As you know car tax relief was front and center in last years legislative session. With the help of many of the folks you see here today with me, we were able to pass a Constitutional Amendment which will provide a statewide referendum to cut car taxes next November.

This was key to beginning to address the second highest car taxes in the country and clearly a step in the right direction. But taken by itself it’s just a small step.

That is why we are here today to propose a second step. And we want to make the job of overhauling car taxes in South Carolina a little more viable; the result to South Carolinians a little more valuable…

Last year we stood on this same spot and announced our plans for an across-the-board tax cut on every car and truck in South Carolina.

Many insiders scoffed at us and our proposal. But momentum continued to build and we were able to provide $20 million in Car Tax Relief.

This was a good jump start to our goal of reducing the second highest car tax in America.

But in a $6 billion dollar state budget, and with a $1 billion surplus, last year’s commitment to car tax relief doesn’t really get the motor running.

Today, we are here to propose the Compact for Car Tax Relief, a comprehensive solution to one of the most onerous tax problems we have.

The Compact will work hand in hand with the Constitutional Amendment to cut car taxes in South Carolina on average 70%.

Phased in over five years, and combined with the $20 million already provided, our plan will require only $38 million in new state revenue the first year.

Each year, the state will contribute an average of $58 million in new recurring revenue as car taxes decrease from 10% in the first year to 50% in the final year. With the passage of the car tax referendum, car taxes will be cut 70%.

When it is all said and done, tax relief for South Carolinians will reach a total of $291 million in recurring dollars. And after the fifth year, our plan will cap the state’s commitment to car tax relief and turn over the keys for local governments to drive it the rest of the way…

This Compact does two things, it provides much needed relief from the state back to the families who need it most. Ultimately, it puts the onus back where it should be: on local officials at the local level to keep local taxes low…

After all, car taxes are a local issue. But just like education, when we find ourselves 49^th out of 50 states, we think the state has an obligation to join local governments in a partnership to do what’s right for the people of South Carolina.

That’s what we plan to do. And that’s precisely what we have put on the table.

###