Legislative Update

While the Legislature is in session, the Greenville Chamber sends out a Legislative Update each week to those members interested. Not receiving the updates, but interested? Contact Sunnie Harmon or John DeWorken at 864-242-1050 or by e-mail (sharmon@greenvillechamber.org or jdeworken@greenvillechamber.org).

Below is last week's update from Columbia:

Point of Sale Assessment Eliminated
The Full House Ways & Means Committee passed out H. 3272 with a favorable report Thursday afternoon. H. 3272 eliminates the point of sale assessment and applies a 15% increase cap on reassessments. Before being amended the bill included a retroactive provision that would require counties to reimburse property owners for the inflated taxes paid 2006 to 2008. Representative Annette Young (R-Charleston) offered an amendment to this provision deleting the retroactivity to save counties from suffering through another loss in revenue. The amendment was adopted with a vote of 14-11. Those legislators opposed to the amendment were worried of the effects it would have on taxpayers, who bought homes from 2006 to 2008. It now moves to the House floor for debate.

Watered Down Comprehensive Tax Reform Passes Ways & Means
Movement of a truly comprehensive tax reform study commission came to a halt Thursday during a House Ways and Means committee meeting. The Tax Realignment Commission created in Senate Bill 12 would look at sales tax exemptions, property tax, income tax and fees, fines and forfeitures. That commission was charged with recommending to the General Assembly what changes needed to be made to South Carolina’s tax structure to make the state more competitive in attracting businesses and residents. The Upstate Chamber Coalition supported the TRAC bill in its form leaving the Senate. House leadership wishes for the commission to look solely at sales tax exemptions and then at a separate time study the remaining components of the current tax code. The Upstate’s Representatives Rex Rice (R-Pickens) and Dwight Loftis (R-Greenville) voiced their concerns during the meeting of such a piecemeal approach to studying the state’s tax structure. Please call your House delegation members and urge them to speak up on the House floor when Senate Bill 12 and House Bill 3415 are debated and promote comprehensive tax commission, one with a holistic approach.


Speaker’s Cigarette Tax Bill Moves to House Floor
A 50-cent cigarette tax increase was sent out of Ways and Means with a favorable report. The tax is estimated to generate approximately $150 million for the state. The bulk of this revenue would provide premium assistance to employers with low-income employees, as well as to high-risk individuals. It is estimated that about 17,000 would benefit from the passage of this legislation. An amendment was proposed during the committee to lower the tax to 30-cents in an effort to keep South Carolina’s tax below Georgia and North Carolina’s failed with a vote of 14-10. Many border counties are concerned that convenience store revenues will decrease greatly if SC’s tax on cigarettes is greater than its neighbors. H. 3584 is sure to attract a lengthy debate on the House floor.

LCI Committee Hearings Held on Red Tape Regulations
Labor, Commerce, and Industry Chairman Bill Sandifer (R-Oconee) along with his committee members heard testimony Wednesday and Thursday from business owners regarding red tape regulations and procedures hindering their competitiveness. A myriad of concerns were voiced including DHEC regulations and business license fees. Sandifer and his subcommittee intend to gather all information heard this week and draft legislation to be introduced next week. The subcommittee’s intent is to improve the business climate in South Carolina by eliminating unnecessary, burdensome and redundant state and local government regulations and policies.

Bedingfield Scores Large Victory for Business Community
The business community is one step closer to protecting workers’ rights to a secret ballot in union elections thanks largely to Representative Eric Bedingfield (R-Greenville) who lead the fight in the SC House in passing H. 3305 with a vote of 88-25. H. 3305 is a constitutional amendment that would guarantee a worker’s right to a secret ballot in the event of a union election. Since this legislation does amend the constitution, a two-thirds majority is required for passage. South Carolina, along with 39 other states is moving this legislation through its General Assembly. The bill moves to a Senate Judiciary subcommittee for discussion before moving to the floor for debate. Thirty-one votes will be needed for passage in the Senate. If both bodies pass it, it will be up to the citizens of South Carolina to vote for a referendum in November 2010 to amend the constitution.