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Senate subcommittee passes out two property tax proposals

2005-12-02 / State News

By SEANNA ADCOX Associated Press Writer

COLUMBIA (AP) — 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, RCharleston.

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, RRock 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. 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.

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