Friday, Sep. 11, 2009

Tax break for developers? Me too, please

Normally, I'm a pretty mild-mannered guy, but every so often I read or see something that sends me straight over the edge.

Usually, it's some asinine attack on President Obama, such as the firestorm over his address to public school students. But even then I'm more angry at the normally fair-minded people who buy into this garbage than at the loonies who spread it.

The latest outrage has nothing to do with Obama but everything to do with S.C. General Assembly.

It seems our state lawmakers have decided that developers should not have to pay property taxes on speculation homes they built but have not yet sold.

One recipient of this largesse is a well-connected Charleston contractor who campaigned legislators to change the tax law in his favor - actually, about $16,000 a year in his favor on two homes that are standing unsold. The property tax break is, of course, available to other developers.

The developer told The (Charleston) Post and Courier the tax break was fair because unoccupied homes place little or no demand on local governments. "I'm just writing a check for nothing," he said.

Using that kind of logic, there's a whole lot of South Carolinians writing a check for nothing. Unfortunately, they aren't necessarily people who build homes on speculation or have ready access to S.C. legislators.

I, for instance, have a small lot in Beaufort County that is taxed to the tune of more than $1,200 a year. It also places little or no demand on local government. Where's my break, lawmakers?

A lot of people are calling for the head of Gov. Mark Sanford, but he vetoed the bill when it reached his desk.

"Taxpayers provide financing in support of residential development and will now be asked to maintain more of it because homes are not sold," Sanford said in his veto message.

"This hardly seems equitable to those who already shoulder a significant tax burden at the local level."

Not surprisingly, the veto was overridden by the General Assembly, which also extended its original three-year tax exemption to five years. Well, they just can't do enough to help those poor developers.

I've complained before about the "tree farm" taxation given developers, wherein undeveloped property is taxed at $1 an acre. I even wrote a tongue-in-cheek column, asking that my 0.38-acre lot be taxed at 38 cents instead of the $1,234 I had just paid.

What a schlemiel I am. I actually wanted to pay 38 cents on my empty lot while a builder of a new home doesn't have to pay anything. What a dummy.