Property taxes can be abolished if we can get beyond the same old rhetoric

e-mail this story discuss this issue in our forums Guest column • Cort Flint: County Council needs to pitch in on local projects (04/11/04) • Gary B. Melton: Communities must resolve to keep our children safe (04/11/04) • Thomas Ravenel: Here's how to cut $200 billion in federal spending (04/09/04) • Paul A. Barra: Vouchers will save good students from bad schools (04/07/04) • George Fletcher: Let's support the Braves in their last season here (04/06/04) More details Sen. David L. Thomas, R-Fountain Inn, is an 18-year veteran of the South Carolina Senate and is chairman of the Senate Banking and Insurance Committee. He can be reached at sbi@scsenate.org.

In order to eliminate 91 percent of property taxes on owner-occupied residences and private passenger vehicles and motorcycles, a 2 percent sales tax increase would be necessary. The 91 percent that would be eliminated is for local school systems, municipal, county and special purpose districts (SPD) operating budgets, which would be funded by the 2 percent sales tax increase. The amount you pay on bonds for municipal and county projects would still be payable, but is only about 9 percent of your total tax bill.

Homeowner property taxes have been spiraling out of control! It is not unusual to see cases where taxes double, triple or quadruple from one five-year assessment to another, putting homes in jeopardy for those on limited incomes — who in many cases are our elderly citizens.

South Carolina's vehicle property taxes are among the highest in the nation. Since there are 3.2 million registered vehicles in our state, the elimination of automobile property taxes will benefit virtually all South Carolinians, including our poorest citizens.

Last year I introduced legislation to eliminate property taxes for operating budgets as stated above. It passed on the first vote in the Senate, but was filibustered. In the end, I needed only six votes to get this passed in the Senate.

A few weeks ago, I introduced legislation, co-sponsored by Sens. Kuhn, Ravenel, Knotts, Cromer, Hawkins, Grooms, Odell, Fair and Mescher, and we will lead the fight in the Legislature to abolish property taxes. It can be done!

One billion dollars will be needed to raise enough money to eliminate these property taxes. A 2 percent sales tax increase would raise this amount.

We have heard the rhetoric for years that this can't be done. This proposal has been examined by the Board of Economic Advisors, the Department of Revenue, the comptroller general and the Legislative Council.

We not only can, but we have an obligation to give property tax relief to our citizens.

Following is a summary of the legislation that I introduced in the Senate:

Ninety-one percent of your property taxes on owner-occupied residences, private passenger vehicles and motorcycles would be eliminated in exchange for a 2 percent increase in the sales tax.

Local governments would be provided a new stream of operating dollars to replace the property tax stream. Sales taxes have grown at a faster pace over time than property taxes, unless your tax millage is raised.

Local governments would be prohibited from raising taxes on homeowners.

Business taxes will be frozen in place.

Counties would be reimbursed in a manner to reflect their growth: a per-capita basis for homes and an assessed value for cars.

Current sales tax exemptions would remain in place.

By the adoption of this proposal, the following would be achieved:

Tourists would be utilized to generate revenue.

Illegal aliens will pay more of their fair share since they are paying no property taxes under the current system.

Virtually every category of taxpayer will benefit financially.

We are elected to serve you. If you support the above plan, you can make a positive difference by contacting your district's senator and representative and asking them to support the Thomas plan to eliminate property taxes.