Posted on Wed, Feb. 16, 2005


Legislation would eliminate property tax


Associated Press

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.





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