April 26, 2008

Recent Actions of the Edisto Beach
Property Owners Association

Property Tax Relief 
The EPBOA, through the contributions and lobbying efforts of its membership, was influential in helping the statewide NoHomeTax organization to get two bills passed in 2006.  The provisions of these bills took effect in 2007.

Bill 4449 reduced property tax on owner occupied homes by removing school operating millage from your primary residence tax bill.  In most localities of the state this resulted in a 50% reduction in property tax.  This tax relief was paid for by an additional one cent of sales tax and was revenue neutral.  If excess sales tax is received over that required to reimburse school expenses it will be returned to the primary homeowner.  Second or vacation homes did not benefit from this bill.  The state sales tax on unprepared food was eliminated by this bill and by further action of the legislature in 2007.

Bill 4450 presented a constitutional amendment to the electorate in the general election of 2006 to cap property assessments increases at 15% over the 5-year reassessment cycle. The amendment passed overwhelmingly by a 70% affirmative vote and carried every county in the state.  Tax relief is popular in S.C.!  

As 2008 is a reassessment year in Colleton County, we will see assessments rise a maximum of 15% instead of the over 100% rate of increase that we saw in 2005.  As this is a constitutional amendment it is not likely to change anytime soon and certainly not without your getting a chance to vote on it.  Note that this provision applies to all properties in the state: primary residences, second homes, rental property and business property. 

Height Variance Appeal
In April 2007 the town’s Zoning Board of Appeals granted a height variance to rebuild a Driftwood Villa building to a height greater than the 40 foot height allowed by the town ordinances. The Villa had been destroyed by fire in January of 2007.  The EBPOA and the Town Council were fearful that to leave a variance to the height ordinance on the books the height ordinance would become vulnerable to future variances and, in the end, become meaningless.  Several instances exist of this scenario resulting in high rise development in South Carolina beach communities.  Cherry Grove is one example.

The Town Council and the EBPOA entered separate appeals to the variance, which stopped reconstruction.  Meanwhile, the Town, through actions of the Planning Commission, explored ways to change the height ordinances to provide a solution to this problem and future problems caused by an anticipated raising of the base flood elevations as mandated by FEMA. Anticipating a resolution of the problem via revised ordinance, the Town dropped its appeal in its August meeting leaving the EBPOA appeal still in effect.

The Planning Commission revised and submitted the revised ordinance to the Town Council in August and the Town Council passed the changed ordinance on second reading in October.  At this point, a code-compliant Driftwood Villa reconstruction became legally conforming to existing ordinances and could proceed.  As of this date, the Driftwood Villa has not submitted a set of plans in suitable form to receive a building permit.

 The EBPOA is sympathetic to the situation of the owners of the Villa and has tried to speed resolution of the situation in every way available.  But we also have the imperative of preserving the validity of the height ordinance, which we consider the most important deterrent to rampant high-rise development on Edisto Beach along with other ordinances limiting house size, and duplex and multifamily development.

The EBPOA lawyer has drafted a consent order, which will nullify the variance now that the existence of the new height ordinance renders the variance moot and allows reconstruction of the Villa in its original configuration and in conformance with the current FEMA base flood elevation.  We hope that all parties will sign the consent order and put this matter to rest.

Further Property Tax Relief  
The NoHomeTax organization is pursuing a further reduction in property tax by means of an additional one cent sales tax.  One cent would allow the removal of all property tax from owner occupied homes where the owner is over the age of 65, and enough revenue is anticipated to be left over to reduce by an estimated 28% the property tax on the remaining owner occupied homes (assessed at 4% of market value) and 6% assessment properties The 6% assessed properties are second homes, rental properties and businesses.  The bill is being written by the legislative staff at present and we should get a look at it soon.

As you calculate the value of this legislation to your personal situation, remember that sales of gasoline and groceries are not subject to sales tax, nor are services taxed.  Probably 50% of your spendable income is not subject to sales tax.  So, compute a cost of 1% of your spendable income vs. a benefit of a 28% reduction in your 4% and 6% property and see if you don’t come out ahead.  For those over 65 it is a no-brainer.

Feedback
We would welcome your reaction to these actions of the EBPOA and will solicit your support for the current tax bill when it emerges from the legal staff.

Fishing Pier The EBPOA has not taken a position on the proposed pier and this is included as information only.  The Collins Pavilion Corp. has sued the town over its requirement for a large number of parking spaces for its proposed 800 ft. long and 22 ft. wide pier, including an observation pier head measuring 85 ft. by 85 ft.  Existing town parking ordinances require 125 parking spaces computed by the area available for assembly on the pier and the seating facilities.  Nowhere near this many spaces exist in the vicinity of the pier and resolution to this suit is unclear at present.  The pier site is clearly within the town’s jurisdiction which extends a mile out to sea.  (Note: The suit has since been dropped.)