By Tim Smith CAPITAL BUREAU tcsmith@greenvillenews.com
COLUMBIA -- Voters could decide in November whether counties have
the option of swapping a sales tax increase for a reduction in
school or county taxes under a plan approved Tuesday by the Senate.
The plan must still be approved by the House and Gov. Mark
Sanford. Neither was a certainty Tuesday.
The House passed its own, very different plan in February. Its
leaders signaled last week that the Senate plan passed then would
likely not be enough for House members.
A spokesman for Sanford said earlier Tuesday the governor wants
any tax-relief plan to be revenue neutral, offer comprehensive
reform and not put businesses at a competitive disadvantage.
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The House plan would reduce most taxes for owners of
owner-occupied homes, eliminate the sales tax on groceries and
increase the sales tax on other items by two cents per dollar.
If the House votes not to accept the Senate plan, as many
senators expect, a negotiating committee will be appointed with
members from each body to try and reach a compromise.
The plan approved by the Senate on Tuesday was a scaled-back
version of legislation it passed in the last week.
Fillibusters on Tuesday stalled progress on other plans, and
leaders concluded the only plan that could pass would be a simple
version of local option, senators said afterward.
The plan is scheduled to receive a perfunctory final reading
Thursday before going to the House.
Sen. David Thomas, a Greenville County Republican, said he
believes Greenville County voters will choose to use the plan if the
Legislature adopts it.
"This was a huge breakthrough," he said of Tuesday's vote.
But Sen. Larry Grooms, a Berkeley Republican who had pushed to
include school funding equity in the plan, voted against the final
bill and called it "horrible."
He said only counties that have lots of tourist dollars or
wealthy homes will benefit. And he said he doesn't believe many
counties will choose to try the tax swap.
"We've really done nothing here," he said.
The Senate on Monday had approved a provision that would have
removed all school operating taxes statewide by June 30, 2009,
though it did not detail how the funds would be replaced.
It had previously approved proposals to remove county operating
taxes for most homeowners in exchange for a one-half cent increase
in the sales tax and to give each county the option of going further
with tax relief.
When the required constitutional amendment legislation came up
Tuesday, however, it became clear supporters didn't have the
required two-thirds vote. Sen. Phil Leventis, a Sumter Democrat,
filibustered, causing consideration of the legislation to be
withdrawn.
At that point, Grooms, who had tried six times previously to pass
a tax plan with school funding equity, filibustered, hoping
supporters could win enough converts as he spoke. But he said it had
the opposite effect, and it became clear his plan wouldn't pass.
During lengthy recesses Tuesday, senators met behind closed doors
to try and work out a compromise.
Senate President Pro Tem Glenn McConnell said the simple local
option plan became the last hope of getting the numbers of votes
needed for a constitutional amendment.
"It was obvious by mid-day today that no plan had a 60 percent or
two-thirds vote to go forward," he said. "The Senate was treading
water."
Rather than end the session with nothing, senators agreed
overwhelmingly to support the local option.
They were quick to praise it afterward.
Senate Majority Leader Harvey Peeler called the vote proof that
"a miracle can happen."
Sen. John Land, leader of the House Democrats, called it a
"beautiful plan."
Even Sen. Jake Knotts, a West Columbia Republican who had pushed
versions of the House plan, approved.
"It was the only thing we could get out of the Senate," he said.
"It's not the prettiest baby in the nursery, but it's a baby."
But Grooms derided the compromise as a "political scapegoat,"
something that would allow senators to say they voted for tax
relief.
He predicted House and Senate negotiators will be unable to agree
on a plan, leaving taxpayers without relief and lawmakers in both
chambers pointing fingers at one another.
McConnell said negotiators still can work out a plan both bodies
will approve. While not a comprehensive plan, he said what the
Senate passed Tuesday is supported by a lopsided vote.
"Is it the best way, the most comprehensive way? No," he said.
"This keeps it alive. It gives choices, and it gives the public an
opportunity to speak."
He said if the Legislature adopts the local option plan, voters
can tell lawmakers in November if that is what they want. If they
reject it, he said, lawmakers can pursue more comprehensive reform
next year.
"We passed the decision to the public," he said. |