General Appropriations Bill H. 4700 for the fiscal year beginning July 1, 1998
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24 SECTION 29
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26 TO AMEND ARTICLE 1, CHAPTER 11, TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
27 GENERAL PROVISIONS OF THE STATE BUDGET SYSTEM, BY ADDING SECTION 11-11-150 SO AS TO ESTABLISH
28 A TRUST FUND FOR TAX RELIEF WITHIN THE STATE TREASURY; TO AMEND SECTION 11-11-330, AS AMENDED,
29 AND SECTION 12-37-251, AS AMENDED, BOTH RELATING TO THE STATE PROPERTY TAX RELIEF FUND, SO AS TO
30 REPLACE IT WITH THE TRUST FUND FOR TAX RELIEF; TO AMEND SECTIONS 12-37-450, AS AMENDED, 12-37-935,
31 AND 12-37-270, ALL RELATING TO THE APPROPRIATION OF FUNDS FOR VARIOUS TAX RELIEF PURPOSES, SO AS
32 TO REQUIRE THAT THOSE FUNDS BE CREDITED TO THE TRUST FUND FOR TAX RELIEF; TO AMEND SECTION
33 12-37-280, RELATING TO REIMBURSEMENT TO LOCAL POLITICAL SUBDIVISIONS FOR HOMESTEAD EXEMPTIONS,
34 SO AS TO FUND THOSE REIMBURSEMENTS FROM THE TRUST FUND FOR TAX RELIEF; AND TO REPEAL SECTION
35 6-27-45, RELATING TO HOMESTEAD EXEMPTION REIMBURSEMENT.
PART II PAGE 557
1 A. Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:
2
3 "Section 11-11-150. (A) In calculating estimated state individual and corporate income tax revenues for a fiscal year the Board of
4 Economic Advisors shall deduct amounts sufficient to pay the reimbursement required pursuant to:
5 (1) Section 12-37-251 for the residential property tax exemption;
6 (2) Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled;
7 (3) Section 12-37-935(B) for manufacturer's additional depreciation; and
8 (4) Section 12-37-450 for the inventory tax exemption.
9 (B) There is established in the State Treasury the Trust Fund for Tax Relief (Trust Fund) which must be maintained separately from
10 the general fund of the State and all other funds. The amounts deducted from state income tax revenues pursuant to subsection (A) are
11 automatically credited to the Trust Fund for the applicable fiscal year. The Board of Economic Advisors shall account for the Trust Fund
12 revenue separately from general fund revenues in reports to the Governor and the General Assembly.
13 (C) The tax as collected must be apportioned to the Trust Fund and to the General Fund in proportion to the reimbursement estimates
14 of the Board of Economic Advisors, as required in subsection (A).
15 (D) An unexpended balance in the Trust Fund at the end of a fiscal year must remain in the Trust Fund.
16 (E) The provisions of this section must not be construed as affecting funding levels for public education.
17 (F) Earnings on the Trust Fund must be credited to the general fund of the State.
18 (G) (1) Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the Trust Fund.
19 (2) Regardless of amounts transferred or appropriated to the Trust Fund for a fiscal year, there is appropriated to the Trust Fund
20 from the general fund of the State any additional amounts necessary to pay the reimbursements due from the Trust Fund."
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22 B. Section 11-11-330 of the 1976 Code, as last amended by Section 33A, Part II, Act 458 of 1996, is further amended to read:
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24 "Section 11-11-330. Funds credited to the Trust Fund for State Property Tax Relief Fund' must be used to provide property tax relief
25 in the manner prescribed in Section 12-37-251. The General Assembly shall appropriate As provided in Section 11-11-150, there is
26 transferred to the Trust Fund for each fiscal year an amount sufficient to reimburse sums equal to the amount of taxes that were not
27 collected for school districts by reason of the exemption provided in Section 12-37-251."
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29 C. Section 12-37-251(A)(1) of the 1976 Code, as last amended by Act 106 of 1997, is further amended to read:
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31 "(1) The Trust Fund for State Property Tax Relief Fund is established at must contain an amount equal to the revenue necessary to
32 fund a property tax exemption of one hundred thousand dollars based on the fair market value of property classified pursuant to Section
33 12-43-220(c) calculated on the school operating millage imposed for tax year 1995 or the current school operating millage, whichever is
34 lower, excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital construction. The
35 1995 tax year school operating millage or the current school operating millage, whichever is lower, is the base year millage for purposes
PART II PAGE 558
1 of calculating the amount necessary to fund the Trust Fund for the State Property Tax Relief Fund in accordance with this section.
2 However, in years in which the values resulting from a countywide reassessment and equalization program are implemented, the base year
3 millage must be adjusted to an equivalent millage rate in the manner that the Department of Revenue shall prescribe. Funds distributed
4 to a taxing district as provided in subsection (B) of this section must be used to provide a uniform property tax exemption for all property
5 in the taxing district which is classified pursuant to Section 12-43-220(c), excluding taxes levied for bonded indebtedness and payments
6 pursuant to lease purchase agreements for capital construction. "
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8 D. Section 12-37-450 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
9
10 "Section 12-37-450. (A) The inventory of business establishments shall be exempt from property taxation as follows: for the 1985
11 tax year, seventeen percent; for the 1986 tax years, fifty percent; for the 1987 and subsequent tax years, one hundred percent. The
12 exemption herein provided is conditional upon the appropriation by the State to the municipalities and counties for each year an amount
13 equal to tax revenue not collected by reason of the exemption. If the appropriation for any year is less than the amount equal to the tax
14 revenue not collected, the exemption shall be proportionately reduced in the manner provided in (C) below. The exemption provided in
15 this section is not allowed if the return is received by the Commission after the date due or the tax due is received by the county or
16 municipality after the date due.
17 (B) Counties and municipalities must be reimbursed for the revenue lost as a result of the business inventory tax exemption based on
18 the 1987 tax year millage and 1987 tax year assessed value of inventories in the counties and municipalities. If an amount of
19 reimbursement to a political subdivision within a county is attributable to a separate millage for debt service for any purpose, when that
20 debt is paid, the appropriate reimbursement amount must be redistributed proportionately to the other separate millages levied by the
21 political subdivision within the county for the 1987 tax year. Notwithstanding amounts appropriated for the inventory tax exemption
22 reimbursement, there There is appropriated credited annually from the general fund of the State as provided in Section 11-11-150 to the
23 Trust Fund for Tax Relief whatever amount is necessary to reimburse fully all counties and municipalities the required amount. The
24 Comptroller General shall make remittances of this reimbursement to counties and municipalities in four equal payments.
25 (C) The South Carolina Tax Commission shall annually notify each county auditor of the fair market value of merchant's inventory
26 in the manner provided by Section 12-37-1420, which must be assessed at a six percent ratio and entered on the tax duplicate. For the
27 purpose of implementing the business inventory tax exemption provided in this section, the assessed value will then be credited by
28 seventeen percent for taxable year 1985, by fifty percent for taxable year 1986, and by one hundred percent for taxable year 1987 and after
29 1987. If, for taxable years 1986 and 1987 the State does not reimburse the counties and municipalities for the full amount of the revenue
30 lost because of the applicable exemption, the counties and municipalities shall credit the percentage reimbursed to the merchant's account
31 and bill the remainder to the merchant.
32 (D) Notwithstanding any other provision of law, business inventory exempted from property taxation in the manner provided in this
33 section is considered taxable property in an amount equal to the 1987 tax year assessed valuation for purposes of bonded indebtedness
34 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'
35 pursuant to item (3) of Section 59-20-20.
PART II PAGE 559
1 (E) Where a portion of a special purpose district is annexed to a municipality, and its service functions in the annexed area are assumed
2 by the municipality, the total amount remitted to the county and municipality under this section shall not exceed the total amount which
3 would be remitted to the two entities separately. However, the assessed valuation and special purpose district tax levy for tax year 1987
4 with respect to the annexed portion of the special purpose district must be taken into consideration in determining the proportionate share
5 of the total allocation due to the county and the municipality."
6
7 E. Section 12-37-935(B) of the 1976 Code, as added by Section 8A, Part II, Act 458 of 1996, is amended to read:
8
9 "(B) There is established in the State Treasury a fund separate and distinct from the general fund of the State and all other funds
10 styled The Depreciation Property Tax Reimbursement Fund. Annually as provided in Section 11-11-150, the General Assembly shall
11 appropriate there is credited to this fund the Trust Fund for Tax Relief an amount sufficient to reimburse all local taxing entities the amount
12 of revenue not collected as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and
13 equipment pursuant to this section. No reimbursement is allowed for any depreciation allowed in connection with custom molds and dies
14 used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals and
15 equipment used in the manufacture of tires by manufacturers who employ more than five thousand employees in this State and have over
16 one billion dollars in capital investment in this State. Reimbursements must be paid from the fund in the manner provided in Section
17 12-37-270, mutatis mutandis."
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19 F. Section 12-37-270 of the 1976 Code is amended to read:
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21 "Section 12-37-270. As provided in Section 11-11-150, there must be credited to the Trust Fund for Tax Relief in a fiscal year an
22 amount sufficient to pay the reimbursement provided by this section. The Comptroller General, from the general fund of the State from
23 the Trust Fund, shall annually shall pay to the county treasurer of the county in which the dwelling is situate for the account of each county,
24 school district, or special district therein a sum equal to the amount of taxes that was not collected for such county, school district, or
25 special district by reason of the exemption provided for in Section 12-37-250 and shall also annually shall pay to the governing body of
26 the municipality in which the dwelling is situate a sum equal to the amount of taxes that was not collected for such municipality by reason
27 of the exemption provided for in Section 12-37-250; provided, The county treasurer and municipal governing body shall furnish the
28 Comptroller General on or before April first following the tax year, or during an extension authorized by the Comptroller General not to
29 exceed sixty days an accounting or statement as prescribed by the Comptroller General that reflects the amount of county, municipal,
30 school district, or special district taxes that was not collected because of the exemption; and provided, further, that Any funds paid by
31 the Comptroller General as the result of an erroneous or improper application shall must be returned to the Comptroller General for deposit
32 in the general fund of the State.
33 Notwithstanding any other provisions of law, the Comptroller General shall purchase and distribute the applications for the homestead
34 exemption and the costs shall must be from the appropriations for reimbursement for the exemption Trust Fund.
35 The Comptroller General shall promulgate regulations as may be necessary to carry out the provisions herein of this section."
PART II PAGE 560
1 G. Section 12-37-280 of the 1976 Code is amended to read:
2
3 "Section 12-37-280. Any county, municipality, school district, and special district in which a person who has reached the age of
4 sixty-five years receives a homestead property tax exemption shall must be reimbursed for such the exemption from the general fund of
5 the State Trust Fund for Tax Relief. Such The reimbursement shall must be made by the Comptroller General on an annual basis on such
6 the terms and subject to such the conditions as he may prescribe.
7 Nothing contained in this section shall may be construed as authority to grant property tax exemption other than as provided for by
8 the laws and Constitution of this State."
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10 H. Section 6-27-45 of the 1976 Code is repealed.
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12 I. This section takes effect July 1, 1998.
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14
15 END OF PART II
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17 All acts or parts of acts inconsistent with any of the provisions of Part I of this act are suspended for the Fiscal Year
18 1998-99.
19 All acts or parts of acts inconsistent with any of the provisions of Part II of this act are repealed.
20 Except as otherwise specifically provided herein, this act takes effect immediately upon its approval by the Governor.