COLUMBIA, S.C. — At City Hall on Thursday, a new committee tasked with modernizing Columbia's tax system laid out its plan to cut commercial and rental property taxes over the next ten years.
“It's an issue for everybody," said economist Dr. Stephen Walters. "If you care about a viable, vibrant city, you gotta have a healthy economy."
Walters, along with economist Dr. Rebecca Gunnlaugsson laid out a plan to cut Columbia's commercial and rental property taxes by 33.3% over 10 years.
Under their plan, the first two years will be spent building an escrow account from new investments while cutting expenses in the budget. The third year the city can begin using those funds and money from other revenues to cover the tax cuts while new investments grow and tax reductions are phased in.
The plan includes "triggers" to adjust the tax rate faster or slower based on availability of new revenues each year.
According to data shown by Walters and Gunnlaugsson, Columbia's 6% commercial and rental property tax rate is one of the highest in the country. By lowering the tax rate, the committee hopes to draw in more businesses and more affordable housing to the area.
“We’re only going to consider solutions that don't raise taxes or fees on any other group," said Chairman of the Committee City Councilman Joe Taylor.
“This truly helps not just the big investors. It's the small business folks. The folk who have small rental units for their future retirement income," said Mayor Daniel Rickenmann. "This creates opportunities for generational wealth."
Kelly Tabor owns Good for the Sole shoe shop in Five Points. He said he's excited about any effort from the city to bring new business.
“When you walk by in a district and you see empty buildings it's kind of a downer," said Tabor. "When you see a lot of shops open and vibrant, it attracts more people."
“To me this is a historic plan that can monumentally change peoples lives in Columbia," said Mayor Rickenmann
The committee also plans to draft legislation to reform taxes at the state level.
The Committee's next meeting is Tuesday, May 3 at Council Chambers in City Hall. Residents are encouraged to come and participate in public comment.