Caucus Press Release: House Calls on Senate to End Property Tax Delays
May 24, 2006
FOR IMMEDIATE RELEASE
House Calls on Senate
to End Property Tax Delays
At stake: Eliminating residential property taxes forever
COLUMBIA -- The House Republican Caucus called on the Senate Wednesday to quit stalling and make a commitment to the property tax relief South Carolinians are demanding.
Negotiations in a property tax conference committee have stalled on a Senate-proposed provision that would enable local governments to re-institute property taxes. Republicans in the House are demanding the total elimination of residential property taxes.
"We must shut and lock the door on property taxes -- permanently," said Majority Leader Jim Merrill of Daniel Island. "As history has shown, if we don't totally shut down a taxing option, some will say they just need one, two, or three mills to fix all of their problems. Then, ten years from now, we'll be right back where we are today: Homeowners will be suffering under a high property tax burden. Except that in 10 years, they will also be paying a higher sales tax."
House conferees, led by Rep. Bill Cotty of Columbia and Merrill, unveiled a compromise plan today in an effort to move property tax relief forward. The new plan eliminates school operating taxes -- nearly 60 percent of a typical property tax bill -- and substitutes a one-cent sales tax. The sales tax on groceries will be reduced by 40 percent. In addition, a constitutional amendment will cap reassessment and will exempt owner-occupied homes from school property taxes forever.
"The people of South Carolina demand a solution, not a Band-Aid, to the property tax problem," Rep. Cotty said. "This is our chance. If we don't find a solution this week, we will have to wait until 2008 for another chance. That is too long."
Any solution would have to wait until another public referendum could be held in 2008. Much of the property tax relief plan centers on a constitutional amendment that must be voted on by the people in a general election, which are only held every two years.
"In 1995, the General Assembly said they'd fixed the property tax problem," said Assistant Majority Leader Adam Taylor of Laurens. "Is it fixed today? True property tax relief means making sure property taxes can never come back."
If no agreement can be reached, the House leadership is preparing a continuing resolution so state government may operate past July 1. The House has also prepared a sine die resolution that will allow the General Assembly to return after June 1 to debate the budget and property tax. Both resolutions must be approved by the House and Senate.
For More Information:
Majority Leader Rep. Jim Merrill
(803) 734-3138
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Click for a PDF copy of this press release.
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