Bills to lower the tax rate on manufacturing, commercial, and rental property in South Carolina are up for debate by a House panel. The proposed bills are set for subcommittee discussion, and are part of a tax reform package introduced last week by the House Republican Caucus. Ultimately, if passed, they would directly lead to reduced local government revenue.
One of the proposed bills would cut manufacturers’ property taxes from 10.5% to 6% over a four-year period. The estimated hit that state budget advisors predict this cut would have on local governments is about $228 million over that timeframe. The other bill would reduce the rate on commercial and rental property from 6% to 5% over eight years. That total price tag would reach $827 million in 2020-21.