The Columbia Tax Modernization Committee held its first meeting on Thursday, April 14th at 11 a.m. in Council Chambers to discuss the plan to reduce property taxes on commercial property, apartments and rental homes in Columbia and Richland County.
Dr. Stephen Walters, chief economist at the Maryland Public Policy Institute, and Dr. Rebecca Gunnlaugsson, president of Acuitas Economics, shared presentations during the meeting with Mayor Daniel Rickenmann, Councilman Ed McDowell, Steve Taylor, president of Midlands Realtors Association, James Bennett, president of the Midlands Business Leadership Group, Billy Cantey, a local small businessman and property manager. Former State Commerce Secretary and City Councilman, Joe E. Taylor chaired the meeting.
The presentations included information about taxes in our local counties and neighboring cities in the state, the negative effects of non-competitive taxes, expected outcomes and a recommended plan for the next 10 years to reduce taxes from 6% to 4%.
“It has been well documented that our high property taxes on business property, apartments and rental homes has created an environment where it is very difficult for our small businesses to grow, for us to compete for new investments and opportunities and to bring affordable rental housing in to the city. The mission of our committee is to come up with the best plan to lower business, apartment and rental home property taxes to a competitive level without raising any other taxes and fees,” said Joe E. Taylor, former secretary of commerce and Columbia city councilman.
“One of the great ways Americans build wealth is with small businesses, rental properties and owning a home. In a more viable investment environment, in a better tax climate, it’s easier for everyone to build wealth and easier for us to prosper,” said Dr. Stephen Walters.
“Year 1 and Year 2 we would carry on the same and instead of spending additional funding, we save in an escrow fund that can be spread out over the next 10 years,” said Dr. Rebecca Gunnlaugsson.
“The work of the Tax Modernization Committee was both productive and enlightening as to a path forward to amplify a solution that lowers the 6% assessed property tax rate without increasing any other taxes or fees. Utilizing the expertise of highly respected economists and the feedback of our community members and small business owners who are being impacted by such a high tax burden, the Committee is engaging in a transparent and succinct process that produces practical recommendations to benefit everyday citizens and small business owners,” said City Manager Teresa Wilson.” “We should ultimately be striving to address our economic environment and make it most competitive to provide opportunities for all of our citizens to flourish.”
“From an economic development standpoint, we are acutely aware of the limiting effect high taxes have on the recruitment of new businesses, development and investment. It also restricts the capability of our small and existing businesses to grow competitively concerning their peers in a low tax environment. The meeting of the Tax Modernization Committee reaffirms the City of Columbia’s commitment to supporting the growth of our local business community, and we are incredibly excited about the positive impact this work will have on our City. We look forward to the innovative ideas this group generates, and supporting the implementation of their plans going forward,” said Economic Development Director Ryan Coleman.
**see presentations below:
Columbia Competitive Tax Plan (Dr. Rebecca Gunnlaugsson)
Tax Modernization Committee (Dr. Stephen Walters)