George's Information and Comments

Growth Impact Action Committee

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South Carolina House Bill H3736 to Allow Impact Fees to be Imposed for Required New Public School Construction

                               -- George Edwards/Bob Logan

10/4 updates are in blue text.

Bob Logan recently (February 7) passed on an interesting discovery: "Dorchester County has an Impact Fee in use now that they are dissatisfied with because it does not allow any use for schools K-12. Their State Rep. Limehouse and Rep. Hagood have a proposed amendment before the Ways And Means Committee in
Columbia, H3736."

The operational text of the bill -- proposes adding the following text to the S. C. Impact Fee Statute as to the named public facilities for which impact fees may be imposed.

"(i)    public education facilities for grades K-12 including, but not limited to, schools, offices, classrooms, parking areas, playgrounds, libraries, cafeterias, gymnasiums, health and music rooms, computer and science laboratories, and other facilities considered necessary to the proper public education of the state's children."

Passing this bill to allow the imposition of impact fees on new school construction is something that every homeowner and their elected representatives should support -- Horry County Democrats and Republicans alike, as well as anyone who is paying attention in any other South Carolina county.

Unfortunately, although the bill was introduced and referred to the Ways and Means Committee on 3/5/03 according to a later e-mail from Mr. Logan: "It is my understanding that the proposed Legislation in the Way and Means Committee on Impact Fee use for schools etc. is dead since it failed to move out of that Committee on time. It must be resubmitted....Let's hope the Horry County proposal coming up in the November election passes and is then moved to Ways and Means by our Horry Delegation back to Columbia for consideration and approval...

The voters need to ask our Delegation, up for election or reelection just where they stand on this important issue"

Those that fear an adverse effect on population growth should consider that the only alternative to transferring some taxes by impact fees to those who require new school facilities from current homeowners is to raise everybody's annual taxes (at this writing [10/04/04] I am awaiting official information on the number of Horry County housing units currently taxed, but, based on an an unofficial estimate, the new housing units approved by the Horry County council in the first nine months of 2004 alone [reportedly 7,514] will increase the average taxes per Horry County home by $450 [although these taxes will be spread between homeowner and business taxpayers])] or reduce services. These eventualities will not attract newcomers and are unfair to those of us who currently only have to pay taxes for the maintenance of existing school facilities.  Without this amendment to current state law, we get no relief from having to pay for brand new school facilities that we would otherwise not need but that are required by newcomers. 

I have heard, but do not independently know, two things that may stand in the way of this legislation:
1. The state is supposed to pay for new school construction.
2. A county can not collect impact fees for a school district that is an independent taxing district.

As to the first, the state is apparently unable to meet this obligation to Horry County; increases in our property taxes will be required to meet Horry County's projected $250 million (at the time this was originally written) need for new or expanded school facilities in the next five years.

As to the second, if true, I see no compelling reason to maintain the Horry County school district as an independent taxing district.
 

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