Lawmakers sharpen
bills shifting S.C. taxes
By Zane
Wilson The Sun
News
While state House and Senate tax committees refine their
proposals today to cut some property taxes by imposing a higher
sales tax collection, local governments are watching the discussions
closely.
The Senate is proposing cutting taxes on real estate and personal
property for school-operation expenses. The House is offering a plan
to cut all local property taxes on owner-occupied homes.
Both plans would replace the money with a 2-cent increase in the
sales tax.
The committees say they will have legislation ready when
lawmakers return Jan. 10.
Rep. Tracy Edge, R-North Myrtle Beach, and Rep. Vida Miller,
D-Pawleys Island, are among members on the House tax committee. No
area senators are on the Senate committee.
The devil is in the details, said Georgetown County Administrator
Tommy Edwards, who has been working in county and city governments
in South Carolina for more than 30 years.
"The distribution formula could have a tremendous impact in
Georgetown County," as well as Horry and others that have high
percentages of tourism and second-home ownership, Edwards said.
The state tax code is riddled with layers of distribution
formulas including those that determine how much state money local
schools receive and amounts of sales and accommodations taxes that
richer counties such as Horry must share with poorer locales.
If the distribution is based mainly on resident population,
counties such as Horry and Georgetown could end up with less than
they have now, he said.
"It would depend on whether they make any allowances for
tourism," Edwards said.
He also is concerned that the formula for the tax breaks might
not be as generous as in other counties because of the coastal
area's high property values.
Myrtle Beach spokesman Mark Kruea said legislators should study
changes in the entire tax structure and not single out one aspect of
it.
If the state wants to take away city and county property taxes,
Myrtle Beach officials wonder what happens to bonds for improvements
that are based on the property tax.
And, Kruea asked, what would happen to special tax districts
legislators approved, such as multicounty business parks and
tax-increment financing districts?
Moreover, "how does government pay for needed improvements?"
Kruea asked.
"We're the ones who provide the services," who put police and
firefighters on the streets with tax money. What would happen if
that were taken away is important for legislators to consider, Kruea
said.
Edwards said he hopes lawmakers limit the shift to school taxes,
which are the largest chunk of property tax bills, at about 75
percent. That would provide real relief to most taxpayers,
especially coupled with a freeze on property values until the
property is sold, he said.
Blueprints
House and Senate plans both cut property taxes and replace them
with an additional 2-cent sales tax; groceries would be exempt
Senate | Eliminate taxes for school operating costs on all
real estate and personal property
House | Eliminate all property taxes including schools,
city and county, on owner-occupied homes only
|