Florence One Schools Loan Change Raises Taxes | Local News






Renderings on interiors of Williams and Southside Middle Schools.


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FLORENCE, SC –When he opened his property tax notice, Bill Phillips was surprised to find that his bill had increased by about $ 200.

Phillips said he was surprised to learn of the increase and that several of his neighbors in the White Hall area were asking questions about the reasons for the increase in their taxes.

The property tax increases mainly come from an increase in the number of Florence One schools. The mileage rate increased by around 11.4%, from 238.6 mills in 2020 to 265.8 mills.

A mill, previously used to denote 1 / 10th of a cent, is the rate at which real estate, land, and buildings are taxed in the United States. Basically, the county determines the value of the property, applies an appraisal ratio (either 4% for occupied owner or 6% for businesses), then multiplies those numbers by the mileage rate to get the amount of taxes owed.

The increase in the district’s mileage rate is due to a change in the way the district borrows its money by 8%.

Basically, South Carolina law allows school districts to borrow up to 8% of the value of the property they own. Typically, borrowing is in the form of bonds.

Bonds are a fixed income investment in which the borrower, in this case the school district, agrees to pay a fixed interest rate over a period of time and the value of the bond at the end of the period. . The date on which the value of the bonds must be redeemed is called the maturity date.

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