Should SC’s oldest, poorest residents pay property taxes? SC lawmaker says no
A South Carolina legislator wants to give property tax breaks to many of the state’s oldest and most financially vulnerable residents.
State Rep. Shedron Williams, D-Hampton, filed a bill — H. 4818 — in the S.C. House this month that would exempt certain residents over the age of 70 from paying taxes on the property that they live in.
Williams said he championed the bill to help senior residents who live on fixed incomes.
“Particularly in my district, we have some of the highest taxed counties, and people are losing properties,” Williams said. “We should be able to provide ... a safe living environment and not have to worry about, ‘Am I going to lose my house for a couple hundred dollars?’”
Of the roughly 20,000 people who live in Hampton County, about a quarter of those residents live in poverty, according to the U.S. Census Bureau. The poverty rate across the state, however, is closer to 15%. Statewide, about 18% of South Carolinians are older than 65, according to Census data.
That number stands to grow as the Palmetto State’s population continues to age, according to estimates.
Williams told The State he has heard from many of his elderly constituents struggling to pay their property taxes, especially those who are recipients of federal programs, for example food stamps. Williams said he has even stepped in to help those residents pay off the little they owed on their property taxes.
Property taxes vary from county to county.
The legislation would only provide tax breaks to those who can demonstrate a real financial need for it, Williams said. Elderly residents with a decent nest egg or multiple properties would not be eligible. The bill does not indicate what that exact threshold would be.
“I think we could do things differently, and I really wish that the government would take another approach,” Williams said.
The bill comes amid a debate in both State House chambers about how to overhaul the state’s tax code, which could make it harder for Williams’ bill to get time on the House floor as lawmakers might be hard pressed to take on individual bills rather than a larger reform package.
Williams said he reached out to his House colleagues for support on the bill. So far, the bill lists Williams as the only sponsor.
South Carolina already offers some tax breaks for elderly residents.
Under state Homestead Act exemptions, some residents older than 65 do not have to pay taxes on the first $50,000 market value of their homes. That exemption also applies to people who are permanently disabled and legally blind, according to the S.C. Department of Revenue.
The state reimburses counties who lose money due to the exemption, and as long as the state follows that promise, the S.C. Association of Counties would not block the proposed property tax bill, said association deputy general counsel Joshua Rhodes.
The reimbursement has “traditionally worked very well,” Rhodes said, adding that he hasn’t heard many complaints from county officials about the program. “We wouldn’t have a problem with that at all,” Rhodes added.
Without that reimbursement, it could spell trouble, said Hampton County Administrator Rose Dobson-Elliott.
“The state creates tax exemptions and then limits how we can create tax revenue,” Dobson-Elliott said.
This story was originally published December 23, 2019 at 12:22 PM with the headline "Should SC’s oldest, poorest residents pay property taxes? SC lawmaker says no."
