Issues with Act 388 not the real problem

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Issues with Act 388 not the real problem

IslandPacket
info@islandpacket.com
Published Tuesday, January 1, 2013   |  251 Words  |  

Charlie Reed's op-ed piece on Dec. 21 is understandable from a Realtor's point of view, but dead wrong on any other. Repealing Act 388 is simply not going to happen.

First, property taxes of owner-occupied homes in 2007 went down nearly 40 percent, not the 25 percent stated. A little arithmetic will tell you that if you discount a dollar by 40 cents, you have to increase the 60 cents left by 66.7 percent to get back to the original dollar. That will not sit well with the many resident homeowners paying the 4 percent property tax rate. No legislator who wishes to get re-elected would vote to repeal Act 388.

Charlie also forgets to mention that everyone who buys anything, except groceries, now pays 1 percent more in sales tax, which does, in fact, make up the difference. And remember, property taxes did not go up on the homeowners paying the 6 percent rate in 2007; they simply went down on the 4 percent group.

Several remedies are being discussed in Columbia that can fix this problem.

If Charlie wants a real problem to solve, he should work on the wind and hail premiums we now pay, which are extremely high for the risks involved.

Most of us pay more for wind and hail insurance than our property taxes, home and flood insurance combined. That is a real disincentive to move here and hurts the real estate market far more than property taxes.

Tom Hatfield

Hilton Head Island