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Why do we fight taxes?
Rickenman hopes the change will break the cycle of high taxes, low property values and stagnant growth laid out in the 2020 report.
Colombia’s property values, working-age population and total population have grown little to none over the past decade, the report found.
Property values in the capital rose 16 percent in that time frame, 36 percent in Greenville, 171 percent in Rock Hill and 217 percent in Charleston.
Despite thousands of college students coming to Columbia every year, its population has been shrinking since 2016, with the number of adults aged 25 to 54 growing just 2.5 percent, compared to 15 percent in Charleston, 34 percent in Greenville and 64 percent in Greenville. in Rock Hill, according to the report.
The reason: Higher taxes encourage investment and growth, which means lower incomes and more tax increases, economist Rebecca Gunlagson wrote in the report. Gunnlagson, who now works in the S.C. Department of Commerce, was contracted by the city to produce the 2020 report through her Columbia-based company, Acutus Economics.
Offsetting the tax burden would put Columbia on a level playing field with other cities, Rickenman said.
“What we’re trying to do is make Columbia more competitive in our own state,” Rickenman said.
More growth and more investment will bring more growth and a higher revenue stream to the city, increasing the amount spent on projects, Rickenman said, which could mean completing the long-awaited plan to redevelop the riverfront or strengthen the city.
Additionally, the tax credit will help promote affordable housing and bring grocery stores to food deserts, Rickenman said. It can also increase downtown density by encouraging businesses to fill smaller lots.
“If we have all that investment, it gives us more money for our schools, more money for our parks, more money for our roads, more money to invest in infrastructure because we’re building,” Rickenman said.
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