H.3562 would allow counties via referendum to impose a new 1 percent sales tax in order to fund a credit against local school property tax. Essentially localities would be able to increase sales tax in order to decrease property tax.

Such a shift would be essentially regressive, shifting a tax burden from relatively more wealthy (on average) property owners to relatively less wealthy renters (who will only see the sales tax increase and no other tax relief). There is nothing inherently wrong with attempting to reduce the burden of property taxes, but a reduction should not be accompanied by an increase in other taxes.

By South Carolina Policy Council

Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.