COLUMBIA -- Lawmakers should create an independent tax review commission before enacting any more tax changes, an economic development research group recommended Friday following a year's study of the state's tax system.

But the suggestion did not appear to slow efforts by lawmakers to act on a tax swap. The plan would increase sales taxes by 2 percent to pay for the elimination of at least half of property taxes on homes and motor vehicles, and 4 cents of the 5-cent tax on groceries.

Some lawmakers said they did not object to the idea of a tax study commission but were not in favor of delaying action on property taxes next year so such a panel could be started.

"I think that train may have already left the station," said Sen. Larry Martin, a Pickens Republican who sits on a panel that voted on the tax swap idea this week.

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House Speaker Bobby Harrell of Charleston praised the organization for preparing the study but said he wants to read it before reacting to their proposals. He said the property tax committee he appointed has already examined sales and property taxes as part of the entire tax structure.

"I want to see those recommendations before I really can tell you whether we should slow down the process on property tax relief," he said.

Joel Sawyer, spokesman for Gov. Mark Sanford, who had not yet read the study, praised Palmetto Institute for the report but said some action needs to be taken on the issue of property tax.

"We believe it's time to move forward on property tax relief," Sawyer said.

The Palmetto Institute commissioned the study of the state's tax system as part of the nonprofit's efforts to make the state's economy more competitive. It was conducted by six research economists with Clemson University's Strom Thurmond Institute and the University of South Carolina.

Their report found the state's tax burden is moderate compared to other states but the state's tax structure poses some concerns for the future, including questions about whether sales and income tax revenue will slow down. Higher sales tax rates, for instance, could send more shoppers across borders or onto the Internet, the economists reported.

Darla Moore, chairman of the Palmetto Institute, said the study also shows the state's taxable revenue base is shrinking, the result of changes in income, population and a shift from manufactured goods to services.

"We need to evaluate that seriously," she said.

The tax study commission, as proposed by the Palmetto Institute, would be made up of representatives of government, business, nonprofit and consumer groups.

The panel would evaluate any tax change based on whether the change would generate adequate funds, be fair for all taxpayers and help the state compete in the global economy.

"This is pretty common-sensical stuff," Moore told reporters Friday.

South Carolina's combined state and local tax collections were well below the national average in fiscal year 2002, the study reported. However, its overall tax burden is considered moderate when compared to other states because state and local governments in South Carolina rely heavily on fees and service charges, the study found.

In fact, the state ranked 13th in the nation for such fees in 2002, the most recent year available for state comparisons, the researchers reported.

The highest tax burden in the state as a percent of income, according to the study, falls on those making $22,000 to $35,000 a year.

The report also found that three-quarters of states that have property tax relief programs do so on a means-tested basis.

While the state's tax structure is fairly typical of most states, it differs in favoring retirees in the income tax, offering a "great variety" of exemptions in sales taxes and a limited use of corporate income taxes, the study reported. The state also has been slow to follow national trends in expanding sales tax to cover services, adjusting for changes in federal estate taxes and exempting food from the sales tax, researchers said.

The study's authors suggested the state can raise revenue without touching tax rates by indexing excise taxes for inflation, revising the $300 cap on sales taxes for cars and reducing the number of sales tax exemptions, all potent political issues.

Moore said the Institute isn't picking a side in the tax swap debate and won't favor any particular tax change proposal.

"What we will keep saying over and over is that we need to run these proposals through this process," she said of a tax panel.

Joel Smith, dean of the Moore School of Business at USC and a member of the Palmetto Institute board, said the tax study is not a prediction of doom.

"What we're trying to do is suggest a structure and process that would allow us to avoid a fiscal crisis," he said.