Inflation, employee retention driving Lexington County tax hike, officials say

Posted 5/26/23

Lexington County residents will likely see an increase in property taxes as the county struggles to retain employees and deal with inflation.

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Inflation, employee retention driving Lexington County tax hike, officials say

Posted

Lexington County residents will likely see an increase in property taxes as the county struggles to retain employees and deal with inflation.

At the May 23 meeting, County Council gave second reading approval to the 2023-2024 budget, which includes a 5 percent raise in property taxes.

County officials said that would raise the taxes on a $100,000 primary residence by $19.69 and by $29.53 on a $100,000 commercial property or residential property not occupied by the owner..

The budget total amounts to $182.5 million, a 9.4 percent increase over last year.

Council members did not offer any comments on the budget ordinance, which received unanimous approval. Third and final reading is scheduled June 13.

Asked by the Chronicle what motivated the tax increase, Council Chair Beth Carrigg said the county must provide funds necessary for emergency service personnel, such as police and firefighters. She said approximately 70 percent of the general fund budget would go to those agencies.

Answering a request by the Chronicle for budget details, Lexington County officials confirmed Carrigg’s numbers on budget allocations.

The actual percentage of the budget going to emergency services is 72.70 percent. The departments receiving the allocations are: law enforcement, fire services, public works, 911 and EMS.

Carrigg said inflation is also a factor, adding that it’s unfortunate council has to impose the hike, but it’s necessary.

“We tried to keep it as low as we can,” she said, noting that it’s the first property tax increase in 10 years.

Council Vice Chair Darrell Hudson said maintaining competitive salaries is an essential need for the county, given the departure of some employees to higher paying jobs offered by other local governments.

“We are like a training ground,” he said.

Hudson said the county’s pay scales need to be elevated.

The budget includes a 7 percent cost of living adjustment and a merit increase of up to 3 percent.

In response to a request for budget details, county officials said the budget increases are needed to deal with inflation, rapid growth and hiring:

“The budget increases are also needed to help with not only hiring employees but retaining our employees as well.”

Economic growth is also a major factor.

According to an annual report from the Lexington County Department of Economic Development, the county received commitments of $448.7 million in capital investment and 1,107 new jobs in 2022.

Lexington County’s current population is 300,311 with a growth rate of 1.06 percent in the past year, according to the most recent census data. The county is the sixth largest in South Carolina. The 2010 population was 262,391, with the county growing by 14 percent since then.

lexington county property tax, council chair beth carrigg, darrell hudson, sc inflation, midlands employee retention

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