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The unpopularity of property taxes and the simplicity and perceived fairness of sales taxes have made the Local Option Sales Tax for Education a popular.

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Presentation on theme: "The unpopularity of property taxes and the simplicity and perceived fairness of sales taxes have made the Local Option Sales Tax for Education a popular."— Presentation transcript:

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2 The unpopularity of property taxes and the simplicity and perceived fairness of sales taxes have made the Local Option Sales Tax for Education a popular method for funding capital projects for public schools. Purpose

3 Educational Capital Improvement Sales and Use Tax The school district or districts within a county may impose a 1% sales and use tax within the county for specific education capital improvements for the school district for not more than 15 years. The tax is authorized under South Carolina Code Section and must be approved by a referendum open to all qualified electors residing in the county. Local Option Sales Data

4 State of South Carolina Local Tax Designation by County Effective May 1, 2013 Collected by the SC Department of Revenue

5 Pros and Cons of Local Option Sales Tax PROS:  Provides a property tax reduction for all property owners  Commuters, renters and tourist populations will bear part of the tax burden  Substantial revenue raising potential  Seen as a “pay as you go” system and is the least of the “unpopular” taxes  Impact experienced quickly for educational capital improvements CONS:  Some individuals may not want an extra sales tax or financial burden  If the economy worsens, there is less sales tax collected for capital projects that have been planned  Must be closely monitored so property tax reduction is not miscalculated

6 The Impact of a Penny School District Day ADM District Allocation %Calculated Amount Per Year District One9, %4,129, District Two3, %1,664, District Three2, %1,138, District Four2, %1,276, District Five12, %5,552, Total30, %13,760, % Sales Tax Calculation B&C Board Conservative Estimate $13,760,979

7 Examples of Estimated Tax Savings The 20% property tax credit would result in an estimated 2.5 mill reduction in debt service millage. Examples of estimated tax savings are listed below: PRIMARY RESIDENCE$9.88 in tax credit per $100,000 value BUSINESS PROPERTY$14.82 in tax credit per $100,000 value RENTAL PROPERTY$14.82 in tax credit per $100,000 value PERSONAL VEHICLES$1.48 in tax credit per $10,000 value

8 Proposed Projects for Anderson Four  High Priority:  Career Center shared with Anderson Districts 3 & 5 to provide our students both more choices and more update to date learning environments  Possible Other Projects:  Safety and Security Enhancements: additional cameras including buses and improved communication equipment  HVAC Improvements at PHS : recent special obligation bonds could be made more rapidly or reduce the debt service more  Updating PHS Auditorium with sound, projection and new seating  Improving Athletic Facilities: needed track, additional fields

9 Districts 3, 4, and 5  Plan to construct and equip a facility for career and technical education that would be a shared between the three districts in collaboration with Tri-County Tech  For these districts, there will be two questions on the General Election ballot.  The first pertains to the sales tax itself.  The second would allow Districts 3, 4, and 5 to sell the general obligation bonds (paid by the sales tax) needed to begin construction projects immediately.

10  ALL students can benefit from opportunities to apply knowledge and experience real world equipment, instruments, environments  Economies of scale provide more choices, more classes and more specialized opportunities  More collaboration with business and industry, i.e. apprenticeships, internships, field offers  Seamless opportunities to earn college credit Career Center Benefits

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13  Register by October 4  Absentee vote or Early vote, if you will not be in town  Know the facts, vote with accurate information  Think about the now and the future when you make your decision  Questions and Answers Plan to Vote November 4


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