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Wait till next year: Property tax issue looms for legislature

Published Monday, June 13th, 2005

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While state lawmakers patted themselves on the backs for all of the bills they passed over the last five months, there's still a lot of work left for next session.

Perhaps the biggest new chunk of business they'll bite off is reviewing the state's property tax laws and whether they can be changed fairly to reduce the tax burden on some.

Across the state and especially in areas experiencing fast growth, many property owners are feeling the pinch of increased property tax bills. Over the last couple of years, a quiet rumble of discontent quaked into more serious fury after Charleston County tried to cap increased valuations of assessed property to a modest rise. The effort was found unconstitutional by the courts because the state constitution says property tax rates have to be based on fair market value.

In December, Gov. Mark Sanford vetoed a similar move by last year's General Assembly to cap valuation increases to 20 percent. He cited constitutional concerns as one of the reasons for the veto.

Over the summer, state senators will take another crack at what can be done on property taxes as special subcommittees will examine financial and constitutional implications of any changes. All ideas reportedly are on the table for discussion. Lawmakers will be looking for creative ways to keep from shifting the burden to many while lowering the burden on the fewer people whose property has increased, such as people with big houses on the coast and elderly people who live in gentrifying neighborhoods.

Other business on next year's agenda includes:

  • Isolated wetlands. Many Democrats and Republicans are still miffed no bill to protect wetlands in South Carolina was introduced this year.

    "We've got to protect wetlands next year," said Rep. Bill Herbkersman, R-Bluffton. "It's time to call people to task."

  • Restoring government. Demo-crats say they will work to restore cuts suffered by state government over the last few years. They say there are a lot of needs with school buildings and prisons. Recent shortfalls also have hurt mental health programs and caused colleges to raise tuitions.

  • School funding. It's likely a state judge will rule over the summer that the state's rural schools are funded inequitably. While the case will be appealed regardless of which side wins, it will put lawmakers on notice that they will have to change school funding sometime soon.

  • Other education plans. Demo-crats in the House and Senate may have a special education plan next year because they say they're tired, as one lawmaker said, of seeming only to oppose bad legislation. The plan could include a more proactive approach to reducing class sizes, more early childhood education programs, and more after-school and homework programs. Meanwhile, some Republicans will continue to push Sanford's "Put Parents In Charge" voucher plan.

  • Restructuring. While the governor's restructuring proposals are stalled in the House and Senate, they likely will face new scrutiny next year.

  • Road funding. With recent news about the millions of dollars of shortfalls in state road maintenance funds, some lawmakers say they'll work to address ways roads and maintenance are funded. That could come in the form of a new push for an increase to the gas tax.

  • Good health. Others will push for more money to be put in

    preventive health programs. Efforts could be fueled by boosting the 7-cent-per-pack cigarette tax, which is the second lowest in the nation.

    "We should continue being more proactive in spending dollars in areas of health care that point to prevention and screening programs for cancer, kidney disease and other illnesses," said Rep. David Mack, a Charleston Democrat who chairs the Legislative Black Caucus.

  • Workers' comp. House lawmakers also may push a new initiative to revamp the state workers' compensation laws, which could cause another clash between lawyers and big business.
  • Andy Brack, editor and publisher of S.C. Statehouse Report, can be reached at .

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