COLUMBIA ? The state Senate's approval of a property tax relief package
Tuesday led Republican leader Harvey Peeler to one conclusion: "A miracle can
happen."
It sure seemed that way after senators emerged from a closed-door meeting
with a pared-down local option plan that garnered enough votes to end a
month-long stalemate.
Under the legislation, voters would decide in a November constitutional
referendum whether to grant individual counties the ability to reduce property
taxes by increasing the local sales tax.
Local governments could raise the sales tax as much as needed to remove
school and county operating taxes from all classes of property, not just
owner-occupied homes.
The amount of the tax-swap would be in the hands of local governments, but
senators cautioned that a complete elimination of property taxes is unlikely
because it would prove costly.
"It's not what everybody wants and it's not as far as some people want to
go," said Senate leader Glenn McConnell, R-Charleston. "But it empowers voters
at the polls."
The new plan effectively scraps a measure to increase the state sales tax a
half-cent and make the state take over of education funding, which senators had
adopted.
It also diverges widely from what the House approved earlier this
session.
That plan would eliminate the bulk of home taxes by increasing the statewide
sales tax by 2 cents to 7 cents.
The differences will force the House and Senate into a conference committee,
where three members of each chamber will attempt to hammer out a compromise.
"It will be the mother of all conference committees," said Peeler,
R-Gaffney.
Three senators voted against the tax package, including Lowcountry Sens.
Larry Grooms, R-Bonneau and Clementa Pinckney, D-Ridgeland.
Grooms, along with a number of taxpayer advocacy groups, said the compromise
was nothing more than "a political scapegoat that allows members of the Senate
to say they didn't kill property tax relief."
"In passing a plan that doesn't benefit homeowners, we've really done nothing
here," said Grooms, who fought ardently for a more comprehensive plan. "The two
versions are so vastly different that I don't see a conference report coming
out."
Sen. Chip Campsen, R-Charleston, said he wasn't happy with the plan, but
voted in favor anyway.
"It's all you can get out of this body," he said of the divided Senate. "It's
a political reality that you can't get votes for more broad tax relief."
Reach John Frank at (803) 799-9051 or jbfrank@postandcourier.com.