Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 12:00 Noon, the hour to which it stood adjourned and was called to order by the PRESIDENT Pro Tempore.
A quorum being present the proceedings were opened with a devotion by the Chaplain as follows:
Beloved, the Twenty-Third Psalm has sustained believers in every age. Hear the opening verses of what is called "The Divine Shepherd Psalm:"
"The Lord is my shepherd, I shall
not want.
He makes me lie down in green pastures.
He leads me beside still waters;
He restores my soul.
He leads me in right paths for His
name's sake."
Let us pray.
Good Lord, kind Lord, perhaps sometimes the immediacy of our burdens might cause us to have a tendency to maximize our troubles.
At those times help us to maximize our blessings. Indeed, we do have so much for which to be thankful!
Thank You, Lord!
O Thou who art the Light of the World, and our Good Shepherd; help us to walk as children of the Light!
Amen!
The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
February 12, 1996
Mr. President and Members of the Senate:
I am transmitting herewith an appointment for confirmation. This appointment is made with the "advice and consent of the Senate," and is, therefore, submitted for your consideration.
Respectfully,
David M. Beasley
Initial Appointment, State Human Affairs Commission, with term to commence June 30, 1995, and to expire June 30, 1998:
6th Congressional District:
Mr. Jerome Heyward, Apartment 514, 1916 Sam Rittenberg Boulevard, Charleston, S.C. 29407 VICE Fred L. Sumpter
Referred to the Committee on Judiciary.
February 13, 1996
Mr. President and Members of the Senate:
I am transmitting herewith appointments for confirmation. These appointments are made with the "advice and consent of the Senate," and are, therefore, submitted for your consideration.
Respectfully,
David M. Beasley
Initial Appointment, Advisory Council to the Continuum of Care for Emotionally Disturbed Children, with term to commence June 30, 1995, and to expire June 30, 1999:
Parent:
Ms. Jane J. Ferguson, 2280 Clematis Trail, Sumter, S.C. 29150 VICE Brenda C. Miller
Referred to the Committee on Medical Affairs.
Initial Appointment, Commission on Higher Education, with term to commence July 1, 1996, and to expire July 1, 2000:
At-Large:
Mr. Winfred S. Greene, 1704 Phelps Street, Columbia, S.C. 29205
Referred to the Committee on Education.
Initial Appointment, South Carolina Public Service Authority, with term to commence May 19, 1991, and to expire May 19, 1998, service to begin July 10, 1996:
3rd Congressional District:
Honorable Claude V. Marchbanks, Post Office Box 531, Clemson, S.C. 29631 VICE B.L. Hendricks, Jr. (deceased)
Referred to the General Committee
February 15, 1996
Mr. President and Members of the Senate:
I am transmitting herewith appointments for confirmation. These appointments are made with the "advice and consent of the Senate," and are, therefore, submitted for your consideration.
Respectfully,
David M. Beasley
Initial Appointment, State Human Affairs Commission, with term to commence June 30, 1993, and to expire June 30, 1996:
1st Congressional District:
Ms. Leah F. Chase, Post Office Box 32123, Charleston, S.C. 29417-2123 VICE Ann Lucas (deceased)
Referred to the Committee on Judiciary.
Reappointment, State Human Affairs Commission, with term to commence June 30, 1996, and to expire June 30, 1999:
1st Congressional District:
Ms. Leah F. Chase, Post Office Box 32123, Charleston, S.C. 29417-2123
Referred to the Committee on Judiciary.
February 22, 1996
Mr. President and Members of the Senate:
I am transmitting herewith appointments for confirmation. These appointments are made with the "advice and consent of the Senate," and are, therefore, submitted for your consideration.
Respectfully,
David M. Beasley
Initial Appointment, Director of the Department of Health and Human Services, with term to commence February 13, 1996, and to expire at the pleasure of the Governor:
Ms. Gwendolyn G. Power, 3011 Lindenwood Drive, Columbia, S.C. 29204 VICE E. Anderson Laurent (resigned)
Referred to the Committee on Medical Affairs.
Initial Appointment, Commission of Hearing Aid Specialists, with term to commence November 1, 1993, and to expire November 1, 1997:
Otolaryngologist:
Tab E. Thompson, M.D., Suite 203, 2750 Laurel Street, Columbia, S.C. 29204 VICE J. Capers Hiott
Referred to the Committee on Medical Affairs.
Reappointment, South Carolina Board of Occupational Therapy, with term to commence September 30, 1996, and to expire September 30, 1999:
Public:
Mrs. Wilma L. Kelly, Route 4, Box 1346, Bishopville, S.C. 29010
Referred to the Committee on Labor, Commerce and Industry.
February 23, 1996
Mr. President and Members of the Senate:
I am transmitting herewith an appointment for confirmation. This appointment is made with the "advice and consent of the Senate," and is, therefore, submitted for your consideration.
Respectfully,
David M. Beasley
Initial Appointment, South Carolina Mental Health Commission, with term to commence March 14, 1994, and to expire March 14, 1998:
6th Congressional District:
Mr. Leon Finklin, 4011 Ensor Avenue, Columbia, S.C. 29203 VICE Laura R. Dawson (resigned)
Referred to the Committee on Medical Affairs.
At 12:13 P.M., Senator PEELER assumed the Chair.
At 12:15 P.M., Senator MATTHEWS requested a leave of absence beginning at 1:00 P.M. until 10:00 A.M. on Wednesday, March 13, 1996.
On motion of Senator COURTNEY, at 12:17 P.M., Senator WALDREP was granted a leave of absence until 4:00 P.M.
On motion of Senator MOORE, at 12:20 P.M., Senator SALEEBY was granted a leave of absence for today.
Columbia, S.C., March 7, 1996
Mr. President and Senators:
The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 4625 -- Reps. Phillips and McCraw: A BILL TO AMEND ACT 587 OF 1992, RELATING TO THE ELECTION OF MEMBERS OF THE BOARD OF TRUSTEES OF CHEROKEE COUNTY SCHOOL DISTRICT 1, SO AS TO REVISE THE DATES OF THE FILING PERIOD WHEN CANDIDATES MAY FILE WRITTEN DECLARATIONS OF CANDIDACY.
and has ordered the Bill Enrolled for Ratification.
Very respectfully,
Speaker of the House
Received as information.
The following were introduced:
S. 1243 -- Senators Setzler, Lander and Giese: A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY ADDING CHAPTER 40 SO AS TO ENACT THE "SOUTH CAROLINA CHARTER SCHOOLS ACT OF 1996" WHICH PROVIDES FOR THE MANNER IN WHICH A CHARTER SCHOOL SHALL BE FORMED, FUNDED, REGULATED, AND GOVERNED.
Read the first time and referred to the Committee on Education.
S. 1244 -- Senators Ryberg, Gregory, Jackson, Wilson and Giese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 5-7-195 SO AS TO PROVIDE FOR THE ELECTION OF ADDITIONAL MEMBERS TO MUNICIPAL COUNCILS TO REPRESENT NONRESIDENT RESIDENTIAL MUNICIPAL WATER AND SEWER CUSTOMERS WHEN SUCH CUSTOMERS ARE CHARGED HIGHER RATES FOR THESE UTILITIES THAN ARE RESIDENTIAL CUSTOMERS WITHIN THE MUNICIPALITY'S BOUNDARIES, TO LIMIT THE MATTERS ON WHICH THESE SPECIAL COUNCIL MEMBERS ARE ALLOWED TO VOTE TO UTILITY OPERATIONS, TO PROVIDE FOR THE NUMBER OF SPECIAL MEMBERS, THE NOMINATION AND ELECTION PROCEDURES AND TERMS, AND TO PROVIDE THAT THE MUNICIPAL ELECTION COMMISSION SHALL CONDUCT THE ELECTIONS NECESSARY FOR THE IMPLEMENTATION OF THIS SECTION.
Read the first time and referred to the Committee on Judiciary.
H. 3062 -- Reps. Vaughn, Cato, Cromer, Walker, Cooper, Stille, Kelley, Harrell, Gamble, Spearman, Robinson, Marchbanks and Shissias: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 2-1-105 SO AS TO PROHIBIT A MEMBER OF THE GENERAL ASSEMBLY FROM BEING ELECTED TO A SALARIED OFFICE OR POSITION WHILE HE IS A MEMBER OF THE GENERAL ASSEMBLY AND TO MAKE EXCEPTIONS.
Read the first time and referred to the Committee on Judiciary.
H. 4689 -- Reps. Witherspoon, Worley, Martin, Keegan and Kelley: A BILL TO AMEND ACT 239 OF 1983, RELATING TO THE PROCEDURE BY WHICH THE BUDGET FOR THE OPERATION OF THE SCHOOLS IN HORRY COUNTY IS PREPARED, INCLUDING THE MILLAGE AND THE APPROVAL PROCESS, SO AS TO REVISE THE PROCEDURE FOR PREPARING THE ANNUAL SCHOOL BUDGET, TO REVISE THE DATE BY WHICH SCHOOL BUDGETS MUST BE SUBMITTED TO THE COUNTY BOARD OF EDUCATION, AND TO PROVIDE THAT THE HORRY COUNTY BOARD OF EDUCATION BEGINNING WITH THE YEAR 1996 MAY NOT INCREASE THE MILLS LEVIED FOR SCHOOL OPERATING PURPOSES BY MORE THAN TWO AND ONE-HALF MILLS, THAT INCREASES OVER TWO AND ONE-HALF MILLS BUT NOT EXCEEDING FIVE MILLS MUST BE FIRST APPROVED BY THE GOVERNING BODY OF HORRY COUNTY BY TWO-THIRDS VOTE, AND THAT INCREASES OVER FIVE MILLS MUST BE FIRST APPROVED BY THE QUALIFIED ELECTORS OF THE DISTRICT IN A REFERENDUM CALLED FOR THIS PURPOSE BY THE BOARD.
Read the first time and ordered placed on the local and uncontested Calendar without reference.
H. 4693 -- Reps. Phillips and McCraw: A JOINT RESOLUTION TO REQUIRE THE DEPARTMENT OF TRANSPORTATION TO ERECT TRAFFIC SIGNALS ON SOUTH CAROLINA HIGHWAY 198 AT EXIT 102 ON INTERSTATE HIGHWAY 85.
Read the first time and referred to the Committee on Transportation.
H. 4704 -- Reps. McElveen, J. Young, Harvin, Neal, Canty and G. Brown: A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY ADDING CHAPTER 108 SO AS TO ESTABLISH THE MID-CAROLINA COMMISSION FOR HIGHER EDUCATION AND PROVIDE FOR THE MEMBERSHIP, FUNCTIONS, DUTIES, AND POWERS OF THE COMMISSION, TO DEVOLVE THE POWERS AND DUTIES OF THE SUMTER COUNTY COMMISSION FOR HIGHER EDUCATION UPON THE COMMISSION; AND TO REPEAL ACT 50 OF 1965 AND ACT 822 OF 1973 RELATING TO THE SUMTER COUNTY COMMISSION FOR HIGHER EDUCATION.
Read the first time and referred to the Committee on Education.
Senator COURSON from the Committee on Invitations submitted a favorable report on:
An invitation from Home Builders Association to attend a reception/Bird Supper at the National Guard Armory, Bluff Road on Tuesday, March 19, 1996, beginning at 6:30 P.M. with a reception and dinner at 7:15 P.M.
Courson Peeler Wilson Patterson Russell O'Dell Passailaigue
Matthews Rose McGill
Senator COURSON from the Committee on Invitations submitted a favorable report on:
An invitation from Association of Public Library Adm. of S.C. to attend a luncheon at the Holiday Inn, Assembly Street on Wednesday, March 20, 1996, immediately upon adjournment and lasting until 2:00 P.M.
Courson Peeler Wilson Patterson Russell O'Dell Passailaigue
Matthews Rose McGill
Senator COURSON from the Committee on Invitations submitted a favorable report on:
An invitation from AAA Carolina Motor Club to attend a reception at the Club House of Gregg Park, Forest Drive on Wednesday, March 20, 1996, from 6:00 until 8:00 P.M.
Courson Peeler Wilson Patterson Russell O'Dell Passailaigue
Matthews Rose McGill
Senator COURSON from the Committee on Invitations submitted a favorable report on:
An invitation from The Society of the Plastics Industry to attend a reception at Stadium Place on Tuesday, March 26, 1996, from 6:00 until 8:00 P.M.
Courson Peeler Wilson Patterson Russell O'Dell Passailaigue
Matthews Rose McGill
Senator COURSON from the Committee on Invitations submitted a favorable report on:
An invitation from S.C. Prayer Fellowship to attend a breakfast at the Embassy Suites Hotel on Wednesday, March 27, 1996, from 7:30 until 8:30 A.M.
Courson Peeler Wilson Patterson Russell O'Dell Passailaigue
Matthews Rose McGill
Senator COURSON from the Committee on Invitations submitted a favorable report on:
An invitation from S.C. Department of Archives and History to attend a morning drop-in in #208 Blatt Building on Wednesday, March 27, 1996, from 8:30 until 10:00 A.M.
Courson Peeler Wilson Patterson Russell O'Dell Passailaigue
Matthews Rose McGill
Senator COURSON from the Committee on Invitations submitted a favorable report on:
An invitation from Young Bankers Division of the S.C. Bankers Association to attend an Oyster Roast at the Sterling Garden Center, 300 Senate Street on Wednesday, March 27, 1996, from 6:00 until 8:00 P.M.
Courson Peeler Wilson Patterson Russell O'Dell Passailaigue
Matthews Rose McGill
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.
The following Bill was read the third time and having received three readings in both Houses, it was ordered that the title be changed to that of an Act and enrolled for Ratification:
H. 3535 -- Reps. Delleney, Martin, Baxley, Knotts, Littlejohn, A. Young, Harrison, Wright, Sheheen, J. Harris and Thomas: A BILL TO AMEND SECTION 20-7-430, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TRANSFER OF JUVENILE JURISDICTION, SO AS TO REQUIRE THE FAMILY COURT TO TRANSFER JURISDICTION OF A CHILD FOURTEEN YEARS OF AGE OR OLDER IF THE CHILD HAS BEEN CHARGED WITH AN OFFENSE THAT, IF COMMITTED BY AN ADULT, WOULD PROVIDE FOR A TERM OF IMPRISONMENT FOR TEN YEARS OR MORE AND THE CHILD HAS TWO PRIOR ADJUDICATIONS FOR OFFENSES CARRYING THE SAME SENTENCE.
The following Bills and Joint Resolution were read the third time and ordered sent to the House of Representatives:
S. 1218 -- Education Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE COMMISSION ON HIGHER EDUCATION, RELATING TO DETERMINATION OF RATES OF TUITION AND FEES, DESIGNATED AS REGULATION DOCUMENT NUMBER 1905, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
S. 913 -- Senators Passailaigue, Ford, McConnell, Reese, Washington and Rose: A BILL TO AMEND SECTION 12-7-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO UPDATE THE REFERENCE DATE WHEREBY THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986.
S. 926 -- Senators Patterson, Giese, Gregory and Mescher: A BILL TO AMEND SECTION 20-7-780, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA 1976, RELATING TO CONFIDENTIALITY OF RECORDS, NAMES, PICTURES, AND FINGERPRINTS OF JUVENILES CHARGED WITH COMMITTING A CRIME, SO AS TO PROVIDE THAT THE NAME, IDENTITY, OR PICTURE OF A CHILD MAY BE MADE PUBLIC BY A NEWSPAPER OR RADIO OR TELEVISION STATION IF THE CHILD IS CHARGED WITH A VIOLENT CRIME, GRAND LARCENY OF A MOTOR VEHICLE, A CRIME IN WHICH A WEAPON WAS USED, OR DISTRIBUTION OR TRAFFICKING IN UNLAWFUL DRUGS.
S. 1016 -- Senator Martin: A BILL TO AMEND SECTION 16-11-620 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OFFENSES OF ENTERING THE PREMISES OF ANOTHER PERSON AFTER WARNING AND REFUSING TO LEAVE THE PREMISES OF ANOTHER PERSON ON REQUEST, SO AS TO DELETE THE REQUIREMENT THAT THE WARNING REQUIRED BY THIS SECTION FOR THE OFFENSE OF ENTERING THE PREMISES OF ANOTHER PERSON AFTER WARNING MUST HAVE BEEN MADE WITHIN THE PRECEDING SIX MONTHS.
S. 1028 -- Senators Hayes, Short and Peeler: A BILL TO AMEND SECTION 5-15-145, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TRANSFER OF AUTHORITY TO CONDUCT A MUNICIPAL ELECTION FROM A MUNICIPAL ELECTION COMMISSION TO A COUNTY ELECTION COMMISSION, SO AS TO PROVIDE FOR THE ABOLISHMENT OF A MUNICIPAL ELECTION COMMISSION WHEN THE TOTAL RESPONSIBILITY FOR THE CONDUCT OF A MUNICIPAL ELECTION IS TRANSFERRED TO A COUNTY ELECTION COMMISSION.
S. 1032 -- Senator Bryan: A BILL TO AMEND SECTION 12-36-90, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "GROSS PROCEEDS OF SALES" FOR PURPOSES OF THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO EXCLUDE FROM THE DEFINITION FEES IMPOSED ON THE SALE OF MOTOR OIL, NEW TIRES, LEAD-ACID BATTERIES, AND WHITE GOODS PURSUANT TO THE SOUTH CAROLINA SOLID WASTE POLICY AND MANAGEMENT ACT OF 1991.
S. 1072 -- Senators Matthews, Washington, Ford and Glover: A BILL TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXTEND THE EXEMPTION FOR CERTAIN NONPROFIT HOUSING CORPORATIONS TO PROPERTY OF SUCH CORPORATIONS DEVOTED EXCLUSIVELY TO PROVIDING RENTAL OR COOPERATIVE HOUSING AND RELATED FACILITIES FOR ELDERLY OR HANDICAPPED PERSONS OR FAMILIES OF LOW OR MODERATE INCOME IN ACCORDANCE WITH FEDERAL HOUSING LAW.
S. 1081 -- Senators Drummond and Giese: A BILL TO AMEND SECTION 1-11-720, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUBLIC ENTITIES ELIGIBLE FOR PARTICIPATION IN THE STATE HEALTH AND DENTAL INSURANCE PLANS AND THE REQUIREMENTS FOR THIS PARTICIPATION, SO AS TO AUTHORIZE THE WITHHOLDING OF STATE FUNDS OTHERWISE DUE THESE ENTITIES SUFFICIENT TO COVER DELINQUENT PAYMENTS AND TO PROVIDE THE METHOD OF THE WITHHOLDING AND REMITTING OF THESE SUMS TO THE OFFICE OF INSURANCE SERVICES OF THE STATE BUDGET AND CONTROL BOARD.
S. 1082 -- Senators Drummond and Giese: A BILL TO AMEND SECTION 1-11-710, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE MADE AVAILABLE BY THE STATE BUDGET AND CONTROL BOARD TO ACTIVE AND RETIRED STATE AND SCHOOL DISTRICT EMPLOYEES AND OTHERS, SO AS TO PROVIDE AN EXCLUSIVE REMEDY FOR RESOLVING CLAIMS WITH RESPECT TO THE PAYMENT OF BENEFITS.
S. 1148 -- Senators Drummond, J. Verne Smith, Leventis, Peeler, Patterson, Washington and Giese: A BILL TO AMEND SECTION 10-7-100, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PAYMENT OF INSURANCE PREMIUMS TO THE STATE BUDGET AND CONTROL BOARD, AND SECTION 15-78-160, RELATING TO THE STATE BUDGET AND CONTROL BOARD NOT BEING LIABLE FOR UNCOVERED OR UNFUNDED RISKS WHEN AN AGENCY OR POLITICAL SUBDIVISION FAILS TO PAY INSURANCE PREMIUMS UNDER THE TORT CLAIMS ACT, SO AS TO FURTHER PROVIDE FOR THE PROCEDURES WHERE THE BOARD MAY CANCEL SUCH POLICIES FOR NONPAYMENT OF PREMIUMS; TO AMEND SECTION 11-9-75, RELATING TO STATE FUNDS BEING WITHHELD FROM COUNTIES AND MUNICIPALITIES WHICH ARE DELINQUENT IN PAYMENTS DUE THE STATE, SO AS TO REVISE THE TYPES OF ENTITIES TO WHICH THIS SECTION APPLIES, AND TO PERMIT AN AGENCY OR INSTITUTION TO WRITE OFF AS A BAD DEBT CERTAIN DELINQUENT PAYMENTS; AND TO REPEAL SECTION 10-7-110 RELATING TO DELINQUENT INSURANCE PREMIUMS PAYABLE TO THE STATE BUDGET AND CONTROL BOARD BEING DEDUCTED FROM CERTAIN GASOLINE TAX DISTRIBUTIONS.
Senator PASSAILAIGUE explained the Bill.
The following Bill having been read the second time with notice of general amendments was ordered placed on the third reading Calendar:
H. 3271 -- Reps. Richardson, Vaughn, McKay, Harvin, Limbaugh, Lloyd, Bailey, Cain, Sandifer, Walker, Baxley, Chamblee, Wofford, A. Young, Shissias, Stuart, Dantzler, Thomas, Keyserling, Jennings, Wells, Tucker, Harrison and Spearman: A BILL TO AMEND SECTION 16-9-340, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OFFENSE OF INTIMIDATING COURT OFFICIALS, JURORS, OR WITNESSES, SO AS TO INCREASE THE PENALTIES FOR VIOLATIONS.
H. 3897 -- Rep. Sharpe: A BILL TO REPEAL SECTIONS 50-17-230 AND 50-17-235, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO NONRESIDENT AND RESIDENT GIGGING LICENSES IN GAME ZONE 11.
The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment proposed by the Committee on Fish, Game and Forestry.
The Committee on Fish, Game and Forestry proposed the following amendment (3897R001.FGF), which was adopted:
Amend the bill, as and if amended, page 1, by striking SECTION 1 in its entirety and inserting in lieu thereof the following:
/SECTION 1. Sections 50-17-230, 50-17-235, 50-19-2810, 50-19-2820, 50-19-2830, 50-19-2840, and 50-19-2850 of the 1976 Code are repealed./.
Amend title to conform.
There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar with notice of general amendments.
THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.
H. 3901 -- Reps. Harrell, Fleming, Cobb-Hunter, Seithel, A. Young, Limbaugh, Wilkins, Wofford, Hallman, H. Brown, Cain, Cotty, Martin, D. Smith, Fulmer, L. Whipper, Shissias, Quinn, McCraw, Knotts, Stuart, Harrison, Sheheen, Huff, Klauber, Beatty, Limehouse, Whatley, Harwell, Hodges, J. Young, Govan, Herdklotz, Jennings, Richardson, Hutson, Delleney and McElveen: A BILL TO AMEND SECTION 12-51-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDEMPTION OF REAL PROPERTY SOLD FOR DELINQUENT TAXES, SO AS TO INCREASE THE INTEREST RATE FROM EIGHT TO TWELVE PERCENT IN THE LAST SIX MONTHS OF THE REDEMPTION PERIOD FOR ALL REAL PROPERTY NOT ASSESSED AS OWNER-OCCUPIED RESIDENTIAL PROPERTY.
The Senate proceeded to a consideration of the Bill. The question being the adoption of Amendment No. 26A (3901R071.AGW) proposed by Senators WILSON, THOMAS, RUSSELL and RYBERG and previously printed in the Journal of Thursday, March 7, 1996.
Senator BRYAN argued contra to the adoption of the amendment.
At 12:34 P.M., the PRESIDENT assumed the Chair.
Senator BRYAN continued arguing contra to the adoption of the amendment.
Senator HOLLAND asked unanimous consent to make a motion, with Senator BRYAN retaining the floor, that the Senate stand in recess until 3:00 P.M.
Senator RYBERG objected.
On motion of Senator BRYAN, debate was interrupted by recess.
At 12:47 P.M., on motion of Senator BRYAN, the Senate receded from business until 3:00 P.M.
The Senate reassembled at 3:23 P.M. and was called to order by the PRESIDENT.
The following were introduced:
H. 4722 -- Rep. Tucker: A CONCURRENT RESOLUTION EXPRESSING THE SORROW OF THE MEMBERS OF THE GENERAL ASSEMBLY AT THE DEATH OF MR. ROBERT MCDUFFIE HAMMOND II, OF ANDERSON, AND EXTENDING SYMPATHY TO HIS FAMILY AND MANY FRIENDS.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 4723 -- Rep. Tucker: A CONCURRENT RESOLUTION TO EXPRESS APPRECIATION AND GREAT PRIDE OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO ANDERSON AREA MEDICAL CENTER OF ANDERSON COUNTY FOR RECEIVING THE HIGHEST RANKING GIVEN BY THE JOINT COMMISSION ON ACCREDITATION OF HEALTH CARE ORGANIZATIONS BY EARNING "ACCREDITATION WITH COMMENDATION".
The Concurrent Resolution was adopted, ordered returned to the House.
H. 4724 -- Rep. Tucker: A CONCURRENT RESOLUTION EXPRESSING PROFOUND SORROW AT THE DEATH OF ALLISON DANA KAY OF ANDERSON AND EXTENDING DEEPEST SYMPATHY TO HER FAMILY AND FRIENDS.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 4725 -- Reps. Tucker and P. Harris: A CONCURRENT RESOLUTION EXPRESSING THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO E. STEVE DARBY OF ANDERSON COUNTY UPON BEING NAMED THE 1995 SMALL BUSINESS PERSON OF THE YEAR BY THE ANDERSON COUNTY CHAMBER OF COMMERCE.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 4731 -- Rep. Harvin: A CONCURRENT RESOLUTION RECOGNIZING AND SALUTING DIRECTOR GENERAL STANLEY KAO FOR HIS MANY CONTRIBUTIONS TO CULTURAL UNDERSTANDING AND COOPERATION BETWEEN AMERICANS AND THE PEOPLE OF THE PROVINCE OF TAIWAN, REPUBLIC OF CHINA, AND WISHING HIM SUCCESS IN HIS NEW POST IN MALAYSIA.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 4733 -- Reps. Robinson and Rice: A CONCURRENT RESOLUTION TO CONGRATULATE WILL EMERSON OF EASLEY, 1995-96 GOVERNOR OF PALMETTO BOYS STATE, FOR HIS SUCCESSFUL TENURE IN THIS OFFICE AND FOR HIS OUTSTANDING REPRESENTATION OF SOUTH CAROLINA WHILE SERVING AS GOVERNOR.
The Concurrent Resolution was adopted, ordered returned to the House.
S. 1035 -- Senators McGill, Alexander, Boan, Bryan, Cork, Courson, Courtney, Drummond, Elliott, Fair, Ford, Giese, Glover, Gregory, Hayes, Holland, Jackson, Land, Lander, Leatherman, Leventis, Martin, Matthews, McConnell, Mescher, Moore, O'Dell, Passailaigue, Patterson, Peeler, Rankin, Reese, Richter, Rose, Ryberg, Saleeby, Setzler, Short, Greg Smith, J. Verne Smith, Thomas, Waldrep, Washington and Wilson: A BILL TO AMEND SECTION 4-9-55, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT NO COUNTY MAY BE BOUND BY ANY GENERAL LAW REQUIRING IT TO SPEND FUNDS OR TAKE AN ACTION REQUIRING THE EXPENDITURE OF FUNDS UNLESS THE GENERAL ASSEMBLY HAS DETERMINED THAT THE LAW REQUIRING THE EXPENDITURE FULFILLS A STATE INTEREST AND THE LAW REQUIRING THE EXPENDITURE IS APPROVED BY TWO-THIRDS OF THE MEMBERS VOTING IN EACH HOUSE OF THE GENERAL ASSEMBLY, SO AS TO DELETE THE GENERAL AND SPECIAL APPROPRIATIONS ACTS FROM THE EXEMPTIONS IN THIS SECTION.
Senator DRUMMOND asked unanimous consent to make a motion to recall the Bill from the Committee on Judiciary.
There was no objection.
On motion of Senator DRUMMOND, with unanimous consent, the Bill was referred to the Committee on Finance.
H. 3901 -- Reps. Harrell, Fleming, Cobb-Hunter, Seithel, A. Young, Limbaugh, Wilkins, Wofford, Hallman, H. Brown, Cain, Cotty, Martin, D. Smith, Fulmer, L. Whipper, Shissias, Quinn, McCraw, Knotts, Stuart, Harrison, Sheheen, Huff, Klauber, Beatty, Limehouse, Whatley, Harwell, Hodges, J. Young, Govan, Herdklotz, Jennings, Richardson, Hutson, Delleney and McElveen: A BILL TO AMEND SECTION 12-51-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDEMPTION OF REAL PROPERTY SOLD FOR DELINQUENT TAXES, SO AS TO INCREASE THE INTEREST RATE FROM EIGHT TO TWELVE PERCENT IN THE LAST SIX MONTHS OF THE REDEMPTION PERIOD FOR ALL REAL PROPERTY NOT ASSESSED AS OWNER-OCCUPIED RESIDENTIAL PROPERTY.
The Senate resumed consideration of the Bill. The question being the adoption of Amendment No. 26A (3901R071.AGW) proposed by Senators WILSON, THOMAS, RUSSELL and RYBERG and previously printed in the Journal of Thursday, March 7, 1996.
The amendment was later carried over.
Senator WILSON moved that Amendment No. 26A be adopted.
Senator LAND argued contra to the adoption of the amendment.
On motion of Senator SHORT, at 3:50 P.M., Senator ROSE was granted a leave of absence for the balance of the day.
On motion of Senator RYBERG, at 3:52 P.M., Senator RICHTER was granted a leave of absence for today.
Senator LAND moved to carry over the amendment.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Boan Bryan Cork Courtney Drummond Ford Glover Hayes Holland Jackson Land Lander Leatherman Martin McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Reese *Richter *Rose Short Smith, J.V. Waldrep Washington
Courson Fair Giese Gregory Russell Ryberg Setzler Smith, G. Wilson
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by the leave of the Senate, with unanimous consent.
Amendment No. 26A was carried over.
We agree with the limitation concepts in the amendment, but also favor a referendum on the limitations so that this is the purest form of home rule possible.
We note that the amendment does not exempt solid waste fees from the limitation and we do not know the contractual consequences on the Charleston Solid Waste Facility if it does not. Lastly, a 2% ceiling is placed on the Accommodations Tax in Charleston by the amendment, but a 3% cap is placed on Greenville's taxes. We are informed that our industry will agree to a 4% cap to help offset the costs of the tourist industry. There are other amendments, so we agree to carry over the amendment to see if we can adopt an amendment more conducive to the affairs in Charleston.
I failed to vote on the motion to carry over Amendment 26A to H. 3901 on Tuesday, March 12, 1996, because I was participating in a subcommittee meeting of the House Medical, Military, Public and Municipal Affairs Committee regarding S. 119, a Bill sponsored by me. I would have voted to carry over this amendment because, in addition to my general agreement with the Statement of Senators McConnell and Passailaigue, I am concerned about uncertainty, inequities and other problems caused by the amendment with regard to Dorchester and Berkeley counties, and various municipalities. It is better to consider a more problem-free amendment.
On Tuesday, March 12, 1996, I was granted leave to be absent from the Senate for the day. It was necessary that I attend two meetings concerning road needs in Charleston County. In the morning I met with the Highway Commissioner for the First Congressional District and in the evening I met again with the commissioner and also with the Mayor and members of Town Council of the Town of Mount Pleasant.
Senator MOORE asked unanimous consent to make a motion to take up Amendment No. 38 for immediate consideration, to be granted leave to explain this amendment prior to the document being placed on the desk and to have the amendment, when available, distributed to the members.
There was no objection.
Senators MOORE, McCONNELL, J. VERNE SMITH, COURSON, GIESE, PASSAILAIGUE, MESCHER, O'DELL, WASHINGTON, ROSE, GLOVER, FORD and PATTERSON proposed the following Amendment No. 38 (3901R099.TLM), which was adopted, as amended:
Amend the bill, as and if amended, page 1, line 22 by striking PART I in its entirety and inserting in lieu thereof the following:
SECTION 1. A. The State Election Commission shall conduct a statewide referendum on November 5, 1996, on the question of raising the sales tax in order to provide property tax relief. 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 director of the Department of Revenue and Taxation and the Code Commissioner. The referendum question must read substantially as follows:
"Do you favor raising the statewide sales, use, and casual excise tax rate from five to six percent and to set aside the proceeds of the additional one percent to provide for five specific tax relief programs which are: (1) providing for a maximum refundable individual income tax credit of seventy-five dollars per return with each state return filed; (2) granting owner-occupied residential property an exemption from all property taxes levied for operating purposes except those levied pursuant to referendum and those levied by special purpose or public service districts, county special tax districts, and for debt service; (3) increasing the depreciation allowance on business personal property; (4) phasing-out the income tax on state residents that have attained the age of sixty-five; and (5) decreasing the income tax on certain incorporated and unincorporated businesses?
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'."
B. This SECTION takes effect upon approval by the Governor.
SECTION 2. Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-525. On each individual tax return filed, there is allowed a refundable credit against the tax imposed pursuant to Section 12-6-510 in an amount equal to seventy-five dollars. This credit is reduced by five dollars for each one thousand dollars of taxable income in excess of one thousand dollars on the taxpayer's South Carolina individual income tax return."
SECTION 3. Article 9, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-1165. Beginning with the taxable year in which a resident individual attains the age of sixty-five, his taxable income is exempt from the tax imposed pursuant to Section 12-6-510 as follows:
(1) for taxable years beginning in 1997, twenty percent of taxable income is exempt;
(2) for taxable years beginning in 1998, forty percent of taxable income is exempt;
(3) for taxable years beginning in 1999, sixty percent of taxable income is exempt;
(4) for taxable years beginning in 2000, eighty percent of taxable income is exempt;
(5) for taxable years beginning after 2001, one hundred percent of taxable income is exempt. The taxable income of a married individual eligible for this exemption who files a joint federal income tax return with a spouse who is not eligible for the exemption must be allocated between the spouses and only that taxable income to the eligible spouse is eligible for the exemption. The department shall prescribe the method of allocation."
SECTION 4. A. Section 12-6-1140 of the 1976 Code, as last amended by Act 76 of 1995, is further amended by adding at the end:
"(8) Twenty-eight and one-half percent of amounts otherwise subject to tax under Section 12-6-510 received by or attributed to a taxpayer as a result of the taxpayer's status as a:
(1) shareholder of a subchapter 'S' corporation;
(2) partner in a partnership; or
(3) member of a limited liability company.
No deduction is allowed under this item for a guaranteed payment to a partner for personal services rendered by the partner for the partnership."
B. This section applies to taxable years beginning after 1996.
SECTION 5. Section 12-36-940 of the 1976 Code is amended to read:
"Section 12-36-940. Every retailer may add to the sales price:
(1) no amount on sales of ten cents or less;
(2) one cent on sales of eleven cents and over, but not in excess of twenty cents;
(3) two cents on sales of twenty-one cents and over, but not in excess of forty cents;
(4) three cents on sales of forty-one cents and over, but not in excess of sixty cents;
(5) four cents on sales of sixty-one cents and over, but not in excess of eighty cents;
(6) five cents on sales of eighty-one cents and over, but not in excess of one dollar;
(7) one cent additional for each twenty cents or major fraction thereon in excess of one dollar.
The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect from the purchaser does not relieve the taxpayer from the tax levied by this article.
A retailer may add the amount of the tax to the sales price and the department shall prescribe tables providing the amount to be added to the sales price consistent with the total rate of the tax."
SECTION 6. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Section 12-36-1110. An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter. Revenue of the tax imposed pursuant to this article must be credited to the Property Tax Relief Fund in the State Treasury, a fund separate and distinct from the general fund of the State."
SECTION 7. A. The gross proceeds of sales of tangible personal property delivered after June 30, 1997, in this State, either under the terms of a construction contract executed before July 1, 1997, or a written bid submitted before July 1, 1997, culminating in a construction contract entered into before or after July 1, 1997, are exempt from the tax provided in Section 12-36-1110 of the 1976 Code if a verified copy of the contract is filed with the South Carolina Department of Revenue and Taxation before January 1, 1998.
B. Notwithstanding the date of general imposition of the tax imposed pursuant to Section 12-36-1110 of the 1976 Code, with respect to services that are regularly billed on a monthly basis, the tax is imposed beginning on the first day of the billing period beginning on or after July 1, 1997.
SECTION 8. A. In each county in which is imposed the local option sales tax, a county governing body, by majority vote, may cause the referendum provided in Section 4-10-35 of the 1976 Code to be held at the time of the general election in 1996 and at the time of the general election every two years thereafter. If the question is approved, the tax is rescinded in the county in the manner provided by law.
The authority of the governing body provided in this section is in addition to the authority granted for a referendum question initiated by petition.
B. This SECTION takes effect upon approval by the Governor.
SECTION 9. Section 12-37-251 of the 1976 Code, as added by Act 145 of 1995, is amended to read:
"Section 12-37-251. (A) Property classified pursuant to Section 12-43-220(c) is exempt from property taxes levied for other than bonded indebtedness and payments pursuant to lease-purchase agreements for capital construction. The exemption applies against millage imposed for school operations and the amount of fair market value of the homestead that is exempt from such millage must be set by the Director of the Department of Revenue and Taxation based on the amount available in the State Property Tax Relief Fund. In addition to any other homestead exemption allowed by law, one hundred percent of the fair market value of every homestead qualifying for the assessment ratio provided pursuant to Section 12-43-220(c) is exempt from all ad valorem taxes except ad valorem taxes levied as follows:
(1) for debt service and for payments pursuant to lease-purchase agreements;
(2) by special purpose or public service districts;
(3) county special tax districts;
(4) ad valorem taxes levied pursuant to a referendum in which a majority of the qualified electors of the jurisdiction voting in the referendum voted in favor of levying the taxes.
(B) Taxing entities 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 ninety percent of the reimbursement must be paid in the last quarter of the calendar year.
(C) Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3).
(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage, except that the rollback millage may be increased by the percentage increase in the consumer price index for the year immediately preceding the year of reassessment.
(D) The exemption allowed by this section is conditional on full funding of the Education Finance Act and on an appropriation by the General Assembly each year reimbursing school districts an amount equal to the Department of Revenue and Taxation's estimate of total school tax revenue loss resulting from the exemption in the next fiscal year."
B. This SECTION is effective for property tax years beginning after 1996.
SECTION 10. A. The penultimate paragraph of Section 12-37-930 of the 1976 Code, as last amended by Act 32 of 1995, is further amended to read:
"(A) In no event may the original cost be reduced more than eighty ninety percent, except this limit is ninety percent for custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. In the year of acquisition, depreciation is allowed as if the property were owned for the full year. The term 'original cost' means gross capitalized cost, including property on which the taxpayer made the election allowed pursuant to Section 179 of the Internal Revenue Code of 1986, as shown by the taxpayer's records for income tax purposes. For purposes of this paragraph, custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals are molds and dies designed, produced, and conditioned to the special order of a manufacturer.
(B) There is established in the State Treasury a fund separate and distinct from the general fund of the State and all other funds styled The Depreciation Property Tax Reimbursement Fund. Annually, the General Assembly shall appropriate to this fund an amount sufficient to reimburse all local taxing entities the amount of revenue not collected as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this section. Reimbursement is not allowed for any depreciation allowed in connection with custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. Reimbursements must be paid from the fund in the manner provided in Section 12-37-270, mutatis mutandis."
B. This SECTION takes effect January 1, 1997.
SECTION 11. Upon approval by the Governor, this PART takes effect July 1, 1997, or as otherwise provided, but only upon the certification of the State Election Commission to the Code Commissioner and the Department of Revenue and Taxation of a majority "yes" vote in the referendum provided by SECTION 1 of this PART.
Amend the bill further, as and if amended, page 8, line 10, by striking PART II in its entirety and inserting in lieu thereof the following:
/ PART II
SECTION 1. A. The entity authorized to hold elections in each county and municipality must conduct a referendum on the question contained herein on November 5, 1996. The county and the municipality must have separate ballots. The electors of a municipality may vote in both the county and the municipal referendum. The state election laws apply to this referendum, mutatis mutandis. The entity authorized to hold elections shall publish the results of the referendum and certify them to the appropriate local governing body.
B. If the majority of voters within a county approve the question, the provisions of PART II apply to the entire county. If the majority of voters within a municipality approve the question, the provisions of PART II apply within that municipality. If the result of this referendum within the county is not in favor of the question, then the provisions of this PART do not apply to such county, but may apply to a municipality if the result of the referendum within the municipality is in favor of the question. If the result of this referendum within the municipality is not in favor of the question, then the provisions of this PART do not apply to such municipality, but may apply to the entire county if the result of the referendum within the county is in favor of the question. The referendum question must read substantially as follows:
"Do you favor limiting Act 283 of 1975 known as the Home Rule Act in order to prohibit ___________________(Municipality or County) from imposing any new taxes or fees unless enacted before December 31, 1995, or unless expressly authorized by the General Assembly and imposed upon approval of two-thirds of the local governing body and limiting an increase in tax, fee, and millage rates to the Consumer Price Index unless there is a declared emergency or unless declared necessary to pay for a judicially-mandated expenditure or bonded indebtedness or to offset a prior year's deficit and authorizing a tax, fee, or millage rate increase above the Consumer Price Index if approved by two-thirds vote of the local governing body and allowing _______________________ (Municipality or County), by majority vote of the local governing body, to impose a cumulative fee or tax of three percent on accommodations furnished to transients and one percent on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine?
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'."
In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the entity responsible for placing this question on the ballot is granted the limited authority to modify the ballot question only to the extent necessary to change "three percent" to "four percent"
SECTION 2. Article 1, Chapter 9, Title 4 of the 1976 Code is amended by adding:
"Section 4-9-142. (A) The governing body of a county may not impose any new tax or fee after December 31, 1995, unless specifically authorized by the General Assembly: (1) in a prior act granting specific authorization for a fee for a particular local government service, provided that the purpose for which the proceeds of the fee is used is reasonably related to the nature of the fee and the proceeds are used only for the specific purpose for which the fee is levied or in a prior act granting specific authorization for the imposition of a tax; (2) by this act; or (3) in a future act. The governing body of a county may not increase tax rates or fee rates, excluding fee rates charged for public utilities and fee rates charged by hospitals, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:
(1) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, facilities, or equipment;
(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and fee rates must return to the rates immediately preceding the emergency;
(4) to site, establish, or operate a regional facility, which consists of two or more counties, under the provisions of Chapter 96 of Title 44 of the 1976 Code, as amended; or
(5) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670. This section may not be construed to affect the ability of counties or other entities authorized by law to levy school millage for operating purposes.
(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.
(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any purposes must be approved by a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.
(D)(1) Except as provided in subsection (3), any county fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not be imposed in any incorporated areas of the county without the consent of the affected municipality. The cumulative rate of county and municipal fees based on meals provided in establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not exceed one percent, regardless of the date such fee or tax was imposed. The cumulative rate of county and municipal fees based on accommodations provided transients may not exceed three percent, regardless of the date such fee or tax was imposed.
(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for the establishment, operation, and maintenance of the following purposes:
(a) tourism related buildings to include, but not limited to, civic centers, coliseums, and aquariums;
(b) cultural, recreational, or historical facilities;
(c) beach access and renourishment;
(d) highways, roads, streets, and bridges providing access to tourist destinations; or
(e) advertisements and promotions related to tourism development.
(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).
(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. This subsection does not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not previously taxed, new construction, or renovation of existing structures occurring during the reassessment period.
(F) Effective January 1, 1997 the governing body of each county is prohibited from charging any fee or tax on the transfer of real property."
SECTION 3. Article 1, Chapter 21, Title 5 of the 1976 Code is amended by adding:
"Section 5-21-70. (A) The governing body of a municipality may not impose any new tax or fee after December 31, 1995, unless specifically authorized by the General Assembly: (1) in a prior act granting specific authorization for a fee for a particular local government service, provided that the purpose for which the proceeds of the fee is used is reasonably related to the nature of the fee and the proceeds are used only for the specific purpose for which the fee is levied or in a prior act granting specific authorization for the imposition of a tax; (2) by this act; or (3) in a future act. The governing body of a municipality may not increase tax rates or fee rates, excluding fee rates charged for public utilities, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:
(1) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment;
(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and fee rates must return to the rates immediately preceding the emergency; or
(4) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670.
(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.
(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any purposes must be approved by a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.
(D)(1) Except as provided in subsection (3), no municipal fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be imposed in any unincorporated areas of the county without the consent of the affected county. The cumulative rate of county and municipal fees based on meals provided in establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not exceed one percent, regardless of the date such fee or tax was imposed. The cumulative rate of county and municipal fees based on accommodations provided transients may not exceed three percent, regardless of the date such fee or tax was imposed.
(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for establishment, operation, and maintenance of the following purposes:
(a) tourism related buildings to include but not limited to civic centers, coliseums, and aquariums;
(b) cultural, recreational, or historical facilities;
(c) beach access and renourishment;
(d) highways, roads, streets, and bridges providing access to tourist destinations; or
(e) advertisements and promotions related to tourism development.
(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).
(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. This subsection does not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not previously taxed, new construction, or renovation of existing structures occurring during the reassessment period.
(F) Effective July 1, 1997, the governing body of each municipality is prohibited from charging any fee or tax on the transfer of real property."
SECTION 4. Section 4-29-67 of the 1976 Code, as last amended by Act 32 of 1995, is further amended by adding an appropriately lettered subsection at the end to read:
"( ) The provisions of Sections 4-9-142 and 5-21-70 do not apply with respect to calculating the fee in lieu of taxes allowed pursuant to this section and Chapter 12 of this title."
SECTION 5. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding may not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 6. Upon approval by the Governor, this PART takes effect July 1, 1997, or as otherwise provided, but the provisions of this PART apply only in counties or municipalities in which the entity authorized to hold elections has certified a majority "yes" vote in the referendum provided by SECTION 1 of this PART./
Amend the bill further, as and if amended, by adding PART III at the end to read:
/ Part III
SECTION 1. Chapter 1, Title 6 of the 1976 Code is amended by adding:
"Section 6-1-82. (A) Except as provided for in subsection (B), a county or municipality may not impose any tax, fee, surcharge, or other revenue raising measure that adds to, conflicts with, or alters the scope or form of a general statewide tax imposed by the General Assembly.
(B) A county or municipality may impose by ordinance or other lawful authorization of the governing body a fee, surcharge, or service charge for a particular local government service so long as the proceeds are used in a manner that bears a reasonable relationship between the payors of the fee, surcharge, or service charge and the purposes for which they are intended, and provided that the levy of the fee, surcharge, or service charge does not conflict with the provisions of this section. Fee revenues must be credited to a segregated fund separate and apart from the entity's general fund or any other fund and used only to provide the service for which it was imposed. When a service is discontinued, the fee for that service may no longer be imposed.
(C) The provisions of this section do not apply to taxes or fees imposed before 1996 by a county or municipality."
SECTION 2. SECTION 1 of this PART takes effect upon approval by the Governor and is effective in each county and municipality until and unless the certification required by SECTION 1 of a majority "yes" vote in the referendum provided by SECTION 1 of PART II occurs./
Amend title to conform.
Senator MOORE explained the amendment.
At 4:10 P.M., on motion of Senator MOORE, the Senate receded from business subject to the Call of the Chair.
At 4:13 P.M., the Senate resumed.
Senator MOORE explained the amendment.
At 4:35 P.M., Senator MARTIN assumed the Chair.
Senator MOORE continued explaining the amendment.
With Senator MOORE retaining the floor, Senator PASSAILAIGUE, with unanimous consent, was granted leave to speak on Part I of Amendment No. 38.
At 4:50 P.M., Senator DRUMMOND made the point that a quorum was not present. It was ascertained that a quorum was present. The Senate resumed.
Senator PASSAILAIGUE continued speaking on Part I of Amendment No. 38.
At 5:10 P.M., the PRESIDENT assumed the Chair.
Senator PASSAILAIGUE continued speaking on Part I of Amendment No. 38.
With Senator MOORE retaining the floor, Senator DRUMMOND, with unanimous consent, was granted leave to explain Part III of Amendment No. 38.
Senator HOLLAND asked unanimous consent to make a motion to be granted leave to be recorded as voting in favor of Parts I, II and III of Amendment No. 38, without changing the outcome.
There was no objection.
At 5:57 P.M., Senator HOLLAND requested a leave of absence for the balance of the day and tomorrow.
At 5:58 P.M., with Senator DRUMMOND retaining the floor, Senator DRUMMOND moved that the Senate stand in recess for fifteen minutes.
With Senator DRUMMOND retaining the floor, the Senate receded from business not to exceed fifteen minutes.
At 7:05 P.M., the Senate resumed.
Senator DRUMMOND spoke on the amendment.
Senator McCONNELL, with unanimous consent, was granted leave to address the body.
Senator McCONNELL asked unanimous consent to make a motion to take up for immediate consideration Amendment No. 38-P4.
There was no objection.
Senator McCONNELL asked unanimous consent to substitute Amendment No. 38-P4 in lieu of Part III of Amendment No. 38.
There was no objection.
Senators McCONNELL and PASSAILAIGUE proposed the following Amendment No. 38-P4 (3901R108.GFM), which was adopted:
Amend the amendment bearing DOC. NO. 3901R099.TLM, as and if amended, beginning on page 16 by striking Section 6-1-82 in its entirety and inserting in lieu thereof the following:
/"Section 6-1-82. (A) The governing body of a county or municipality may not impose a new tax after December 31, 1995, unless specifically authorized by the General Assembly.
(B) (1) A county or municipality may impose by ordinance or other lawful authorization of the governing body a fee, surcharge, or service charge for a particular local government service so long as the fee is used for the purpose for which the fee is collected and the fee imposed is in exchange for specific and measurable goods or services provided to the person who pays the fee. Any other levy must be classified as a tax.
(2) All funds collected by a county or municipality from the imposition of a fee or tax based on accommodations provided to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for the following purposes:
(a) the development, design, and construction of facilities for civic and meeting activities including required infrastructure (sewer, water, roads) directly impacting the facility(s) begun after January 1, 1996;
(b) the control of waterfront erosion;
(c) construction and maintenance of major tourist access highways in those counties which have a high concentration of tourism activity; and
(d) tourist-related services, including, but not limited to, police protection, restrooms, sanitation, road and sidewalk maintenance, and administrative support services.
For the purposes of this section, 'high concentration of tourism and travel activity' means those counties generating three million dollars or more in state accommodations tax in the 1994-95 fiscal year. This base rate must be adjusted upward annually by the Consumer Price Index based upon the southeastern average.
(3) In a county in which the cumulative county and municipal accommodations tax equals three or four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).
(C) Effective July 1, 1997, the governing body of each county or municipality is prohibited from charging any fee or tax on the transfer of real property."/
Amend title to conform.
Senator McCONNELL explained the amendment.
The amendment was adopted.
Senator McCONNELL moved under Rule 18 to divide the question.
The PRESIDENT stated that Amendment No. 38 was subject to division.
The motion to divide the question was adopted.
Senator McCONNELL asked unanimous consent to make a motion to take up for immediate consideration Part III of Amendment No. 38.
There was no objection.
The question then was the adoption of Part III of Amendment No. 38.
Amend the amendment bearing DOC. NO. 3901R099.TLM, as and if amended, beginning on page 16 by striking Section 6-1-82 in its entirety and inserting in lieu thereof the following:
/"Section 6-1-82. (A) The governing body of a county or municipality may not impose a new tax after December 31, 1995, unless specifically authorized by the General Assembly.
(B) (1) A county or municipality may impose by ordinance or other lawful authorization of the governing body a fee, surcharge, or service charge for a particular local government service so long as the fee is used for the purpose for which the fee is collected and the fee imposed is in exchange for specific and measurable goods or services provided to the person who pays the fee. Any other levy must be classified as a tax.
(2) All funds collected by a county or municipality from the imposition of a fee or tax based on accommodations provided to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for the following purposes:
(a) the development, design, and construction of facilities for civic and meeting activities including required infrastructure (sewer, water, roads) directly impacting the facility(s) begun after January 1, 1996;
(b) the control of waterfront erosion;
(c) construction and maintenance of major tourist access highways in those counties which have a high concentration of tourism activity; and
(d) tourist-related services, including, but not limited to, police protection, restrooms, sanitation, road and sidewalk maintenance, and administrative support services.
For the purposes of this section, 'high concentration of tourism and travel activity' means those counties generating three million dollars or more in state accommodations tax in the 1994-95 fiscal year. This base rate must be adjusted upward annually by the Consumer Price Index based upon the southeastern average.
(3) In a county in which the cumulative county and municipal accommodations tax equals three or four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).
(C) Effective July 1, 1997, the governing body of each county or municipality is prohibited from charging any fee or tax on the transfer of real property."/
Amend title to conform.
Part III of Amendment No. 38 was adopted.
Senator WILSON desired to be recorded as voting against Part III of Amendment No. 38.
Senator MOORE asked unanimous consent to take up for immediate consideration Part II of Amendment No. 38.
There was no objection.
The question then was the adoption of Part II of Amendment No. 38.
Amend the bill further, as and if amended, page 8, line 10, by striking PART II in its entirety and inserting in lieu thereof the following:
SECTION 1. A. The entity authorized to hold elections in each county and municipality must conduct a referendum on the question contained herein on November 5, 1996. The county and the municipality must have separate ballots. The electors of a municipality may vote in both the county and the municipal referendum. The state election laws apply to this referendum, mutatis mutandis. The entity authorized to hold elections shall publish the results of the referendum and certify them to the appropriate local governing body.
B. If the majority of voters within a county approve the question, the provisions of PART II apply to the entire county. If the majority of voters within a municipality approve the question, the provisions of PART II apply within that municipality. If the result of this referendum within the county is not in favor of the question, then the provisions of this PART do not apply to such county, but may apply to a municipality if the result of the referendum within the municipality is in favor of the question. If the result of this referendum within the municipality is not in favor of the question, then the provisions of this PART do not apply to such municipality, but may apply to the entire county if the result of the referendum within the county is in favor of the question. The referendum question must read substantially as follows:
"Do you favor limiting Act 283 of 1975 known as the Home Rule Act in order to prohibit ___________________(Municipality or County) from imposing any new taxes or fees unless enacted before December 31, 1995, or unless expressly authorized by the General Assembly and imposed upon approval of two-thirds of the local governing body and limiting an increase in tax, fee, and millage rates to the Consumer Price Index unless there is a declared emergency or unless declared necessary to pay for a judicially-mandated expenditure or bonded indebtedness or to offset a prior year's deficit and authorizing a tax, fee, or millage rate increase above the Consumer Price Index if approved by two-thirds vote of the local governing body and allowing _______________________ (Municipality or County), by majority vote of the local governing body, to impose a cumulative fee or tax of three percent on accommodations furnished to transients and one percent on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine?
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'."
In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the entity responsible for placing this question on the ballot is granted the limited authority to modify the ballot question only to the extent necessary to change "three percent" to "four percent".
SECTION 2. Article 1, Chapter 9, Title 4 of the 1976 Code is amended by adding:
"Section 4-9-142. (A) The governing body of a county may not impose any new tax or fee after December 31, 1995, unless specifically authorized by the General Assembly: (1) in a prior act granting specific authorization for a fee for a particular local government service, provided that the purpose for which the proceeds of the fee is used is reasonably related to the nature of the fee and the proceeds are used only for the specific purpose for which the fee is levied or in a prior act granting specific authorization for the imposition of a tax; (2) by this act; or (3) in a future act. The governing body of a county may not increase tax rates or fee rates, excluding fee rates charged for public utilities and fee rates charged by hospitals, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:
(1) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, facilities, or equipment;
(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and fee rates must return to the rates immediately preceding the emergency;
(4) to site, establish, or operate a regional facility, which consists of two or more counties, under the provisions of Chapter 96 of Title 44 of the 1976 Code, as amended; or
(5) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670. This section may not be construed to affect the ability of counties or other entities authorized by law to levy school millage for operating purposes.
(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.
(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any purposes must be approved by a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.
(D)(1) Except as provided in subsection (3), any county fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not be imposed in any incorporated areas of the county without the consent of the affected municipality. The cumulative rate of county and municipal fees based on meals provided in establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not exceed one percent, regardless of the date such fee or tax was imposed. The cumulative rate of county and municipal fees based on accommodations provided transients may not exceed three percent, regardless of the date such fee or tax was imposed.
(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for the establishment, operation, and maintenance of the following purposes:
(a) tourism related buildings to include, but not limited to, civic centers, coliseums, and aquariums;
(b) cultural, recreational, or historical facilities;
(c) beach access and renourishment;
(d) highways, roads, streets, and bridges providing access to tourist destinations; or
(e) advertisements and promotions related to tourism development.
(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).
(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. This subsection does not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not previously taxed, new construction, or renovation of existing structures occurring during the reassessment period.
(F) Effective January 1, 1997, the governing body of each county is prohibited from charging any fee or tax on the transfer of real property."
SECTION 3. Article 1, Chapter 21, Title 5 of the 1976 Code is amended by adding:
"Section 5-21-70. (A) The governing body of a municipality may not impose any new tax or fee after December 31, 1995, unless specifically authorized by the General Assembly: (1) in a prior act granting specific authorization for a fee for a particular local government service, provided that the purpose for which the proceeds of the fee is used is reasonably related to the nature of the fee and the proceeds are used only for the specific purpose for which the fee is levied or in a prior act granting specific authorization for the imposition of a tax; (2) by this act; or (3) in a future act. The governing body of a municipality may not increase tax rates or fee rates, excluding fee rates charged for public utilities, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:
(1) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment;
(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and fee rates must return to the rates immediately preceding the emergency; or
(4) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670.
(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.
(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any purposes must be approved by a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.
(D)(1) Except as provided in subsection (3), no municipal fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be imposed in any unincorporated areas of the county without the consent of the affected county. The cumulative rate of county and municipal fees based on meals provided in establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not exceed one percent, regardless of the date such fee or tax was imposed. The cumulative rate of county and municipal fees based on accommodations provided transients may not exceed three percent, regardless of the date such fee or tax was imposed.
(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for establishment, operation, and maintenance of the following purposes:
(a) tourism related buildings to include, but not limited to, civic centers, coliseums, and aquariums;
(b) cultural, recreational, or historical facilities;
(c) beach access and renourishment;
(d) highways, roads, streets, and bridges providing access to tourist destinations; or
(e) advertisements and promotions related to tourism development.
(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).
(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. This subsection does not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not previously taxed, new construction, or renovation of existing structures occurring during the reassessment period.
(F) Effective July 1, 1997, the governing body of each municipality is prohibited from charging any fee or tax on the transfer of real property."
SECTION 4. Section 4-29-67 of the 1976 Code, as last amended by Act 32 of 1995, is further amended by adding an appropriately lettered subsection at the end to read:
"( ) The provisions of Sections 4-9-142 and 5-21-70 do not apply with respect to calculating the fee in lieu of taxes allowed pursuant to this section and Chapter 12 of this title."
SECTION 5. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding may not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 6. Upon approval by the Governor, this PART takes effect July 1, 1997, or as otherwise provided, but the provisions of this PART apply only in counties or municipalities in which the entity authorized to hold elections has certified a majority "yes" vote in the referendum provided by SECTION 1 of this PART.
Senator MARTIN spoke on Part II of the amendment.
Senator BRYAN spoke on Part II of the amendment.
Senator LANDER proposed the following Amendment No. 38-P1 (3901R104.JAL), which was adopted:
Amend the amendment bearing DOC. NO. 3901r099.tlm, as and if amended, page 10, by adding after subsection (3) and before subsection (4) a new subsection to read:
/(4) to site, establish, or operate a local regional correctional facility, under the provisions of Chapter 3 of Title 24 of the 1976 Code, as amended;/
Renumber subsections to conform.
Amend title to conform.
Senator LANDER explained the amendment.
The amendment was adopted.
Senator GREG SMITH proposed the following Amendment No. 38-P2 (3901R105.GS), which was tabled:
Amend the amendment, as and if amended, beginning on page 8, by striking the second paragraph of SECTION 1. B. and inserting in lieu thereof the following:
/ Do you favor:
(1) limiting Act 283 of 1975 known as the Home Rule Act in order to prohibit
______________________________ (Municipality or County) from imposing any new taxes or fees unless:
(a) enacted before December 31, 1995; or
(b) expressly authorized by the General Assembly and imposed upon approval of two-thirds of the local governing body; and
(2) limiting an increase in tax, fee, and millage rates to the Consumer Price Index:
(a) unless there is a declared emergency; or
(b) unless declared necessary to pay for:
(i) a judicially-mandated expenditure; or
(ii) bonded indebtedness; or
(c) unless necessary to offset a prior year's deficit; and
(3) authorizing a tax, fee, or millage rate increase above the Consumer Price Index if approved by two-thirds vote of the local governing body; and
(4) allowing _______________________ (Municipality or County), by majority vote of the local governing body, to impose a cumulative fee or tax of three percent on accommodations furnished to transients and one percent on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine?
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'." /
Amend title to conform.
Senator GREG SMITH explained the amendment.
Senator MOORE spoke on the amendment.
Senator MOORE moved to lay the amendment on the table.
The amendment was laid on the table.
Senator LEATHERMAN asked unanimous consent to take up for immediate consideration Amendment No. 38-P2A.
There was no objection.
Senator LEATHERMAN proposed the following Amendment No. 38-P2A (3901R110.HKL), which was adopted:
Amend the amendment bearing Doc. No. 3901r108.gfm., as and if amended, in PART III, SECTION 1, by adding a new subitem after Section 6-1-82(B)(2):
/ (3) A county fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not be imposed in any incorporated areas of the county without the consent of the affected municipality. /
Renumber other subsections to conform.
Amend title to conform.
On motion of Senator LEATHERMAN, the amendment was adopted.
Senator CORK proposed the following Amendment No. 38-P3 (3901R110.HAC), which was carried over:
Amend the amendment bearing DOC. NO. 3901r099.tlm, as and if amended, page 15, between SECTION 4 and SECTION 5, by adding a new SECTION to read:
/SECTION 5. A. Section 132B, Part II of Act 497 of 1994 is amended to read:
"132B. The provisions of Section 6-1-70 of the 1976 Code do not apply in the case of any county or municipal real estate transfer tax or fee imposed on or before October 15, 1993.
B. Notwithstanding any other effective date provided in this act, this section takes effect upon approval by the Governor./
Amend the amendment further, as and if amended, page 12, subsection (F), by adding a sentence at the end to read:
/The provisions of this subsection to not apply in the case of any county or municipal real estate transfer tax or fee imposed on or before October 15, 1993./
Amend the amendment further, as and if amended, page 15, subsection (F), by adding a sentence at the end to read:
/The provisions of this subsection do not apply in the case of any county or municipal real estate transfer tax or fee imposed on or before October 15, 1993./
Renumber sections to conform.
Amend title to conform.
Senator CORK explained the amendment.
On motion of Senator CORK, the amendment was carried over.
Senator MOORE moved that Part II of Amendment No. 38 be carried over.
Part II of Amendment No. 38 was carried over.
The question then was the adoption of Part I of Amendment No. 38.
Amend the bill, as and if amended, page 1, line 22 by striking PART I in its entirety and inserting in lieu thereof the following:
/ PART I
SECTION 1.A. The State Election Commission shall conduct a statewide referendum on November 5, 1996, on the question of raising the sales tax in order to provide property tax relief. 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 director of the Department of Revenue and Taxation and the Code Commissioner. The referendum question must read substantially as follows:
"Do you favor raising the statewide sales, use, and casual excise tax rate from five to six percent and to set aside the proceeds of the additional one percent to provide for five specific tax relief programs which are: (1) providing for a maximum refundable individual income tax credit of seventy-five dollars per return with each state return filed; (2) granting owner-occupied residential property an exemption from all property taxes levied for operating purposes except those levied pursuant to referendum and those levied by special purpose or public service districts, county special tax districts, and for debt service; (3) increasing the depreciation allowance on business personal property; (4) phasing-out the income tax on state residents that have attained the age of sixty-five; and (5) decreasing the income tax on certain incorporated and unincorporated businesses?
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'."
B. This SECTION takes effect upon approval by the Governor.
SECTION 2. Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-525. On each individual tax return filed, there is allowed a refundable credit against the tax imposed pursuant to Section 12-6-510 in an amount equal to seventy-five dollars. This credit is reduced by five dollars for each one thousand dollars of taxable income in excess of one thousand dollars on the taxpayer's South Carolina individual income tax return."
SECTION 3. Article 9, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-1165. Beginning with the taxable year in which a resident individual attains the age of sixty-five, his taxable income is exempt from the tax imposed pursuant to Section 12-6-510 as follows:
(1) for taxable years beginning in 1997, twenty percent of taxable income is exempt;
(2) for taxable years beginning in 1998, forty percent of taxable income is exempt;
(3) for taxable years beginning in 1999, sixty percent of taxable income is exempt;
(4) for taxable years beginning in 2000, eighty percent of taxable income is exempt;
(5) for taxable years beginning after 2001, one hundred percent of taxable income is exempt.
The taxable income of a married individual eligible for this exemption who files a joint federal income tax return with a spouse who is not eligible for the exemption must be allocated between the spouses and only that taxable income to the eligible spouse is eligible for the exemption. The department shall prescribe the method of allocation."
SECTION 4. A. Section 12-6-1140 of the 1976 Code, as last amended by Act 76 of 1995, is further amended by adding at the end:
"(8) Twenty-eight and one-half percent of amounts otherwise subject to tax under Section 12-6-510 received by or attributed to a taxpayer as a result of the taxpayer's status as a:
(1) shareholder of a subchapter 'S' corporation;
(2) partner in a partnership; or
(3) member of a limited liability company.
No deduction is allowed under this item for a guaranteed payment to a partner for personal services rendered by the partner for the partnership."
B. This section applies to taxable years beginning after 1996.
SECTION 5. Section 12-36-940 of the 1976 Code is amended to read:
"Section 12-36-940. Every retailer may add to the sales price:
(1) no amount on sales of ten cents or less;
(2) one cent on sales of eleven cents and over, but not in excess of twenty cents;
(3) two cents on sales of twenty-one cents and over, but not in excess of forty cents;
(4) three cents on sales of forty-one cents and over, but not in excess of sixty cents;
(5) four cents on sales of sixty-one cents and over, but not in excess of eighty cents;
(6) five cents on sales of eighty-one cents and over, but not in excess of one dollar;
(7) one cent additional for each twenty cents or major fraction thereon in excess of one dollar.
The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect from the purchaser does not relieve the taxpayer from the tax levied by this article.
A retailer may add the amount of the tax to the sales price and the department shall prescribe tables providing the amount to be added to the sales price consistent with the total rate of the tax."
SECTION 6. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Section 12-36-1110. An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter. Revenue of the tax imposed pursuant to this article must be credited to the Property Tax Relief Fund in the State Treasury, a fund separate and distinct from the general fund of the State."
SECTION 7. A. The gross proceeds of sales of tangible personal property delivered after June 30, 1997, in this State, either under the terms of a construction contract executed before July 1, 1997, or a written bid submitted before July 1, 1997, culminating in a construction contract entered into before or after July 1, 1997, are exempt from the tax provided in Section 12-36-1110 of the 1976 Code if a verified copy of the contract is filed with the South Carolina Department of Revenue and Taxation before January 1, 1998.
B. Notwithstanding the date of general imposition of the tax imposed pursuant to Section 12-36-1110 of the 1976 Code, with respect to services that are regularly billed on a monthly basis, the tax is imposed beginning on the first day of the billing period beginning on or after July 1, 1997.
SECTION 8. A. In each county in which is imposed the local option sales tax, a county governing body, by majority vote, may cause the referendum provided in Section 4-10-35 of the 1976 Code to be held at the time of the general election in 1996 and at the time of the general election every two years thereafter. If the question is approved, the tax is rescinded in the county in the manner provided by law.
The authority of the governing body provided in this section is in addition to the authority granted for a referendum question initiated by petition.
B. This SECTION takes effect upon approval by the Governor.
SECTION 9. Section 12-37-251 of the 1976 Code, as added by Act 145 of 1995, is amended to read:
"Section 12-37-251. (A) Property classified pursuant to Section 12-43-220(c) is exempt from property taxes levied for other than bonded indebtedness and payments pursuant to lease-purchase agreements for capital construction. The exemption applies against millage imposed for school operations and the amount of fair market value of the homestead that is exempt from such millage must be set by the Director of the Department of Revenue and Taxation based on the amount available in the State Property Tax Relief Fund. In addition to any other homestead exemption allowed by law, one hundred percent of the fair market value of every homestead qualifying for the assessment ratio provided pursuant to Section 12-43-220(c) is exempt from all ad valorem taxes except ad valorem taxes levied as follows:
(1) for debt service and for payments pursuant to lease-purchase agreements;
(2) by special purpose or public service districts;
(3) county special tax districts;
(4) ad valorem taxes levied pursuant to a referendum in which a majority of the qualified electors of the jurisdiction voting in the referendum voted in favor of levying the taxes.
(B) Taxing entities 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 ninety percent of the reimbursement must be paid in the last quarter of the calendar year.
(C) Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3).
(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage, except that the rollback millage may be increased by the percentage increase in the consumer price index for the year immediately preceding the year of reassessment.
(D) The exemption allowed by this section is conditional on full funding of the Education Finance Act and on an appropriation by the General Assembly each year reimbursing school districts an amount equal to the Department of Revenue and Taxation's estimate of total school tax revenue loss resulting from the exemption in the next fiscal year."
B. This SECTION is effective for property tax years beginning after 1996.
SECTION 10. A. The penultimate paragraph of Section 12-37-930 of the 1976 Code, as last amended by Act 32 of 1995, is further amended to read:
"(A) In no event may the original cost be reduced more than eighty ninety percent, except this limit is ninety percent for custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. In the year of acquisition, depreciation is allowed as if the property were owned for the full year. The term 'original cost' means gross capitalized cost, including property on which the taxpayer made the election allowed pursuant to Section 179 of the Internal Revenue Code of 1986, as shown by the taxpayer's records for income tax purposes. For purposes of this paragraph, custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals are molds and dies designed, produced, and conditioned to the special order of a manufacturer.
(B) There is established in the State Treasury a fund separate and distinct from the general fund of the State and all other funds styled The Depreciation Property Tax Reimbursement Fund. Annually, the General Assembly shall appropriate to this fund an amount sufficient to reimburse all local taxing entities the amount of revenue not collected as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this section. Reimbursement is not allowed for any depreciation allowed in connection with custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. Reimbursements must be paid from the fund in the manner provided in Section 12-37-270, mutatis mutandis."
B. This SECTION takes effect January 1, 1997.
SECTION 11. Upon approval by the Governor, this PART takes effect July 1, 1997, or as otherwise provided, but only upon the certification of the State Election Commission to the Code Commissioner and the Department of Revenue and Taxation of a majority "yes" vote in the referendum provided by SECTION 1 of this PART.
Senator HAYES argued contra to the adoption of Part I of Amendment No. 38.
Senator PASSAILAIGUE argued in favor of the adoption of Part I of Amendment No. 38.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Boan Courson Drummond Ford Giese Glover Gregory *Holland Land Lander Leatherman McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Rankin Reese *Richter *Rose Russell Setzler Short Smith, J.V. Waldrep Washington Wilson
Alexander Bryan Cork Courtney Fair Hayes Martin Peeler Ryberg Smith, G.
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by the leave of the Senate, with unanimous consent.
Part I of Amendment No. 38 was adopted.
On motion of Senator MOORE, with unanimous consent, Amendment No. 38-P3A was taken up for immediate consideration and substituted for Amendment No. 38-P3A, which was previously carried over.
Senators CORK and WASHINGTON proposed the following Amendment No. 38-P3A (3901R111.HAC), which was not adopted:
Amend the amendment bearing DOC. NO. 3901r099.tlm, as and if amended, page 15, between SECTION 4 and SECTION 5, by adding a new SECTION to read:
/SECTION 5. A. Section 132B, Part II of Act 497 of 1994 is amended to read:
"132B. The provisions of Section 6-1-70 of the 1976 Code do not apply in the case of any county or municipal real estate transfer tax or fee imposed on or before August 1, 1993.
B. Notwithstanding any other effective date provided in this act, this section takes effect upon approval by the Governor./
Amend the amendment further, as and if amended, page 12, subsection (F), by adding a sentence at the end to read:
/The provisions of this subsection to not apply in the case of any county or municipal real estate transfer tax or fee imposed on or before August 1, 1993./
Amend the amendment further, as and if amended, page 15, subsection (F), by adding a sentence at the end to read:
/The provisions of this subsection do not apply in the case of any county or municipal real estate transfer tax or fee imposed on or before August 1, 1993./
Renumber sections to conform.
Amend title to conform.
Senator CORK explained the amendment.
Senator WILSON argued contra to the adoption of the amendment.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Cork Courtney Drummond Ford Glover Land McGill Patterson Rankin Short Smith, G. Smith, J.V. Washington
Alexander Boan Bryan Courson Fair Giese Gregory Hayes Lander Leatherman Martin McConnell Mescher Moore O'Dell Passailaigue Peeler Reese *Richter *Rose Russell Ryberg Setzler Waldrep Wilson
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by the leave of the Senate, with unanimous consent.
Amendment No. 38-P3A was not adopted.
Senator McCONNELL proposed the following Amendment No. 38-P5 (3901R107.GFM), which was adopted:
Amend the amendment bearing DOC. NO. 3901R099.TLM, as and if amended, by adding the following appropriately numbered new PART:
/ PART ____.
SECTION 1. Notwithstanding any other provision of law to the contrary, no entity may expend or authorize the expenditure of public or other non-private funds, either directly or indirectly, to influence or attempt to influence the outcome of a referendum question established in this act if the members or employees of that entity receive benefits in whole or in part that are available under state law to state employees, such as health, dental, or life insurance benefits or who are eligible to establish or earn service in any of the state retirement systems.
SECTION 2. This Part takes effect upon approval by the Governor./
Amend title to conform.
Senator McCONNELL explained the amendment.
Senator BRYAN argued contra to the adoption of the amendment.
Senator BRYAN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Bryan Drummond Glover Hayes McGill Patterson Smith, G. Washington
Alexander Boan Cork Courson Courtney Elliott Fair Giese Gregory Land Lander Leatherman Martin McConnell Mescher Moore O'Dell Passailaigue Peeler Rankin Reese *Richter *Rose Russell Ryberg Setzler Short Smith, J.V. Waldrep Wilson
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by the leave of the Senate, with unanimous consent.
The Senate refused to table the amendment. The question then was the adoption of the amendment.
Senator BRYAN argued contra to the adoption of the amendment.
Amendment No. 38-P5 was adopted.
Senator CORK proposed the following Amendment No. 38-P6 (3901R115.HAC), which was adopted:
Amend the amendment bearing DOC. NO. 3901r099.tlm, as and if amended, page 15, between SECTION 4 and SECTION 5, by adding a new SECTION to read:
/SECTION 5. Section 132B, Part II of Act 497 of 1994 is amended to read:
"132B. The provisions of Section 6-1-70 of the 1976 Code do not apply in the case of any county or municipal real estate transfer tax or fee imposed on or before August 1, 1993, if a majority of voters voting in a referendum, to be held on the question contained herein on November 5, 1996, in each county or municipality which imposed the fee on or before August 1, 1993, vote in favor of the continued imposition of the fee. The question on the ballot shall read substantially as follows:
'Shall the real estate transfer fee continue to be imposed in the __________of ________?
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'./
Amend the amendment further, as and if amended, page 12, subsection (F), by adding a sentence at the end to read:
/The provisions of this subsection to not apply in the case of a county real estate transfer tax or fee imposed on or before August 1, 1993 if a majority of voters voting in a referendum, to be held on the question contained herein on November 5, 1996, in each county which imposed the fee on or before August 1, 1993, vote in favor of the continued imposition of the fee. The question on the ballot shall read substantially as follows:
'Shall the real estate transfer fee continue to be imposed in the __________of ________?
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'.'/
Amend the amendment further, as and if amended, page 15, subsection (F), by adding a sentence at the end to read:
/The provisions of this subsection do not apply in the case of any municipal real estate transfer tax or fee imposed on or before August 1, 1993, if a majority of voters voting in a referendum, to be held on the question contained herein on November 5, 1996, in each municipality which imposed the fee on or before August 1, 1993, vote in favor of the continued imposition of the fee. The question on the ballot shall read substantially as follows:
'Shall the real estate transfer fee continue to be imposed in the __________of ________?
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'.'/
Amend the amendment further, as and if amended, page 16, SECTION 6, by adding a sentence at the end to read:
/However, the provisions of this PART relating to a referendum on the continued imposition of a real estate transfer fee take effect January 1, 1997, but apply only in counties or municipalities in which the entity authorized to hold elections has certified a majority "yes" vote in the referendum on the contined imposition of a real estate transfer fee./
Renumber sections to conform.
Amend title to conform.
Senator CORK explained the amendment.
Senator WILSON argued contra to the adoption of the amendment.
Senator WASHINGTON argued in favor of the adoption of the amendment.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Boan Bryan Cork Courson Courtney Drummond Fair Ford Glover Gregory Hayes Land Lander Leatherman Martin McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Reese *Richter *Rose Russell Short Smith, G. Smith, J.V. Waldrep Washington
Alexander Elliott Ryberg Setzler Wilson
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by the leave of the Senate, with unanimous consent.
Amendment No. 38-P6 was adopted.
Having voted on the prevailing side, Senator BRYAN moved to reconsider the vote whereby Amendment No. 38-P5 (3901R107.GFM) was adopted.
There was no objection and the motion to reconsider was adopted.
On motion of Senator BRYAN, with unanimous consent, Amendment No. 38-P8 (3901R114.GFM) was substituted for Amendment No. 38-P5 and taken up for immediate consideration.
Senator McCONNELL proposed the following Amendment No. 38-P8 (3901R114.GFM), which was adopted:
Amend the amendment bearing DOC. NO. 3901R099.TLM, as and if amended, by adding the following appropriately numbered new PART:
/ PART ____.
SECTION 1. Notwithstanding any other provision of law to the contrary, no entity may expend or authorize the expenditure of public or other non-private funds, either directly or indirectly, except for educational or informational purposes, to influence or attempt to influence the outcome of a referendum question established in this act if the members or employees of that entity receive benefits in whole or in part that are available under state law to state employees, such as health, dental, or life insurance benefits or who are eligible to establish or earn service in any of the state retirement systems.
SECTION 2. This part takes effect upon approval by the Governor./
Amend title to conform.
Senator BRYAN explained the amendment.
The amendment was adopted.
There being no further amendments to Part II of Amendment No. 38, Senator MOORE moved that Part II of Amendment No. 38, as amended, be adopted.
Part II of Amendment No. 38 was adopted, as amended.
Senators HAYES and WILSON proposed the following Amendment No. 38-P7 (3901R113.RWH), which was adopted:
Amend the amendment (DOC. NO. 3901c099.tlm), as and if amended, by adding an appropriately numbered new PART to read:
/ PART
SECTION 1. Section 11-11-440(A) of the 1976 Code is amended to read:
"(A) The General Assembly may not provide for any general tax increase or enact new general taxes in the permanent provisions of the State General Appropriation Act or acts supplemental thereto., and any such Any general tax increases or new general taxes must be enacted only by separate act passed by a vote of at least two-thirds of the members of each house."
SECTION 2. Notwithstanding any other provision of this act, this PART takes effect upon approval by the Governor./
Amend title to conform.
Senator HAYES explained the amendment.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Boan Bryan Cork Courson Courtney Elliott Fair Giese Glover Gregory Hayes Lander Leatherman Martin McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Reese *Richter *Rose Russell Ryberg Setzler Short Smith, G. Smith, J.V. Waldrep Washington Wilson
Drummond Land
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by the leave of the Senate, with unanimous consent.
Amendment No. 38-P7 was adopted.
There being no further amendments, the question then was the adoption of Amendment No. 38, as amended.
Amendment No. 38, as amended, was adopted as follows:
Senators MOORE, McCONNELL, J. VERNE SMITH, COURSON, GIESE, MESCHER, PASSAILAIGUE, O'DELL, WASHINGTON, GLOVER, FORD and PATTERSON proposed the following amendment (3901RA99.TLM), which was adopted:
Amend the bill, as and if amended, page 1, line 22 by striking PART I in its entirety and inserting in lieu thereof the following:
/ PART I
SECTION 1. A. The State Election Commission shall conduct a statewide referendum on November 5, 1996, on the question of raising the sales tax in order to provide property tax relief. 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 director of the Department of Revenue and Taxation and the Code Commissioner. The referendum question must read substantially as follows:
"Do you favor raising the statewide sales, use, and casual excise tax rate from five to six percent and to set aside the proceeds of the additional one percent to provide for five specific tax relief programs which are: (1) providing for a maximum refundable individual income tax credit of seventy-five dollars per return with each state return filed; (2) granting owner-occupied residential property an exemption from all property taxes levied for operating purposes except those levied pursuant to referendum and those levied by special purpose or public service districts, county special tax districts, and for debt service; (3) increasing the depreciation allowance on business personal property; (4) phasing-out the income tax on state residents that have attained the age of sixty-five; and (5) decreasing the income tax on certain incorporated and unincorporated businesses?
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'."
B. This SECTION takes effect upon approval by the Governor.
SECTION 2. Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-525. On each individual tax return filed, there is allowed a refundable credit against the tax imposed pursuant to Section 12-6-510 in an amount equal to seventy-five dollars. This credit is reduced by five dollars for each one thousand dollars of taxable income in excess of one thousand dollars on the taxpayer's South Carolina individual income tax return."
SECTION 3. Article 9, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-1165. Beginning with the taxable year in which a resident individual attains the age of sixty-five, his taxable income is exempt from the tax imposed pursuant to Section 12-6-510 as follows:
(1) for taxable years beginning in 1997, twenty percent of taxable income is exempt;
(2) for taxable years beginning in 1998, forty percent of taxable income is exempt;
(3) for taxable years beginning in 1999, sixty percent of taxable income is exempt;
(4) for taxable years beginning in 2000, eighty percent of taxable income is exempt;
(5) for taxable years beginning after 2001, one hundred percent of taxable income is exempt. The taxable income of a married individual eligible for this exemption who files a joint federal income tax return with a spouse who is not eligible for the exemption must be allocated between the spouses and only that taxable income to the eligible spouse is eligible for the exemption. The department shall prescribe the method of allocation."
SECTION 4. A. Section 12-6-1140 of the 1976 Code, as last amended by Act 76 of 1995, is further amended by adding at the end:
"(8) Twenty-eight and one-half percent of amounts otherwise subject to tax under Section 12-6-510 received by or attributed to a taxpayer as a result of the taxpayer's status as a:
(1) shareholder of a subchapter 'S' corporation;
(2) partner in a partnership; or
(3) member of a limited liability company.
No deduction is allowed under this item for a guaranteed payment to a partner for personal services rendered by the partner for the partnership."
B. This section applies to taxable years beginning after 1996.
SECTION 5. Section 12-36-940 of the 1976 Code is amended to read:
"Section 12-36-940. Every retailer may add to the sales price:
(1) no amount on sales of ten cents or less;
(2) one cent on sales of eleven cents and over, but not in excess of twenty cents;
(3) two cents on sales of twenty-one cents and over, but not in excess of forty cents;
(4) three cents on sales of forty-one cents and over, but not in excess of sixty cents;
(5) four cents on sales of sixty-one cents and over, but not in excess of eighty cents;
(6) five cents on sales of eighty-one cents and over, but not in excess of one dollar;
(7) one cent additional for each twenty cents or major fraction thereon in excess of one dollar.
The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect from the purchaser does not relieve the taxpayer from the tax levied by this article.
A retailer may add the amount of the tax to the sales price and the department shall prescribe tables providing the amount to be added to the sales price consistent with the total rate of the tax."
SECTION 6. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Section 12-36-1110. An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter. Revenue of the tax imposed pursuant to this article must be credited to the Property Tax Relief Fund in the State Treasury, a fund separate and distinct from the general fund of the State."
SECTION 7. A. The gross proceeds of sales of tangible personal property delivered after June 30, 1997, in this State, either under the terms of a construction contract executed before July 1, 1997, or a written bid submitted before July 1, 1997, culminating in a construction contract entered into before or after July 1, 1997, are exempt from the tax provided in Section 12-36-1110 of the 1976 Code if a verified copy of the contract is filed with the South Carolina Department of Revenue and Taxation before January 1, 1998.
B. Notwithstanding the date of general imposition of the tax imposed pursuant to Section 12-36-1110 of the 1976 Code, with respect to services that are regularly billed on a monthly basis, the tax is imposed beginning on the first day of the billing period beginning on or after July 1, 1997.
SECTION 8. A. In each county in which is imposed the local option sales tax, a county governing body, by majority vote, may cause the referendum provided in Section 4-10-35 of the 1976 Code to be held at the time of the general election in 1996 and at the time of the general election every two years thereafter. If the question is approved, the tax is rescinded in the county in the manner provided by law.
The authority of the governing body provided in this section is in addition to the authority granted for a referendum question initiated by petition.
B. This SECTION takes effect upon approval by the Governor.
SECTION 9. Section 12-37-251 of the 1976 Code, as added by Act 145 of 1995, is amended to read:
"Section 12-37-251. (A) Property classified pursuant to Section 12-43-220(c) is exempt from property taxes levied for other than bonded indebtedness and payments pursuant to lease-purchase agreements for capital construction. The exemption applies against millage imposed for school operations and the amount of fair market value of the homestead that is exempt from such millage must be set by the Director of the Department of Revenue and Taxation based on the amount available in the State Property Tax Relief Fund. In addition to any other homestead exemption allowed by law, one hundred percent of the fair market value of every homestead qualifying for the assessment ratio provided pursuant to Section 12-43-220(c) is exempt from all ad valorem taxes except ad valorem taxes levied as follows:
(1) for debt service and for payments pursuant to lease-purchase agreements;
(2) by special purpose or public service districts;
(3) county special tax districts;
(4) ad valorem taxes levied pursuant to a referendum in which a majority of the qualified electors of the jurisdiction voting in the referendum voted in favor of levying the taxes.
(B) Taxing entities 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 ninety percent of the reimbursement must be paid in the last quarter of the calendar year.
(C) Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3).
(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage, except that the rollback millage may be increased by the percentage increase in the consumer price index for the year immediately preceding the year of reassessment.
(D) The exemption allowed by this section is conditional on full funding of the Education Finance Act and on an appropriation by the General Assembly each year reimbursing school districts an amount equal to the Department of Revenue and Taxation's estimate of total school tax revenue loss resulting from the exemption in the next fiscal year."
B. This SECTION is effective for property tax years beginning after 1996.
SECTION 10. A. The penultimate paragraph of Section 12-37-930 of the 1976 Code, as last amended by Act 32 of 1995, is further amended to read:
"(A) In no event may the original cost be reduced more than eighty ninety percent, except this limit is ninety percent for custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. In the year of acquisition, depreciation is allowed as if the property were owned for the full year. The term 'original cost' means gross capitalized cost, including property on which the taxpayer made the election allowed pursuant to Section 179 of the Internal Revenue Code of 1986, as shown by the taxpayer's records for income tax purposes. For purposes of this paragraph, custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals are molds and dies designed, produced, and conditioned to the special order of a manufacturer.
(B) There is established in the State Treasury a fund separate and distinct from the general fund of the State and all other funds styled The Depreciation Property Tax Reimbursement Fund. Annually, the General Assembly shall appropriate to this fund an amount sufficient to reimburse all local taxing entities the amount of revenue not collected as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this section. Reimbursement is not allowed for any depreciation allowed in connection with custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. Reimbursements must be paid from the fund in the manner provided in Section 12-37-270, mutatis mutandis."
B. This SECTION takes effect January 1, 1997.
SECTION 11. Upon approval by the Governor, this PART takes effect July 1, 1997, or as otherwise provided, but only upon the certification of the State Election Commission to the Code Commissioner and the Department of Revenue and Taxation of a majority "yes" vote in the referendum provided by SECTION 1 of this PART./
Amend the bill further, as and if amended, page 8, line 10, by striking PART II in its entirety and inserting in lieu thereof the following:
SECTION 1. A. The entity authorized to hold elections in each county and municipality must conduct a referendum on the question contained herein on November 5, 1996. The county and the municipality must have separate ballots. The electors of a municipality may vote in both the county and the municipal referendum. The state election laws apply to this referendum, mutatis mutandis. The entity authorized to hold elections shall publish the results of the referendum and certify them to the appropriate local governing body.
B. If the majority of voters within a county approve the question, the provisions of PART II apply to the entire county. If the majority of voters within a municipality approve the question, the provisions of PART II apply within that municipality. If the result of this referendum within the county is not in favor of the question, then the provisions of this PART do not apply to such county, but may apply to a municipality if the result of the referendum within the municipality is in favor of the question. If the result of this referendum within the municipality is not in favor of the question, then the provisions of this PART do not apply to such municipality, but may apply to the entire county if the result of the referendum within the county is in favor of the question. The referendum question must read substantially as follows:
"Do you favor limiting Act 283 of 1975 known as the Home Rule Act in order to prohibit ___________________(Municipality or County) from imposing any new taxes or fees unless enacted before December 31, 1995, or unless expressly authorized by the General Assembly and imposed upon approval of two-thirds of the local governing body and limiting an increase in tax, fee, and millage rates to the Consumer Price Index unless there is a declared emergency or unless declared necessary to pay for a judicially-mandated expenditure or bonded indebtedness or to offset a prior year's deficit and authorizing a tax, fee, or millage rate increase above the Consumer Price Index if approved by two-thirds vote of the local governing body and allowing _______________________ (Municipality or County), by majority vote of the local governing body, to impose a cumulative fee or tax of three percent on accommodations furnished to transients and one percent on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine?
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'."
In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the entity responsible for placing this question on the ballot is granted the limited authority to modify the ballot question only to the extent necessary to change "three percent" to "four percent".
SECTION 2. Article 1, Chapter 9, Title 4 of the 1976 Code is amended by adding:
"Section 4-9-142. (A) The governing body of a county may not impose any new tax or fee after December 31, 1995, unless specifically authorized by the General Assembly: (1) in a prior act granting specific authorization for a fee for a particular local government service, provided that the purpose for which the proceeds of the fee is used is reasonably related to the nature of the fee and the proceeds are used only for the specific purpose for which the fee is levied or in a prior act granting specific authorization for the imposition of a tax; (2) by this act; or (3) in a future act. The governing body of a county may not increase tax rates or fee rates, excluding fee rates charged for public utilities and fee rates charged by hospitals, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:
(1) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, facilities, or equipment;
(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and fee rates must return to the rates immediately preceding the emergency;
(4) to site, establish, or operate a local regional correctional facility, under the provisions of Chapter 3 of Title 24 of the 1976 Code, as amended;
(5) to site, establish, or operate a regional facility, which consists of two or more counties, under the provisions of Chapter 96 of Title 44 of the 1976 Code, as amended; or
(6) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670. This section may not be construed to affect the ability of counties or other entities authorized by law to levy school millage for operating purposes.
(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.
(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any purposes must be approved by a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.
(D)(1) Except as provided in subsection (3), any county fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not be imposed in any incorporated areas of the county without the consent of the affected municipality. The cumulative rate of county and municipal fees based on meals provided in establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not exceed one percent, regardless of the date such fee or tax was imposed. The cumulative rate of county and municipal fees based on accommodations provided transients may not exceed three percent, regardless of the date such fee or tax was imposed.
(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for the establishment, operation, and maintenance of the following purposes:
(a) tourism related buildings to include, but not limited to, civic centers, coliseums, and aquariums;
(b) cultural, recreational, or historical facilities;
(c) beach access and renourishment;
(d) highways, roads, streets, and bridges providing access to tourist destinations; or
(e) advertisements and promotions related to tourism development.
(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).
(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. This subsection does not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not previously taxed, new construction, or renovation of existing structures occurring during the reassessment period.
(F) Effective January 1, 1997, the governing body of each county is prohibited from charging any fee or tax on the transfer of real property. The provisions of this subsection to not apply in the case of any county real estate transfer tax or fee imposed on or before August 1, 1993, if a majority of voters voting in a referendum, to be held on the question contained herein on November 5, 1996, in each county which imposed the fee on or before August 1, 1993, vote in favor of the continued imposition of the fee. The question on the ballot shall read substantially as follows:
"Shall the real estate transfer fee continue to be imposed in the _________of ________?
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'."
SECTION 3. Article 1, Chapter 21, Title 5 of the 1976 Code is amended by adding:
"Section 5-21-70. (A) The governing body of a municipality may not impose any new tax or fee after December 31, 1995, unless specifically authorized by the General Assembly: (1) in a prior act granting specific authorization for a fee for a particular local government service, provided that the purpose for which the proceeds of the fee is used is reasonably related to the nature of the fee and the proceeds are used only for the specific purpose for which the fee is levied or in a prior act granting specific authorization for the imposition of a tax; (2) by this act; or (3) in a future act. The governing body of a municipality may not increase tax rates or fee rates, excluding fee rates charged for public utilities, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:
(1) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment;
(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and fee rates must return to the rates immediately preceding the emergency; or
(4) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670.
(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.
(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any purposes must be approved by a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.
(D)(1) Except as provided in subsection (3), no municipal fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be imposed in any unincorporated areas of the county without the consent of the affected county. The cumulative rate of county and municipal fees based on meals provided in establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not exceed one percent, regardless of the date such fee or tax was imposed. The cumulative rate of county and municipal fees based on accommodations provided transients may not exceed three percent, regardless of the date such fee or tax was imposed.
(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for establishment, operation, and maintenance of the following purposes:
(a) tourism related buildings to include, but not limited to, civic centers, coliseums, and aquariums;
(b) cultural, recreational, or historical facilities;
(c) beach access and renourishment;
(d) highways, roads, streets, and bridges providing access to tourist destinations; or
(e) advertisements and promotions related to tourism development.
(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).
(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. This subsection does not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not previously taxed, new construction, or renovation of existing structures occurring during the reassessment period.
(F) Effective July 1, 1997, the governing body of each municipality is prohibited from charging any fee or tax on the transfer of real property. The provisions of this subsection do not apply in the case of any municipal real estate transfer tax or fee imposed on or before August 1, 1993, if a majority of voters voting in a referendum, to be held on the question contained herein on November 5, 1996, in each municipality which imposed the fee on or before August 1, 1993, vote in favor of the continued imposition of the fee. The question on the ballot shall read substantially as follows:
"Shall the real estate transfer fee continue to be imposed in the _________of ________?
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'."
SECTION 4. Section 4-29-67 of the 1976 Code, as last amended by Act 32 of 1995, is further amended by adding an appropriately lettered subsection at the end to read:
"( ) The provisions of Sections 4-9-142 and 5-21-70 do not apply with respect to calculating the fee in lieu of taxes allowed pursuant to this section and Chapter 12 of this title."
SECTION 5. Section 132B, Part II of Act 497 of 1994 is amended to read:
"132B. The provisions of Section 6-1-70 of the 1976 Code do not apply in the case of any county or municipal real estate transfer tax or fee imposed on or before August 1, 1993 if a majority of voters voting in a referendum, to be held on the question contained herein on November 5, 1996 in each county or municipality which imposed the fee on or before August 1, 1993, vote in favor of the continued imposition of the fee. The question on the ballot shall read substantially as follows:
"Shall the real estate transfer fee continue to be imposed in the _________of ________?
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'."
SECTION 6. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding may not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 7. Upon approval by the Governor, this PART takes effect July 1, 1997, or as otherwise provided, but the provisions of this PART apply only in counties or municipalities in which the entity authorized to hold elections has certified a majority "yes" vote in the referendum provided by SECTION 1 of this PART. However, the provisions of this PART relating to a referendum on the continued imposition of a real estate transfer fee take effect January 1, 1997, but apply only in counties or municipalities in which the entity authorized to hold elections has certified a majority "yes" vote in the referendum on the contined imposition of a real estate transfer fee.
Amend the bill further, as and if amended, by adding PART III at the end to read:
SECTION 1. Chapter 1, Title 6 of the 1976 Code is amended by adding:
"Section 6-1-82. (A) The governing body of a county or municipality may not impose a new tax after December 31, 1995, unless specifically authorized by the General Assembly.
(B) (1) A county or municipality may impose by ordinance or other lawful authorization of the governing body a fee, surcharge, or service charge for a particular local government service so long as the fee is used for the purpose for which the fee is collected and the fee imposed is in exchange for specific and measurable goods or services provided to the person who pays the fee. Any other levy must be classified as a tax.
(2) All funds collected by a county or municipality from the imposition of a fee or tax based on accommodations provided to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for the following purposes:
(a) the development, design, and construction of facilities for civic and meeting activities including required infrastructure (sewer, water, roads) directly impacting the facility(s) begun after January 1, 1996;
(b) the control of waterfront erosion;
(c) construction and maintenance of major tourist access highways in those counties which have a high concentration of tourism activity; and
(d) tourist-related services, including but not limited to, police protection, restrooms, sanitation, road and sidewalk maintenance, and administrative support services.
For the purposes of this section, 'high concentration of tourism and travel activity' means those counties generating three million dollars or more in state accommodations tax in the 1994-95 fiscal year. This base rate must be adjusted upward annually by the Consumer Price Index based upon the southeastern average.
(3) A county fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not be imposed in any incorporated areas of the county without the consent of the affected municipality.
(4) In a county in which the cumulative county and municipal accommodations tax equals three or four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).
(C) Effective July 1, 1997, the governing body of each county or municipality is prohibited from charging any fee or tax on the transfer of real property."
SECTION 2. SECTION 1 of this PART takes effect upon approval by the Governor and is effective in each county and municipality until and unless the certification required by SECTION 1 of a majority "yes" vote in the referendum provided by SECTION 1 of PART II occurs.
SECTION 1. Notwithstanding any other provision of law to the contrary, no entity may expend or authorize the expenditure of public or other non-private funds, either directly or indirectly, except for educational or informational purposes, to influence or attempt to influence the outcome of a referendum question established in this act if the members or employees of that entity receive benefits in whole or in part that are available under state law to state employees, such as health, dental, or life insurance benefits or who are eligible to establish or earn service in any of the state retirement systems.
SECTION 2. This part takes effect upon approval by the Governor.
SECTION 1. Section 11-11-440(A) of the 1976 Code is amended to read:
"(A) The General Assembly may not provide for any general tax increase or enact new general taxes in the permanent provisions of the State General Appropriation Act or acts supplemental thereto., and any such Any general tax increases or new general taxes must be enacted only by separate act passed by a vote of at least two-thirds of the members of each house."
SECTION 2. Notwithstanding any other provision of this act, this PART takes effect upon approval by the Governor.
Senator WILSON desired to be recorded as voting against Amendment No. 38, as amended.
I voted "no" on Parts II and III and Amendment No. 38, the full MOORE amendment, because I believe they violate my position in favor of limited government at all levels of government. I want a restoration of Home Rule as it existed prior to the hospitality law suit. This court decision was condemned by Chief Justice Ernest Finney as a re-writing of history and the Constitution of South Carolina.
On motion of Senator PASSAILAGUE, with unanimous consent, Amendment No. 16B, which was printed in the Journal on March 5, 1996, and previously carried over, was withdrawn.
On motion of Senator DRUMMOND, debate was interrupted by adjournment.
At 9:05 P.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 11:00 A.M.
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