COLUMBIA, S.C. - State Senate subcommittees
studying ways to cut property taxes discussed Wednesday how to give
home owners relief without shifting the burden to businesses or the
working poor.
Senate President Pro Tem Glenn McConnell said a bill will be
written by year's end that substitutes sales taxes for property
taxes. The package would include increasing the state sales tax by
two or three cents on the dollar, while decreasing sales tax on
food, increasing the sales tax cap on cars and eliminating property
taxes on vehicles. It should protect both renters and businesses, he
said.
"It will be a reform package friendly to all incomes," McConnell
said. He hopes such a package will deflect opposition from lobbyists
and interest groups.
McConnell said he is confident the General Assembly will address
property taxes in the coming legislative session, an election year.
The Senate has been holding property tax hearings across the
state.
Wednesday's audience was filled with people wearing buttons that
read, "Save our Homes Now."
"Retired people are living on fixed incomes. ... Property taxes
are forcing them to sell," said Becky Fagg, a Lexington County
resident and chairwoman of the Property Tax Network of South
Carolina. "We're going to push buttons as hard as we can."
Sens. Vincent Sheheen, D-Camden, and David Thomas, R-Greenville,
laid out separate property tax reform bills they are sponsoring.
Among other differences, Sheheen's bill would increase sales tax by
2 cents, while Thomas' would increase sales tax by 3 cents.
Thomas said raising the sales tax ensures tourists and illegal
aliens help foot the bill for public services.
McConnell said both of those bills have flaws. He directed Senate
staff to come up with numbers on a variety of different options,
which senators will discuss at their next property tax meeting Oct.
25.
Senators said they want to write a bill that prevents government
entities from raising taxes in the future and gobbling up the
intended tax relief.
A House committee is also studying property tax reform.
