Two bills repealing the land transfer tax were filed in the General Assembly this week. Senator Eddie Goodall (R-Union) has filed Senate Bill 1830 and Rep. Pryor Gibson (D-Anson) has filed a companion bill, House Bill 2097.
As you recall this tax was implemented in last years? budget as part of the Medicaid swap. You will also recall that the land transfer tax increase has failed all 20 times that it?s appeared on county ballots since November 2007.
There may also be a bill or amendment to the budget to repeal the local sales tax option that was also part of the Medicaid swap last year. The sales tax has been before various counties? voters 37 times and has failed 29 times.
As our research staff pointed out in a series of Spotlights in fall of 2007 and April 2008 on the local tax options, tax increases of any kind would be unnecessary with better fiscal management and efficiency.
Perhaps the General Assembly would consider repealing the authority they gave the counties to enact either of the local tax options. It?s debatable whether the counties really need additional income or if this is just another grab at taxpayer money. And the voters have made it clear that they aren’t too interested in paying these additional taxes.
It?s also debatable if counties or the state should have taxing authority and if so how much and under what circumstances, which was the subject of an interesting email debate around the Locke Foundation this week. I would invite my colleagues to share their thoughts or suggestions?..
