STATE — An effort to examine the state’s “antiquated and piecemealed” tax structure moved one step closer to fruition last week, as the state Senate approved the creation of the Tax Realignment Commission (TRAC).

Legislators began this year’s legislative session with the creation of a independent panel that would review tax codes without fear of political bias high on their legislative priority list.

In January, Senate Finance Committee Chairman Hugh Leatherman, R-Florence, called the TRAC Commission legislation “the most important piece of legislation we’ll pass all year.”

Legislators believe the tax code is an obstruction to economic growth, and that such an examination is critical in a time when the state’s unemployment rate is 9.5 percent, the nation’s third highest rate.

“I believe that the creation of this commission is the best way for South Carolina to re-vamp our outdated tax laws,” Leatherman said in a release Wednesday. “We must take a serious look at how our tax code works and this commission will be the most effective way for us to do just that. I look forward to final passage in the days to come.”

The TRAC Commission would examine the state’s tax codes comprehensively and report back to the General Assembly with recommendations.

The General Assembly would then vote on the commissions recommendations, with a two-thirds vote in both Houses needed to change a recommendation.

“This, in my opinion, is the only way we will ever get tax reform,” Leatherman said.

The Commission would only examine state tax structure, not local taxation, Leatherman said.

The commission will be made up of appointees from the Speaker of the House, the

Senate President Pro Tem, the chairmen of the Ways and Means and Finance Committees, and the majority and minority leaders of the house.

The Governor would also have two appointees on the board.

Once the Commission is created, Leatherman said he hope the commission would report its findings January 1, 2011.

“Some will you tell you that’s too long a time frame,” he said. “Those who tell you that don’t understand the complexity of what we’re looking at here.”