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State / Region
Friday, May 05, 2006 - Last Updated: 9:36 AM 

Senate approves property tax relief package

By SEANNA ADCOX
Associated Press

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COLUMBIA ? After nearly a year of discussion and three weeks of floor debate, the Senate finally reached consensus Thursday on a property tax relief plan.

The Senate gave second reading to a bill that would give voters the choice county-by-county of substituting increased sales taxes for property taxes. The measure also raises the state sales tax by half a cent, to 5 1/2 cents, to remove county operating costs from tax bills.

The vote at 8:45 p.m. came almost 11 hours after the session started. Determined to reach an agreement Thursday, senators worked through lunch and voted down three motions to adjourn and go home for the weekend.

One big hurdle remains. Opponents question whether the local option provision would require changing the state constitution, and would therefore need two-thirds approval. Senators said they would study the bill over the weekend to figure out what they need to do. The Senate will meet in a special session Monday afternoon to give the bill third reading and return it to the House

"It's time to deal with what we can accomplish and not make it any worse," said Sen. Jim Ritchie, R-Spartanburg, who helped develop the compromise.

Senators zeroed in on the plan late Thursday, after days of voting only to kill proposals. Many of them were only slightly different as Sens. Jake Knotts, R-West Columbia, and Larry Grooms, R-Bonneau, tried time and again to get their plans through.

Grooms said he felt as if he were in the movie "Groundhog Day," in which actor Bill Murray repeats the same day over and over.

The Senate plan would exempt groceries and hotel accommodations from the half-cent sales tax increase.

Revenue from the increase would remove all county operating costs from homes valued at up to $250,000. Owners of homes worth more than that would pay taxes on the difference. On average, county operations account for 27 percent of homeowners' property tax bills.

Voters could choose to increase their local sales tax more to cover school operating costs and other forms of property taxes.

Sen. Greg Ryberg, R-Aiken, criticized the local option plan as a "far cry from the relief citizens saw in the House plan."

The House plan, approved in February, would remove all local governments' operating costs from owner-occupied homes, leaving only local debt.

It would also eliminate the sales tax on groceries. A 2-cent increase in the state sales tax, to 7 cents, would help pay for the plan, estimated to be $116.8 million out of balance in the first year.

Members of the NoHomeTax.org homeowners' group said the Senate plan does not provide real relief. The group has been running radio ads pushing senators to act.

"The South Carolina Senate is a farce," said Emerson Read, a Charleston resident and chairman of NoHomeTax.org. "They've given us nothing."

Becky Fagg, a Lexington County resident, said homeowner groups want the House plan and will insist House members stick to it when the bill goes to conference committee.