Jorja Sanders has seen the effects of high rental property taxes.

“I have experienced first hand the frustration of would-be tenants trying to find decent, affordable housing in the Chapin area,” the Exit Midland Realty agent said.

“There is no easy solution for the families who can’t afford the current rents that average in excess of $1,000 a month for a small 2-3 bedroom unit.”

SC Act 388 gave homeowners a considerable tax break in 2006 but shifted the tax burden to businesses and those who own rental houses.

The cascading effect has caused rent to soar.

Rentcafe.com says the average rent in Lexington is $1,086, a 6% increase from 2018. Those in the working class, who work 2-3 jobs, are feeling the consequences.

Renter houses fall in the same category as a business. Rental owners pay 6% in property taxes along with insurance, upkeep, mortgages, and operating expenses but not the tax break that homeowners receive.

“Act 388 accomplished what it was intended to do, provide homeowners tax relief,” said SC Chamber of Commerce CEO Ted Pitts of Lexington.

“The unintended consequences have shifted more of the burden onto small businesses and renters.”

Former Lexington Mayor Hugh Rogers believes the law is unfair and prices working people out of housing options.

“The law is unfair to renters,” he said. “Homeowners get a tax break, and renter homes get taxed at 6%. Those affected the most are in high growth areas.

“It’s very difficult for families to put together the security deposit, pet fee, and first month’s rent before they can move into a property.”

“Wonderful people trying to live independently on fixed incomes are unable to find a place to live,” said Sanders.

“The plan that passed was good for homeowners but has not been good for businesses and fast-growing school districts,” said Pitts.

“We must do something to fix the system.”