In today’s Wall Street Journal (subscrip req), Rafael Genera-Morales highlights the new generation of property tax revolt. Unlike California’s proposition 13, the new movement has an extra stick-it-to-the-rich twist. Given the weakening of community services that is typical with these tax slowdowns, some newly lux and semi-lux municipalities are focusing their sights on those most guilty of driving up market values: new people. More specifically, rich new people.

Now, how do you legally discriminate against rich new people? You tax the daylights out of second homes, while granting a reprieve for primary residences. It’s a wonderful solution that no politician can resist: tax those who aren’t a part of the community (read: out of town during voting season), and spare those reg’lar folk just trying to get by. Say that last part again with a Boss Hogg twang and you’ll see what I mean. Perfect pitch politicking. Now go clear some brush for the full effect.

South Carolina’s considering NO taxes for primary residences, and increased rates for out-of-staters. Ouch!

This could tack on a hefty burden to destination clubs, unless the industry can scramble fast enough to slide a few itty-bitty exceptions into the laws. Nothing like a billion-dollar bridge-to-nowhere…just a little something exempting the already highly-taxed hospitality biz. It might actually have the effect of improving the financial appeal of destination clubs relative to vacation home ownership.

We’re starting to see some industry involvement with lawmakers – take a look at the last third of this powerpoint prepared by Ultimate Resorts. There’s much more to be done in educating lawmakers on the industry structure and the impact of taxation on the health of local services. As the larger clubs flex their muscles (see yesterday’s post on Exclusive Resorts role in development), expect to see them at the table, protecting their members as everyone grapples with the new market dynamics.