Posted on Tue, May. 09, 2006

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Senate tax plan now in jeopardy

Democrats add provision that changes funding for school operating costs

By JOHN O’CONNOR

johnoconnor@thestate.com

Senate Democrats threw a monkey wrench into the property tax debate Monday by adding a provision that would require the state to remove school operating costs from all property tax bills prior to July 1, 2009.

The change essentially rewrites the Senate property tax plan — which was on the brink of final passage — and some members, frustrated at the repetitive debate, said the change could derail any chance of tax reform this year.

The Senate adjourned debate Monday just as it was ready to reconsider the plan it approved Thursday evening after weeks of debate. The Senate will resume debate today.

“I didn’t expect this today,” said Sen. Larry Martin, R-Pickens, an opponent of changing school funding through the property tax bill. “I’m not prepared to go through another three weeks of this. I think it’s pretty obvious there is a full-scale effort to kill the bill.”

Sen. Brad Hutto led the charge for state funding of school operations. He proposed the amendment last week — which failed — but found success thanks to second thoughts and the absence of about 10 members during an unusual Monday session.

Hutto said some members changed their minds after realizing the Senate’s plan did not do enough for homeowners.

“The reason we couldn’t (give final approval) is because it doesn’t give any real property tax relief,” Hutto said. “People studied it over the weekend.”

Hutto and supporters are trying to push to undo changes the Senate approved Thursday night, in order to give a plan drafted by Sens. Larry Grooms, R-Berkeley, and Vincent Sheheen, D-Kershaw, one more chance. Versions of that plan would have raised the state sales tax, enacted a statewide property tax and raised a handful of other fees to pay school taxes for all property. There would be no school taxes on owner-occupied homes.

The plan has been proposed — and rejected — five times by the Senate.

Many senators, such as Sen. Jim Ritchie, R-Spartanburg, were still confident tax relief would pass, but Sen. Glenn McConnell said time was getting short and today’s debate was crucial.

Reach O’Connor at (803) 771-8358.