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GOP candidates for treasurer differ on property tax

Published: Tuesday, April 4, 2006 - 6:00 am


By Dan Hoover
STAFF WRITER
dchoover@greenvillenews.com

Three-fourths of the Republican candidates for state treasurer argued Monday in Greenville for making the office a watchdog for taxpayers but had differing views on property tax relief.

Former House Majority Leader Rick Quinn of Columbia said the state's ever-increasing reliance on an "antiquated" property tax system is an economic development killer that sends prospective companies to competing states with lower rates.

Quinn said he supports an increase in the state's 5 percent sales tax and reductions in the items exempt from it to allow for reducing the sales tax on food.

But Easley developer Jeff Willis said shifting property tax revenues to Columbia through a higher sales tax would devastate local governments, for whom "home rule now is virtually nonexistent.

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Instead, Willis called for tax credits for homeowners.

State Sen. Greg Ryberg of Aiken said he would vote to raise the sales tax to cover elimination of the property tax for school operating funds.

The House and Senate are now considering separate bills to raise the sales tax to pay for eliminating the schools' portion of local property levies.

The fourth candidate, Charleston developer Thomas Ravenel, a surprise late entrant as the filing books were closed last Thursday, did not attend. Deb Sofield, chairman of the county GOP's First Monday Club, said efforts to contact Ravenel were unsuccessful.

Democratic Treasurer Grady Patterson is seeking another term and has no primary opponent.

Primary elections will be June 13 and runoffs, if necessary, June 27.

All three cited what each said was a deteriorating situation with the state employees retirement system.

Quinn said the state faces 30 years' worth of unfunded liabilities because of benefit increases and investment policies. Ryberg spoke of an $8 billion shortfall between assets and liabilities and said, "If we don't fix the plan, the taxpayers are going to have to take up the shortfall."

Willis said the retirement system is "broke and we don't have the money to fund our obligations."

But Mike Sponhour, spokesman for the state Budget and Control Board, said the term "unfunded liability" doesn't accurately portray the situation.

"Add up all assets, how the money's going to grow, all the liabilities you're ever going to have and compare. Our finances are set up to pay down that the liability," he said, although at present, liabilities exceed assets.