Last effort

THE ISSUE

Gov. Bob Riley is offering a package of compromises on tax initiatives that could provide tax relief for some and higher taxes for others on the final day of the legislative session.

In a last-ditch effort to salvage several key tax bills in this year's legislative session, Gov. Bob Riley made stops at several airports this week to generate

publicity.

At stake are bills that would ask voters to eliminate the state sales tax on groceries and return property tax appraisals to a four-year cycle instead of the current annual appraisals. Also at stake is a bill that would exempt the federal taxes paid by state residents from state taxation.

Riley's compromises would eliminate 3 of the 4 cents in state sales tax on groceries, allow state residents with incomes of $100,000 or less to keep all the state deduction for federal taxes, and gradually tax those earning up to $400,000. The deduction would be eliminated for those earning more than $400,000.

The federal tax deduction is tied to the elimination of the state sales tax on food in a bill introduced by Rep. John Knight. His bill would replace reveune lost by the state from the sales tax by eliminating the federal tax deduction for all tax filers. Riley's substitution would be a compromise that spares middle-income and many upper-income filers.

The property appraisal bill has been a hot topic for two years, but efforts to return appraisals to once every four years can't get traction in the Legislature. Riley ordered appraisals to be done annually, which he said meets the intent of the state tax code. By placing the matter on the general election ballot, the onus would be taken off the governor and the Legislature to act, even though state finance officials say returning to four-year appraisals would cost local governments revenue for local services.

What Riley is offering seems to have a little something for everyone, though we think the income cap for the federal tax deduction elimination is too high. We also think annual property appraisal is the fair and sensible way to tax property.

But at least Riley is trying to stimulate action as the legislative session limps toward its last day on May 19.