SC realtors and the South Carolina Chamber of Commerce (SC Chamber) revealed an unprecedented analysis of the South Carolina property tax system in a study completed by the Lincoln Institute of Land Policy (Lincoln Institute).
The purpose of the analysis is to initiate conversations with stakeholders and policy makers and develop proposals that will ultimately change the state’s property tax system for the better. The report describes South Carolina’s property tax system as complex, unfair and uncompetitive.
“It is critical for our state to consistently review and restructure our tax system to provide better opportunities for our citizens,” said Nick Kremydas, attorney and CEO at SC Realtors. “This study gives an important idea of how we can develop a property tax structure that offers a more than minimally adequate opportunity for all South Carolinaians.”
“While we know that South Carolina’s property tax system is costly for many homeowners, this study delves into a diverse group of counties to understand how flawed it is and gives reform options,” said Swati Patel, Acting CEO of Câmara SC. “The conclusion that our tax structure is not competitive, uneven and complex increases the need for critical reforms to improve the business climate in South Carolina.”
As part of its analysis, the report explores South Carolina’s Law 388 and how it has affected the property tax system since it was first enacted in 2006. The law shifted the burden of property tax from owners to companies and tenants. This widened the disparity in property tax rates, making South Carolina’s extreme property tax system an anomaly compared to the rest of the U.S.
“It was a great pleasure to have the opportunity to bring together a team of tax experts associated with the Lincoln Institute to review South Carolina’s unique property tax system,” said Daphne Kenyon, Fellow Resident in Tax Policy at the Lincoln Institute of Land Policy .
The report also presents three key findings within South Carolina’s property tax system.
- South Carolina’s property tax system is an exception compared to the rest of the United States.
- The disparate property tax rates in South Carolina are unfair and inefficient.
- South Carolina’s property tax system lacks transparency due to fragmented property tax administration, inconsistent language and varying land use codes.