Rock Hill-area schools could be missing out on millions in property tax money, report says
York County schools missed out on roughly $140 million between 2017 and 2023 due to corporate tax breaks, according to a report released this month.
Nearby Chester County saw the second-highest per-student loss of any South Carolina county.
Those losses are part of more than $3.2 billion in foregone revenue across the state as reported by Good Jobs First, a national policy center focused on corporate and government accountability. Good Jobs First said that money could have hired more than 6,600 instructors statewide each year.
Local governments often grant tax breaks to new businesses to encourage them to set up shop locally and bring jobs. The intention is to spur economic growth.
Schools receive much of their funding from property taxes, including those paid by businesses. The report posits that schools lose out on dollars than they would otherwise have access to if businesses pay lower taxes. Public services such as police and fire departments also pull funding from property taxes.
“Just thinking about all of the things that could’ve been done with this money, all of the ways that these students’ education could have been improved, it’s hard to think that this is where the government’s priority lies: Funding these corporate tax breaks instead of giving students the money that they deserve,” said Anya Gizis, a research analyst who worked on the report.
How much did Rock Hill-area schools lose in tax abatements?
Fort Mill School District spokesperson Joe Burke said these agreements aren’t all bad. His district works with local economic development groups to help them understand the impact of abatements on schools and appreciates “their efforts to be mindful of this issue.”
“While these agreements can result in a loss of projected revenue for school districts, we recognize they are a key tool used by counties and municipalities to attract businesses and jobs, which ultimately contribute to the overall tax base,” Burke said.
Even so, York County schools missed out on millions to abatements since 2017, data shows:
- Fort Mill School District lost $79.8 million
- Rock Hill School District lost $41.5 million
- York School District lost $5.3 million
- Clover School District lost $5 million
Neighboring Lancaster County lost about $94 million for its only school district, data shows. Chester County, just south of York County, suffered the second-highest annual per-pupil loss in the state at more than $2,900 per student. That adds up to nearly $115 million since 2017.
Only Dorchester County in the Lowcountry lost more per pupil dollars, almost $3,300 per student, the report shows.
The South Carolina Education Association, a statewide teachers’ union, said it supports new business in the state but wants government officials to reconsider how schools are impacted by abatements and, perhaps, shield them from the loss.
“In order for genuine investment in our communities, it requires prioritizing the needs of teachers, parents, and the more than 90% of South Carolina children who attend public schools,” the education association said in a statement.
Business wouldn’t come without tax breaks, critics say
This year marked the third iteration of Good Jobs First’s South Carolina-specific report. The policy center regularly produces national reports and crafted other granular looks at states and cities.
South Carolina is an outlier due to the frequency of these contracts, the length of their terms and the amount of money they divert from schools, said Greg LeRoy, executive director of Good Jobs First.
“This tension between tax abatements and public education is not unique in South Carolina,” LeRoy said. “It’s severe in South Carolina.”
But critics say there’s no guarantee schools would receive lost property tax revenue in the first place if not for tax breaks.
LeRoy rejected that argument as “misinformed,” saying research showed more than two-thirds of existing business deals would have happened even without abatements.
“People have an exaggerated sense of how much taxes matter in this equation,” LeRoy said. “Companies will take anything they can get.”
Good Jobs First recommended abatement agreements shield school districts’ share of property tax from being touched and counties increase the level of transparency surrounding abatement deals. In South Carolina, Gizis said the details surrounding most deals are hidden from the public, making it difficult for citizens to hold them accountable.
Districts should also have a say in tax abatement deals, and the terms of the deals should be shorter since many can last up to 40 years, according to the report.
