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THURSDAY, FEBRUARY 02, 2006 12:00 AM

Senate Dems issue tax warning

Property tax relief bill tied to funding of school districts

BY JOHN FRANK
The Post and Courier

COLUMBIA - Senate Democrats threatened Wednesday to shelve property tax relief legislation if it doesn't address inequities in how the state funds school districts.

Sen. Brad Hutto, D-Orangeburg, told a Senate panel that Democrats would oppose a constitutional amendment to change the property valuation method without assurances that a second tax relief bill would give poor school districts more money.

That second piece of the package is a proposed House bill, which would eliminate the bulk of property taxes in exchange for a 2-cent sales tax increase. The state would dole out the additional sales tax revenues, and Hutto said he worries some districts would get shortchanged.

"If we only pass reassessment (legislation) we are only locking in the current high tax rates," said Hutto, who added that Democrats support tax relief. "We want to know the formula and get distribution set and then we'll vote for both bills."

Democrats normally hold little sway when it comes to setting legislative priorities. But a constitutional amendment requires a two-thirds majority, meaning 16 senators could kill the bill. Republicans occupy 26 Senate seats, and Democrats hold 20.

"It's our only real trump card in this deal," Hutto said. "That's the strongest position we'll be in as a minority to make sure schools are properly funded in the property tax debate."

Republican leadership in the Senate was quick to reject the Democrats' warning.

"I'm sorry, that ain't going to happen," Sen. Larry Martin, R-Pickens, told Hutto at the meeting. "We are going to get a vote."

Senate leader Glenn McConnell, R-Charleston, said he favors amending the education distribution formulas, especially after they shortchanged Charleston County schools $7.5 million last year. But he pivoted to argue that the two property tax bills are totally separate issues.

"I think it would be an unfortunate strategy on their part to delay meaningful property tax reform because of (disagreements) on another bill," said McConnell, president pro tem.

The Democrats' move signaled the end of the collegial discourse that's dominated the property tax topic.

In both chambers this week, lawmakers drew partisan and geographic lines for the political wrangling that is sure to dominate the debate.

Hutto's argument is the same one House Democrats made unsuccessfully Tuesday in a committee meeting on the tax-swap legislation.

Rep. Gilda Cobb-Hunter, D-Orangeburg, said lawmakers are doing a disservice to constituents if the equity issue isn't addressed in the property tax debate. Yet she was quick to note that House Democrats wouldn't attempt a similar move.

"We are all up for re-election and Democrats don't want to be accused of blocking property tax relief," she said. Senators "are more insulated. They can posture and pontificate all they want."

Senators like Robert Ford, a Charleston Democrat, said they still worry about the fallout.

He said Democrats could lose the upper hand after pushing the issue from the start. Ford said it was Republicans who stood in the way, pointing to Gov. Mark Sanford's veto of a property tax cap in 2004 on the basis it was unconstitutional.

"The Republicans don't want property tax relief to pass. They are just hoping we are crazy enough to stand in front of the train," he said. "I'm voting with them."

Emerson Read of Charleston, who is fighting for the elimination of property taxes, said he isn't concerned about Democrats' grandstanding.

"They've got too much to lose because this is a nonpartisan issue," said Read, chairman of the anti-tax group NoHomeTax.org. "I don't think it will amount to anything."

Reach John Frank at (803) 799-9051 or jbfrank@postandcourier.com.


This article was printed via the web on 2/2/2006 2:06:05 PM . This article
appeared in The Post and Courier and updated online at Charleston.net on Thursday, February 02, 2006.