Senate subcommittee
passes out two property tax proposals
SEANNA
ADCOX Associated
Press
COLUMBIA, S.C. - 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. |