February 10, 2006
Property Tax Bill Clears House
The property tax bill H. 4449 has undergone some scrutiny and changes in the House. After long discussions, the House passed the property tax bill 86-31. Although some legislators tried to put a pro-business amendment into the bill at the last minute, the amendment failed and the bill as a whole looks like it’s going to be negative toward business.
This bill proposes an additional 2 percent sales tax, with some exemptions, and an end to owner-occupied residential property tax. If this bill becomes law, South Carolina would have the highest sales tax rate in the entire nation and would place an increased burden upon businesses throughout South Carolina, especially the tourism industry.
An effort was made to add the 2 percent to lodging transactions. Thankfully, that effort was not successful.
After being passed by the House, the bill was sent to the Senate Thursday. We do not view this bill as being good for South Carolina and are actively lobbying the Senate to kill this measure. Nevertheless, the Senate is beginning to discuss its own version of property tax reform, which also includes an additional 2 percent sales tax increase.
Late School Start Bill in Senate’s Hands
The uniform late school start bill (H. 4429) now resides in the Senate’s Committee on Education after a first reading this week. At the moment, the bill is starting to gain momentum, with many Senators listening carefully to the debate and open to the possibility of a uniform late school start date. Of course, the chamber would love to see the Senate move the bill through as quickly as the House did, making it a win-win situation for families and business.
Thumbs up to our state delegation, who have been very pro-business this year and supportive on issues important to the Grand Strand.
Thumbs up to our House delegation, who have fought hard to keep the lodging industry exempted from the proposed 2 percent sales tax increase.
Thumbs down to the legislators who advocated adding the 2 percent sales tax to the lodging industry, suggesting that “what is good for the goose is good for the gander.” Uh, excuse us, but what other “gander” (i.e., industry) is taxed 10 percent besides lodging? None! Let’s allow the tourism “golden goose” to grow without killing it first.
Quick Updates
- H. 4450 - This bill proposes adding Article X regarding property tax reform to the constitution. It passed this week in the House and was read for the first time in the Senate on Thursday. It’s currently in the Senate’s Judiciary Committee.
- S. 1035 - The Senate workers' compensation bill is still being studied by the Judiciary Committee.
- H. 4427 - The workers' compensation bill is still with the House Labor, Commerce and Industry Committee.
- H. 3795 - House bill prohibiting smoking in restaurants currently resides in the House Committee on Judiciary.
- S. 1001 - The credit block bill is being studied by the Senate Banking and Insurance Committee.
Did you know?
You can watch the House or Senate in session on your computer. All you have to do is visit SCStateHouse.net and where it says Live Broadcast, click on the multimedia player that works best for you.
