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Alexander         Boan             Bryan

Cork              Courtney         Drummond

Ford              Giese            Glover

Hayes             Holland          Jackson

Land              Lander           Leatherman

Martin            Matthews         McGill

Moore             Patterson        Rankin

Ryberg            Saleeby          Smith, G.

Smith, J.V.       Stilwell         Washington

Courson           Elliott          Gregory

Leventis          McConnell        Mescher

O'Dell            Passailaigue     Peeler

Reese             Richter          Rose

Russell           Setzler          Short

Thomas            Waldrep          Wilson

The amendment was laid on the table.

I have generally supported the plan to allow the state's electorate to vote for a sales tax to eliminate residential property tax. However, Amendment No. 6A incorporates changes in the income tax that will raise the income tax burden on the average two-income, middle-class family. For that reason, I believe the amendment requires further scrutiny.

The Senate proceeded to a consideration of Amendment No. 7.

Having voted on the prevailing side, Senator FORD moved to reconsider the vote whereby Amendment No. 3, proposed by Senators PASSAILAIGUE, McCONNELL and ROSE, was tabled.

Senator LEATHERMAN raised a Point of Order that the motion to reconsider was out of order inasmuch as the Reading Clerk had begun reading the subsequent amendment and the motion came too late.

Senator McCONNELL spoke on the Point of Order.

The PRESIDENT sustained the Point of Order.

Senator ELLIOTT proposed the following Amendment No. 7 (JIC\6068HTC.95), which was tabled:

Amend the bill, as and if amended, Section 2, page 5, by inserting an appropriately lettered subsection immediately after line 10 to read:

/ . The provisions of this section do not apply in any county in which is collected four million dollars or more annually in accommodations tax revenues./

Reletter subsections to conform.

Amend title to conform.

Senator ELLIOTT explained the amendment.

Senator ELLIOTT moved that the amendment be adopted.

Senator LEATHERMAN argued contra to the adoption of the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Alexander         Boan             Bryan

Cork              Courtney         Drummond

Giese             Gregory          Hayes

Jackson           Land             Lander

Leatherman        Martin           McGill

Moore             Ryberg           Saleeby

Setzler           Smith, J.V.      Stilwell

Waldrep           Williams

Courson           Elliott          Ford

Leventis          McConnell        Mescher

O'Dell            Passailaigue     Peeler

Reese             Richter          Rose

Russell           Smith, G.

The amendment was laid on the table.

Senators WASHINGTON and WILSON desired the Journal to reflect that they were attending a meeting of a Committee of Conference on H. 3613 when this vote on Amendment No. 7 was taken. Had we been present during this vote, we would have voted not to table Amendment No. 7.

Having voted on the prevailing side, Senator FORD moved to reconsider the vote whereby Amendment No. 3, proposed by Senators PASSAILAIGUE, McCONNELL and ROSE, was tabled.

Senator LEATHERMAN moved to table the motion.

Senator LEATHERMAN explained the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Boan              Bryan            Cork

Courtney          Drummond         Hayes

Holland           Jackson          Land

Lander            Leatherman       McGill

Moore             Rankin           Ryberg

Saleeby           Smith, G.        Smith, J.V.

Stilwell          Williams

Alexander         Courson          Elliott

Ford              Giese            Gregory

Leventis          Martin           McConnell

Mescher           O'Dell           Passailaigue

Peeler            Reese            Richter

Rose              Russell          Setzler

Waldrep

The motion to reconsider was laid on the table.

Senators WASHINGTON and WILSON desired the Journal to reflect that they were attending a meeting of a Committee of Conference on H. 3613 when this vote on the motion to table the motion to reconsider was taken. Had we been present during this vote, we would have voted not to table the motion to reconsider.

Senator ELLIOTT proposed the following Amendment No. 8 (JIC\6066HTC.95), which was tabled:

Amend the bill, as and if amended, by striking SECTION 2 and inserting:

/SECTION 2. A. The county election commission in each county shall conduct a referendum in the county on November 7, 1995, on the question of imposing a one cent sales and use tax in the county area in order to provide a property tax credit against the tax liability on owner-occupied residential property. The state election laws apply to this referendum, mutatis mutandis. The commission shall canvass the results of the referendum and certify the results to the county council and to the director of the Department of Revenue and Taxation. The referendum question must read substantially as follows:

"Do you favor imposing a one cent sales, use, and casual excise tax in County in order to grant a credit against the property tax liability on each owner-occupied residential property in the county?

[] Yes

[] No

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

B. In each county in which a majority "yes" vote is certified in the referendum required pursuant to subsection A of this section, the tax authorized pursuant to Chapter 10, Title 4 of the 1976 Code is imposed in the county effective January 1, 1996, except that the revenue from this tax must be credited to a separate fund in the State Treasury styled The County Homeowner's Property Tax Credit Fund. Revenue in this fund must be distributed quarterly to the county for the credit of the taxing entities in the county area in the proportion that the amount of tax imposed by the taxing entity on owner-occupied residential property is of the total of such taxes imposed in the county area by all taxing entities in the county. A credit is allowed against the total tax liability on each parcel in the county area assessed pursuant to Section 12-43-220(c) of the 1976 Code, and the credit must be calculated in the manner provided in Section 4-10-40(B) of the 1976 Code. The tax imposed pursuant to this section may be in addition to the tax imposed pursuant to Chapter 10, Title 4 of the 1976 Code under the referendum provided in Section 4-10-30 of the 1976 Code.

C. If a majority "no" vote is certified in the referendum provided pursuant to subsection A, another referendum may be ordered by the governing body of the county, but any subsequent referendum may be held only at the time of the general election. A majority "yes" vote in a subsequent referendum shall result in imposition of the additional tax on the succeeding January first. Once imposed, the tax authorized by this section may be rescinded in the manner provided in Section 4-10-35 of the 1976 Code, mutatis mutandis./

Amend title to conform.

Senator ELLIOTT explained the amendment.

Senator LEATHERMAN argued contra to the adoption of the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Alexander         Boan             Bryan

Cork              Courtney         Drummond

Giese             Hayes            Holland



Printed Page 3385 . . . . . Tuesday, May 30,
1995

Jackson           LandLander

Leatherman        Leventis         Martin

Moore             Ryberg           Smith, J.V.

Stilwell          Williams

Courson           Elliott          McConnell

McGill            Mescher          O'Dell

Passailaigue      Peeler           Rankin

Reese             Richter          Rose

Russell           Setzler          Smith, G.

Waldrep           Wilson

The amendment was laid on the table.

At 5:20 P.M., Senator MARTIN assumed the Chair.

Senator ROSE proposed the following Amendment No. 10 (3901R007.MTR), which was tabled:

Amend the bill, as and if amended, by adding an appropriately numbered new SECTION to read:

/SECTION . Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-75. In a reassessment year, the governing body of a political subdivision may not collect an increase in the millage it imposes for a tax year over the millage it imposed for the prior year in an amount greater than the consumer price index in effect on the date of reassessment, except by referendum. If the consumer price index allows a millage increase without a referendum and no additional millage is imposed for that tax year, then the millage that may be imposed for any succeeding tax year without a referendum may be increased by the millage rate increase allowed but not imposed for any prior tax year.

In a reassessment year, when the governing body of a political subdivision increases the millage rate it imposes in an amount greater than the consumer price index in effect on the date of reassessment, the amount

Amend title to conform.

Senator ROSE explained the amendment.

Senator LEATHERMAN made the point that a quorum was not present. It was ascertained that a quorum was present. The Senate resumed.

Senator ROSE continued arguing in favor of the adoption of the amendment and Senator LEATHERMAN argued contra.

Senator LEATHERMAN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Alexander         Boan             Bryan

Cork              Courtney         Glover

Hayes             Holland          Jackson

Land              Lander           Leatherman

Leventis          Martin           Matthews

Moore             O'Dell           Patterson

Rankin            Ryberg           Short

Smith, G.         Smith, J.V.      Stilwell

Thomas            Waldrep          Williams

Courson           Elliott          Ford

Giese             McConnell        McGill

Mescher           Passailaigue     Peeler

Reese             Richter          Rose



Printed Page 3387 . . . . . Tuesday, May 30,
1995

Russell           SetzlerWashington

Wilson

The amendment was laid on the table.

Senator RANKIN proposed the following Amendment No. 11 (JIC\6052HTC.95):

Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

/SECTION . A. Chapter 37, Title 12 of the 1976 Code is amended by adding:

Section 12-37-505. This article may be cited as the Homestead Property Tax Deferral for the Elderly Act.

Section 12-37-510. As used in this article:

(1) `Gross household income' means all income, for all individuals residing within the household, from whatever source derived including, but not limited to, the following sources:

(a) compensation for services including fees, commissions, and similar items;

(b) gross income derived from business;

(c) gains derived from dealings in property;

(d) interest;

(e) rents;

(f) royalties;

(g) dividends;

(h) alimony and separate maintenance payments;

(i) income from life insurance and endowment contracts;

(j) annuities;

(k) pensions;

(l) income from discharge of indebtedness;

(m) distributive share of partnership gross income;

(n) income from an interest in an estate or trust; and

(o) federal old-age, survivor, or disability benefits.

(2) `Household' means an individual or group of individuals living together in a room or group of rooms as a housing unit.

Section 12-37-515. (A) Any individual who is entitled to claim a homestead exemption pursuant to Section 12-37-250 may elect to defer payment of all or part of the ad valorem taxes levied on his homestead by filing an annual application for tax deferral with the tax collector before May first of the year for which the deferral is sought. If the homestead for which a deferral is requested has an assessed value for purposes of ad valorem taxation of two thousand dollars or more, the deferral may apply only to the taxes on that portion of the assessed value which is two thousand dollars or less.

(B) It is the duty of each applicant for a deferral to demonstrate affirmatively his compliance with the requirements of this article.

Section 12-37-520. (A) As an alternative to the tax deferral authorized by Section 12-37-515, an individual who is entitled to claim a homestead exemption pursuant to Section 12-37-250 may elect to defer payment of all or any part of that portion of the ad valorem taxes levied on the individual's homestead which exceeds four percent of the individual's gross household income for the immediately preceding calendar year. An application for tax deferral under this section must be filed annually with the tax collector before May first of the year for which the deferral is sought. If an individual files for a tax deferral under this section, he may not file for a tax deferral under Section 12-37-515.

(B) The amount of the assessed value of the homestead does not limit the tax deferral authorized by this section.

(C) It is the duty of each applicant for a deferral under this section to demonstrate affirmatively the applicant's compliance with this section and other provisions of this article.

Section 12-37-522. No tax deferral in any one year may be granted pursuant to Section 12-37-515 or Section 12-37-520:

(1) if the total amount of deferred taxes and interest plus the total amount of all other unsatisfied liens on the homestead exceeds eighty-five percent of the fair market value of the homestead as shown on the county tax duplicate for the immediately preceding tax year;

(2) if the applicant's gross household income for the immediately preceding calendar year exceeds twenty thousand dollars;

(3) if the homestead for which the deferral is sought is subject to any lien, the terms of which are dictated by federal law, rule, or regulation prohibiting deferral of taxes; or

(4) with respect to taxes levied to retire bonded indebtedness or for special assessments.

(B) A form of oath must be provided and administered to the individual seeking the deferral. The oath may be administered by the tax collector or any individual authorized by law to administer oaths.

(C) (1) The tax collector shall consider each annual application for homestead tax deferral within thirty days of the date the application is filed or as soon as practicable thereafter. If the tax collector finds that the applicant is entitled to the tax deferral, he shall approve the application and file the application in the permanent records. If the tax collector finds that the applicant is not entitled to the deferral, he shall send a notice of disapproval to the applicant giving his reasons for the disapproval within thirty days of the filing of the application either by personal delivery or by certified mail to the mailing address given by the applicant, and he shall make a return on the original notice of the manner in which the notice was served on the applicant and shall file the return among the permanent records of his office. The original notice of disapproval sent to the applicant must advise the applicant of his right to appeal the decision of the tax collector to the Administrative Law Judge Division and must inform the applicant of the procedure for filing an appeal.

(2) An appeal of the decision of the tax collector to the Administrative Law Judge Division must be in the manner provided by law for appeals to the division.

(D) Each application must contain a list and the current value of all outstanding liens on the applicant's homestead.

(E) If proof of fire and extended coverage insurance has not been furnished with a prior application, each applicant shall furnish proof of this insurance in an amount which is in excess of the sum of all outstanding liens and deferred taxes and interest with a loss payable clause to the tax collector.

Section 12-37-530. (A) The amount of taxes deferred pursuant to this article accrues interest until paid at the rate of eight percent a year.

(B) Interest on taxes deferred pursuant to this article in any year begins accruing on the date the taxes were due.

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