COLUMBIA, S.C. — Columbia City Leaders are looking at ways to change the city's tax rates. The City's Tax Modernization Committee said changes are needed to make the city more economically competitive.
"I was paying $1,400 a year on Devine Street," said Donna Green, Owner of Southern Pottery.
Donna Green is one of many property owners in the City who spoke in front of the committee and shared their concerns over the high commercial property tax rates.
"I had to borrow money to pay my taxes, basically because my taxes were so high," Green said. "So, you have to think about how can you grow your business to cover that borrowed money and if it continues, then you have to really back off."
Green told News 19 she had to downsize her business by more than half—moving her business from Devine St. to the North Main Community.
In April, the committee laid out a plan to cut Columbia's Commercial and Rental Property taxes by 33.33%. The plan is to gradually reduce taxes for 10 years and hopefully sooner.
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.
"Commercial apartment and rental home taxes in Columbia are 48% higher than Charleston, 38% higher in Greenville, and 28% higher than just on the other side of the river," said Joe Taylor, Columbia Councilman.
The rate is currently 6%, according to the South Carolina Association of Counties. According to Taylor, the Capital City has one of the highest commercial property taxes in the country.
"It’s not deterring people from wanting to do business here, it’s keeping people from doing business here, and it’s restricting the amount of new investment that we have," Taylor said.
Green adds, in order to bring more people and businesses to Columbia, tax rates need to go down. "To start small businesses, there needs to be some type of equitable process of taxing commercially."
The next committee meeting is May 19 at 2pm. Members will work to finalize the plan and deliver it to the Mayor for consideration.