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State / Region
Monday, May 08, 2006 - Last Updated: 6:49 AM 

House might demand greater tax relief

Associated Press

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COLUMBIA ? Some state representatives say that while they are glad the Senate has passed a bill to reduce property taxes, the measure may fall short in the House because it's not enough.

"The House will want more," Speaker Bobby Harrell, R-Charleston, said.

The Senate has approved a plan to cut that part of property taxes on owner-occupied homes valued at less than $180,000 that pays for county operations.

The plan would be paid for with a half-percent increase in sales taxes in counties where voters approve it.

The House, on the other hand, passed a bill to cut most taxes from owner-occupied homes and eliminate the state sales tax on groceries. To pay for those cuts, the sales tax on other items would be increased by two cents on the dollar.

If the Senate gives final approval to its plan today, differences between the two plans will have to be worked out by a panel of House and Senate negotiators.

"The key to the debate now is whether the Senate conferees will be able to iron out a plan that they can sell the Senate," said state Sen. Larry Martin, R-Pickens.

But Rep. Adam Taylor, R-Laurens predicted the House would not agree.

"I still think our plan is a workable plan," he said.

The differences could hold up the state budget, as well. The House included its plan to cut property taxes in its $6.3 billion spending plan.

The Senate budget, which spends $200 million more, doesn't include property tax cuts.

House Majority Leader Jim Merrill said last week he thought some House Republicans would be willing to leave Columbia when the session ends next month without passing a budget if a property tax agreement cannot be reached.

"They will be tied together," Ways and Means Chairman Dan Cooper, R-Piedmont said.