The City of Greer is facing a lawsuit alleging it did not roll back its millage enough in 2025, which plaintiffs say resulted in a property tax increase for residents in the Greenville County part of the city.
Former State Sen. Lewis Vaughn, R-Greenville, filed a lawsuit against the City of Greer, Greer Mayor Rick Danner, and the nonprofit ForGreer, alleging that the city did not roll back its millage sufficiently to comply with state law in 2025, resulting in a property tax increase for city residents.
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The lawsuit also claims that the city improperly used the nonprofit ForGreer to borrow more money than its general obligation debt limit allows.
The suit was first filed in July and was amended and refiled in mid-October. The updated lawsuit includes former Mayor Don Wall, Michael Douglas Greer, James Edward Wall and the South Carolina Public Interest Foundation as plaintiffs.
Lawyers for the defendants denied claims that the city's actions violated the law in a response filing to the lawsuit. The City of Greer has not responded to requests for comment.
Lawsuit argues millage rollback goes against state law
South Carolina law restricts taxing entities from collecting more revenue after property tax assessments. If assessed property values have increased, a taxing entity needs to roll back its millage rates to keep revenue the same.
The lawsuit claims that the City of Greer's millage should have been rolled back by 6 mills rather than 2 in response to the 2025 property assessment, resulting in a spike in revenue from city properties. According to the filings, the 2-mill rollback caused Vaughn's tax bill to rise from $992 to $1,121 from 2024 to 2025.
The lawsuit claimed that "virtually every" City of Greer property owner who lives on the Greenville County side of the city paid more in taxes in 2025 — a claim that the city's lawyers said there is insufficient evidence to support.
"The City’s failure to correctly implement the legally required rollback resulted in the City collecting tax revenues substantially in excess of those authorized by law," the suit stated.
The lawyers for the defendants denied claims that the city's millage violated state law in a response filed on Oct. 7.
Plaintiffs argue city tried to get around debt limits
The second part of the lawsuit alleges that the City of Greer attempted to unlawfully circumvent debt limits. According to the suit, the corporation ForGreer was established in 2024 to circumvent debt limitations.
Under state law, municipalities have a general obligation bond limit of 8% of the city's total assessed value of taxable property. For Greer, the 8% debt limit is about $23.6 million.
The city had entered into a $100 million lease-purchase agreement through ForGreer, which the suit argues was an attempt to circumvent debt limits. The $100 million investment included $60 million for a new sports and event center, which is expected to open in 2027.
In response to the lawsuit, the defendants' lawyers denied claims that the city violated the state constitution or sought to circumvent state law in its plan to finance the $100 million lease. The response said that the city's actions are consistent with state and federal law and were adopted in good faith.
"The defendants assert that the acts taken by the City at issue in this case are lawful," the response filing stated.
Bella Carpentier covers the South Carolina legislature, state, and Greenville County politics. Contact her at [email protected]