By Dan Hoover STAFF WRITER dchoover@greenvillenews.com
Gov. Mark Sanford made a last-ditch appeal Friday to the state
General Assembly, asking members to use some of the more than $1
billion in revenue growth to grant property tax relief without a
huge percentage increase in the state's sales tax.
With the 2006-07 budget still under negotiation and the June 1
adjournment nearing, Sanford sent letters to the 170 members, asking
them to use $292 million of the approximately $500 million in new
recurring revenue for property tax cuts so "we can correspondingly
decrease the need to increase the sales tax."
Senate and House conferees are grappling with different budget
bills.
House Majority Leader Jim Merrill, R-Daniel Island, said he
hadn't read Sanford's letter but welcomed "anything that spotlights
and highlights the property tax and what we're doing and shows our
good friends in the Senate that we have no intention of backing down
from our commitment."
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The Senate voted May 11 to allow counties to decide by local
referenda on swapping a sales tax increase for cutting school or
county taxes.
Earlier, the House passed a plan that would reduce most taxes on
owner-occupied homes, eliminate the sales tax on groceries and
increase the sales tax on other items to 7 percent from 5 percent.
Sen. Hugh Leatherman, R-Florence, chairman of the Senate Finance
Committee, could not be reached for comment.
Merrill said he is "extremely pleased that the governor now sees
the merits of joining the property tax fray."
"We've been encouraging him to do so for quite a while," Merrill
said. "He was fixated on other stuff, but he realizes how important
it is to South Carolinians."
Sanford had unsuccessfully sought a $400 income tax rebate for
families and, more recently, a temporary gas tax suspension.
The governor told reporters and editors of The Greenville News
that his proposal "would be less harmful to the business community,"
some of whose members are concerned that it would damage their
competitiveness in relation to other states and drive many South
Carolina consumers to untaxed Internet sales.
He hinted that it could be an alternative to his proposed gas tax
suspension, approved by the House, but still facing a hostile
Senate.
"We're saying that, OK, if you don't like the idea of the gas
tax, and clearly the Senate doesn't, how about looking at this," he
said.
Sanford's latest initiative comes against a backdrop of today's
Statehouse rally aimed at pressuring the Republican legislative
majority to include tax relief in the pending budget.
The state Republican Party has issued a call to its members to
turn out for the 10 a.m. rally to stand with Sanford and those
elected Republican officials "who think South Carolinians deserve
tax relief this year."
Sanford, in the interview and in the letter, said the abundance
of new money represents a "unique opportunity" to provide tax relief
and slow a rate of government growth that he said would top 16
percent in the current budget if all the new revenue is spent.
He said the new Board of Economic Advisers projection of an
additional $180 million in new revenue "represent the chance to use
recurring dollars to cut property taxes -- lowering the level of
required sales tax increase in the process -- and at the same time
slow the amount of projected spending from the general fund."
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