Report Shows 1% Sales Tax Could Save Up to $165 on Property Tax Bill

A report on Dorchester County's proposed 1-percent local option sales tax, which goes in front of voters in November, shows the average Summerville property owner could see up to $165.56 in property tax relief. 

County Auditor J.J. Messervy presented the report's findings Wednesday night during a regular meeting of Summerville Town Council. Messervy was asked by the county to gather the information, and asked by the town to present the information at the meeting. He told Patch he does not hold an opinion on the proposed tax. 

If 100 percent of the money raised by the tax is used toward property tax relief, a $100,000 property owner in Summerville could save $116.18 on county and town taxes, according to the report. According to Zillow.com, the average home price in Summerville is $142,500 — so possible savings on the average property tax bill is $165.56.

The least amount the average property owner in Summerville would save is $112.47.

Board of Economic Advisors estimated the projected revenue from the sales tax would be $8,986,025.

By state law, 71 percent of the revenues generated must go toward property tax relief. The remaining 29 percent would be split 50-50, distributed based on location of the sale and based on population among county and municipality, according to the report. State law leaves that 29 percent allocation up to the governing bodies.

According to Messervy, an owner-occupied home in the limits of Summerville pays $685.20 per $100,000. Last November, voters approved increasing taxes $84 per $100,000 on properties to help build and improve Dorchester County School District Two schools. 

On top of the 6 percent state sales tax, Dorchester County has a 1-cent sales tax that pays for road improvements, and Summerville has a 2-percent hospitality tax, which applies only to prepared foods and beverages.

According to U.S. Census data, the average weekly grocery bill among those earning the Summerville household income average of $67,980 is just shy of $90. Those grocery shoppers in Dorchester County would see an additional 90 cents added to their weekly bill, and less than $50 over one year. 

Voters will have their say on the proposed tax Nov. 5.