This is a printer friendly version of an article from
www.goupstate.com
To print this article open the file menu and choose
Print.
Back
Article published Feb 17, 2005
Bill would raise sales tax to fund education
Robert W. Dalton
Staff
Writer
COLUMBIA -- State Rep. Bob Walker introduced a bill on
Wednesday to eliminate property taxes and dramatically change the way South
Carolina funds public education.Walker's proposal would raise the state sales
tax from 5 cents to 7.5 cents and would increase the maximum sales tax on a new
vehicle from $300 to $1,000.The money would go into a trust fund and then would
be distributed to schools to fully fund the base-student cost. If the money
raised by the increased sales tax didn't provide sufficient money, the
difference would come from the general fund rather than through property taxes,
Walker said.Walker, a Landrum Republican, said the change was necessary for two
reasons."First, school people say we're not fully funding education, so let's
take it over and fully fund it," Walker said. "Second, we're killing the
taxpayers with property taxes. They never own their own home."If passed,
Walker's plan would take effect July 1, 2006.Beginning in 2007, school districts
that have taxing authority could not levy any taxes for school operations. They
could still levy taxes to cover bonded indebtedness or to make payments on
lease-purchase agreements or for construction projects.Walker said his bill
isn't perfect, but that it's a good place to start the discussion on property
tax relief.House Speaker Pro Tem Doug Smith, R-Spartanburg, called Walker's
proposal an "interesting idea.""I give Bob great credit for pushing this idea,"
Smith said. "There's no doubt that there is a great hue and cry over property
taxes."What I want to continue to remind everyone, though, is that property tax
is not a tax that is collected or spent by the state."Will Folks, a spokesman
for Gov. Mark Sanford, said Walker's bill would get a thorough review."We're
open to any proposal that would help bring jobs and capital investment to South
Carolina," Folks said. "That's why the governor has pushed income tax relief so
aggressively. It would have a material impact on increasing capital investment
and creating jobs."The House earlier this year passed Sanford's proposal, which
would lower the state's top income tax from 7 percent to 4.75 percent.Walker
said his bill would be more of an inducement."Talk about an economic development
tool, this would free up corporations that are already here and entice others to
come," Walker said. "It's more of an enticement than the income tax ever had a
chance to be."Robert W. Dalton can be reached at 562-7274 or
bob.dalton@shj.com.