Posted on Thu, Dec. 01, 2005


Senate subcommittee passes out two property tax proposals


Associated Press

Two pieces of a Senate subcommittees' plans to reform property taxes took a step forward Thursday.

After months of discussion, a joint Senate subcommittee approved sending drafted constitutional amendments to the full Senate Judiciary Committee. One would revamp property tax reassessment, while the other would limit local governments' spending.

The proposals will be prefiled for the upcoming legislative session within the week, said committee chairman and Senate President Pro Tem Glenn McConnell, R-Charleston.

The senators spent hours going over the specific wording of the constitutional amendments. One would make so-called point-of-sale reassessment the default system statewide. Under that method, property would be reassessed only when sold or substantially improved. But the amendment allows counties to choose from other reassessment options provided by the General Assembly.

McConnell said allowing a choice is the only way to ensure the proposal receives the necessary two-thirds majority approval. The amendment would roll back assessed values to 2004 levels.

The other drafted amendment would cap local tax rates. Increases would be tied to the state's personal income growth. Local governments could get more money through a public vote.

State Sen. Wes Hayes, R-Rock Hill, criticized the plan as "creating big brother government on the state level.

"It might be popular now," he said, "but down the line when local government can't deal with its problems, people are going to resent it."

The Senate subcommittee passed on getting more specific with its plans to supplant property taxes with increased state sales taxes, a key part of the debate. Those ideas will be hashed out in the full Senate Finance Committee, as the Senate waits on the House proposal.

The state constitution requires that any legislation that affects state revenue come from the House.

In previous meetings, Senate subcommittee members agreed to raise the state sales tax by 2 cents on the dollar, to 7 cents. The extra revenue would cut property taxes on owner-occupied homes and vehicles, give renters a tax credit, and reduce the state sales tax on groceries. The senators' plan cut only school operating expenses from property tax bills.

But on Thursday, senators said they needed to get more numbers from financial staff before going further.

"If we're going to introduce something this year, we need to get it into committee," said state Sen. Hugh Leatherman, R-Florence, chairman of the Senate Finance Committee.

The Senate Finance Committee will "develop the meat of the numbers" while waiting on the House, McConnell said.

A plan passed in a House subcommittee differs from the Senate group's ideas. It would cut school, city and county operating costs, by focusing on owner-occupied homes.

The House subcommittee on property taxes will meet Wednesday. The Senate subcommittee did not set a date for its next meeting. McConnell said it would meet at least one more time before the session starts in January.





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