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TUESDAY, JANUARY 10, 2006 12:00 AM

Legislators need support for efforts to restructure taxes

BY JOHN GRAHAM ALTMAN

The King Kong issue this year in the Legislature is property tax relief. We intend to eliminate substantially the property taxes on your homes. Your home should be an asset, not a liability. In spite of that sensible belief, some local governing bodies assault homeowners with oppressive and relentless tax increases year after year.

With the stellar leadership of House Speaker Bobby Harrell and Senate Pro Tempore Glenn McConnell, both House and Senate task forces met throughout the fall to find answers. We met often, worked hard and got into position to give you the property tax relief you deserve. The House and Senate plans are not exactly alike, but we're not worlds apart. We're close and we can get there for you.

I discourage, however, talk of a "House Plan" and a "Senate Plan." There ought be no rivalry; no turf protection; no "our plan" versus "their plan." If we are to get this done, we've all got to be pulling on the same end of the rope, and you've got to help us.

One important and great thing we discovered is that South Carolina has another thing to boast of. I don't know why it has been kept almost a secret from you. It is a thing to be proud of. I'll bet you didn't know until I tell you now, that South Carolina has the highest percentage of home ownership of any state in the nation - about 68 percent. That's right. A higher percentage of South Carolina citizens own the homes they live in than in any other state in the country.

I've always pushed for this. Home ownership means home pride and it means you take better care of the home you own, show a higher interest in your neighborhood.

Homeowners are more aware of their children, churches, schools, parks, playgrounds and libraries. Homeowners form neighborhood associations, join civic and service clubs, encourage the arts and organize neighborhood crime watch programs. Home ownership and family formation are golden steps to the better community. Government should encourage this to happen, not assault home owners and families with road side property tax bombs exploding every year.

We've reached a proposal to show you in the House task force committee appointed by Speaker Harrell. It has far-reaching effects, but it is simple and makes good sense.

We'll accomplish this by a combination of legislation and constitutional amendments which become permanent (no more give today, take back tomorrow). You will be able to vote on the constitutional amendments in November, and you ought to show up at the polls in force. Relief will not happen without you.

First, we'll eliminate the unchecked power of school boards to levy property taxes on your home for their operational budgets (where the real problem lies), but they will retain the responsibility to collect just enough to pay down existing bond debt.

Consider the powerful benefit to homeowners from no school board operational property tax collection. Most people who buy homes have mortgages and most mortgages require escrow accounts that collect extra monthly payments for taxes and insurance. With no more property tax, the typical homeowner may find that monthly mortgage payments will go down by from $100 to $500 a month. That is a lot of extra money in your pocket to spend or save. It's like getting an unexpected pay raise for $1,200 to $6,000.

Second, we'll increase the retail sales tax rate to 7 percent from 5 percent and fully fund all school operating costs from the state level. This important step means everyone will pay a fair share. No more escaping by being "paid under the table." Tax cheats, criminals, illegal aliens, all will pay for school operation.

We'll adjust the 30-year-old Education Finance Act school funding formula to bring it up to contemporary needs, including a recognition of the impact of the poverty level of students on potential achievement. Every single child is important to you, me and the Legislature.

Third, from a deeply felt, longtime sense of fairness, we'll totally and permanently eliminate all sales taxes on the groceries you buy to feed your family. No more taxing our daily bread. Prescription medicine is already exempt from sales tax, and we'll now exempt your groceries, too. You'll then be able to feed your family and help heal your family without government demanding a five percent commission at the cash register.

We're going to require that governing bodies have more than a "simple majority" of members present to raise the property taxes on your property that they still control, and sometimes they'll have to have a referendum and let you vote.

They will have to have public hearings, and I personally want to require the publication of names, addresses and telephone numbers of all members of governing bodies and how they voted on all tax increases.

We already do this in the Legislature for House members, and I think it's just fair to do that for local elected officials.

Homes are to be free of those property taxes and for other properties, the assessment is to be frozen at the last level until they change hands outside of the family. In short, no more reassessment!

There are more details, of course. But this report to you today is an overview to be plainly read and understood, not an intricate schematic drawing. You need to know generally where we're heading.

Now, you need to know what you must do to help. We cannot do this in the Legislature alone. You've got to man your battle stations, report to general quarters. About six or seven weeks ago the counterattack began. The educrats and the politicians won't "go gentle into that good night." They are like termites with fangs, using your tax money to hire lawyers and lobbyists to sabotage the last clear chance we'll have in our lifetime to stab the silver dagger into the heart of the property tax beast.

My clear message to each one of you is to fight back, join hands with us. A sweeping law change like this cannot be passed in the Legislature alone.

Columbia is a different planet. It's got to come locally from your strength, your voices and your help.

John Graham Altman, a Charleston Republican, represents District 119 in the S.C. House of Representatives.


This article was printed via the web on 1/11/2006 1:00:27 PM . This article
appeared in The Post and Courier and updated online at Charleston.net on Tuesday, January 10, 2006.