By Tim Smith STAFF WRITER tcsmith@greenvillenews.com
COLUMBIA -- Homeowners' hopes for property tax relief this year
went to the Senate floor on Tuesday, where little in the way of a
consensus emerged after the opening debate.
Senators representing high-growth counties and those with rising
property values complained that a Senate plan didn't offer enough
relief. Others complained that the plan offered little help for the
poor. And still others warned that a competing House plan would
"whack" business with higher taxes and possibly affect tourism.
Even the senator explaining the bill told colleagues that he
favored something else. But defenders of the plan told senators that
the House reform package wasn't an option.
"Is this plan perfect? No," said Sen. Scott Richardson, a Hilton
Head Republican. "There is no perfect formula that fits 46 counties.
Let's start with something, at least at a place that makes sense."
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The Senate adjourned before taking any votes. Debate is expected
to resume today.
The Senate Finance Committee last week sent a plan to the floor
as a means of replacing the House plan. Senators said then they
hoped that floor debate would craft a compromise.
The Senate plan under review would raise the state sales tax by a
penny, from five cents to six cents per dollar. The proceeds would
fund relief of school taxes for owner-occupied homes valued at
$180,000 or less. Car owners also would see school taxes removed.
The plan also offers a "circuit breaker," which would limit tax
bills to 5 percent of household income.
The House plan would raise the sales tax by two cents and remove
school, city and county taxes from owner-occupied homes, leaving
only local debt on tax bills.
John Simpkins, a professor at the Charleston School of Law, said
reaching an agreement on property tax this year might prove as
difficult as immigration reform for members of Congress.
"What we're seeing now is evidence of why we haven't had
successful efforts at reform in this area in the past," he said.
"It creates a cross-cutting dialogue where you might have
representatives of high-growth areas taking positions which are
counter to representatives of poor areas. And party designations
don't necessarily hold."
Senate President Pro Tem Glenn McConnell, who represents
Charleston and its steep property values, was among the first to
attack the plan.
"If it's 'Deal or No Deal,' we'll take the House bill," he said.
McConnell and other coastal senators said the House plan offered
more relief to homeowners in their districts, who include seniors
whose incomes are topped by their tax bills. Charleston County is
among seven counties, senators said, where a majority of homes are
valued in excess of $100,000.
Sen. Wes Hayes, a Rock Hill Republican who explained the plan to
the Senate, argued that the House plan would hurt Charleston
business and tourism.
"I will say the Senate plan is vastly better than the House
plan," he said. "This bill does nothing to hurt business."
Sen. Ralph Anderson, a Greenville Democrat, complained that the
bill appeared to be a "Robin Hood in reverse," taking sales taxes
from the poor to give to more affluent homeowners.
And Sen. Chip Campsen, an Isle of Palms Republican who attended
public hearings last year on property tax reform, criticized the
fact that half the plan's money would go for car tax relief.
"One thing I did not hear (from the hearings) was people getting
taxed out of their cars," he said. "What I heard around the state
was people getting taxed out of their homes."
Some said Tuesday that with a proposal already approved that
would cap reassessment increases and one still being debated that
would cap tax rate increases by local governments, the Legislature
might accomplish significant property tax reform without any further
action.
Hayes said afterward he believes the Senate will sift through
four options before deciding what to do: the current plan, the House
plan, a proposal he favors to only raise sales taxes by one-half
cent and a plan to give counties an option to raise the sales tax
for property tax relief.
He said the one-half-cent proposal favored by him is also favored
by business and local governments but would likely not satisfy
coastal senators.
"I don't see any clear preference," he said. "I think it will
come down to the one-half and the 2 cents. But I don't know where
the votes are, to tell you the truth." |