Beaufort County House members were split along party lines on the vote, but even one of the Republican members of the delegation has reservations about approving the plan, which begs the questions: Why did Rep. Richard Chalk vote for it?
The plan would put two property tax questions on the ballot in November, change the state's property tax system and limit government spending. The measures would cut most property taxes from owner-occupied homes and eliminate the sales tax on groceries by increasing the state sales tax from 5 cents to 7 cents.
The plan also would freeze property values and reassess only when property is sold or improved.
A major change last week also threw the plan out of financial balance and would cost the state about $117 million, but no one mentioned a source of funding for the shortfall.
The average taxpayer might see property taxes cut in half, but the proposed 2-cent sales tax increase is a regressive tax that would affect the poor the most.
A sales tax increase would cost the less affluent and the poor a disproportionate share of their income -- even with elimination of the tax on food. Those who have the least will pay the greatest percentage of income. Property owners also will pay the sales tax, but a reduction in property taxes also might affect the income tax they pay.
Property owners might need tax relief, but the state should maintain a three-tiered plan that doesn't concentrate all its eggs in one basket. And lawmakers must be honest about who it would help and who it will hurt.
Substituting a sales tax for an owner-occupied home to finance local government and school operations gives the greatest percentage relief to the people who live in upscale and affluent neighborhoods.
As the Senate takes up discussion, members should keep in mind that it takes more than hocus-pocus to create an equitable tax law.
The goal of helping longtime property owners and those on fixed incomes or in the lower-income bracket to keep their homes is noble.
An idea that hasn't gotten much traction in the General Assembly this year is to increase and extend the exemption -- that now goes only to the elderly -- to all property owners. Those who live on fixed incomes and those who subsist on low incomes would get more relief, but so would those who make more money. Exempt the first $100,000 or more of property value from taxation. This would help all, but especially those with low incomes.
Lawmakers could provide a lasting service by not just examining property tax relief but by scrutinizing overall tax reform in South Carolina. Examining the sales tax, tax exemptions, property tax and income tax through a comprehensive effort could do a lot to provide the answers property owners seek.