Rep. Rick Quinn, R-Columbia, has filed a bill that would raise the sales tax from 5 percent to 7 percent and use the extra revenue to wipe out the portion of local property taxes residents pay for school operating costs. Schools would be funded by the state, with a dollar figure sent to each school district based on student counts.
Quinn, the House majority representative, said the plan is a more equitable way of funding schools statewide. While the state already sends school districts money for each student, wealthier counties can boost that amount using their high property tax bases while poorer counties lack those extra dollars.
"We're trying to do a better job with education so we're not pitting property owners against our children's education," Quinn said Tuesday.
The proposal also would lean on tourist dollars for school funding, instead of relying only on residents, he said.
Quinn will answer questions about his plan, a joint proposal with state Rep. Vincent Sheheen, D-Kershaw, at Thursday's meetings. The two have collected 26 co-sponsors for the bill, introduced at the end of the 2003 session but not discussed.
The bill has changed as proponents have met with communities throughout the state, Quinn said, and he will be open to suggestions from Beaufort County residents Thursday.
"We're not trying to force a bill without a consensus," he said. "We're trying to offer a debate on a better way of funding government."
Gov. Mark Sanford has offered a competing bill to overhaul the tax structure, although the governor's plan does not eliminate school property taxes. Instead, Sanford's plan would raise the cigarette tax from 7 cents to 68 cents a pack and use revenues to lower the income tax from 7 percent to 5.9 percent.
Quinn's bill would lower the income tax from 7 percent to 6 percent and eliminate vehicle property taxes.
Among Quinn's supporters is state Rep. Bill Herbkersman, R-Bluffton. While not listed as a co-sponsor, Herbkersman said he supports the initial version of Quinn's bill, but he expects it to change before it is presented to the full House of Representatives.
"I supported the fact that he was trying to be aggressive about changing the archaic tax code," Herbkersman said.
The tax system is archaic, Herbkersman said, in part because illegal immigrants often do not pay income taxes but are using public schools. Raising the sales tax would tax people who are evading income taxes.
The Bluffton legislator said he also supports phasing out local property taxes levied for schools, a move that could prevent people from losing their land because of rising tax bills.
But Herbkersman said he would not support Quinn's bill if it means Beaufort County would pay more in taxes to the state than it receives for schools.
Southern Beaufort County's other two state legislators say they are skeptical of Quinn's proposal, which has changed since he first filed it last summer.
Rep. JoAnne Gilham, R-Hilton Head Island, and Sen. Scott Richardson, R-Hilton Head Island, said they did not oppose the bill, but said they need to see more details before taking a position.
Richardson said he already has pledged his support for the governor's plan. As far as Quinn's plan, Richardson said he opposes a provision that would prevent counties from charging local option sales taxes. Beaufort County levied a temporary 1 percent sales tax to help pay for widening S.C. 170 from the city of Beaufort to the Beaufort-Jasper Academy for Career Excellence.
Richardson said he also worries about raising the sales tax, because it would restrict local governments' abilities to add other local taxes, such as accommodations taxes, on overnight lodging.
Gilham said she would like to see property taxes reduced, but she is not yet sold on Quinn's proposal.
"Any kind of sales tax increase does put a real burden on those who can't stand any more increases," she said.
But legislators agree the bill will be a topic of discussion when the General Assembly reconvenes in January.
"We need to know how it will affect us so we can recommend changes or get behind it and support it," Herbkersman said.