By Tim Smith STAFF WRITER tcsmith@greenvillenews.com
COLUMBIA -- Senators on Thursday spent a third day debating --
but not voting on -- the issue of property taxes, likening their
situation to a ride on the Titanic.
Sen. Chip Campsen, an Isle of Palms Republican, compared property
tax legislation to the damaged ocean liner, which sank after hitting
an iceberg.
"And now the passengers are in the water, and it's 28 degrees,
zero degrees in my county," he said, adding that members are so
desperate to keep tax reform alive "that you grab anything floating
by."
But members weren't so desperate Thursday as to attempt a vote.
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Senate President Pro Tem Glenn McConnell said he hopes that will
change next week before the body takes up the budget.
"Unfortunately this is so complex an issue that the senators keep
waiting for this magical formula to come without the discomfort of a
vote," he said. "That isn't going to happen. To get to the finish
line, we have to take some uncomfortable votes."
The Senate
Finance Committee last week passed a tax plan that would reduce
school taxes on cars and owner-occupied homes. But the proposal
lacks a consensus, and senators are searching for an alternative to
the House plan, which would raise the sales tax by two cents on the
dollar and remove most homeowners' property taxes.
Steven
Benjamin, chairman of the Richland County Democratic Party and a
board member of the South Carolina Chamber of Commerce, said the
issue isn't a simple one and that he hopes lawmakers resist the
temptation to settle for a quick, political fix.
"Whatever
our Legislature does has got to protect our school revenues and has
got to protect our pro-business environment in South Carolina," he
said.
"This Legislature has a reputation for doing what's
politically palatable and not always responsible, and I hope they
put the time and effort into a real solution, not a 2006
election-year solution."
Senators have said they want to
grant homeowners some relief, but without drawing the ire of
business or ignoring the poor. A stumbling block has been how to
distribute the money back to school districts, especially in view of
an ongoing court case challenging the state's school funding system.
The Senate spent Thursday debating a $2.5 billion plan by
Sen. Larry Grooms of Berkeley County that would eliminate school
taxes on owner-occupied homes and reduce school taxes on cars and
other property.
To pay for the school taxes, the plan would
increase the sales tax by two cents on the dollar and double or
increase taxes on alcohol and cigarettes. It also would eliminate a
number of sales tax exemptions, increase the sales tax cap on cars
from $300 to $900, double the deed recording fees and set a
statewide school tax rate for property other than owner-occupied
homes.
Groom's proposal also would limit homeowners' tax
bills to 2 percent of their household income.
The plan would
benefit homeowners, car owners and business owners, Grooms
explained, by swapping school taxes mostly for consumption taxes.
Several senators embraced the proposal, with some asking to
have their names added as co-sponsors.
"I'm encouraged we
finally have some direction," said Sen. Danny Verdin, a Laurens
Republican.
But the complexity of the proposal drew concern
among others.
Sen. David Thomas, a Greenville County
Republican, argued that the measure would split property tax
reformers who might balk at some of the increases or not understand
them.
"It creates more confusion," he said. "You are
splintering our support."
Some advised Grooms to use the
weekend to tweak his proposal, to which he replied, "I don't think
the Easter Bunny is going to bring me a better plan."
Other
plans wait in the wings, McConnell said, including one that revises
the House plan and another that gives counties an option to
participate.
But he said if debate drags on after the
budget, passage of any plan would become "iffy."
Wendy
Brawley, a Columbia business owner and school board member, said she
likes parts of each of the Senate plans debated thus far but isn't
sold yet on any package. She said she hopes lawmakers won't rush
into anything that will damage schools or business.
"I'm a
little leery of anything that restricts the ability of local school
districts and local governing bodies to accommodate the needs of
local children in schools and pushes that responsibility to the
state," she said.
"We all know there are issues now about
the equity funding at the state level. And I don't know we're going
to make those issues better by giving them total autonomy in terms
of the entire state's ability to fund schools at the local level. I
think that's probably a mistake." |