COLUMBIA - A Senate panel gutted the House-approved property tax legislation Tuesday, agreeing instead to a plan with half as much tax relief distributed to more people.

In an effort to toss the political hot potato to the full Senate, the Finance Committee quickly approved a scaled-down version of property tax relief that already is generating disagreement from lawmakers.

The 12-8 vote foreshadowed a contentious debate on the Senate floor that could begin as soon as Thursday.

"This plan stinks like July road kill," said Sen. Larry Grooms, R-Bonneau.

But like other committee members who disliked the bill, Grooms ultimately voted to send it to the Senate.

"At least it gives property tax relief a chance," he said after the meeting. "I don't want to be a member of the committee that kills this bill."

The legislation has attracted interest since lawmakers began holding hearings about the issue 10 months ago. Last year's reassessment sent home taxes soaring, causing the matter to take top priority this legislative session.

House lawmakers passed a populist-favored bill in February that eliminated most homeowners' taxes by increasing the sales tax two cents on the dollar.

Senators changed the legislation to a one-cent sales tax increase that provides tax breaks for some owner-occupied residences, homeowners with limited income and all personal vehicles.

The measure eliminates only school operating taxes, the largest portion of most tax bills, but does not completely eliminate taxes on homes or cars.

The most expensive portion is the tax break on personal vehicles. Sen. Scott Richardson, R-Hilton Head, said it is designed to provide tax relief "to as many people as we can."

The Senate plan scrapped the House measure that would have eliminated the sales tax on groceries because it was too expensive to cover with only a penny increase in the sales tax.

Senators also left out caps on the amount local governments can raise taxes, meaning that other types of property, such as businesses, could see tax bills increase.

Several senators on the committee were dismayed by the plan and predicted an uncertain future for it on the Senate floor.

"I'm not sure we don't need to slow down," said Sen. Nikki Setzler, D-West Columbia. "I don't think this proposal will get through the Senate."

Setzler's comments didn't discourage Charleston resident Emerson Read, who represented taxpayer groups at Tuesday's meeting. He said the Senate's action is a step in the right direction.

"Anything out of here and to the floor is a victory," he said.

 

On the Net

For a full report on the Legislature, go to www.charleston.net/webextras.

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Reach John Frank at (803) 799-9051 or jbfrank@postandcourier.com.