Current Status Bill Number:941 Type of Legislation:Joint Resolution JR Introducing Body:Senate Introduced Date:19980121 Primary Sponsor:Courson All Sponsors:Courson, Wilson, Leatherman, Ryberg, Giese, Peeler, Russell, Thomas, Fair and Grooms Drafted Document Number:jic\5142htc.98 Residing Body:Senate Subject:Property tax assessment, separate millage levy on certain personal property; Taxation, Exemptions
Body Date Action Description Com Leg Involved
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Senate 19980428 Read second time, ordered to
third reading with notice of
general amendments, carrying
over all amendments to third
reading
Senate 19980421 Made Special Order
Senate 19980421 Recalled from Committee 06 SF
Senate 19980127 Committed to Committee 06 SF
Senate 19980127 Recalled from Committee 11 SJ
Senate 19980121 Introduced, read first time, 11 SJ
referred to Committee
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Indicates Matter Stricken
Indicates New Matter
RECALLED
April 21, 1998
S. 941
Introduced by Senators Courson, Wilson, Leatherman, Ryberg, Giese, Peeler, Russell, Thomas, Fair and Grooms
S. Printed 4/21/98--S.
Read the first time January 21, 1998.
The bill requires that thirty percent of the BEA's projected year-to-year general fund revenue growth be remitted to the Personal Property Tax Relief Fund. Because the constitutional amendment could be ratified as early as January 1999, it could have an impact on FY1998-99 revenues. In FY1998-99 this transfer would amount to an estimated $36.2 million. In FY1999-00 this transfer would amount to an estimated $67.5 million.
This proposal will set up a fund to reimburse local taxing entities for "all other personal property" taxes up to a maximum of the amount collected for tax year 1998. That amount is estimated at $706 million. "All other personal property" includes motor vehicles, boats, airplanes, and business personal property, and is currently assessed at 10.5 percent. This revenue would be reimbursed to local governments from the growth in state revenues. Each year thirty percent new general fund revenue will be allocated to the fund. The constitutional amendment requires local governments to annually adjust the millage rate applied to these properties to collect only $706 million as collected in FY1998-99. The BEA estimates that the general fund will collect $241 million in new money in FY1998-99. Since one-half of FY1998-99 is in tax year 1999, $36.2 million in FY1998-99 would be the obligation to the Personal Property Tax Relief Fund. The BEA estimates that the general fund will collect $225 million in new money in FY1999-00. Thirty percent, or $67.5 million, of the expected new collection would be set aside in the Personal Property Tax Relief Fund.
Approved By:
William C. Gillespie
Board of Economic Advisors
PROPOSING AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO FINANCE AND TAXATION BY ADDING SECTION 1A AND AMENDING EXISTING SECTION 6 OF THE ARTICLE SO AS TO REQUIRE PROPERTY CLASSIFIED AS "ALL OTHER PERSONAL PROPERTY" TO BE THE SUBJECT OF A SEPARATE MILLAGE LEVY WHICH MAY NOT EXCEED THE 1998 PROPERTY TAX YEAR LEVY ON SUCH PROPERTY INCLUDING MILLAGE LEVIED FOR BONDED INDEBTEDNESS AND TO MAKE A CONFORMING AMENDMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. It is proposed that Article X of the Constitution of this State be amended by adding Section 1A to read:
"Section 1A. For property tax years beginning after 1998, the classification of 'all other personal property' established pursuant to Section 1(8) of this article must be the subject of a separate millage rate imposition uniformly applied to property within the class, and this millage rate may not exceed the millage rate imposed for such property for any property tax year beginning in 1998, including amounts levied for that year for bonded indebtedness."
B. It is proposed that the first paragraph of Article X, Section 6 of the Constitution of this State be amended to read:
"The General Assembly may vest the power of assessing and collecting taxes in all of the political subdivisions of the State. Property tax levies shall be uniform in respect to persons and property within the jurisdiction of the body imposing such taxes; except as otherwise provided in this article; and provided, that on properties located in an area receiving special benefits from the taxes collected, special levies may be permitted by general law applicable to the same type of political subdivision throughout the State, and the General Assembly shall specify the precise condition under which such special levies shall be assessed."
SECTION 2. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Article X of the Constitution of this State be amended by adding Section 1A and by amending existing Section 6 so as to provide that property taxes imposed on property classified as 'all other personal property' for property tax years beginning after 1998 must be separately imposed at a uniform rate on all property in the class and at a rate that may not exceed the millage rate imposed on such property for any property tax year beginning in 1998?
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'."