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Friday, April 14, 2006 - Last Updated: 7:39 AM 

Senators getting sinking feeling about tax debate

With a week left and still no deal, property tax relief appears unlikely

By SEANNA ADCOX
Associated Press

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COLUMBIA - Sen. Chip Campsen compared the property tax debate in the Senate to the sinking of the Titanic.

The Senate's efforts have hit an iceberg, and the Republican from the Isle of Palms said Thursday he is willing to grasp at any plan that happens to float by.

After nearly a year's worth of meetings, the Senate still can't agree on how to give homeowners the property tax relief some are demanding.

Now senators have one more week to make things happen, said Senate President Pro Tem Glenn McConnell, R-Charleston.

After that, the budget will hit the floor and, if debate over the spending plan drags on, passage of a property tax relief bill could become "very iffy," McConnell said.

McConnell's advice is to stop waiting for a plan to magically appear that everyone can agree on.

Senators talked about property taxes all week, but never took a vote. On Thursday, they at least talked about a specific proposal.

Sen. Larry Grooms, R-Bonneau, offered a plan that would eliminate school operating costs from owner-occupied homes and reduce it on other property, including businesses, vehicles and rental units. It also calls for no homeowner to spend more than 2 percent of their household income on property taxes.

Many senators liked the idea but disliked where the $2.4 billion came from.

The most controversial part of the plan would be a statewide tax on all property except owner-occupied homes.

The plan also called for a 2-cent increase in the state sales tax to 7 cents, doubling taxes on alcohol, increasing the cigarette tax to $1 a pack from 7 cents, increasing the sales tax cap on cars and removing some sales tax exemptions.

A similar plan proposed two months ago by Democratic Sens. Brad Hutto of Orangeburg and Vincent Sheheen of Camden was quickly dismissed by Republicans.

Though some senators criticized Grooms' plan as too complicated and impossible to sell to their constituents, others lauded it as at least a valiant effort.

"I'm encouraged we finally have some direction," said Sen. Danny Verdin, R-Laurens. "My hats off to you (Grooms). . We're gelling now."

The debate on Grooms' proposal will resume Tuesday. Several other proposals are waiting should his fail, including one that reverts to the plan approved by the House in February.

Most senators immediately blasted that proposal when the House sent it over, but two months later, "it may have a chance," McConnell said.

The House bill would remove the operating costs of all local government from tax bills on owner-occupied homes, while increasing the state sales tax by 2 cents.