Current Status Introducing Body:House Bill Number:4817 Primary Sponsor:Sharpe Committee Number:30 Type of Legislation:JR Subject:Taxation, taxes not to be increased Residing Body:House Current Committee:Ways and Means Computer Document Number:4817 Introduced Date:19940224 Last History Body:House Last History Date:19940224 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Sharpe Hutson Wells A. Young Snow D. Smith Lanford Vaughn Meacham Fulmer Witherspoon Davenport R. Smith Waldrop G. Bailey Townsend Elliott H. Brown Koon Riser Gamble Type of Legislation:Joint Resolution
Bill Body Date Action Description CMN Leg Involved
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4817 House 19940224 Introduced, read first time, 30
referred to Committee
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PROPOSING AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO FINANCE AND TAXATION, BY ADDING AN APPROPRIATELY NUMBERED SECTION SO AS TO PROVIDE THAT STATE TAXES MAY NOT BE INCREASED AND NEW STATE TAXES MAY NOT BE IMPOSED EXCEPT UPON A FAVORABLE VOTE OF THE QUALIFIED ELECTORS OF THE STATE IN A REFERENDUM, TO LIMIT INCREASES IN STATE SPENDING TO THE INCREASE IN THE CONSUMER PRICE INDEX AND PROVIDE EXCEPTIONS, TO AUTHORIZE THE GOVERNOR TO DECLARE A FISCAL EMERGENCY THAT SUSPENDS THE LIMITATIONS IMPOSED BY THIS SECTION FOR THE DURATION OF THE EMERGENCY AND ESTABLISH HOW THE LIMITATIONS ARE REIMPOSED AND TO PROVIDE THAT THE GENERAL ASSEMBLY SHALL PROVIDE BY LAW FOR THE IMPLEMENTATION OF THESE LIMITATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. It is proposed that Article X of the Constitution of this State be amended by adding an appropriately numbered section to read:
"SECTION ___. (a)(1) After the ratification of this section, no legislation increasing an existing tax imposed by the State above the rate in effect immediately before ratification may take effect unless the increase is first approved by a majority of the qualified electors of the State voting in a referendum held on the question of increasing the tax.
(2) After the ratification of this section, no legislation imposing a new tax by the State may take effect unless the new tax is first approved by a majority of the qualified electors of the State voting in a referendum held on the question of imposing the new tax.
(3) The provisions of this subsection are cumulative to any other limitations on tax increases or new taxes provided by this Constitution or other provision of law except that this subsection does not apply to a tax levied pursuant to Section 13(4) of this article.
(b) (1) In addition to all other limitations on public spending in a fiscal year, and beginning with spending in fiscal year 1995-96, spending in a fiscal year by the State may not exceed spending by the State in the preceding fiscal year by more than a percentage equal to the annual rate of inflation. The limitation imposed by this subsection does not apply to spending financed by bonded indebtedness and spending of revenues not derived from taxes imposed by the State. However, if a fee is imposed by the State to provide substantially the same service formerly funded by the State from tax revenues, the limitation provided by this subsection applies to the fee revenues.
(2) For purposes of calculating the spending increases allowed pursuant to this subsection, the annual rate of inflation is the total increase in the consumer price index as measured by the United States Department of Labor occuring in the last calendar year ending before the applicable fiscal year.
(c) If the Governor concludes that prevailing economic conditions and the fiscal condition of the State so necessitate, he may by executive order declare a fiscal emergency for a specifically limited time period. The limitations imposed by this section are suspended for the duration of the fiscal emergency. When the fiscal emergency ends, the limitations imposed by this section are reinstated except that:
(1) the limitations on taxes apply to tax rates and taxes imposed at the time the fiscal emergency ends; and
(2) the spending limitation applies effective with the first fiscal year beginning after the fiscal emergency ends.
(d) The General Assembly shall provide by law for the implementation of the limitations imposed by this section."
SECTION 2. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Article X of the Constitution of this State be amended by adding an appropriately numbered section that provides that no tax imposed by the State may be increased or new state tax imposed unless the majority of the qualified electors of the State voting in a referendum approve the increase or new tax and to provide that this limitation is cumulative to other limitations on the taxing power and that the limitation does not apply to a statewide property tax levied to avoid default on state bonds, to limit spending increases by state government to the rate of increase of the consumer price index and exempt from the limitation spending financed by bonded indebtedness or financed by revenues not derived from state taxes and apply the limit to any fee revenues when the fee is for a service formerly funded by state tax revenues, to authorize the Governor to declare a fiscal emergency which suspends these limitations for its duration and provide for the reimposition of the limitations after the emergency and to provide that the General Assembly shall provide by law for the implementation of these limitations?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word `Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word `No'."