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:

House Passes 50-Cent Cigarette Tax Increase
Thursday, the SC House of Representatives passed a 50-cent cigarette tax increase by a vote of 97-22. Representative Gary Simrill (R-York) proposed an amendment that would decrease the tax from a 50-cent increase to a 30-cent increase. Simrill and other supporters of his amendment were trying to protect the border counties’ convenience store business by keeping South Carolina’s tax below Georgia and North Carolina’s. After the amendments failure, the 50-cent increase passed with flying colors. Revenue generated is estimated to be approximately $150M. Seventy percent will go towards premium assistance for small businesses, 20 percent will be put aside for high risk individuals who currently cannot obtain health insurance and the remainder will fund smoking cessation programs and the Department of Agriculture’s marketing efforts. Speaker Harrell’s bill will be debated in Senate Finance before moving to the Senate floor.

Debate Adjourned on Comprehensive Tax Reform
The SC House heard the business community’s cry for true comprehensive tax reform loud and clear this week. Thanks to all of you who sent e-mails and made phone calls to House members in support of comprehensive tax reform last week. A watered down tax reform bill that would look solely at sales tax exemptions was supposed to be up for debate Wednesday or Thursday of last week. Speaker of the House Bobby Harrell requested that the House adjourn debate on the bill until the House returns from a two-week furlough. During this time House leaders are going to work on a compromise that will satisfy both the House and the business community. Please continue to make phone calls to your House members and urge them to take a holistic approach to tax reform.

Point of Sale Eliminated
After a lengthy debate, the House passed a piece of legislation Thursday that eliminates the point of sale assessment. Reassessment of property will take place every five years just as it did prior to the passage of Act 388 in 2006. The SC Realtors have been working to get this bill passed the entire year and stressed that its passage is vital to the real estate climate and to South Carolina’s economy. House bill 3272 will now move to the Senate for debate.

Port Restructuring Bill Passes out of House Subcommittee
A House Judiciary Subcommittee took up Senate Bill 351, a SC State Port Authority restructuring bill that is intended to add stability to the port. The subcommittee amended the Senate’s bill to give more power to the governor. Under the House’s amended version, the governor will have the power to remove board members for any reason he deems fit. S. 351 will warrant a lengthy debate after it passes out of full committee following the House furlough.

Speaker Introduces SC Entrepreneurial Success Fund Act
This entrepreneur friendly bill will incentive private investors to invest into a seed capital fund. The fund manager will then invest in select South Carolina pre-start up and start-up high-impact companies. H. 3870’s goal is to grow SC grown headquarters and to increase the state’s per capita income. Investors will receive a tax credit equal to 30 percent of their investments into the seed capital fund. The bill was referred to a House Ways & Means subcommittee Thursday.