Top Three Things You Need to Know: State Budget Bill, Business License Taxes and the Death of Ethics Reform
February 16, 2015
By Ashley Hunter
1. On Tuesday, February 17th, the members of the House Ways and Means Committee will begin their work on the State Appropriations Bill. After the Governor delivers her proposed budget plan to legislators, the Bill is developed in the House of Representatives and is debated in the various Ways and Means subcommittees, the full Ways and Means committee and then by all 124 House members. It is then sent to the Senate where it is debated in Senate Finance subcommittees, the full Senate Finance Committee and then the full Senate. Both House and Senate subcommittee have been holding hearings for various agencies impacted by the State Budget since December. Not counting federal funds or various other funds like fee and fines, the recurring General Fund for the State is just over $6.9 billion. This year, the Board of Economic Advisors has stated that there is a budget surplus of just over $19 million.
2. Senate Ethics Reform Bill (1), by Senator Larry Martin (R-Pickens) failed to receive second reading last week by a vote of 24-19 in the SC Senate. (A bill must receive three readings from each body in order to pass. Typically, most of the debate is held during the second reading.) The crux of the bill was the independent investigation committee that would have been charged with reviewing legislators’ compliance with the state ethics laws. Currently, the House and Senate Ethics committees investigates their own legislators. Senate Ethics Chairman Luke Rankin (R-Myrtle Beach) proposed a compromise amendment that would create a separate body to investigate legislators. Five of the nine members would have been appointed by the governor and attorney general, with the other four being legislators.
Senator Martin made the motion to reconsider the vote on the bill, which will allow the bill to be debated at a later time if a compromise can be reached. There are still three bills in the House that deal with Ethics Reform.
3. On February 3rd, Representative Rick Quinn (R-Lexington) introduced 3490. This is a bill would cap the business license tax at $100 for each business and would also eliminate the requirement that the tax be calculated based on gross revenue. Two other business license bills have also been introduced. Rep. Samuel Rivers (R-Berkeley) introduced H. 3337 that would prohibit cities and towns from charging a business license tax at all. Rep. Jimmy Merrill (R- Daniel Island) introduced H. 3233 that would change the business license calculation from gross receipts to number of employees. Critics of these bills state that this could cause personal property tax increases and decreased services for taxpayers. Supporters of these bills say that it will help some businesses budget from year to year and have a lower tax bill from their local government.
For more information about legislative issues, you can contact Ashley Hunter, Vice President of McKay Public Affairs (MPA) at [email protected]. Recently, MPA also started a new blog on fashion and politics. Find out more at www.peplumandpolitics.com.
