Senate panel would raise car sales tax to boost education funds

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The increased tax on automobile purchases was included in a package aimed at boosting spending on public schools.

The House set the per-pupil spending rate at $1,643, or $558 below the amount called for in the Education Finance Act, in the budget plan it sent to the Senate.

On Thursday, the Senate Finance Committee increased the per-pupil spending rate by $261 over the House figure to $1,904.

The Senate Finance Committee also removed the sales tax exemption on manufacturing machinery, a measure worth $53 million in new taxes. And the committee revoked a 1-cent sales tax break on retail purchases made by people over age 85, adding $5 million in new revenue.

The change in sales taxes on automobiles would raise $93 million, making the total increase in funds for education about $151 million.

Since 1984, one has paid any sales tax on the purchase price of a car that exceeded $6,000. Thursday's action raises that cap to $50,000.

The House-approved budget does not include the sales-tax increase on auto purchases.

House Speaker David Wilkins, R-Greenville, said that while he would not rule out the Senate action, he would not endorse it either.

"We want to make education our top priority, but we've shown by our actions that we are reluctant to raise taxes. Let's let them finish their work and then we'll pass judgment on it," Wilkins said.

But educators were elated that the Senate panel had responded to their calls for more money. On Wednesday, the state's public schools chief called for a tax increase to fully fund the state's Education Finance Act formula.

"While it's not where we want it to be, we are grateful for this increase," said state Superintendent of Education Inez Tenenbaum.

"Our goal remains getting to the $2,201 Base Student Cost set by the Budget and Control Board," she said.