Florence School District 4 Superintendent Charles Gadsden said the Senate needs to discuss a way to continue to fund education, particularly when it comes to the rural counties.
"There are critical issues that need to be discussed," Gadsden said. "At the same time, there needs to be some relief for homeowners as well."
The property-tax reform proposal came about after some property owners complained to legislators about the increasing property tax bills they say will force them out of their homes if it continues.
The Senate Judiciary and Finance Property Tax Reform Subcommittees are looking at two bills that would raise the sales tax to lower property taxes. One bill would raise the sales tax by 3 cents but not change sales tax exemptions. The other would raise the sales tax by 2 cents, eliminate some sales tax exemptions and raise the sales tax cap on cars and trucks from $300 to $1,000.
Sen. Kent Williams, D-Marion, a member of the judiciary committee studying the issue, said there will not be a tax on food, but the committee members are looking at placing an additional tax on cigarettes as a source of funding.
"I think we need to put everything on the table and be mindful of our businesses and industries," he said. "We don't want to discourage businesses from coming in, and we don't want to take money away that could hurt us."
Williams said people should be able to pay taxes based on their ability to pay.
"It seems the poorer you are, the more you have to pay," he said.
South Carolina School Boards Association Executive Director Paul Krohne released a statement raising concerns on whether the schools will have any say in the property tax proposal.
"Our chief concern is this proposal represents a significant step towards a state takeover of our public schools by eliminating the ability of local communities to set the course for their schools," he said.
Krohne said if the state is allowed to have absolute control over spending, the parents, students and teachers must be prepared to give up magnet programs, SAT preparation courses and all other programs that districts provide.
Williams said he is in favor of giving the local governing bodies the choice.
"I just want it to be fair and equitable for all citizens," he said.
SCSBA General Counsel Scott Price said everyone should be so concerned about property taxes. He said he doesn't think it is good policy to switch from property taxes, which are stable, to sales taxes, which are not.
"We have some concerns about doing away with the property taxes and the loss of local input," he said. "In essence, it would be a state takeover of our schools."
Marion School District 7 Superintendent Everette Dean also said he is apprehensive about making the switch to sales tax because the use of the money will probably be dictated by the state government.
"The question is how they will divide the money up," he said. "I think this will impact our lives a great deal."
Florence School District 1 Interim Superintendent Larry Jackson said using the sales tax is not a good means of funding public education.
"We're looking at what revenue streams are available and how stable" they are, Jackson said.
Williams said he hopes the committee will have property tax reform legislation drafted by Thanksgiving to be ready for a vote next year.
The Senate Judiciary and Finance Property Tax Reform Subcommittees will meet at 1 p.m. Monday to review drafts of the proposal.
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