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Current Status Bill Number:View additional legislative information at the LPITS web site.4854 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20000330 Primary Sponsor:Robinson All Sponsors:Robinson, Koon, Limehouse, Allison, Barfield, H. Brown, Davenport, Easterday, Edge, Frye, Gamble, Gilham, Hamilton, Harrell, Harvin, Law, Littlejohn, Martin, Rice, Riser, Rodgers, Stille, Stuart, Taylor, Walker and Witherspoon Drafted Document Number:l:\council\bills\bbm\9453htc00.doc Residing Body:Senate Current Committee:Finance Committee 06 SF Date of Last Amendment:20000426 Subject:Motor Vehicle Property Tax Exemption Sales Tax Act, Taxation, Elections, Referendum History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 20000502 Introduced, read first time, 06 SF referred to Committee House 20000427 Read third time, sent to Senate House 20000426 Amended, read second time House 20000412 Request for debate by Representative Harrell R. Smith Altman Perry Kirsh Bales Stille W. McLeod ------ 20000407 Scrivener's error corrected House 20000406 Committee report: Favorable with 30 HWM amendment House 20000330 Introduced, read first time, 30 HWM referred to Committee Versions of This Bill Revised on April 6, 2000 - Word format Revised on April 7, 2000 - Word format Revised on April 26, 2000 - Word format
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 26, 2000
H. 4854
Introduced by Reps. Robinson, Koon, Limehouse, Allison, Barfield, H. Brown, Davenport, Easterday, Edge, Frye, Gamble, Gilham, Hamilton, Harrell, Harvin, Law, Littlejohn, Martin, Rice, Riser, Rodgers, Stille, Stuart, Taylor, Walker and Witherspoon
S. Printed 4/26/00--H.
Read the first time March 30, 2000.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5 IN CHAPTER 10 OF TITLE 4, RELATING TO LOCAL SALES AND USE TAXES, ENACTING THE MOTOR VEHICLE PROPERTY TAX EXEMPTION SALES TAX ACT, SO AS TO AUTHORIZE THE IMPOSITION BY REFERENDUM APPROVAL OF A SALES AND USE TAX IN A COUNTY IN INCREMENTS OF ONE-TENTH OF ONE PERCENT, NOT TO EXCEED TWO PERCENT, TO PROVIDE FOR THESE CIRCUMSTANCES RESULTING IN RESCINDING THE TAX, AND TO REQUIRE THE TAX REVENUE TO BE USED TO REPLACE PROPERTY TAX REVENUES NOT COLLECTED ON PRIVATE PASSENGER MOTOR VEHICLE AND MOTORCYCLES WHICH ARE EXEMPT FROM PROPERTY TAXES LEVIED IN THE COUNTY IF A MAJORITY IN THE REFERENDUM FAVOR THE SALES TAX.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 10, Title 4 of the 1976 Code is amended by adding:
Section 4-10-510. This article may be cited as the 'Personal Property Tax Exemption Sales Tax Act'.
Section 4-10-520. This article provides the only method in which the governing body of a county by ordinance may exempt private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors from property taxes levied in the county as provided in Section 3, Article X of the Constitution of this State.
Section 4-10-530. As used in this article, a county has the meaning provided for 'county areas' in Section 4-10-10(1).
Section 4-10-540. (A) Subject to the requirements of this article, the county council by ordinance may impose a sales and use tax in increments of one-tenth of one percent, not to exceed two percent, subject to referendum approval. The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace private passenger motor vehicle and motorcycle property taxes revenue in the county in the most recently completed fiscal year, but in no case more than two percent. The county council must obtain from the Board of Economic Advisors the board's certified estimate of the rate of sales and use tax necessary in the county to equal property tax revenues derived from private passenger motor vehicles and motorcycles in the latest completed fiscal year. If this rate exceeds two percent, the maximum rate the board may certify is two percent. This certified rate is the rate of tax that must appear in the referendum question. If the revenue of a two percent tax does not at least equal the revenue not collected, then for the first year of implementation, the shortfall must be made up by a distribution to the county from the Trust Fund for Tax Relief, and this distribution is considered additional sales tax revenue pursuant to this article. Thereafter, this distribution must be adjusted by an amount equal to any increase in the consumer price index in the most recently completed calendar year, but in no case may this distribution result in a reimbursement to a county that exceeds the personal property tax revenue not collected because of the exemption allowed by this article.
(B) If the property tax assessment ratio applicable to private passenger motor vehicles and motor cycles is reduced, then for a county where the tax allowed by this article is imposed, the board shall certify a new tax rate applying the reduced assessment ratio to the assessed value of vehicles in the county in the most recently completed fiscal year, using the millage applicable for that fiscal year, and calculate a tax rate sufficient to produce that revenue in a fiscal year, not to exceed two percent. This new rate applies effective beginning with the month the assessment ratio changes and continues to apply while that assessment ratio applies or until the tax is rescinded.
Section 4-10-550. (A) The sales and use tax authorized by this article is imposed by an enacting ordinance of the county council.
(B) Upon receipt of the ordinance, the county election commission shall conduct a referendum on the question of imposing the sales and use tax. A referendum for this purpose must be held at the time of the general election. Two weeks before the referendum the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(C) The referendum question to be on the ballot must read substantially as follows:
'Must a (rate) sales and use tax be imposed in (county) to replace property tax revenues not collected because of a one hundred percent property tax exemption for private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors otherwise taxable in the county?
(D) All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'. If a majority of the votes cast are in favor of imposing the tax, then the tax is imposed as provided in this article and beginning for motor vehicle tax years beginning on and after that date, and all other property tax years beginning after the year in which the referendum is held, all private passenger motor vehicles as defined in Section 56-3-630, motorcycles, general aviation aircraft, boats, and boat motors otherwise taxable in the county are exempt from property taxes levied in the county. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county governing body and to the Department of Revenue.
(E) Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
Section 4-10-560. If the sales and use tax is approved in the referendum, the tax is imposed on the first of July following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.
Section 4-10-570. (A) Upon petition of at least fifteen percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this article requesting that this tax be rescinded, the council shall direct the county election commission to conduct a referendum on the question of rescinding the sales and use tax. A referendum for this purpose must be held on the Tuesday following the first Monday in November following verification of the petition. Two weeks before the referendum the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must the (rate) sales and use tax imposed in (county) be rescinded with the revenue not collected replaced by extending the property tax to private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors previously not subject to property tax in this county?
(C)(1) All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'. If a majority of the votes cast are in favor of rescinding the tax, then the tax is rescinded effective July first following the referendum and property taxes apply to all private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors taxable in the county for motor vehicle tax years beginning after June 30 following the referendum and other property tax years beginning after the year in which the referendum is held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council. If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
(2) Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county. If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years. If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years. The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year or the referendum must be held on the Tuesday following the first Monday of November of the following year.
Section 4-10-580. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36 of Title 12 shall identify the county in which the personal property purchased at retail is stored, used, or consumed in this State.
(D) Utilities shall report sales in the county in which the consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county shall report separately in his sales tax return the total gross proceeds from business done in each county.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(G) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-590. (A) The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations.
(B) Revenues of the tax must be distributed by the county treasurer to the general funds of property taxing entities in the county in the proportion that each such entity collects of all property taxes levied in the county.
Section 4-10-600. The Board of Economic Advisors shall furnish data to the State Treasurer and to the counties receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to counties upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240."
SECTION 2. Section 11-11-150(A) of the 1976 Code, as added by Act 419 of 1998, is amended to read:
"(A) In calculating estimated state individual and corporate income tax revenues for a fiscal year the Board of Economic Advisors shall deduct amounts sufficient to pay the reimbursement required pursuant to:
(1) Section 12-37-251 for the residential property tax exemption;
(2) Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled;
(3) Section 12-37-935(B) for manufacturer's additional depreciation; and
(4) Section 12-37-450 for the inventory tax exemption; and
(5) Section 4-10-540(A) for the reimbursement provided for personal property taxes not collected on private passenger motor vehicles and motorcycles."
SECTION 3. This act takes effect upon ratification of an amendment to Section 3, Article X of the Constitution of this State authorizing the governing body of a county by ordinance to exempt private passenger motor vehicles and motorcycles from property tax levied in the county pursuant to a referendum held in the county.
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