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Friday, May 19    |    Upstate South Carolina News, Sports and Information

Tax swap ties up Senate
Debate to continue today after three plans shot down

Published: Wednesday, May 3, 2006 - 6:00 am


By Tim Smith
STAFF WRITER
tcsmith@greenvillenews.com

COLUMBIA -- The state Senate voted three times Tuesday but failed to find a property tax-relief measure it liked.

Two of the leading proposals were tabled in close votes. Debate will resume today with many more proposals waiting to be heard.

Sen. Larry Martin, a Pickens Republican, said a plan to give voters in each county the option of cutting property taxes while raising the sales tax may be the only one that can unite the Senate.

"We are so divided," he said.

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At times, Tuesday's debate sparked heated and loud exchanges. President Pro Tem Glenn McConnell, presiding at Tuesday's session, interrupted debate to remind senators that the body's rules required both questions and answers.

Sen. Jake Knotts, a West Columbia Republican who pushed one of the proposals tabled Tuesday, complained to senators that they hadn't included any property tax relief money in their budget and taxpayers were watching what they were doing.

"It's a shame we can't listen to them," he said.

One of the plans rejected Tuesday, proposed by Sen. Larry Grooms, a Berkeley County Republican, and Sen. Vincent Sheheen, a Camden Democrat, called for eliminating all school taxes for homeowners and setting a statewide school tax rate of 75 mills on other forms of property.

The plan would be paid for by increasing the sales tax by 2 cents per dollar, raising the sales-tax cap on cars from $300 to $600 and increasing the fee to record deeds.

The plan was proposed in slightly different versions two weeks ago and has been championed as the best hope for school funding equity. But it has been attacked as being too complicated. The Senate voted 21-19 to table the plan after first voting 19-20 not to table it.

Its prime competitor, a version of the House plan, would reduce most taxes for homeowners, increase the sales tax by two cents and eliminate the sales tax on food. It would also create a $93 million reserve, a feature that was criticized by one senator Tuesday as a tax increase.

The Senate tabled that plan 22-19.

McConnell said afterward he expects versions of both plans to surface again this week as senators struggle to find the right mix that can win a majority vote.

"I think the Senate will have to move through more fights on amendments before it will settle on something," he said.


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Among the proposals:
  • Eliminate school taxes for homeowners and increase sales tax 2 percent.
  • Reduce property tax and raise sales tax 2 percent but eliminate it on food

  • Related
    Related coverage
    House chiefs push Senate to act on property tax relief (05/04/06)
    Tax reform ads aimed at Senators (05/02/06)
    Senate adopts tax-swap option as framework (04/21/06)
    Senate may end impasse on taxes (04/19/06)
    Senators seek ways to keep tax relief from sinking (04/14/06)

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