Posted on Wed, Mar. 22, 2006


Senate panel sets tax reform course



“There is nothing normal about this at all. It is just an odd arrangement.”

Attorney General Henry McMaster, discussing the national tobacco settlement agreement with lawmakers and other members of the State Budget and Control Board. The deal, among other things, requires states to help companies maintain their market share in exchange for annual payments.

TODAY AT THE STATE HOUSE

For a complete list of legislative meetings, go to http://www.scstatehouse.net/ and click on the “Meetings” link.

IN THE HOUSE: Convenes at 10 a.m. At 2:30 p.m., 516 Blatt Building, a Judiciary subcommittee discusses child restraint laws.

IN THE SENATE: Convenes at 2 p.m. At 10 a.m., 307 Gressette Building, a Judiciary subcommittee considers a bill permitting women to breast-feed children in public places.

THE DAILY BUZZ

POWER TO THE PEOPLE

Representatives from the R.J. Reynolds Tobacco Co. visited the State House on a mission.

Snuff out a proposed hike in the state’s cigarette tax.

The makers of such name brands as Winston, Salem and Camel presented a list of more than 100 signatures of smokers who want to “ax the tax.”

The goal, said company representative Craig Fishel, is to give voice to smokers because tobacco company resources are stretched these days.

Some signers of the petition got more than a voice; they got free cigarettes.

The legislative push to raise the state’s cigarette tax to 39 cents a pack to raise money for health insurance efforts has bi-partisan support, but its prospects are unclear.

Even so, The Buzz isn’t sure signatures from “Chops,” “Diesel” and “M-I-S-S-Y,” all of whom signed the petition, will be persuasive.

SCHMOOZING

Where and from whom state lawmakers will be able to get free food and drinks:

• Breakfast: 8 a.m., Seawell’s, hosted by Palmetto Pride.

• Lunch: Noon, 221 Blatt Building, hosted by S.C. Child Care Association.

• Evening reception: 6 p.m., Seawell’s, hosted by S.C. Association of Municipal Power Systems.

MORE ON THE WEB

What you can find online at thestate.com

• YGA Today, midday news from inside the State House, is updated several times each legislative day.

• Our searchable list of state employee salaries for workers earning more than $50,000 a year has been updated.

A QUICK SPIN AROUND THE STATE HOUSE

The Senate has a $300 million plan to provide some relief to most property taxpayers.

Less expansive than a House-passed plan, the reform would cost less than half as much. The plan would raise the state sales tax by a 0.5 percentage point.

The Senate subcommittee is likely to meet Thursday to work out final details on the plan. If approved, it would then go to the Senate Finance Committee.

About two-thirds of the money would be used to raise the home amount exempted from county, city and school operating taxes to $200,000, up from $100,000. According to state estimates, about 93 percent of S.C. homes cost $200,000 or less.

The other $100 million would be used to target tax relief to those who need it most. Referred to as a “circuit breaker,” the state would pay a portion of a bill that exceeds a set percentage of that homeowner’s income.

The subcommittee has yet to choose that percentage, but members said it would likely be tiered according to how much a person earns. The state’s lowest-earning homeowners, for example, could qualify for more relief if their tax bill is 2 percent of their income.

TOBACCO FIGHT

Attorney General Henry McMaster told state leaders to prepare for a battle with tobacco companies over the national cigarette suit settlement.

South Carolina receives about $77 million each year from the deal, but McMaster said those companies have won an early legal battle to reduce those payments.

Payments could drop about 18 percent, to $63 million a year, he said.

Under the settlement, the state must prevent smaller companies who didn’t sign the settlement from unfairly marketing and selling their products. If big companies’ sales drop enough, the agreement allows them to reduce payment unless they can prove they did enforce the agreement.

In other news:

• South Carolina could contract with foreign countries to house inmates convicted of drug-related offenses or crimes related to the sexual abuse of children under a bill introduced in the House.

• Sanford signed a bill earmarking $105 million from the state’s surplus revenue to cover a little-noticed deficit that’s been on the state’s books for years. The measure also provides $13 million to cover parts and fuel for school buses.

• A bill that could allow Lexington Medical Center to open a heart surgery unit by year’s end could be taken up by House members later this week. House Speaker Bobby Harrell placed the measure on a faster track by not sending the bill back to committee.

• The Senate gave final approval to a bill allowing the governor to lower flags over state buildings when appropriate. Gov. Mark Sanford has supported the bill and has said he will sign it into law.





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