Legislation would
eliminate property tax
JENNIFER
HOLLAND Associated
Press
COLUMBIA, S.C. - South Carolina needs to
change the way it pays for public education before it can give
property owners tax relief, lawmakers say.
Rep. Bob Walker says he has a plan to do both with a bill
introduced Wednesday. The Landrum Republican wants to raise the
state's sales tax 2.5 cents and eliminate all property taxes
collected for schools.
Walker said he wants to put all the money generated from a 7.5
cents sales tax into an education trust fund that would be
distributed to schools based on base student cost.
That means the state would pay 100 percent of school funding and
take the burden off counties and municipalities, which have been
forced to raise property taxes over the years to deal with funding
shortfalls, Walker said.
"To me, we weren't doing our job in Columbia. We kept putting it
on the back of the local tax payer," he said.
Sen. Vincent Sheheen has introduced similar legislation to
increase the sales tax and reduce the statewide property tax rate.
One bill would also give a tax break on grocery sales.
But the Camden Democrat said the state has to get serious about
changing the way it pays for education before it can help property
owners.
"The two are linked together," he said.
Walker said he knows his bill is not perfect, he just wants to
provoke a discussion about the issue.
Republicans and Democrats have proposed legislation to bring
different kinds of tax relief. But the Republican-controlled House
has pushed through Gov. Mark Sanford's favored bill to reduce the
state's income tax.
"We said all along we are open to looking at any proposals that
have a positive impact in job growth, expand capital investments and
stimulate our state's underlying economic climate," Sanford's
spokesman Will Folks said.
Walker said property owners need the most help.
"My constituents tell me we've got to do something about property
tax," he said.
Walker said his proposal is the best way to promote economic
development across the state because it gives a tax break to
commercial property as well as residential.
John Ruoff, research director for the consumer advocacy group
South Carolina Fair Share, was skeptical of Walker's plan.
"Sales tax is a very regressive tax paid more by lower income
folks," said Ruoff, who questioned whether the sales tax would
generate enough to cover the state's needs.
"It's much less predictable than property tax. It puts your
funding at a greater level of risk," he said.
Ruoff said the state is better off relying on its current mix of
local, state and federal money for education. |