Dorchester County gives estimates on tax increase

SUMMERVILLE — Business owners and landlords will see a 5.4 percent jump in their tax bills this fall because of the Dorchester District 2 school budget increase that County Council approved last week.

County administrator Jason Ward calculated two examples Monday to show what the tax increase means.

--The owner of a $250,000 commercial property (at a 10.5 percent tax rate) will pay an extra $223.13.

--A landlord renting out a $250,000 house (6 percent tax rate) will pay an extra $127.50.

Council approved the commercial tax increase to give the schools an extra $1.8 million. But most business owners still don't know what the tax increase means yet.

"I've been getting calls from business owners but have not been able to tell them," Council Chairman Larry Hargett said Monday.

The budget leaves the school district $1 million short of what officials were asking for. The district will probably borrow the money from its reserve fund to make up the difference, Superintendent Joe Pye told the school board Monday night. That makes him uncomfortable, he said, because it would take the balance down to about 8 percent of the annual budget, or one month's operating expenses.

"We're not going to cut any programs," Pye said. "We're not going to abandon our kids."

The tax increase might indicate it's time for the state Legislature to re-evaluate how schools are funded under the state law that was passed last year, according to Sean Bennett, vice chairman for public policy for the Greater Summerville Dorchester County Chamber of Commerce. Now officials are forced to look to businesses instead of residential property owners for school money, he said.

How much a 5.4 percent tax increase hurts a business depends on the profit margins, but most businesses will pass on the increase to the consumer, Bennett said. For instance, the landlord whose tax bill goes up $120 a year might raise the rent $10 a month.

"Ultimately, it always comes back to the consumer," Bennett said.

Reach Dave Munday at 745-5862 or dmunday@postandcourier.com.

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