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.