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H. 3249
STATUS INFORMATION
General Bill
Sponsors: Rep. Hinson
Document Path: l:\council\bills\ggs\22731htc03.doc
Introduced in the House on January 14, 2003
Currently residing in the House Committee on Ways and Means
Summary: Public Service Authority, certain additional payments eliminated, additional payments to local governments increased, fee in lieu of must equal property taxes due
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 12/18/2002 House Prefiled 12/18/2002 House Referred to Committee on Ways and Means 1/14/2003 House Introduced and read first time HJ-102 1/14/2003 House Referred to Committee on Ways and Means HJ-102
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 58-31-80, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TAX EXEMPTION OF THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY, SO AS TO PROVIDE THAT THE PAYMENTS IN LIEU OF PROPERTY TAXES REQUIRED OF THE AUTHORITY MUST EQUAL THE PROPERTY TAXES OTHERWISE DUE ON THE PROPERTY USING VALUATION METHODS AND ASSESSMENT RATIOS APPLICABLE TO OTHER UTILITY PROPERTY AND CURRENT MILLAGE RATES IN THE VARIOUS PROPERTY TAXING ENTITIES AND TO PROVIDE FOR THE USE OF THIS FEE REVENUE BY LOCAL TAXING JURISDICTIONS; TO AMEND SECTION 58-31-90, RELATING TO ADDITIONAL PAYMENTS REQUIRED OF THE PUBLIC SERVICE AUTHORITY, SO AS TO ELIMINATE THE ADDITIONAL PAYMENTS REQUIRED UNDER THIS SECTION; AND TO AMEND SECTION 58-31-100, RELATING TO ADDITIONAL PAYMENTS TO LOCAL GOVERNMENTS REQUIRED OF THE PUBLIC SERVICE AUTHORITY, SO AS TO INCREASE THESE PAYMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 58-31-80 of the 1976 Code, as amended by Act 156 of 1987, is further amended to read:
"Section 58-31-80. The Public Service Authority is created primarily for the purpose of developing the Cooper River, the Santee River, the Congaree River, and their tributaries upstream to the confluence of the Broad and Saluda Rivers and upstream on the Wateree River to a point at or near Camden and other similar projects as instrumentalities of intrastate, interstate, and foreign commerce and navigation; of reclaiming wastelands by the elimination or control of flood waters, reforesting the watersheds of the rivers and improving public health conditions in those areas. It is found that the project authorized by this chapter is for the aid of intrastate, interstate, and foreign commerce and navigation, and that the aid and improvement of intrastate, interstate, and foreign commerce and navigation, the development, sale, and distribution of hydroelectric power, and the treatment, sale, and distribution of water at wholesale are in all respects for the benefit of all the people of the State, for the improvement of their health and welfare and material prosperity, and are public purposes, and being a corporation owned completely by the people of the State, the Public Service Authority is required to pay no taxes or assessments upon any of the property acquired by it for this project or upon its activities in the operation and maintenance of the project, except as provided in this section. The securities and other obligations issued by the Public Service Authority, their transfer, and the income from them at all times are free from taxation. However, unless otherwise provided in any a contract with an agency of the United States Government as assists in financing the projects contemplated in this section or any other agency from which the funds may be secured, all electrical energy developed by the authority must be sold at rates in the determination of which the taxes which the project would pay if privately owned, to the extent provided in this section, as well as other rate-making factors properly entering into the manufacture and distribution of the energy must be considered. After payment of necessary operating expenses and all annual debt requirements on bonds, notes, or other obligations at any time outstanding and the discharge of all annual obligations arising under finance agreements with the United States or any agency or corporation of the United States and indentures or other instruments under which bonds have been, or may be issued, the authority shall pay annually to the various counties property taxing jurisdictions of the State a sum of money fee equivalent to the amount paid for taxes on properties at the time of their acquisition by the authority, acquired, or to be acquired, in the counties, and the authority shall pay to all municipalities and school districts in the counties in which the authority has acquired, or may acquire properties, a sum of money equivalent to the amount paid for taxes to the school districts and municipalities on the properties at the time of their acquisition by the authority of property taxes that would be due on the authority's property if it were valued and assessed as other utility property is valued and assessed and using the current millage rate imposed by these jurisdictions; and no other taxes may be considered in the fixing of the rates of the authority. From The funds to be fees paid under this section the counties, school districts, and municipalities annually shall apply a sum sufficient for the debt requirements for bonds and other obligations of the counties, school districts, and municipalities for which the properties were taxed at the time of their acquisition by the authority, with the remainder of the funds to be expended in accordance with law to taxing jurisdictions must be used as if the amounts paid were property taxes."
SECTION 2. Section 58-31-90 of the 1976 Code is amended to read:
"Section 58-31-90. Beginning with the tax year 1965, After the payment of all necessary operating expenses and all annual debt requirements on bonds, notes, or other obligations at any time outstanding and the discharge of all obligations arising under finance agreements and indentures or other instruments under which bonds or obligations have been or may be issued, and after payment the authority must pay into the general fund of the State the sum of at least two hundred twenty-five thousand dollars annually, the South Carolina Public Service Authority shall pay annually to the counties of Orangeburg, Calhoun, Sumter, Clarendon, Berkeley, Horry and Georgetown and school districts therein additional sums of money in lieu of taxes on lands acquired prior to the year 1950 for reservoirs, lakes, canals, structures and adjoining properties of the Santee-Cooper Hydroelectric and Navigation Project in amounts equivalent to that paid in 1964 for sums in lieu of taxes on such lands to the counties and school districts therein. Provided, that all additional sums to be paid under this section shall be used for the support of the public schools within the counties and districts involved."
SECTION 3. Section 58-31-100 of the 1976 Code is amended to read:
"Section 58-31-100. Beginning with the fiscal year 1974-75 and In each fiscal year thereafter, after payment of the sums fees in lieu of taxes provided for by Sections Section 58-31-80 and 58-31-90, the Public Service Authority shall make the following additional payments in lieu of taxes:
(1) To any a county in which it holds legal title to lands developed for commercial or residential purposes, a sum equal to ten fifteen percent of the annual rentals received from the lease of those lands during the fiscal year.
(2) To the counties in which it owns, or leases and operates, electric generating facilities, a sum equal to fifteen twenty percent of the amount paid in the fiscal year into the general fund of the State, which sum shall must be allocated among the counties concerned in the proportion which the generating capacity of the Public Service Authority located and in operation in each such county bears to the total of the Public Service Authority's generating capacity located and in operation in all such those counties.
(3) To the counties of Berkeley, Horry, and Georgetown, a sum equal to ten fifteen percent of the amount paid during the fiscal year into the general fund of the State, which sum shall must be allocated among those counties in the proportion which the kilowatt hour sales, excluding sales for resale, made by the Public Service Authority in each such county bears to the total of the kilowatt-hour sales, excluding sales for resale, made by the Public Service Authority in all such those counties."
SECTION 4. This act takes effect upon approval by the Governor, and for purposes of the fee required pursuant to Section 58-31-80 of the 1976 Code as amended by this act applies for property tax years beginning after 2002. This act applies for payments required pursuant to Section 58-31-100 of the 1976 Code as amended by this act for fiscal years beginning after June 30, 2003.
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