Leatherman Tax Realignment Commission Receives Senate Approval
Filed Under Caucus, Top News, Leatherman
Senator wants independent, objective analysis of current tax system.
Columbia, SC - The South Carolina Senate today took the first step in rebuilding a “cobbled together” tax code that no longer reflects the realities of the state’s current economic forces. Senate Finance Chairman Hugh Leatherman (R-Florence) introduced the legislation (S.1242) to establish the South Carolina Tax Realignment Commission earlier in this session and today the senate gave the idea second reading.
“It’s the only way I know to get an independent, objective analysis of our present tax system, and to retool the tax code to meet today’s challenges,” says Senator Leatherman. “A tax code based on the realities of today’s economic environment is absolutely essential if we are to have the quality of life that all of us want.”
The eleven-member commission will be charged with reviewing the current state tax code from top to bottom and making recommendations that are fair, equitable, and maintain or enhance the state’s competitive edge in attracting new business. The commission will consist of four members appointed by the Senate, four members appointed by the House, two members appointed by the Governor, and the Director of the Department of Revenue. Commission members appointed by the General Assembly must be highly qualified individuals with a background in public finance, tax law, economics, accounting or other related areas of expertise.
The commission’s recommendations will serve as the foundation for the future of South Carolina’s state tax code. Any major changes by the General Assembly to the commission’s initial recommendations would require a two-thirds majority vote in each chamber placing an additional procedural hurdle to amending the independent commission’s suggested legislation. Technical or minor changes would only require a simple majority vote.
“If we succeed, South Carolina would be the first state in the country to overhaul its tax code,” says Senator Leatherman. “We are competing in a knowledge-based global economy. Our competitors are no longer Georgia and North Carolina, but India and China. It is time we took a hard look at the state’s tax code.”
The commission’s final recommendations and proposed legislation would be submitted to the General Assembly by January 1, 2010 for its action.
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