2006-02-02
A MESSAGE TO TAXPAYERS
From: Gary Kubic,
Beaufort County Administrator
Dec., 2004
RE: THERE IS NO WINDFALL
Most property owners who paid an increase in taxes also believe that the county receives a tremendous windfall gain. Most property owners feel that the county gets rich because of their higher tax. This belief is simply a myth. It is not true. State law specifically prohibits counties from getting any windfall – It is called a ROLLBACK.
In order to prevent the county from receiving a windfall the millage rate is “rolled back” according to a specific formula prescribed by state law. But, some property values increase so much that the rollback is not enough to reduce taxes. Keep in mind, though, the rollback in millage was applied to all personal property, which means taxes for autos, boats, business equipment, etc., were reduced.
Many properties show an increase in value in a year of reassessment, but each tax bill is different and there is no simple explanation as to why individual tax bills went up or down. Essentially, the increase or decrease in the market value of your property is the basis for the increase or decrease in your tax. A simple rule of thumb for those with higher tax bills is this -- say you sold your property, would you want one-cent less than the assessment price the county has placed on your property?
The following frequently asked questions may help taxpayers better understand the issue:
1. Why did my taxes go up?
In a year of reassessment, some properties increase in value and that causes taxes to rise. But, on the other hand, some property owners saw a decrease.
Owners of about 25,000 parcels, one-fourth of all properties in Beaufort
County experienced a drop in their taxes.
2. OK, my taxes went up, but why did they go up so much?
State law requires counties to conduct a reassessment every five years and since the last reassessment took place, many property values in Beaufort County have increased considerably.
3. How are property values determined?
Property values are driven by the market place. The sale prices of similar homes in your neighborhood are used to compute the value of your home. This method is the same used by fee appraisers for mortgage purposes.
4. Doesn’t a rollback mean my tax bill should be “rolled back” to what I paid last year?
No. Rollbacks are regulated by the state. A specific formula must be used to determine the amount of rollback. The impact of the rollback in real property varies from property to property, just as the reassessment increases vary from property to property. The rollback is also applied to all personal property, including cars, boats, personal business equipment, etc. Personal property taxes were reduced for everyone in Beaufort County this year.
5. If the rollback does not lower my taxes to last year’s rate, doesn’t that mean BeaufortCounty will benefit financially from my tax increase?
No, absolutely not. State law does not permit it.
6. How much more money do you expect to bring in from taxes this year compared to last year and how can you justify it?
We anticipate $44,995,000 to cover our operating budget. Last year we generated $41,670,000 in taxes. The increase is from the rise in property values and new growth. A state-regulated increase of 2 .3 % is also factored in for inflation. The increase will be used to pay for services demanded by new growth and will cover higher costs due to inflation for materials, maintenance and repairs.
7. I have appealed the amount of my reassessment and it has not yet been settled. What should I do about my tax bill?
You may pay 80% of your bill until your appeal has been settled. Be sure to submit the appropriate form to the assessor’s office. You may call the office at 470-2850 to request the form. You may also send it via the county website, www.bcgov.net. It can be found under the heading of “appeal notice” or “reassessment gram” located in the box of reassessment information on the home page.
8. I requested an appeal of my reassessment and was told I would receive a post card to schedule my appeal, but I haven’t received it. What should I do?
The assessor’s office is still replying to requests for appeals. Staff members are dividing their time between government offices north and south of the Broad River in an effort to better accommodate citizens, so the process is slow, but sure. If your appeal is unresolved, you have the option of paying 80% of your bill as described above.
9. Who gets my tax dollars?
Fifty-four percent of our taxes go toward schools. Twenty-six percent is used for such services as EMS, law enforcement, drainage, land management and planning, boat ramps, programs for the elderly and disabled, roads, parks, recreation, hurricane evacuations, mosquito control, solid waste and recycling, courts, the jail and more. More than 10% go to municipalities. Fire districts and public service districts get about 7 %. Continuing education and indigent care use 3 %. Services to citizens are vital to our quality of life. They cost money. There is no windfall.
For more information regarding county programs and services visit our website at www.bcgov.net . You may send a “Citizengram” via the website with your questions or comments. Taxpayers are also welcome to call our assessor’s office with any questions regarding their reassessment at 470-2850.