Senate adopts tax cap
Approach varies from House bill
By Kirsten Singleton | Morris News Service
Thursday, February 16, 2006

COLUMBIA - The Senate adopted a proposed constitutional amendment Thursday that would cap property reassessments.

Unlike the House, which passed a "grocery bag" of property tax relief legislation last week, the Senate's approach will be methodical, Senate President Pro Tempore Glenn McConnell said.

"I think all of you are sympathetic," said Mr. McConnell, R-Charleston. "We've got people who are in trouble with their homes."

Sen. Ralph Anderson, D-Greenville, and Sen. Clementa Pickney, D-Ridgeland, voted against the resolution, which passed by a 38-2 vote.

The changes being proposed help the wealthy and ask the poor to pay more, Mr. Pickney said.

"My concern is this is Robin Hood in reverse," he said.

Lawmakers in both chambers have said property tax changes are the main issue of the 2006 session, with legislators facing complaints from homeowners who say that as their property values rise, they are being forced to pay more taxes than they can afford.

The House plan primarily states that homes would not be reassessed until they are sold or undergo a major renovation. Most property taxes would be eliminated on owner-occupied homes in favor of a 2-cent increase in the sales tax, from 5 cents to 7 cents.

Mr. McConnell said the Senate prefers to take each issue one at a time. Consequently, the proposed amendment approved Thursday only addresses reassessment.

The proposal would allow voters to choose whether they want a 15 percent cap on the amount home values can increase over a five-year period. It will be placed on the November ballot if the two chambers can agree.

The Senate is legally barred from proposing any revenue-generating bill, which must begin in the House. But a Senate finance subcommittee is expected to begin discussing the House's plan soon.

Mr. McConnell said taking a piecemeal approach strengthens the Senate's bargaining power when a joint committee of House and Senate members eventually convenes to agree on a single property tax plan.

If the Senate passes its own wide-ranging plan, and the House simply amends its proposal onto the Senate plan, then senators have no justification for arguing the House plan is too broad for a single piece of legislation, Mr. McConnell said.

That was part of the reasoning given for tabling a proposal Thursday intended to bring more equity into school funding.

Sens. Bradley Hutto, D-Orangeburg, and Vince Sheheen, D-Camden, tried unsuccessfully to amend the Senate's reassessment plan, proposing a separate constitutional amendment to eliminate school boards' ability to levy taxes for schools' operating expenses.

From the Friday, February 17, 2006 printed edition of the Augusta Chronicle
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