Senate property tax panel OKs 2 constitutional amendments

COLUMBIA - The Senate property tax committee wrapped up its work for the year on Thursday, giving two constitutional amendments final approval but still leaving a few loose ends to tie up before lawmakers reconvene in mid-January. The senators are still standing by a plan to increase the statewide sales tax 2 cents on the dollar in order to cut in half home and vehicle property taxes and give renters a tax break. The plan would also eventually phase out the tax on groceries. It differs greatly from a House proposal that would completely eliminate the property tax on owner-occupied homes. The Senate's sales tax plan would be packaged with the two approved constitutional amendments, which would give local governments multiple methods for evaluating a property's worth and restrict localities' ability to raise property taxes in the future. Every county and city would move to a "point of sale" evaluation system, which means property would be reassessed only when it is substantially improved or changes owners, unless they opt out. Local authorities have the option of keeping the current system or implementing other methods that the General Assembly will draft in the undetermined future. The language of the amendment includes a clause giving taxpayers the ability to overrule their local government's decision. The second constitutional amendment would limit the size of future property tax increases to the locality's average growth in personal income. Committee co-chairman Sen. Glenn McConnell, R-Charleston, called the panel's actions significant but acknowledged the finished product is still months away. The constitutional amendments now go to the Judiciary Committee, which will likely hold more hearings before sending them on to the full Senate. The committee still needs to meet once more before the session starts Jan. 10 in order to review the language implementing the constitutional amendments. But the committee largely patted itself on the back while leaving two key issues unresolved: how to distribute the sales tax money to local school districts and how to provide immediate relief for those in dire situations. Sen. Linda Short, D-Chester, said the committee fell short of its duties by not addressing the education funding issue. The state is awaiting a court decision about whether local school districts are funded equitably. "I'm disappointed we didn't go ahead and talk about distribution formulas today," she said. "We are not addressing the situation that needs to be dealt with." Instead, the Senate Finance Committee will take up the matter in January. Senators cannot take formal action, though, until the House first approves the sales tax increase bill. Legislative rules say that any legislation that raises revenue must originate in the House.

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