Manage your Post and Courier subscription online. Click here!
  HOME | NEWS |BUSINESS | SPORTS | ENTERTAINMENT SHOP LOCAL | FEATURES JOBS | CARS | REAL ESTATE
 
State / Region
Thursday, May 25, 2006 - Last Updated: 6:57 AM 

Lawmakers need more time on tax relief

BY JOHN FRANK
The Post and Courier

Email This Article?
Printer-Friendly Format?
Reprints & Permissions? (coming soon)

COLUMBIA ? It seems five months of legislative wrangling just isn't enough for the General Assembly.

Despite enduring one of the longest legislative sessions in the country, House and Senate lawmakers said Wednesday they need more time to strike a deal on a plan to provide homeowners property tax relief.

The impasse on the session's paramount issue is clogging the legislative calendar, meaning the Legislature won't finish work on the $6.7 billion state budget before the scheduled June 1 adjournment.

House and Senate lawmakers are meeting in an evenly split conference committee to hash out the differences in the property tax bills passed by each chamber.

Late Wednesday evening, the House conferees rejected a compromise plan developed by their Senate counterparts.

House Majority Leader Jim Merrill, R-Daniel Island, on the conference committee, said the offer was an insult to the compromise suggested by the House and supported by Gov. Mark Sanford.

The collapse of the negotiations comes after three days of political posturing by both sides of the table, and leaves the six lawmakers on the conference committee little time to strike a deal in the last four days of session.

Merrill said property tax relief is about as hard to get as a golden ticket in a Willy Wonka chocolate bar.

"While the House is willing to take great strides to achieve property tax relief, the Senate seems determined to take Oompa-Loompa steps," he said referring to the dwarf residents of Wonka's famous chocolate factory.

Sen. Hugh Leatherman, R-Florence, on the conference committee, said the Senate is willing to take a 1-cent sales tax hike to remove a portion of home taxes but just couldn't accept other parts of the House compromise that reduce grocery sales taxes and take away taxing power from local school boards.

The conference committee is working to find some middle ground between the polar opposite plans passed by the House and Senate.

The original plan approved by the House would increase the statewide sales tax by 2 cents on the dollar to eliminate about 85 percent of home property taxes and remove sales tax on groceries.

It would also cost the state about $117 million in general revenue the first year.

The Senate went a different direction by approving a plan to let local counties decide whether to impose a local option sales tax hike to reduce property taxes on all types of property.

The conference committee is expected to resume negotiations today.

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