Delay likely on tax relief proposals

S.C. taxpayers hoping for a break on their income taxes or property reassessments may have to wait until next year.

The future of four bills in the General Assembly offering major tax cuts or changes now depends on the state Senate.

Several senators said late last week they were interested in at least one of the proposals. But time is growing short in this year’s legislative session, and the Senate’s to-do list is getting longer.

“I think there’s a mood to try to do something on the tax bills,” said Sen. Wes Hayes, R-York. “(But) I doubt if we’ll be able to get all of them through this body.”

The tax-cut proposals before the Senate include:

• Two competing measures, passed by the House, that would limit the amount local governments could increase property values for tax purposes

• A bill sponsored by Sen. David Thomas, R-Greenville, that would raise the sales tax by 2 cents on the dollar and eliminate property taxes on homes and vehicles. Thomas’ proposal would require voter approval in November. The measure likely will be moved on Tuesday to a subcommittee for a public hearing, Thomas said.

• And a bill backed by Gov. Mark Sanford that would cut the state income tax from 7 percent to 4.75 percent over 10 years. The income tax bill also passed the House last week.

Part of the problem is the Senate has other work to do.

Before the legislative session ends in June, senators have to deal with complex issues including tort reform, state government restructuring and the state’s $350 million budget shortfall.

“We have tremendous needs,” said Senate President Pro Tem Glenn McConnell, R-Charleston, who backs the income tax cut and says he supports some change in how properties are reassessed.

Several senators said they have lots of questions they want answered before they make a decision.

Some questions:

• How much should legislators restrict local governments’ ability to raise money for schools, police and other needs?

Thomas’ bill, for example, would eliminate a major source of income for local governments. Under his proposal, local governments only could levy property taxes with voter approval.

• And should the state lock itself into a promise to cut income taxes over 10 years as Sanford asks?

Other senators want proof lowering the income tax won’t require the state to also cut school funding or other services.

“I’m open, but I sure want to see their facts,” said state Sen. Tommy Moore, D-Aiken.

Senators often say House members shove bills through and leave the Senate to make the tough decisions.

That happened with the property tax issue last week, when the House passed two competing bills, one proposed by a Democrat and the other backed by several Republicans.

Under the bill backed by many Democrats, property values for tax purposes couldn’t increase more than 15 percent each reassessment. Under the other, reassessments would happen only when property changes hands.

State Rep. Bobby Harrell, R-Charleston, said House members wanted to force some property tax relief and wanted the Senate to choose how to do it.

Sen. Larry Martin, R-Pickens, said he joked about the dilemma afterward. “I said, ‘We always like multiple choice.’ “

Martin added, “I guess that’s what the Senate is here for, for careful review of some of the bills that pass the House.”

Senators have contributed to their chamber’s jammed calendar as well.

Senators have blocked bills or held up action by filibustering bills they don’t like. During a filibuster, a senator can talk against a bill for hours, preventing senators from moving on to the next item on their agenda.

Sen. Phil Leventis, D-Sumter, earlier this year tried to block a measure that would do away with liquor minibottles. And, last week, McConnell filibustered a bill that would toughen the state’s seat-belt law.

Reach Talhelm at (803) 771-8339 or jtalhelm@thestate.com