Myrtle Beach Homeowners Brace for Tax Changes with Shift in Millage Rates and Property Assessments

Myrtle Beach City Council passes resolution for new millage rates

Myrtle Beach homeowners are facing notable changes in tax implications as city council members have passed a resolution for new millage rates and property assessments. Earlier this year, we reported that the city had been anticipating the five-year property value assessment report from Horry County, which is used to calculate the so-called “rollback millage.”

“Rollback millage” refers to a South Carolina law where the amount of tax increases is capped when property value increases. This year, a significant number of homes in Myrtle Beach saw an increase in value, which means homeowners will be paying more in taxes. However, to keep the increase at bay, the new millage rate has been lowered.

Last year, the total millage rate, which included the debt service millage, was marked at 88.9, while the newly passed roll back rate rests at 83.9. Despite this rate being slightly lower, homeowners of properties valued at $250,000, which have seen a 15% increase in property value, are set to pay an additional $25 in property taxes this year.

Impact on the City’s budget and the Tourism Development Fund

City Chief Financial Officer, Michelle Shumpert, estimates that these changes will lead to an approximate $2 million increase in the general fund, but she also cautions that this can change. According to Shumpert, first-time homeowners have the option to appeal the 6% rate directed towards non-locals, and thereby adopt the 4% local rate instead.

Moreover, there could be a shortfall in the Tourism Development Fund (TDF), which primarily sources its money from tourists, and in turn provides a credit to local homeowners’ tax bills. Shumpert reveals, “The total revenue [from the TDF] is down by about $700,000 from last year. While that may seem like a small percentage of the total funds generated, there has indeed been a decrease.”

As the foundations stand, it is possible that the general fund might see a shortage in the next fiscal year. Emphasizing the fluidity of the situation, Shumpert suggests that the city council adopt a “wait and see” approach to gage how much of the increase would go into the general fund, given the numerous factors and variables in play.

Myrtle Beach homeowners and prospective property investors are advised to take these changes into consideration when planning their property taxes. Stay connected with HERE News Network for more updates on this and other local news.

Author: HERE News

Source: HERE News Network