Myrtle Beach Homeowners Face Fiscal Changes as New Millage Rates & Property Assessments Come into Effect
MYRTLE BEACH, SC – Homeowners in Myrtle Beach city limits should brace themselves for financial changes, as the city council approved new millage rates this Tuesday. The adjustments come in the light of the five-year property value assessment recently concluded by Horry County. These assessments were key in calculating the so-called “rollback millage,” which is a South Carolina law aimed at limiting the rise in taxes when property values increase.
Improving Property Values, Increasing Taxes
An increased value in many Myrtle Beach homes this year means homeowners will face higher taxes, despite the new reduced millage rate introduced to keep such increments to a minimum. Last year’s total millage rate, which includes the debt service millage, stood at 88.9, whereas the new reduced rate passed by the council is now 83.9. To put the numbers in perspective, the owner of a $250,000 home who experienced a 15% increase in property value will find themselves hit with an approximate $25 increase in property taxes.
Impact on City’s Budget and the Tourism Development Fund
The city’s Chief Financial Officer, Michelle Shumpert, anticipates this tax change will result in a $2 million boost to the general fund revenue. However, she noted there may also be reduced revenue for the Tourism Development Fund (TDF), which primarily derives from tourists and offers homeowners a rebate on their tax bills.
“The TDF’s total revenue is about $700,000 less than last year. In comparison to the large volume of money being generated, this may seem relatively minor, but it is a decrease nonetheless. Therefore, there’s a possibility we may not have enough coverage for it next year, leaving the general fund potentially short,” said Shumpert, therefore advising the council to keep an eye on incoming funds to properly assess which ones augment the general fund.
First-time Homeowners and Tax Rates
First-time homeowners could also see some changes with the new millage rates and property assessments, Shumpert noted. These individuals may appeal the standard six percent non-local rate and request the local rate of four percent instead, affecting their annual tax expenditure significantly.
Given the number of factors affecting the final impact of these changes on both the homeowners and the city’s coffers, she advised the council to keep a close watch on how events unfold. This reflects the fluid nature of such fiscal changes and the uncertainty inherent in their implementation.
Therefore, homeowners, first-time buyers, and potential investors are all urged to stay informed and be prepared for shifts in the fiscal landscape of Myrtle Beach. As the city council evaluates the consequences of these new rates and the effect on the general fund, it’s a waiting game to see how this will ultimately pan out.
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