Tax plan worries leaders

By: Meg Kinnard of The Post and Courier Staff  
Originally Published on: 12/10/05  

Minorities will be most affected by changes, some say.

COLUMBIA - Minority leaders are concerned about proposals that would raise the sales tax in order to reduce property taxes.

Property taxes affect everyone, but a sales tax increase could be a particular hardship on some minority citizens, Rep. John Scott, D-Columbia, said Friday at a forum in Columbia that focused on educating local minority officials about the proposals.

"When property taxes go up, it really affects the African-American community, especially lower-income families and limited-income families," Scott said. "Is it more cost-effective to have a sales tax and eliminate property tax? Or is there something else we need to do to reduce property tax, as well as provide some kind of stabilization for sales tax? We don't know the answer."

Gracie Floyd, the president of the South Carolina Coalition of Black County Officials, said it is the duty of public servants to make sure their communities are informed about the legislation pending in the House and Senate.

"Our coalition feels that we need to research information," said Floyd, who also chairs the Anderson County Council. "We need to be out there, actively gathering information, so that we can learn these things."

A sales tax increase is part of one of the proposals pending in the Legislature. On Wednesday, an ad hoc House committee studying the issue finished a proposal to cut nearly all property taxes on owner-occupied homes by raising sales taxes two pennies on the dollar. Last week, a joint Senate subcommittee sent to the full Judiciary Committee constitutional amendments to revamp property assessment and limit local governments' spending.

The chairman of that House panel attended Friday's session, saying everyone is affected by property taxes.

"This is middle class, this is upper class, this is lower class," said Rep. Bill Cotty, R-Columbia. "This is white and black. This is no matter what your political persuasion, or if you have none."

Even if legislators are not able to agree on a final reform plan this cycle, Scott said, his group will have accomplished its goal.

"At least we have empowered the community," Scott said. "The public is crying out for some kind of local property tax reform."

Floyd said her group has never endorsed specific legislation, but Scott said he would act as the coalition's mouthpiece in the Legislature.

"If the group walks away, either supporting or not supporting (a bill) I will ... indicate where this group is and the decision made in terms of whether or not this legislation helps or hurts them locally," Scott said.

 
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