COLUMBIA -- A property tax bill sent Tuesday to the Senate floor offers a little something for everyone, its supporters said, including hope that lawmakers will agree to some form of tax relief by the time legislators adjourn in June.
But it won't be easy.
"I think a bill will pass," predicted Sen. Wes Hayes, a Rock Hill Republican who chaired a subcommittee that crafted the compromise approved Tuesday. "I think it will be property tax relief in some form."
But he and others are sure of little else. The plan approved Tuesday barely passed Hayes' subcommittee, 3-2, and passed the full Senate Finance Committee 12-8.
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Some Republicans worried about the lack of any mechanism to keep local governments from raising tax rates afterward, eventually reducing any relief to property owners.
Even the "circuit breaker" part of the proposal, which would limit a homeowner's tax bill to no more than 5 percent of the household's adjusted annual income, does not do enough to help lower-income owners, said Sen. Clementa Pinckney, a Jasper County Democrat.
The proposal offers tax relief in exchange for a 1-cent increase in the sales tax. The $671 million generated by the penny increase would pay for the elimination of most school operating taxes for personal car owners, a reduction in school operating taxes for homeowners whose homes are valued at about $150,000 or less, and a limit on the amount of property taxes homeowners have to pay. School operations make up about 60 percent of homeowner's tax bills.
The House-passed version of property tax relief swaps a 2-cent sales tax increase for the elimination of most property taxes and eliminates the sales tax on food.
Both Hayes and Sen. Hugh Leatherman, the chairman of the Senate Finance Committee, said they favor a sales tax increase of no more than a half penny.
Hayes' committee at first approved a one-half cent tax plan, then changed its mind last week.
Tuesday the panel changed the plan once again after deciding to base its relief on current tax rates, which officials said would reduce the amount of aid that could be offered.
So instead of offering aid to owners of property valued at $300,000 or less, the new plan would offer relief for homes valued at no more than $150,000, Hayes' panel estimated.
Sen. Scott Richardson, a member of Hayes' subcommittee, said the package offers "something for everyone."
But other senators found problems with the bill.
"I don't think we're solving the problem," said Sen. Phil Leventis, a Sumter Democrat. "We're just stirring it around."
Leventis said there will still be disparities in property taxes because counties vary in how many have homes valued at $100,000 or more.
Several Democrats said they see little of value in the plan for "working folks." And they said they are bothered by the sales tax increase on food, especially since the House plan removes that tax. Others voiced concern that most of the cost of the tax-relief package was for car owners, not homeowners.
"It's certainly not perfect," Richardson told other members of the Finance Committee. "But I think it's as close as we're going to get to getting everybody something."
Sen. David Thomas, a Greenville County Republican, said senators may have to debate it for a while before coming to an agreement.
While the proposal could come up for debate as early as Thursday, Thomas said it may not be resolved until after the Senate takes up the budget.
"It could be what we're seeing here is fairly close to what eventually gets passed," he said.
But some wondered if the proposal can survive.
"I'm not sure this will get out of the Senate," Sen. Nikki Setzler, a Lexington County Democrat, told other Finance Committee members.
Sen. Larry Grooms, a Berkeley County Republican, said while he believes some of the bill "stinks" the issue needs to go before the full Senate.
"Let's move on with it," he said