Caucus Press Release: House Conferees Reach Agreement on Historic Property Tax Relief
May 25, 2006
FOR IMMEDIATE RELEASE
House Conferees Reach Agreement
on Historic Property Tax Relief
COLUMBIA -- The House Property Tax conferees achieved historic and comprehensive tax relief for the people of South Carolina Thursday evening.
The conferees were Majority Leader Jim Merrill of Daniel Island, Rep. Bill Cotty of Columbia, and Democrat Mike Anthony of Union.
"We stood firm during deliberations with the Senate and have achieved an historic victory for the people of South Carolina," Rep. Merrill said. "From the beginning, we have stated that taxing South Carolinians out of their homes is unacceptable, and now we have done something about it. I am proud of the manner in which the House Republican Caucus and the General Assembly have responded to this difficult issue."
The compromise agreed to by the conference committee:
* eliminates school operating taxes and replaces it with a one-cent sales tax,
* decreases sales tax on groceries by 40 percent,
* includes a provision addressing inequities in school funding,
* money left over after that goes toward reducing county operating taxes,
* results in an overall tax reduction for the people of South Carolina,
* changes the method of reassessment and caps increases in taxable value to 15 percent over a 5-year period,
* establishes a sales tax holiday for the two days following Thanksgiving,
* closes the "alternative financing loophole" that local governments use to circumvent the constitutionally mandated 8 percent debt limit,
* allows voters in any county to further reduce property taxes on all classifications of property by passing an additional sales tax referendum.
"This is a victory for every homeowner in South Carolina," Rep. Cotty said. "This is also a victory for the American Dream of home ownership for South Carolinians and should create the opportunity for thousands more of our citizens to buy a house by making monthly mortgages more affordable."
The property tax plan will be debated again next week, when another conference committee will meet to debate the necessary constitutional amendments. The final agreement will be approved by the committee next week. If a constitutional amendment is agreed to next week, the people must vote to approve property tax relief in November.
"For almost a year we have been debating the best way to relieve the huge property tax burden that is levied on homeowners," said Speaker of the House Bobby Harrell. "We are nearing the end of the road in this process and have been able to deliver a plan that provides substantive tax relief to all South Carolinians. This is a step in the right direction to enable families to own their homes and not rent them from the government."
"While this is a major victory for all South Carolinians, House Republicans will continue our push for the total elimination of property taxes," said Rep. Merrill. "We heard the concerns of the people and delivered on our promise to provide tax relief."
For more information:
Majority Leader Jim Merrill
(803) 734-3138
-30-
Click for a PDF copy of this press release.
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