Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 10:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.
A quorum being present, the proceedings were opened with a devotion by Senator FAIR as follows:
Beloved, hear words from Philippians 2:13:
"For it is God that worketh in you, both to will and to do His good pleasure."
Let us pray the Prayer for the Nation by Thomas Jefferson:
"Almighty God, Who has given us this good land for our heritage; We humbly beseech Thee that we may always prove ourselves a people mindful of Thy favor and glad to do Thy will. Bless our land with honorable ministry, sound learning, and pure manners. Save us from violence, discord, and confusion, from pride and arrogance, and from every evil way. Defend our liberties, and fashion into one united people, the multitude brought hither out of many kindreds and tongues. Endow with Thy spirit of wisdom those whom in Thy name we entrust the authority of government, that there may be justice and peace at home, and that through obedience to Thy law, we may show forth Thy praise among the nations of the earth. In time of prosperity fill our hearts with thankfulness, and in the day of trouble, suffer not our trust in Thee to fail; all of which we ask through Jesus Christ our Lord.
Amen."
The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
The following appointments were transmitted by the Honorable Mark C. Sanford:
Reappointment, Edgefield County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010
Hon. Brenda B. Carpenter, 225 McDaniel Dr., Trenton, S.C. 29847
Reappointment, Edgefield County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010
Hon. Davis R. Parkman, 507 Butler Street, Johnston, S.C. 29832
Senator RYBERG introduced Dr. Matt Gullickson of Aiken, S.C., Doctor of the Day.
At 10:05 A.M., Senator KNOTTS requested a leave of absence from 10:50 A.M. - 12:00 Noon.
On motion of Senator BRYANT, at 10:10 A.M., Senator VERDIN was granted a leave of absence from 10:15 A.M - 12:00 Noon.
At 10:20 A.M., Senator SETZLER requested a leave of absence from 10:00 - 11:30 A.M. on Thursday, May 4, 2006.
At 12:00 P.M., Senator RANKIN requested a leave of absence beginning at 1:30 P.M. tomorrow and lasting until Tuesday at Noon.
At 12:00 P.M., Senator PATTERSON requested a leave of absence for Friday, May 5, 2006.
At 4:25 P.M., Senator PEELER requested a leave of absence until 9:00 P.M. tonight.
At 4:25 P.M., Senator RANKIN requested a leave of absence beginning at 5:00 P.M. this evening and lasting until 7:30 A.M. in the morning.
At 4:30 P.M., Senator McGILL requested a leave of absence beginning at 6:00 P.M. this evening and lasting until 10:00 A.M. in the morning.
At 5:00 P.M., Senator JACKSON requested a leave of absence until 11:00 A.M. in the morning.
At 5:30 P.M., Senator ANDERSON requested a leave of absence beginning at 3:30 P.M. tomorrow and lasting until Tuesday at Noon.
The following were introduced:
S. 1385 (Word version) -- Senators Elliott, McGill, Land, Hutto, Matthews and Williams: A CONCURRENT RESOLUTION HONORING JOHNNY MAESTRO AND THE BROOKLYN BRIDGE AS THEY ARE RECOGNIZED FOR THEIR CONTRIBUTIONS TO POP MUSIC AND TO THE YOUTHFUL MEMORIES OF SEVERAL GENERATIONS OF SOUTH CAROLINIANS BY BEING INDUCTED AS NEW MEMBERS OF THE MUSIC HALL OF FAME IN MYRTLE BEACH, ON MAY 13, 2006, WHICH IS "JOHNNY MAESTRO AND THE BROOKLYN BRIDGE DAY" IN SOUTH CAROLINA.
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The Concurrent Resolution was introduced and referred to the Committee on Invitations.
S. 1386 (Word version) -- Senator Alexander: A BILL TO AMEND ACT 613 OF 1992, AS AMENDED, RELATING TO THE OCONEE COUNTY SUPERINTENDENT OF EDUCATION AND BOARD OF EDUCATION, SO AS TO PROVIDE THAT THE SUPERINTENDENT OF EDUCATION MUST BE ELECTED IN A NONPARTISAN ELECTION FOR A TERM OF TWO YEARS; TO PROVIDE THAT THE LEGISLATIVE DELEGATION MAY APPOINT A NEW SUPERINTENDENT IN THE EVENT OF A VACANCY; TO PROVIDE THAT THE CURRENT SUPERINTENDENT OF EDUCATION SHALL CONTINUE TO SERVE THROUGH JUNE 30, 2007; TO PROVIDE THAT THE OCONEE LEGISLATIVE DELEGATION MAY APPOINT THE SUPERINTENDENT OF EDUCATION IF NO PERSON QUALIFIES AS A CANDIDATE; TO PROVIDE THAT THE DUTIES AND COMPENSATION OF THE OCONEE COUNTY SUPERINTENDENT OF EDUCATION MUST BE DETERMINED BY THE DELEGATION; AND TO PROVIDE FOR AN ADVISORY REFERENDUM IN OCONEE COUNTY RELATING TO WHETHER THE OFFICE OF THE ELECTED SUPERINTENDENT OF EDUCATION OF OCONEE COUNTY SHOULD BE ABOLISHED AND TO PROVIDE FOR CERTIFICATION OF REFERENDUM RESULTS AND COSTS.
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Read the first time and ordered placed on the Local and Uncontested Calendar.
S. 1387 (Word version) -- Senator Lourie: A SENATE RESOLUTION TO CONGRATULATE THE RICHLAND NORTHEAST HIGH SCHOOL'S MODEL UNITED NATIONS TEAM ON ITS SEVENTEENTH CONSECUTIVE INTERNATIONAL FIRST PLACE AWARD AT THE NATIONAL HIGH SCHOOL MODEL UNITED NATIONS CONFERENCE IN NEW YORK CITY ON MARCH 21-26, 2006, AND TO HONOR THESE DISTINGUISHED STUDENTS AND THEIR ADVISOR, LYNN WASHINGTON, FOR THIS UNPRECEDENTED ACCOMPLISHMENT.
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The Senate Resolution was adopted.
S. 1388 (Word version) -- Senator Elliott: A SENATE RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE SOUTH CAROLINA SENATE UPON THE PASSING OF HAROLD E. LEWIS OF HORRY COUNTY AND TO OFFER HIS FAMILY AND MANY FRIENDS THE DEEPEST SYMPATHY.
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The Senate Resolution was adopted.
S. 1389 (Word version) -- Senator Martin: A SENATE RESOLUTION EXTENDING THE CONGRATULATIONS OF THE MEMBERS OF THE SENATE TO MR. AND MRS. JOHN A. MARTIN OF EASLEY ON THE OCCASION OF THEIR FIFTIETH WEDDING ANNIVERSARY AND WISHING FOR THEM MANY MORE YEARS OF WEDDED BLISS AND GOOD HEALTH.
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The Senate Resolution was adopted.
S. 1390 (Word version) -- Senator Peeler: A SENATE RESOLUTION EXPRESSING THE SINCERE SORROW OF THE MEMBERS OF THE SENATE AT THE PASSING OF MR. JULIAN HAROLD FOWLER OF UNION AND EXTENDING SYMPATHY TO HIS FAMILY AND FRIENDS.
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The Senate Resolution was adopted.
H. 5084 (Word version) -- Reps. Mitchell, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Bannister, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hodges, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Witherspoon and Young: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR MR. TERRY MATTHEW MOORE OF SPARTANBURG COUNTY UPON HIS RETIREMENT AS DIRECTOR OF THE NORTHWEST RECREATION CENTER AND TO WISH HIM WELL IN ALL OF HIS FUTURE ENDEAVORS.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5086 (Word version) -- Reps. Rutherford, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Bannister, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hodges, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Witherspoon and Young: A CONCURRENT RESOLUTION EXPRESSING THE SINCERE GRATITUDE OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE PARTICIPATING RESTAURANTS WHO GENEROUSLY OFFERED UP THE FINEST AND TASTIEST SOUTHERN CUISINE ON THE GROUNDS OF THE STATE HOUSE AT THE HOSPITALITY ASSOCIATION OF SOUTH CAROLINA'S TASTE OF SOUTH CAROLINA LEGISLATIVE LUNCHEON, WEDNESDAY, APRIL 19, 2006.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5087 (Word version) -- Rep. Agnew: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR SANDRA MILFORD OF ABBEVILLE COUNTY FOR HER OUTSTANDING COMMITMENT AND DEDICATION TO THE EDUCATION OF SOUTH CAROLINA'S YOUTH, AND TO WISH HER ALL THE BEST UPON HER RETIREMENT.
The Concurrent Resolution was adopted, ordered returned to the House.
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.
H. 3726 (Word version) -- Reps. Ott, Clark, J.E. Smith, McGee, Witherspoon, Branham, Cobb-Hunter, Duncan, Hayes, Lucas, M.A. Pitts, Taylor and R. Brown: A BILL TO AMEND TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FISH, GAME, AND WATERCRAFT, SO AS TO ENACT "CHANDLER'S LAW" BY ADDING CHAPTER 26 SO AS TO PROVIDE FOR THE REGULATION, REGISTRATION, AND TITLING OF ALL-TERRAIN VEHICLES BY THE DEPARTMENT OF NATURAL RESOURCES, INCLUDING THE REQUIREMENT THAT A PERSON UNDER SIXTEEN MUST COMPLETE A DRIVING SAFETY COURSE BEFORE HE MAY OPERATE AN ALL-TERRAIN VEHICLE AND TO PROVIDE PENALTIES FOR CERTAIN VIOLATIONS.
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 (GJK\20869SD06), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Title 50 of the 1976 Code is amended by adding:
All-Terrain Vehicle Safety Act
Section 50-26-10. This chapter may be cited as 'Chandler's Law'.
Section 50-26-20. For the purposes of this chapter 'all-terrain vehicle' or 'ATV' means a motorized vehicle designed primarily for off-road travel on low-pressure tires which has a saddle seat and three or more wheels and handle bars for steering but does not include lawn tractors or battery-powered children's toys or any vehicle that is required to be licensed or titled for highway use.
Section 50-26-30. (A) The provisions of this section apply to the operation of all-terrain vehicles on those lands open to the public.
(B) It is unlawful for a parent or legal guardian to knowingly permit his child or ward eight years of age or younger to operate an all-terrain vehicle.
(C) A person at least nine years of age but not over sixteen years of age may not operate an all-terrain vehicle within this State unless the person:
(1) has successfully completed an all-terrain vehicle safety education course approved by the department, and has been issued a safety certificate; or
(2) is operating the all-terrain vehicle as part of a prescribed all-terrain vehicle safety education, training, and skills program and is under the direct supervision of a certified all-terrain vehicle safety instructor.
(D) The department may not issue an all-terrain vehicle operator's safety certificate to a person unless the person has successfully completed the all-terrain vehicle safety education course. A certificate of successful completion of an all-terrain vehicle safety education course issued by other states or territories of the United States, Canadian provinces, or other nations is valid for the purposes of this chapter if the department approves the course as comparable to the program required by this chapter.
(E) A person at least nine years of age but not over sixteen years of age may not operate, ride, or otherwise be propelled on an all-terrain vehicle within this State unless the person wears a safety helmet and eye protection meeting United States Department of Transportation standards for motorcycles.
(F) A person at least nine years of age but not over sixteen years of age must be accompanied by an adult while operating an all-terrain vehicle.
(G) It is unlawful to operate an all-terrain vehicle except in compliance with the local regulations and restrictions for an all-terrain vehicle operation.
(H) It is unlawful to operate an all-terrain vehicle between one-half hour after sunset to one-half hour before sunrise unless it is equipped with operational headlights and they are on.
(I) It is unlawful to cross an unbridged stream except at a designated ford or crossing. Riding in any water bodies or watercourses is unlawful.
(J) An all-terrain vehicle must have an effective muffler system in good working condition; a USDA Forest Service approved spark arrester in good working condition and a brake system in good operating condition.
(K) It is unlawful to operate an all-terrain vehicle while under the influence of alcohol or any controlled substance.
(L) It is unlawful to operate an all-terrain vehicle in a negligent or reckless manner.
(M) It is unlawful to operate an all-terrain vehicle in a manner that damages flora or fauna, roads, trails, firebreaks, signs, gates, guardrails, bridges, fencing, or other public property.
Section 50-26-40. All-terrain vehicles are exempt from ad valorem personal property taxes beginning with calendar year 2007.
Section 50-26-50. A person violating this chapter, unless otherwise specified, is guilty of a misdemeanor and, upon conviction, must be fined not less than fifty dollars nor more than two hundred dollars."
SECTION 2. This act takes effect July 1, 2007. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the committee amendment.
The committee amendment was adopted.
Senator HAYES proposed the following amendment (GJK\ 20879SD06), which was adopted:
Amend the bill, as and if amended, by adding a new SECTION to be appropriately numbered to read:
/SECTION ____. (A) Chapter 3, Title 56 of the 1976 Code is amended by adding:
Titling of All-Terrain Vehicles
Section 56-3-1420. An owner of an ATV may make application to the Department of Motor Vehicles for a title for the vehicle accompanied by the required fee and upon the appropriate form prescribed and furnished by the department. The application must be accompanied by a manufacturer's certificate of origin or previous title properly assigned to the applicant.
Section 56-3-1425. When a person who is not a licensed ATV dealer receives by purchase, gift, trade, or by another means a vehicle that was titled in this State, the person who receives the vehicle may make application to the department for a title. The application must be accompanied by the required documents and fee for title. The department shall issue a certificate of title once it has received a properly completed application. An owner of an ATV, before the enactment of this article, who cannot provide proof of ownership, may request an affidavit from the sheriff in the county in which he resides. The affidavit shall state that the sheriff finds the person making application for the title is the legal owner of the ATV. Before issuing the affidavit, the sheriff must verify through the National Crime Information Center that the ATV is not stolen. The department shall issue a title application to the owner upon presentation of the affidavit, application, and fee.
Section 56-3-1430. The title fee for an ATV is contained in Section 56-19-420(A). For purposes of this article, an all-terrain vehicle (ATV) is defined as provided in Section 50-26-20.
(B) Notwithstanding the provisions of Section 2 of this act, the provisions of this section take effect upon approval by the Governor./
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
The amendment was adopted.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
S. 1383 (Word version) -- Senator Verdin: A CONCURRENT RESOLUTION TO CELEBRATE THE REMARKABLE LIFE OF MR. WILLIAM D. TAYLOR, SR. OF CLINTON ON THE JOYOUS OCCASION OF HIS NINETY-THIRD BIRTHDAY AND TO WISH HIM MANY MORE YEARS OF HEALTH AND HAPPINESS.
Returned with concurrence.
Received as information.
S. 1384 (Word version) -- Senator Lourie: A CONCURRENT RESOLUTION TO CONGRATULATE KATHLEEN K. "KATHY" WILLIAMS, CERTIFIED ASSOCIATION EXECUTIVE, OF COLUMBIA UPON BEING CHOSEN THE 2006 ASSOCIATION EXECUTIVE OF THE YEAR BY THE SOUTH CAROLINA SOCIETY OF ASSOCIATION EXECUTIVES.
Returned with concurrence.
Received as information.
H. 4324 (Word version) -- Reps. Ceips, Altman, Loftis, Coates, Moody-Lawrence and Toole: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 80 TO CHAPTER 3, TITLE 56 SO AS TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES MAY ISSUE HUNTING ISLAND STATE PARK SPECIAL LICENSE PLATES.
The House returned the Bill with amendments.
On motion of Senator RYBERG, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
THE SENATE PROCEEDED TO A CONSIDERATION OF H. 4449.
H. 4449 (Word version) -- Reps. Cotty, Harrell, Merrill, Walker, Ballentine, Limehouse, E.H. Pitts, Haley, Clark, Townsend, Altman, Anthony, Bailey, Bingham, Bowers, Cato, Ceips, Chellis, Clyburn, Coleman, Cooper, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Hagood, Harrison, Haskins, Herbkersman, Hinson, Leach, Littlejohn, Loftis, Mahaffey, Martin, Phillips, Pinson, M.A. Pitts, Rhoad, Sandifer, Scarborough, F.N. Smith, G.M. Smith, J.R. Smith, Thompson, Toole, Tripp, Umphlett, Vaughn, White, Whitmire, Young, Bales, Lucas, Kirsh, Huggins, Brady, Hamilton, McGee and Stewart: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO IMPOSE AN ADDITIONAL TWO PERCENT SALES AND USE TAX, TO EXEMPT THE SALE OF UNPREPARED FOOD, TO PROVIDE AN ADDITIONAL EXEMPTION EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY FROM THE PROPERTY TAX, TO PROVIDE FOR THE MANNER, AMOUNT, AND CONDITIONS UNDER WHICH REVENUES IN THE HOMESTEAD EXEMPTION FUND SHALL BE DISBURSED TO PROPERTY TAXING ENTITIES OF THIS STATE, TO ADD SECTION 4-9-56 SO AS TO LIMIT THE MILLAGE PROPERTY TAXING ENTITIES OF THIS STATE MAY IMPOSE ON PROPERTY OTHER THAN OWNER-OCCUPIED RESIDENTIAL PROPERTY, TO REPEAL SECTIONS 12-37-223A, 12-37-270, 12-43-217, 12-43-250, 12-43-260, AND 12-43-295, ALL RELATING TO PROPERTY TAX.
(ABBREVIATED TITLE)
The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Finance.
At 10:21 A.M., Senator MALLOY made the point that a quorum was not present. It was ascertained that a quorum was not present.
Senator RICHARDSON moved that a Call of the Senate be made. The following Senators answered the Call:
Alexander Anderson Bryant Campsen Cleary Cromer Drummond Elliott Fair Ford Gregory Grooms Hawkins Hayes Hutto Knotts Land Leatherman Leventis Lourie Malloy Martin Matthews McConnell McGill Mescher Moore Patterson Peeler Pinckney Rankin Reese Richardson Ryberg Scott Setzler Sheheen Short Thomas Williams
A quorum being present, the Senate resumed.
Senator RITCHIE recorded his presence subsequent to the Call of the Senate.
Senator HAYES proposed the following Amendment No. P-24 (4449R029.RWH), which was subsequently tabled:
Amend the committee amendment, as and if amended, by striking the amendment in its entirety and inserting:
// Amend the bill, as and if amended, by striking the bill in its entirety and inserting:
/ SECTION 1. A. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Additional Sales, Use, and Casual Excise Tax
Section 12-36-1110. An additional sales, use, and casual excise tax equal to one-half of one percent is imposed on amounts taxable pursuant to this chapter. This additional tax does not apply to items subject to a maximum sales and use tax pursuant to Section 12-36-2110.
Section 12-36-1120. Notwithstanding any other provision of law providing for the use of sales and use tax revenues, the revenue of the tax imposed pursuant to this article must be credited to the State Property Tax Credit Fund established pursuant to Section 11-11-155.
Section 12-36-1130. The Department of Revenue may prescribe amounts that may be added to the sales price to reflect the additional tax imposed pursuant to this article."
B. The provisions of Section 4-10-350(F) and (G) of the 1976 Code apply mutatis mutandis with respect to the tax imposed pursuant to Article 11, Chapter 36, Title 12 of the 1976 Code as added by this section.
SECTION 2. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (A)(1) Except as provided pursuant to item (2) of this subsection, the revenue from the tax imposed pursuant to Section 12-36-1110 is automatically credited to a fund separate and distinct from the general fund of the State and all other funds known as the 'State Property Tax Credit Fund'. The Board of Economic Advisors shall account for the State Property Tax Credit Fund revenue separately from general fund revenues, and the board shall include estimates of the receipts in its November estimate and subsequent estimates through the board's February estimate and these estimates must be transmitted to the State Treasurer, the Comptroller General, the Chairmen of the House Ways and Means Committee and the Senate Finance Committee, and to each county. Distributions to counties and reimbursements to the general fund of the State pursuant to subsection (B) of this section must be based on the board's February estimate. No portion of these revenues may be credited to the Education Improvement Act (EIA) Fund except as provided in subsection (B) of this section.
(2) There is established in the State Treasury the State Property Tax Credit Fund Reserve (Reserve) as a fund separate and distinct from the State Property Tax Credit Fund, the general fund of the State, and all other funds. In the initial twelve months of the imposition of the tax imposed pursuant to Section 12-36-1110, the first fifty million dollars of the revenue is automatically credited to the Reserve. Thereafter, in each state fiscal year, the revenues of this tax as they accrue first must be credited to the Reserve until the balance in the Reserve equals fifty million dollars. Balances in the Reserve at the end of a fiscal year remain in this Reserve. If revenues in the State Property Tax Credit Fund in a fiscal year are less than that amount as estimated by the Board of Economic Advisors for the fiscal year, the State Budget and Control Board must first apply so much of the Reserve as is necessary or available to offset the deficit, with any balance paid from the General Deposit Account. No more than one-third of Reserve revenues may be used to offset a shortfall in the revenue necessary to reimburse the general fund of the State for the credit allowed pursuant to Section 12-6-3335. Secondly, to the extent monies are available in the Reserve after any transfers to the State Property Tax Credit Fund to offset a deficit, these monies must then be transferred by the State Budget and Control Board to the General Deposit Account to reimburse it for any distributions made to supplement amounts distributed from the State Property Tax Credit Fund.
(3) An unexpended balance in the State Property Tax Credit Fund or Reserve at the end of a fiscal year must remain in the State Property Tax Credit Fund or Reserve.
(4) Earnings on the State Property Tax Credit Fund or Reserve must be credited to the State Property Tax Credit Fund or Reserve.
(5) Nothing in this subsection prohibits appropriations by the General Assembly of additional revenues to the State Property Tax Credit Fund.
(B) Of the revenue estimated to be credited to the State Property Tax Credit Fund in a fiscal year:
(1) two-thirds must be remitted to county treasurers on a quarterly basis in the proportion that the population of the county is to the total population of the State and used as provided in subsection (C) of this section. Population data must be as determined in the decennial United States census and the most recent update to that data as determined by the Office of Research and Statistics of the State Budget and Control Board;
(2) one-third must used to reimburse the general fund of the State for the income tax credits allowed pursuant to Section 12-6-3355.
(C)(1)(a) Revenues received by a county pursuant to subsection (B)(1) of this section must be used to provide a property tax credit against the property tax liability for property tax imposed for county operations on owner-occupied residential property classified for property tax purposes pursuant to Section 12-43-220(c). The base credit is an amount determined by dividing the total estimated revenues received by the county pursuant to subsection (B)(1) of this section during the applicable fiscal year by the number of parcels eligible for the credit. Credit that exceeds the tax due on a parcel must be reallocated in a uniform amount to remaining parcels with a property tax liability for property tax imposed for county operations.
(b) If the total distribution to a county exceeds the amount required to replace all revenue of property tax imposed for county operations on owner-occupied residential property, that excess must be used to provide a credit against property taxes imposed by the school districts in the county for school operations in the manner provided in subitem (a) of this item, mutatis mutandis.
(2)(a) For purposes of this subsection:
(i) 'property tax imposed for county operations' includes all ad valorem tax imposed in the county for a property tax year after excluding all property taxes imposed to service general obligation debt of any political subdivision and school district in the county and all property taxes imposed for the operations of a municipality, special purpose or public service district, and special tax district. Uniform service fees billed on property tax notices are not considered property taxes for purposes of this credit; and
(ii) 'property tax imposed for school operations' includes all ad valorem tax imposed in a county for schools, not including any taxes imposed to service general obligation debt or other financing instruments used by school districts for capital improvements.
(3) The credit provided pursuant to this subsection must be reflected on each affected property tax notice on a separate line as a credit amount designated 'State Property Tax Credit'.
(4) The credit allowed pursuant to this subsection must be applied before any credit provided pursuant to Section 4-10-40(B) is applied to eligible property, and to the extent the total of these credits exceeds the liability to which the credit applies, the excess must be added proportionately to the credit allowed pursuant to Section 4-10-40(B) as applied to private passenger motor vehicles registered in the county.
(5) The Department of Revenue may prescribe procedures and promulgate regulations as necessary for the administration of the credit allowed by this subsection."
SECTION 3. Article 25, Chapter 6 of the 1976 Code is amended by adding:
"Section 12-6- 3335. (A) As used in this section:
(1) 'Adjusted gross income' means adjusted gross income for federal income tax purposes reported by a property taxpayer in a taxable year to which must be added such income of other individuals in the household if not included in the federal adjusted gross income of the property taxpayer.
(2) 'Applicable percentage' means the greater of five percent of adjusted gross income or a percentage of adjusted gross income calculated by the Board of Economic Advisors based on the estimated reimbursement amount to the general fund of the State pursuant to Section 11-11-155(B)(2). The board shall certify the applicable percentage to the Department of Revenue at the time of the board's February estimate.
(3) 'Household' means the taxpayer's spouse and any other individual residing with the taxpayer in the residence, not including an individual claimed or eligible to be claimed as a dependant on the taxpayer's federal income tax return.
(4) 'Residence' means residential real property classified for property tax purposes pursuant to Section 12-43-220(c).
(B) There is allowed as a credit against the tax imposed pursuant to Section 12-6-510 on a resident individual taxpayer a sum equal to the amount by which property tax paid during the taxable year by the taxpayer on the taxpayer's residence exceeds the applicable percentage of the taxpayer's adjusted gross income as defined in subsection (A)(1) of this section. After all other applicable credits have been applied, if the credit allowed pursuant to this section exceeds the state individual income tax liability of the claimant, the difference must be refunded to the claimant.
(C) A copy of the treasurer's receipt for the property tax paid must accompany the claim for the credit allowed pursuant to this section, together with other information the department may require for the proper administration of this credit.
(D) If a resident individual taxpayer or member of that taxpayer's household is not required to file a federal and South Carolina individual income tax return, the department shall prescribe abbreviated forms for the calculation of adjusted gross income which may be used by the claimant to claim the credit allowed by this section, and these separate forms are considered state individual income tax returns for all purposes.
(E) Regardless of the amount of property taxes paid or number of residences occupied by a claimant during the applicable taxable year, the credit allowed pursuant to this section only extends to property taxes paid on one residence."
SECTION 4. This act takes effect upon approval by the Governor and its various provisions apply as follows:
(1) The sales and use tax imposed pursuant to Article 11, Chapter 36, Title 12 of the 1976 Code as added by this act takes effect June 1, 2006.
(2) The property tax credit allowed pursuant to Section 11-11-155(C) of the 1976 Code as added by this act applies for property tax years beginning after 2005.
(3) The income tax credit allowed pursuant to Section 12-6-3335 of the 1976 Code as added by this act applies for taxable years beginning after 2005. / //
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator McCONNELL spoke on the amendment.
On motion of Senator McCONNELL, with unanimous consent, the Senate agreed that at the conclusion of the Joint Assembly, the Senate would recede until 2:00 P.M.
Senator McCONNELL continued speaking on the amendment.
On motion of Senator McCONNELL, debate was interrupted by the Joint Assembly and recess.
The PRESIDENT appointed Senators VERDIN, GROOMS and O'DELL to escort the winners of the 2006 Jean Laney Harris Folk Heritage Awards and members of their party to the House of Representatives for the Joint Assembly.
The PRESIDENT appointed Senators LOURIE, LEATHERMAN, RICHARDSON, ALEXANDER, MARTIN, GREGORY, HAYES and LAND to escort the winners of the 2006 Elizabeth O'Neill Verner Awards and members of their party to the House of Representatives for the Joint Assembly.
At 11:55 A.M., the Senate receded from business for the purpose of attending the Joint Assembly.
At 12:30 P.M., the Senate appeared in the Hall of the House.
The PRESIDENT of the Senate called the Joint Assembly to order and announced that it had convened under the terms of a Concurrent Resolution adopted by both Houses:
H. 4871 (Word version) -- Reps. Harrell and Phillips: A CONCURRENT RESOLUTION TO FIX WEDNESDAY, MAY 3, 2006, AT 12:00 NOON, IMMEDIATELY BEFORE THE FOLK HERITAGE AND ELIZABETH O'NEILL VERNER AWARDS AS THE DATE FOR THE HOUSE OF REPRESENTATIVES AND THE SENATE TO MEET IN JOINT SESSION IN THE HALL OF THE HOUSE OF REPRESENTATIVES FOR THE PURPOSE OF ELECTING MEMBERS OF THE BOARD OF TRUSTEES OF COASTAL CAROLINA UNIVERSITY, AND MEMBERS OF THE LEGISLATIVE AUDIT COUNCIL, AND OLD EXCHANGE BUILDING COMMISSION TO SUCCEED THOSE MEMBERS WHOSE TERMS EXPIRE IN 2006, OR WHOSE POSITIONS OTHERWISE MUST BE FILLED; AND TO ESTABLISH A PROCEDURE REGARDING NOMINATIONS AND NOMINATING AND SECONDING SPEECHES FOR THE CANDIDATES FOR THESE OFFICES DURING THE JOINT SESSION.
The PRESIDENT announced that nominations were in order to elect a successor to a position on the Board of Trustees for Coastal Carolina University from the 3rd Congressional District, Seat #5.
Representative Phillips, Chairman of the Committee to Screen Candidates for State Colleges and Universities, indicated that Mr. Bill Biggs and Mr. Jennings G. McAbee had been screened and found qualified to serve.
On motion of Representative Phillips, with unanimous consent, the name of Mr. Jennings G. McAbee was withdrawn from consideration.
Representative Phillips placed the name of Mr. Bill Biggs in nomination.
Representative Phillips moved that nominations be closed and, with unanimous consent, the vote was taken by acclamation, resulting in the election of the nominee.
Whereupon, the PRESIDENT announced that the Honorable Bill Biggs was elected to a position on the Board of Trustees for Coastal Carolina University, 3rd Congressional District, Seat #5 for the term prescribed by law.
The PRESIDENT announced that nominations were in order to elect a successor to a position on the Board of Trustees for Coastal Carolina University, 6th Congressional District, Seat #12.
Representative Phillips, Chairman of the Committee to Screen Candidates for State Colleges and Universities, indicated that Mr. Joseph Wayne George and Mrs. Ann Kirven Sanders had been screened and found qualified to serve.
On motion of Representative Phillips, with unanimous consent, the name of Mrs. Ann Kirven Sanders was withdrawn from consideration.
Representative Phillips placed the name of Mr. Joseph Wayne George in nomination.
Representative Phillips moved that nominations be closed and, with unanimous consent, the vote was taken by acclamation, resulting in the election of the nominee.
Whereupon, the PRESIDENT announced that the Honorable Joseph Wayne George was elected to a position on the Board of Trustees for Coastal Carolina University, 6th Congressional District, Seat #12 for the term prescribed by law.
Subsequent to the elections to the Board of Trustees of Coastal Carolina, the PRESIDENT announced that nominations were in order to elect a successor to three at-large positions on the Old Exchange Building Commission
Representative Phillips indicated that Mr. John S. Coussons, Ms. Retta Sanders and Ms. Anne T. Alford had been screened and found qualified to serve.
On motion of Representative Phillips, the names of Mr. John S. Coussons, Ms. Retta Sanders and Ms. Anne T. Alford were placed in nomination.
Representative Phillips moved that nominations be closed and, with unanimous consent, the vote was taken by acclamation, resulting in the election of the nominees.
Whereupon, the PRESIDENT announced that the Honorable John S. Coussons, the Honorable Retta Sanders and the Honorable Anne T. Alford were elected to the Old Exchange Building Commission for the terms prescribed by law.
Subsequent to the election to the Old Exchange Building Commission, the PRESIDENT announced that nominations were in order to elect successors to two positions on the Legislative Audit Council.
Representative Harrison indicated that Ms. Susan B. Hoag and Mr. S. Jahue Moore had been screened and found qualified to serve.
On motion of Representative Harrison, the names of Ms. Susan B. Hoag and Mr. S. Jahue Moore were placed in nomination.
Representative Harrison moved that nominations be closed and, with unanimous consent, the vote was taken by acclamation, resulting in the election of the nominees.
Whereupon, the PRESIDENT announced that the Honorable Susan B. Hoag and the Honorable S. Jahue Moore were elected to the two positions on the Legislative Audit Council for the terms prescribed by law.
Pursuant to the provisions of H. 4871, immediately following the Joint Assembly to elect successors to the Coastal Carolina University, Legislative Audit Council and the Old Exchange Building Commission, the PRESIDENT of the Senate announced that the Joint Assembly had convened under the terms of a further Concurrent Resolution adopted by both Houses:
H. 4699 (Word version) -- Reps. Jennings, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Bannister, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hodges, Hosey, Howard, Huggins, Jefferson, Kennedy, Kirsh, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, J.H. Neal, J.M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E.H. Pitts, M.A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D.C. Smith, F.N. Smith, G.M. Smith, G.R. Smith, J.E. Smith, J.R. Smith, W.D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Witherspoon and Young: A CONCURRENT RESOLUTION INVITING THE WINNERS OF THE 2006 JEAN LANEY HARRIS FOLK HERITAGE AWARDS AND THE MEMBERS OF THE 2006 JEAN LANEY HARRIS FOLK HERITAGE AWARDS ADVISORY COMMITTEE TO ATTEND A JOINT SESSION OF THE HOUSE OF REPRESENTATIVES AND THE SENATE IN THE HALL OF THE HOUSE OF REPRESENTATIVES ON WEDNESDAY, MAY 3, 2006, AT 12:00 NOON OR A TIME TO BE DETERMINED BY THE SPEAKER OF THE HOUSE AND THE PRESIDENT PRO TEMPORE OF THE SENATE, RECOGNIZING AND COMMENDING THE 2006 JEAN LANEY HARRIS FOLK HERITAGE AWARD WINNERS FOR THEIR OUTSTANDING CONTRIBUTIONS TO FOLK ART IN SOUTH CAROLINA, AND INVITING THE WINNERS OF THE 2006 ELIZABETH O'NEILL VERNER AWARDS TO ATTEND A JOINT SESSION OF THE HOUSE OF REPRESENTATIVES AND THE SENATE IN THE HALL OF THE HOUSE OF REPRESENTATIVES IMMEDIATELY FOLLOWING THE 2006 JEAN LANEY HARRIS FOLK HERITAGE AWARDS CEREMONY TO RECOGNIZE AND COMMEND THE 2006 ELIZABETH O'NEILL VERNER AWARDS WINNERS FOR THEIR OUTSTANDING ACHIEVEMENTS AND CONTRIBUTIONS TO THE ARTS IN SOUTH CAROLINA.
The PRESIDENT appointed Senators VERDIN, GROOMS and O'DELL to the Escort Committee on behalf of the Senate.
The Speaker appointed Representatives Taylor, Umphlett, G. R. Smith and Thompson to the Escort Committee on behalf of the House of Representatives.
The Escort Committees of the Senate and House accompanied the winners of the 2006 Jean Laney Harris Folk Heritage Award and the members of the 2006 Jean Laney Harris Folk Heritage Award Advisory Committee to the rostrum to commend them for their outstanding contributions to folk art in South Carolina.
The PRESIDENT introduced the Speaker of the House who, in turn, introduced the respective award winners who were presented certificates by the PRESIDENT honoring their respective talents:
Mr. T. C. Foster, an "Old Time" fiddler from Laurens County, was escorted by Senator VERDIN and Representative Taylor;
Mr. and Mrs. Guy Faulk, advocates for Blue Grass music from Berkeley County, were escorted by Senator GROOMS and Representative Umphlett;
Mr. Mac Arnold, blues musician from Greenville County, was escorted by Senator VERDIN and Representative G. R. Smith; and
Ms. Lena Allen Davis, also known affectionately as "Sister Lena", a shaped note choral singer from Anderson County, was escorted by Senator O'DELL and Representative Thompson.
The Speaker of the House invited Mr. Mac Arnold and Mrs. Lena Davis, accompanied by the members of the Community Workshop Choir, to entertain the body with respective selections highlighting their winning talents
At the conclusion of the presentation of awards to the 2006 Jean Laney Harris Folk Heritage Award winners, the Joint Assembly proceeded to the presentation of the winners of the 2006 Elizabeth O'Neill Verner Awards.
The PRESIDENT appointed Senators LOURIE, LEATHERMAN, RICHARDSON, ALEXANDER, MARTIN, GREGORY, HAYES and LAND to the Escort Committee on behalf of the Senate.
The Speaker appointed Representatives Harrison, J. Brown, Rutherford, Coates, Chalk, Skelton, Emory and Miller to the Escort Committee on behalf of the House of Representatives.
The Elizabeth O'Neill Verner Awards are the annual official Governor's Awards for the Arts in South Carolina and are the highest honor the State gives in the arts.
The Escort Committees of the Senate and House accompanied the winners of the 2006 Elizabeth O'Neill Verner Awards to the rostrum to commend them for their outstanding contributions to arts in South Carolina.
The PRESIDENT introduced the Speaker of the House who, in turn, introduced the respective award winners who were presented certificates honoring their respective talents.
The 2006 Verner recipients were announced as follows:
The Arts in Education Award was presented to Ms. Christine Sides Fisher who was escorted by Senator LEATHERMAN and Representative Coates;
The Organization Award was presented to the Arts Center of Coastal Carolina and representatives were escorted by Senator RICHARDSON and Representative Chalk;
The Government Award was presented to the S. C. Department of Mental Health's Art of Recovery Program and representatives were escorted by Senator LOURIE and Representative Rutherford;
The Individual Award was presented to Mr. Marvin-Joe Merck who was escorted by Senators ALEXANDER and MARTIN and Representative Skelton;
The Individual Artist Award was presented to Mr. Robert C. Doster who was escorted by Senator GREGORY and Representative Emory;
The Lifetime Achievement Award was presented to Mr. David C. Sennema who was escorted by Representatives Harrison and J. Brown; and,
The Special Award was presented to Mr. Charles Wadsworth who was escorted by Senators HAYES and LAND and Representative Miller.
The purposes of the Joint Assembly having been accomplished, the PRESIDENT declared it adjourned, whereupon the Senate returned to its Chamber and was called to order by the PRESIDENT.
At 12:45 P.M., the Senate resumed.
At 12:45 P.M., on motion of Senator McCONNELL, the Senate receded from business until 2:00 P.M.
The Senate reassembled at 2:15 P.M. and was called to order by the PRESIDENT.
The Senate resumed consideration of H. 4449.
H. 4449 (Word version) -- Reps. Cotty, Harrell, Merrill, Walker, Ballentine, Limehouse, E.H. Pitts, Haley, Clark, Townsend, Altman, Anthony, Bailey, Bingham, Bowers, Cato, Ceips, Chellis, Clyburn, Coleman, Cooper, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Hagood, Harrison, Haskins, Herbkersman, Hinson, Leach, Littlejohn, Loftis, Mahaffey, Martin, Phillips, Pinson, M.A. Pitts, Rhoad, Sandifer, Scarborough, F.N. Smith, G.M. Smith, J.R. Smith, Thompson, Toole, Tripp, Umphlett, Vaughn, White, Whitmire, Young, Bales, Lucas, Kirsh, Huggins, Brady, Hamilton, McGee and Stewart: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO IMPOSE AN ADDITIONAL TWO PERCENT SALES AND USE TAX, TO EXEMPT THE SALE OF UNPREPARED FOOD, TO PROVIDE AN ADDITIONAL EXEMPTION EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY FROM THE PROPERTY TAX, TO PROVIDE FOR THE MANNER, AMOUNT, AND CONDITIONS UNDER WHICH REVENUES IN THE HOMESTEAD EXEMPTION FUND SHALL BE DISBURSED TO PROPERTY TAXING ENTITIES OF THIS STATE, TO ADD SECTION 4-9-56 SO AS TO LIMIT THE MILLAGE PROPERTY TAXING ENTITIES OF THIS STATE MAY IMPOSE ON PROPERTY OTHER THAN OWNER-OCCUPIED RESIDENTIAL PROPERTY, TO REPEAL SECTIONS 12-37-223A, 12-37-270, 12-43-217, 12-43-250, 12-43-260, AND 12-43-295, ALL RELATING TO PROPERTY TAX.
(ABBREVIATED TITLE)
The Senate resumed consideration of the Bill, the question being the adoption of the Amendment No. P-24 (4449R029.RWH) proposed by Senator HAYES, which was tabled.
Senator McCONNELL spoke on the amendment.
Senator McCONNELL moved to lay the amendment on the table.
At 2:24 P.M., Senator MALLOY made the point that a quorum was not present. It was ascertained that a quorum was present.
The Senate resumed.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Bryant Campsen Cleary Courson Cromer Elliott Fair Grooms Hawkins Knotts Martin McConnell Mescher Moore Peeler Rankin Richardson Ritchie Ryberg Scott Setzler Sheheen Short Thomas Verdin
Anderson Drummond Gregory Hayes Hutto Jackson Land Leatherman Leventis Lourie Malloy Matthews McGill O'Dell Pinckney Reese Williams
The amendment was laid on the table.
Senators KNOTTS and THOMAS proposed the following Amendment No. P-25 (JUD4449.044), which was tabled:
Amend the FINANCE COMMITTEE REPORT, as and if amended, by striking the report in its entirety and adding appropriately numbered PARTS and SECTIONS to read:
Property Tax Exemption, Determination of Fair Market Value, and Sales Tax Increase
SECTION 1. A. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Additional Sales, Use, and Casual Excise Tax
Section 12-36-1110. Beginning June 1, 2006, an additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter, except that this additional two percent tax does not apply to:
(1) amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients;
(2) items subject to a maximum sales and use tax pursuant to Section 12-36-2110; and
(3) unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons.
Section 12-36-1120. The revenue of the tax imposed by this article must be credited to the Homestead Exemption Fund established pursuant to Section 11-11-155.
Section 12-36-1130. The Department of Revenue may prescribe amounts that may be added to the sales price to reflect the additional tax imposed pursuant to this article."
B. The provisions of Section 4-10-350(F) and (G) of the 1976 Code apply mutatis mutandis with respect to the tax imposed pursuant to Article 11, Chapter 36, Title 12 of the 1976 Code as added by this section.
SECTION 2. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (1) For each fiscal year in which and after which this section takes effect, the revenue from the tax imposed pursuant to Section 12-36-1110, and an amount equal to the total of reimbursements paid pursuant to the provisions of Sections 12-37-251 and 12-37-270 in fiscal year 2005-2006 is automatically credited to a fund separate and distinct from the state general fund known as the 'Homestead Exemption Fund'. The Board of Economic Advisors shall account for the Homestead Exemption Fund revenue separately from general fund revenues, and the board shall make an annual estimate of the receipts by the Homestead Exemption Fund by February fifteenth of each year. This estimate shall be transmitted to the State Treasurer, Comptroller General, and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee. No portion of these revenues may be credited to the Education Improvement Act (EIA) Fund.
(2) There is established in the State Treasury the Homestead Exemption Fund Reserve (Reserve) as a fund separate and distinct from the Homestead Exemption Fund, the general fund of the State, and all other funds. Any revenue received from the imposition of the two percent additional sales and use tax imposed pursuant to Section 12-36-1110 for a fiscal year above what the Board of Economic Advisors estimated for that fiscal year must be transferred into the Reserve. Establishing this Reserve in the required amount is the second priority use of Homestead Exemption Fund revenues in a fiscal year. Balances in the Reserve at the end of a fiscal year remain in this Reserve. If revenues in the Homestead Exemption Fund available for reimbursements in a fiscal year are less than that amount as estimated by the Board of Economic Advisors for the fiscal year, the State Budget and Control Board must first apply so much of the Reserve as is necessary or available to offset the deficit before the balance may be paid from the state general fund. Secondly, to the extent monies are available in the Reserve after any transfers to the Homestead Exemption Fund to offset a deficit, these monies shall then be transferred by the Budget and Control Board to the state general fund to reimburse it for any distributions made to supplement reimbursements required to be made from the Homestead Exemption Fund.
(3) An unexpended balance in the Homestead Exemption Fund or Reserve Fund at the end of a fiscal year must remain in the Homestead Exemption Fund or Reserve Fund.
(4) Earnings on the Homestead Exemption Fund or Reserve Fund must be credited to the Homestead Exemption Fund or Reserve Fund.
(5) Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the Homestead Exemption Fund."
SECTION 3. A. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered new item at the end to read:
"( ) For property tax years beginning after 2006, one hundred percent of the fair market value of owner-occupied residential property eligible for and receiving the special assessment ration allowed owner-occupied residential property pursuant to Section 12-43-220(c) is exempt from all property taxes imposed for school operations."
SECTION 4. A. (1) The first undesignated paragraph of Section 12-43-220(a) of the 1976 Code is amended to read:
"All real and personal property owned by or leased to manufacturers and utilities and used by the manufacturer or utility in the conduct of the business must be taxed on an assessment equal to ten and one-half nine percent of the fair market value of the property. Notwithstanding any other provision of law, for purposes of calculating limits on 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 tax paying ability pursuant to Section 59-20-20(3), the assessment ratio imposed pursuant to this item is deemed to be 10.5 percent of fair market value."
(2) The change in the assessment ratio of manufacturing and utility property from ten and one-half percent of fair market value to nine percent of fair market value as provided in item (1) of this subsection is made pursuant to the authorization contained in Article X, Section 2 of the Constitution of this State.
B. Title 12, Chapter 44 of the 1976 Code is amended by adding:
"Section 12-44-180. There is allowed as a credit against any fee in lieu of tax payment negotiated pursuant to this chapter, Section 4-29-67, or Chapter 12 of Title 4, an amount equal to the fee otherwise due and payable so that the amount of property taxes owed for school operations is reduced by twenty percent."
SECTION 5. A. Section 12-43-220 of the 1976 Code, as last amended by Act 145 of 2005, is further amended by adding a new undesignated paragraph at the end of the section to read:
"As used in this section, fair market value with reference to real property means fair market value determined in the manner provided pursuant to Section 1A, Article X of the Constitution of this State."
B. Section 12-43-210 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-43-210. (A) All property must be assessed uniformly and equitably throughout the State. The South Carolina Department of Revenue may promulgate regulations to ensure equalization which must be adhered to by all assessing officials in the State.
(B) No reassessment program may be implemented in a county unless all real property in the county, including real property classified as manufacturing property, is reassessed in the same year."
C. Section 1B of Act 406 of 2000 is amended to read:
"(B) The exemption amount of the homestead exemption allowed pursuant to Section 12-37-250 of the 1976 Code is raised from twenty to fifty thousand dollars for property tax year 2000 and thereafter, to be funded as provided herein. The amount appropriated to the Trust Fund for Tax Relief must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. For tax years after 2000, an amount sufficient to fund the exemption provided herein must be appropriated from the Tobacco Settlement Fund, before any reductions or withdrawals as may be provided by law, to the Trust Fund for Tax Relief and must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. Reserved."
D. Items (1) and (2) of Section 11-11-150(A) of the 1976 Code, as added by Act 419 of 1998, are amended to read:
"(1) Section 12-37-251 for the residential property tax exemption Reserved;
(2) Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled Reserved;"
E. Sections 12-37-251, 12-37-270, 12-43-217, 12-43-260, and 12-43-295, all of the 1976 Code, are repealed.
F. Section 12-37-223A of the 1976 Code is repealed.
SECTION 6. Assessors and other staff responsible for the assessment of property for ad valorem taxation purposes are required to receive nine hours of instruction each year in the laws applicable to assessment for ad valorem taxation, methods of valuating property, administration of the assessor's office and records of the assessor's office, and other functions related to the assessor's office. This instruction must be received from the Department of Revenue or other providers or courses approved by the Department of Revenue.
SECTION 7. (A) The sales tax exemptions in Section 12-36-2120 of the 1976 Code shall be reviewed by the General Assembly at its 2010 session and at its sessions every ten years thereafter.
(B)(1) There is established the Joint Sales Tax Exemptions Review Committee composed of seven members; three of whom must be members of the Senate appointed by the Chairman of the Senate Finance Committee, one of whom must be a member of the minority party; three of whom must be members of the House of Representatives appointed by the Chairman of the House Ways and Means Committee, one of whom must be a member of the minority party; and one of whom must be the Governor or the Governor's appointee who shall serve at the Governor's pleasure. The committee shall elect a chairman and vice chairman from among its members. All legislative members shall serve ex officio. The committee shall assist the General Assembly in performing its duties under the provisions of subsection (A) in addition to its duties required by this subsection.
(2) In carrying out its responsibilities under this act, the committee shall:
(a) make a detailed and careful study of the State's sales tax exemptions, comparing South Carolina laws to other states;
(b) publish a comparison of the State's sales tax exemptions to other states' laws;
(c) recommend changes, and recommend introduction of legislation when appropriate;
(d) submit reports and recommendations annually to the Governor and the General Assembly regarding sales tax exemptions.
(3) In carrying out its responsibilities under this act, the committee may:
(a) hold public hearings;
(b) receive testimony of any employee of the State or any other witness who may assist the committee in its duties;
(c) call for assistance in the performance of its duties from any employee or agency of the State.
(4) The committee may adopt by majority vote rules not inconsistent with this act that it considers proper with respect to matters relating to the discharge of its duties under this section. Professional and clerical services for the committee must be made available from the staffs of the General Assembly, the Budget and Control Board, and the Department of Revenue. The members of the committee may not receive mileage, per diem, subsistence, or any form of compensation for their service on the committee.
SECTION 8. A. 1. Section 4-12-30(D)(2)(a)(i) and (ii) is amended to read:
"(i) for real property, using the original income tax basis for South Carolina income tax purposes without regard to depreciation, if real property is constructed for the fee or is purchased in an arm's length transaction; otherwise, the property must be reported at its fair market value for ad valorem property tax purposes as determined by appraisal. The fair market value estimate established for the first year of the fee remains the fair market value of the real property for the life of the fee; and
(ii) for personal property, using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to any extraordinary obsolescence."
2. Section 4-12-30(E) of the 1976 Code is amended to read:
"(E) Calculations pursuant to subsection (D)(2) must be made on the basis that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)."
B. Items (1) and (2) of Section 12-44-50(A) of the 1976 Code are amended to read:
"(1) During the exemption period, the sponsor shall pay, or be responsible for payment, to the county the annual fee payment in connection with the economic development property which has been placed in service, in an amount not less than the property taxes that would be due on the economic development property if it were taxable but using:
(a) an assessment ratio of not less than six percent, or four percent for those projects qualifying under the enhanced investment definition;
(b) a millage rate that is, either:
(i) fixed for the life of the fee; or
(ii) is allowed to increase or decrease every fifth year in step with the average cumulative actual millage rate applicable to the project based upon the preceding five-year period; and
(c) a fair market value for the economic development property:
(i) if real property is constructed for the fee or is purchased in an arm's length transaction, the fair market value of real property is determined by using the original income tax basis for South Carolina income tax purposes without regard to depreciation, otherwise the property must be reported at its fair market value for ad valorem property taxes as determined by appraisal. The fair market value estimate established for the first year of the fee remains the fair market value of the real property for the life of the fee;
(ii) fair market value for personal property is determined by using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to extraordinary obsolescence; and
(d) to establish the millage rate for purposes of subsection (A)(1)(b)(i) or the first five years millage under (A)(1)(b)(ii), the millage rate must be no lower than the cumulative property tax millage rate levied by, or on behalf of, all taxing entities within which the project is located on either:
(i) June thirtieth of the year preceding the calendar year in which the fee agreement is executed; or
(ii) the millage rate in effect on June thirtieth of the calendar year in which the fee agreement is executed.
(2) The fee calculation must be made so that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)."
Distribution of Revenues and Millage Limitations
SECTION 1. (A)(1) For the year 2007, property taxing entities of this State other than school districts must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the property taxing entity.
(2) Beginning January 1, 2008, property taxing entities of the State other than school districts must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the property taxing entity and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increase of a property taxing entity other than a school district as provided in subsection (C) for any year stated as a percentage shall be multiplied by the entity's reimbursement amount for the previous year to determine the total distribution to the entity for the year. No such property taxing entity shall receive less in reimbursements beginning in 2008 than it received in 2007.
(B)(1) For the year 2007, school districts of this State must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the school district.
(2) Beginning January 1, 2008, school districts of this State must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the school district and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increases of the several school districts as provided in subsection (C) for any year shall be aggregated and the reimbursement increase a particular school district shall receive for that year shall be equal to an amount that is the school district's proportionate share of such funds based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act. No school district shall receive less in reimbursements beginning in 2008 than it received in 2007. For purposes of the reimbursement increases school districts receive under this item based on weighted pupil units determined pursuant to the Education Finance Act, an additional add-on weighting for students in poverty of 0.20 shall be included in the weightings provided in Section 59-20-40(1)(c) of the 1976 Code. The weighting for poverty shall provide additional revenues for students in kindergarten through grade twelve who qualify for Medicaid or who qualify for reduced or free lunches, or both. Revenues generated by this weighting must be used by districts and schools to provide services and research-based strategies for addressing academic or health needs of these students to ensure their future academic success, to provide summer school, reduced class size, after school programs, extended day, instructional materials, or any other research-based educational strategy to improve student academic performance. All amounts received by a district pursuant to the Education Finance Act must be expended only for classroom instruction and costs and expenses directly associated with classroom instruction.
(C) Beginning with the 2008 reimbursements to all property taxing entities of this State, these reimbursements must be increased on an annual basis by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Distribution of these reimbursement increases shall be as provided in subsections (A) and (B) of this section.
(D) The percentage of population growth in any year for any property taxing entity entitled to reimbursements from the Homestead Exemption Fund shall be based on estimates for such growth in the county wherein the property taxing entity is located as determined by the Office of Research and Statistics of the Budget and Control Board. Where the property taxing entity encompasses areas in more than one county, the population growth in that entity shall be the average of the growth in each county weighted to reflect the existing population of the property taxing entity in that county as compared to the existing population of the property taxing entity as a whole.
(E) Upon the beginning of reimbursements to property taxing entities including school districts as provided in this Part, reimbursements for a particular year must be paid to the property taxing entities by August thirty-first of that year.
(F) Notwithstanding any other provision of this section, the reimbursements provided pursuant to this section apply for real property located in redevelopment project areas pursuant to the Tax Increment Financing Law and the Tax Increment Financing Act for counties and for real property subject to a redevelopment plan adopted before the effective date of this act, the reimbursements provided pursuant to this section must not be less than dollar for dollar for the duration of the plan.
SECTION 2. (A) For purposes of determining reimbursements to property taxing entities including school districts for taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act, ad valorem property tax revenue of a property taxing entity not collected as a result of a one percent local option sales tax or local sales tax imposed in the entity pursuant to state or local law shall nevertheless be considered collected for purposes of determining reimbursements under Part II of this act.
(B) Beginning June 1, 2007, funds derived from a one percent local sales tax or local option sales tax imposed in a jurisdiction pursuant to state or local law which are used to reduce ad valorem property taxes imposed on owner-occupied residential property, must be thereafter applied on a pro-rata basis to reduce ad valorem property taxes on all other classes of property.
SECTION 3. To the extent revenues in the Homestead Exemption Fund are insufficient to pay all reimbursements required by law, the difference must be paid from the state general fund.
SECTION 4. Chapter 9, Title 4 of the 1976 Code is amended by adding:
"Section 4-9-56. (A) Beginning with the year 2007, a property taxing entity in this State including a school district may not levy any ad valorem taxation on owner-occupied residential property to which the exemption provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act apply, with the exception of any levy for general obligation bonded debt purposes. A property taxing entity including school districts which violates this provision must have its aid-to-subdivisions allocations in future general appropriations acts reduced until the violation is cured. The millage levied by a property taxing entity for the year 2006 shall be the millage used to determine the property tax revenue lost as a result of the exemptions provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act.
(B) Beginning with the year 2007, a property taxing entity of this State including a school district may increase ad valorem property tax millage on all classes of real and personal property for general operating purposes, except owner-occupied residential property, above that levied for the previous year by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Any millage increase above this limitation requires a supermajority vote of the governing body of the entity entitled to levy property taxes defined as an affirmative vote by seventy-five percent of the total membership of the governing body of the entity. Seventy-five percent of the total membership of the governing body of the entity must be determined without rounding a fractional number into a whole number for the purpose of computing the required vote total.
If a property taxing entity does not increase millage by the maximum millage increase allowed pursuant to this subsection without a supermajority vote, the difference between the millage rate actually imposed and the maximum millage that could have been imposed for that year without a supermajority vote is deemed 'unused' millage.
In calculating the maximum annual millage increase that may be imposed without a supermajority vote, there must be added to the otherwise applicable total any unused millage from the preceding two tax years."
Miscellaneous Provisions
SECTION 1. A. Section 11-27-30 of the 1976 Code, as last amended by Act 27 of 2001, is further amended by adding an item at the end to read:
"9. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the State or other associate of any kind of the State is deemed to be the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the State."
B. Section 11-27-40 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:
"10. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the political subdivision of the State or other associate of any kind of the political subdivision of the State is deemed to be the political subdivision of the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the political subdivision of the State."
C. Section 11-27-50 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:
"8. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the school district or other associate of any kind of the school district is deemed to be the school district when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the school district."
D. The provisions of subsections A., B., and C. of this section apply with regard to all transfers made after July 1, 2006, to which these subsections apply.
SECTION 2. A. Section 12-37-670 of the 1976 Code is amended to read:
"Section 12-37-670. (A) Each owner of land on which any new structures have been erected which shall not have been appraised for taxation shall list them for taxation with the county auditor of the county in which they may be situate on or before the first day of March next after they shall become subject to taxation. No new structure shall be listed or assessed until it is completed and fit for the use for which it is intended.
(B)(1) Notwithstanding the provisions of subsection (A), a county governing body may by ordinance provide that an owner of land on which a new structure has been erected and which has not been appraised for taxation shall list the new structure for taxation with the county auditor of the county in which it is located by the first day of the next month after a certificate of occupancy is issued for the structure. A new structure must not be listed or assessed until it is completed and fit for the use for which it is intended, as evidenced by the issuance of the certificate of occupancy.
(2) Additional property tax attributable to improvements listed with the county auditor on or before June thirtieth is due for the period from July first to December thirty-first for that property year, and payable when taxes are due on the property for that property tax year. Additional property tax attributable to improvements listed with the county auditor after June thirtieth of the property tax year is due and payable when taxes are due on the property for the next property tax year.
(3) If a county governing body elects by ordinance to impose the provisions of this subsection, this election is also binding on all municipalities within the county imposing ad valorem property taxes."
B. Section 12-37-680 of the 1976 Code is repealed.
SECTION 3. Section 12-43-215 of the 1976 Code is amended to read:
"Section 12-43-215. (A) When owner-occupied residential property assessed pursuant to Section 12-43-220(c) is valued for purposes of ad valorem taxation, the value of the land must be determined on the basis that its highest and best use is for residential purposes.
(B) Each county must submit to the Department of Revenue an annual report, in a form to be determined by the department, listing the names and addresses of all residential property in the county which is classified as 'owner-occupied'."
SECTION 4. Chapter 20, Title 59 of the 1976 Code is amended by adding:
"Section 59-20-21. Beginning with the year 2007, the State Board of Education, in determining the minimum education program designed to meet students' needs, may only consider factors required by statutory law or which directly affect classroom learning, and the local maintenance of effort required of a school district must be based on these determinations."
SECTION 5. Chapter 20, Title 59 of the 1976 Code is amended by adding:
"Section 59-20-22. Notwithstanding a school district's index of taxpaying ability, the minimum state funds a district shall receive in any year is forty percent of the applicable year's base student cost."
Time Effective
SECTION 1. This act, except as otherwise provided herein and except for Parts III and IV, takes effect upon ratification of amendments to Article X of the Constitution of this State proposed at the general election of 2006 defining fair market value of real property as its fair market value when it's ownership last was transferred, increased by the value of improvements, and providing for an additional exemption from the property tax of one hundred percent of the fair market value of owner-occupied residential property. Parts III and IV of this act take effect upon approval by the Governor.
SECTION 2. Notwithstanding any other provision of law, a county governing body is authorized to conduct a referendum at the same time as the 2006 general election as to whether or not a local option sales tax presently imposed in that jurisdiction should be repealed. If the qualified electors of the county vote in favor of repealing the local option sales tax, the tax shall be repealed as of January 1, 2007. / //
Renumber sections to conform.
Amend title to conform.
Senator KNOTTS explained the amendment.
Senator ELLIOTT asked unanimous consent to make a motion to perfect the amendment by exempting hotels and motels from the two percent tax on short-term (for less than 90 days) rentals.
Senator RICHARDSON objected.
Senator KNOTTS resumed explaining the amendment.
Senator ELLIOTT asked unanimous consent to make a motion to perfect the amendment by exempting hotels and motels from the two percent tax on short-term (for less than 90 days) rentals.
Senator JACKSON objected.
Senator KNOTTS explained the amendment.
Senator KNOTTS moved that the amendment be adopted.
Senator LEATHERMAN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Anderson Drummond Elliott Ford Gregory Hayes Jackson Land Leatherman Leventis Lourie Malloy Martin Matthews McGill Mescher O'Dell Patterson Pinckney Rankin Sheheen Williams
Bryant Campsen Cleary Courson Cromer Fair Grooms Hawkins Hutto Knotts McConnell Peeler Reese Richardson Ryberg Scott Setzler Short Thomas Verdin
The amendment was laid on the table.
Senators KNOTTS and THOMAS proposed the following Amendment No. P-26 (JUD4449.045), which was tabled:
Amend the FINANCE COMMITTEE REPORT, as and if amended, by striking the report in its entirety and adding appropriately numbered PARTS and SECTIONS to read:
Property Tax Exemption, Determination of Fair Market Value, and Sales Tax Increase
SECTION 1. A. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Additional Sales, Use, and Casual Excise Tax
Section 12-36-1110. Beginning June 1, 2006, an additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter, except that this additional two percent tax does not apply to:
(1) amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients;
(2) items subject to a maximum sales and use tax pursuant to Section 12-36-2110; and
(3) unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons.
Section 12-36-1120. The revenue of the tax imposed by this article must be credited to the Homestead Exemption Fund established pursuant to Section 11-11-155.
Section 12-36-1130. The Department of Revenue may prescribe amounts that may be added to the sales price to reflect the additional tax imposed pursuant to this article."
B. Section 12-36-2120 of the 1976 Code, as last amended by Act 164 of 2005, is further amended by adding an appropriately numbered item at the end to read:
"( ) unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons, but this exemption does not apply to any local sales and use tax imposed or enacted before May thirty-first of the year in which this item takes effect that is administered by the Department of Revenue which does not contain a specific exemption with respect to food items but does apply to any local sales and use tax imposed or enacted on or after June first of the year in which this item takes effect."
C. The provisions of Section 4-10-350(F) and (G) of the 1976 Code apply mutatis mutandis with respect to the tax imposed pursuant to Article 11, Chapter 36, Title 12 of the 1976 Code as added by this section.
SECTION 2. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (1) For each fiscal year in which and after which this section takes effect, the revenue from the tax imposed pursuant to Section 12-36-1110, and an amount equal to the total of reimbursements paid pursuant to the provisions of Sections 12-37-251 and 12-37-270 in fiscal year 2005-2006 is automatically credited to a fund separate and distinct from the state general fund known as the 'Homestead Exemption Fund'. The Board of Economic Advisors shall account for the Homestead Exemption Fund revenue separately from general fund revenues, and the board shall make an annual estimate of the receipts by the Homestead Exemption Fund by February fifteenth of each year. This estimate shall be transmitted to the State Treasurer, Comptroller General, and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee. No portion of these revenues may be credited to the Education Improvement Act (EIA) Fund.
(2) There is established in the State Treasury the Homestead Exemption Fund Reserve (Reserve) as a fund separate and distinct from the Homestead Exemption Fund, the general fund of the State, and all other funds. Any revenue received from the imposition of the two percent additional sales and use tax imposed pursuant to Section 12-36-1110 for a fiscal year above what the Board of Economic Advisors estimated for that fiscal year must be transferred into the Reserve. Establishing this Reserve in the required amount is the second priority use of Homestead Exemption Fund revenues in a fiscal year. Balances in the Reserve at the end of a fiscal year remain in this Reserve. If revenues in the Homestead Exemption Fund available for reimbursements in a fiscal year are less than that amount as estimated by the Board of Economic Advisors for the fiscal year, the State Budget and Control Board must first apply so much of the Reserve as is necessary or available to offset the deficit before the balance may be paid from the state general fund. Secondly, to the extent monies are available in the Reserve after any transfers to the Homestead Exemption Fund to offset a deficit, these monies shall then be transferred by the Budget and Control Board to the state general fund to reimburse it for any distributions made to supplement reimbursements required to be made from the Homestead Exemption Fund.
(3) An unexpended balance in the Homestead Exemption Fund or Reserve Fund at the end of a fiscal year must remain in the Homestead Exemption Fund or Reserve Fund.
(4) Earnings on the Homestead Exemption Fund or Reserve Fund must be credited to the Homestead Exemption Fund or Reserve Fund.
(5) Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the Homestead Exemption Fund."
SECTION 3. A. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered new item at the end to read:
"( ) For property tax years beginning after 2006, one hundred percent of the fair market value of owner-occupied residential property eligible for and receiving the special assessment ration allowed owner-occupied residential property pursuant to Section 12-43-220(c) is exempt from all property taxes imposed for school operations."
B. Section 12-43-220 of the 1976 Code, as last amended by Act 145 of 2005, is further amended by adding a new undesignated paragraph at the end of the section to read:
"As used in this section, fair market value with reference to real property means fair market value determined in the manner provided pursuant to Section 1A, Article X of the Constitution of this State."
C. Section 12-43-210 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-43-210. (A) All property must be assessed uniformly and equitably throughout the State. The South Carolina Department of Revenue may promulgate regulations to ensure equalization which must be adhered to by all assessing officials in the State.
(B) No reassessment program may be implemented in a county unless all real property in the county, including real property classified as manufacturing property, is reassessed in the same year."
D. Section 1B of Act 406 of 2000 is amended to read:
"(B) The exemption amount of the homestead exemption allowed pursuant to Section 12-37-250 of the 1976 Code is raised from twenty to fifty thousand dollars for property tax year 2000 and thereafter, to be funded as provided herein. The amount appropriated to the Trust Fund for Tax Relief must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. For tax years after 2000, an amount sufficient to fund the exemption provided herein must be appropriated from the Tobacco Settlement Fund, before any reductions or withdrawals as may be provided by law, to the Trust Fund for Tax Relief and must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. Reserved."
E. Items (1) and (2) of Section 11-11-150(A) of the 1976 Code, as added by Act 419 of 1998, are amended to read:
"(1) Section 12-37-251 for the residential property tax exemption Reserved;
(2) Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled Reserved;"
F. Sections 12-37-251, 12-37-270, 12-43-217, 12-43-260, and 12-43-295, all of the 1976 Code, are repealed.
G. Section 12-37-223A of the 1976 Code is repealed.
SECTION 4. Assessors and other staff responsible for the assessment of property for ad valorem taxation purposes are required to receive nine hours of instruction each year in the laws applicable to assessment for ad valorem taxation, methods of valuating property, administration of the assessor's office and records of the assessor's office, and other functions related to the assessor's office. This instruction must be received from the Department of Revenue or other providers or courses approved by the Department of Revenue.
SECTION 5. (A) The sales tax exemptions in Section 12-36-2120 of the 1976 Code shall be reviewed by the General Assembly at its 2010 session and at its sessions every ten years thereafter.
(B)(1) There is established the Joint Sales Tax Exemptions Review Committee composed of seven members; three of whom must be members of the Senate appointed by the Chairman of the Senate Finance Committee, one of whom must be a member of the minority party; three of whom must be members of the House of Representatives appointed by the Chairman of the House Ways and Means Committee, one of whom must be a member of the minority party; and one of whom must be the Governor or the Governor's appointee who shall serve at the Governor's pleasure. The committee shall elect a chairman and vice chairman from among its members. All legislative members shall serve ex officio. The committee shall assist the General Assembly in performing its duties under the provisions of subsection (A) in addition to its duties required by this subsection.
(2) In carrying out its responsibilities under this act, the committee shall:
(a) make a detailed and careful study of the State's sales tax exemptions, comparing South Carolina laws to other states;
(b) publish a comparison of the State's sales tax exemptions to other states' laws;
(c) recommend changes, and recommend introduction of legislation when appropriate;
(d) submit reports and recommendations annually to the Governor and the General Assembly regarding sales tax exemptions.
(3) In carrying out its responsibilities under this act, the committee may:
(a) hold public hearings;
(b) receive testimony of any employee of the State or any other witness who may assist the committee in its duties;
(c) call for assistance in the performance of its duties from any employee or agency of the State.
(4) The committee may adopt by majority vote rules not inconsistent with this act that it considers proper with respect to matters relating to the discharge of its duties under this section. Professional and clerical services for the committee must be made available from the staffs of the General Assembly, the Budget and Control Board, and the Department of Revenue. The members of the committee may not receive mileage, per diem, subsistence, or any form of compensation for their service on the committee.
SECTION 6. A. 1. Section 4-12-30(D)(2)(a)(i) and (ii) is amended to read:
"(i) for real property, using the original income tax basis for South Carolina income tax purposes without regard to depreciation, if real property is constructed for the fee or is purchased in an arm's length transaction; otherwise, the property must be reported at its fair market value for ad valorem property tax purposes as determined by appraisal. The fair market value estimate established for the first year of the fee remains the fair market value of the real property for the life of the fee; and
(ii) for personal property, using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to any extraordinary obsolescence."
2. Section 4-12-30(E) of the 1976 Code is amended to read:
"(E) Calculations pursuant to subsection (D)(2) must be made on the basis that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)."
B. Items (1) and (2) of Section 12-44-50(A) of the 1976 Code are amended to read:
"(1) During the exemption period, the sponsor shall pay, or be responsible for payment, to the county the annual fee payment in connection with the economic development property which has been placed in service, in an amount not less than the property taxes that would be due on the economic development property if it were taxable but using:
(a) an assessment ratio of not less than six percent, or four percent for those projects qualifying under the enhanced investment definition;
(b) a millage rate that is, either:
(i) fixed for the life of the fee; or
(ii) is allowed to increase or decrease every fifth year in step with the average cumulative actual millage rate applicable to the project based upon the preceding five-year period; and
(c) a fair market value for the economic development property:
(i) if real property is constructed for the fee or is purchased in an arm's length transaction, the fair market value of real property is determined by using the original income tax basis for South Carolina income tax purposes without regard to depreciation, otherwise the property must be reported at its fair market value for ad valorem property taxes as determined by appraisal. The fair market value estimate established for the first year of the fee remains the fair market value of the real property for the life of the fee;
(ii) fair market value for personal property is determined by using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to extraordinary obsolescence; and
(d) to establish the millage rate for purposes of subsection (A)(1)(b)(i) or the first five years millage under (A)(1)(b)(ii), the millage rate must be no lower than the cumulative property tax millage rate levied by, or on behalf of, all taxing entities within which the project is located on either:
(i) June thirtieth of the year preceding the calendar year in which the fee agreement is executed; or
(ii) the millage rate in effect on June thirtieth of the calendar year in which the fee agreement is executed.
(2) The fee calculation must be made so that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)."
Distribution of Revenues and Millage Limitations
SECTION 1. (A)(1) For the year 2007, property taxing entities of this State other than school districts must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the property taxing entity.
(2) Beginning January 1, 2008, property taxing entities of the State other than school districts must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the property taxing entity and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increase of a property taxing entity other than a school district as provided in subsection (C) for any year stated as a percentage shall be multiplied by the entity's reimbursement amount for the previous year to determine the total distribution to the entity for the year. No such property taxing entity shall receive less in reimbursements beginning in 2008 than it received in 2007.
(B)(1) For the year 2007, school districts of this State must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the school district.
(2) Beginning January 1, 2008, school districts of this State must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the school district and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increases of the several school districts as provided in subsection (C) for any year shall be aggregated and the reimbursement increase a particular school district shall receive for that year shall be equal to an amount that is the school district's proportionate share of such funds based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act. No school district shall receive less in reimbursements beginning in 2008 than it received in 2007. For purposes of the reimbursement increases school districts receive under this item based on weighted pupil units determined pursuant to the Education Finance Act, an additional add-on weighting for students in poverty of 0.20 shall be included in the weightings provided in Section 59-20-40(1)(c) of the 1976 Code. The weighting for poverty shall provide additional revenues for students in kindergarten through grade twelve who qualify for Medicaid or who qualify for reduced or free lunches, or both. Revenues generated by this weighting must be used by districts and schools to provide services and research-based strategies for addressing academic or health needs of these students to ensure their future academic success, to provide summer school, reduced class size, after school programs, extended day, instructional materials, or any other research-based educational strategy to improve student academic performance. All amounts received by a district pursuant to the Education Finance Act must be expended only for classroom instruction and costs and expenses directly associated with classroom instruction.
(C) Beginning with the 2008 reimbursements to all property taxing entities of this State, these reimbursements must be increased on an annual basis by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Distribution of these reimbursement increases shall be as provided in subsections (A) and (B) of this section.
(D) The percentage of population growth in any year for any property taxing entity entitled to reimbursements from the Homestead Exemption Fund shall be based on estimates for such growth in the county wherein the property taxing entity is located as determined by the Office of Research and Statistics of the Budget and Control Board. Where the property taxing entity encompasses areas in more than one county, the population growth in that entity shall be the average of the growth in each county weighted to reflect the existing population of the property taxing entity in that county as compared to the existing population of the property taxing entity as a whole.
(E) Upon the beginning of reimbursements to property taxing entities including school districts as provided in this Part, reimbursements for a particular year must be paid to the property taxing entities by August thirty-first of that year.
(F) Notwithstanding any other provision of this section, the reimbursements provided pursuant to this section apply for real property located in redevelopment project areas pursuant to the Tax Increment Financing Law and the Tax Increment Financing Act for counties and for real property subject to a redevelopment plan adopted before the effective date of this act, the reimbursements provided pursuant to this section must not be less than dollar for dollar for the duration of the plan.
SECTION 2. (A) For purposes of determining reimbursements to property taxing entities including school districts for taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act, ad valorem property tax revenue of a property taxing entity not collected as a result of a one percent local option sales tax or local sales tax imposed in the entity pursuant to state or local law shall nevertheless be considered collected for purposes of determining reimbursements under Part II of this act.
(B) Beginning June 1, 2007, funds derived from a one percent local sales tax or local option sales tax imposed in a jurisdiction pursuant to state or local law which are used to reduce ad valorem property taxes imposed on owner-occupied residential property, must be thereafter applied on a pro-rata basis to reduce ad valorem property taxes on all other classes of property.
SECTION 3. To the extent revenues in the Homestead Exemption Fund are insufficient to pay all reimbursements required by law, the difference must be paid from the state general fund.
SECTION 4. Chapter 9, Title 4 of the 1976 Code is amended by adding:
"Section 4-9-56. (A) Beginning with the year 2007, a property taxing entity in this State including a school district may not levy any ad valorem taxation on owner-occupied residential property to which the exemption provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act apply, with the exception of any levy for general obligation bonded debt purposes. A property taxing entity including school districts which violates this provision must have its aid-to-subdivisions allocations in future general appropriations acts reduced until the violation is cured. The millage levied by a property taxing entity for the year 2006 shall be the millage used to determine the property tax revenue lost as a result of the exemptions provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act.
(B) Beginning with the year 2007, a property taxing entity of this State including a school district may increase ad valorem property tax millage on all classes of real and personal property for general operating purposes, except owner-occupied residential property, above that levied for the previous year by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Any millage increase above this limitation requires a supermajority vote of the governing body of the entity entitled to levy property taxes defined as an affirmative vote by seventy-five percent of the total membership of the governing body of the entity. Seventy-five percent of the total membership of the governing body of the entity must be determined without rounding a fractional number into a whole number for the purpose of computing the required vote total.
If a property taxing entity does not increase millage by the maximum millage increase allowed pursuant to this subsection without a supermajority vote, the difference between the millage rate actually imposed and the maximum millage that could have been imposed for that year without a supermajority vote is deemed 'unused' millage.
In calculating the maximum annual millage increase that may be imposed without a supermajority vote, there must be added to the otherwise applicable total any unused millage from the preceding two tax years."
Miscellaneous Provisions
SECTION 1. A. Section 11-27-30 of the 1976 Code, as last amended by Act 27 of 2001, is further amended by adding an item at the end to read:
"9. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the State or other associate of any kind of the State is deemed to be the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the State."
B. Section 11-27-40 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:
"10. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the political subdivision of the State or other associate of any kind of the political subdivision of the State is deemed to be the political subdivision of the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the political subdivision of the State."
C. Section 11-27-50 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:
"8. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the school district or other associate of any kind of the school district is deemed to be the school district when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the school district."
D. The provisions of subsections A., B., and C. of this section apply with regard to all transfers made after July 1, 2006, to which these subsections apply.
SECTION 2. A. Section 12-37-670 of the 1976 Code is amended to read:
"Section 12-37-670. (A) Each owner of land on which any new structures have been erected which shall not have been appraised for taxation shall list them for taxation with the county auditor of the county in which they may be situate on or before the first day of March next after they shall become subject to taxation. No new structure shall be listed or assessed until it is completed and fit for the use for which it is intended.
(B)(1) Notwithstanding the provisions of subsection (A), a county governing body may by ordinance provide that an owner of land on which a new structure has been erected and which has not been appraised for taxation shall list the new structure for taxation with the county auditor of the county in which it is located by the first day of the next month after a certificate of occupancy is issued for the structure. A new structure must not be listed or assessed until it is completed and fit for the use for which it is intended, as evidenced by the issuance of the certificate of occupancy.
(2) Additional property tax attributable to improvements listed with the county auditor on or before June thirtieth is due for the period from July first to December thirty-first for that property year, and payable when taxes are due on the property for that property tax year. Additional property tax attributable to improvements listed with the county auditor after June thirtieth of the property tax year is due and payable when taxes are due on the property for the next property tax year.
(3) If a county governing body elects by ordinance to impose the provisions of this subsection, this election is also binding on all municipalities within the county imposing ad valorem property taxes."
B. Section 12-37-680 of the 1976 Code is repealed.
SECTION 3. Section 12-43-215 of the 1976 Code is amended to read:
"Section 12-43-215. (A) When owner-occupied residential property assessed pursuant to Section 12-43-220(c) is valued for purposes of ad valorem taxation, the value of the land must be determined on the basis that its highest and best use is for residential purposes.
(B) Each county must submit to the Department of Revenue an annual report, in a form to be determined by the department, listing the names and addresses of all residential property in the county which is classified as 'owner-occupied'."
SECTION 4. Chapter 20, Title 59 of the 1976 Code is amended by adding:
"Section 59-20-21. Beginning with the year 2007, the State Board of Education, in determining the minimum education program designed to meet students' needs, may only consider factors required by statutory law or which directly affect classroom learning, and the local maintenance of effort required of a school district must be based on these determinations."
SECTION 5. Chapter 20, Title 59 of the 1976 Code is amended by adding:
"Section 59-20-22. Notwithstanding a school district's index of taxpaying ability, the minimum state funds a district shall receive in any year is forty percent of the applicable year's base student cost."
Time Effective
SECTION 1. This act, except as otherwise provided herein and except for Parts III and IV, takes effect upon ratification of amendments to Article X of the Constitution of this State proposed at the general election of 2006 defining fair market value of real property as its fair market value when it's ownership last was transferred, increased by the value of improvements, and providing for an additional exemption from the property tax of one hundred percent of the fair market value of owner-occupied residential property. Parts III and IV of this act take effect upon approval by the Governor.
SECTION 2. Notwithstanding any other provision of law, a county governing body is authorized to conduct a referendum at the same time as the 2006 general election as to whether or not a local option sales tax presently imposed in that jurisdiction should be repealed. If the qualified electors of the county vote in favor of repealing the local option sales tax, the tax shall be repealed as of January 1, 2007. / //
Renumber sections to conform.
Amend title to conform.
Senator KNOTTS explained the amendment.
Senator KNOTTS moved that the amendment be adopted.
Senator MARTIN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Anderson Drummond Elliott Ford Gregory Hayes Jackson Land Leatherman Leventis Lourie Malloy Martin Matthews McGill Mescher Patterson Pinckney Rankin Ritchie Sheheen Williams
Bryant Campsen Cleary Courson Cromer Fair Grooms Hawkins Hutto Knotts McConnell Moore Peeler Reese Richardson Ryberg Scott Setzler Short Thomas Verdin
The amendment was laid on the table.
Senators KNOTTS and THOMAS proposed the following Amendment No. P-27 (JUD4449.046), which was tabled:
Amend the FINANCE COMMITTEE REPORT, as and if amended, by striking the report in its entirety and adding appropriately numbered PARTS and SECTIONS to read:
Property Tax Exemption, Determination of Fair Market Value, and Sales Tax Increase
SECTION 1. A. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Additional Sales, Use, and Casual Excise Tax
Section 12-36-1110. Beginning June 1, 2006, an additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter, except that this additional two percent tax does not apply to:
(1) amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients;
(2) items subject to a maximum sales and use tax pursuant to Section 12-36-2110; and
(3) unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons.
Section 12-36-1120. The revenue of the tax imposed by this article must be credited to the Homestead Exemption Fund established pursuant to Section 11-11-155.
Section 12-36-1130. The Department of Revenue may prescribe amounts that may be added to the sales price to reflect the additional tax imposed pursuant to this article."
B. Section 12-36-2120 of the 1976 Code, as last amended by Act 164 of 2005, is further amended by adding an appropriately numbered item at the end to read:
"( ) unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons, but this exemption does not apply to any local sales and use tax imposed or enacted before May thirty-first of the year in which this item takes effect that is administered by the Department of Revenue which does not contain a specific exemption with respect to food items but does apply to any local sales and use tax imposed or enacted on or after June first of the year in which this item takes effect."
C. The provisions of Section 4-10-350(F) and (G) of the 1976 Code apply mutatis mutandis with respect to the tax imposed pursuant to Article 11, Chapter 36, Title 12 of the 1976 Code as added by this section.
SECTION 2. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (1) For each fiscal year in which and after which this section takes effect, the revenue from the tax imposed pursuant to Section 12-36-1110, and an amount equal to the total of reimbursements paid pursuant to the provisions of Sections 12-37-251 and 12-37-270 in fiscal year 2005-2006 is automatically credited to a fund separate and distinct from the state general fund known as the 'Homestead Exemption Fund'. The Board of Economic Advisors shall account for the Homestead Exemption Fund revenue separately from general fund revenues, and the board shall make an annual estimate of the receipts by the Homestead Exemption Fund by February fifteenth of each year. This estimate shall be transmitted to the State Treasurer, Comptroller General, and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee. No portion of these revenues may be credited to the Education Improvement Act (EIA) Fund.
(2) There is established in the State Treasury the Homestead Exemption Fund Reserve (Reserve) as a fund separate and distinct from the Homestead Exemption Fund, the general fund of the State, and all other funds. Any revenue received from the imposition of the two percent additional sales and use tax imposed pursuant to Section 12-36-1110 for a fiscal year above what the Board of Economic Advisors estimated for that fiscal year must be transferred into the Reserve. Establishing this Reserve in the required amount is the second priority use of Homestead Exemption Fund revenues in a fiscal year. Balances in the Reserve at the end of a fiscal year remain in this Reserve. If revenues in the Homestead Exemption Fund available for reimbursements in a fiscal year are less than that amount as estimated by the Board of Economic Advisors for the fiscal year, the State Budget and Control Board must first apply so much of the Reserve as is necessary or available to offset the deficit before the balance may be paid from the state general fund. Secondly, to the extent monies are available in the Reserve after any transfers to the Homestead Exemption Fund to offset a deficit, these monies shall then be transferred by the Budget and Control Board to the state general fund to reimburse it for any distributions made to supplement reimbursements required to be made from the Homestead Exemption Fund.
(3) An unexpended balance in the Homestead Exemption Fund or Reserve Fund at the end of a fiscal year must remain in the Homestead Exemption Fund or Reserve Fund.
(4) Earnings on the Homestead Exemption Fund or Reserve Fund must be credited to the Homestead Exemption Fund or Reserve Fund.
(5) Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the Homestead Exemption Fund."
SECTION 3. A. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered new item at the end to read:
"( ) For property tax years beginning after 2006, one hundred percent of the fair market value of owner-occupied residential property eligible for and receiving the special assessment ration allowed owner-occupied residential property pursuant to Section 12-43-220(c) is exempt from all property taxes imposed for school operations."
B. Section 12-43-220 of the 1976 Code, as last amended by Act 145 of 2005, is further amended by adding a new undesignated paragraph at the end of the section to read:
"As used in this section, fair market value with reference to real property means fair market value determined in the manner provided pursuant to Section 1A, Article X of the Constitution of this State."
C. Section 12-43-210 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-43-210. (A) All property must be assessed uniformly and equitably throughout the State. The South Carolina Department of Revenue may promulgate regulations to ensure equalization which must be adhered to by all assessing officials in the State.
(B) No reassessment program may be implemented in a county unless all real property in the county, including real property classified as manufacturing property, is reassessed in the same year."
D. Section 1B of Act 406 of 2000 is amended to read:
"(B) The exemption amount of the homestead exemption allowed pursuant to Section 12-37-250 of the 1976 Code is raised from twenty to fifty thousand dollars for property tax year 2000 and thereafter, to be funded as provided herein. The amount appropriated to the Trust Fund for Tax Relief must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. For tax years after 2000, an amount sufficient to fund the exemption provided herein must be appropriated from the Tobacco Settlement Fund, before any reductions or withdrawals as may be provided by law, to the Trust Fund for Tax Relief and must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. Reserved."
E. Items (1) and (2) of Section 11-11-150(A) of the 1976 Code, as added by Act 419 of 1998, are amended to read:
"(1) Section 12-37-251 for the residential property tax exemption Reserved;
(2) Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled Reserved;"
F. Sections 12-37-251, 12-37-270, 12-43-217, 12-43-260, and 12-43-295, all of the 1976 Code, are repealed.
G. Section 12-37-223A of the 1976 Code is repealed.
SECTION 4. A. (1) The first undesignated paragraph of Section 12-43-220(a) of the 1976 Code is amended to read:
"All real and personal property owned by or leased to manufacturers and utilities and used by the manufacturer or utility in the conduct of the business must be taxed on an assessment equal to ten and one-half nine percent of the fair market value of the property. Notwithstanding any other provision of law, for purposes of calculating limits on 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 tax paying ability pursuant to Section 59-20-20(3), the assessment ratio imposed pursuant to this item is deemed to be 10.5 percent of fair market value."
(2) The change in the assessment ratio of manufacturing and utility property from ten and one-half percent of fair market value to nine percent of fair market value as provided in item (1) of this subsection is made pursuant to the authorization contained in Article X, Section 2 of the Constitution of this State.
B. Title 12, Chapter 44 of the 1976 Code is amended by adding:
"Section 12-44-180. There is allowed as a credit against any fee in lieu of tax payment negotiated pursuant to this chapter, Section 4-29-67, or Chapter 12 of Title 4, an amount equal to the fee otherwise due and payable so that the amount of property taxes owed for school operations is reduced by twenty percent."
SECTION 5. Assessors and other staff responsible for the assessment of property for ad valorem taxation purposes are required to receive nine hours of instruction each year in the laws applicable to assessment for ad valorem taxation, methods of valuating property, administration of the assessor's office and records of the assessor's office, and other functions related to the assessor's office. This instruction must be received from the Department of Revenue or other providers or courses approved by the Department of Revenue.
SECTION 6. (A) The sales tax exemptions in Section 12-36-2120 of the 1976 Code shall be reviewed by the General Assembly at its 2010 session and at its sessions every ten years thereafter.
(B)(1) There is established the Joint Sales Tax Exemptions Review Committee composed of seven members; three of whom must be members of the Senate appointed by the Chairman of the Senate Finance Committee, one of whom must be a member of the minority party; three of whom must be members of the House of Representatives appointed by the Chairman of the House Ways and Means Committee, one of whom must be a member of the minority party; and one of whom must be the Governor or the Governor's appointee who shall serve at the Governor's pleasure. The committee shall elect a chairman and vice chairman from among its members. All legislative members shall serve ex officio. The committee shall assist the General Assembly in performing its duties under the provisions of subsection (A) in addition to its duties required by this subsection.
(2) In carrying out its responsibilities under this act, the committee shall:
(a) make a detailed and careful study of the State's sales tax exemptions, comparing South Carolina laws to other states;
(b) publish a comparison of the State's sales tax exemptions to other states' laws;
(c) recommend changes, and recommend introduction of legislation when appropriate;
(d) submit reports and recommendations annually to the Governor and the General Assembly regarding sales tax exemptions.
(3) In carrying out its responsibilities under this act, the committee may:
(a) hold public hearings;
(b) receive testimony of any employee of the State or any other witness who may assist the committee in its duties;
(c) call for assistance in the performance of its duties from any employee or agency of the State.
(4) The committee may adopt by majority vote rules not inconsistent with this act that it considers proper with respect to matters relating to the discharge of its duties under this section. Professional and clerical services for the committee must be made available from the staffs of the General Assembly, the Budget and Control Board, and the Department of Revenue. The members of the committee may not receive mileage, per diem, subsistence, or any form of compensation for their service on the committee.
SECTION 7. A. 1. Section 4-12-30(D)(2)(a)(i) and (ii) is amended to read:
"(i) for real property, using the original income tax basis for South Carolina income tax purposes without regard to depreciation, if real property is constructed for the fee or is purchased in an arm's length transaction; otherwise, the property must be reported at its fair market value for ad valorem property tax purposes as determined by appraisal. The fair market value estimate established for the first year of the fee remains the fair market value of the real property for the life of the fee; and
(ii) for personal property, using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to any extraordinary obsolescence."
2. Section 4-12-30(E) of the 1976 Code is amended to read:
"(E) Calculations pursuant to subsection (D)(2) must be made on the basis that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)."
B. Items (1) and (2) of Section 12-44-50(A) of the 1976 Code are amended to read:
"(1) During the exemption period, the sponsor shall pay, or be responsible for payment, to the county the annual fee payment in connection with the economic development property which has been placed in service, in an amount not less than the property taxes that would be due on the economic development property if it were taxable but using:
(a) an assessment ratio of not less than six percent, or four percent for those projects qualifying under the enhanced investment definition;
(b) a millage rate that is, either:
(i) fixed for the life of the fee; or
(ii) is allowed to increase or decrease every fifth year in step with the average cumulative actual millage rate applicable to the project based upon the preceding five-year period; and
(c) a fair market value for the economic development property:
(i) if real property is constructed for the fee or is purchased in an arm's length transaction, the fair market value of real property is determined by using the original income tax basis for South Carolina income tax purposes without regard to depreciation, otherwise the property must be reported at its fair market value for ad valorem property taxes as determined by appraisal. The fair market value estimate established for the first year of the fee remains the fair market value of the real property for the life of the fee;
(ii) fair market value for personal property is determined by using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to extraordinary obsolescence; and
(d) to establish the millage rate for purposes of subsection (A)(1)(b)(i) or the first five years millage under (A)(1)(b)(ii), the millage rate must be no lower than the cumulative property tax millage rate levied by, or on behalf of, all taxing entities within which the project is located on either:
(i) June thirtieth of the year preceding the calendar year in which the fee agreement is executed; or
(ii) the millage rate in effect on June thirtieth of the calendar year in which the fee agreement is executed.
(2) The fee calculation must be made so that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)."
Distribution of Revenues and Millage Limitations
SECTION 1. (A)(1) For the year 2007, property taxing entities of this State other than school districts must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the property taxing entity.
(2) Beginning January 1, 2008, property taxing entities of the State other than school districts must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the property taxing entity and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increase of a property taxing entity other than a school district as provided in subsection (C) for any year stated as a percentage shall be multiplied by the entity's reimbursement amount for the previous year to determine the total distribution to the entity for the year. No such property taxing entity shall receive less in reimbursements beginning in 2008 than it received in 2007.
(B)(1) For the year 2007, school districts of this State must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the school district.
(2) Beginning January 1, 2008, school districts of this State must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the school district and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increases of the several school districts as provided in subsection (C) for any year shall be aggregated and the reimbursement increase a particular school district shall receive for that year shall be equal to an amount that is the school district's proportionate share of such funds based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act. No school district shall receive less in reimbursements beginning in 2008 than it received in 2007. For purposes of the reimbursement increases school districts receive under this item based on weighted pupil units determined pursuant to the Education Finance Act, an additional add-on weighting for students in poverty of 0.20 shall be included in the weightings provided in Section 59-20-40(1)(c) of the 1976 Code. The weighting for poverty shall provide additional revenues for students in kindergarten through grade twelve who qualify for Medicaid or who qualify for reduced or free lunches, or both. Revenues generated by this weighting must be used by districts and schools to provide services and research-based strategies for addressing academic or health needs of these students to ensure their future academic success, to provide summer school, reduced class size, after school programs, extended day, instructional materials, or any other research-based educational strategy to improve student academic performance. All amounts received by a district pursuant to the Education Finance Act must be expended only for classroom instruction and costs and expenses directly associated with classroom instruction.
(C) Beginning with the 2008 reimbursements to all property taxing entities of this State, these reimbursements must be increased on an annual basis by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Distribution of these reimbursement increases shall be as provided in subsections (A) and (B) of this section.
(D) The percentage of population growth in any year for any property taxing entity entitled to reimbursements from the Homestead Exemption Fund shall be based on estimates for such growth in the county wherein the property taxing entity is located as determined by the Office of Research and Statistics of the Budget and Control Board. Where the property taxing entity encompasses areas in more than one county, the population growth in that entity shall be the average of the growth in each county weighted to reflect the existing population of the property taxing entity in that county as compared to the existing population of the property taxing entity as a whole.
(E) Upon the beginning of reimbursements to property taxing entities including school districts as provided in this Part, reimbursements for a particular year must be paid to the property taxing entities by August thirty-first of that year.
(F) Notwithstanding any other provision of this section, the reimbursements provided pursuant to this section apply for real property located in redevelopment project areas pursuant to the Tax Increment Financing Law and the Tax Increment Financing Act for counties and for real property subject to a redevelopment plan adopted before the effective date of this act, the reimbursements provided pursuant to this section must not be less than dollar for dollar for the duration of the plan.
SECTION 2. (A) For purposes of determining reimbursements to property taxing entities including school districts for taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act, ad valorem property tax revenue of a property taxing entity not collected as a result of a one percent local option sales tax or local sales tax imposed in the entity pursuant to state or local law shall nevertheless be considered collected for purposes of determining reimbursements under Part II of this act.
(B) Beginning June 1, 2007, funds derived from a one percent local sales tax or local option sales tax imposed in a jurisdiction pursuant to state or local law which are used to reduce ad valorem property taxes imposed on owner-occupied residential property, must be thereafter applied on a pro-rata basis to reduce ad valorem property taxes on all other classes of property.
SECTION 3. To the extent revenues in the Homestead Exemption Fund are insufficient to pay all reimbursements required by law, the difference must be paid from the state general fund.
SECTION 4. Chapter 9, Title 4 of the 1976 Code is amended by adding:
"Section 4-9-56. (A) Beginning with the year 2007, a property taxing entity in this State including a school district may not levy any ad valorem taxation on owner-occupied residential property to which the exemption provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act apply, with the exception of any levy for general obligation bonded debt purposes. A property taxing entity including school districts which violates this provision must have its aid-to-subdivisions allocations in future general appropriations acts reduced until the violation is cured. The millage levied by a property taxing entity for the year 2006 shall be the millage used to determine the property tax revenue lost as a result of the exemptions provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act.
(B) Beginning with the year 2007, a property taxing entity of this State including a school district may increase ad valorem property tax millage on all classes of real and personal property for general operating purposes, except owner-occupied residential property, above that levied for the previous year by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Any millage increase above this limitation requires a supermajority vote of the governing body of the entity entitled to levy property taxes defined as an affirmative vote by seventy-five percent of the total membership of the governing body of the entity. Seventy-five percent of the total membership of the governing body of the entity must be determined without rounding a fractional number into a whole number for the purpose of computing the required vote total.
If a property taxing entity does not increase millage by the maximum millage increase allowed pursuant to this subsection without a supermajority vote, the difference between the millage rate actually imposed and the maximum millage that could have been imposed for that year without a supermajority vote is deemed 'unused' millage.
In calculating the maximum annual millage increase that may be imposed without a supermajority vote, there must be added to the otherwise applicable total any unused millage from the preceding two tax years."
Miscellaneous Provisions
SECTION 1. A. Section 11-27-30 of the 1976 Code, as last amended by Act 27 of 2001, is further amended by adding an item at the end to read:
"9. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the State or other associate of any kind of the State is deemed to be the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the State."
B. Section 11-27-40 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:
"10. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the political subdivision of the State or other associate of any kind of the political subdivision of the State is deemed to be the political subdivision of the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the political subdivision of the State."
C. Section 11-27-50 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:
"8. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the school district or other associate of any kind of the school district is deemed to be the school district when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the school district."
D. The provisions of subsections A., B., and C. of this section apply with regard to all transfers made after July 1, 2006, to which these subsections apply.
SECTION 2. A. Section 12-37-670 of the 1976 Code is amended to read:
"Section 12-37-670. (A) Each owner of land on which any new structures have been erected which shall not have been appraised for taxation shall list them for taxation with the county auditor of the county in which they may be situate on or before the first day of March next after they shall become subject to taxation. No new structure shall be listed or assessed until it is completed and fit for the use for which it is intended.
(B)(1) Notwithstanding the provisions of subsection (A), a county governing body may by ordinance provide that an owner of land on which a new structure has been erected and which has not been appraised for taxation shall list the new structure for taxation with the county auditor of the county in which it is located by the first day of the next month after a certificate of occupancy is issued for the structure. A new structure must not be listed or assessed until it is completed and fit for the use for which it is intended, as evidenced by the issuance of the certificate of occupancy.
(2) Additional property tax attributable to improvements listed with the county auditor on or before June thirtieth is due for the period from July first to December thirty-first for that property year, and payable when taxes are due on the property for that property tax year. Additional property tax attributable to improvements listed with the county auditor after June thirtieth of the property tax year is due and payable when taxes are due on the property for the next property tax year.
(3) If a county governing body elects by ordinance to impose the provisions of this subsection, this election is also binding on all municipalities within the county imposing ad valorem property taxes."
B. Section 12-37-680 of the 1976 Code is repealed.
SECTION 3. Section 12-43-215 of the 1976 Code is amended to read:
"Section 12-43-215. (A) When owner-occupied residential property assessed pursuant to Section 12-43-220(c) is valued for purposes of ad valorem taxation, the value of the land must be determined on the basis that its highest and best use is for residential purposes.
(B) Each county must submit to the Department of Revenue an annual report, in a form to be determined by the department, listing the names and addresses of all residential property in the county which is classified as 'owner-occupied'."
SECTION 4. Chapter 20, Title 59 of the 1976 Code is amended by adding:
"Section 59-20-21. Beginning with the year 2007, the State Board of Education, in determining the minimum education program designed to meet students' needs, may only consider factors required by statutory law or which directly affect classroom learning, and the local maintenance of effort required of a school district must be based on these determinations."
SECTION 5. Chapter 20, Title 59 of the 1976 Code is amended by adding:
"Section 59-20-22. Notwithstanding a school district's index of taxpaying ability, the minimum state funds a district shall receive in any year is forty percent of the applicable year's base student cost."
Time Effective
SECTION 1. This act, except as otherwise provided herein and except for Parts III and IV, takes effect upon ratification of amendments to Article X of the Constitution of this State proposed at the general election of 2006 defining fair market value of real property as its fair market value when it's ownership last was transferred, increased by the value of improvements, and providing for an additional exemption from the property tax of one hundred percent of the fair market value of owner-occupied residential property. Parts III and IV of this act take effect upon approval by the Governor.
SECTION 2. Notwithstanding any other provision of law, a county governing body is authorized to conduct a referendum at the same time as the 2006 general election as to whether or not a local option sales tax presently imposed in that jurisdiction should be repealed. If the qualified electors of the county vote in favor of repealing the local option sales tax, the tax shall be repealed as of January 1, 2007. / //
Renumber sections to conform.
Amend title to conform.
Senator KNOTTS explained the amendment.
Senator LEATHERMAN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Anderson Drummond Elliott Ford Gregory Hayes Jackson Land Leatherman Leventis Lourie Malloy Martin Matthews McGill Mescher O'Dell Patterson Pinckney Rankin Sheheen Williams
Bryant Campsen Cleary Courson Cromer Fair Grooms Hawkins Hutto Knotts McConnell Moore Peeler Reese Richardson Ryberg Scott Setzler Short Thomas Verdin
The amendment was laid on the table.
(R282, S1352 (Word version)) -- Senators Knotts, Cromer, Courson and Setzler: AN ACT TO PROVIDE THAT A PUBLIC SAFETY OFFICER WITH THE LEXINGTON COUNTY HEALTH SERVICES DISTRICT MAY RECEIVE TRAINING AT THE DEPARTMENT OF PUBLIC SAFETY'S CRIMINAL JUSTICE ACADEMY DIVISION.
Senator KNOTTS asked unanimous consent to take up the veto by the Governor on S. 1352.
Senator RICHARDSON objected.
At 4:33 P.M., Senator McCONNELL assumed the Chair.
Senator GROOMS proposed the following Amendment No. P-30A (4449R034.LKG):
Amend the COMMITTEE AMENDMENT, as and if amended, by striking the amendment and inserting:
// Amend bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Additional Sales, Use, and Casual Excise Tax
Section 12-36-1110. An additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter. The revenue collected pursuant this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."
SECTION 2. Section 12-24-10 of the 1976 Code is amended to read:
"Section 12-24-10. (A) In addition to all other recording fees, a recording fee is imposed for the privilege of recording a deed in which any lands and all improvements on the land, tenements, or other realty is transferred to another person. The fee is one-dollar eighty-five cents for each five hundred dollars, or fractional part of five hundred dollars, of the realty's value as determined by Section 12-24-30.
(B) In addition to all other recording fees and in addition to the fee described in subsection (A), there is imposed a recording fee for the privilege of recording a deed in which any lands and all improvements on the land, tenements, or other realty is transferred to another person. The additional fee is one dollar eighty-five cents for each five hundred dollars, or fractional part of five hundred dollars of the realty's value as determined by Section 12-24-30. Notwithstanding another provision of this chapter to the contrary, this additional recording fee imposed in this subsection must be deposited in the School Trust Fund established by Section 11-11-155."
SECTION 3. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-130. (A) In addition to all other property taxes imposed by law, there is imposed on all taxable property for every property tax year, a property tax at the rate of sevnty-five mills. The revenue of this additional property tax must be remitted to the State Treasurer on the schedule and in the manner he directs and credited to the School Trust Fund established pursuant to Section 11-11-155. This additional property tax does not apply to residential real property described in Section 12-43-220(c).
(B) To the extent the millage imposed pursuant to subsection (A) of this section exceeds the millage imposed in a school district for school operations for fiscal year 2005-2006, there is allowed as a credit against the tax attributable to this millage an amount equal to the tax attributable to the difference in the millage rates."
SECTION 4. Article 17, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2425. In addition to the license tax on admissions imposed pursuant to Section 12-21-2420, there is an additional license tax of two percent imposed upon admissions. The additional license tax imposed by this section must be reported, paid, collected, and enforced in the same manner as the license tax imposed pursuant to Section 12-21-2420. The revenue collected pursuant to this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."
SECTION 5. Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-630. (A) In addition to the license tax imposed pursuant to Section 12-21-620(1), there is imposed on all cigarettes made of tobacco or any substitute for tobacco an additional license tax equal to 3.25 cents on each cigarette.
(B) The additional license tax imposed pursuant to subsection (A) must be reported, paid, collected, and enforced in the same manner as the license tax imposed pursuant to Section 12-21-620(1). The revenue collected pursuant to this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."
SECTION 6. Section 12-36-2110(A) of the 1976 Code, as last amended by Act 283 of 2000, is further amended to read:
"Section 12-36-2110. (A) The maximum tax imposed by this chapter is three hundred six hundred dollars for each sale made or lease executed after June 30, 1984, or lease executed after August 31, 1985 2006, of each:
(1) aircraft, including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft;
(2) motor vehicle;
(3) motorcycle;
(4) boat;
(5) trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, and horse trailers but not including house trailers or campers as defined in Section 56-3-710;
(6) recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel; or
(7) self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower.
In the case of a lease, the total tax rate required by law applies on each payment until the total tax paid equals three hundred six hundred dollars. Nothing in this section prohibits a taxpayer from paying the total tax due at the time of execution of the lease, or with any payment under the lease. To qualify for the tax limitation provided by this section, a lease must be in writing and specifically state the term of, and remain in force for, a period in excess of ninety continuous days."
SECTION 7. Section 12-37-450 of the 1976 Code is amended to read:
"Counties and municipalities School districts must be reimbursed for the revenue lost by counties and municipalities as a result of the business inventory tax exemption based on the 1987 tax year millage and 1987 tax year assessed value of inventories in the counties and municipalities. If an amount of reimbursement to a political subdivision within a county is attributable to a separate millage for debt service for any purpose, when that debt is paid, the appropriate reimbursement amount must be redistributed proportionately to the other separate millages levied by the political subdivision within the county for the 1987 tax year. There is credited annually as provided in Section 11-11-150 to the School Trust Fund for Tax Relief ,established pursuant to Section 11-11-155, whatever amount is necessary to reimburse school districts fully all for the revenue lost by counties and municipalities the required amount. The Comptroller General shall make remittances of this reimbursement to school districts as provided in Section 11-11-155 counties and municipalities in four equal payments.
Notwithstanding any other provision of law, business inventory exempted from property taxation in the manner provided in this section is considered taxable property in an amount equal to the 1987 tax year assessed valuation 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 item (3) of Section 59-20-20.
Where a portion of a special purpose district is annexed to a municipality, and its service functions in the annexed area are assumed by the municipality, the total amount remitted to the county and municipality under this section shall not exceed the total amount which would be remitted to the two entities separately. However, the assessed valuation and special purpose district tax levy for tax year 1987 with respect to the annexed portion of the special purpose district must be taken into consideration in determining the proportionate share of the total allocation due to the county and the municipality."
SECTION 8. Section 12-37-935(B) of the 1976 Code is amended to read:
"(B) Annually as provided in Section 11-11-150, there is credited to the School Trust Fund for Tax Relief ,established pursuant to Section 11-11-155, an amount sufficient to reimburse school districts for all local taxing entities the amount of revenue not collected by local taxing entities as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this section. No reimbursement is 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 and equipment used in the manufacture of tires by manufacturers who employ more than five thousand employees in this State and have over one billion dollars in capital investment in this State. Reimbursements must be paid from the fund in the manner provided in Section 11-11-155 12-37-270, mutatis mutandis."
SECTION 9. Section 11-11-150(A) of the 1976 Code 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;
(4) Section 12-37-450 for the inventory tax exemption; and
(3 5) Section 4-10-540(A) for the reimbursement provided for personal property taxes not collected on private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors."
SECTION 10. Items (11) and (14) of Section 12-36-2120 of the 1976 Code are amended to read:
"(11)[Reserved](a) toll charges for the transmission of voice or messages between telephone exchanges;
(b) charges for telegraph messages;
(c) carrier access charges and customer access line charges established by the Federal Communications department or the South Carolina Public Service department; and
(d)transactions involving automatic teller machines;
(14) [Reserved]wrapping paper, wrapping twine, paper bags, and containers, used incident to the sale and delivery of tangible personal property;"
SECTION 11. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (A) For each fiscal year, the revenue from the tax imposed pursuant to Section 12-36-1110, the revenue derived from the additional deed transfer fee imposed pursuant to Section 12-24-10(B), the revenue of the property tax imposed pursuant to Section 12-37-130, the additional tax on admissions imposed pursuant to Section 12-21-2425, the additional tax on cigarettes imposed pursuant to Section 12-21-630, the amount credited pursuant to Sections 12-37-450 and 12-37-935(B), and all estimated additional sales, use, and casual excise tax revenue collected as a result of tax exemptions and tax caps deleted, revised, or repealed effective July 1, 2006, as determined by the Board of Economic Advisors, are automatically credited to a fund separate and distinct from the state general fund known as the 'School Tax Millage Exemption Trust Fund' (the School Trust Fund). Notwithstanding the provisions of Section 59-21-1010(A), the amount that would be credited to the general fund must be credited to the School Trust Fund. Notwithstanding the provisions of Section 59-21-1010(B), the amount that would be credited to the Education Improvement Act Fund must be credited to the School Trust Fund. The Board of Economic Advisors shall account for the School Trust Fund revenue separately from general fund revenues in reports to the Governor and the General Assembly. No portion of these revenues are credited to the Education Improvement Act (EIA) Fund.
(B) An unexpended balance in the School Trust Fund at the end of a fiscal year must remain in the School Trust Fund.
(C) Earnings on the School Trust Fund must be credited to the School Trust Fund.
(D) Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the School Trust Fund.
(E) The School Trust Fund must only be used for the purposes provided in Sections 12-6-3338 and 12-37-253 and to provide funding in the annual general appropriations bill for the State Department of Education, the Wil Lou Gray Opportunity School, the South Carolina School for the Deaf and Blind, John de la Howe School, to fund debt service for capital improvement projects at these institutions, to fund schools operated by the Department of Juvenile Justice, and to fund debt service on School Bonds."
SECTION 12. Section 12-36-910 of the 1976 Code is amended by adding a new subsection at the end to read:
"(D) Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, the sales and use tax on the gross proceeds of sales or sales price of unprepared food, which lawfully can be purchased with United States Department of Agriculture food coupons, is five percent."
SECTION 13. Chapter 37 of Title 12 of the 1976 Code is amended by adding:
"Section 12-37-253. (A) The fair market value of all property classified pursuant to Section 12-43-220 is exempt from taxes imposed for school operating purposes. In the case of real property classified pursuant to Section 12-43-220(c), any remaining fair market value, after the exemption allowed pursuant to Section 12-37-250 and Section 12-37-251 is applied, otherwise subject to tax is exempt from all taxes imposed for school operating purposes. This section does not exempt the fair market value of property classified pursuant to Section 12-43-220 for taxes imposed for:
(1) bonded indebtedness for capital construction;
(2) to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction; and
(3) county and municipal operations.
(B) School districts must be reimbursed monthly from revenues credited to the School Trust Fund established pursuant to Section 11-11-155 for a fiscal year for revenue not received because of the exemptions allowed by this section. Each school district's allocation must be determined by the following formula:
(1) The calculated 135 day weighted pupil units (WPU) of the latest completed fiscal year inflated by a school district's three-year average WPU growth adjusted for the school districts poverty factor. The Budget and Control Board Office of Research and Statistics is responsible for calculating each school district's annual weighted pupil units based upon the following weights:
(a) Kindergarten 1.30
(b) Primary 1.24
(c) Elementary 1.00
(d) High school 1.25
(e) Trainable Mentally Handicapped 2.04
(f) Speech Handicapped 1.90
(g) Homebound 2.10
(h) Emotionally Handicapped 2.04
(i) Educable Mentally Handicapped 1.74
(j) Learning Disabilities 1.74
(k) Hearing Handicapped 2.57
(l) Visually Handicapped 2.57
(m) Orthopedically Handicapped 2.04
(n) Vocational (Grades 9-12) 1.29
(o) Autism 2.57
(p) Qualify for Free or Reduced Lunch or Medicaid 1.30
The Budget and Control Board Office of Research and Statistics must annually determine each district's total poverty factor weighting by calculating the school district's total number of students who are eligible for free or reduced lunch or Medicaid and multiplying by a weighting factor of 1.3.
(2) The school district's total weighted pupil units must then be multiplied by the estimated annual weighted funding amount determined pursuant to item (3).
(3) The annual weighted pupil funding amount is calculated by dividing the total amount of School Trust Fund revenue for the upcoming fiscal year, as estimated by the Board of Economic Advisors, by the statewide total of weighted pupil units for the upcoming fiscal year. In implementation years one through eight of this section, the annual weighted pupil funding must be calculated after deducting the districts' hold harmless amounts determined pursuant to item (4) from Board of Economic Advisors estimate of available School Trust Fund Revenue.
(4) In the first year of implementation of this section, a hold harmless amount must be computed for and distributed to each school district to prevent each school district from receiving less School Trust Fund revenue than the actual amount of revenue received by the school district in the base year. For purposes of this section, the base year is fiscal year 2005-2006, or the latest fiscal year for which total school district revenue data is available prior to the implementation of this section. Each school district's additional hold harmless amount established in year one, must be funded on a declining scale according to the following schedule:
(a) Year one one hundred percent
(b) Year two ninety-five percent
(c) Year three ninety percent
(d) Year four eighty percent
(e) Year five seventy percent
(f) Year six fifty-five percent
(g) Year seven forty percent
(h) Year eight twenty percent
(i) Year nine zero percent
(5) The amount of School Trust Fund revenue distributed to a school district must be reduced by the amount of revenue received by the district for school operations as a result of a fee in lieu of agreement, pursuant to Chapter 12 of Title 4, in effect at the time of implementation of this section.
(6) All School Trust Fund Revenue collected in a fiscal year above the Board of Economic Advisors' estimate must be distributed equally to each school district based upon each district's proportion of weighted pupil units compared to the statewide total of weighted pupil units.
(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).
(D) The exemption provided by this section applies for property taxes imposed by any property taxing entity if the revenues of taxes imposed by the entity are used directly or indirectly for school operations."
SECTION 14. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3338. (A) As used in this section:
(1) 'Adjusted gross income' means adjusted gross income for federal income tax purposes reported by a property taxpayer in a taxable year to which must be added such income of other individuals in the household if not included in the federal adjusted gross income of the property taxpayer.
(2) 'Household' means the taxpayer's spouse and any dependent over the age of eighteen residing with the taxpayer in the residence.
(3) 'Residence' means residential real property classified for property tax purposes pursuant to Section 12-43-220(c).
(B) There is allowed as a credit against the tax imposed pursuant to this chapter on a resident individual taxpayer an amount equal to the property tax paid for city and county operations and bonded indebtedness imposed by a city and county paid during the taxable year by the taxpayer on the taxpayer's residence. This credit is limited to taxpayers with an adjusted gross income of less than $150,000. If the credit allowed pursuant to this subsection exceeds the state individual income tax liability of the taxpayer claiming the credit, the difference must be refunded to the taxpayer.
(C) A copy of the treasurer's receipt for the property tax paid must accompany the claim for the credit allowed pursuant to this section, together with other information the department may require for the proper administration of this credit."
SECTION 15. (A) This act takes effect January 1, 2007. For purposes of the tax exemption allowed and property tax imposed pursuant to Sections 12-37-253 and 12-37-130 of the 1976 Code as added by this act, apply for property tax years beginning after 2006 and motor vehicle tax years beginning after June 30, 2007. The income tax credit provided by Sections 12-6-3337 and 12-3338 applies beginning with tax year 2006.
(B) After the effective date of this act, a county may rescind any local option sales tax imposed in the county pursuant to the procedures provided in Chapter 10 of Title 4. / //
Renumber sections to conform.
Amend title to conform.
Senator GROOMS explained the amendment.
With Senator GROOMS retaining the floor, Senator MARTIN asked unanimous consent to make a motion that, when the Senate adjourns today, it stand adjourned to meet tomorrow at 10:00 A.M.
There was no objection and the motion was adopted.
Senator GROOMS explained the amendment.
With Senator GROOMS retaining the floor, Senator McGILL asked unanimous consent to make a motion that the Senate stand adjourned.
Senator RICHARDSON objected.
Senator McGILL moved that the Senate stand adjourned.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Anderson Bryant Drummond Elliott Fair Ford Grooms Hutto Jackson Land Leventis Malloy Martin Matthews McGill O'Dell Patterson Rankin Reese Scott Sheheen Short Verdin Williams
Alexander Campsen Cleary Courson Cromer Hawkins Hayes Knotts Lourie McConnell Mescher Moore Peeler * Pinckney Richardson Ritchie Ryberg Setzler Thomas
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
Debate was interrupted by adjournment.
I voted against adjournment because we were on the verge of coming out with a version of property tax reform that might work. Waiting until Thursday will endanger that momentum for reform.
Having received a favorable report from the Edgefield County Delegation, the following appointments were confirmed in open session:
Reappointment, Edgefield County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010
Hon. Brenda B. Carpenter, 225 McDaniel Dr., Trenton, S.C. 29847
Reappointment, Edgefield County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010
Hon. Davis R. Parkman, 507 Butler Street, Johnston, S.C. 29832
On motion of Senator MARTIN, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. Gary Hiott, Jr. of Pickens, S.C., beloved father of Representative David R. Hiott.
At 5:39 P.M., on motion of Senator McGILL, the Senate adjourned to meet tomorrow at 10:00 A.M.
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