COLUMBIA - Horry County schools would be in line for more state money, and Georgetown less, under a Senate proposal to freeze property values on owner-occupied homes unless the property is sold.

The bill is separate from one filed in the House on Tuesday that would impose 2 more percentage points to the state sales tax and use the 7-cent tax to replace property tax on owner-occupied homes.

The figures on what is called the index of taxpaying ability were presented to a Senate subcommittee Tuesday by the S.C. School Boards Association. The index is based on property values, population and other factors.

The figures show that state support for Horry schools would rise from 48 percent of their budget to 55 percent.

At the same time, Georgetown County schools would drop from 55 percent state support to 52 percent.

That is an example of the shift that would occur under the plan to hold property values at the 2004 level, school boards association lobbyist Scott Price said.

Districts with higher property values and rapidly rising values, such as those along the coast, would increase their index.

Poorer districts would take the biggest hits.

That's because the school funding pie would not grow much in size but its slices would change shape, Price said.

McCormick County, one of the state's poorest, is an example of how the shift would work. Its funding would drop from 63 percent to 55 percent.

Marion 7, the school district adjacent to Horry County, would drop in support from 88 percent to 87 percent.

And Williamsburg County, also one of the state's poorest, would drop from 84 percent to 83 percent.

Senate subcommittee members were concerned about the figures and said maybe it is time to revise the law on the index of taxpaying ability.

But subcommittee Chairman Larry Martin, R-Pickens, said it isn't likely the panel can solve that issue when it meets again Thursday morning, intending to finalize a bill.

Maybe the committee should not be in such a rush with so many questions still unanswered, said Sen. Brad Hutto, D-Orangeburg.

The S.C. Chamber of Commerce says the state has a good property tax system with problems only in pockets, said lobbyist Otis Rawl.

Business pays about 43 percent of all state taxes now, but the organization thinks that figure will go up if taxes are frozen on owner-occupied property, Rawl said.

The counties with the least amount of business to tax will have to raise taxes to get the same amount of money, and that will make them less competitive and even poorer, Rawl said.

Sen. Chip Campsen, R-Isle of Palms, said the chamber supports programs that let businesses have what is called a fee in lieu of taxes and that is also a tax shift.

Rawl said the state could lose 84,000 jobs because of the change, but Martin said job loss has more to do with international trade policy than state tax policy.

Some people's taxes would go up because of the shift, said Bob Croom, lobbyist for the S.C. Association of Counties.

That is because of local differences in property values and millage rates, he said.

But if the sales tax swap is passed, that would provide relief for most property owners, he said.

"Unfortunately there are winners and losers" no matter how the change is made, Martin said.

Croom also said the change would take extra time and money for counties to calculate and implement.

But Campsen said, "This bill isn't about reducing the workload for counties."

Taxpayer organization members who support the changes said opponents such as business groups should support the bill because they could lose their sales tax exemptions next.

The public does not like all the exemptions, which if removed could bring in $1.3 billion more money that could be used for schools or tax relief, said Don Bowen.

Bowen is a member of No Home Tax, a coalition of several taxpayer groups that is supporting the proposed changes. Martin said he wants the subcommittee to make decisions Thursday so the bill can go forward.

The proposal also requires a constitutional change to be approved by voters in November.