S.C. taxes for manufacturers are some of the highest in the country, and it’s hurting the economy, said Greenville Area Development Corp. Chairman and former Michelin CEO Dick Wilkerson at a GSA Business Power Breakfast event today.

“It doesn’t affect our ability to attract large companies, because most counties are willing to work on a fee in lieu, but for small companies in manufacturing and development, it’s a penalizing environment,” said Wilkerson. “If there’s one thing I’d ask you to do is talk to your representatives about changing Act 388, both for economic development and education for our children.”

Passed in 2006, Act 388 was aimed at giving homeowners a break in annual property taxes by shifting the funding of schools from residential property tax revenues to sales taxes. Commercial and industrial property was not given the break, however, and opponents of the act have said the move effectively shifted extra burden of funding schools to manufacturers and commercial property owners.

“We have the lowest homeowner tax rates in the nation, but all of us end up paying because of the difficulty of developing small manufacturing,” said Wilkerson. “Education gets punished too because now it’s my sales tax, which is dynamically based on economic activity, and when there’s a downturn in economic activity, our schools suffer.”

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