Myrtle Beach Homeowners Face Tax Changes: New Millage Rates & Property Assessments
Residents within the city limits of Myrtle Beach, South Carolina, are set to experience considerable adjustments in their property taxes, as city council members approved a resolution introducing new millage rates on Tuesday, July 23rd, 2024.
Rollback Millage and Property Value Assessment
In May this year, HERE News reported that the city had been awaiting Horry County’s five-year property value assessment. This evaluation was crucial to calculate what’s termed the “rollback millage.” The rollback millage is a South Carolina law designed to cap tax increments when property values increase.
This year, many Myrtle Beach homes increased in value. Therefore, while homeowners will pay higher taxes, the new millage rate is lower, minimizing this increase. Last year, the total millage rate, including the debt service millage, stood at 88.9. However, the rollback rate passed on Tuesday is 83.9. Despite the lower rate, homeowners with property values that saw a 15% increase, for example of a home valued at $250,000, could expect to pay around $25 more in property taxes this year.
Impact on the City’s Budget
Concerning this tax change’s effect on the city’s budget, city’s Chief Financial Officer, Michelle Shumpert, projected a $2 million increase in the general fund. However, she warned that these figures could change. Furthermore, she clarified that first-time homeowners would argue against the 6% non-local rate and would instead receive the 4% local rate.
Shortfall in the Tourism Development Fund
There may be a shortfall in the Tourism Development Fund (TDF), primarily funded by tourists and granting credits to homeowner’s tax bills. Shumpert stated, “The total revenue is down about $700,000 from last year. Now, that is just a small percentage of the total money generated, but we did see a decrease. Therefore we may or may not have enough money to cover it next year. Consequently, the general fund could be a little short in that.”
Shumpert’s advice to the council was to wait and see how much of the increase would enter the general fund, as several factors are yet to play out.
Awaiting Further Developments
The council’s decision on the new tax millage rates and the consequent changes in property taxes denote a significant financial shift for the residents of Myrtle Beach, South Carolina. Further developments on the impact of this change on the city’s funds, including the general fund and TDF, are highly anticipated and will be closely monitored by the HERE News team.
Stay tuned for more updates on this pivotal story.
