COLUMBIA, S.C. - A House budget subcommittee approved a bill that would lock property values on homes as a way of clamping down on regular increases in tax bills.

The legislation, now headed to the full House Ways and Means Committee, covers owner-occupied homes and caps tax rates at purchase prices.

For instance, if someone buys a home for $100,000 that's what the home is worth on tax rolls, said Rep. Ronny Townsend, the bill's chief sponsor. If the homeowner sells the place in 10 years for $200,000, that's the value that would be used on tax rolls.

If a homeowner adds a $30,000 addition, that extra value would be added to the tax value.

"It's an effort to let people continue to live in a community they want to live in without being taxed out of the area" because it has become popular and real estate values have soared, said Townsend, R-Anderson.

A Board of Economic Advisors estimate said the legislation would result in a tax shift of about $169 million at the end of five years to other types of property, such as commercial, rental, business and manufacturing property.

The South Carolina Association of Counties warned that the legislation may be unconstitutional because it treats taxpayers differently and doesn't follow a state Constitution requirement that property be taxed at a fixed percentage of its actual or fair market value.

The legislation could be on the House floor for debate by the end of the month.