GREER, S.C. (WSPA)—The City of Greer is pushing back against a lawsuit filed by a city taxpayer that challenges both the city’s property tax rollback calculations and its use of the nonprofit Corporation ForGreer to finance major capital projects.
The lawsuit, filed by Greer resident Lewis Vaughn, alleges the city failed to properly reduce its millage rate following Greenville County’s 2025 property reassessment, resulting in higher tax bills for many property owners. The complaint also contends the city’s use of corporation ForGreer and lease-purchase agreements for nearly $100 million in projects unlawfully bypasses voter approval requirements tied to municipal debt.
In an answer filed Oct. 7 in Greenville County Common Pleas Court, the city, Mayor Rick Danner, Greer City Council and Corporation ForGreer denied the allegations and asked the court to dismiss the lawsuit.
Dispute over property taxes
Vaughn argues the city should have implemented a larger rollback in its millage rate after Greenville County’s reassessment increased property values. The lawsuit alleges the city collected more tax revenue than allowed under South Carolina law and unfairly shifted a greater tax burden onto property owners on the Greenville County side of Greer.
The city denies those claims.
In its court filing, Greer maintains its millage rate was “legal and proper” and argues tax disparities cited by the plaintiff are the result of Greenville and Spartanburg counties operating on different reassessment schedules, not any improper action by the city.
The city also argues that debt-service millage is exempt from certain rollback limitations under state law and denies that taxpayers were improperly charged because of its millage calculations.
ForGreer financing defended
The lawsuit also challenges Corporation ForGreer, a nonprofit established in 2024 that is being used to finance several major city projects, including the Prisma Health Performance Center, a public safety training facility, a fire station and parking improvements.
Vaughn argues the arrangement effectively allows Greer to incur debt beyond constitutional limits without first obtaining voter approval through a referendum.
The city disagrees.
According to its response, Corporation ForGreer is a 501(c)(3) nonprofit created to issue bonds, purchase capital assets and lease those assets back to the city through an installment-purchase revenue bond structure.
The city argues that the financing method is legally recognized under South Carolina law and denies that ForGreer serves as the city’s “alter ego” or that the arrangement improperly circumvents constitutional debt limits.
Greer also disputes the plaintiff’s calculation of the city’s debt capacity. The lawsuit cites the city’s assessed property value at roughly $23.6 million, but the city contends that figure actually represents the calculated 8% debt limit. According to the city’s filing, the total assessed value is approximately $294.6 million.
City of Greer seeks dismissal
The defendants raised multiple legal defenses, including lack of standing, failure to exhaust administrative remedies, statute of limitations concerns and sovereign immunity.
The city also argues South Carolina case law supports the legality of its financing structure and that its actions were taken lawfully, in good faith and in the public interest.
Attorneys for the city have asked the court to dismiss the complaint, deny all requested relief, and award attorney’s fees and costs associated with defending the case.
What’s next?
The case remains pending in Greenville County Common Pleas Court.
No ruling has been made on the merits of the claims.
The lawsuit seeks court declarations that Greer’s millage calculations were unlawful and that its financing agreements with corporation ForGreer should require voter approval.
The city denies both allegations and maintains its actions complied with South Carolina law.
The City of Greer told 7NEWS they have no further comments regarding the pending litigation.