COLUMBIA -Senate budget writers Thursday raised the sales tax cap on cars from $300 to $2,500, generating a potential $93 million for public schools next fiscal year.

The current sales tax is 5 percent, so that means under the current law a person buying a $6,000 car in South Carolina pays the same sales tax as a person buying a $50,000 vehicle. The new plan would raise the limit on car purchases to $2,500, forcing people who buy vehicles for $50,000 or less to pay the true sales tax.

The Senate Finance Committee approved increasing the sales tax cap as well as eliminating a tax break on manufacturing equipment. The two changes would bring in $146 million during the 2003-04 budget year. Those increases came as the committee approved a $5.2 billion state budget.

Committee Chairman Hugh Leatherman, R-Florence, hopes the extra money will be enough to keep schools from having to lay off some teachers and increase the number of students per class.

The state Education Department had said schools were $240 million short of necessary funding based on a version of the budget passed by the House.

The House version of the budget gives schools about $1,643 per student. The version approved Thursday raises that to about $1,894.

The move comes a day after teachers rallied at the Statehouse and Education Superintendent Inez Tenenbaum called for tax increases.

The funding is still more than $200 short of the requirement set by state formula, said Sen. Nikki Setzler, D-West Columbia.

He also said that because the tax law changes are in the budget bill, they would not become permanent law and the Education Department would have to ask for the money again next year.

Also Thursday:

The Senate Finance Committee agreed to eliminate a small sales tax break for people 85 and older. They currently pay 4 percent instead of 5 percent. The change would send $5.9 million more to public schools.

The committee rejected several other proposed tax changes.

The budget bill is expected to go before the full Senate in about two weeks.