreement.   The Cost Sharing Agreement will return to the JIPSD Commission and Town Council for approval.  We are still on schedule for tax credits to appear on the property tax bills going out in October.