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COLUMBIA -- As lawmakers prepare to return to work and address Gov. Mark Sanford's call for a $205 million tax relief plan, business leaders say the state's tax system is broken and in dire need of fixing.

"It's going to start affecting jobs and the ability of the state to grow," said Hunter Howard, president of the South Carolina Chamber of Commerce.

South Carolina has passed numerous tax changes individually, the latest a swap that reduced taxes on residential property owners while raising the sales tax, they said.

That "was quite punitive to business," said Harris DeLoach, chairman of Sonoco Products and chairman of the South Carolina Chamber of Commerce.

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While large companies that move into the state or expand here can gain some relief through the fee-in-lieu-of-taxes program that cut the tax rate from 10.5 percent to 4 percent, small companies seldom have that option. Also, commercial property is taxed at 6 percent, Howard said.

"The bulk of South Carolina's economy is fueled by small companies, said John Creech, general counsel for the state Chamber.

The business community in the state is facing $250 million more in taxes than before the latest changes, DeLoach said.

Sanford has proposed a tax relief plan that is short on detail. He recommends lawmakers cut $205 million in income taxes but leaves it up to the Legislature to decide whether to reduce individual income taxes, the rates for small business or corporations, or a combination.

Joel Sawyer, a spokesman for Sanford, said the governor's plan would "go a long way" toward addressing business leaders' concerns.

"We would be open to shifting more of the tax relief to small business," he said.

Rep. Dan Cooper, who chairs the House Ways and Means Committee, said Sanford's plan isn't really a plan.

"There's no real detail in that budget that he gave us," he said. "He says, 'Let's do it,' and leaves it up to somebody else to figure that out."

Sawyer said Sanford didn't propose more detail on his tax plan because he is in the process of talking with business leaders and lawmakers about what relief would draw the most consensus and have the biggest impact.

Sen. Larry Martin, a Pickens Republican, said the state needs a comprehensive tax review.

"We definitely need to take a look at it, and a thoughtful look," he said.

Although many have suggested that businesses will pass on higher taxes to customers, "it is very difficult to pass on those taxes," DeLoach said.

The state Chamber's Competitiveness Agenda calls for a comprehensive review of the entire tax system, looking at both taxes and exemptions from taxes, he said.

Increasing South Carolina's dependence on sales taxes means the state is "vulnerable to a bad economy," he said.

Also, the state Chamber is calling for a cap on local government spending -- something DeLoach doesn't personally like but believes is a necessary short-term action.

Sawyer said Sanford favors a cap on local government spending, but only if it is paired with a cap on state spending.

DeLoach and other state businessmen said a study does no good if it sits on a shelf with previous tax studies, and they don't know how to ensure that legislators and the public listen.

"It may take a train wreck to cause this to happen," he said.

That train wreck could be when local government cannot raise enough money to pay salaries or maintain services. It could be when a bad economy slashes sales tax revenues.

He said he thinks it would be difficult to accomplish the study and take action to make the tax system fair and equitable to all parties in a year, but a start needs to be made.

Another issue to address is the deterioration of the road system, he said.

"Some of the roads in our state are in bad condition. That is one issue that businesses look at" when making decisions about sites for new facilities or expansion, he said.

Sonoco Products won't locate a facility in California because of the cost of doing business there, he said.

South Carolina "is not there today. We could get there" if nothing is done to hold down the costs of doing business in the state.

DeLoach said legislators and the executive branch of state government need to come together with business leaders to "set a road map" to help the state reach a major goal -- a higher per-capita income for every citizen.

"It's time to put personal agendas aside," he said.