A historical analysis of Property Reform Act of 2006

The South Carolina Property Tax Reform Bill was signed into law in June 2006 creating a new way of generating money for public education in South Carolina. The Property Tax Reform Act eliminated 100% of the fair market value of 4% owner-occupied property for the purposes of taxation for school operations. Additionally, the Act increased the sales tax by 1% on most goods. Further, the Act limited a local school district's ability to raise additional revenue.;The following qualitative study used historical research design with an emphasis on oral history. The researcher used the wealth neutrality theory for the theoretical basis. The purpose of this study was to describe the 2006 political climate that changed sources of revenue for public education. The study focused on the following overarching question: What were the political influences on the South Carolina General Assembly's 2006 enactment of Act 388, South Carolina Property Tax Reform Bill?;Among the responses to interviews, sixteen participants described their views of the importance and meaning of Act 388 in terms of taxpayer burden or alternately in terms of effects on public schools. The participants were selected from public officials including former and current members of the South Carolina General Assembly, grassroots taxpayer groups along with business and real estate representatives, media and other public policy observers and analysts. During the 2010 session of the South Carolina Legislature, the study participants responded to a structured interview protocol with three sets of questions and associated follow-up probes.;After a process of field notes and taking memos, the participants' points of view offered insights into six categories of responses associated with the purpose of this study. The six categories included the following: (a) equity for taxpayers, (b) shift in tax burden, (c) adequacy of resources, (d) Act 388 effects on education in South Carolina, (e) local control of schools, and (f) possible changes to Act 388. The practical implications of this study include encouraging policy makers to enact comprehensive tax reform in South Carolina. The ongoing effects of the global recession argue for further research on revenue generation for public schooling.