Tax Modernization Committee — Columbia, SC
Date: 2022-05-03
Time: 10:00

COLUMBIA TAX MODERNIZATION COMMITTEE MEETING AGENDA
 TUESDAY, MAY 3, 2022


The Columbia Tax Modernization Committee will conduct a meeting on Tuesday, May 3, 2022
at 10:00 a.m. in Council Chambers at City Hall, 1737 Main Street, Columbia, SC 29201.
Members of the public may view the meeting online at www.columbiasc.gov or participate via
telephone by dialing 855-925-2801. When prompted, enter meeting code: 4757. During the
meeting: press *1 to listen; *2 to leave a message; or *3 to request to speak. For additional
information, visit www.columbiacitysc.iqm2.com, call (803)545-3045, or email
cityclerk@columbiasc.gov.

 The Honorable Daniel J. Rickenmann, Mayor
 The Honorable Joe E. Taylor, Jr., Chair  The Honorable Edward H. McDowell, Jr.

Prior to entering the meeting please turn all electronic communication devices to the silent, vibrate or off
 position. All presenters are asked to speak directly into the microphone for recording purposes.

CALL TO ORDER
COMMITTEE DISCUSSION

1. Impacts on Richland County and Richland County School Districts 1 and 2 - Ms.
 Rebecca Gunnlaugsson, Ph.D., President of Acuitas Economics

2. Additional Data and Trends - Ms. Rebecca Gunnlaugsson, Ph.D., President of Acuitas
 Economics

3. Date, time, and discussion of next committee meeting - The Honorable Joe E. Taylor, Jr.,
 Chairman

PUBLIC INPUT
ADJOURNMENT




 Page 1 of 1

COLUMBIA TAX MODERNIZATION COMMITTEE MEETING AGENDA
 TUESDAY, MAY 3, 2022


The Columbia Tax Modernization Committee will conduct a meeting on Tuesday, May 3, 2022
at 10:00 a.m. in Council Chambers at City Hall, 1737 Main Street, Columbia, SC 29201.
Members of the public may view the meeting online at www.columbiasc.gov or participate via
telephone by dialing 855-925-2801. When prompted, enter meeting code: 4757. During the
meeting: press *1 to listen; *2 to leave a message; or *3 to request to speak. For additional
information, visit www.columbiacitysc.iqm2.com, call (803)545-3045, or email
cityclerk@columbiasc.gov.

 The Honorable Daniel J. Rickenmann, Mayor
 The Honorable Joe E. Taylor, Jr., Chair  The Honorable Edward H. McDowell, Jr.

Prior to entering the meeting please turn all electronic communication devices to the silent, vibrate or off
 position. All presenters are asked to speak directly into the microphone for recording purposes.

CALL TO ORDER
COMMITTEE DISCUSSION

1. Impacts on Richland County and Richland County School Districts 1 and 2 - Ms.
 Rebecca Gunnlaugsson, Ph.D., President of Acuitas Economics

2. Additional Data and Trends - Ms. Rebecca Gunnlaugsson, Ph.D., President of Acuitas
 Economics

3. Date, time, and discussion of next committee meeting - The Honorable Joe E. Taylor, Jr.,
 Chairman

PUBLIC INPUT
ADJOURNMENT




 Page 1 of 1
 1




MEETING DATE: May 3, 2022

DEPARTMENT: City Clerk

FROM: Erika Hammond, City Clerk

SUBJECT: Impacts on Richland County and Richland County School
 Districts 1 and 2 - Ms. Rebecca Gunnlaugsson, Ph.D.,
 President of Acuitas Economics
FUNDING SOURCE &
ORIGINAL BUDGET:


ATTACHMENTS:
  Tax Plan-2022-0503 Gunnlaugsson (PDF)




Updated: 4/28/2022 2:49 PM Page 1
 Packet Pg. 2
 COLUMBIA
 COMPETITIVE
 PROPERTY TAX
 PLAN




 1.a
Packet Pg. 3

 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 1.a




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 COMMERCIAL/RENTAL
 TOP PICTURE
 COMPETITIVE TAX PLAN


 1 2 3
 TARGET DEVELOP CALCULATE
 COMMERCIAL/RENTAL LEGISLATION PHASE-IN FORMULA
 Offer a credit to “all other real Draft legislation at: Property tax rate reduction plan
 property” that would have the State level to enable counties for Columbia/Richland County
 effect of reducing the the opportunity to implement a would be based on the template
 assessment rate from 6% to 4%. rate credit for “all other real outlined by Dr. Stephen Walters,
 Model after Act 40 of 2017, property,” and to be phased in over 10 years.
 which did the same for County level to opt into the
 manufacturing property state-legislated rate exemption
 statewide. opportunity.
Slide / 2
 Packet Pg. 4
 1.a



COMMERCIAL/RENTAL




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
COMPETITIVE TAX PLAN

 Announce an 8-year Build escrow account Use escrowed funds Enact “triggers” that
 1 schedule of 2 from new investment 3 and growth in other 4 adjust the tax rate
 incremental tax rate (and by slowing revenues to satisfy reductions faster/
 reductions to begin in spending) during first spending while new slower, based on
 two years. two years. investment grows, availability of new
 and tax reductions revenues each year.
 are phased in.




Slide / 3 www.yourwebsite.com
 Packet Pg. 5
 1.a




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 $9,000
 $8,869 $8,869

 RENTAL $8,000


 PROPERTY $7,000
 $7,288 $7,288



 TAX $6,000



 DISPARITY $5,000



 $4,000

 Rental properties, pay 3.9
  times more property tax than $3,000

 owner-occupied properties. $2,273
 $2,000
 $1,873 $1,818
 $1,498
 Residents aged 65 or older
  do not receive the state’s $1,000

 Homestead reduction if
 they rent. $0

 Richland School District 1 Richland School District 2
 Owner-Occupied 65+ Owner-Occupied Rental 65+ Rental
Slide / 01
 Packet Pg. 6
 1.a




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 RENTER-
 Rock Hill 48.2%
 OCCUPIED
 HOUSING Lexington 33.9%
 RATE
 Greenville 56.9%

 Columbia 53.0%

 Charleston 44.6%
 0% 10% 20% 30% 40% 50% 60%



Slide / 5 Source: U.S. Census Bureau, 2016-2020 American Community Survey 5-Year Estimates.
 Packet Pg. 7
 1.a

 POPULATION
 GROWTH TRENDS




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and




Slide / 6 US Census Population Estimates, 2000 – 2021 (through 2020 for cities and towns).
 “Revenue Per Pupil Report by School District for 2021-22 Excluding Bond Revenue.” South Carolina Revenue and Fiscal Affairs Office (RFA). Revised Packet
 11/15/21.Pg. 8
 1.a

 OWNER-OCCUPIED
 PROPERTY GROWTH




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and




Slide / 7 “School District Detailed Index of Taxpaying Ability” dataset, Tax Years 2010 - 2020. South Carolina Department of Revenue.
 Packet Pg. 9
 1.a

 COMMERCIAL/RENTAL
 PROPERTY GROWTH




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and




Slide / 8 “School District Detailed Index of Taxpaying Ability” dataset, Tax Years 2010 - 2020. South Carolina Department of Revenue.
 Packet Pg. 10
 1.a

 CITY OF COLUMBIA
 REVENUES




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and




Slide / 9 Comprehensive Annual Financial Report, FY 2021, City of Columbia.
 Packet Pg. 11
 1.a

 RICHLAND COUNTY
 REVENUES




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and




Slide / 10 Comprehensive Annual Financial Report, FY 2021, Richland County.
 *Includes Intergovernmental not restricted to specific program; Sale of capital assets; Investment income; Miscellaneous;Packet
 TransfersPg. 12
 1.a

 RICHLAND DISTRICT 1
 REVENUES




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and




Slide / 11 Comprehensive Annual Financial Report, FY 2021, Richland School District 1.
 Packet Pg. 13
 1.a

 RICHLAND DISTRICT 2
 REVENUES




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and




Slide / 12 Comprehensive Annual Financial Report, FY 2021, Richland School District 2.
 Packet Pg. 14
 1.a




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 SOURCES
 TEAM
 “Revenue Per Pupil Report by School District for 2021-22 Excluding Bond Revenue.” South Carolina Revenue and Fiscal Affairs Office (RFA). Revised
 11/15/21.

 “School District Detailed Index of Taxpaying Ability” dataset, Tax Years 2010 - 2020. South Carolina Department of Revenue.

 Comprehensive Annual Financial Reports, FY 2021 (FY 2020 where 2021 not available). Cities of Greenville, Charleston, Rock Hill, and Columbia; Town of
 Lexington; Counties of Greenville, Charleston, York, Lexington, and Richland; School Districts of Richland 1 and Richland 2.

 Richland County Assessor Property Tax Dataset, Tax Year 2021.

 US Census Population Estimates, 2000 – 2021 (through 2020 for cities and towns).

 “Membership Report 135 Day, School Year 2020-21.” South Carolina Department of Education - Office of Finance.

 SC Constitution Article X, §1(5) (https://www.scstatehouse.gov/scconstitution/A10.pdf)

 SC Act 40 of 2017 (https://www.scstatehouse.gov/sess122_2017-2018/bills/3516.htm).

 Source: U.S. Census Bureau, 2016-2020 American Community Survey 5-Year Estimates.




Slide / 13
 Packet Pg. 15
 APPENDIX

 SUPPLEMENTAL

 MATERIAL




Packet Pg. 16 1.a
 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 Slide / 15




 SOUTH CAROLINA




 PROPERTY TAX FORMULA




www.yourwebsite.com



 Packet Pg. 17 1.a
 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 Slide / 16




 EXAMPLE




 PROPERTY TAX CALCULATION




Packet Pg. 18 1.a
 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 1.a




 1 2




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 KEY Commercial, rental, and
 second home properties
 “All other real properties”
 have an assessment rate
 POINTS are all classified as “all
 other real property” under
 of 6%, 1.5 times higher
 than owner-occupied
 South Carolina law. properties.




 3 4
 Owner-occupied SC has one of the lowest
 properties are further tax rates for owner-
 exempted from school occupied properties in the
 operations millage rates. US, yet one of the highest
 for commercial and rental
Slide / 17
 properties.
 www.yourwebsite.com
 Packet Pg. 19
 1.a




 Attachment: Tax Plan-2022-0503 Gunnlaugsson (7507 : Impacts on Richland County and
 PEER CITIES CHARLESTON GREENVILLE LEXINGTON



 Commercial/rental
 $3,810 $5,339 $8,125
 property tax rates
 are more severe in
 Richland County
 than peer locations,
 not due to Act 388,
 but due to high WEST COLUMBIA ROCK HILL COLUMBIA
 combined city,
 county and school $6,186 $5,859 $7,288 RSD1
 millage rates.
 $8,886 RSD2

Slide / 18
 Packet Pg. 20
 2




MEETING DATE: May 3, 2022

DEPARTMENT: City Clerk

FROM: Erika Hammond, City Clerk

SUBJECT: Additional Data and Trends - Ms. Rebecca Gunnlaugsson,
 Ph.D., President of Acuitas Economics
FUNDING SOURCE &
ORIGINAL BUDGET:




Updated: 4/28/2022 2:49 PM Page 1
 Packet Pg. 21
 3




MEETING DATE: May 3, 2022

DEPARTMENT: City Clerk

FROM: Erika Hammond, City Clerk

SUBJECT: Date, time, and discussion of next committee meeting - The
 Honorable Joe E. Taylor, Jr., Chairman
FUNDING SOURCE &
ORIGINAL BUDGET:




Updated: 4/27/2022 12:40 PM Page 1
 Packet Pg. 22