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Article published Apr 21, 2005
Bill capping property tax introduced
COLUMBIA -- A
bill introduced in the state Senate Wednesday is the first step in a process to
eliminate property taxes, supporters say.Introduced by Sen. David Thomas,
R-Greenville, the bill would freeze millage rates for operating expenses after
this year and increase the state sales tax by half a penny in both 2006 and
2008.Beginning in 2006, school districts and local governments would be required
to adjust the millage rate to limit increases in property tax revenue to no more
than 1 percent over the previous year.Money from the increased sales tax would
go into a special account and be redistributed to the school districts and local
governments."This is the first in a series of steps we're going to unveil to
eventually eliminate property taxes," said Sen. John Hawkins, R-Spartanburg, a
co-sponsor of the bill."We rely way too much on property taxes, and it's the
most unfair tax of all. First, we've got to stop the upward spiral, and then go
back and look at ways to eliminate them."Sen. Glenn Reese, D-Boiling Springs,
said the proposal is a "good faith effort" to bring property taxes under
control."If you're not financing them through your mortgage payment, it's almost
impossible to pay them," Reese said.Reese said he did have concerns that raising
the sales tax would have a negative impact for the state's low-income residents.
He also said those who rent would be hurteither way."Renters pay the taxes, but
they have no ownership," he said.Because the bill was introduced so late in the
year, it has virtually no chance of passing in the Senate before the May 1
crossover date to be considered in the House this year.House Speaker Pro Tem
Doug Smith, R-Spartanburg, doesn't believe the bill will be waiting on the House
when it returns next year, either."I'm not optimistic at all that it will pass
out of the Senate," Smith said. "If we ultimately do get something and we don't
like it, we can amend it and send it back. It's something we're going to have to
address because there is a growing momentum for property tax
legislation."Hawkins is hopeful that Gov. Mark Sanford will jump on the
bandwagon and help get the bill through the Legislature."He's been focused on
income taxes, now he needs to shift his focus to property taxes," Hawkins said.
"He needs to use his bully pulpit to encourage people to get behind this
bill."Sanford spokesman Will Folks said the governor would review the bill, but
wasn't making any promises."We'll look at any proposal that lowers the tax
burden on the people of South Carolina," Folks said. "Our focus has been on
tying that to job creation and economic growth. That starts with lowering the
income tax rate, but we'll look at Sen. Thomas' proposal."Robert W. Dalton can
be reached at 562-7274 or bob.dalton@shj.com.