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Caucus Press Release: House Approves Historic Property Tax Reforms
Feb 8, 2006
FOR IMMEDIATE RELEASE
House Approves
Historic Property Tax Reforms
Bold Republican plan also restricts government spending
COLUMBIA, S.C. -- The South Carolina House of Representatives approved two historic bills Wednesday that provide sweeping property tax reform by eliminating nearly all property taxes from owner-occupied houses while restricting future government spending.
"The House Republicans promised the people of South Carolina that we would do something about their crushing property tax burdens," said Majority Leader Jim Merrill of Daniel Island. "We fought back the special interests and delivered on our promise to the state's homeowners."
The property tax reform and the amendment imposing spending limits fulfill two of the six items in the House Republican Caucus agenda.
The first bill, a constitutional amendment changing reassessment rules and asking the voters to decide if they want property taxes eliminated, was approved 102-17. The second bill, which substitutes a 2-cent sales tax for the vast majority of property taxes on homes and institutes the spending limit, passed by a vote of 86-31.
"This is a monumental tax relief bill for the people of South Carolina. The bill we passed today provides South Carolina's homeowners with the biggest tax relief package they have ever seen." said Speaker of the House Bobby Harrell. "In addition to eliminating all property taxes for operating purposes off homes, the bill totally eliminates sales taxes off groceries."
Property tax reform is the first item on the 2006 Republican agenda. The legislation eliminates most property taxes on owner-occupied homes and replaces it with a 2-cent sales tax. In addition, property will be reassessed when property is sold or transferred. The package also eliminates the sales tax on groceries, reducing the burden on the poor. Property taxes that pay to build schools, roads, or other local capital improvements will not be eliminated.
The bill was not all about taxes and revenue. The House overwhelmingly approved an amendment from House Speaker Pro Tempore Doug Smith of Spartanburg that limits spending at all levels of government -- from the Statehouse to city hall.
"All levels of government have to live within their means," Smith said. "This is peace of mind to those of who have worked to limit spending for years. We wouldn't be here today if government at all levels lived within their means."
The bill restricts increases in government spending to inflation plus statewide population growth. School districts will be restricted to inflation plus student population growth. The amendment was approved 83-27.
Another amendment was approved that will preserve local-option sales taxes that voters in those areas have already approved.
The property tax relief package will now go to the Senate for consideration, where the body is considering a weaker version of property tax reform. The constitutional amendment does not have to be approved by the governor. It must be approved by the voters this November.
"This is government responding to the needs of the people," said Rep. Kenny Bingham of Cayce. "We traveled across the state and listened to the people for more than six months. The biggest issue facing homeowners across the state was property tax reform."
For More Information:
House Speaker Bobby Harrell
(803) 734-3125
Majority Leader Jim Merrill
(803) 734-3138
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Click for a PDF copy of this press release.
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