COLUMBIA--Gov. Mark Sanford said Wednesday he
thinks lawmakers should study how to fund education before they start to
tweak property taxes.
The House and Senate each formed committees this summer to focus on
relief for property owners, especially for those being forced out of their
homes by skyrocketing taxes along the coast.
"I think, unfortunately, the caboose is leading the train on this one,"
Sanford said. "You've got to look at what's the driver of this train. The
reason property taxes are there is because of education."
The Republican governor told about 50 members of a Kiwanis Club in
Columbia that efforts to give property owners a tax break would be the
"hot-button" issue of the upcoming legislative session.
"If you want relief ... then how are we going to do it in a way that
still provides adequate funding for the education process?" Sanford asked.
House Speaker Bobby Harrell, R-Charleston, said the public clearly
wants the Legislature to look at property taxes.
"We have had a long-standing commitment to funding education," Harrell
said. "I don't think you have to do one or the other. I believe you can do
both at the same time."
Harrell and Senate leaders say there is no simple answer to ease the
tax burden.
"We are not going to ignore education, but I'm just not going to put
the property owners on the back seat," said Sen. Glenn McConnell,
R-Charleston. "People's homes are at stake, it's time to act."
The problem is the state's revenue is generated by what lawmakers refer
to as a three-legged stool: property tax, sales tax and income tax. By
reducing property tax, other taxes need to increase to provide government
services.
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MARY ANN
CHASTAIN/AP |
Gov. Mark
Sanford (right) is greeted by members of the Golden K Columbia
Kiwanis before talking Wednesday about property taxes and
education funding.
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One idea would eliminate property taxes by raising the sales tax or
other taxes such as the cigarette tax. Another idea would limit services
for which property taxes could be used. Public education could be funded
by a different tax.
It would be tough to eliminate property taxes because, on average, they
provide 84 percent of local funding for school districts, according to the
Senate subcommittee.
Sanford pointed to a lawsuit in which eight school districts claim the
state's method of funding schools shortchanges rural districts.
"You've got an equity lawsuit about some counties in some of the rural
parts saying 'Wait, we don't have enough,' " Sanford said. "You want to be
careful to make sure any of these proposals that they're trying to limit
property tax for the big homes on Sullivan's Island ... that you're not
therefore loading up more tax on some guy living in a trailer in Hampton
County."
But not all the proposals would cost more. One possibility would
restrict when values are reassessed to when property is purchased or when
a major improvement is made. Another plan would put a cap on how much the
assessed value could increase over a period of time.