Senate debate to
revisit House property tax planLawmakers might soon reach deal, will consider other
proposals todayBy JOHN
O’CONNORjohnoconnor@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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