S 0173 General Bill, By Bryan, Elliott, Ford, McConnell, Passailaigue and 
Ravenel
 A BILL TO AMEND SECTION 12-37-251, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO THE PROPERTY TAX RELIEF FUND, BY PROVIDING THAT TAXING
 DISTRICTS MUST BE REIMBURSED ON A PER CAPITA BASIS FROM REVENUES CREDITED TO
 THE STATE PROPERTY TAX RELIEF FUND AND TO PROVIDE THAT NINETY PERCENT OF THE
 REIMBURSEMENT MUST BE PAID BY OCTOBER THIRTY-FIRST AND THE BALANCE OF THE
 REIMBURSEMENT MUST BE PAID NO LATER THAN THE SUCCEEDING APRIL FIRST.

   01/15/97  Senate Introduced and read first time SJ-3
   01/15/97  Senate Referred to Committee on Finance SJ-3
   03/04/98  Senate Committee report: Majority favorable, minority
                     unfavorable Finance SJ-7

COMMITTEE REPORT

March 4, 1998

S. 173

Introduced by Senators Bryan, Passailaigue, Elliott, Ford, McConnell and Ravenel

S. Printed 3/4/98--S.

Read the first time January 15, 1997.

To whom was referred a Bill (S. 173), to amend Section 12-37-251, as amended, Code of Laws of South Carolina, 1976, relating to the Property Tax Relief Fund, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

Majority favorable. Minority unfavorable.

JOHN DRUMMOND NIKKI G. SETZLER

For Majority. For Minority.

According to the State Treasurer's office, this bill will cause a $1.0 million loss for the state general fund revenue in FY 98-99. Also, this bill changes the distribution of the property tax relief.

Currently, 90% of the tax relief money is sent to the counties on December first. Because this bill changes that date to October thirty-first, one month of interest will not be credited to the state general frund. The State Treasurer's office estimates one month's of interest for this account to be $1.0 million.

The attached sheet compares the tax relief distribution for tax year 1996, and the distribution that would have resulted from using a per capita method.

Approved By:

William C. Gillespie

Board of Economic Advisors

A BILL

TO AMEND SECTION 12-37-251, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROPERTY TAX RELIEF FUND, BY PROVIDING THAT TAXING DISTRICTS MUST BE REIMBURSED ON A PER CAPITA BASIS FROM REVENUES CREDITED TO THE STATE PROPERTY TAX RELIEF FUND AND TO PROVIDE THAT NINETY PERCENT OF THE REIMBURSEMENT MUST BE PAID BY OCTOBER THIRTY-FIRST AND THE BALANCE OF THE REIMBURSEMENT MUST BE PAID NO LATER THAN THE SUCCEEDING APRIL FIRST.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 12-37-251 (A) and (B) of the 1976 Code, as last amended by Section 33, Part II, Act 458 of 1996, is further amended to read:

"Section 12-37-251. (A) The State Property Tax Relief Fund shall must be established at an amount equal to the revenue necessary to fund a property tax exemption of one hundred thousand dollars based on the fair market value of property classified pursuant to Section 12-43-220(c) calculated on the school operating millage imposed for tax year 1995, excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital construction. The 1995 tax year school operating millage is the base year millage for purposes of calculating the amount necessary to fund the State Property Tax Relief Fund in accordance with this section. However, in years in which the values resulting from a county-wide reassessment and equalization program are implemented, the base year millage must be adjusted to an equivalent millage rate in the manner that the Department of Revenue and Taxation shall prescribe prescribes. Funds distributed to a taxing district as provided in item (B) of this section must be used to provide a uniform property tax exemption for all property in the taxing district which is classified pursuant to Section 12-43-220(c), excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital construction.

(B) School Taxing districts must be reimbursed, in the manner provided in Section 12-37-270, for the revenue lost as a result of the homestead exemption provided in this section except that on a per capita basis from revenues credited to the State Property Tax Relief Fund. ninety Ninety percent of the reimbursement must be paid in the last quarter of the calendar year by October thirty-first and the balance paid no later than the succeeding April first. If amounts received by a school district pursuant to this distribution are insufficient to reimburse fully for the base year operating millage, the county shall calculate a school operating millage sufficient to make up the shortfall which must be imposed on all property classified pursuant to Section 12-43-220(c) without regard to the exemption allowed pursuant to this section. Amounts received by a district in excess of the amount necessary to reimburse the district for the base year operating millage may be retained by the district."

SECTION 2. This act takes effect upon approval by the Governor.