Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 11:00 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 the Chaplain as follows:
Beloved, we join today in the National Day of Prayer. Hear the record of II Chronicles 7:14 at the dedication of Solomon's Temple:
"If my people, who are called by my name, will humble themselves, and pray and seek my face and turn from their wicked ways, then I will hear from heaven, and will forgive their sin and heal their land... "
Let us pray.
Father, we join with the multitude who believe in prayer in the words of an ancient prayer:
"Lord of life and love, Help us to worship Thee in the holiness of beauty, that some beauty of holiness may appear in us."
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:
Initial Appointment, Dillon County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
Tessa R. Jackson, 332 Dixie Court, P. O. Box 525, Dillon, S.C. 29536 VICE Robert Abson
Reappointment, Myrtle Beach Air Force Base Redevelopment Authority, with term to commence June 30, 2006, and to expire June 30, 2010
Delegation:
Charles A. Stuart, 7878 Old Reaves Ferry Road, Conway, S.C. 29526
Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Rebecca McDuffie Brown, 8 Crossland Lane, Columbia, S.C. 29223
Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Elizabeth Cromer Epps, 2119 Dalloz Road, Columbia, S.C. 29204
Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Deanne C. Jolly, 7421 Parkview Drive, Columbia, S.C. 29223
Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Lillian A. McBride, 545 Trader Mill Road, Columbia, S.C. 29223
Initial Appointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Lenora D. McCarty, 4405 Ryan Avenue, Columbia, S.C. 29203 VICE Gloria Wilson
The Honorable André Bauer
President of the Senate
State House, 1st Floor, East Wing
Columbia, South Carolina 29202
Dear Mr. President and Members of the Senate:
I am hereby vetoing and returning without my approval S. 1352, R-282.
(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.
This Bill is special legislation that would allow the security officers of the health service district in Lexington County to attend the state's Criminal Justice Academy, while not affording health service districts in other counties the same opportunity. The state constitution clearly prohibits the enactment of special legislation where a "general law can be made applicable." S.C. Const. Art. III, Section 34 (IX). Here a general statute could have been enacted that makes training at the academy available for all health service districts throughout the State.
The Lexington County Health Services District was formed by an ordinance of the Lexington County Council pursuant to S.C. Code Section 44-7-2010. It is governed by a board of directors, the members of which are appointed by the county council. The district encompasses only Lexington County and it is, by statute, an agency of the county. Because there are similar county or regional health service districts in other parts of the State, this Bill is in violation of Article VIII, Section 7 of the Constitution of the State of South Carolina, which provides that "[n]o laws for a specific county shall be enacted." Acts similar to S. 1352, R-282, have been struck down by the South Carolina Supreme Court as unconstitutional special legislation.
For these reasons, I am vetoing and returning S. 1352 to you without my signature.
Sincerely,
/s/ Mark Sanford
(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.
On motion of Senator KNOTTS, with unanimous consent, the veto of the Governor was taken up for immediate consideration.
Senator KNOTTS moved that the veto of the Governor be overridden.
Senator FAIR made a Parliamentary Inquiry as to whether the legislation was local or statewide in subject matter.
Senator RICHARDSON spoke on the Inquiry.
The PRESIDENT stated that the legislation was local in nature.
Senator RITCHIE made a Parliamentary Inquiry as to whether the affected delegation or the entire membership of the Senate was required to vote on local legislation.
The PRESIDENT stated that the Rules provide that 2/3 of those members present and voting are required to override the veto but that any member wishing to vote on the matter may do so.
Senator RICHARDSON spoke on the motion to override the Governor's veto.
Senator KNOTTS spoke on the motion to override the Governor's veto.
The question was put, "Shall the Act become law, the veto of the Governor to the contrary notwithstanding?"
The "ayes" and "nays" were demanded and taken, resulting as follows:
Anderson Courson * Cromer Ford Knotts Setzler *
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
The necessary two-thirds vote having been received, the veto of the Governor was overridden, and a message was sent to the House accordingly.
Senator MOORE introduced Dr. Ty Carter of Aiken, S.C., Doctor of the Day.
At 12:40 P.M., Senator MOORE requested a leave of absence beginning at 3:00 P.M. and lasting until Monday.
At 12:45 P.M., Senator CROMER requested a leave of absence beginning at 2:00 P.M. and lasting until Monday at 2:00 P.M.
At 3:35 P.M., Senator DRUMMOND requested a leave of absence until 2:00 A.M. in the morning.
At 3:55 P.M., Senator PATTERSON requested a leave of absence beginning at 9:00 P.M. this evening.
At 5:20 P.M., Senator SCOTT requested a leave of absence for the balance of the day.
H. 4570 (Word version) -- Rep. Hayes: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME HARDY STREET IN DILLON AS "LILIA MCRAE ROAD" AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS STREET THAT CONTAIN THE WORDS "LILIA MCRAE ROAD".
Senator RYBERG asked unanimous consent to make a motion to recall the Resolution from the Committee on Transportation.
There was no objection.
The Resolution was recalled from the committee and ordered placed on the Calendar for consideration tomorrow.
H. 5038 (Word version) -- Reps. Thompson and Cooper: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF SOUTH CAROLINA HIGHWAY 20 IN ANDERSON COUNTY FROM ITS INTERSECTION WITH S 04-54 TO ITS INTERSECTION WITH THE UNITED STATES HIGHWAY 29/SOUTH CAROLINA HIGHWAY 20 CONNECTOR "TROOPER RANDALL LAMAR HESTER MEMORIAL HIGHWAY", AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS PORTION OF HIGHWAY THAT CONTAIN THE WORDS "TROOPER RANDALL LAMAR HESTER MEMORIAL HIGHWAY".
Senator RYBERG asked unanimous consent to make a motion to recall the Resolution from the Committee on Transportation.
There was no objection.
The Resolution was recalled from the committee and ordered placed on the Calendar for consideration tomorrow.
The following were introduced:
S. 1391 (Word version) -- Senator Pinckney: A BILL TO AMEND SECTION 59-150-370, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HOPE SCHOLARSHIPS, SO AS TO PROVIDE THAT THE SCHOLARSHIP BE AUTOMATICALLY FUNDED FROM THE GENERAL FUND TO THE EXTENT REQUIRED TO PROVIDE THE SCHOLARSHIP TO ALL ELIGIBLE RECIPIENTS.
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Read the first time and referred to the Committee on Finance.
S. 1392 (Word version) -- Senator Pinckney: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE II OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE RIGHT OF SUFFRAGE, BY ADDING SECTION 12 SO AS TO AUTHORIZE A PROCEDURE BY WHICH A CANDIDATE FOR ELECTIVE OFFICE MAY FINANCE HIS CAMPAIGN WITH PUBLIC FUNDS AS THE GENERAL ASSEMBLY MAY DETERMINE.
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Read the first time and referred to the Committee on Judiciary.
S. 1393 (Word version) -- Senator Pinckney: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 14 TO TITLE 8 SO AS TO ENACT THE "SOUTH CAROLINA CLEAN ELECTIONS ACT", TO PROVIDE A PROCEDURE BY WHICH CERTAIN CANDIDATES FOR OFFICE WHO AGREE TO LIMITATIONS ON CONTRIBUTIONS TO RECEIVE A PREDETERMINED AMOUNT OF PUBLIC FUNDS FOR CAMPAIGNS AND TO REQUIRE ELECTRONIC DISCLOSURES FOR ALL CAMPAIGN CONTRIBUTIONS TO CANDIDATES AND POLITICAL COMMITTEES.
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Read the first time and referred to the Committee on Judiciary.
S. 1394 (Word version) -- Senator Cleary: A SENATE RESOLUTION TO CONGRATULATE THE LOWCOUNTRY DAY SCHOOL BOYS SOCCER TEAM OF GEORGETOWN COUNTY ON ITS IMPRESSIVE WIN OF THE 2005 SOUTH CAROLINA INDEPENDENT SCHOOLS ASSOCIATION CLASS A STATE CHAMPIONSHIP TITLE AND TO HONOR THE PLAYERS AND THEIR COACHES, GARY GATES AND DANNY BELL, ON AN EXCEPTIONAL SEASON.
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The Senate Resolution was adopted.
S. 1395 (Word version) -- Senators Campsen, Cleary, Ford, Grooms, McConnell, Pinckney and Scott: A CONCURRENT RESOLUTION TO CONGRATULATE CHARLESTON COUNTY'S ACADEMIC MAGNET HIGH SCHOOL ON BEING NAMED THE TENTH BEST HIGH SCHOOL BY NEWSWEEK MAGAZINE ON ITS 2006 LIST OF THE TOP ONE THOUSAND BEST HIGH SCHOOLS IN THE COUNTRY AND TO HONOR THE FACULTY AND STUDENTS FOR THEIR HARD WORK AND DEDICATION IN ACHIEVING ACADEMIC EXCELLENCE.
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The Concurrent Resolution was adopted, ordered sent to the House.
S. 1396 (Word version) -- Senator Williams: A SENATE RESOLUTION CONGRATULATING MARTIN LEGRAND O'NEAL OF MARION, SOUTH CAROLINA, FOR ACHIEVING THE ELITE RANK OF EAGLE SCOUT WITH THE BOY SCOUTS OF AMERICA AND WISHING HIM MUCH SUCCESS IN ALL OF HIS FUTURE ENDEAVORS.
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The Senate Resolution was adopted.
S. 1397 (Word version) -- Senator Peeler: A SENATE RESOLUTION CONGRATULATING THE GAFFNEY HIGH SCHOOL INDIANS VARSITY FOOTBALL TEAM ON ITS IMPRESSIVE BIG SIXTEEN STATE CHAMPIONSHIP TITLE, AND TO HONOR THE PLAYERS AND COACHES ON ANOTHER EXTRAORDINARY SEASON.
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The Senate Resolution was adopted.
S. 1398 (Word version) -- Senator Peeler: A SENATE RESOLUTION LAUDING THE STUDENTS, PARENTS, FACULTY, STAFF, AND ADMINISTRATORS OF GAFFNEY HIGH SCHOOL ON RECEIVING THE PRESTIGIOUS 2006 PALMETTO'S FINEST AWARD AND WISHING THEM MUCH CONTINUED SUCCESS IN THEIR ACADEMIC VENTURES.
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The Senate Resolution was adopted.
S. 1399 (Word version) -- Senator Ford: A SENATE RESOLUTION TO RECOGNIZE AND HONOR MRS. LUCILLE GILLIARD OF BERKELEY COUNTY FOR HER OUTSTANDING CONTRIBUTIONS TO HER FAMILY AND COMMUNITY AND TO WISH HER THE VERY BEST UPON HER NINETY-SECOND BIRTHDAY.
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The Senate Resolution was adopted.
S. 1400 (Word version) -- Senator Verdin: A SENATE RESOLUTION TO RECOGNIZE AND COMMEND DR. CHARLES GAINES, ONE OF SOUTH CAROLINA'S MOST RESPECTED MUSIC TEACHERS AND DIRECTORS, FOR A LIFETIME OF MUSICAL ACCOMPLISHMENTS, FOR EDUCATING AND NURTURING SO MANY YOUNG STUDENTS, AND FOR BRINGING JOY TO AUDIENCES THROUGHOUT OUR STATE AND ABROAD.
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The Senate Resolution was adopted.
S. 1401 (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.
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The Concurrent Resolution was adopted, ordered sent to the House.
S. 1402 (Word version) -- Senator Short: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE INTERCHANGE LOCATED AT EXIT NUMBER 55 ALONG INTERSTATE HIGHWAY 77 IN CHESTER COUNTY THE "SOLICITOR JOHN R. JUSTICE INTERCHANGE" AND ERECT APPROPRIATE MARKERS OR SIGNS AT THIS INTERCHANGE THAT CONTAIN THE WORDS "SOLICITOR JOHN R. JUSTICE INTERCHANGE".
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The Concurrent Resolution was adopted, ordered sent to the House.
S. 1403 (Word version) -- Senator Jackson: A SENATE RESOLUTION TO AUTHORIZE THE COMMISSIONING OF A PORTRAIT TO BE PLACED IN THE SENATE CHAMBER OF THE HONORABLE JOHN WESLEY MATTHEWS, JR., OF BOWMAN IN ORANGEBURG COUNTY, SELFLESS AND DEDICATED SENATOR FROM THE THIRTY-NINTH SENATORIAL DISTRICT, A DISTINGUISHED STATESMAN DESERVING PROPER RECOGNITION BY THE SENATE AND THE STATE OF SOUTH CAROLINA.
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The Senate Resolution was introduced and referred to the Committee on Operations and Management.
H. 4834 (Word version) -- Reps. Sinclair, Harrison, J. E. Smith, Norman, Talley, Edge, Ceips, McCraw, Rivers and Ballentine: A BILL TO AMEND SECTION 30-4-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RIGHT TO INSPECT OR COPY PUBLIC RECORDS UNDER THE FREEDOM OF INFORMATION ACT AND THE FEES FOR COPYING THOSE RECORDS, SO AS TO PROVIDE THAT THE CHARGE MADE BY A PUBLIC BODY FOR COPIES OF PUBLIC RECORDS MAY NOT EXCEED CERTAIN SPECIFIED AMOUNTS.
Read the first time and referred to the Committee on Judiciary.
H. 5065 (Word version) -- Rep. Hayes: A JOINT RESOLUTION TO PROVIDE THAT THE TAXES WHICH WERE IMPOSED IN DILLON COUNTY FOR SCHOOL PURPOSES FOR FISCAL YEAR 2005-2006 ARE REIMPOSED FOR FISCAL YEAR 2006-2007.
Read the first time and ordered placed on the Local and Uncontested Calendar.
On motion of Senator ELLIOTT, with unanimous consent, H. 5065 was ordered to receive a second and third reading on the next two consecutive legislative days.
H. 5097 (Word version) -- Reps. Herbkersman, Cobb-Hunter, Merrill, Harrell, Bingham, Rivers, Bowers, Chalk, Hodges, Witherspoon, Hardwick, Harrison, Haley, McLeod, Bales, Brady, Ceips, Clark, Clemmons, Clyburn, Emory, Frye, Funderburk, Hosey, Huggins, Jefferson, J. M. Neal, Neilson, E. H. Pitts and Umphlett: A CONCURRENT RESOLUTION TO HONOR AND PAY TRIBUTE TO COACH JIM CARLEN OF BEAUFORT COUNTY FOR HIS OUTSTANDING CAREER AS A COLLEGE FOOTBALL COACH AND HIS SERVICE AS THE ATHLETIC DIRECTOR AND HEAD FOOTBALL COACH AT THE UNIVERSITY OF SOUTH CAROLINA.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5098 (Word version) -- Rep. Cotty: A CONCURRENT RESOLUTION TO CONGRATULATE THE COMMUNITY ROUNDTABLE OF IRMO, DUTCH FORK, AND CHAPIN FOR BEING NAMED "COALITION OF THE YEAR" BY THE COMMUNITY ANTI-DRUG COALITIONS OF AMERICA AND TO EXPRESS APPRECIATION FOR ALL THE COMMUNITY ROUNDTABLE DOES TO GUIDE AND ASSIST YOUNG SOUTH CAROLINIANS IN MAKING WISE PERSONAL CHOICES AND IN BECOMING RESPONSIBLE CITIZENS.
The Concurrent Resolution was adopted, ordered returned to the House.
Senator McCONNELL from the Committee on Judiciary polled out S. 1261 favorable:
S. 1261 (Word version) -- Senators Verdin, Knotts, Mescher, Alexander, Grooms, Bryant, Peeler, Campsen, Leatherman and McConnell: A BILL TO AMEND SECTION 23-31-210, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF CONCEALABLE WEAPONS PERMITS, SO AS TO DEFINE "QUALIFIED NON-RESIDENT"; AND TO AMEND SECTION 23-31-215, RELATING TO THE ISSUANCE OF PERMITS OF CONCEALABLE WEAPONS PERMITS, SO AS TO PROVIDE THAT SLED MUST ISSUE A PERMIT TO CARRY A CONCEALABLE WEAPON TO A RESIDENT OR QUALIFIED NON-RESIDENT UPON PROPER APPLICATION.
AYES
McConnell Moore Ford Gregory Jackson Martin Mescher Rankin Elliott Hutto Hawkins Ritchie Knotts Malloy Cromer Sheheen Bryant Campsen Cleary Lourie Scott Williams
Anderson
Ordered for consideration tomorrow.
Senator ALEXANDER from the Committee on Invitations polled out S. 1385 favorable:
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 REOGNIZED 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.
AYES
Alexander Patterson McGill Knotts O'Dell Elliott Ford Grooms Campsen
Reese Verdin
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 REOGNIZED 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.
Senator ELLIOTT asked unanimous consent to take the Resolution up for immediate consideration.
There was no objection.
Senator ELLIOTT asked unanimous consent to adopt the Resolution and order the Resolution sent to the House.
There was no objection.
The Resolution was adopted and sent to the House.
Senator PEELER from the Committee on Medical Affairs polled out H. 3968 favorable:
H. 3968 (Word version) -- Reps. Govan, Clyburn, Rutherford, Hosey, Moody-Lawrence, Lee, Clark, Allen, Breeland, J. Brown, R. Brown, Davenport, Jefferson, Littlejohn, Mack, J.H. Neal, Rice and Scott: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-1-285 SO AS TO ENACT THE HEALTHY SOUTH CAROLINIANS 2010 ACT AND TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL SHALL DEVELOP AND PROMOTE HEALTHY SOUTH CAROLINIANS 2010 GOALS AND OBJECTIVES, USING THE FEDERAL HEALTHY PEOPLE 2010 AS A MODEL; TO PROVIDE THAT THE DEPARTMENT SHALL REPORT ANNUALLY TO THE GENERAL ASSEMBLY ON THE STATUS OF DISPARITIES IN HEALTH AMONG MINORITIES AND NONMINORITIES; TO PROVIDE THAT THE DEPARTMENT SHALL WORK WITH MINORITY PHYSICIAN NETWORKS TO DEVELOP PROGRAMS TO EDUCATE HEALTH CARE PROFESSIONALS ABOUT THE IMPORTANCE OF CULTURE IN HEALTH STATUS; TO PROVIDE THAT THE DEPARTMENT SHALL WORK WITH HEALTH ORGANIZATIONS TO INCREASE THE PROPORTION OF HEALTH CARE PROFESSIONALS FROM MINORITY BACKGROUNDS; AND TO PROVIDE THAT THE DEPARTMENT SHALL PROMOTE RESEARCH ON METHODS TO REDUCE DISPARITIES IN HEALTH CARE; AND TO ADD SECTION 44-6-225 SO AS TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SHALL CONTRACT WITH MINORITY PHYSICIAN NETWORKS TO PROVIDE COST-EFFECTIVE MEDICAID SERVICES; AND TO PROVIDE THAT THE DEPARTMENT SHALL WORK TO EXPAND MINORITY PHYSICIAN NETWORKS IN EACH HEALTH DISTRICT.
AYES
Peeler Moore Courson Thomas Hayes Jackson Short Fair Hutto Anderson Pinckney Ritchie Malloy Verdin Cleary Scott
J. Verne Smith
Ordered for consideration tomorrow.
Senator McCONNELL from the Committee on Judiciary polled out H. 3977 favorable:
H. 3977 (Word version) -- Reps. Thompson, Simrill, Sandifer, Cobb-Hunter, Wilkins, Leach, Hosey, Altman, Emory, Hamilton, Harrison, Lucas, Martin, McGee, Merrill, J.M. Neal, Ott, Perry, M.A. Pitts, Scarborough, G.R. Smith, Taylor, Townsend, White, Whitmire, Mitchell, Coates, McLeod, Umphlett, Mahaffey, Battle, Ballentine, Clark and Clemmons: A BILL TO AMEND TITLE 23, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LAW ENFORCEMENT AND PUBLIC SAFETY BY ADDING CHAPTER 23, SO AS TO ESTABLISH THE LAW ENFORCEMENT TRAINING COUNCIL, TO ESTABLISH A PROGRAM OF TRAINING FOR LAW ENFORCEMENT OFFICERS AND OTHER PERSONS EMPLOYED IN THE CRIMINAL JUSTICE SYSTEM, AND TO PROVIDE THAT THE COUNCIL SHALL OVERSEE THE ACTIVITIES OF THE SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY; TO AMEND SECTION 6-11-340, RELATING TO PROTECTION OF SPECIAL PURPOSE DISTRICTS, SO AS TO SUBSTITUTE "CRIMINAL JUSTICE ACADEMY" FOR "CRIMINAL JUSTICE ACADEMY DIVISION OF THE DEPARTMENT OF PUBLIC SAFETY"; TO AMEND SECTION 23-28-30, AS AMENDED, RELATING TO TRAINING COURSES FOR RESERVE OFFICERS, SO AS TO SUBSTITUTE "LAW ENFORCEMENT TRAINING COUNCIL" FOR "SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY DIVISION OF THE DEPARTMENT OF PUBLIC SAFETY"; TO AMEND SECTION 23-28-40, AS AMENDED, RELATING TO TRAINING PROVIDED FOR RESERVE OFFICERS, SO AS TO SUBSTITUTE "LAW ENFORCEMENT TRAINING COUNCIL" FOR "SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY DIVISION OF THE DEPARTMENT OF PUBLIC SAFETY" AND "TRAINING COUNCIL" FOR "TRAINING ADVISORY COUNCIL"; TO AMEND SECTION 23-47-20, AS AMENDED, RELATING TO 911 SYSTEM REQUIREMENTS, SO AS TO SUBSTITUTE "LAW ENFORCEMENT TRAINING COUNCIL (CRIMINAL JUSTICE ACADEMY)" FOR "CRIMINAL JUSTICE ACADEMY DIVISION OF THE DEPARTMENT OF PUBLIC SAFETY" AND "LAW ENFORCEMENT TRAINING COUNCIL" FOR "DEPARTMENT OF PUBLIC SAFETY"; AND TO AMEND SECTION 40-18-30, AS AMENDED, RELATING TO POWERS AND DUTIES OF THE SOUTH CAROLINA LAW ENFORCEMENT DIVISION, SO AS TO SUBSTITUTE "LAW ENFORCEMENT TRAINING COUNCIL" FOR "SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY DIVISION OF THE DEPARTMENT OF PUBLIC SAFETY" AND TO REPEAL ARTICLE 9, CHAPTER 6, TITLE 23, RELATING TO THE DEPARTMENT OF PUBLIC SAFETY'S DIVISION OF TRAINING AND CONTINUING EDUCATION.
AYES
McConnell Moore Ford Martin Mescher Rankin Elliott Hutto Anderson Hawkins Knotts Malloy Cromer Bryant Cleary Lourie Scott Williams
Gregory Campsen
Jackson Ritchie Sheheen
Ordered for consideration tomorrow.
Senator MESCHER from the General Committee submitted a favorable report on:
H. 4938 (Word version) -- Reps. Cooper, Walker, Harrell, Cato, Townsend, White, Coates and J.E. Smith: A BILL TO AMEND SECTION 25-3-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF THE SOUTH CAROLINA STATE GUARD, SO AS TO AUTHORIZE THE ADJUTANT GENERAL TO ESTABLISH AN EMERGENCY AIR WING WITHIN THE STATE GUARD AND PROVIDE FOR THE ORGANIZATION AND DUTIES OF THE EMERGENCY AIR WING AND FOR THE LIABILITY OF AIRPLANES USED BY VOLUNTEER PARTICIPANTS IN THE EMERGENCY AIR WING; TO AMEND SECTION 15-78-60, AS AMENDED, RELATING TO EXCEPTIONS TO LIABILITY UNDER THE TORT CLAIMS ACT, SO AS TO PROVIDE THAT THE USE OF ANY VEHICLE OR AIRPLANE OPERATED FOR TRAINING OR DUTY BY THE EMERGENCY AIR WING OF THE STATE GUARD SHALL CONVEY LIABILITY UPON THE SOUTH CAROLINA NATIONAL GUARD, SOUTH CAROLINA STATE GUARD, OR STATE OF SOUTH CAROLINA ONLY AFTER THE REQUIRED LIABILITY INSURANCE ON THE VEHICLE OR AIRPLANE HAS BEEN FULLY APPLIED; AND TO AMEND SECTION 42-7-50, RELATING TO POLITICAL SUBDIVISIONS AND OTHER ENTITIES WHICH MAY PARTICIPATE IN THE WORKERS' COMPENSATION INSURANCE PROGRAM, SO AS TO PROVIDE THAT RECOVERY OF WORKERS' COMPENSATION BENEFITS BY MEMBERS OF THE EMERGENCY AIR WING OF THE SOUTH CAROLINA STATE GUARD SHALL BE PAYABLE FROM THE GENERAL FUND OF THE STATE OF SOUTH CAROLINA.
Ordered for consideration tomorrow.
Columbia, S.C., May 3, 2006
Mr. President and Senators:
The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3414 (Word version) -- Rep. Talley: A BILL TO AMEND SECTION 7-15-420, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CASTING A BALLOT BY MEANS OF AN ABSENTEE BALLOT, SO AS TO PROVIDE THAT THE MANAGERS MAY BEGIN THE PROCESS OF EXAMINING THE RETURN-ADDRESSED ENVELOPES FOR ABSENTEE BALLOTS AT 9:00 A.M. INSTEAD OF 2:00 P.M.; THAT BEGINNING AT 9:00 A.M. ON ELECTION DAY, THE ABSENTEE BALLOTS MAY BE TABULATED; AND THAT RESULTS OF THE TABULATION MUST NOT BE PUBLICLY REPORTED UNTIL AFTER THE POLLS ARE CLOSED.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
Speaker of the House
Received as information.
Columbia, S.C., March 22, 2006
Mr. President and Senators:
The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
H. 4165 (Word version) -- Reps. M.A. Pitts, Rhoad, Umphlett, E.H. Pitts, Loftis, Whipper, Witherspoon, Haley, Hardwick, Agnew, Anderson, Vaughn, Mahaffey, Leach, Bales, Clemmons, Cooper, Littlejohn, Owens, Taylor, Weeks, Whitmire, Duncan and Toole: A BILL TO AMEND SECTION 50-3-316, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CRITERIA FOR HIRING NATURAL RESOURCES ENFORCEMENT OFFICERS, SO AS TO REVISE THE RESIDENCY REQUIREMENTS FOR THESE ENFORCEMENT OFFICERS.
Very respectfully,
Speaker of the House
Received as information.
H. 4165 (Word version) -- Reps. M.A. Pitts, Rhoad, Umphlett, E.H. Pitts, Loftis, Whipper, Witherspoon, Haley, Hardwick, Agnew, Anderson, Vaughn, Mahaffey, Leach, Bales, Clemmons, Cooper, Littlejohn, Owens, Taylor, Weeks, Whitmire, Duncan and Toole: A BILL TO AMEND SECTION 50-3-316, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CRITERIA FOR HIRING NATURAL RESOURCES ENFORCEMENT OFFICERS, SO AS TO REVISE THE RESIDENCY REQUIREMENTS FOR THESE ENFORCEMENT OFFICERS.
On motion of Senator GREGORY, the Senate insisted upon its amendments to H. 4165 and asked for a Committee of Conference.
Whereupon, Senators GREGORY, SHEHEEN and BRYANT were appointed to the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.
Columbia, S.C., May 3, 2006
Mr. President and Senators:
The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
H. 3831 (Word version) -- Reps. Talley and Harrison: A BILL TO AMEND SECTION 7-7-910, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PLACES WHERE ELECTORS ARE REGISTERED AND VOTE, SO AS TO PROVIDE THAT IN AN EMERGENCY SITUATION ELECTORS MAY VOTE IN A LOCATION OR AT A POLLING PLACE NOT WITHIN THE PRECINCT WHERE THE ELECTOR IS REGISTERED TO VOTE, AND TO PROVIDE CONDITIONS WHEN AN ALTERNATE POLLING PLACE MAY BE DESIGNATED.
Very respectfully,
Speaker of the House
Received as information.
H. 3831 (Word version) -- Reps. Talley and Harrison: A BILL TO AMEND SECTION 7-7-910, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PLACES WHERE ELECTORS ARE REGISTERED AND VOTE, SO AS TO PROVIDE THAT IN AN EMERGENCY SITUATION ELECTORS MAY VOTE IN A LOCATION OR AT A POLLING PLACE NOT WITHIN THE PRECINCT WHERE THE ELECTOR IS REGISTERED TO VOTE, AND TO PROVIDE CONDITIONS WHEN AN ALTERNATE POLLING PLACE MAY BE DESIGNATED.
On motion of Senator MARTIN, the Senate insisted upon its amendments to H. 3831 and asked for a Committee of Conference.
Whereupon, Senators MARTIN, SHEHEEN and CAMPSEN were appointed to the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.
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 REOGNIZED 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.
Returned with concurrence.
Received as information.
S. 1395 (Word version) -- Senators Campsen, Cleary, Ford, Grooms, McConnell, Pinckney and Scott: A CONCURRENT RESOLUTION TO CONGRATULATE CHARLESTON COUNTY'S ACADEMIC MAGNET HIGH SCHOOL ON BEING NAMED THE TENTH BEST HIGH SCHOOL BY NEWSWEEK MAGAZINE ON ITS 2006 LIST OF THE TOP ONE THOUSAND BEST HIGH SCHOOLS IN THE COUNTRY AND TO HONOR THE FACULTY AND STUDENTS FOR THEIR HARD WORK AND DEDICATION IN ACHIEVING ACADEMIC EXCELLENCE.
Returned with concurrence.
Received as information.
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.
The following House Bill was read the third time and ordered returned to the House with amendments:
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.
H. 4428 (Word version) -- Reps. Cato, Harrell, Sandifer, Altman, Bales, Bingham, Breeland, R. Brown, G. Brown, Ceips, Chellis, Clemmons, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Edge, Haley, Hamilton, Harrison, Hayes, Herbkersman, Hiott, Howard, Huggins, Jefferson, Jennings, Kirsh, Leach, Limehouse, Mack, Merrill, McGee, J.H. Neal, Owens, Perry, Rice, Scarborough, Sinclair, Skelton, D.C. Smith, F.N. Smith, G.R. Smith, G.M. Smith, J.R. Smith, Talley, Taylor, Thompson, Townsend, Vaughn, White, Witherspoon, Young, Anderson, Anthony, Battle, Funderburk, Govan, Martin, Miller, Walker, J. Brown, Clark, Branham, Bailey, Mahaffey, Scott, J.E. Smith and Viers: A BILL TO ENACT THE "SOUTH CAROLINA COMPETITIVE CABLE SERVICES ACT" INCLUDING PROVISIONS TO ADD SECTION 58-12-5 TO THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO PROVIDE FOR A LEGISLATIVE PURPOSE, FINDINGS, AND PREEMPTION IN REGARD TO CABLE SERVICE AND DESIGNATE IT AS ARTICLE 1, CHAPTER 12 OF TITLE 58, TO DESIGNATE SECTIONS 58-12-10 THROUGH 58-12-130 AS ARTICLE 2 OF CHAPTER 12 OF TITLE 58; AND TO AMEND CHAPTER 12 OF TITLE 58 BY ADDING ARTICLE 3 SO AS TO PROVIDE FOR STATE-ISSUED CERTIFICATES OF FRANCHISE AUTHORITY AUTHORIZING THE APPLICANT TO OFFER CABLE SERVICE IN THIS STATE UNDER THE PROCEDURES AND REQUIREMENTS CONTAINED IN THIS ARTICLE.
The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Judiciary.
The Committee on Judiciary proposed the following amendment (JUD4428.001), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/ SECTION 1. This act is known and may be cited as the "South Carolina Competitive Cable Services Act".
SECTION 2. Chapter 12 of Title 58 of the 1976 Code is amended by adding:
General Provisions
Section 58-12-5. (A) Competition between cable television, satellite, and other providers has promoted and continues to promote additional consumer choices for cable service and similar services, and the technology used to provide these services is not constrained or limited by municipal or county boundaries. Accordingly, it is appropriate for the General Assembly to review and update the policy of this State with regard to these services. The General Assembly finds that revising the current system of regulation of these services will relieve consumers of unnecessary costs and burdens, encourage investment, and promote deployment of innovative offerings that provide competitive choices for consumers. Additionally, the General Assembly finds that it is in the best interests of consumers for cable franchises to be non-exclusive and for requests for competitive cable franchises not to be unreasonably refused. The General Assembly further finds that a streamlined policy framework providing statewide uniformity is necessary to allow these functionally equivalent services to compete fairly and to deploy new consumer services more quickly.
(B) After the effective date of this act, no municipality or county may issue a cable franchise pursuant to Section 58-12-30. A municipality or county may continue to enforce existing cable franchises until they expire or are terminated pursuant to Section 58-12-325.
(C) This chapter occupies the entire field of franchising or otherwise regulating cable service and pre-empts any ordinance, resolution, or similar matter adopted by a municipality or county that purports to address franchising or otherwise regulating cable service."
SECTION 3. Sections 58-12-10 through 58-12-130 of Chapter 12 of Title 58 of the 1976 Code are designated as Article 2, Franchising by Municipalities and Counties.
SECTION 4. Chapter 12 of Title 58 of the 1976 Code is amended by adding:
State-Issued Certificate of Franchise Authority
Section 58-12-300. As used in this article, the following terms mean:
(1) 'Cable service' is defined as set forth in 47 U.S.C. Section 522(6).
(2) 'Cable service provider' means a person or entity who is a cable operator, as defined in 47 U.S.C. Section 522(5), throughout the area it serves pursuant to Section 58-12-310, and is subject to Section 58-12-350.
(3) 'Cable system' is defined as set forth in 47 U.S.C. Section 522(7).
(4) 'Franchise' means an initial authorization, or renewal of an authorization, issued by a franchising authority regardless of whether the authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, that authorizes the construction and operation of a cable services network in the public rights-of-way.
(5) 'Franchising authority' means a governmental entity empowered by federal, state, or local law to grant a franchise for cable services. With regard to the holder of a state-issued certificate of franchise authority within the areas covered by the certificate, the Secretary of State is the sole franchising authority.
(6) 'Gross revenues' means all revenues received from subscribers for the provision of cable services, including cable franchise fees, and all revenues received from non-subscribers for advertising and home shopping services. Gross revenues shall not include:
(a) any tax, surcharge, or governmental fee billed to subscribers including, but not limited to, a business license tax levied by a municipality pursuant to Article 20, Chapter 9, Title 58;
(b) any revenue not actually received, even if billed, such as bad debt;
(c) any revenue received by any affiliate or any other person in exchange for supplying goods or services used by the provider to provide video programming;
(d) refunds, rebates, or discounts;
(e) returned check fees or interest;
(f) sales or rental of property, except such property as the subscriber is required to buy or rent exclusively from the cable service provider to receive cable service;
(g) any revenue received for installing or maintaining inside wiring for services other than cable services;
(h) any revenues from services provided over the network that are associated with or classified as noncable services under federal law, including, without limitation, revenues received from telecommunications services, information services, Internet access services, directory or Internet advertising revenue (including, without limitation, yellow pages, white pages, banner advertisements, and electronic publishing advertising). Where the sale of any such noncable service is bundled with the sale of any cable service or services and sold for a single nonitemized price, the term 'gross revenues' shall include only those revenues that are attributable to cable services based on the provider's books and records, such revenues to be allocated in a manner consistent with Generally Accepted Accounting Principles;
(i) sales for resale with respect to which the purchaser is required to pay a franchise fee; or
(j) any reimbursement of costs including, but not limited to, the reimbursements by programmers of marketing costs incurred for the promotion or introduction of video programming.
(7) 'Incumbent cable service provider' means the cable service provider serving the largest number of subscribers in a particular municipality or in the unincorporated area of a county on the effective date of this article.
(8) 'Public right-of-way' means the area on, below, or above a public roadway, highway, street, public sidewalk, alley, or waterway.
(9) 'Video programming' means programming provided by, or generally considered comparable to, programming provided by a television broadcast station, as set forth in 47 U.S.C. Section 522(20).
Section 58-12-310. (A) Except as provided in Section 58-12-325, a person or entity providing cable service in this State on the effective date of this article under a franchise previously granted by the governing body of a municipality or county is not subject to nor may it avail itself of the state-issued certificate of franchise authority provisions of this article with respect to the municipality or county until the franchise expires. Notwithstanding the foregoing, any such cable service provider may seek authorization to provide service in areas where it currently does not have an existing franchise agreement pursuant to provisions of this article.
(B) Subject to the provisions of subsection (A), a person or entity seeking to provide cable service over a cable system as a cable service provider in this State after the effective date of this article must file an application for a state-issued certificate of franchise authority with the Secretary of State as required by this section. The application must be on a form to be established by the Secretary of State and must be accompanied by a fee, not to exceed one hundred ten dollars, to be established by the Secretary of State. If the person or entity is not authorized by other provisions of law to construct, maintain, or operate any type of facilities in the public rights-of-way, the person or entity shall file such an application before constructing, maintaining, or operating any facilities in the public rights-of-way. If the person or entity is authorized by other provisions of law to construct, maintain, or operate any type of facilities in the public rights-of-way, the person or entity shall file the application before providing cable service over a cable system in any given service area. Such application must be accompanied by an affidavit submitted by the applicant and signed by an officer or general partner of the applicant affirming the following:
(1) that the applicant agrees to comply with all applicable federal and state laws and regulations;
(2) a written description of the municipalities and a written description of the unincorporated areas of counties to be served, in whole or in part, by the applicant, which written description must be amended by the applicant before the provision of cable service within an area not described in a previous application or amendment filed by the applicant. For purposes of this subsection, a map or other graphic representation may supplement, but not substitute for, the written description; and
(3) the location of the principal place of business and the names of the principal executive officers of the applicant.
A holder of a state-issued certificate of franchise authority who seeks to amend the certificate to include additional areas to be served shall file an amended application with the Secretary of State that reflects the new service areas to be served.
Provided, however, a holder of a state-issued certificate of franchise authority must begin to deploy service in each of the municipalities and in each of the unincorporated areas of counties described in subsection (B)(2) within one year of the date of the issuance of the certificate or the certificate becomes null and void. This provision shall not be construed to require deployment of service throughout the municipalities or the unincorporated areas of the counties described in subsection (B)(2).
(C) Within five days of receipt of an application or amended application, the Secretary of State must notify each affected municipality and county of its receipt of the application or amended application and must request from each affected municipality and county: (1) the franchise fee rate imposed on the incumbent cable service provider, if any, as of the date of the application or amended application; (2) the number of public, educational, and governmental (PEG) access channels the municipality or county has activated under the incumbent cable provider's franchise agreement as of the date of the application or amended application; and (3) whether the municipality or county consents to the state-issued certificate of franchise authority sought in the application or amended application and, if such consent is denied, an explanation of the reasons for the denial of the requested consent. The notification must contain a copy of the application of the cable service provider including the description of the area to be served.
(D) A municipality or county must respond to a request issued by the Secretary of State pursuant to subsection (C) within sixty-five days of the date of such request. If a municipality or county does not timely respond with the franchise fee rate imposed on the incumbent cable service provider, if any, as of the date of the application or amended application, the franchise fee rate for the applicant in such municipality or county shall be two percent of gross revenue until the county or municipality provides a response and the Secretary of State issues an amended certificate of franchise authority containing a franchise fee in compliance with Section 58-12-330. If a municipality or county does not timely respond with the number of PEG access channels the municipality or county has activated under the incumbent cable provider's franchise agreement as of the date of the application or amended application or with a statement that it has not activated any PEG access channels under the incumbent cable provider's franchise agreement as of such date, the applicant shall not be required to provide any PEG access channels to the municipality or county until the municipality or county provides a response and the Secretary of State issues an amended certificate of franchise authority containing the number of PEG access channels to be provided to the municipality or county in compliance with Section 58-12-370. If a municipality or county denies consent or does not timely indicate its unconditional consent to the state-issued certificate of franchise authority sought in the application or amended application, the Secretary of State shall deny the application or amended application with regard to that municipality or county and shall note on the notice of denial that the reason for the denial was the refusal of the applicable municipality or county to grant consent. If the applicant takes the position that the denial of the application or amended application is actionable, it may seek any appropriate relief under state or federal law in state or federal court, and if the applicant takes the position that the denial of consent by the municipality or county is actionable, it may add the municipality or county denying consent as a party to such action. If the Secretary of State denies the application or amended application under the provisions of this subsection and the affected municipality or county subsequently indicates its unconditional consent to the state-issued certificate of franchise authority sought in the application or amended application, the Secretary of State must promptly issue an amended certificate of franchise authority that includes such municipality or county.
(E) Within eighty days after making the request described in subsection (C), the Secretary of State shall issue the applicant a certificate of franchise authority to operate as a cable service provider and the certificate shall contain the following:
(1) a nonexclusive grant of authority to provide cable service in the areas set forth in the application;
(2) a nonexclusive grant of authority to construct, maintain, and operate facilities along, across, or on public rights-of-way in the delivery of that service, subject to the laws of this State including the lawful exercise of police powers of the municipalities and counties in which the service is delivered;
(3) the franchise fee rate for each municipality or county described in the application in compliance with Section 58-12-330; and
(4) the number of public, education, and governmental access channels to be provided upon request to each municipality or county described in the application, in compliance with Section 58-12-370.
(F) The certificate of franchise authority issued by the Secretary of State is fully transferable to a successor in interest to the applicant to which it is initially granted, provided that the successor in interest files with the Secretary of State an affidavit that complies with the requirements of subsection (B). A notice of transfer must be filed with the Secretary of State and the affected municipalities or counties within ten days of the completion of the transfer. The Secretary of State is neither required nor authorized to act upon the notice.
(G) The certificate of state franchise authority issued pursuant to this article may be terminated by the cable service provider by submitting written notice of the termination to the Secretary of State and the affected municipalities or counties. The Secretary of State is neither required nor authorized to act upon such notice.
(H) The state-issued certificate of franchise authority issued pursuant to this article supersedes and is in lieu of any franchise authority or approval required by Sections 58-12-10 and 58-12-30.
(I) The Secretary of State shall keep for public examination a record of all certificates applied for or granted pursuant to the provisions of this article.
(J) The holder of a state-issued certificate of franchise authority shall give written notification to a municipality or county of the date on which it will actually begin providing service in any part of such municipality or county.
Section 58-12-320. (A) For purposes of this article, a cable service provider is deemed to have or have had a franchise to provide cable service in a specific municipality or unincorporated areas of a county if any predecessor entity of the cable service provider has or, after July 1, 2005, had a cable franchise agreement granted by that specific municipality or county.
(B) The terms 'predecessor' or 'successor entity' in this section shall include, but not be limited to, an entity receiving, obtaining, or operating under a municipal or county cable franchise through merger, sale, assignment, restructuring, or any other type of transaction.
Section 58-12-325. At the time any certificate of franchise authority is issued by the Secretary of State, the Secretary of State immediately shall post information relating to the certificate, specifically including all municipalities and counties described pursuant to Section 58-12-310(B)(2). At any time on or after the date when the holder of a state-issued certificate of franchise authority gives notice, as required by Section 58-12-310(J), that it is beginning to offer service in a given municipality or county, any cable service provider serving such municipality or county shall have the option to terminate existing franchises previously issued by such municipality or county and instead offer cable service in such municipality or county under a certificate of franchise authority that the Secretary of State shall issue in accordance with the requirements of Section 58-12-310. A cable service provider exercising its termination option shall file a statement of termination with the Secretary of State on a form as required by the Secretary of State and submit copies of such filing with any affected municipalities or counties. Termination of existing franchises is effective immediately upon issuance of a certificate of franchising authority by the Secretary of State granting authority to provide cable service in the described municipalities and counties. Upon termination of existing franchises as provided in this section, the cable service provided by the provider exercising its termination option is governed by the provisions of this article in those municipalities and counties where the franchises have been terminated. The termination option of this section applies only with respect to municipalities and counties which have been described pursuant to Section 58-12-310(B)(2) by a holder of a state certificate of franchise authority and not with respect to franchises issued by other municipalities and counties.
Section 58-12-330. (A) Except as otherwise provided in Section 58-12-310, the holder of a state-issued certificate of franchise authority must pay a municipality or county a franchise fee equal to a specified percentage of the holder's gross revenues received from (1) the provision of cable service to subscribers located within the municipality or unincorporated areas of the county, and (2) from advertising and home shopping services as allocated under subsection (B) below. The specified percentage, hereafter referred to as the 'state-issued certificate holder's franchise fee rate', must not exceed the lesser of the incumbent cable service provider's franchise fee rate imposed by the municipality or county, if any, or five percent of the holder's gross revenues as defined in this article. No change to the franchise fee set forth in a state-issued certificate of franchise authority is effective earlier than forty-five days after the Secretary of State provides the holder of the state-issued certificate of franchise authority written notice of the change.
(B) The amount of a cable service provider's non-subscriber revenues from advertising and home shopping services that is allocable to a municipality or unincorporated area of a county is equal to the total amount of such cable service provider's revenue received from advertising and home shopping services multiplied by the ratio of the number of subscribers in such municipality or in the unincorporated area of such county on the preceding January first to the total number of subscribers receiving cable service from such cable service provider on that date.
(C) A municipality or county must promptly notify the Secretary of State of any change to its cable service franchise fee rate, and no such change shall be effective as to the holder of a state-issued certificate of franchise authority earlier than forty-five days after the Secretary of State provides the holder written notice of the change.
(D) The holder of a state-issued certificate of franchise authority must quarterly pay the amount of the franchise fees payable under this section to the affected municipalities and counties. Each quarterly payment must be made within thirty days after the end of the quarter for the preceding calendar quarter. Each payment must be accompanied by a statement showing, for the quarter covered by the payment, the state-issued certificate holder's gross revenues attributable to the municipality or unincorporated areas of the county that imposes a state-issued certificate holder's franchise fee, the applicable state-issued certificate holder's franchise fee rate for the municipality or county, and the portion of the aggregate payment attributable to the municipality or county. Any supporting statements are confidential and are exempt from disclosure under any provision of state law including, without limitation, the Freedom of Information Act.
(E) The holder of a state-issued certificate of franchise authority may designate that portion of a subscriber's bill attributable to a franchise fee imposed pursuant to this article and may recover such amount from the subscriber as a separate item on the bill.
(F) No municipality or county shall levy a tax, license, fee, or other assessment on a cable service provider other than the collection of the franchise fee authorized by this section or a cable franchise fee imposed upon a cable service provider before January 1, 2006; provided, that nothing in this article shall restrict the right of a municipality or county to impose ad valorem taxes, service fees, sales taxes, or other taxes and fees lawfully imposed on other businesses within the municipality or county.
(G) The franchise fee allowed by this section is in lieu of a permit fee, encroachment fee, degradation fee, or other fee assessed on a holder of a state-issued certificate of franchise authority for its occupation of or work within the public rights-of-way.
Section 58-12-340. (A) A municipality or county may, upon reasonable written request but no more than once per year and only once with respect to any given period, review the business records of a cable service provider to the extent necessary to ensure payment of the franchise fee in accordance with Section 58-12-330. Within ninety days after receipt of a request by a county or municipality for business records pursuant to this subsection, a holder of a state-issued certificate of franchise authority must inform the requesting county or municipality of the status of the request. Thereafter, the parties must, upon request by either party, work in good faith to develop a mutually acceptable schedule for the provision of such records.
(B) No municipality, county, or holder of a state-issued certificate of franchise authority may bring any suit arising out of or relating to the amounts allegedly due to a municipality or county under Section 58-12-330, unless that entity has first initiated good-faith settlement discussions in accordance with the negotiation and mediation procedures set forth in subsection (C). All negotiations and mediation pursuant to this section must be confidential and must be treated as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and South Carolina Rules of Evidence.
(C) A municipality, county, or holder of a state-issued certificate of franchise authority shall give the other party written notice of any dispute not resolved in the normal course of business. Representatives of both parties, with authority to settle the dispute, must meet at a mutually agreeable time and place within thirty calendar days after receipt of such notice, and thereafter as often as reasonably deemed necessary, to exchange relevant information and attempt to resolve the dispute. If the dispute has not been resolved within sixty calendar days after receipt of the notice, either the municipality, the county, or the holder of a state-issued certificate of franchise authority may initiate nonbinding mediation. The mediation must be conducted in accordance with the South Carolina Circuit Court Alternative Dispute Resolution Rules and must take place at a mutually agreeable time and location.
(D) Any suit with respect to a dispute arising out of or relating to the amount of the franchise fee allegedly due to a municipality or county under Section 58-12-330 must be filed by the municipality or county seeking to recover an additional amount alleged to be due, or by the holder of a state-issued certificate of franchise authority seeking a refund of an alleged overpayment, in a court of competent jurisdiction within three years following the end of the quarter to which the disputed amount relates; provided, however, that the time period may be extended by written agreement between the holder of a state-issued certificate of franchise authority and a municipality or county. Good faith participation in and completion of the negotiation and mediation procedures set forth in subsection (C) shall be a condition precedent to proceeding with the suit beyond its filing to toll the limitations period set forth in this subsection.
(E) Each party shall bear its own costs incurred in connection with any and all of the activities and procedures set forth in this section. A municipality or county may not employ, appoint, or retain any person or entity for compensation that is dependent in any manner upon the outcome of any such audit, including, without limitation, the audit findings or the recovery of fees or other payment by the municipality or county. A person or entity may not solicit or accept compensation dependent in any manner upon the outcome of any such audit, including, without limitation, the audit findings or the recovery of fees or other payment by the municipality or county.
(F) A municipality or county may contract with a third party for the collection of the franchise fees and enforcement of the provisions of this chapter.
Section 58-12-350. No franchising authority, state agency, or political subdivision of the State may impose any cable system construction or cable service deployment build-out requirements on a holder of a state-issued certificate of franchise authority.
Section 58-12-360. The holder of a state-issued certificate of franchise authority must comply with all applicable federal customer service requirements. The South Carolina Department of Consumer Affairs must receive complaints from customers of the holder of a state-issued certificate of franchise authority in accordance with Section 37-6-117. Contact information for the Department of Consumer Affairs must be printed on the customer's bill.
Section 58-12-370. (A) Not later than one hundred twenty days after a request by a municipality or county, the holder of a state-issued certificate of franchise authority shall provide each municipality or county in which it provides cable service with capacity in its network to allow PEG access channels for noncommercial programming consistent with this section.
(B) Except as otherwise provided in Section 58-12-310, the holder of a state-issued certificate of franchise authority shall provide the same number of PEG access channels a municipality or county has activated under the incumbent cable service provider's franchise agreement as of the date of the holder's application or amended application for a state-issued certificate of franchise authority. If a municipality or county did not have PEG access channels as of the date of the holder's application or amended application for a state-issued certificate of franchise authority, the cable service provider shall furnish, upon written request by that municipality or county, up to three PEG channels, one of which may be used by the municipality or county without restrictions relating to repeat programming. No cable service provider shall be required to provide more than three PEG access channels on its cable system. Municipalities, counties, and cable service providers must cooperate in the sharing of channel capacity to provide PEG access for municipalities and counties served by the cable system.
(C) Any PEG channel above the one unrestricted channel provided pursuant to this section that is not utilized by the municipality or county for at least eight hours a day may no longer be made available to the municipality or county but may be programmed at the cable service provider's discretion. At such time as the municipality or county can certify to the cable service provider a schedule for at least eight hours of daily programming, the cable service provider must restore the previously lost channel but is under no obligation to carry that channel on a basic or analog tier.
(D) If a municipality or county has not utilized the maximum number of additional access channels as permitted by subsection (B), access to the additional channel capacity allowed in subsection (B) may be provided upon a one-hundred-twenty-day request only if the municipality or county can demonstrate that all activated PEG channels are 'substantially utilized'. PEG channels must be considered 'substantially utilized' when eight hours are programmed on that channel each calendar day. In addition, at least forty percent of the eight hours of programming for each business day on average over each calendar quarter must be nonrepeat programming.
(E) The operation of any PEG access channel provided pursuant to this section is the responsibility of the municipality, the county, or the Educational Television Commission receiving the benefit of the channel, and the holder of a state-issued certificate of franchise authority bears only the responsibility for the transmission of the channel. The holder of a state-issued certificate of franchise authority must be responsible for providing the connectivity to each PEG access channel distribution point up to the first two hundred feet.
(F) The municipality, the county, or the Educational Television Commission shall ensure that all transmissions of content and programming provided by or arranged by them to be transmitted over a PEG channel by a holder of a state-issued certificate of franchise authority are provided and submitted to the cable service provider in a manner or form that is capable of being accepted and transmitted by the provider over its network without further alteration or change in the content or transmission signal, and which is compatible with the technology or protocol utilized by the cable service provider to deliver its cable services.
(G) Where technically feasible, the holder of a state-issued certificate of franchise authority and an incumbent cable service provider must use reasonable efforts to interconnect their cable systems on mutually acceptable and reasonable terms for the purpose of providing PEG programming. Interconnection may be accomplished by direct cable microwave link, satellite, or other reasonable method of connection. Holders of a state-issued certificate of franchise authority and incumbent cable service providers shall negotiate in good faith, and incumbent cable service providers may not unreasonably withhold interconnection of PEG channels.
(H) A holder of a state-issued certificate of franchise authority is not required to interconnect for, or otherwise to transmit, PEG content that is branded with the logo, name, or other identifying marks of another cable service provider, and a municipality or county may require a cable service provider to remove its logo, name, or other identifying marks from PEG content that is to be made available to another provider.
Section 58-12-380. (A) A cable service provider that has been granted a state-issued certificate of franchise authority may not deny access to service to any group of potential residential subscribers because of the income of the residents in the local area in which the group resides.
(B) For purposes of determining whether a holder of a state-issued certificate of franchise authority has violated Section 58-12-380(A), cost, density, distance, and technological or commercial limitations must be taken into account, and the holder of the state-issued certificate shall have a reasonable time to deploy its service. Use of alternative technologies that provide different or comparable content, service, and functionality may not be considered a violation of this section. The inability to serve a potential residential subscriber because a holder of a state-issued certificate of franchise authority is prohibited from placing its own facilities in a building or property may not be found to be a violation of this section. This section may not be construed as authorizing any build-out requirements on a holder of a state-issued certificate of franchise authority.
(C) Any potential residential subscriber or group of residential subscribers within a municipality or county described pursuant to Section 58-12-310(B)(2) who believe they are being denied access to services in violation of subsection (A) may file a complaint with the Secretary of State, along with a clear statement of the facts and the information supporting the complaint. If requested by the Secretary of State, the Attorney General must investigate the allegations contained in a complaint filed pursuant to this section, assist the Secretary of State in the preparation of a written determination required by this section, and represent the Secretary of State in any proceeding instituted pursuant to this section. Upon receipt of any such complaint, the Secretary of State or the Attorney General acting on behalf of the Secretary of State shall serve a copy of the complaint and supporting materials upon the subject cable service provider, which shall have sixty days after receipt of such information to submit a written answer and any other relevant information the provider wishes to submit to the Secretary of State in response to the complaint. If, after investigation of the allegations contained in the complaint, the Secretary of State determines based on the information submitted or gathered pursuant to such process that a material violation of subsection (A) has occurred, the Secretary of State or the Attorney General acting on behalf of the Secretary of State shall issue a written determination setting forth the basis for such findings and giving the cable service provider a reasonable time to cure such violation. If the cable service provider fails to cure such violation within the time permitted in the written determination, the Secretary of State may seek enforcement of the terms of the written determination in the circuit courts of this State or in any federal court of competent jurisdiction. A cable service provider that is found by the Secretary of State to be in violation of subsection (A) may challenge that determination in the circuit courts of this State or in any federal court of competent jurisdiction.
(D) The Secretary of State must not withhold or deny an application for franchise authority due to an alleged violation of subsection (A).
Section 58-12-390. Should the holder of a state-issued certificate of franchise authority be found by a court of competent jurisdiction to be in noncompliance with the requirements of this article, the court must order the holder of the state-issued certificate of franchise authority, within a specified reasonable period of time, to cure the noncompliance.
Section 58-12-400. (A) The following sections of Article 2, Chapter 12, Title 58 shall apply to a cable service provider who has been granted a state-issued certificate of franchise authority under this article: Sections 58-12-20, 58-12-30(d) and (f), 58-12-60, 58-12-70, 58-12-110, and 58-12-130(A) and (C).
(B) In addition to the above, each holder of a state-issued certificate of franchise authority must make available one six megahertz channel if it is using analog transmission technology to deliver local broadcast television programming to subscribers over its network, or one standard digital channel if it is using digital technology for such purpose, for the transmissions of the Educational Television Commission.
(C) The following sections of Article 2, Chapter 12 of Title 58 shall not apply to a cable service provider who has been granted a state-issued certificate of franchise authority: Sections 58-12-10, 58-12-30(a), (b), (c), and (e), 58-12-40, 58-12-50, 58-12-80, 58-12-90, 58-12-100, 58-12-120, and 58-12-130(B)."
SECTION 5. If any section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 6. This act takes effect upon approval by the Governor./
Renumber sections to conform.
Amend title to conform.
The committee amendment was adopted.
On motion of Senator MALLOY, the Bill was carried over, as amended.
On motion of Senator McCONNELL, with unanimous consent, the Senate agreed that, when the Senate adjourns on Friday, May 5, 2006, the Senate would stand adjourned to meet on Monday, May 8, 2006, at 2:00 P.M. in Statewide Session; and, further,
When the Senate adjourns on Monday, May 8, 2006, the Senate would stand adjourned to meet on Tuesday, May 9, 2006, at 10:00 A.M. in Statewide Session; and, further,
When the Senate adjourns on Tuesday, May 9, 2006, (Wednesday, May 10, 2006, being a State holiday) the Senate would stand adjourned to meet on Thursday, May 11, 2006, at 11:00 A.M., under the terms and provisions of Rule 1B, and, further,
When the Senate adjourns on Thursday, May 11, 2006, the Senate would stand adjourned to meet on Friday, May 12, 2006, at 11:00 A.M., under the terms and provisions of Rule 1A for local and uncontested matters and those matters which have previously received unanimous consent to be taken up; and, further,
When the Senate adjourns on Friday, May 12, 2006, the Senate would stand adjourned to meet on Tuesday, May 16, 2006, at 12:00 Noon in Statewide Session.
There was no objection and the motion was adopted.
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 Amendment No. P-30A (4449R034.LKG) proposed by Senator GROOMS and previously printed in the Journal of Wednesday, May 3, 2006.
Senator GROOMS explained the amendment.
On motion of Senator GROOMS, Amendment P-30A was carried over.
Senator GROOMS asked unanimous consent to make a motion to take up Amendment No. P-33 for immediate consideration.
There was no objection.
Senators GROOMS, SHEHEEN and SHORT proposed the following Amendment No. P-33 (4449R022.LKG), which was tabled:
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 seventy-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. Residential real property described in Section 12-43-220(c) is exempt from the property tax imposed by this section.
(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. 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 6. 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 7. 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 8. 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 9. 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 seven 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 seven 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 10. 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 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 12-6-3335 and 12-37-253."
SECTION 11. 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) '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 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 five percent 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.
(F) The credit allowed by this section must be funded by the School Trust Fund established pursuant to Section 11-11-155."
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. Except, a property taxing entity may levy property taxes for school operations to compensate for the difference for any year that the property taxing entity would receive less revenue for school operations pursuant to this section than the property taxing entity collected in property tax year 2006 adjusted annually by a factor equal to the growth in the amount of annual revenue over the prior year credited to the School Trust Fund as determined by the Board of Economic Advisors. Any property tax levied pursuant to this subsection must not be levied against residential real property described in Section 12-43-220(c).
(E) In a county area in which is imposed the local option sales tax (LOST) pursuant to Article 1, Chapter 10 of Title 4 on or after July 1, 2005, where the credits allowed pursuant to that article exceed the property tax to which the credit applies, then the excess credit is deemed a distribution from the LOST County/Municipal Revenue Fund."
SECTION 14. Chapter 10, Title 4 of the 1976 Code is amended by adding:
LOCAL OPTION SALES AND USE TAX
FOR LOCAL PROPERTY TAX EXEMPTION
Section 4-10-710. Subject to the requirements of this article, each county must conduct a referendum at the 2006 general election on whether to impose an additional sales and use tax to exempt property classified pursuant to Section 12-43-220(c) from taxes imposed for any purpose, other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction. The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace property tax revenue in the county to provide for this exemption. The governing body of the county shall obtain from the Board of Economic Advisors the board's certified estimate of the rate of sales and use tax necessary in the county to equal revenue derived for any purpose other than payment of bonded indebtedness and payments pursuant to a lease purchase agreement. This certified rate is the rate of tax that must appear in the referendum question.
Section 4-10-740. (A) The county election commission shall conduct a referendum on the question of imposing the sales and use tax. A referendum for this purpose must be held at the time of the general election. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must a (rate) sales and use tax be imposed in (county) to replace property tax revenues not collected in order to exempt owner-occupied property from property taxes imposed for any purpose other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase
agreement or other financing instrument for capital construction?
(C) All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'. If a majority of the votes cast are in favor of imposing the tax, the tax is imposed as provided in this article, and beginning after the fiscal year in which the referendum is held, all property classified pursuant to Section 12-43-220(c) is exempt from taxes imposed for any purpose, other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the results no later than December thirty-first to the county governing body and to the Department of Revenue.
(D) Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(E) Notwithstanding any other provision of this chapter, any referendum to impose the tax pursuant to this article must also include a referendum to rescind any other local sales and use tax previously imposed in the county. The ballot must include a separate question substantially similar to those provided in this chapter on each previously imposed local sales and use tax remaining in effect at the time of the referendum.
Section 4-10-750. (A) If the sales and use tax is approved in the referendum, the tax must be imposed by ordinance on the first of July following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.
(B) If the sales and use tax is not approved in the referendum, the county governing body by ordinance, or seven percent of the qualified electors of the county, by an initiated ordinance submitted to the governing body of the county, may provide for a subsequent referendum held in the manner provided pursuant to Section 4-10-740, but such a referendum may be held only at the time of the general election.
Section 4-10-760. (A) Upon petition of at least seven percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this article requesting that this tax be rescinded, the council shall direct the county election commission to conduct a referendum on the question of rescinding the sales and use tax. A referendum for this purpose must be held on the Tuesday following the first Monday in November following verification of the petition. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must the (rate) sales and use tax imposed in (county) be rescinded with the revenue not collected replaced by extending the property tax to owner-occupied property?
(C)(1) All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'. If a majority of the votes cast are in favor of rescinding the tax, the tax is rescinded effective July first following the referendum and property taxes may be applied to the fair market value of property classified pursuant to Section 12-43-220(c) not otherwise exempt, beginning after the year in which the referendum is held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council. If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
(2) Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county. If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years. If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years. The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year or the referendum must be held on the Tuesday following the first Monday of November of the following year.
Section 4-10-770. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided for in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(D) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-780. The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations. The county treasure must distribute revenues to the various political subdivisions located within the county in amounts sufficient to equal the amount of revenue lost by the political subdivisions as a result of this article.
Section 4-10-790. The Board of Economic Advisors shall furnish data to the State Treasurer and to the counties receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to counties upon request includes, but is not limited to, gross receipts, net taxable sales, tax liability by taxpayers, and estimates of revenue lost by each political subdivision in the county as a result of this article. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240."
SECTION 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 Section 12-6-3335 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.
Senator MARTIN spoke on the amendment.
Senator SHEHEEN argued in favor of the adoption of the amendment.
At 11:53.M., Senator McCONNELL assumed the Chair.
Senator SHEHEEN argued in favor of the adoption of the amendment.
At 11:55 A.M., with Senator SHEHEEN retaining the floor, on motion of Senator LAND, with unanimous consent, the Senate receded from business not to exceed ten minutes.
At 12:35 P.M., the Senate resumed.
Senator SHEHEEN argued in favor of the adoption of the amendment.
Senator GROOMS argued in favor of the adoption of the amendment.
Senator ELLIOTT argued contra to the adoption of the amendment.
Senator MARTIN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Cleary Courson Cromer Drummond Elliott Fair Gregory Hawkins Hayes Knotts Leatherman Leventis Lourie Martin McGill Mescher O'Dell Peeler Rankin Richardson Ritchie Scott Setzler Thomas
Bryant Campsen Ford Grooms Jackson Land Malloy Matthews McConnell Moore Patterson Pinckney Reese Ryberg Sheheen Short Verdin Williams
The amendment was laid on the table.
Senator MARTIN spoke on the Bill.
Senators CAMPSEN, RITCHIE, HAYES, THOMAS, PEELER, FORD, CLEARY, MARTIN, RICHARDSON, O'DELL, HAWKINS and ALEXANDER proposed the following Amendment No. P-34 (JUD4449.068), which was tabled:
Amend the committee report, and if amended, by striking it in its entirety and inserting:
/ Amend the bill, as and if amended, by striking all after the enacting words 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. Beginning October 1, 2006, an additional sales, use, and casual excise tax equal to one half of one percent is imposed on amounts taxable pursuant to this chapter, except that this additional one-quarter of one 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 which lawfully may be purchased with United States Department of Agriculture food coupons.
Section 12-36-1120. Notwithstanding any other provision of law providing for the crediting and use of sales and use tax revenue, the revenue of the tax imposed by this article must be credited to the State Property Tax Relief 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. A. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (A)(1) Except as provided in item (2) of this subsection, the revenue for 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 of the tax 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 the reserve. If actual revenues of the tax imposed pursuant to Section 12-36-1110 credited to 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. To the extent monies are available in the reserve after any transfers to the State Property Tax Credit Fund are made 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) The revenue estimated to be credited to the State Property Tax Credit Fund in a fiscal year must be used to:
(1) make payments to the reserve as provided in subitem (A)(1);
(2) reimburse property taxing entities for the taxes not collected as a result of the exemption provided to manufacturing real and personal property pursuant to Section 12-43-220(B). This reimbursement must be paid in the manner provided pursuant to Section 12-37-270, mutatis mutantis; and
(3) remit to county treasurers on a quarterly basis in the proportion that the population of the county is to the total population of the State for the monies 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.
(C)(1)(a) Revenues received by a county pursuant to subsection (B)(3) 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)(3) 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 section:
(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 noted as such 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."
B. Section 12-37-220(B) of the 1976 Code is amended by adding a new item at the end appropriately numbered to read:
"( ) For property tax years beginning after 2006, 9.5 percent of the fair market value of real and personal property owned by or leased to manufacturers and utilities and used by the manufacturers and utilities receiving the assessment ratio provided pursuant to Section 12-43-220(a) is exempt from property taxes for operations, excluding payments made for bonded indebtedness.
( ) For property tax years beginning after 2006, 9.5% of the fair market value of other personal property receiving the assessment ratio provided pursuant to Section 12-43-220(f) is exempt from property taxes for operations, excluding payments made for bonded indebtedness."
SECTION 1. Chapter 10, Title 4 of the 1976 Code is amended by adding:
LOCAL OPTION SALES AND USE TAX
FOR LOCAL PROPERTY TAX EXEMPTION
Section 4-10-720. As used in this article:
(1) 'Class of property' means property classified for property tax purposes pursuant to Section 12-43-220(c) and also may include other classes of property defined pursuant to this section, but class of property does not include personal motor vehicles as provided pursuant to Section 1 (8)(b), Article X of the Constitution of this State. A class of property is exempt from property tax as provided in this article.
(2) 'County area' means a county and all political subdivisions within its geographical boundaries.
(3) 'Political subdivision' means a county, a municipality, special purpose or public service district, and a school district located wholly or partly within a county area.
(4) 'Property tax' means all property tax millage imposed for operating purposes by a political subdivision within a county area from which a class of property is exempt.
(5) 'ORS' means the Office of Research and Statistics of the State Budget and Control Board.
Section 4-10-730. (A) Subject to the requirements of this article, the governing body of the county by a county council ordinance or by an initiated ordinance submitted to the governing body of the county by a petition signed by qualified electors of the county, equal in number to at least seven percent of the qualified electors of the county, may impose a sales and use tax in increments of one-tenth of one percent, subject to referendum approval in order to wholly exempt from property tax one or more classes of property from property tax imposed by a political subdivision. An ordinance must be enacted or a petition initiating an ordinance must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year. The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace property tax revenue in the county for the affected political subdivisions and school districts in the most recently completed fiscal year and in the case of school districts, must take into account payments to school districts pursuant to the exemption allowed pursuant to Sections 12-37-250 and 12-37-251. If the county or municipality within the county has enacted a tax increment financing redevelopment plan, or other financing plan that relies upon an increase of property tax growth to pay for project costs, the rate of tax must be set in an amount that must consider full funding for the project for the amount that the sales tax would substitute for the property tax growth payments. The governing body of the county shall obtain from ORS after ORS has obtained all information necessary to provide such estimate, a certified estimate of the rate of sales and use tax necessary in the county to equal the property tax not collected, and for the amount, if applicable, for the funding replacement for the tax increment financing redevelopment plan or other financing plan that relies upon property tax growth for its funding. This certified rate is the rate of tax that must appear in the referendum question. A qualified elector of the county desiring to circulate a petition shall file a written request with the governing body providing the class or classes of property and the property tax which are the subject of the petition and the governing body shall forward the request to ORS, which shall design the petition form in consultation with the State Election Commission and calculate and certify the tax rate necessary to provide the exemptions provided in the petition. The petition form and a copy of the certification must be forwarded to the governing body of the county and the governing body shall provide the petition form to the qualified elector requesting the petition form. If competing petitions are timely filed with the governing body of the county and the signatures verified, the governing body may determine which petition initiated ordinance shall go on the ballot or it may substitute its own ordinance in lieu of any petition initiated ordinance.
(B) If the sales and use tax authorized pursuant to this article is imposed in a county, then to the extent not already exempt, one hundred percent of the assessed value of the applicable class or classes of property in the county is exempt from property tax.
Section 4-10-740. (A) Upon receipt of the ordinance, the county election commission shall conduct a referendum on the question of imposing the sales and use tax. A referendum for this purpose must be held at the time of the general election. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must a (rate) sales and use tax be imposed in (county) to replace property tax not collected because of a one hundred percent property tax exemption for (class or classes of property) from property taxes imposed for operating purposes by (political subdivision)?
(C) All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'. If a majority of the votes cast are in favor of imposing the tax, the tax is imposed as provided in this article, and beginning after the fiscal year in which the referendum is held, the applicable class of property otherwise taxable in the county is exempt from property taxes imposed in the county for operating purposes of the applicable political subdivision. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the results no later than December thirty-first to the county governing body and to the Department of Revenue.
(D) Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
Section 4-10-750. (A) If the sales and use tax is approved in the referendum, the tax must be imposed by ordinance on the first of July following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.
(B) If the sales and use tax is not approved in the referendum, the county governing body by ordinance, or seven percent of the qualified electors of the county, by an initiated ordinance submitted to the governing body of the county, may provide for a subsequent referendum held in the manner provided pursuant to Section 4-10-740, but such a referendum may be held only at the time of the general election.
Section 4-10-760. (A) Upon petition of at least seven percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this article requesting that this tax be rescinded, the council shall direct the county election commission to conduct a referendum on the question of rescinding the sales and use tax. A referendum for this purpose must be held on the Tuesday following the first Monday in November following verification of the petition. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must the (rate) sales and use tax imposed in (county) be rescinded with the revenue not collected replaced by extending the property tax for operating purposes on (class of property) imposed by (political subdivision) previously not subject to property tax in this county?
(C)(1) All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'. If a majority of the votes cast are in favor of rescinding the tax, the tax is rescinded effective July first following the referendum and the applicable property taxes apply beginning after the year in which the referendum is held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council. If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
(2) Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county. If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years. If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years. The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year or the referendum must be held on the Tuesday following the first Monday of November of the following year.
Section 4-10-770. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36 of Title 12 shall identify the county in which the personal property purchased at retail is stored, used, or consumed in this State.
(D) Utilities shall report sales in the county in which the consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county, shall report separately in his sales tax return the total gross proceeds from business done in each county.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided for in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(G) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-780. (A) The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations.
(B) Revenues of the tax collected and deposited pursuant to subsection (A) of this section must be distributed by the county treasurer to the applicable political subdivisions located in the county. For counties in which there is more than one school district, the county treasurer shall distribute the revenues of the tax either: (1) in direct proportion to the one hundred thirty-five day average daily membership as referenced in Section 59-20-40(1)(a) for each of the school districts for the fiscal year immediately preceding that in which a distribution is made, as certified by the State Treasurer, upon advice of the State Department of Education; (2) pursuant to a distribution plan unanimously agreed upon by all school districts within the county; or (3) pursuant to a distribution plan authorized by local act. For school districts that are composed of more than one county, the county treasurer shall distribute the revenues of the tax either: (1) to the portion of the school district that resides in the county that has adopted the provisions of this article in proportion to its one hundred thirty-five average daily membership as referenced in Section 59-20-40(1)(a) to the remainder of the school district; or (2) pursuant to a distribution plan authorized by agreement of the multiple counties comprising the school district through local act. For purposes of this section, the one hundred thirty-five average daily membership as referenced in Section 59-20-40(1)(a) excludes any student not residing in the county.
Section 4-10-790. The Board of Economic Advisors shall furnish data to the State Treasurer and to the applicable political subdivisions receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to political subdivisions upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240.
Section 4-10-800. Notwithstanding any other provision of law, a political subdivision receiving revenues of the tax authorized pursuant to this article must not impose an annual increase in property tax millage for operations in an amount of more than the percentage increase of the Southeastern Consumer Price Index, All Urban Consumers, as published by the Department of Labor, Bureau of Labor Statistics, from the previous fiscal year, plus the increase of the population of the political subdivision from the previous year, as certified by the Office of Research and Statistics of the Budget and Control Board. For a school district, the population increase is determined by the percentage increase of the average daily membership of a school district as referenced in Section 59-20-40(1)(a) from the preceding year. Violations of this provision must result in the State Treasurer withholding (1) for political subdivisions, the funding provided by Aid to Subdivisions during the fiscal year in which the violation occurs, in an amount not to exceed one hundred fifty percent of the amount of excess revenues collected due to the violation or (2) for school districts, the funding provided by the Education Finance Act during the fiscal year in which the violation occurs, in an amount not to exceed one hundred fifty percent of the amount of excess revenues collected due to the violation.
Section 4-10-810. Where applicable, the gross proceeds of the sales and use tax collected pursuant to this article must be considered, pursuant to the requirements of Section 59-21-1030, one of the local revenues used in computation of the required Education Improvement Act maintenance of local effort.
Section 4-10-820. (A) There is established in the county treasury the Property Tax Relief Fund Reserve (reserve) as a fund separate and distinct from all other funds. In each political subdivision's fiscal year, the revenues generated by a sales and use tax pursuant to Article 7, Chapter 10, Title 4 above the amount required for operations for the political subdivision's fiscal year must be credited to the reserve. Balances in the reserve at the end of a fiscal year remain in this reserve. If actual revenues of the sales and use tax imposed pursuant to Article 7, Chapter 10, Title 4 in a fiscal year are less than the amount required for operations for the political subdivision's fiscal year, then the county treasurer must apply so much of the reserve as is necessary or available to offset the deficit, with any balance paid from the reserve.
(B) If the monies in a political subdivision's reserve fund equal or exceed fifty percent of the amount of sales and use tax required for operations for a political subdivision's fiscal year, the county treasurer is authorized to distribute to the political subdivision the excess accumulated over the fifty percent amount, whether or not a deficit has occurred or whether or not this exceeds the millage limitations.
(C) Earnings on the political subdivision's reserve must be credited to the reserve."
SECTION 1. 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 that 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 2. Section 6-1-320(B) of the 1976 Code is amended to read:
"(B) Notwithstanding the limitation upon millage rate increases contained in this subsection (A), the millage rate limitation may be suspended and the millage rate may be increased for the following purposes:
(1) in response to a natural, environmental, or other disaster as declared by the Governor;
(2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(3) to raise the revenue necessary to comply with judicial mandates requiring the use of county or municipal funds, personnel, facilities, or equipment;
(4) to meet the minimum required local Education Finance Act inflation factor as projected by the State Budget and Control Board, Division of Research and Statistics, and the per pupil maintenance of effort requirement of Section 59-21-1030, if applicable.
(1) the deficiency of the preceding year as required by Section 7, Article X of the South Carolina Constitution;
(2) any catastrophic event outside the control of the governing body such as a natural disaster, severe weather event, act of God, or act of terrorism, fire, war, or riot;
(3) compliance with a court order or decree;
(4) taxpayer closure due to circumstances outside the control of the governing body that decreases by ten percent or more the amount of revenue payable to the taxing jurisdiction in the preceding year; or
(5) compliance with a regulation promulgated or statute enacted by the federal or state government after the ratification date of this section for which an appropriation or a method for obtaining an appropriation is not provided by the federal or state government.
The amount of tax for each taxpayer must be listed on the tax statement as a separate surcharge, for each aforementioned applicable subitem, and not be included with a general millage increase. Each separate surcharge must have an explanation of the reason for the surcharge. The surcharge must be continued only for the years necessary to pay for the deficiency, for the catastrophic event, or for compliance with the court order or decree."
SECTION 3. A. Section 12-45-75 of the 1976 Code is amended to read:
"Section 12-45-75. (A)(1) The governing body of a county may by ordinance must allow a each taxpayer owning a parcel of taxable real property within the county the option to elect to pay property taxes in installments as provided in this section. pay all ad valorem taxes on real property located in the county in quarterly or monthly installments. An installment election is not allowed for taxes paid through an escrow account.
(2) The ordinance must specify the installment due dates and it may provide for installments due and payable before January fifteenth, but the final installment due date must be January fifteenth. The ordinance may provide for a service charge of not more than two dollars on installment payments. For purposes of payment and collection, these service charges are deemed property taxes. The ordinance may not provide penalties for late installments. A taxpayer electing to pay ad valorem taxes in installments or electing to opt out of paying in installments, must notify the county treasurer in writing no later than January fifteenth of the tax year for which the installment payments are applicable, and no earlier than December first of the preceding tax year. If the treasurer does not receive written notification from December first to January fifteenth, the taxpayer must pay ad valorem taxes in the same manner as the previous taxable year.
(3) The treasurer must notify the county auditor and county assessor of each taxpayer electing the installment payment option or electing to opt out of paying in installments. If the county assessor determines the property has diminished in value, an estimated property tax obligation must be adjusted to reflect the reduced value. Upon being notified of an adjustment for reduced value from the assessor, the county treasurer must notify the property owner of the adjusted estimated property tax obligation.
(B) The governing body of a county may by ordinance provide a discount in all ad valorem taxes on real property located in the county paid in advance of the January fifteenth due date. The ordinance may provide a range of discounts that vary according to the length of the prepayment period. An installment payment is based on the total property tax due for the previous property tax year, after applying all applicable credits and adjustments reflecting reduced value as determined by the county assessor. An amount equal to sixteen and two-thirds percent of the estimated property tax obligation must be paid to the county treasurer in each of five installments according to the following schedule:
In the case of the following estimates, the due date is on or before:
First February 15
Second April 15
Third June 15
Fourth August 15
Fifth October 15
The remaining balance is due on or before January fifteenth of the following taxable year in accordance with Section 12-45-70. The treasurer must notify the county auditor of the amount of a property owner's payments received no earlier than October fifteenth and no later than November fifteenth. A notice of the remaining tax due and other authorized charges and information must then be prepared and mailed to the property owner.
(C) If a taxpayer electing to pay in installments does not timely make each payment pursuant to the schedule in subsection (B), the county may refuse to accept all other installment payments. If the county refuses to accept other installment payments, the remaining balance is due in accordance with Section 12-45-70.
(D) Estimated property taxes paid in installments during a property tax year are a credit against the total property tax due on the real property for the property tax year. The estimated property taxes paid in installments during a property tax year must be deposited by the county treasurer in an interest bearing account. The interest is to be retained by the treasurer to offset the administrative expenses of installment payments. Once final payment is made, and no later than January fifteenth of the following taxable year, the installment payments must be credited to the accounts of property taxing entities in the county in the same proportion that millage was imposed by such entities in the previous tax year with the necessary adjustments made to reflect current tax year millage impositions when property taxes for the current year are paid.
(E) If the credit allowed for estimated property tax paid during the property tax year results in an overpayment of property tax, the overpayment must be refunded to the taxpayer together with the actual interest earned by the county treasurer, running from the later of the due date of the installment resulting in the overpayment, without regard to additional amounts paid, or the actual date the overpayment was received by the county treasurer, to the date the refund is issued. Except that if the overpayment is issued to the taxpayer within forty-five days of the installment payment that resulted in the overpayment, the treasurer may retain the interest earned.
(F) Every tax notice for real property, for which the installment payment option has been elected, must contain a calculation of any estimated property tax due and a payment schedule and return envelopes for these payments.
(G) The payment of estimated property tax as provided in this section and the credit allowed arising from these payments in no way alters the due date, penalty schedule, and enforced collection of property taxes as provided by law."
B. Each county treasurer shall report to the General Assembly on the impact and implementation of this act no later than sixty days after January 15, 2009. The report shall include, but is not limited to, the costs incurred, the interest retained, and the number of individuals electing to pay ad valorem taxes in installments.
Severability
SECTION 1. If any section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
Effective Dates
SECTION 1. (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 October 1, 2006.
(2) The reduction from ten and one-half to nine and one-half percent in the assessment ratio for manufacturing and utility property provided pursuant to Section 12-43-220(a) and the property tax credit allowed pursuant to Section 11-11-155 (C) as added by this act applies for property tax years beginning after 2006.
(3) The provisions of Article 7, Chapter 10, Title 4 take effect upon ratification of an amendment to Article X, Section 3 of the Constitution of this State proposed at the time of the general election of 2006, allowing the exemption provided in Section 4-10-730. If ratification occurs after May 31, 2007, any sales and use tax otherwise scheduled to take effect July 1, 2007, is postponed for twelve months and the homestead exemption is similarly postponed one year. The provisions of Section 12-6-3335 of the 1976 Code as added by this section apply for taxable years beginning after 2005.
(4) The provisions of Section 12-45-75 take effect upon approval by the Governor and apply for real property tax years beginning after 2006.
(5) All other provisions take effect upon approval by the Governor. // /
Renumber sections to conform.
Amend title to conform.
Senator RITCHIE explained the amendment.
Senator SHEHEEN spoke on the amendment.
Senator SHEHEEN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Anderson Ford Hutto Land Leventis Malloy Matthews McConnell Patterson Pinckney Ryberg Sheheen Short Verdin Williams
Alexander Bryant Campsen Cleary * Courson Cromer Drummond Elliott Fair Gregory Hawkins Hayes Jackson Knotts Leatherman Lourie Martin McGill Mescher Moore O'Dell Peeler Rankin Reese Richardson Ritchie Scott 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.
Although we support any method that will reduce the property taxes that our citizens pay, we cannot vote for this amendment (No. P-34) because there are too many questions that are unanswered. These unanswered questions, we believe, may create a tax relief mirage that leaves our residents still seeking relief that does not exist.
The statewide sales increase provided in this amendment would be borne by all South Carolinians but would primarily benefit big businesses and not the homeowners who are demanding relief.
Also, this amendment would not help with the inequities in the EFA formula, but would, at least, perpetuate the problem and maybe exacerbate it. The amendment states that the local option would be used for that county's local effort. However, if per pupil funding is increased, then a county would be required to continually raise its sales tax or raise the taxes on peoples' cars to keep up.
For that reason, we cannot support this amendment.
The Senate refused to table the amendment. The question then was the adoption of the amendment.
Senator HUTTO argued contra to the adoption of the amendment.
Senator SHEHEEN raised a Point of Order that Amendment P-34 was out of order in that it was violative of Section 3 of Article X of the S. C. Constitution inasmuch as any change in the assessment ratio must be accomplished with a two-thirds vote of the membership of each House.
Senator THOMAS spoke on the Point of Order.
Senator HUTTO spoke on the Point of Order.
Senator SHEHEEN spoke on the Point of Order.
The PRESIDENT Pro Tempore stated that the Point of Order was overruled, but that if the Bill contained a change in the assessment ratio, before the Bill leaves the Senate, the Bill must receive a two-thirds vote of the membership or 31 votes.
Senator HUTTO argued contra to the adoption of the amendment.
With Senator HUTTO retaining the floor, Senator FORD asked unanimous consent to make a motion that the Senate stand in recess not to exceed ten minutes.
Senator RICHARDSON objected.
Senator HUTTO argued contra to the adoption of the amendment.
Senator HUTTO moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Anderson Bryant Drummond Ford Grooms Hutto Knotts Land Leventis Lourie Malloy Matthews McConnell McGill Moore Patterson Pinckney Reese Setzler Sheheen Short Verdin Williams
Alexander Campsen Cleary * Courson Cromer Elliott Fair Gregory Hawkins Hayes Jackson Leatherman Martin Mescher O'Dell Peeler Rankin * Richardson Ritchie Scott Thomas
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Although we support any method that will reduce the property taxes that our citizens pay, we cannot vote for this amendment (No. P-34) because there are too many questions that are unanswered. These unanswered questions, we believe, may create a tax relief mirage that leaves our residents still seeking relief that does not exist.
The statewide sales increase provided in this amendment would be borne by all South Carolinians but would primarily benefit big businesses and not the homeowners who are demanding relief.
Also, this amendment would not help with the inequities in the EFA formula, but would, at least, perpetuate the problem and maybe exacerbate it. The amendment states that the local option would be used for that county's local effort. However, if per pupil funding is increased, then a county would be required to continually raise its sales tax or raise the taxes on peoples' cars to keep up.
For that reason, we cannot support this amendment.
At 3:18 P.M., Senator MALLOY moved that the Senate stand adjourned.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Ford Hutto Land Leventis Malloy Patterson
Alexander Bryant Campsen Courson Cromer Drummond Elliott Fair Gregory Grooms Hawkins Hayes Knotts Leatherman Lourie Martin Matthews McConnell McGill Mescher Moore O'Dell Peeler Pinckney Rankin * Reese Richardson Ritchie Ryberg Scott Setzler Sheheen Short Thomas Verdin Williams
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
The Senate refused to adjourn.
Senators SHORT, SHEHEEN, MALLOY, MATTHEWS and GROOMS proposed the following Amendment No. P-36 (4449R022.LKG), which was tabled:
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 seventy-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. Residential real property described in Section 12-43-220(c) is exempt from the property tax imposed by this section.
(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. 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 6. 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 7. 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 8. 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 9. 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 seven 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 seven 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 10. 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 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 12-6-3335 and 12-37-253."
SECTION 11. 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) '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 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 five percent 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.
(F) The credit allowed by this section must be funded by the School Trust Fund established pursuant to Section 11-11-155."
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. Except, a property taxing entity may levy property taxes for school operations to compensate for the difference for any year that the property taxing entity would receive less revenue for school operations pursuant to this section than the property taxing entity collected in property tax year 2006 adjusted annually by a factor equal to the growth in the amount of annual revenue over the prior year credited to the School Trust Fund as determined by the Board of Economic Advisors. Any property tax levied pursuant to this subsection must not be levied against residential real property described in Section 12-43-220(c).
(E) In a county area in which is imposed the local option sales tax (LOST) pursuant to Article 1, Chapter 10 of Title 4 on or after July 1, 2005, where the credits allowed pursuant to that article exceed the property tax to which the credit applies, then the excess credit is deemed a distribution from the LOST County/Municipal Revenue Fund."
SECTION 14. Chapter 10, Title 4 of the 1976 Code is amended by adding:
LOCAL OPTION SALES AND USE TAX
FOR LOCAL PROPERTY TAX EXEMPTION
Section 4-10-710. Subject to the requirements of this article, each county must conduct a referendum at the 2006 general election on whether to impose an additional sales and use tax to exempt property classified pursuant to Section 12-43-220(c) from taxes imposed for any purpose, other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction. The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace property tax revenue in the county to provide for this exemption. The governing body of the county shall obtain from the Board of Economic Advisors the board's certified estimate of the rate of sales and use tax necessary in the county to equal revenue derived for any purpose other than payment of bonded indebtedness and payments pursuant to a lease purchase agreement. This certified rate is the rate of tax that must appear in the referendum question.
Section 4-10-740. (A) The county election commission shall conduct a referendum on the question of imposing the sales and use tax. A referendum for this purpose must be held at the time of the general election. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must a (rate) sales and use tax be imposed in (county) to replace property tax revenues not collected in order to exempt owner-occupied property from property taxes imposed for any purpose other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction?
(C) All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'. If a majority of the votes cast are in favor of imposing the tax, the tax is imposed as provided in this article, and beginning after the fiscal year in which the referendum is held, all property classified pursuant to Section 12-43-220(c) is exempt from taxes imposed for any purpose, other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the results no later than December thirty-first to the county governing body and to the Department of Revenue.
(D) Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(E) Notwithstanding any other provision of this chapter, any referendum to impose the tax pursuant to this article must also include a referendum to rescind any other local sales and use tax previously imposed in the county. The ballot must include a separate question substantially similar to those provided in this chapter on each previously imposed local sales and use tax remaining in effect at the time of the referendum.
Section 4-10-750. (A) If the sales and use tax is approved in the referendum, the tax must be imposed by ordinance on the first of July following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.
(B) If the sales and use tax is not approved in the referendum, the county governing body by ordinance, or seven percent of the qualified electors of the county, by an initiated ordinance submitted to the governing body of the county, may provide for a subsequent referendum held in the manner provided pursuant to Section 4-10-740, but such a referendum may be held only at the time of the general election.
Section 4-10-760. (A) Upon petition of at least seven percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this article requesting that this tax be rescinded, the council shall direct the county election commission to conduct a referendum on the question of rescinding the sales and use tax. A referendum for this purpose must be held on the Tuesday following the first Monday in November following verification of the petition. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must the (rate) sales and use tax imposed in (county) be rescinded with the revenue not collected replaced by extending the property tax to owner-occupied property?
(C)(1) All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'. If a majority of the votes cast are in favor of rescinding the tax, the tax is rescinded effective July first following the referendum and property taxes may be applied to the fair market value of property classified pursuant to Section 12-43-220(c) not otherwise exempt, beginning after the year in which the referendum is held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council. If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
(2) Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county. If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years. If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years. The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year or the referendum must be held on the Tuesday following the first Monday of November of the following year.
Section 4-10-770. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided for in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(D) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-780. The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations. The county treasure must distribute revenues to the various political subdivisions located within the county in amounts sufficient to equal the amount of revenue lost by the political subdivisions as a result of this article.
Section 4-10-790. The Board of Economic Advisors shall furnish data to the State Treasurer and to the counties receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to counties upon request includes, but is not limited to, gross receipts, net taxable sales, tax liability by taxpayers, and estimates of revenue lost by each political subdivision in the county as a result of this article. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240."
SECTION 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 Section 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.
(C) Notwithstanding any provision of this act, no funds may be distributed from the School Trust Fund to the school districts of this State until the General Assembly defines by law programmatic expenditure requirements applicable to the school districts' use of School Trust Funds. Any subsequent act of the General Assembly defining programmatic expenditure requirements, must provide that the requirements of this subsection are satisfied before School Trust Funds may be distributed to the school districts of this State. If the General Assembly does not meet the requirements of this subsection, then any amount of revenue in the School Trust Fund that would otherwise be distributed to the school districts must lapse to the general fund. / //
Renumber sections to conform.
Amend title to conform.
Senator SHORT explained the amendment.
Senator SHORT 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 Cleary * Courson Cromer Elliott Fair Gregory Hawkins Hayes Knotts Leatherman Lourie Martin Mescher O'Dell Peeler Richardson Ritchie Scott Setzler Thomas
Anderson Bryant Drummond Ford Grooms Hutto Jackson Land Leventis Malloy Matthews McConnell McGill Moore * Patterson Pinckney Reese Ryberg Sheheen Short Verdin Williams
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
The Senate refused to table the amendment. The question then was the adoption of the amendment.
Senator RITCHIE argued contra to the adoption of the amendment.
Senator GROOMS argued in favor of the adoption of the amendment.
Senator MARTIN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Courson Cromer Elliott Fair Gregory Hawkins Hayes Knotts Leatherman Leventis Lourie Martin Mescher O'Dell Peeler Richardson Ritchie Scott Setzler Thomas
Anderson Bryant Campsen Ford Grooms Hutto Jackson Land Malloy Matthews McConnell McGill Patterson Pinckney Reese Ryberg Sheheen Short Verdin Williams
The amendment was laid on the table.
At 4:38 P.M., Senator HUTTO moved that the Senate stand adjourned.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Anderson Elliott Ford Hutto Jackson Land Leventis Malloy Matthews McGill Patterson Pinckney Scott Sheheen Short Williams
Alexander Bryant Campsen Cleary * Courson Cromer Fair Gregory Grooms Hawkins Hayes Knotts Leatherman Lourie Martin McConnell Mescher O'Dell Peeler Rankin * Reese Richardson Ritchie Ryberg Setzler Thomas Verdin
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
The Senate refused to adjourn.
Senators CAMPSEN, RITCHIE, HAYES, THOMAS, PEELER, FORD, CLEARY, MARTIN, CROMER, RICHARDSON, O'DELL, HAWKINS, ELLIOTT and ALEXANDER proposed the following Amendment No. P-39A (JUD4449.073), which was adopted:
Amend the committee report, and if amended, by striking it in its entirety and inserting:
/ Amend the bill, as and if amended, by striking all after the enacting words 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. Beginning October 1, 2006, an additional sales, use, and casual excise tax equal to one-half of one percent is imposed on amounts taxable pursuant to this chapter, except that this additional one-half of one 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 which lawfully may be purchased with United States Department of Agriculture food coupons.
Section 12-36-1120. Notwithstanding any other provision of law providing for the crediting and use of sales and use tax revenue, the revenue of the tax imposed by 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. A. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (A)(1) Except as provided in item (2) of this subsection, the revenue for 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 of the tax 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 the reserve. If actual revenues of the tax imposed pursuant to Section 12-36-1110 credited to 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. To the extent monies are available in the reserve after any transfers to the State Property Tax Credit Fund are made 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) The revenue estimated to be credited to the State Property Tax Credit Fund in a fiscal year must be used to:
(1) make payments to the reserve as provided in subitem (A)(1); and
(2) remit to county treasurers on a quarterly basis in the proportion that the population of the county is to the total population of the State for the monies 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.
(C)(1)(a) Revenues received by a county pursuant to subsection (B)(2) 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)(2) 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 section:
(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 noted as such 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 1. Chapter 10, Title 4 of the 1976 Code is amended by adding:
LOCAL OPTION SALES AND USE TAX
FOR LOCAL PROPERTY TAX EXEMPTION
Section 4-10-720. As used in this article:
(1) 'Class of property' means property classified for property tax purposes pursuant to Section 12-43-220(c) and also may include other classes of property defined pursuant to this section. A class of property is exempt or given a credit for property tax as provided in this article.
(2) 'County area' means a county and all political subdivisions within its geographical boundaries.
(3) 'Homestead' means residential real property eligible for the four percent assessment ratio allowed pursuant to Section 12-43-220(c).
(4) 'Political subdivision' means a county, a municipality, special purpose or public service district, and a school district located wholly or partly within a county area.
(5) 'Property tax' means all property tax millage imposed for operating purposes by a political subdivision within a county area from which a class of property is exempt or for which credit is given.
(6) 'ORS' means the Office of Research and Statistics of the State Budget and Control Board.
Section 4-10-730. (A) Subject to the requirements of this article, the governing body of the county by a county council ordinance or by an initiated ordinance submitted to the governing body of the county by a petition signed by qualified electors of the county, equal in number to at least seven percent of the qualified electors of the county, may impose a sales and use tax in increments of one-tenth of one percent, subject to referendum approval in order to wholly exempt from property tax homesteads or to authorize credits to one or more classes of property from property tax imposed by a political subdivision. An ordinance must be enacted or a petition initiating an ordinance must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year. The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace property tax revenue in the county for the affected political subdivisions and school districts in the most recently completed fiscal year and in the case of school districts, must take into account payments to school districts pursuant to the exemption allowed pursuant to Sections 12-37-250 and 12-37-251. If the county or municipality within the county has enacted a tax increment financing redevelopment plan, or other financing plan that relies upon an increase of property tax growth to pay for project costs, the rate of tax must be set in an amount that must consider full funding for the project for the amount that the sales tax would substitute for the property tax growth payments. The governing body of the county shall obtain from ORS after ORS has obtained all information necessary to provide such estimate, a certified estimate of the rate of sales and use tax necessary in the county to equal the property tax not collected, and for the amount, if applicable, for the funding replacement for the tax increment financing redevelopment plan or other financing plan that relies upon property tax growth for its funding. This certified rate is the rate of tax that must appear in the referendum question. A qualified elector of the county desiring to circulate a petition shall file a written request with the governing body providing the class or classes of property and the property tax which are the subject of the petition and the governing body shall forward the request to ORS, which shall design the petition form in consultation with the State Election Commission and calculate and certify the tax rate necessary to provide the exemptions provided in the petition. The petition form and a copy of the certification must be forwarded to the governing body of the county and the governing body shall provide the petition form to the qualified elector requesting the petition form. If competing petitions are timely filed with the governing body of the county and the signatures verified, the governing body may determine which petition initiated ordinance shall go on the ballot or it may substitute its own ordinance in lieu of any petition initiated ordinance.
(B) If the sales and use tax authorized pursuant to this article is imposed in a county, then to the extent not already exempt, one hundred percent of the assessed value of the homestead is exempt from property tax for operations, excluding payments for bonded indebtedness. For the other applicable class or classes of property in the county, the sales and use tax shall be credited to the applicable class of property.
Section 4-10-740. (A) Upon receipt of the ordinance, the county election commission shall conduct a referendum on the question of imposing the sales and use tax. A referendum for this purpose must be held at the time of a November election of any year. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must a (rate) sales and use tax be imposed in (county) to replace property tax not collected because of a one hundred percent property tax exemption for homesteads and for a credit for (class or classes of property) from property taxes imposed for operating purposes by (political subdivision)?
(C) All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'. If a majority of the votes cast are in favor of imposing the tax, the tax is imposed as provided in this article, and beginning after the fiscal year in which the referendum is held, the homesteads are exempt from property taxes imposed in the county for operating purposes of the applicable political subdivision and the applicable class of property otherwise taxable in the county is authorized to receive a credit for property taxes for operating purposes of the applicable political subdivision. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the results no later than December thirty-first to the county governing body and to the Department of Revenue.
(D) Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
Section 4-10-750. (A) If the sales and use tax is approved in the referendum, the tax must be imposed by ordinance on the first of July following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.
(B) If the sales and use tax is not approved in the referendum, the county governing body by ordinance, or seven percent of the qualified electors of the county, by an initiated ordinance submitted to the governing body of the county, may provide for a subsequent referendum held in the manner provided pursuant to Section 4-10-740, but such a referendum may be held only at the time of the general election.
Section 4-10-760. (A) Upon petition of at least seven percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this article requesting that this tax be rescinded, the council shall direct the county election commission to conduct a referendum on the question of rescinding the sales and use tax. A referendum for this purpose must be held on the Tuesday following the first Monday in November following verification of the petition. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must the (rate) sales and use tax imposed in (county) be rescinded with the revenue not collected replaced by extending the property tax for operating purposes on (class of property) imposed by (political subdivision) previously not subject to property tax in this county?
(C)(1) All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'. If a majority of the votes cast are in favor of rescinding the tax, the tax is rescinded effective July first following the referendum and the applicable property taxes apply beginning after the year in which the referendum is held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council. If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
(2) Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county. If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years. If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years. The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year or the referendum must be held on the Tuesday following the first Monday of November of the following year.
Section 4-10-770. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36 of Title 12 shall identify the county in which the personal property purchased at retail is stored, used, or consumed in this State.
(D) Utilities shall report sales in the county in which the consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county, shall report separately in his sales tax return the total gross proceeds from business done in each county.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided for in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(G) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-780. (A) The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations.
(B) Revenues of the tax collected and deposited pursuant to subsection (A) of this section must be distributed by the county treasurer to the applicable political subdivisions located in the county. For counties in which there is more than one school district, the county treasurer shall distribute the revenues of the tax either: (1) in direct proportion to the one-hundred-thirty-five-day average daily membership as referenced in Section 59-20-40(1)(a) for each of the school districts for the fiscal year immediately preceding that in which a distribution is made, as certified by the State Treasurer, upon advice of the State Department of Education; (2) pursuant to a distribution plan unanimously agreed upon by all school districts within the county; or (3) pursuant to a distribution plan authorized by local act. For school districts that are composed of more than one county, the county treasurer shall distribute the revenues of the tax either: (1) to the portion of the school district that resides in the county that has adopted the provisions of this article in proportion to its one-hundred-thirty-five-day average daily membership as referenced in Section 59-20-40(1)(a) to the remainder of the school district; or (2) pursuant to a distribution plan authorized by agreement of the multiple counties comprising the school district through local act. For purposes of this section, the one-hundred-thirty-five-day average daily membership as referenced in Section 59-20-40(1)(a) excludes any student not residing in the county.
Section 4-10-790. The Board of Economic Advisors shall furnish data to the State Treasurer and to the applicable political subdivisions receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to political subdivisions upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240.
Section 4-10-800. Notwithstanding any other provision of law, but including the provisions in Section 6-1-320, a political subdivision receiving revenues of the tax authorized pursuant to this article must not impose an annual increase in property tax millage for operations on classifications of property that do not receive an exemption except in an amount of more than the percentage increase of the Southeastern Consumer Price Index, All Urban Consumers, as published by the Department of Labor, Bureau of Labor Statistics, from the previous fiscal year. Violations of this provision must result in the State Treasurer withholding (1) for political subdivisions, the funding provided by Aid to Subdivisions during the fiscal year in which the violation occurs, in an amount not to exceed one hundred fifty percent of the amount of excess revenues collected due to the violation or (2) for school districts, the funding provided by the Education Finance Act during the fiscal year in which the violation occurs, in an amount not to exceed one hundred fifty percent of the amount of excess revenues collected due to the violation.
Section 4-10-810. Where applicable, the actual expenditures of the sales and use tax collected pursuant to this article that are used for school operations and for a balance to a school operations reserve fund established pursuant to Section 4-10-820 must be considered, pursuant to the requirements of Section 59-21-1030, one of the local revenues used in computation of the required Education Improvement Act maintenance of local effort.
Section 4-10-820. (A) There is established in the county treasury the Property Tax Relief Fund Reserve (reserve) as a fund separate and distinct from all other funds. In each political subdivision's fiscal year, the revenues generated by a sales and use tax pursuant to Article 7, Chapter 10, Title 4 above the amount required for operations for the political subdivision's fiscal year must be credited to the reserve. Balances in the reserve at the end of a fiscal year remain in this reserve. If actual revenues of the sales and use tax imposed pursuant to Article 7, Chapter 10, Title 4 in a fiscal year are less than the amount required for operations for the political subdivision's fiscal year, then the county treasurer must apply so much of the reserve as is necessary or available to offset the deficit, with any balance paid from the reserve.
(B) If the monies in a political subdivision's reserve fund equal or exceed fifty percent of the amount of sales and use tax required for operations for a political subdivision's fiscal year, the county treasurer is authorized to distribute to the political subdivision the excess accumulated over the fifty percent amount, whether or not a deficit has occurred or whether or not this exceeds the millage limitations.
(C) Earnings on the political subdivision's reserve must be credited to the reserve."
SECTION 1. 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 that 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 2. Section 6-1-320(B) of the 1976 Code is amended to read:
"(B) Notwithstanding the limitation upon millage rate increases contained in subsection (A), the millage rate limitation may be suspended and the millage rate may be increased for the following purposes:
(1) in response to a natural, environmental, or other disaster as declared by the Governor;
(2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(3) to raise the revenue necessary to comply with judicial mandates requiring the use of county or municipal funds, personnel, facilities, or equipment;
(4) to meet the minimum required local Education Finance Act inflation factor as projected by the State Budget and Control Board, Division of Research and Statistics, and the per pupil maintenance of effort requirement of Section 59-21-1030, if applicable.
(1) the deficiency of the preceding year as required by Section 7, Article X of the South Carolina Constitution;
(2) any catastrophic event outside the control of the governing body such as a natural disaster, severe weather event, act of God, or act of terrorism, fire, war, or riot;
(3) compliance with a court order or decree;
(4) taxpayer closure due to circumstances outside the control of the governing body that decreases by ten percent or more the amount of revenue payable to the taxing jurisdiction in the preceding year; or
(5) compliance with a regulation promulgated or statute enacted by the federal or state government after the ratification date of this section for which an appropriation or a method for obtaining an appropriation is not provided by the federal or state government.
The amount of tax for each taxpayer must be listed on the tax statement as a separate surcharge, for each aforementioned applicable subitem, and not be included with a general millage increase. Each separate surcharge must have an explanation of the reason for the surcharge. The surcharge must be continued only for the years necessary to pay for the deficiency, for the catastrophic event, or for compliance with the court order or decree."
SECTION 3. A. Section 12-45-75 of the 1976 Code is amended to read:
"Section 12-45-75. (A)(1) The governing body of a county may by ordinance must allow a each taxpayer owning a parcel of taxable real property within the county the option to elect to pay property taxes in installments as provided in this section. pay all ad valorem taxes on real property located in the county in quarterly or monthly installments. An installment election is not allowed for taxes paid through an escrow account.
(2) The ordinance must specify the installment due dates and it may provide for installments due and payable before January fifteenth, but the final installment due date must be January fifteenth. The ordinance may provide for a service charge of not more than two dollars on installment payments. For purposes of payment and collection, these service charges are deemed property taxes. The ordinance may not provide penalties for late installments. A taxpayer electing to pay ad valorem taxes in installments or electing to opt out of paying in installments, must notify the county treasurer in writing no later than January fifteenth of the tax year for which the installment payments are applicable, and no earlier than December first of the preceding tax year. If the treasurer does not receive written notification from December first to January fifteenth, the taxpayer must pay ad valorem taxes in the same manner as the previous taxable year.
(3) The treasurer must notify the county auditor and county assessor of each taxpayer electing the installment payment option or electing to opt out of paying in installments. If the county assessor determines the property has diminished in value, an estimated property tax obligation must be adjusted to reflect the reduced value. Upon being notified of an adjustment for reduced value from the assessor, the county treasurer must notify the property owner of the adjusted estimated property tax obligation.
(B) The governing body of a county may by ordinance provide a discount in all ad valorem taxes on real property located in the county paid in advance of the January fifteenth due date. The ordinance may provide a range of discounts that vary according to the length of the prepayment period. An installment payment is based on the total property tax due for the previous property tax year, after applying all applicable credits and adjustments reflecting reduced value as determined by the county assessor. An amount equal to sixteen and two-thirds percent of the estimated property tax obligation must be paid to the county treasurer in each of five installments according to the following schedule:
In the case of the following estimates, the due date is on or before:
First February 15
Second April 15
Third June 15
Fourth August 15
Fifth October 15
The remaining balance is due on or before January fifteenth of the following taxable year in accordance with Section 12-45-70. The treasurer must notify the county auditor of the amount of a property owner's payments received no earlier than October fifteenth and no later than November fifteenth. A notice of the remaining tax due and other authorized charges and information must then be prepared and mailed to the property owner.
(C) If a taxpayer electing to pay in installments does not timely make each payment pursuant to the schedule in subsection (B), the county may refuse to accept all other installment payments. If the county refuses to accept other installment payments, the remaining balance is due in accordance with Section 12-45-70.
(D) Estimated property taxes paid in installments during a property tax year are a credit against the total property tax due on the real property for the property tax year. The estimated property taxes paid in installments during a property tax year must be deposited by the county treasurer in an interest bearing account. The interest is to be retained by the treasurer to offset the administrative expenses of installment payments. Once final payment is made, and no later than January fifteenth of the following taxable year, the installment payments must be credited to the accounts of property taxing entities in the county in the same proportion that millage was imposed by such entities in the previous tax year with the necessary adjustments made to reflect current tax year millage impositions when property taxes for the current year are paid.
(E) If the credit allowed for estimated property tax paid during the property tax year results in an overpayment of property tax, the overpayment must be refunded to the taxpayer together with the actual interest earned by the county treasurer, running from the later of the due date of the installment resulting in the overpayment, without regard to additional amounts paid, or the actual date the overpayment was received by the county treasurer, to the date the refund is issued. Except that if the overpayment is issued to the taxpayer within forty-five days of the installment payment that resulted in the overpayment, the treasurer may retain the interest earned.
(F) Every tax notice for real property, for which the installment payment option has been elected, must contain a calculation of any estimated property tax due and a payment schedule and return envelopes for these payments.
(G) The payment of estimated property tax as provided in this section and the credit allowed arising from these payments in no way alters the due date, penalty schedule, and enforced collection of property taxes as provided by law."
B. Each county treasurer shall report to the General Assembly on the impact and implementation of this act no later than sixty days after January 15, 2009. The report shall include, but is not limited to, the costs incurred, the interest retained, and the number of individuals electing to pay ad valorem taxes in installments.
Severability
SECTION 1. If any section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
Effective Dates
SECTION 1. (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 October 1, 2006.
(2) The provisions of Article 7, Chapter 10, Title 4 take effect upon approval by the Governor.
(3) The provisions of Section 12-45-75 take effect upon approval by the Governor and apply for real property tax years beginning after 2006.
(4) All other provisions take effect upon approval by the Governor. // /
Renumber sections to conform.
Amend title to conform.
Senator CAMPSEN explained the amendment.
Senator KNOTTS spoke on the amendment.
Senator HUTTO moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Anderson Ford Hutto Jackson Land Leventis Malloy Matthews McGill Patterson Pinckney Reese Sheheen Short Williams
Alexander Bryant Campsen Cleary * Courson Cromer Elliott Fair Gregory Grooms Hawkins Hayes Knotts Leatherman Lourie Martin McConnell Mescher O'Dell Peeler Rankin * Richardson Ritchie Scott * Setzler Thomas Verdin
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
The Senate refused to table the amendment. The question then was the adoption of the amendment.
Senator HUTTO spoke on the amendment.
The question then was the adoption of the amendment.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Anderson Bryant Campsen Cleary Courson Cromer Elliott Fair Gregory Grooms Hawkins Hayes Jackson Knotts Leatherman Lourie Martin McConnell Mescher Moore* O'Dell Peeler Rankin* Reese Richardson Ritchie Ryberg Scott* Setzler Thomas Verdin
Ford Hutto Land Leventis Malloy Matthews McGill Patterson Pinckney Sheheen Short Williams
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
Amendment No. P-39A was adopted.
I voted for the CAMPSEN amendment as a final option for providing property tax relief. This in no way represented my first choice or the best choice among the options presented to the Senate. I voted for the House plan, in its several iterations, as well as for the amendments offered by Senator GROOMS because I believed they went much further to provide real and permanent tax relief not only for homeowners but also for other property.
At 5:56 P.M., Senator HUTTO moved that the Senate stand adjourned.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Elliott Ford Hutto Jackson Leventis Malloy Matthews Patterson Pinckney Short
Alexander Anderson Bryant Campsen Courson Cromer Fair Gregory Grooms Hawkins Hayes Knotts Land Leatherman Lourie Martin McConnell McGill Mescher O'Dell Peeler Reese Richardson Ritchie Ryberg Setzler Sheheen Thomas Verdin Williams
The Senate refused to adjourn.
Senators HUTTO, SHORT and SHEHEEN proposed the following Amendment No. P-10A (4449-ED), which was tabled:
Amend the committee report, as and if amended, by adding an appropriately numbered SECTION to read:
SECTION __. Chapter 37, Title 12 of the 1976 Code of Laws is amended by adding:
"Section 12-37-2890. Not withstanding any other provision of law, as of June 30, 2009, local political subdivisions will not have the authority to assess or collect real or personal property taxes for school operating purposes. At that time, the state will be responsible for the full funding of the operating costs of local schools. This funding will be exclusive of the cost of capital improvement projects or associated debt service for local schools. For fiscal year 2008, the General Assembly is to begin the replacement of real or personal taxes collected by local subdivisions. In accordance with 11-11-150(E) local political subdivisions must roll back millage on real and personal property for school operating purposes equal to the annual amount appropriated for that purposed. By June 30, 2009, there is to be no millage assessed or collected by local political subdivisions for school operating expenses and all millage previously assessed and collected is to be rolled back."
Renumber sections to conform.
Amend title to conform.
Senator HUTTO explained the amendment.
Senator LEATHERMAN spoke on the amendment.
Senator LEATHERMAN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Bryant Campsen Cleary * Courson Cromer Elliott Fair Gregory Hawkins Hayes Knotts Leatherman Martin Mescher O'Dell Peeler Richardson Ritchie Ryberg Thomas
Ford Grooms Hutto Jackson Land Leventis Lourie Malloy Matthews McConnell McGill Moore* Patterson Reese Setzler Sheheen Short Verdin Williams
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Senator HAWKINS proposed the following Amendment No. P-13A (4449R042.JDH), which was tabled:
Amend the committee report, and if amended, by striking it in its entirety and inserting:
/ Amend the bill, as and if amended, by striking all after the enacting words 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. Beginning October 1, 2006, an additional sales, use, and casual excise tax equal to one half of one percent is imposed on amounts taxable pursuant to this chapter, except that this additional one half of one 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 which lawfully may be purchased with United States Department of Agriculture food coupons.
Section 12-36-1120. Notwithstanding any other provision of law providing for the crediting and use of sales and use tax revenue, the revenue of the tax imposed by 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. A. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (A)(1) Except as provided in item (2) of this subsection, the revenue for 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 of the tax 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 the reserve. If actual revenues of the tax imposed pursuant to Section 12-36-1110 credited to 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. To the extent monies are available in the reserve after any transfers to the State Property Tax Credit Fund are made 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) The revenue estimated to be credited to the State Property Tax Credit Fund in a fiscal year must be used to:
(1) make payments to the reserve as provided in subitem (A)(1); and
(2) remit to county treasurers on a quarterly basis in the proportion that the population of the county is to the total population of the State for the monies 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.
(C)(1)(a) Revenues received by a county pursuant to subsection (B)(2) 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)(2) 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 section:
(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 noted as such 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 1. Chapter 10, Title 4 of the 1976 Code is amended by adding:
LOCAL OPTION SALES AND USE TAX
FOR LOCAL PROPERTY TAX EXEMPTION
Section 4-10-720. As used in this article:
(1) 'Class of property' means property classified for property tax purposes pursuant to Section 12-43-220(c) and also may include other classes of property defined pursuant to this section. A class of property is exempt or given a credit for property tax as provided in this article.
(2) 'County area' means a county and all political subdivisions within its geographical boundaries.
(3) 'Homestead' means residential real property eligible for the four percent assessment ratio allowed pursuant to Section 12-43-220(c).
(4) 'Political subdivision' means a county, a municipality, special purpose or public service district, and a school district located wholly or partly within a county area.
(5) 'Property tax' means all property tax millage imposed for operating purposes by a political subdivision within a county area from which a class of property is exempt or for which credit is given.
(6) 'ORS' means the Office of Research and Statistics of the State Budget and Control Board.
Section 4-10-730. (A) Subject to the requirements of this article, the governing body of the county by a county council ordinance or by an initiated ordinance submitted to the governing body of the county by a petition signed by qualified electors of the county, equal in number to at least seven percent of the qualified electors of the county, may impose a sales and use tax in increments of one-tenth of one percent, subject to referendum approval in order to wholly exempt from property tax homesteads or to authorize credits to one or more classes of property from property tax imposed by a political subdivision. An ordinance must be enacted or a petition initiating an ordinance must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year. The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace property tax revenue in the county for the affected political subdivisions and school districts in the most recently completed fiscal year and in the case of school districts, must take into account payments to school districts pursuant to the exemption allowed pursuant to Sections 12-37-250 and 12-37-251. If the county or municipality within the county has enacted a tax increment financing redevelopment plan, or other financing plan that relies upon an increase of property tax growth to pay for project costs, the rate of tax must be set in an amount that must consider full funding for the project for the amount that the sales tax would substitute for the property tax growth payments. The governing body of the county shall obtain from ORS after ORS has obtained all information necessary to provide such estimate, a certified estimate of the rate of sales and use tax necessary in the county to equal the property tax not collected, and for the amount, if applicable, for the funding replacement for the tax increment financing redevelopment plan or other financing plan that relies upon property tax growth for its funding. This certified rate is the rate of tax that must appear in the referendum question. A qualified elector of the county desiring to circulate a petition shall file a written request with the governing body providing the class or classes of property and the property tax which are the subject of the petition and the governing body shall forward the request to ORS, which shall design the petition form in consultation with the State Election Commission and calculate and certify the tax rate necessary to provide the exemptions provided in the petition. The petition form and a copy of the certification must be forwarded to the governing body of the county and the governing body shall provide the petition form to the qualified elector requesting the petition form. If competing petitions are timely filed with the governing body of the county and the signatures verified, the governing body may determine which petition initiated ordinance shall go on the ballot or it may substitute its own ordinance in lieu of any petition initiated ordinance.
(B) If the sales and use tax authorized pursuant to this article is imposed in a county, then to the extent not already exempt, one hundred percent of the assessed value of the homestead is exempt from property tax for operations, excluding payments for bonded indebtedness. For the other applicable class or classes of property in the county, the sales and use tax shall be credited to the applicable class of property.
Section 4-10-740. (A) Upon receipt of the ordinance, the county election commission shall conduct a referendum on the question of imposing the sales and use tax. A referendum for this purpose must be held at the time of a November election of any year. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must a (rate) sales and use tax be imposed in (county) to replace property tax not collected because of a one hundred percent property tax exemption for homesteads and for a credit for (class or classes of property) from property taxes imposed for operating purposes by (political subdivision)?
(C) All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'. If a majority of the votes cast are in favor of imposing the tax, the tax is imposed as provided in this article, and beginning after the fiscal year in which the referendum is held, the homesteads are exempt from property taxes imposed in the county for operating purposes of the applicable political subdivision and the applicable class of property otherwise taxable in the county is authorized to receive a credit for property taxes for operating purposes of the applicable political subdivision. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the results no later than December thirty-first to the county governing body and to the Department of Revenue.
(D) Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
Section 4-10-750. (A) If the sales and use tax is approved in the referendum, the tax must be imposed by ordinance on the first of July following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.
(B) If the sales and use tax is not approved in the referendum, the county governing body by ordinance, or seven percent of the qualified electors of the county, by an initiated ordinance submitted to the governing body of the county, may provide for a subsequent referendum held in the manner provided pursuant to Section 4-10-740, but such a referendum may be held only at the time of the general election.
Section 4-10-760. (A) Upon petition of at least seven percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this article requesting that this tax be rescinded, the council shall direct the county election commission to conduct a referendum on the question of rescinding the sales and use tax. A referendum for this purpose must be held on the Tuesday following the first Monday in November following verification of the petition. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must the (rate) sales and use tax imposed in (county) be rescinded with the revenue not collected replaced by extending the property tax for operating purposes on (class of property) imposed by (political subdivision) previously not subject to property tax in this county?
(C)(1) All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'. If a majority of the votes cast are in favor of rescinding the tax, the tax is rescinded effective July first following the referendum and the applicable property taxes apply beginning after the year in which the referendum is held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council. If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
(2) Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county. If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years. If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years. The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year or the referendum must be held on the Tuesday following the first Monday of November of the following year.
Section 4-10-770. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36 of Title 12 shall identify the county in which the personal property purchased at retail is stored, used, or consumed in this State.
(D) Utilities shall report sales in the county in which the consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county, shall report separately in his sales tax return the total gross proceeds from business done in each county.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided for in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(G) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-780. (A) The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations.
(B) Revenues of the tax collected and deposited pursuant to subsection (A) of this section must be distributed by the county treasurer to the applicable political subdivisions located in the county. For counties in which there is more than one school district, the county treasurer shall distribute the revenues of the tax either: (1) in direct proportion to the one hundred thirty-five day average daily membership as referenced in Section 59-20-40(1)(a) for each of the school districts for the fiscal year immediately preceding that in which a distribution is made, as certified by the State Treasurer, upon advice of the State Department of Education; (2) pursuant to a distribution plan unanimously agreed upon by all school districts within the county; or (3) pursuant to a distribution plan authorized by local act. For school districts that are composed of more than one county, the county treasurer shall distribute the revenues of the tax either: (1) to the portion of the school district that resides in the county that has adopted the provisions of this article in proportion to its one hundred thirty-five average daily membership as referenced in Section 59-20-40(1)(a) to the remainder of the school district; or (2) pursuant to a distribution plan authorized by agreement of the multiple counties comprising the school district through local act. For purposes of this section, the one hundred thirty-five average daily membership as referenced in Section 59-20-40(1)(a) excludes any student not residing in the county.
Section 4-10-790. The Board of Economic Advisors shall furnish data to the State Treasurer and to the applicable political subdivisions receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to political subdivisions upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240.
Section 4-10-800. Notwithstanding any other provision of law, but including the provisions in Section 6-1-320, a political subdivision receiving revenues of the tax authorized pursuant to this article must not impose an annual increase in property tax millage for operations on classifications of property that do not receive an exemption except in an amount of more than the percentage increase of the Southeastern Consumer Price Index, All Urban Consumers, as published by the Department of Labor, Bureau of Labor Statistics, from the previous fiscal year. Violations of this provision must result in the State Treasurer withholding (1) for political subdivisions, the funding provided by Aid to Subdivisions during the fiscal year in which the violation occurs, in an amount not to exceed one hundred fifty percent of the amount of excess revenues collected due to the violation or (2) for school districts, the funding provided by the Education Finance Act during the fiscal year in which the violation occurs, in an amount not to exceed one hundred fifty percent of the amount of excess revenues collected due to the violation.
Section 4-10-810. Where applicable, the actual expenditures of the sales and use tax collected pursuant to this article that are used for school operations and for a balance to a school operations reserve fund established pursuant to Section 4-10-820 must be considered, pursuant to the requirements of Section 59-21-1030, one of the local revenues used in computation of the required Education Improvement Act maintenance of local effort.
Section 4-10-820. (A) There is established in the county treasury the Property Tax Relief Fund Reserve (reserve) as a fund separate and distinct from all other funds. In each political subdivision's fiscal year, the revenues generated by a sales and use tax pursuant to Article 7, Chapter 10, Title 4 above the amount required for operations for the political subdivision's fiscal year must be credited to the reserve. Balances in the reserve at the end of a fiscal year remain in this reserve. If actual revenues of the sales and use tax imposed pursuant to Article 7, Chapter 10, Title 4 in a fiscal year are less than the amount required for operations for the political subdivision's fiscal year, then the county treasurer must apply so much of the reserve as is necessary or available to offset the deficit, with any balance paid from the reserve.
(B) If the monies in a political subdivision's reserve fund equal or exceed fifty percent of the amount of sales and use tax required for operations for a political subdivision's fiscal year, the county treasurer is authorized to distribute to the political subdivision the excess accumulated over the fifty percent amount, whether or not a deficit has occurred or whether or not this exceeds the millage limitations.
(C) Earnings on the political subdivision's reserve must be credited to the reserve."
SECTION 1. 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 that 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 2. Section 6-1-320(B) of the 1976 Code is amended to read:
"(B) Notwithstanding the limitation upon millage rate increases contained in subsection (A), the millage rate limitation may be suspended and the millage rate may be increased for the following purposes:
(1) in response to a natural, environmental, or other disaster as declared by the Governor;
(2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(3) to raise the revenue necessary to comply with judicial mandates requiring the use of county or municipal funds, personnel, facilities, or equipment;
(4) to meet the minimum required local Education Finance Act inflation factor as projected by the State Budget and Control Board, Division of Research and Statistics, and the per pupil maintenance of effort requirement of Section 59-21-1030, if applicable.
(1) the deficiency of the preceding year as required by Section 7, Article X of the South Carolina Constitution;
(2) any catastrophic event outside the control of the governing body such as a natural disaster, severe weather event, act of God, or act of terrorism, fire, war, or riot;
(3) compliance with a court order or decree;
(4) taxpayer closure due to circumstances outside the control of the governing body that decreases by ten percent or more the amount of revenue payable to the taxing jurisdiction in the preceding year; or
(5) compliance with a regulation promulgated or statute enacted by the federal or state government after the ratification date of this section for which an appropriation or a method for obtaining an appropriation is not provided by the federal or state government.
The amount of tax for each taxpayer must be listed on the tax statement as a separate surcharge, for each aforementioned applicable subitem, and not be included with a general millage increase. Each separate surcharge must have an explanation of the reason for the surcharge. The surcharge must be continued only for the years necessary to pay for the deficiency, for the catastrophic event, or for compliance with the court order or decree."
Severability
SECTION 1. If any section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
Effective Dates
SECTION 1. (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 October 1, 2006.
(2) The provisions of Article 7, Chapter 10, Title 4 take effect upon approval of the Governor.
(3) All other provisions take effect upon approval by the Governor. //
Renumber sections to conform.
Amend title to conform.
Senator HAWKINS 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 Campsen Courson Cromer Elliott Fair Ford Gregory Hayes Hutto Jackson Land Leatherman Leventis Lourie Malloy Martin Matthews McConnell McGill Mescher O'Dell Patterson Richardson Setzler Sheheen Short Thomas Williams
Bryant Hawkins Knotts Peeler Reese Ritchie Ryberg Verdin
The amendment was laid on the table.
Senator KNOTTS proposed the following Amendment No. P-16 (JUD4449.035), which was previously proposed and printed in the Journal of Thursday, April 20, 2006.
On motion of Senator KNOTTS, with unanimous consent, the amendment was withdrawn.
Senators SETZLER and KNOTTS proposed the following Amendment P-23 (4449-SETZLER), which was adopted, subsequently reconsidered and tabled:
Amend the committee report, as and if amended, by adding an appropriately numbered SECTION to read:
SECTION __. 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:
/ "( ) durable medical equipment as defined under federal and state Medicaid and Medicare laws, which is paid directly by funds of this State or the United States under the Medicaid or Medicare programs, where state or federal law or regulation authorizing the payment prohibits the payment of the sale or use tax, and sold by a provider who holds a South Carolina retail sales license and whose principal place of business is located in this State, 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 medical equipment 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." /
Renumber sections to conform.
Amend title to conform.
Senator SETZLER explained the amendment.
Senator SETZLER moved that the amendment be adopted.
The amendment was adopted.
We wished the Journal to reflect that we abstained from the consideration of and voting on matters pertaining to this amendment.
Senator GROOMS proposed the following Amendment No. P-30A (4449R034.LKG), which was previously printed in the Journal of Wednesday, May 3, 2006.
Senator GROOMS explained the amendment.
On motion of Senator GROOMS, with unanimous consent, the amendment was withdrawn.
Senator RICHARDSON proposed the following Amendment No. P-41 (BBM\9469HTC06), which was tabled:
Amend the committee report, as and if amended, by inserting a penultimate SECTION appropriately numbered to read:
/ SECTION __. A. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) otherwise taxable tangible personal property when sold or leased to a public school district of this State."
B. Notwithstanding the general effective date of this act, this SECTION takes effect July 1, 2006. /
Renumber sections to conform.
Amend title to conform.
Senator RICHARDSON explained the amendment.
Senator LEATHERMAN spoke on the amendment.
Senator LEATHERMAN moved to lay the amendment on the table.
The amendment was laid on the table.
Senator RICHARDSON desired to be recorded as voting against the motion to table the amendment.
Senator ELLIOTT proposed the following Amendment P-42 (BBM\ 9470HTC06), which was adopted:
Amend the committee amendment, as and if amended, by adding a new subsection at the end to read:
/ (C) No tax imposed pursuant to this article may exceed two percent of amounts taxable pursuant to Section 12-36-920 if more than twelve million dollars was collected in the county from the statewide sales tax on accommodations for transients in the most recently completed fiscal year. /
Renumber sections to conform.
Amend title to conform.
Senator ELLIOTT explained the amendment.
The amendment was adopted.
Senator GROOMS proposed the following Amendment No. P-43 (4449R041.LKG), which was tabled:
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 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 4. 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 5. 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 6. 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 6. 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 7. 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 seven 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 seven 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 8. 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 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 12-6-3335 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 9. 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) '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 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 five percent 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.
(F) The credit allowed by this section must be funded by the School Trust Fund established pursuant to Section 11-11-155."
SECTION 10. 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 11. 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(c) is exempt from taxes imposed for school operating purposes, for any remaining fair market value after the exemption allowed pursuant to Section 12-37-250 and Section 12-37-251 is applied. The fair market value of all other property classified pursuant to Section 12-43-220 is exempt from taxes imposed for school operating purposes, except that each political subdivision imposing a tax for school operations upon the effective date of this act must impose must impose an ad valorem tax of seventy-five mills for school operating purposes on all other classes of property and must not impose any other ad valorem tax 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) The Board of Economic Advisors must estimate the total amount of revenue collected by political subdivisions pursuant to the seventy-five mill ad valorem tax levy pursuant to subsection (A) and the amount of revenue that each school district will receive from this levy. The amount of School Trust Fund Revenue distributed to each school district must be reduced by each school district's proportional percentage of the statewide total amount of revenue estimated to be collected pursuant to subsection (A).
(7) 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. Except, a property taxing entity may levy property taxes for school operations to compensate for the difference for any year that the property taxing entity would receive less revenue for school operations pursuant to this section than the property taxing entity collected in property tax year 2006 adjusted annually by a factor equal to the growth in the amount of annual revenue over the prior year credited to the School Trust Fund as determined by the Board of Economic Advisors. Any property tax levied pursuant to this subsection must not be levied against residential real property described in Section 12-43-220(c).
(E) In a county area in which is imposed the local option sales tax (LOST) pursuant to Article 1, Chapter 10 of Title 4 on or after July 1, 2005, where the credits allowed pursuant to that article exceed the property tax to which the credit applies, then the excess credit is deemed a distribution from the LOST County/Municipal Revenue Fund."
SECTION 13. Chapter 10, Title 4 of the 1976 Code is amended by adding:
LOCAL OPTION SALES AND USE TAX
FOR LOCAL PROPERTY TAX EXEMPTION
Section 4-10-710. Subject to the requirements of this article, each county must conduct a referendum at the 2006 general election on whether to impose an additional sales and use tax to exempt property classified pursuant to Section 12-43-220(c) from taxes imposed for any purpose, other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction. The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace property tax revenue in the county to provide for this exemption. The governing body of the county shall obtain from the Board of Economic Advisors the board's certified estimate of the rate of sales and use tax necessary in the county to equal revenue derived for any purpose other than payment of bonded indebtedness and payments pursuant to a lease purchase agreement. This certified rate is the rate of tax that must appear in the referendum question.
Section 4-10-740. (A) The county election commission shall conduct a referendum on the question of imposing the sales and use tax. A referendum for this purpose must be held at the time of the general election. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must a (rate) sales and use tax be imposed in (county) to replace property tax revenues not collected in order to exempt owner-occupied property from property taxes imposed for any purpose other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction?
(C) All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'. If a majority of the votes cast are in favor of imposing the tax, the tax is imposed as provided in this article, and beginning after the fiscal year in which the referendum is held, all property classified pursuant to Section 12-43-220(c) is exempt from taxes imposed for any purpose, other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the results no later than December thirty-first to the county governing body and to the Department of Revenue.
(D) Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(E) Notwithstanding any other provision of this chapter, any referendum to impose the tax pursuant to this article must also include a referendum to rescind any other local sales and use tax previously imposed in the county. The ballot must include a separate question substantially similar to those provided in this chapter on each previously imposed local sales and use tax remaining in effect at the time of the referendum.
Section 4-10-750. (A) If the sales and use tax is approved in the referendum, the tax must be imposed by ordinance on the first of July following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.
(B) If the sales and use tax is not approved in the referendum, the county governing body by ordinance, or seven percent of the qualified electors of the county, by an initiated ordinance submitted to the governing body of the county, may provide for a subsequent referendum held in the manner provided pursuant to Section 4-10-740, but such a referendum may be held only at the time of the general election.
Section 4-10-760. (A) Upon petition of at least seven percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this article requesting that this tax be rescinded, the council shall direct the county election commission to conduct a referendum on the question of rescinding the sales and use tax. A referendum for this purpose must be held on the Tuesday following the first Monday in November following verification of the petition. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must the (rate) sales and use tax imposed in (county) be rescinded with the revenue not collected replaced by extending the property tax to owner-occupied property?
No []'
(C)(1) All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'. If a majority of the votes cast are in favor of rescinding the tax, the tax is rescinded effective July first following the referendum and property taxes may be applied to the fair market value of property classified pursuant to Section 12-43-220(c) not otherwise exempt, beginning after the year in which the referendum is held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council. If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
(2) Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county. If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years. If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years. The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year or the referendum must be held on the Tuesday following the first Monday of November of the following year.
Section 4-10-770. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided for in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(D) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-780. The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations. The county treasure must distribute revenues to the various political subdivisions located within the county in amounts sufficient to equal the amount of revenue lost by the political subdivisions as a result of this article.
Section 4-10-790. The Board of Economic Advisors shall furnish data to the State Treasurer and to the counties receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to counties upon request includes, but is not limited to, gross receipts, net taxable sales, tax liability by taxpayers, and estimates of revenue lost by each political subdivision in the county as a result of this article. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240."
SECTION 14. (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 Section 12-6-3335 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.
(C) It is the intent of the General Assembly to define by law programmatic expenditure requirements applicable to the school districts' use of School Trust Funds.
(D) The provisions of SECTION 14 take effect on the later of January 1, 2007 or the ratification of a constitutional amendment to Article X of the South Carolina Constitution that allows for the General Assembly to provide for homestead exemptions that are not required to be applied uniformly throughout this State, but rather only apply to a particular county if adopted by referendum. / //
Renumber sections to conform.
Amend title to conform.
Senator GROOMS explained the amendment.
Senator THOMAS spoke on the amendment.
Senator THOMAS moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Courson Cromer Elliott Fair Hawkins Hayes Leatherman Lourie Martin McConnell Mescher O'Dell Peeler Richardson Ritchie Setzler Thomas
Bryant Ford Grooms Hutto Knotts Land Leventis Malloy Matthews McGill Patterson Reese Sheheen Short Verdin Williams
The amendment was laid on the table.
Having voted on the prevailing side, Senator LAND moved to reconsider the vote whereby Amendment No. P-23 (4449-Setzler) proposed by Senators SETZLER and KNOTTS was adopted.
There was no objection and the motion to reconsider was adopted.
The question then was the adoption of Amendment No. P-23.
Senator LEATHERMAN moved to lay the amendment on the table.
The amendment was laid on the table.
The question then was the adoption of the committee amendment, as perfected.
The committee amendment, as perfected, was adopted as follows:
CLERK'S CONFORMING AMENDMENT (4449R044.GFM):
Amend the bill, as and if amended, by striking all after the enacting words 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. Beginning October 1, 2006, an additional sales, use, and casual excise tax equal to one-half of one percent is imposed on amounts taxable pursuant to this chapter, except that this additional one-half of one 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 which lawfully may be purchased with United States Department of Agriculture food coupons.
Section 12-36-1120. Notwithstanding any other provision of law providing for the crediting and use of sales and use tax revenue, the revenue of the tax imposed by 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. A. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (A)(1) Except as provided in item (2) of this subsection, the revenue for 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 of the tax 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 the reserve. If actual revenues of the tax imposed pursuant to Section 12-36-1110 credited to 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. To the extent monies are available in the reserve after any transfers to the State Property Tax Credit Fund are made 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) The revenue estimated to be credited to the State Property Tax Credit Fund in a fiscal year must be used to:
(1) make payments to the reserve as provided in subitem (A)(1); and
(2) remit to county treasurers on a quarterly basis in the proportion that the population of the county is to the total population of the State for the monies 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.
(C)(1)(a) Revenues received by a county pursuant to subsection (B)(2) 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)(2) 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 section:
(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 noted as such 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 1. Chapter 10, Title 4 of the 1976 Code is amended by adding:
LOCAL OPTION SALES AND USE TAX
FOR LOCAL PROPERTY TAX EXEMPTION
Section 4-10-720. As used in this article:
(1) 'Class of property' means property classified for property tax purposes pursuant to Section 12-43-220(c) and also may include other classes of property defined pursuant to this section. A class of property is exempt or given a credit for property tax as provided in this article.
(2) 'County area' means a county and all political subdivisions within its geographical boundaries.
(3) 'Homestead' means residential real property eligible for the four percent assessment ratio allowed pursuant to Section 12-43-220(c).
(4) 'Political subdivision' means a county, a municipality, special purpose or public service district, and a school district located wholly or partly within a county area.
(5) 'Property tax' means all property tax millage imposed for operating purposes by a political subdivision within a county area from which a class of property is exempt or for which credit is given.
(6) 'ORS' means the Office of Research and Statistics of the State Budget and Control Board.
Section 4-10-730. (A) Subject to the requirements of this article, the governing body of the county by a county council ordinance or by an initiated ordinance submitted to the governing body of the county by a petition signed by qualified electors of the county, equal in number to at least seven percent of the qualified electors of the county, may impose a sales and use tax in increments of one-tenth of one percent, subject to referendum approval in order to wholly exempt from property tax homesteads or to authorize credits to one or more classes of property from property tax imposed by a political subdivision. An ordinance must be enacted or a petition initiating an ordinance must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year. The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace property tax revenue in the county for the affected political subdivisions and school districts in the most recently completed fiscal year and in the case of school districts, must take into account payments to school districts pursuant to the exemption allowed pursuant to Sections 12-37-250 and 12-37-251. If the county or municipality within the county has enacted a tax increment financing redevelopment plan, or other financing plan that relies upon an increase of property tax growth to pay for project costs, the rate of tax must be set in an amount that must consider full funding for the project for the amount that the sales tax would substitute for the property tax growth payments. The governing body of the county shall obtain from ORS after ORS has obtained all information necessary to provide such estimate, a certified estimate of the rate of sales and use tax necessary in the county to equal the property tax not collected, and for the amount, if applicable, for the funding replacement for the tax increment financing redevelopment plan or other financing plan that relies upon property tax growth for its funding. This certified rate is the rate of tax that must appear in the referendum question. A qualified elector of the county desiring to circulate a petition shall file a written request with the governing body providing the class or classes of property and the property tax which are the subject of the petition and the governing body shall forward the request to ORS, which shall design the petition form in consultation with the State Election Commission and calculate and certify the tax rate necessary to provide the exemptions provided in the petition. The petition form and a copy of the certification must be forwarded to the governing body of the county and the governing body shall provide the petition form to the qualified elector requesting the petition form. If competing petitions are timely filed with the governing body of the county and the signatures verified, the governing body may determine which petition initiated ordinance shall go on the ballot or it may substitute its own ordinance in lieu of any petition initiated ordinance.
(B) If the sales and use tax authorized pursuant to this article is imposed in a county, then to the extent not already exempt, one hundred percent of the assessed value of the homestead is exempt from property tax for operations, excluding payments for bonded indebtedness. For the other applicable class or classes of property in the county, the sales and use tax shall be credited to the applicable class of property.
(C) No tax imposed pursuant to this article may exceed two percent of amounts taxable pursuant to Section 12-36-920 if more than twelve million dollars was collected in the county from the statewide sales tax on accommodations for transients in the most recently completed fiscal year.
Section 4-10-740. (A) Upon receipt of the ordinance, the county election commission shall conduct a referendum on the question of imposing the sales and use tax. A referendum for this purpose must be held at the time of a November election of any year. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must a (rate) sales and use tax be imposed in (county) to replace property tax not collected because of a one hundred percent property tax exemption for homesteads and for a credit for (class or classes of property) from property taxes imposed for operating purposes by (political subdivision)?
(C) All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'. If a majority of the votes cast are in favor of imposing the tax, the tax is imposed as provided in this article, and beginning after the fiscal year in which the referendum is held, the homesteads are exempt from property taxes imposed in the county for operating purposes of the applicable political subdivision and the applicable class of property otherwise taxable in the county is authorized to receive a credit for property taxes for operating purposes of the applicable political subdivision. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the results no later than December thirty-first to the county governing body and to the Department of Revenue.
(D) Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
Section 4-10-750. (A) If the sales and use tax is approved in the referendum, the tax must be imposed by ordinance on the first of July following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.
(B) If the sales and use tax is not approved in the referendum, the county governing body by ordinance, or seven percent of the qualified electors of the county, by an initiated ordinance submitted to the governing body of the county, may provide for a subsequent referendum held in the manner provided pursuant to Section 4-10-740, but such a referendum may be held only at the time of the general election.
Section 4-10-760. (A) Upon petition of at least seven percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this article requesting that this tax be rescinded, the council shall direct the county election commission to conduct a referendum on the question of rescinding the sales and use tax. A referendum for this purpose must be held on the Tuesday following the first Monday in November following verification of the petition. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must the (rate) sales and use tax imposed in (county) be rescinded with the revenue not collected replaced by extending the property tax for operating purposes on (class of property) imposed by (political subdivision) previously not subject to property tax in this county?
(C)(1) All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'. If a majority of the votes cast are in favor of rescinding the tax, the tax is rescinded effective July first following the referendum and the applicable property taxes apply beginning after the year in which the referendum is held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council. If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
(2) Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county. If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years. If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years. The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year or the referendum must be held on the Tuesday following the first Monday of November of the following year.
Section 4-10-770. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36 of Title 12 shall identify the county in which the personal property purchased at retail is stored, used, or consumed in this State.
(D) Utilities shall report sales in the county in which the consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county, shall report separately in his sales tax return the total gross proceeds from business done in each county.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided for in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(G) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-780. (A) The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations.
(B) Revenues of the tax collected and deposited pursuant to subsection (A) of this section must be distributed by the county treasurer to the applicable political subdivisions located in the county. For counties in which there is more than one school district, the county treasurer shall distribute the revenues of the tax either: (1) in direct proportion to the one-hundred-thirty-five-day average daily membership as referenced in Section 59-20-40(1)(a) for each of the school districts for the fiscal year immediately preceding that in which a distribution is made, as certified by the State Treasurer, upon advice of the State Department of Education; (2) pursuant to a distribution plan unanimously agreed upon by all school districts within the county; or (3) pursuant to a distribution plan authorized by local act. For school districts that are composed of more than one county, the county treasurer shall distribute the revenues of the tax either: (1) to the portion of the school district that resides in the county that has adopted the provisions of this article in proportion to its one-hundred-thirty-five-day average daily membership as referenced in Section 59-20-40(1)(a) to the remainder of the school district; or (2) pursuant to a distribution plan authorized by agreement of the multiple counties comprising the school district through local act. For purposes of this section, the one-hundred-thirty-five-day average daily membership as referenced in Section 59-20-40(1)(a) excludes any student not residing in the county.
Section 4-10-790. The Board of Economic Advisors shall furnish data to the State Treasurer and to the applicable political subdivisions receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to political subdivisions upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240.
Section 4-10-800. Notwithstanding any other provision of law, but including the provisions in Section 6-1-320, a political subdivision receiving revenues of the tax authorized pursuant to this article must not impose an annual increase in property tax millage for operations on classifications of property that do not receive an exemption except in an amount of more than the percentage increase of the Southeastern Consumer Price Index, All Urban Consumers, as published by the Department of Labor, Bureau of Labor Statistics, from the previous fiscal year. Violations of this provision must result in the State Treasurer withholding (1) for political subdivisions, the funding provided by Aid to Subdivisions during the fiscal year in which the violation occurs, in an amount not to exceed one hundred fifty percent of the amount of excess revenues collected due to the violation or (2) for school districts, the funding provided by the Education Finance Act during the fiscal year in which the violation occurs, in an amount not to exceed one hundred fifty percent of the amount of excess revenues collected due to the violation.
Section 4-10-810. Where applicable, the actual expenditures of the sales and use tax collected pursuant to this article that are used for school operations and for a balance to a school operations reserve fund established pursuant to Section 4-10-820 must be considered, pursuant to the requirements of Section 59-21-1030, one of the local revenues used in computation of the required Education Improvement Act maintenance of local effort.
Section 4-10-820. (A) There is established in the county treasury the Property Tax Relief Fund Reserve (reserve) as a fund separate and distinct from all other funds. In each political subdivision's fiscal year, the revenues generated by a sales and use tax pursuant to Article 7, Chapter 10, Title 4 above the amount required for operations for the political subdivision's fiscal year must be credited to the reserve. Balances in the reserve at the end of a fiscal year remain in this reserve. If actual revenues of the sales and use tax imposed pursuant to Article 7, Chapter 10, Title 4 in a fiscal year are less than the amount required for operations for the political subdivision's fiscal year, then the county treasurer must apply so much of the reserve as is necessary or available to offset the deficit, with any balance paid from the reserve.
(B) If the monies in a political subdivision's reserve fund equal or exceed fifty percent of the amount of sales and use tax required for operations for a political subdivision's fiscal year, the county treasurer is authorized to distribute to the political subdivision the excess accumulated over the fifty percent amount, whether or not a deficit has occurred or whether or not this exceeds the millage limitations.
(C) Earnings on the political subdivision's reserve must be credited to the reserve."
SECTION 1. 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 that 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 2. Section 6-1-320(B) of the 1976 Code is amended to read:
"(B) Notwithstanding the limitation upon millage rate increases contained in subsection (A), the millage rate limitation may be suspended and the millage rate may be increased for the following purposes:
(1) in response to a natural, environmental, or other disaster as declared by the Governor;
(2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(3) to raise the revenue necessary to comply with judicial mandates requiring the use of county or municipal funds, personnel, facilities, or equipment;
(4) to meet the minimum required local Education Finance Act inflation factor as projected by the State Budget and Control Board, Division of Research and Statistics, and the per pupil maintenance of effort requirement of Section 59-21-1030, if applicable.
(1) the deficiency of the preceding year as required by Section 7, Article X of the South Carolina Constitution;
(2) any catastrophic event outside the control of the governing body such as a natural disaster, severe weather event, act of God, or act of terrorism, fire, war, or riot;
(3) compliance with a court order or decree;
(4) taxpayer closure due to circumstances outside the control of the governing body that decreases by ten percent or more the amount of revenue payable to the taxing jurisdiction in the preceding year; or
(5) compliance with a regulation promulgated or statute enacted by the federal or state government after the ratification date of this section for which an appropriation or a method for obtaining an appropriation is not provided by the federal or state government.
The amount of tax for each taxpayer must be listed on the tax statement as a separate surcharge, for each aforementioned applicable subitem, and not be included with a general millage increase. Each separate surcharge must have an explanation of the reason for the surcharge. The surcharge must be continued only for the years necessary to pay for the deficiency, for the catastrophic event, or for compliance with the court order or decree."
SECTION 3. A. Section 12-45-75 of the 1976 Code is amended to read:
"Section 12-45-75. (A)(1) The governing body of a county may by ordinance must allow a each taxpayer owning a parcel of taxable real property within the county the option to elect to pay property taxes in installments as provided in this section. pay all ad valorem taxes on real property located in the county in quarterly or monthly installments. An installment election is not allowed for taxes paid through an escrow account.
(2) The ordinance must specify the installment due dates and it may provide for installments due and payable before January fifteenth, but the final installment due date must be January fifteenth. The ordinance may provide for a service charge of not more than two dollars on installment payments. For purposes of payment and collection, these service charges are deemed property taxes. The ordinance may not provide penalties for late installments. A taxpayer electing to pay ad valorem taxes in installments or electing to opt out of paying in installments, must notify the county treasurer in writing no later than January fifteenth of the tax year for which the installment payments are applicable, and no earlier than December first of the preceding tax year. If the treasurer does not receive written notification from December first to January fifteenth, the taxpayer must pay ad valorem taxes in the same manner as the previous taxable year.
(3) The treasurer must notify the county auditor and county assessor of each taxpayer electing the installment payment option or electing to opt out of paying in installments. If the county assessor determines the property has diminished in value, an estimated property tax obligation must be adjusted to reflect the reduced value. Upon being notified of an adjustment for reduced value from the assessor, the county treasurer must notify the property owner of the adjusted estimated property tax obligation.
(B) The governing body of a county may by ordinance provide a discount in all ad valorem taxes on real property located in the county paid in advance of the January fifteenth due date. The ordinance may provide a range of discounts that vary according to the length of the prepayment period. An installment payment is based on the total property tax due for the previous property tax year, after applying all applicable credits and adjustments reflecting reduced value as determined by the county assessor. An amount equal to sixteen and two-thirds percent of the estimated property tax obligation must be paid to the county treasurer in each of five installments according to the following schedule:
In the case of the following estimates, the due date is on or before:
First February 15
Second April 15
Third June 15
Fourth August 15
Fifth October 15
The remaining balance is due on or before January fifteenth of the following taxable year in accordance with Section 12-45-70. The treasurer must notify the county auditor of the amount of a property owner's payments received no earlier than October fifteenth and no later than November fifteenth. A notice of the remaining tax due and other authorized charges and information must then be prepared and mailed to the property owner.
(C) If a taxpayer electing to pay in installments does not timely make each payment pursuant to the schedule in subsection (B), the county may refuse to accept all other installment payments. If the county refuses to accept other installment payments, the remaining balance is due in accordance with Section 12-45-70.
(D) Estimated property taxes paid in installments during a property tax year are a credit against the total property tax due on the real property for the property tax year. The estimated property taxes paid in installments during a property tax year must be deposited by the county treasurer in an interest bearing account. The interest is to be retained by the treasurer to offset the administrative expenses of installment payments. Once final payment is made, and no later than January fifteenth of the following taxable year, the installment payments must be credited to the accounts of property taxing entities in the county in the same proportion that millage was imposed by such entities in the previous tax year with the necessary adjustments made to reflect current tax year millage impositions when property taxes for the current year are paid.
(E) If the credit allowed for estimated property tax paid during the property tax year results in an overpayment of property tax, the overpayment must be refunded to the taxpayer together with the actual interest earned by the county treasurer, running from the later of the due date of the installment resulting in the overpayment, without regard to additional amounts paid, or the actual date the overpayment was received by the county treasurer, to the date the refund is issued. Except that if the overpayment is issued to the taxpayer within forty-five days of the installment payment that resulted in the overpayment, the treasurer may retain the interest earned.
(F) Every tax notice for real property, for which the installment payment option has been elected, must contain a calculation of any estimated property tax due and a payment schedule and return envelopes for these payments.
(G) The payment of estimated property tax as provided in this section and the credit allowed arising from these payments in no way alters the due date, penalty schedule, and enforced collection of property taxes as provided by law."
B. Each county treasurer shall report to the General Assembly on the impact and implementation of this act no later than sixty days after January 15, 2009. The report shall include, but is not limited to, the costs incurred, the interest retained, and the number of individuals electing to pay ad valorem taxes in installments.
Severability
SECTION 1. If any section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
Effective Dates
SECTION 1. (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 October 1, 2006.
(2) The provisions of Article 7, Chapter 10, Title 4 take effect upon approval by the Governor.
(3) The provisions of Section 12-45-75 take effect upon approval by the Governor and apply for real property tax years beginning after 2006.
(4) All other provisions take effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
Senator KNOTTS proposed the following Amendment No. 10 (GJK\ 21122SD06), which was tabled:
Amend the bill, as and if amended, by adding a new SECTION appropriately numbered to read:
/SECTION ___. A. Article 21, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-2645. For purposes of determining the appropriate assessment ratio used in the calculation of the assessed value of a motor vehicle and for defining those motor vehicles subject to the assessment ratios provided in Section 1(8)(B)(1) of Article X of the Constitution of this State, the definition of 'private passenger motor vehicle' provided in Section 56-3-630 applies except that in the case of pickup trucks, the empty weight and gross weight limits provided in that definition are increased respectively to nine thousand pounds or less and eleven thousand pounds or less.
B. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) A percentage of the fair market value of a motorcycle not used in a trade or business sufficient to produce an assessed value of the motorcycle equal to the assessed value that would apply if the motorcycle were included in the definition of private passenger motor vehicle provided in Section 12-37-2645."
C. This section takes effect upon approval by the Governor and applies with respect to motor vehicle tax years beginning after the last day of the second month following the month in which this act was approved by the Governor. /
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Senator KNOTTS explained the amendment.
Senator RICHARDSON moved to lay the amendment on the table.
The amendment was laid on the table.
Senator KNOTTS proposed the following Amendment No. 12A (AGM\18324MM06), which was not adopted:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION . Section 12-37-220(B) of the 1976 Code, as last amended by Act 161 of 2005, is further amended by adding an appropriately numbed item at the end to read:
"( )(a) Beginning in the year in which this item takes effect and to the extent not already exempt pursuant to another provision of law, one hundred percent of the fair market values of owner-occupied residential property eligible for receiving the special assessment ratio allowed owner-occupied residential property pursuant to Section 12-43-220(c) is exempt from all property taxes imposed for other than the repayment of general obligation debt, if the owner of the residence demonstrates evidence that he is sixty-five years of age or older, has been a resident of this State for at least five years, and has filed a South Carolina income tax return, with appropriate payments, for the last five years.
(b) Notwithstanding another provision of law, property exempted from property tax in the manner provided in this item is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State." /
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Senator KNOTTS explained the amendment.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Bryant Courson Cromer Elliott Fair Grooms Hawkins Knotts Malloy McConnell Mescher Peeler Reese Richardson Ryberg Setzler Thomas Verdin
Alexander Campsen Ford Hayes Hutto Jackson Land Leatherman Leventis Lourie Martin Matthews McGill O'Dell Patterson Ritchie Sheheen Short Williams
The amendment was not adopted.
While it is a lofty goal to eliminate all property tax on homes for those who are over sixty-five years of age, it comes at the cost of almost wiping out the property tax relief for all owner-occupied property otherwise provided for in the Bill. This is unacceptable to trade the over 200 million dollar relief, as projected by the Board of Economic Advisors, to meet this goal.
We voted against Amendment #12A to H.4449 because of the tremendous negative impact that adoption would have on a previously adopted amendment that offers property tax relief to all homeowners across the State. The adoption of Amendment No. 12A would have decreased the relief for all homeowners from $335 million to $41 million, or a decrease of over seven times compared to the property tax relief we proudly voted for earlier. Throughout our Senate careers, we have always been in favor of helping our senior citizens in every way possible. We feel that our senior citizens are the very people who have built South Carolina into the great State that we all enjoy living in. Our records will show that we are friends of senior citizens, constantly supporting senior citizens issues, Medicaid funding increases, senior citizens center construction throughout the State, and many, many other issues that affect our senior citizens.
Senators CAMPSEN and RITCHIE proposed the following Amendment No. 27 (JUD4449.075), which was carried over:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION ___. Section 12-37-220(B) is amended by adding an appropriately numbered item to read:
"( ) If a local option sales and use tax is imposed in a county, then to the extent not already exempt, one hundred percent of the assessed value of the homestead is exempt from property tax for operations, excluding payments for bonded indebtedness. For the other applicable class or classes of property in the county, the sales and use tax shall be credited to the applicable class of property."
Amend the bill further, as and if amended, by striking Section 4-10-730(A) in PART II in its entirety, and inserting therein the following:
(A)(1) Subject to the requirements of this article, the governing body of the county by a county council ordinance or by an initiated ordinance submitted to the governing body of the county by a petition signed by qualified electors of the county, equal in number to at least seven percent of the qualified electors of the county, may impose a sales and use tax in increments of one-tenth of one percent, subject to referendum approval in order to wholly exempt from property tax homesteads or to authorize credits to one or more classes of property from property tax imposed by a political subdivision. An ordinance must be enacted or a petition initiating an ordinance must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year.
(2) The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace property tax revenue in the county for the affected political subdivisions and school districts in the most recently completed fiscal year and in the case of school districts, must take into account payments to school districts pursuant to the exemption allowed pursuant to Sections 12-37-250 and 12-37-251.
(3) Any additional sales and use tax imposed pursuant to this article does not apply to:
(a) amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients;
(b) items subject to a maximum sales and use tax pursuant to Section 12-36-2110; and
(c) unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons.
(4) If the county or municipality within the county has enacted a tax increment financing redevelopment plan, or other financing plan that relies upon an increase of property tax growth to pay for project costs, the rate of tax must be set in an amount that must consider full funding for the project for the amount that the sales tax would substitute for the property tax growth payments.
(5) The governing body of the county shall obtain from ORS after ORS has obtained all information necessary to provide such estimate, a certified estimate of the rate of sales and use tax necessary in the county to equal the property tax not collected, and for the amount, if applicable, for the funding replacement for the tax increment financing redevelopment plan or other financing plan that relies upon property tax growth for its funding. This certified rate is the rate of tax that must appear in the referendum question.
(6) A qualified elector of the county desiring to circulate a petition shall file a written request with the governing body providing the class or classes of property and the property tax which are the subject of the petition and the governing body shall forward the request to ORS, which shall design the petition form in consultation with the State Election Commission and calculate and certify the tax rate necessary to provide the exemptions provided in the petition. The petition form and a copy of the certification must be forwarded to the governing body of the county and the governing body shall provide the petition form to the qualified elector requesting the petition form.
(7) If competing petitions are timely filed with the governing body of the county and the signatures verified, the governing body may determine which petition initiated ordinance shall go on the ballot or it may substitute its own ordinance in lieu of any petition initiated ordinance.
Amend the bill further, as and if amended, by striking Section 4-10-820(B) in PART II in its entirety, and inserting therein the following:
(B) If the monies in a political subdivision's reserve fund equal or exceed fifty percent of the amount of sales and use tax required for operations for a political subdivision's fiscal year, the county treasurer is authorized to distribute to the political subdivision the excess accumulated over the fifty percent amount for reduction in the bonded indebtedness of the political subdivision. /
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Senator RITCHIE explained the amendment.
On motion of Senator RITCHIE, the amendment was carried over.
Senator RITCHIE asked unanimous consent to make a motion to take up Amendment No. 27 on third reading, waiving the provisions of Rule 26B.
There was no objection.
Senator THOMAS proposed the following Amendment No. 17 (4449R020.DLT), which was tabled:
Amend the bill, as and if amended, by adding an appropriately numbered new SECTION to read:
/ SECTION ___. Notwithstanding any other provision of law, no county may conduct a countywide reassessment and equalization program, nor implement the values determined in a countywide assessment and equalization program conducted prior to the effective date of this act, until after tax year 2007. /
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Senator THOMAS explained the amendment.
Senator LEATHERMAN moved to lay the amendment on the table.
The amendment was laid on the table.
Senator JACKSON asked unanimous consent to make a motion to withdraw any remaining amendments and proceed to the question of second reading of the Bill.
Senator KNOTTS objected.
Senator THOMAS proposed the following Amendment No. 20 (AGM\18373MM06), which was tabled:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION . Chapter 27 of Title 11 is amended by adding:
"Section 11-27-115. If a bonding attorney or bonding advisory service advises or oversees the bonding of a South Carolina government entity subject to the South Carolina constitutional eight percent bonding indebtedness limitation and (i) the bonds that are issued to engage in construction of facilities are incapable of being paid by the income stream in the future, and (ii) the bonding attorney or advisory service knew, should have known, or reasonably should have foreseen that the income stream would be insufficient to meet the payments, then the bonding attorney or the bonding advisory service is liable for the damages resulting from the entity's inability to pay the indebtedness." /
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Senator THOMAS explained the amendment.
Senator LAND moved to lay the amendment on the table.
The amendment was laid on the table.
Senators THOMAS and FAIR proposed the following Amendment No. 25 (SWB\6893MM06), which was tabled:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION ___. 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. /
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Senator THOMAS explained the amendment.
Senator SHEHEEN moved to lay the amendment on the table.
The amendment was laid on the table.
Senator VERDIN desired to be recorded as voting against the motion to table the amendment.
Senators KNOTTS, GROOMS and FAIR proposed the following Amendment No. 28 (SWB\6894MM06), which was withdrawn:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION __. Chapter 37 of Title 12 of the 1976 Code is amended by adding:
"Section 12-37-221. The owner of an owner-occupied residence who is over the age of sixty-five years and whose household income is under one hundred fifty thousand dollars is allowed a tax credit against the property tax payable on the owner-occupied residence in an amount that represents prior taxes paid on that residence by that owner, to be applied dollar for dollar against property taxes due and payable in the future./
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Senator KNOTTS explained the amendment.
On motion of Senator KNOTTS, the amendment was withdrawn.
There being no further amendments, the question then was the second reading of the Bill.
Senator SHEHEEN spoke on the Bill.
Senator LEVENTIS spoke on the Bill.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
Having received a favorable report from the Dillon County Delegation, the following appointment was confirmed in open session:
Initial Appointment, Dillon County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
Tessa R. Jackson, 332 Dixie Court, P. O. Box 525, Dillon, S.C. 29536 VICE Robert Abson
Having received a favorable report from the Horry County Delegation, the following appointment was confirmed in open session:
Reappointment, Myrtle Beach Air Force Base Redevelopment Authority, with term to commence June 30, 2006, and to expire June 30, 2010
Delegation:
Charles A. Stuart, 7878 Old Reaves Ferry Road, Conway, S.C. 29526
Having received a favorable report from the Richland County Delegation, the following appointments were confirmed in open session:
Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Rebecca McDuffie Brown, 8 Crossland Lane, Columbia, S.C. 29223
Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Elizabeth Cromer Epps, 2119 Dalloz Road, Columbia, S.C. 29204
Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Deanne C. Jolly, 7421 Parkview Drive, Columbia, S.C. 29223
Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Lillian A. McBride, 545 Trader Mill Road, Columbia, S.C. 29223
Initial Appointment, Richland County Board of Voter Registration, with term to commence March 15, 2006, and to expire March 15, 2008
At-Large:
Lenora D. McCarty, 4405 Ryan Avenue, Columbia, S.C. 29203 VICE Gloria Wilson
On motion of Senator VERDIN, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. Patrick M. McNamara of Greenville, S.C., who lost his life in a motorcycle accident on April 28, 2006.
At 8:40 P.M., on motion of Senator LEATHERMAN, the Senate adjourned to meet tomorrow at 11:00 A.M. under the provisions of Rule 1 for the purpose of taking up local matters and uncontested matters which have previously received unanimous consent to be taken up.
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