Posted on Wed, Apr. 19, 2006


Senate debate to revisit House property tax plan
Lawmakers might soon reach deal, will consider other proposals today

johnoconnor@thestate.com

The Senate inched closer to a compromise to reduce homeowner property taxes, though two votes and six hours of debate left more questions than answers.

When the Senate resumes debate today, it will be on an old idea: the House property tax reform plan.

Though Senators dismissed the plan when it first came over, the body deadlocked Tuesday when it tried to kill the proposal presented in the form of an amendment offered by Sen. Jake Knotts, R-Lexington. Lt. Gov. Andre Bauer, who presides over the Senate, broke the 20-20 tie, voting not to kill the amendment.

While the vote makes the House plan the new top contender, many senators said they are a long way from adopting the $1.2 billion tax swap.

The Senate has drifted for weeks on the issue, unable to balance the interest in cutting property taxes with the impact on school funding, consumers and businesses.

“This is a true vote as to the way the South Carolina Senate struggled with this issue,” Knotts said.

“We’re one step closer than we were.”

The House plan would raise the state sales tax by two cents on the dollar, using the money to pay the school and county operations portion of owner-occupied homes, while removing sales tax from groceries.

The plan is favored by tax reform advocates, who began airing radio ads criticizing the Senate on stations across the state Tuesday.

But the state chamber of commerce and manufacturers have raised concerns about the half-billion dollar cost to businesses.

Where Senate debate heads today isn’t clear.

Some members who voted against killing Knotts’ amendment would not support it becoming law, said Sen. Vincent Sheheen, D-Kershaw.

And others, like Sen. Larry Martin, R-Pickens, said some House members had asked him to kill the tax plan once they had approved it.

Senate President Pro Tem Glenn McConnell, R-Charleston, said the body made important progress Tuesday, staking out where a compromise could be struck.

“I think there’s a mood in the Senate to try and find some solution,” McConnell said, noting the looming possibility of a filibuster.

The House plan was the second discussed by senators in more than six hours of debate. Earlier, senators scrapped a proposal by Sen. Larry Grooms, R-Berkeley, that would strip school operating taxes from all property, but also raise more than a dozen taxes and fees — including the state sales tax — in order to cover the $2.4 billion cost.

The Senate is expected to discuss a handful of other options today.

One could be based on last fall’s recommendation from a special committee. That plan included a two-cents-on-the-dollar sales tax hike, but would spread the tax relief across all homes, as well as vehicles.

Another option is to allow counties to individually impose sales taxes to pay for property tax relief. That idea, though, could have tricky legal issues that might require a constitutional amendment.

Reach O’Connor at (803) 771-8358.





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