COLUMBIA - Although it cited concerns about unintended results, a House subcommittee nevertheless voted unanimously Tuesday to advance a bill halting property-tax reassessments for owner-occupied homes unless they change hands.

The plan would have the most effect for residents in high-growth areas such as Horry and Georgetown counties, where property values are rising rapidly.

The proposal would cause a $76 million tax shift the first year, mostly to commercial and rental property, and $169 million after five years, according to the state Board of Economic Advisors.

The bill is a response to a ruling by the state Supreme Court that overturned a law capping property-tax increases after reassessment at 15 percent. Gov. Mark Sanford then vetoed a bill passed last year that capped taxes after reassessment at 20 percent, and legislators sustained the veto.

People are demanding property tax relief, and they expect legislators to give it to them even though it is a tax collected by local governments, members of the subcommittee said.

"We have heard from people," said Rep. Tracy Edge, R-North Myrtle Beach, a member of the panel.

Edge said his home is an example of what is happening to people.

It rose 43 percent in value during the last reassessment. Although that doesn't mean his taxes are going up 43 percent, "I'm going to get a kick in the rear," he said.

"There's a thing in the real world called supply and demand," said Rep. B.R. Skelton, R-Six Mile, a retired economics professor.

That is why property values are rising more rapidly in Horry, Georgetown, Beaufort and other counties that are attracting new residents, he said.

There always will be people hurt by property taxes, "but in Horry County, you're only hearing from 10 or 15 percent of the people," Skelton said.

Legislators aren't hearing from the people who will be hurt by the tax shift, he said.

People may well be complaining, "but we have some of the lowest property taxes in the U.S.," Skelton said. "Are we only listening to the 10 percent that are going to benefit from it?"

Rep. Ronny Townsend, R-Anderson, wrote the bill. He said that in most cases, when property values rise, people's income does not rise at the same time and they are unable to pay.

His bill also would ease some of the inequity created by the myriad state tax breaks used for incentives to business and industry, Townsend said. Those tend to shift some of the tax burden to homeowners.

Newcomers would be paying more to help cover the costs of services they create the need for, especially in high-growth areas such as Horry County, said Rep. Bill Cotty, R-
Columbia. New houses would be valued at their fair market value.

"It's akin to an impact fee," Skelton said.

The S.C. Chamber of Commerce fears the measure will scare off potential new business and industry in addition to shifting the burden to business.

Chamber lobbyist Otis Rawl said local governments will simply increase taxes to make up for lost revenue.

"You're trying to help homeowners and families, but I think you're actually going to hurt them in the long run," Rawl said.

Cotty and others on the panel agreed they would rather have comprehensive tax reform that looks at all forms of taxation, but there currently is no leadership for it and nothing is on the table.

"If the bill advances, it forces people to leave extreme positions and find solutions," Edge said.