Piecemeal tax relief has made the system worse in South Carolina; wholesale reform is needed

Lawmakers pushing various tax relief schemes have said they will continue their drives next year since it looks as if their measures won't pass this year.

These lawmakers are trying to be responsive to the legions of homeowners and motorists crying for relief from the growing property tax burden.

But they are trying to respond in the same way they have acted before, which has made the problem worse.

Lawmakers and former Gov. David Beasley tried to respond to homeowners in the '90s when they passed Homeowners Property Tax Relief. They voted to give state money to school districts, enough to give each homeowner a $100,000 exemption from property taxes to support schools.

But replacing local revenue with state revenue turned out to be a bad idea. It became a built-in obligation for the state budget that became harder and harder for the General Assembly to meet.

And some lawmakers thought their counties should be getting more of the money, so they reallocated it. Now homeowners in some areas of the state get a much larger exemption than $100,000 while many homeowners in the Upstate get much less.

Lawmakers also listened a few years ago when motorists complained of vehicle property taxes. So they placed a couple of items on the ballot to allow voters to reduce these taxes. Tax-stres-sed voters approved them.

But the loss of revenue left local governments without needed revenue. Many were forced to increase property tax rates, and the money people saved on the vehicle property taxes had to be paid back through their real estate property taxes. Spartanburg County took another route and instituted a $25-per-vehicle fee to make up the lost revenue.

Now lawmakers are looking for another patch to put on a poorly functioning state tax system. So many small tax relief, credit and incentive measures have left the system fragmented, inefficient and unfair. Industrial incentives have shifted the tax burden onto homeowners and small businesses.

Instead of pushing for these relief measures, lawmakers should take a complete look at the whole state tax system and restructure it.

They should revamp the income tax system and the sales and property tax systems to make them less burdensome and more equitable. Give school districts and local governments flexibility and authority to raise their own revenues. Examine where the burden lies and spread it more evenly.

A complete solution is needed, not just another patch.