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Article published Oct 19, 2004
Property tax isn't popular

Alexander Morrison
Staff Writer


Neither state Sen. John Hawkins, R-Spartanburg, nor his Democratic challenger, Leonardo Ortiz, likes the property tax man.The question is who hates him more and who hated him first.Last year Hawkins co-sponsored legislation to eliminate property taxes on homes and cars by increasing the state sales tax by 2 cents per dollar. He said the sales tax was a fairer system of taxation because property tax can be burdensome for the elderly and poor who own their homes."When you own your home, you really don't own your home. You have to rent it from the state," said the first-term Republican incumbent. Hawkins explained that government should do everything it can to make it easier for people to own property.His proposal died in the Senate, due in part to what he considers a lack of support from Republican leadership. He pledges to try again if re-elected.Ortiz, also puts tax reform near the top of his agenda in his bid for the seat, which comes with a $10,400 annual salary. He maintains he has been pushing the idea since 1996 when he last ran for state office. An opinion article that he wrote found in the Herald Journal archives confirms this, though the article provided no details of his plan.Ortiz said Hawkins and Republicans are "trying to steal the wind from my sails" on the property tax issue.Nevertheless, there are major differences in the two men's plans.Ortiz maintains that hiking the sales tax two cents on the dollar would not create enough revenue to totally do away with property taxes. Instead, Ortiz would use money from the sales tax hike to nix all property taxes on vehicles and use the leftover money to axe sales tax on groceries and medicine. Property taxes on homes and businesses would remain, though Ortiz said he has several proposals that would lower them.The state Budget and Control Board Office of Research and Statistics projects property taxes on homes and motor vehicles to generate about the same amount of revenue in the coming years as would a two-cent sales tax increase. The office expects home and car property taxes to raise $1.1 billion in 2005, while it says the sales tax hike would generate just over $1 billion.Central to Ortiz's campaign is a jobs plan that centers on building an ethanol plant in Spartanburg County, instituting reforms that make prisons less costly and legalizing alcohol sales on Sunday and video poker.Ethanol would lessen the area's dependence on foreign oil and create jobs in farming and trucking, Ortiz said. Video poker and Sunday alcohol sales also would create more revenue for the local economy and generate more tax dollars.Hawkins has blasted Ortiz for his support of video poker, which was banned in 2000."It was destroying neighborhoods and destroying families," Hawkins said. "I was glad to see it go."Hawkins points to the $100 million in road improvements he has helped bring to Spartanburg's West side as one of his proudest accomplishments and says it is evidence he is focused on the region's economic needs. Hawkins said every arterial in the area has been improved and the wider roads have eased congestion. Good roadways, he said, were a key to economic growth.Both men say they are in favor of raising the state's funding for schools, though Hawkins places it higher on his list of priorities than Ortiz. Ortiz places law enforcement near the top of his agenda.Alexander Morrison can be reached at 562-7215 or alex.morrison@shj.com.