Senators can't agree on property tax plan
By SEANNA ADCOX,

(Published April 12‚ 2006)

COLUMBIA, S.C. (AP) - Senate leader Glenn McConnell says fellow senators need to quit talking about property taxes and vote.

The Senate adjourned Wednesday after making no progress on a proposal to give homeowners property tax relief by raising the state sales tax.

Most senators want to pass some form of relief but can't agree on how to do it, even though some of them have tossed around ideas since last year.

A Senate committee passed out a bill last week, knowing it lacked support, just to send something to the floor. They never got to that proposal or any other Wednesday, instead talking generally about property taxes and education funding.

"People would rather talk than vote," McConnell, the Senate president pro tem, said after adjournment. "People are still looking for alternatives and plans."

Senators must take a stand on the issue and cast some difficult votes because nothing will get done if they keep "treading water and thinking a magical solution will appear," McConnell said.

McConnell has pushed the issue because homeowners in his Charleston area district face skyrocketing property values. Homeowners in other pockets across the state also have demanded property tax relief following reassessment, though South Carolina property taxes do not rank high overall.

The state ranks in the middle nationwide for how much of their income residents spend on property taxes, according to the U.S. Commerce Department.

The South Carolina House passed a plan in February that would cut the tax bills on owner-occupied homes by 85 percent and increase the state sales tax by 2 cents, to 7 cents. Senators immediately blasted the plan as unbalanced and bad for businesses, but they haven't been able to reach consensus on their own.

All House members face re-election this November. They passed their plan well before the March 30 filing deadline for running for office. Senators aren't elected this year.

Still, the Senate remains dedicated to the issue, McConnell said.

"I will not be satisfied until the Senate takes it up and deals with it," he said.

Sen. Larry Grooms, R-Bonneau, said he will propose a plan Thursday to remove school operating costs from all property tax bills, including on businesses, vehicles and rental property. His proposal would raise the necessary $2.4 billion through a combination of tax increases, including a 2-cent increase in the state sales tax, eliminating some sales tax exemptions, doubling the taxes on alcohol, and increasing the cigarette tax to $1 a pack from 7 cents.

The idea, though less specific, previously died in subcommittee.

But McConnell said introducing it on the floor will spur action.

"His amendment will make the rubber meet the road," McConnell said.

Copyright © 2006 The Herald, Rock Hill, South Carolina