COLUMBIA, S.C. (AP)
- A property tax relief plan began unraveling on
the Senate floor Tuesday, as both Democrats and
Republicans called it defective.
Senators couldn't even agree on where to start
the debate on the bill that barely passed
committee last week.
The Senate adjourned without deciding whether
to accept the committee plan as the starting point
or revert to a plan the House sent over in
February. Senators made it clear either proposal
would be changed as debate continued.
"I never thought I'd say this because I know it
has problems. ... There are two offers on the
table. If it's 'Deal or No Deal,' we'll take the
House bill," said Senate President Pro Tem Glenn
McConnell, R-Charleston.
Senators sent the committee plan to the floor
last week knowing it lacked broad support. They
want to pass some form of property tax relief
before the budget hits the floor.
The existing Senate plan would raise the state
sales tax by a penny, to 6 cents, and apply the
relief to owner-occupied homes and personal
vehicles, and create what's known as an income
circuit breaker. Under that, homeowners would pay
no more than 5 percent of their household income
on property taxes.
The proposal would cut school operating costs
from vehicles and from homes valued at up to
roughly $180,000, though the exact threshold would
vary by county. That would cut tax bills in half
for more than 90 percent of homes statewide.
"I will say, the Senate plan is vastly better
than the House plan," said Sen. Wes Hayes, R-Rock
Hill. "All that's in (the House bill) for business
is a tax increase. We will see real problems
competing" with neighboring states.
Hayes took the podium to explain the proposal,
which was crafted in his subcommittee, even though
he dislikes it. He voted against it in
subcommittee and committee, preferring a
scaled-down version that increased the state sales
tax by just a half-cent.
Sen. Ralph Anderson, D-Greenville, criticized
the plan Hayes explained as "Robin Hood in
reverse," raising the sales tax on the poor to
benefit richer homeowners.
McConnell blasted it as not giving enough
relief to homeowners in his district, where
property values are skyrocketing. Charleston
County is one of seven counties statewide where
more than half its homes are worth more than
$100,000.
The House plan would remove the city, county
and school operating costs from owner-occupied
homes, leaving only local debt on tax bills. That
would cut the average bill by 85 percent, no
matter how high the home's value. But even a
2-cent sales tax increase leaves the plan out of
balance.
"The House formula is dramatically flawed.
There's virtually nothing in that that works,"
said Sen. Scott Richardson, R-Hilton Head Island,
who created the Senate plan. "There is no perfect
formula that fits 46 counties. The more we knew,
the more difficult it became to do that. ... Let's
start with something, at least at a place that
makes sense."
The Senate will continue the debate Wednesday.
"We're just churning the water today,"
McConnell said after the Senate adjourned.
"There's a feeling we've got to do something but
there's no consensus as to what."