Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 10:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.
A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:
Beloved, remembering the Confederacy years, 1860-65, hear words from Psalm 118:1-4:
"Give thanks to the Lord, for He is good; His love endures forever. Let those who fear the Lord say: 'His loves endures forever'."
Let us pray.
Father, as we look back upon the sad, sad years of the Confederacy, we thank You for preserving us as "One Nation Under God" and pray as we face an uncertain future. Be with us to refresh us - around us to protect us - before us to guide us - above us to bless us - beneath us to uphold us - who liveth and reigneth, one God, world without end.
Amen!
The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
Senator THOMAS introduced Dr. Ted A. Watson of Greenville, S.C., Doctor of the Day.
On motion of Senator RANKIN, at 10:05 A.M., Senator McGILL was granted a leave of absence for today.
On motion of Senator HAYES, with unanimous consent, Senators ANDERSON, SCOTT and HAYES were granted leave to attend a subcommittee meeting, be counted in any quorum calls and were granted leave to vote from the balcony.
H. 4951 (Word version) -- Rep. Cobb-Hunter: A BILL TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO PROVIDE THAT IN A COUNTY OF AT LEAST ONE-THOUSAND SQUARE MILES IN SIZE AND WHICH HAS HAD AN UNEMPLOYMENT RATE GREATER THAN THE STATE AVERAGE AND AN AVERAGE PER CAPITA LOWER THAN THE STATE AVERAGE PER CAPITA INCOME FOR THE PAST TEN YEARS AND WHICH IS OTHERWISE NOT ELIGIBLE FOR ANY SPECIAL CLASSIFICATION, THE TARGETED JOBS TAX CREDIT ALLOWED IN THE COUNTY IS TWO TIERS HIGHER THAN THE CREDIT FOR WHICH THE COUNTY WOULD OTHERWISE QUALIFY.
Senator HUTTO asked unanimous consent to make a motion to recall the Bill from the Committee on Finance.
There was no objection.
The Bill was recalled from the Committee on Finance.
Senator HUTTO asked unanimous consent to take the Bill up for immediate consideration.
There was no objection.
The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
Senator HUTTO asked unanimous consent to give the Bill as second reading.
There was no objection and the Bill was read the second time.
On motion of Senator HUTTO, with unanimous consent, H. 4951 was ordered to receive a third reading on Thursday, May 11, 2006.
The following were introduced:
S. 1407 (Word version) -- Senator Knotts: A SENATE RESOLUTION TO RECOGNIZE AND HONOR TREY BOLDING OF LEXINGTON COUNTY FOR BEING SELECTED BY THE ARTS COMMISSION CONSULTANT FOR VSA ACCESSIBILITY IN THE ARTS AND TO COMMEND HIM FOR ALL THE ARTWORK HE HAS CREATED AND AWARDS HE HAS WON WHILE COURAGEOUSLY BATTLING HEMOPHILIA.
l:\council\bills\swb\6896cm06.doc
The Senate Resolution was adopted.
S. 1408 (Word version) -- Senator Drummond: A JOINT RESOLUTION TO PROVIDE FOR THE CREATION OF THE SOUTH CAROLINA STATE AND LOCAL TAX STUDY COMMITTEE TO REVIEW STATE AND LOCAL TAXES, TO MAKE RECOMMENDATIONS FOR A RESTRUCTURING OF TAX METHODS USED IN THIS STATE.
l:\s-res\jwd\003taxs.dag.doc
Read the first time and referred to the Committee on Finance.
S. 1409 (Word version) -- Senator Ford: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR THE REVEREND EDWARD A. MCCLAIN, JR. OF CHARLESTON COUNTY FOR HIS LIFETIME COMMITMENT AND DEDICATION TO COMMUNITY SERVICE.
l:\council\bills\agm\18479mm06.doc
The Concurrent Resolution was adopted, ordered sent to the House.
S. 1410 (Word version) -- Senator Patterson: A SENATE RESOLUTION TO RECOGNIZE AND COMMEND MS. KAROL GAIL REMBERT OF RICHLAND COUNTY FOR DEVOTING THIRTY-FOUR YEARS OF SERVICE TO THE STATE OF SOUTH CAROLINA AS A SOCIAL WORKER UPON THE OCCASION OF HER RETIREMENT AND TO EXTEND TO HER EVERY BEST WISH FOR A HAPPY AND ENJOYABLE RETIREMENT.
l:\council\bills\swb\6899cm06.doc
The Senate Resolution was adopted.
S. 1411 (Word version) -- Senator Knotts: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR STAFF SERGEANT ROBERT O. BROWN OF IRMO WHO WAS AWARDED THE BRONZE STAR FOR EXCEPTIONALLY MERITORIOUS SERVICE AND HEROIC ACTIONS DURING OPERATION IRAQI FREEDOM.
l:\council\bills\nbd\12524ac06.doc
The Concurrent Resolution was adopted, ordered sent to the House.
S. 1412 (Word version) -- Senator Lourie: A SENATE RESOLUTION TO RECOGNIZE AND HONOR MARTHA R. ROBERTS OF RICHLAND COUNTY FOR HER OUTSTANDING COMMITMENT AND DEDICATION TO THE EDUCATION OF SOUTH CAROLINA'S YOUTH AND TO WISH HER ALL THE BEST UPON HER RETIREMENT.
l:\council\bills\nbd\12517ac06.doc
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.
Returned with concurrence.
Received as information.
S. 1409 (Word version) -- Senator Ford: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR THE REVEREND EDWARD A. MCCLAIN, JR., OF CHARLESTON COUNTY, FOR HIS LIFETIME COMMITMENT AND DEDICATION TO COMMUNITY SERVICE.
Returned with concurrence.
Received as information.
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.
The following Bill was read the third time and, having received three readings in both Houses, it was ordered that the title be changed to that of an Act and enrolled for Ratification:
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.
The following Bills were read the third time and ordered sent to the House of Representatives:
S. 1261 (Word version) -- Senators Verdin, Knotts, Mescher, Alexander, Grooms, Bryant, Peeler, Campsen, Leatherman, McConnell and Ryberg: 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.
S. 1386 (Word version) -- Senator Alexander: A BILL TO AMEND ACT 613 OF 1992, AS AMENDED, RELATING TO THE OCONEE COUNTY SUPERINTENDENT OF EDUCATION AND BOARD OF EDUCATION, SO AS TO PROVIDE THAT THE SUPERINTENDENT OF EDUCATION MUST BE ELECTED IN A NONPARTISAN ELECTION FOR A TERM OF TWO YEARS; TO PROVIDE THAT THE LEGISLATIVE DELEGATION MAY APPOINT A NEW SUPERINTENDENT IN THE EVENT OF A VACANCY; TO PROVIDE THAT THE CURRENT SUPERINTENDENT OF EDUCATION SHALL CONTINUE TO SERVE THROUGH JUNE 30, 2007; TO PROVIDE THAT THE OCONEE LEGISLATIVE DELEGATION MAY APPOINT THE SUPERINTENDENT OF EDUCATION IF NO PERSON QUALIFIES AS A CANDIDATE; TO PROVIDE THAT THE DUTIES AND COMPENSATION OF THE OCONEE COUNTY SUPERINTENDENT OF EDUCATION MUST BE DETERMINED BY THE DELEGATION; AND TO PROVIDE FOR AN ADVISORY REFERENDUM IN OCONEE COUNTY RELATING TO WHETHER THE OFFICE OF THE ELECTED SUPERINTENDENT OF EDUCATION OF OCONEE COUNTY SHOULD BE ABOLISHED AND TO PROVIDE FOR CERTIFICATION OF REFERENDUM RESULTS AND COSTS.
By prior motion of Senator ALEXANDER
The following Bill, having been read the second time, was ordered placed on the Third Reading Calendar:
H. 5088 (Word version) -- Reps. Sandifer, Whitmire and Martin: A BILL TO AMEND ACT 613 OF 1992, AS AMENDED, RELATING TO THE OCONEE COUNTY SUPERINTENDENT OF EDUCATION AND BOARD OF EDUCATION, SO AS TO PROVIDE THAT THE SUPERINTENDENT OF EDUCATION MUST BE ELECTED IN A NONPARTISAN ELECTION FOR A TERM OF TWO YEARS; TO PROVIDE THAT THE LEGISLATIVE DELEGATION MAY APPOINT A NEW SUPERINTENDENT IN THE EVENT OF A VACANCY; TO PROVIDE THAT THE CURRENT SUPERINTENDENT OF EDUCATION SHALL CONTINUE TO SERVE THROUGH JUNE 30, 2007; TO PROVIDE THAT THE OCONEE LEGISLATIVE DELEGATION MAY APPOINT THE SUPERINTENDENT OF EDUCATION IF NO PERSON QUALIFIES AS A CANDIDATE; TO PROVIDE THAT THE DUTIES AND COMPENSATION OF THE OCONEE COUNTY SUPERINTENDENT OF EDUCATION MUST BE DETERMINED BY THE DELEGATION; AND TO PROVIDE FOR AN ADVISORY REFERENDUM IN OCONEE COUNTY RELATING TO WHETHER THE OFFICE OF THE ELECTED SUPERINTENDENT OF EDUCATION OF OCONEE COUNTY SHOULD BE ABOLISHED AND TO PROVIDE FOR CERTIFICATION OF REFERENDUM RESULTS AND COSTS.
By prior motion of Senator ALEXANDER
H. 4965 (Word version) -- Reps. Loftis, Pinson, Hardwick, Barfield, Bannister, Ceips, Clark, Clemmons, Coates, Davenport, Duncan, Edge, Frye, Hamilton, Harrison, Haskins, Hiott, Mahaffey, Merrill, Norman, Owens, Perry, M.A. Pitts, Sandifer, Scarborough, F.N. Smith, Stewart, Talley, Walker, Witherspoon, Young, Mitchell, McLeod, Leach, Altman and Harrell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-17-525 SO AS TO MAKE IT UNLAWFUL FOR A PERSON TO WILFULLY OR MALICIOUSLY DISTURB OR INTERRUPT A FUNERAL SERVICE AND TO PROVIDE PENALTIES.
The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
Senator HAWKINS proposed the following amendment (JUD4965.001), which was adopted:
Amend the bill, as and if amended, page 1, by striking SECTION 1 in its entirety and inserting:
/ SECTION 1. Chapter 17, Title 16 of the 1976 Code is amended by adding:
"Section 16-17-525. (A) It is unlawful for a person to wilfully, knowingly, or maliciously disturb or interrupt a funeral service. A person who violates this subsection is guilty of a misdemeanor and, upon conviction, shall be fined not more than five hundred dollars or imprisoned not more than thirty days. This subsection applies to a willful, knowing, or malicious disturbance or interruption within:
(1) one thousand feet of the funeral service; and
(2) a time period of one-half hour before the funeral service until one-half hour after the funeral service.
(B) It is unlawful for a person to undertake an activity at a public or privately owned cemetery, other than the decorous participation in a funeral service or visitation of a burial space, without the prior written approval of the public or private owner. A person who violates this subsection is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned not more than thirty days.
(C) For purposes of this section, 'funeral service' means any ceremony, procession, or memorial held in connection with the memorialization, burial, cremation, or other disposition of a deceased person's body." /
Renumber sections to conform.
Amend title to conform.
Senator HAWKINS explained the amendment.
The amendment was adopted.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
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 second reading of the Bill.
Senator MOORE proposed the following amendment (JUD4428.002), which was adopted:
Amend the committee report, as and if amended, page [4428-10], line 25, in Section 58-12-330(G), as contained in SECTION 4, by striking line 25 and inserting therein:
/ rights-of-way with regard to a cable system. /
Renumber sections to conform.
Amend title to conform.
The amendment was adopted.
Senator MOORE proposed the following amendment (JUD4428.009), which was adopted:
Amend the bill, as and if amended, page 16, by striking line 6 and inserting:
/ cure the noncompliance.
Section 58-12-395. Nothing in this article affects the ability of a county or municipality to carry out its emergency preparedness responsibilities pursuant to Section 25-1-450(2) or its emergency alert system responsibilities pursuant to 47 CFR Part 11. /
Renumber sections to conform.
Amend title to conform.
The amendment was adopted.
Senator MALLOY proposed the following amendment (JUD4428.013), which was adopted:
Amend the bill, as and if amended, page 11, by striking lines 18-29 and inserting:
/ At the request of the municipality or county, the parties shall participate in mediation governed by procedures established in the South Carolina Circuit Court Alternative Dispute Resolution Rules that are in effect at the time for the State or for any portion of the State. 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 or the county may initiate nonbinding mediation. The mediation must be conducted in accordance with the South Carolina Circuit Court Alternative Dispute Resolution Rules that are in effect at the time for the State or for any portion of the State and must take place at a mutually agreeable time and location. /
Renumber sections to conform.
Amend title to conform.
Senator MALLOY explained the amendment.
The amendment was adopted.
Senator MALLOY proposed the following amendment (JUD4428.010), which was laid on the table:
Amend the bill, as and if amended, page 16, beginning on line 13, in Section 58-12-400, as contained in SECTION 4, by striking lines 13-19 and inserting:
/ (B) In addition to the above, each holder of a state-issued certificate of franchise authority must, in addition to the broadcast television signals it is require to carry by law or other programming or signals it may agree to carry, 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 this purpose, for the transmissions of a noncommercial education C-SPAN-style service dedicated to coverage of the South Carolina General Assembly, such as the Educational Television Commission's South Carolina Channel. This channel to be made available for this purpose must be a full-time, dedicated channel located on the tier of programming services containing basic broadcast station signals and must be provided to subscribers at no additional fee. /
Renumber sections to conform.
Amend title to conform.
Senator MALLOY explained the amendment.
Senator HUTTO moved to lay the amendment on the table.
The amendment was laid on the table.
Senator MALLOY proposed the following amendment (JUD4428.011), which was subsequently withdrawn:
Amend the bill, as and if amended, page 16, after line 24, by adding an appropriately numbered new SECTION to read:
/ SECTION ___. If the United States Congress enacts legislation or if a federal agency promulgates regulations that would allow cable service subscribers to select the channels they wish to include with their cable services on an a la carte basis, cable service operators offering services in this State must offer a la carte subscription to their subscribers. /
Renumber sections to conform.
Amend title to conform.
Senator MALLOY explained the amendment.
On motion of Senator MALLOY, with unanimous consent, the amendment was withdrawn.
Senator MALLOY proposed the following amendment (JUD4428.015), which was adopted:
Amend the bill, as and if amended, page 15, by striking line 11 and inserting:
/ the information supporting the complaint. At the request of the potential residential subscriber or group of residential subscribers, the parties shall participate in mediation governed by procedures established in the South Carolina Circuit Court Alternative Dispute Resolution Rules that are in effect at the time for the State or for any portion of the State. If requested by the /
Renumber sections to conform.
Amend title to conform.
Senator MALLOY explained the amendment.
The amendment was adopted.
Senator MALLOY proposed the following amendment (JUD4428.018), which was adopted:
Amend the bill, as and if amended, beginning on page 7, line 39, by striking subsections (G), (H), (I), and (J) of Section 58-12-310 as contained in SECTION 4 and inserting therein the following:
/ (G) A holder of a state-issued certificate of franchise authority shall comply with any applicable federal law or regulation addressing a-la-carte programming options.
(H) 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.
(I) 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.
(J) 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.
(K) 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. /
Renumber sections to conform.
Amend title to conform.
Senator MALLOY explained the amendment.
The amendment was adopted.
Senators MALLOY and MOORE proposed the following amendment (JUD4428.019), which was adopted:
Amend the bill, as and if amended, page 10, beginning on line 15, by striking lines 15-16 and inserting:
/ state law. /
Renumber sections to conform.
Amend title to conform.
Senator MALLOY explained the amendment.
The amendment was adopted.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
On motion of Senator MALLOY, with unanimous consent, H. 4428 was ordered to receive a third reading on Thursday, May 11, 2006.
H. 4450 (Word version) -- Reps. Cotty, Harrell, Merrill, Walker, Ballentine, Haley, Chellis, E.H. Pitts, Townsend, Clark, Altman, Bailey, Bales, Bingham, Bowers, Brady, Cato, Ceips, Clyburn, Coleman, Cooper, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Hagood, Harrison, Haskins, Herbkersman, Hinson, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mahaffey, Martin, Phillips, Pinson, M.A. Pitts, Rhoad, Sandifer, Scarborough, G.M. Smith, J.R. Smith, Thompson, Toole, Tripp, Umphlett, Vaughn, White, Whitmire, Young, W.D. Smith, Kirsh, Huggins, Hamilton, McGee and Stewart: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO FINANCE AND TAXATION, BY ADDING A NEW SECTION 1A SO AS TO PROVIDE THAT FAIR MARKET VALUE OF REAL PROPERTY FOR PURPOSES OF PROPERTY TAX MEANS ITS FAIR MARKET VALUE WHEN OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, INCREASED BY THE FAIR MARKET VALUE OF IMPROVEMENTS TO THE REAL PROPERTY SINCE OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW MAY DEFINE AN OWNERSHIP TRANSFER AND AN IMPROVEMENT TO REAL PROPERTY, AND MAY ESTABLISH A BASE YEAR FOR DETERMINING INITIAL FAIR MARKET VALUE FOR PURPOSES OF THIS NEW SECTION; AND TO AMEND SECTION 3, ARTICLE X, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PROVIDE AN ADDITIONAL EXEMPTION FROM PROPERTY TAX EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF A HOMESTEAD AS PRESCRIBED BY THE GENERAL ASSEMBLY BY LAW, AND TO PROVIDE THAT THIS ADDITIONAL EXEMPTION DOES NOT APPLY WITH RESPECT TO PROPERTY TAX IMPOSED FOR PAYMENT OF GENERAL OBLIGATION DEBT.
The Senate proceeded to a consideration of the Joint Resolution, the question being the second reading of the Joint Resolution.
Senators RITCHIE and McCONNELL proposed the following Amendment No. 1 (JUD4450.005):
Amend the joint resolution, as and if amended, by striking the joint resolution in its entirety and inserting the following:
PROPOSING AN AMENDMENT TO SECTION 29, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE LEGISLATIVE DEPARTMENT, SO AS TO PROVIDE THAT TAXES UPON REAL PROPERTY MUST BE ASSESSED IN ACCORDANCE WITH THE METHODS AS PROVIDED BY THE GENERAL ASSEMBLY IN ARTICLE X OF THE STATE CONSTITUTION; TO AMEND SECTIONS 1 AND 3 OF ARTICLE X, RELATING TO FINANCE AND TAXATION, SO AS TO PROVIDE THAT THE REQUIREMENT THAT TAXATION OF REAL PROPERTY MUST BE UNIFORM APPLIES TO PROPERTY WITHIN A TAXING JURISDICTION RATHER THAN STATEWIDE; TO AMEND SECTION 6 OF ARTICLE X, SO AS TO PROVIDE THAT THE GENERAL ASSEMBLY SHALL ESTABLISH METHODS OF VALUATION FOR COUNTIES TO SELECT FROM FOR ASSESSMENT OF REAL PROPERTY WITHIN THEIR JURISDICTIONS, AND TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW SHALL PROVIDE FOR THE TERMS, CONDITIONS, AND PROCEDURES TO IMPLEMENT THE ABOVE PROVISIONS; AND TO AMEND SECTION 3, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO ALLOW A COUNTY GOVERNING BODY TO IMPOSE A SALES AND USE TAX LEVIED FOR OPERATIONAL EXPENDITURES IN ANY POLITICAL SUBDIVISION LOCATED IN WHOLE OR IN PART WITHIN THE COUNTY TO PROVIDE HOMESTEADS WITHIN THE COUNTY A ONE HUNDRED PERCENT EXEMPTION FOR PROPERTY TAXES AND TO ALLOW CREDITS TO OTHER CLASSIFICATIONS OF PROPERTY FOR PROPERTY TAXES, AND TO ALLOW THIS EXEMPTION OR CREDIT PURSUANT ONLY TO A REFERENDUM HELD IN A COUNTY IN THE MANNER THAT THE GENERAL ASSEMBLY PROVIDES BY LAW.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. It is proposed that Section 29 of Article III of the Constitution of this State be amended to read:
"Section 29. All taxes upon property, real and personal, shall be laid upon the actual value of the property taxed, as the same shall be ascertained by an assessment made for the purpose of laying such tax. Taxes on personal property must be laid upon the actual value of the property taxed, as the same shall be ascertained by an assessment made for the purpose of laying such tax. Taxes on real property must be ascertained by the methods provided by the General Assembly as general law as prescribed in Article X of this Constitution."
B. It is proposed that the first paragraph of Section 1 of Article X of the Constitution of this State be amended to read:
"Section 1. The General Assembly may provide for the ad valorem taxation by the State or any of its subdivisions of all real and personal property. The assessment of all property shall be equal and uniform within the class of property being taxed and within its taxing jurisdiction in the following classifications:"
C. It is proposed that the penultimate paragraph of Section 3 of Article X of the Constitution of this State be amended to read:
"The exemptions provided in subitems (c) and (d) for real property shall not extend beyond the buildings and premises actually occupied by the owners of such real property. Homestead exemptions from ad valorem taxation not specifically provided for in this section may be provided for by the General Assembly by general law. In addition to the exemptions listed in this section, the General Assembly may provide for exemptions from the property tax, by general laws applicable uniformly to property throughout the State and in all political subdivisions, but only with the approval of two-thirds of the members of each House. All exemptions not specifically provided for or authorized in this article shall be repealed March 1, 1978. The General Assembly shall provide for methods and procedures in applying for the exemption of any property as is described in this section."
D. It is proposed that Section 6 of Article X of the Constitution of this State be amended to read:
"Section 6. The Except as otherwise provided in this section, the General Assembly may vest the power of assessing and collecting taxes in all of the political subdivisions of the State, including counties, municipalities, special purpose districts, public service districts, and school districts. Property tax levies shall be uniform in respect to persons and property within the jurisdiction of the body imposing such taxes; provided, that on properties located in an area receiving special benefits from the taxes collected, special levies may be permitted by general law applicable to the same type of political subdivision throughout the State, and the General Assembly shall specify the precise condition under which such special levies shall be assessed. For the tax year beginning 2008, each parcel of real property in this State shall have a maximum value for ad valorem taxes that does not exceed its fair market value for a base tax year. The General Assembly is authorized, by general law, to define 'fair market value', to define when property has been improved or when losses have occurred to change the value of the real property, and to select the base tax year used to determine the maximum value of real property for ad valorem taxes.
The General Assembly shall establish, through the enactment of general law, and not through the enactment of local legislation pertaining to a single county or other political subdivision, the methods of assessment of real property and the procedures by which a county selects an assessment method. Each county selects, unless affirmatively adopting an alternative method of valuing of real property, a method of valuing of real property in which the value of each parcel of real property, adjusted for improvements and losses, does not increase more than fifteen percent every five years, unless an assessable transfer of interest, as defined by the General Assembly, occurs. The General Assembly must provide, through the enactment of general law, and not through the enactment of local legislation pertaining to a single county or other political subdivision, at least one alternative method of valuing of real property, one of which values real property at its fair market value, with reassessments occurring every five years.
Notwithstanding any other provision of law, for the purposes of calculating the limit on bonded indebtedness of political subdivisions and school districts, pursuant to Sections 14 and 15 of Article X, respectively, of the Constitution of this State, the assessed values of all taxable property within a political subdivision or school district shall be the greater of (a) the final assessed value effective for the fiscal year beginning July 1, 2006, or (b) the assessed value of such political subdivision or school district as calculated following the effective date of this amendment. The changes in these values do not alter or amend the valuation of the taxable property for purposes of computing the full market value of all taxable property within a school district, as these provisions applied prior to the ratification of this amendment.
Whenever there is a merger of governments authorized under Section 12 of Article VIII, tax districts may be created, based upon the services rendered in each district, but tax levies must be uniform in respect to persons and property within each such district."
SECTION 2. The proposed amendments in SECTION 1 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Article III and Article X of the Constitution of this State be amended so as to provide that ad valorem taxes are to be applied uniformly to real property within a taxing jurisdiction rather than statewide; to require that the General Assembly establish the methods of assessment for real property and the procedures for a county to select a method, with the method that is automatically adopted by each county being a method of valuation of real property based on limits to increases in taxable value, adjusted for improvements and losses, of no more than fifteen percent over a five-year period unless an assessable transfer of interest occurs, and at least one other method being the valuation of real property at fair market value, with reassessments occurring every five years; to provide that for purposes of calculating the limit on bonded indebtedness of political subdivisions and school districts, the assessed values of all taxable property within a political subdivision or school district shall be the greater of (a) the final assessed value effective for the fiscal year beginning July 1, 2006, or (b) the assessed value of the political subdivision or school district as calculated following the effective date of this amendment; to provide that taxation of real property must be in accordance with procedures provided by the General Assembly; and to provide that the General Assembly, by general law and not through local legislation pertaining to a single county or other political subdivision, shall provide for the terms, conditions, and procedures to implement the above provisions?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."
SECTION 3. It is proposed that Section 3, Article X of the Constitution of this State be amended by adding a new paragraph at the end to read:
"In addition to the exemptions provided and authorized in this section, and subject to the requirements the General Assembly provides by general law, a county governing body, by ordinance, may impose a sales and use tax levied for operational expenditures in any political subdivision located in whole or in part within the county in order to provide homesteads within the county a one hundred percent exemption from property taxes and to provide other classifications of property credits for property taxes, excluding payments for bonded indebtedness. A county governing body may impose the exemption and credits, or their subsequent rescission, pursuant only to a referendum held in the county in the manner that the General Assembly provides by law. For purposes of this paragraph, 'political subdivision' means a county, a municipality, a school district, a public service district, or a special purpose district located in whole or in part within the county."
SECTION 4. The proposed amendment in SECTION 3 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Section 3, Article X of the Constitution of this State, relating to property tax exemptions, be amended so as to allow a county governing body by ordinance to impose a sales and use tax levied for operational expenditures in any political subdivision located in whole or in part within the county in order to provide homesteads within the county a one hundred percent exemption from property taxes and to provide other classifications of property credits for property taxes, excluding payments for bonded indebtedness, to allow for the purposes of this paragraph that the term 'political subdivision' means a county, a municipality, a school district, a public service district, or a special purpose district located in whole or in part of the county, and to allow the exemption or credits or their subsequent rescission pursuant only to a referendum held in a county in the manner that the General Assembly provides by law?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'." /
Renumber sections to conform.
Amend title to conform.
Senator RITCHIE explained the amendment.
Senator THOMAS made a Parliamentary Inquiry as to whether or not a majority vote or a two-thirds vote of the entire membership would be required in order to adopt the amendment.
The PRESIDENT stated that a majority vote was required in order to adopt the amendment.
Senator LEVENTIS spoke on the amendment.
Senator MARTIN objected to further consideration of the Bill.
H. 3882 (Word version) -- Reps. Harrell and Clark: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 10 TO CHAPTER 3, TITLE 56 SO AS TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES MAY ALLOW YEAR OF MANUFACTURE LICENSE PLATES TO SERVE AS THE OFFICIAL LICENSE PLATES FOR CERTAIN MOTOR VEHICLES.
The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
Senator GREGORY proposed the following amendment (3882R001.CKG), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Chapter 3, Title 56 of the 1976 Code is amended by adding:
Section 56-3-1450. (A) An owner of a motor vehicle that is thirty years old or older, may apply to the department to use a license plate issued by this State in the year corresponding to the model year of the vehicle, if the license plate is legible and serviceable, as determined by the department. If the department determines that the plate is legible and serviceable, the applicant must submit the regular vehicle registration fee contained in Article 5, Chapter 3 of this title, and the special license plate fee required by Section 56-3-2020. The biennial renewal fee for these plates shall be the regular vehicle registration fee contained in Article 5, Chapter 3 of this title, and the special license plate fee required by Section 56-3-2020.
(B) Once the department approves use of the plate and the applicant submits the required fees, the department shall register the plate to the applicant. The department may not register any duplicate plates. The applicant may only use the special license plate on the vehicle with which the license plate registration corresponds.
(C) License plates registered pursuant to this section may only be transferred to vehicles of the same model year as the year the license plate was originally issued."
SECTION 2. This act takes effect six months after the approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
Senator RYBERG explained the amendment.
The amendment was adopted.
Senators HUTTO, HAYES, SETZLER and CAMPSEN proposed the following amendment (3882-HUTTO), which was adopted:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
SECTION __. Chapter 3, Title 56 of the 1976 Code is amended by adding:
Section 56-3-6900. (A) The Department of Motor Vehicles may issue 'Boy Scouts of America' special motor vehicle license plates to owners of private-passenger motor vehicles or light pick-up trucks having an empty weight of seven thousand pounds or less and a gross weight of nine thousand pounds or less registered in their names. The fee for this special license plate is the regular motor vehicle license fee set forth in Article 5 and the special fee required by Section 56-3-2020. This special license plate must be of the same size and general design of regular motor vehicle license plates. The special license plates must be issued or revalidated for a biennial period which expires twenty-four months from the month they are issued.
(B) Notwithstanding any other provision of law, of the fees collected for the special license plate, the Comptroller General shall place sufficient funds into a special restricted account to be used by the Department of Motor Vehicles to defray the expenses of the Department of Motor Vehicles in producing and administering the special license plate. Any remaining funds must be deposited in a special account, separate and apart from the general fund, designated for use by the Indian Waters Council, Boy Scouts of America to be distributed to its South Carolina councils.
(C) Before the Department of Motor Vehicles produces and distributes a special license plate pursuant to this section, it must receive four hundred prepaid applications for the special license plate or a deposit of four thousand dollars from the individual or organization seeking issuance of the license plate. If a deposit of four thousand dollars is made by an individual or organization pursuant to this section, the department must refund the four thousand dollars once an equivalent amount of license plate fees is collected for that organization's license plate and, a plan to market the sale of the special license plate must be approved by the department. If the equivalent amount is not collected within four years of the first issuance of the license plate, the department shall retain the deposit.
(D) If the department receives less than three hundred biennial applications and renewals for the 'Boy Scouts of America' special license plate, it may not produce additional special license plates in that series. However, the department shall continue to issue special license plates of that series until the existing inventory is exhausted."
Renumber sections to conform.
Amend title to conform.
Senator HUTTO explained the amendment.
The amendment was adopted.
On motion of Senator FAIR, with unanimous consent, the Bill was carried over, as amended.
THE SENATE PROCEEDED TO A CONSIDERATION OF H. 4449.
H. 4449 (Word version) -- Reps. Cotty, Harrell, Merrill, Walker, Ballentine, Limehouse, E.H. Pitts, Haley, Clark, Townsend, Altman, Anthony, Bailey, Bingham, Bowers, Cato, Ceips, Chellis, Clyburn, Coleman, Cooper, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Hagood, Harrison, Haskins, Herbkersman, Hinson, Leach, Littlejohn, Loftis, Mahaffey, Martin, Phillips, Pinson, M.A. Pitts, Rhoad, Sandifer, Scarborough, F.N. Smith, G.M. Smith, J.R. Smith, Thompson, Toole, Tripp, Umphlett, Vaughn, White, Whitmire, Young, Bales, Lucas, Kirsh, Huggins, Brady, Hamilton, McGee and Stewart: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO IMPOSE AN ADDITIONAL TWO PERCENT SALES AND USE TAX, TO EXEMPT THE SALE OF UNPREPARED FOOD, TO PROVIDE AN ADDITIONAL EXEMPTION EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY FROM THE PROPERTY TAX, TO PROVIDE FOR THE MANNER, AMOUNT, AND CONDITIONS UNDER WHICH REVENUES IN THE HOMESTEAD EXEMPTION FUND SHALL BE DISBURSED TO PROPERTY TAXING ENTITIES OF THIS STATE, TO ADD SECTION 4-9-56 SO AS TO LIMIT THE MILLAGE PROPERTY TAXING ENTITIES OF THIS STATE MAY IMPOSE ON PROPERTY OTHER THAN OWNER-OCCUPIED RESIDENTIAL PROPERTY, TO REPEAL SECTIONS 12-37-223A, 12-37-270, 12-43-217, 12-43-250, 12-43-260, AND 12-43-295, ALL RELATING TO PROPERTY TAX.
(ABBREVIATED TITLE)
The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.
Having voted on the prevailing side, Senator HUTTO moved to reconsider the vote whereby the Bill was given a second reading.
Senator HUTTO moved to carry over the motion to reconsider the vote whereby the Bill was given a second reading.
The motion to reconsider the vote whereby the Bill was given a second reading was carried over.
Senator GROOMS made a motion to take up Amendment No. 33 for immediate consideration, in accordance with the provisions of Rule 26B.
Senator GROOMS spoke on the motion.
At 11:27 A.M., Senator McCONNELL assumed the Chair.
Senator GROOMS spoke on the motion.
The question then was the motion to waive the provisions of Rule 26B and take up for immediate consideration Amendment No. 33.
At 1:08 P.M., with Senator GROOMS retaining the floor, Senator SHEHEEN asked unanimous consent to make a motion that the Senate recede from business for fifteen minutes.
Senator CLEARY objected.
At 1:09 P.M., with Senator GROOMS retaining the floor, on motion of Senator MALLOY, with unanimous consent, the Senate receded from business not to exceed fifteen minutes.
At 2:59 P.M., the Senate resumed.
At 3:00 P.M., with Senator GROOMS retaining the floor, on motion of Senator MARTIN, with unanimous consent, the Senate receded from business until 4:15 P.M.
At 4:48 P.M., the Senate resumed.
With Senator GROOMS retaining the floor, Senator McCONNELL was recognized, with unanimous consent, to address the body.
At 5:03 P.M., on motion of Senator McCONNELL, the Senate receded from business not to exceed ten minutes.
At 5:24 P.M., the Senate resumed.
Senator McCONNELL asked unanimous consent to take up Amendment No. 36A for immediate consideration, waiving the provisions of Rule 26B.
There was no objection and Amendment No. 36A was taken up for immediate consideration, waiving the provisions of Rule 26B.
Senators McCONNELL, RITCHIE, LEATHERMAN, MARTIN, ALEXANDER, ANDERSON, CLEARY, DRUMMOND, ELLIOTT, FAIR, FORD, GREGORY, HAWKINS, HAYES, JACKSON, LAND, LEVENTIS, LOURIE, McGILL, MESCHER, MOORE, O'DELL, PATTERSON, PEELER, RANKIN, REESE, RICHARDSON, THOMAS and WILLIAMS proposed the following Amendment No. 36 (JUD4449.090), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting the following:
SECTION 1. Chapter 10, Title 4 of the 1976 Code is amended by adding:
Local Option Sales and Use Tax
For Local Property Tax Credit
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. Fee in lieu of property taxes, as defined by Chapter 12, Title 4 are exempt from this definition of a class of property. All classes of property are provided 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 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 all classes of property are provided a credit.
(6) 'ORS' means the Office of Research and Statistics of the State Budget and Control Board.
Section 4-10-730. (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 provide a credit from property tax imposed by a political subdivision for school operations and county operations for all classes of property. 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 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) If the county or municipality within the county has enacted a tax increment financing redevelopment plan, or other financing plan that relies upon property tax for its funding to retire indebtedness or pay for project costs, the rate of tax must be set in an amount that must consider full funding for the project or retirement of indebtedness, which must include compliance with any covenants in the governing documents authorizing this indebtedness or future indebtedness heretofore authorized by the tax increment financing redevelopment plan that relies upon property tax for its funding for the amount that the sales tax would substitute for the property tax payments. The revenues of such tax attributable to the funding replacement for a tax increment redevelopment financing plan that relies upon property tax for its funding must be distributed by the county treasurer pursuant to Section 4-10-780.
(4) 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 for its funding. This certified rate is the rate of tax that must appear in the referendum question.
(5) A qualified elector of the county desiring to circulate a petition shall file a written request with the governing body providing the school operations and county operations that 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 credits proposed 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.
(6) 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 the sales and use tax shall be credited to the school operations and county operations of all classes 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 in 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 levied in _______ County for the purpose of allowing a credit for all classes of property from ad valorem tax liabilities imposed for school operations and county operations?
(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 classes of property otherwise taxable in the county are authorized to receive a credit for property taxes for school operations and county operations 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 of the property tax credits are 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 a November election in any year.
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 levied in __________ County for the purpose of allowing a credit for all classes of property from ad valorem tax liabilities imposed for school operations and county operations be rescinded?
(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)(1) 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.
(2) 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.
(3) Any additional local sales and use tax imposed by 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 that may be lawfully purchased with United States Department of Agriculture food coupons.
(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)(1) Revenues of the tax collected and deposited pursuant to subsection (A) of this section must be distributed by the county treasurer to the political subdivisions located in the county as determined by the ordinance establishing the referendum.
(2) The amount of the revenues of the tax collected that is attributable to the funding replacement for the tax increment financing redevelopment plan or other financing plan that relies upon property tax for its funding for a particular political subdivision must be distributed by the county treasurer to the political subdivision that has enacted this financing plan to be deposited into the special tax allocation fund or other similar fund of that political subdivision as may be required by the tax increment financing law, as applicable to counties or municipalities, or by other applicable law.
(3) For counties in which there is more than one school district, the county treasurer shall distribute the revenues of the tax:
(a) 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; or
(b) pursuant to a distribution plan unanimously agreed upon by all entities with fiscal authority over the school districts within the county; or
(c) pursuant to a distribution plan authorized by local act of the General Assembly or local ordinance.
(4) For school districts that are composed of more than one county, the county treasurer shall distribute the revenues of the tax:
(a) to the portion of the school district that resides in the county adopting the provisions of this article in proportion to the district's one-hundred-thirty-five-day average daily membership, as referenced in Section 59-20-40(1)(a), in comparison to the remainder of the school district outside of the county; or
(b) pursuant to a distribution plan authorized by agreement of the multiple counties comprising the school district through local act of the General Assembly or local ordinance. 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 Office of Research and Statistics of the Budget and Control Board 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. (A) 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 school operations or county operations on all classes of property 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.
(B)(1) Each political subdivision as defined in Section 4-10-720 of this article and each school district of this State shall prepare and maintain annual budgets which provide for sufficient income to meet its estimated expenses for each year. Whenever it shall happen that the ordinary expenses of a political subdivision for any year shall exceed the income of such political subdivision, the governing body of such political subdivision shall provide, by a supermajority vote of the governing body, for levying a tax in the ensuing year sufficient, with other sources of income, to pay the deficiency of the preceding year together with the estimated expenses for such ensuing year. For the purpose of this subsection, 'supermajority of the governing body' means seventy-five percent of the members of the entire governing body, whether present or not.
(2) If a tax must be levied to pay for:
(a) the deficiency of the preceding year,
(b) 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,
(c) compliance with a court order or decree,
(d) 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
(e) 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,
then 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.
(C) 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 and above the amount required to be deposited to the special tax allocation fund for any tax increment indebtedness or any similar fund for other indebtedness to be paid from property tax or any project authorized to be paid pursuant to a tax increment funding redevelopment plan or other financing plan that relies upon property tax for its funding 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 ten 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 that political subdivision the excess accumulated over the ten percent amount for reduction in the bonded indebtedness or operations of the political subdivision.
(C) Earnings on the political subdivision's reserve must be credited to the reserve."
SECTION 2. A. Section 12-37-670 of the 1976 Code is amended to read:
"Section 12-37-670. (A) Each owner of land on which any new structures have been erected which shall not have been appraised for taxation shall list them for taxation with the county auditor of the county in which they may be situate on or before the first day of March next after they shall become subject to taxation. No new structure shall be listed or assessed until it is completed and fit for the use for which it is intended.
(B)(1) Notwithstanding the provisions of subsection (A), a county governing body may by ordinance provide that an owner of land on which a new structure has been erected and 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 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.
SECTION 4. 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 5. (1) 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, allowing the credits 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 any credits are similarly postponed one year.
(2) The provisions of Section 12-45-75 take effect upon approval by the Governor and apply for real property tax years beginning after 2006.
(3) All other provisions take effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
On motion of Senator McCONNELL, with unanimous consent, Amendment No. 36A was adopted.
On motion of Senator HUTTO, with unanimous consent, the motion to reconsider the vote whereby the Bill received a second reading was withdrawn.
The question then was the third reading of the Bill.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Anderson Campsen Cleary Courson Cromer Drummond Elliott Fair Ford Gregory Hawkins Hayes Hutto Jackson Knotts Land Leatherman Leventis Lourie Malloy Martin Matthews McConnell McGill Mescher Moore O'Dell Patterson Peeler Rankin Reese Richardson Ritchie Ryberg Scott Setzler Short Thomas Williams
Bryant Grooms Pinckney Sheheen Verdin
The Bill was read the third time, passed and ordered returned to the House of Representatives with amendments.
The only positive achievement of this legislation is that it succeeds in moving the debate forward to a conference committee. It alone provides little hope that property taxes will decline anytime in the near future. Indeed, this legislation simply passes the buck to the local level where, ironically, the only change in property taxes over the last several years has been their dramatic increase. We remain extremely frustrated at our inability to provide real, meaningful, across-the-board property tax relief to homeowners in South Carolina. We hope that the conference committee will report out legislation that does.
I endorse the statement expressed by Senators RYBERG and BRYANT and remain convinced that the amendment offered by Senator GROOMS is the best option for property owners of all classes in South Carolina. In addition, the issue of equity funding in public schools is most effectively addressed in Senator GROOMS' amendment.
For the better part of a year, I focused much of my legislative work on providing a plan for property tax relief for South Carolina's taxpayers. Then, for nearly a month, I labored on the Floor of the Senate to convince my colleagues to support the plan I designed. On six separate occasions I offered a plan that would provide comprehensive and long-lasting relief.
After fighting as hard as I could, I regret that I could not convince a majority of the membership to vote for that plan. I believe my amendment was the Senate's last opportunity to adopt a plan that would provide genuine relief.
H.4449, as amended by the Senate, does not contain any element of comprehensive tax relief. I voted against this amendment because a pure "local option" offers our hardworking homeowners very little, if anything, in the way of real, lasting relief. The tax burden from local school, county and municipal property taxes will remain and will only continue to grow.
Under this Bill, property tax relief remains but a dream.
I removed myself as a sponsor of the compromise property tax amendment for several reasons. First, as a practical matter, it only provides for a reduction and not the total elimination of school operating or county operating property taxes. Consequently, any relief obtained under the Bill would be in danger of dissipating as local governments raise the property tax back up to fill the "property tax vacuum" a partial reduction creates. To some extent this has been the experience with the current local option sales tax. The same thing would likely happen under this proposal as well, albeit to a lesser extent because of the millage caps contained in the compromise amendment.
Second, the local option approach in the compromise amendment is dramatically different, and significantly dilutes the local option idea I developed with Senator RITCHIE. Our local option proposal focused upon home tax relief, with provisions for complete elimination of operating property taxes on homes and no possibility of them coming back. Voters would decide upon relief through a referendum on a county-by-county basis. This aspect of our local option plan was so important that we structured the plan to require a 2/3 vote for a constitutional amendment, just to assure the property taxes replaced by a sales tax would be permanently eliminated. This very important component is missing from the compromise amendment, as is the focus upon home property tax relief.
The local option idea was initially developed because I foresaw that the Senate was not going to provide meaningful statewide property tax relief for two reasons: 1) the property tax problem is not uniformly acute throughout the State, so many Senators oppose increasing the statewide sales tax to provide relief primarily for what they perceive to be the limited areas where property taxes are severe; and 2) the Senate cannot agree upon formulas for distributing money collected through a statewide sales tax to political subdivisions.
The original local option plan was designed to avoid these two impediments to statewide relief. It would have enabled citizens in counties with property tax problems to vote for property tax elimination through a local sales tax increase. Counties without a property tax problem would simply not vote for relief, thus avoiding the political dilemma caused by the regional nature of the property tax problem. Furthermore, money raised by the local sales tax would remain in the county to fund schools and local government, thus avoiding the political dilemma over statewide distribution formulas.
This original local option approach almost prevailed because it effectively avoided the two impediments to statewide relief cited above. However, the compromise amendment so waters down the local option concept that I cannot advocate for it, except for the purpose of keeping the issue of property tax relief alive in hopes that meaningful relief will come out of a conference committee.
Although the original local option approach does not contain the deficiencies embodied in the compromise amendment, it has never been my first preference. I have consistently preferred various versions of the GROOMS amendments or KNOTTS amendments. My local option plan was developed purely as a fall-back position because I foresaw that the Senate would not produce the statewide relief we need.
Throughout this process I worked closely with Senators GROOMS, SHEHEEN and others to perfect the GROOMS plan to provide property tax relief and address school funding formulas. An important element we incorporated into the GROOMS plan was my local option idea to provide tax relief from county and city operating taxes on a local option basis, in addition to the statewide relief from school operating taxes provided under the original GROOMS plan. During this entire debate I repeatedly voted for and spoke in favor of various iterations of the GROOMS and KNOTTS plans to replace my own, but we could never muster the votes to pass them.
A third reason I removed myself as a sponsor of the compromise amendment is that for an entire year I have intensely dealt with property tax relief by serving on a special committee consisting of Judiciary and Finance Committee members that intensively studied the property tax problem and traveled the State seeking public input on solutions. I also served on a Judiciary property tax subcommittee that focused upon the constitutional aspects of property tax reform. We have spent so much time and reviewed so much information on property tax reform that my property tax files could fill a wheelbarrow. This compromise amendment falls far short of the relief the public has asked for and deserves and is too little to show for the time, effort and energy put into property tax relief by legislators and citizens alike.
Unfortunately, after weeks of floor debate, it became readily apparent that the compromise amendment is all the Senate would pass. The reason to vote for the compromise amendment is to keep the issue of property tax relief alive. Passing the Bill out of the Senate is the only way to get property tax relief into a conference committee, which might do a better job of fashioning relief than the Senate did. If we do not get a conference committee report with more meaningful property tax relief than what the Senate passed, the fight for property tax relief will have to continue.
On motion of Senator McCONNELL, with unanimous consent, the Senate resumed consideration of H. 4450.
H. 4450 (Word version) -- Reps. Cotty, Harrell, Merrill, Walker, Ballentine, Haley, Chellis, E.H. Pitts, Townsend, Clark, Altman, Bailey, Bales, Bingham, Bowers, Brady, Cato, Ceips, Clyburn, Coleman, Cooper, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Hagood, Harrison, Haskins, Herbkersman, Hinson, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mahaffey, Martin, Phillips, Pinson, M.A. Pitts, Rhoad, Sandifer, Scarborough, G.M. Smith, J.R. Smith, Thompson, Toole, Tripp, Umphlett, Vaughn, White, Whitmire, Young, W.D. Smith, Kirsh, Huggins, Hamilton, McGee and Stewart: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO FINANCE AND TAXATION, BY ADDING A NEW SECTION 1A SO AS TO PROVIDE THAT FAIR MARKET VALUE OF REAL PROPERTY FOR PURPOSES OF PROPERTY TAX MEANS ITS FAIR MARKET VALUE WHEN OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, INCREASED BY THE FAIR MARKET VALUE OF IMPROVEMENTS TO THE REAL PROPERTY SINCE OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW MAY DEFINE AN OWNERSHIP TRANSFER AND AN IMPROVEMENT TO REAL PROPERTY, AND MAY ESTABLISH A BASE YEAR FOR DETERMINING INITIAL FAIR MARKET VALUE FOR PURPOSES OF THIS NEW SECTION; AND TO AMEND SECTION 3, ARTICLE X, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PROVIDE AN ADDITIONAL EXEMPTION FROM PROPERTY TAX EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF A HOMESTEAD AS PRESCRIBED BY THE GENERAL ASSEMBLY BY LAW, AND TO PROVIDE THAT THIS ADDITIONAL EXEMPTION DOES NOT APPLY WITH RESPECT TO PROPERTY TAX IMPOSED FOR PAYMENT OF GENERAL OBLIGATION DEBT.
The Senate proceeded to a consideration of the Joint Resolution, the question being the adoption of Amendment No. 1 (JUD4450.005), previously proposed by Senators RITCHIE and McCONNELL.
On motion of Senator McCONNELL, with unanimous consent, Amendment No. 1 was withdrawn.
Senator McCONNELL asked unanimous consent to make a motion to take up Amendment No. 1A for immediate consideration.
There was no objection.
Senators McCONNELL, RITCHIE, LEATHERMAN and MARTIN proposed the following amendment (JUD4450.008), which was adopted:
Amend the joint resolution, as and if amended, by striking the joint resolution in its entirety and inserting the following:
PROPOSING AN AMENDMENT TO SECTION 29, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE LEGISLATIVE DEPARTMENT, SO AS TO PROVIDE THAT TAXES UPON REAL PROPERTY MUST BE ASSESSED IN ACCORDANCE WITH THE METHODS AS PROVIDED BY THE GENERAL ASSEMBLY IN ARTICLE X OF THE STATE CONSTITUTION; TO AMEND SECTIONS 1 AND 3 OF ARTICLE X, RELATING TO FINANCE AND TAXATION, SO AS TO PROVIDE THAT THE REQUIREMENT THAT TAXATION OF REAL PROPERTY MUST BE UNIFORM APPLIES TO PROPERTY WITHIN A TAXING JURISDICTION RATHER THAN STATEWIDE; TO AMEND SECTION 6 OF ARTICLE X, SO AS TO PROVIDE THAT THE GENERAL ASSEMBLY SHALL ESTABLISH METHODS OF VALUATION FOR COUNTIES TO SELECT FROM FOR ASSESSMENT OF REAL PROPERTY WITHIN THEIR JURISDICTIONS, AND TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW SHALL PROVIDE FOR THE TERMS, CONDITIONS, AND PROCEDURES TO IMPLEMENT THE ABOVE PROVISIONS; AND TO AMEND SECTION 3, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO ALLOW A COUNTY GOVERNING BODY TO LEVY A SALES AND USE TAX IMPOSED FOR SCHOOL OPERATIONS AND COUNTY OPERATIONS IN ANY POLITICAL SUBDIVISION LOCATED IN WHOLE OR IN PART WITHIN THE COUNTY IN ORDER TO PROVIDE ALL CLASSES OF PROPERTY, EXCEPT FOR FEE IN LIEU OF PROPERTY TAXES, A CREDIT FOR AD VALOREM TAXES, AND TO ALLOW THIS CREDIT AND RESCISSION PURSUANT ONLY TO A REFERENDUM HELD IN A COUNTY IN THE MANNER THAT THE GENERAL ASSEMBLY PROVIDES BY LAW.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. It is proposed that Section 29 of Article III of the Constitution of this State be amended to read:
"Section 29. All taxes upon property, real and personal, shall be laid upon the actual value of the property taxed, as the same shall be ascertained by an assessment made for the purpose of laying such tax. Taxes on personal property must be laid upon the actual value of the property taxed, as the same shall be ascertained by an assessment made for the purpose of laying such tax. Taxes on real property must be ascertained by the methods provided by the General Assembly as general law as prescribed in Article X of this Constitution."
B. It is proposed that the first paragraph of Section 1 of Article X of the Constitution of this State be amended to read:
"Section 1. The General Assembly may provide for the ad valorem taxation by the State or any of its subdivisions of all real and personal property. The assessment of all property shall be equal and uniform within the class of property being taxed and within its taxing jurisdiction in the following classifications:"
C. It is proposed that the penultimate paragraph of Section 3 of Article X of the Constitution of this State be amended to read:
"The exemptions provided in subitems (c) and (d) for real property shall not extend beyond the buildings and premises actually occupied by the owners of such real property. Homestead exemptions from ad valorem taxation not specifically provided for in this section may be provided for by the General Assembly by general law. In addition to the exemptions listed in this section, the General Assembly may provide for exemptions from the property tax, by general laws applicable uniformly to property throughout the State and in all political subdivisions, but only with the approval of two-thirds of the members of each House. All exemptions not specifically provided for or authorized in this article shall be repealed March 1, 1978. The General Assembly shall provide for methods and procedures in applying for the exemption of any property as is described in this section."
D. It is proposed that Section 6 of Article X of the Constitution of this State be amended to read:
"Section 6. The Except as otherwise provided in this section, the General Assembly may vest the power of assessing and collecting taxes in all of the political subdivisions of the State, including counties, municipalities, special purpose districts, public service districts, and school districts. Property tax levies shall be uniform in respect to persons and property within the jurisdiction of the body imposing such taxes; provided, that on properties located in an area receiving special benefits from the taxes collected, special levies may be permitted by general law applicable to the same type of political subdivision throughout the State, and the General Assembly shall specify the precise condition under which such special levies shall be assessed. For the tax year beginning 2008, each parcel of real property in this State shall have a maximum value for ad valorem taxes that does not exceed its fair market value for a base tax year. The General Assembly is authorized, by general law, to define 'fair market value', to define when property has been improved or when losses have occurred to change the value of the real property, and to select the base tax year used to determine the maximum value of real property for ad valorem taxes.
The General Assembly shall establish, through the enactment of general law, and not through the enactment of local legislation pertaining to a single county or other political subdivision, the methods of assessment of real property and the procedures by which a county selects an assessment method. Each county selects, unless affirmatively adopting an alternative method of valuing of real property, a method of valuing of real property in which the value of each parcel of real property, adjusted for improvements and losses, does not increase more than fifteen percent every five years, unless an assessable transfer of interest, as defined by the General Assembly, occurs. The General Assembly must provide, through the enactment of general law, and not through the enactment of local legislation pertaining to a single county or other political subdivision, at least one alternative method of valuing of real property, one of which values real property at its fair market value, with reassessments occurring every five years.
Notwithstanding any other provision of law, for the purposes of calculating the limit on bonded indebtedness of political subdivisions and school districts, pursuant to Sections 14 and 15 of Article X, respectively, of the Constitution of this State, the assessed values of all taxable property within a political subdivision or school district shall be the greater of (a) the final assessed value effective for the fiscal year beginning July 1, 2006, or (b) the assessed value of such political subdivision or school district as calculated following the effective date of this amendment. The changes in these values do not alter or amend the valuation of the taxable property for purposes of computing the full market value of all taxable property within a school district, as these provisions applied prior to the ratification of this amendment.
Whenever there is a merger of governments authorized under Section 12 of Article VIII, tax districts may be created, based upon the services rendered in each district, but tax levies must be uniform in respect to persons and property within each such district."
SECTION 2. The proposed amendments in SECTION 1 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Article III and Article X of the Constitution of this State be amended so as to provide that ad valorem taxes are to be applied uniformly to real property within a taxing jurisdiction rather than statewide; to require that the General Assembly establish the methods of assessment for real property and the procedures for a county to select a method, with the method that is automatically adopted by each county being a method of valuation of real property based on limits to increases in taxable value, adjusted for improvements and losses, of no more than fifteen percent over a five-year period unless an assessable transfer of interest occurs, and at least one other method being the valuation of real property at fair market value, with reassessments occurring every five years; to provide that for purposes of calculating the limit on bonded indebtedness of political subdivisions and school districts, the assessed values of all taxable property within a political subdivision or school district shall be the greater of (a) the final assessed value effective for the fiscal year beginning July 1, 2006, or (b) the assessed value of the political subdivision or school district as calculated following the effective date of this amendment; to provide that taxation of real property must be in accordance with procedures provided by the General Assembly; and to provide that the General Assembly, by general law and not through local legislation pertaining to a single county or other political subdivision, shall provide for the terms, conditions, and procedures to implement the above provisions?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."
SECTION 3. It is proposed that Section 3, Article X of the Constitution of this State be amended by adding a new paragraph at the end to read:
"In addition to the exemptions provided and authorized in this section, and subject to the requirements the General Assembly provides by general law, a county governing body, by ordinance, may impose a sales and use tax levied for school operations and county operations in order to provide all classes of property, with the exception of fee in lieu of property taxes, credits for ad valorem taxes imposed by a county or school district located in whole or in part within the county. A county governing body may impose the credits and their subsequent rescission, pursuant only to a referendum held in the county in the manner that the General Assembly provides by law. For purposes of this paragraph, 'political subdivision' means a county and a school district located in whole or in part within the county."
SECTION 4. The proposed amendment in SECTION 3 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Section 3, Article X of the Constitution of this State, relating to property tax exemptions, be amended so as to allow a county governing body, by ordinance, to impose a sales and use tax levied for school operations and county operations in order to provide credits for all classes of property, with the exception of fee in lieu of property taxes, for ad valorem taxes imposed by a county or school district located in whole or in part within the county, to allow for the purposes of this paragraph that the term 'political subdivision' means a county and a school district located in whole or in part of the county, and to allow the credits and their subsequent rescission pursuant only to a referendum held in a county in the manner that the General Assembly provides by law?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'." /
Renumber sections to conform.
Amend title to conform.
Senator McCONNELL explained the amendment.
The amendment was adopted.
Senator McCONNELL moved that the text of the Joint Resolution, as amended, be printed upon the pages of the Journal and that the Joint Resolution be ordered to receive a second reading.
H. 4450 (Word version) -- Reps. Cotty, Harrell, Merrill, Walker, Ballentine, Haley, Chellis, E.H. Pitts, Townsend, Clark, Altman, Bailey, Bales, Bingham, Bowers, Brady, Cato, Ceips, Clyburn, Coleman, Cooper, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Hagood, Harrison, Haskins, Herbkersman, Hinson, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mahaffey, Martin, Phillips, Pinson, M.A. Pitts, Rhoad, Sandifer, Scarborough, G.M. Smith, J.R. Smith, Thompson, Toole, Tripp, Umphlett, Vaughn, White, Whitmire, Young, W.D. Smith, Kirsh, Huggins, Hamilton, McGee and Stewart: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 29, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE LEGISLATIVE DEPARTMENT, SO AS TO PROVIDE THAT TAXES UPON REAL PROPERTY MUST BE ASSESSED IN ACCORDANCE WITH THE METHODS AS PROVIDED BY THE GENERAL ASSEMBLY IN ARTICLE X OF THE STATE CONSTITUTION; TO AMEND SECTIONS 1 AND 3 OF ARTICLE X, RELATING TO FINANCE AND TAXATION, SO AS TO PROVIDE THAT THE REQUIREMENT THAT TAXATION OF REAL PROPERTY MUST BE UNIFORM APPLIES TO PROPERTY WITHIN A TAXING JURISDICTION RATHER THAN STATEWIDE; TO AMEND SECTION 6 OF ARTICLE X, SO AS TO PROVIDE THAT THE GENERAL ASSEMBLY SHALL ESTABLISH METHODS OF VALUATION FOR COUNTIES TO SELECT FROM FOR ASSESSMENT OF REAL PROPERTY WITHIN THEIR JURISDICTIONS, AND TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW SHALL PROVIDE FOR THE TERMS, CONDITIONS, AND PROCEDURES TO IMPLEMENT THE ABOVE PROVISIONS; AND TO AMEND SECTION 3, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO ALLOW A COUNTY GOVERNING BODY TO LEVY A SALES AND USE TAX IMPOSED FOR SCHOOL OPERATIONS AND COUNTY OPERATIONS IN ANY POLITICAL SUBDIVISION LOCATED IN WHOLE OR IN PART WITHIN THE COUNTY IN ORDER TO PROVIDE ALL CLASSES OF PROPERTY, EXCEPT FOR FEE IN LIEU OF PROPERTY TAXES, A CREDIT FOR AD VALOREM TAXES, AND TO ALLOW THIS CREDIT AND RESCISSION PURSUANT ONLY TO A REFERENDUM HELD IN A COUNTY IN THE MANNER THAT THE GENERAL ASSEMBLY PROVIDES BY LAW.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. It is proposed that Section 29 of Article III of the Constitution of this State be amended to read:
"Section 29. All taxes upon property, real and personal, shall be laid upon the actual value of the property taxed, as the same shall be ascertained by an assessment made for the purpose of laying such tax. Taxes on personal property must be laid upon the actual value of the property taxed, as the same shall be ascertained by an assessment made for the purpose of laying such tax. Taxes on real property must be ascertained by the methods provided by the General Assembly as general law as prescribed in Article X of this Constitution."
B. It is proposed that the first paragraph of Section 1 of Article X of the Constitution of this State be amended to read:
"Section 1. The General Assembly may provide for the ad valorem taxation by the State or any of its subdivisions of all real and personal property. The assessment of all property shall be equal and uniform within the class of property being taxed and within its taxing jurisdiction in the following classifications:"
C. It is proposed that the penultimate paragraph of Section 3 of Article X of the Constitution of this State be amended to read:
"The exemptions provided in subitems (c) and (d) for real property shall not extend beyond the buildings and premises actually occupied by the owners of such real property. Homestead exemptions from ad valorem taxation not specifically provided for in this section may be provided for by the General Assembly by general law. In addition to the exemptions listed in this section, the General Assembly may provide for exemptions from the property tax, by general laws applicable uniformly to property throughout the State and in all political subdivisions, but only with the approval of two-thirds of the members of each House. All exemptions not specifically provided for or authorized in this article shall be repealed March 1, 1978. The General Assembly shall provide for methods and procedures in applying for the exemption of any property as is described in this section."
D. It is proposed that Section 6 of Article X of the Constitution of this State be amended to read:
"Section 6. The Except as otherwise provided in this section, the General Assembly may vest the power of assessing and collecting taxes in all of the political subdivisions of the State, including counties, municipalities, special purpose districts, public service districts, and school districts. Property tax levies shall be uniform in respect to persons and property within the jurisdiction of the body imposing such taxes; provided, that on properties located in an area receiving special benefits from the taxes collected, special levies may be permitted by general law applicable to the same type of political subdivision throughout the State, and the General Assembly shall specify the precise condition under which such special levies shall be assessed. For the tax year beginning 2008, each parcel of real property in this State shall have a maximum value for ad valorem taxes that does not exceed its fair market value for a base tax year. The General Assembly is authorized, by general law, to define 'fair market value', to define when property has been improved or when losses have occurred to change the value of the real property, and to select the base tax year used to determine the maximum value of real property for ad valorem taxes.
The General Assembly shall establish, through the enactment of general law, and not through the enactment of local legislation pertaining to a single county or other political subdivision, the methods of assessment of real property and the procedures by which a county selects an assessment method. Each county selects, unless affirmatively adopting an alternative method of valuing of real property, a method of valuing of real property in which the value of each parcel of real property, adjusted for improvements and losses, does not increase more than fifteen percent every five years, unless an assessable transfer of interest, as defined by the General Assembly, occurs. The General Assembly must provide, through the enactment of general law, and not through the enactment of local legislation pertaining to a single county or other political subdivision, at least one alternative method of valuing of real property, one of which values real property at its fair market value, with reassessments occurring every five years.
Notwithstanding any other provision of law, for the purposes of calculating the limit on bonded indebtedness of political subdivisions and school districts, pursuant to Sections 14 and 15 of Article X, respectively, of the Constitution of this State, the assessed values of all taxable property within a political subdivision or school district shall be the greater of (a) the final assessed value effective for the fiscal year beginning July 1, 2006, or (b) the assessed value of such political subdivision or school district as calculated following the effective date of this amendment. The changes in these values do not alter or amend the valuation of the taxable property for purposes of computing the full market value of all taxable property within a school district, as these provisions applied prior to the ratification of this amendment.
Whenever there is a merger of governments authorized under Section 12 of Article VIII, tax districts may be created, based upon the services rendered in each district, but tax levies must be uniform in respect to persons and property within each such district."
SECTION 2. The proposed amendments in SECTION 1 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Article III and Article X of the Constitution of this State be amended so as to provide that ad valorem taxes are to be applied uniformly to real property within a taxing jurisdiction rather than statewide; to require that the General Assembly establish the methods of assessment for real property and the procedures for a county to select a method, with the method that is automatically adopted by each county being a method of valuation of real property based on limits to increases in taxable value, adjusted for improvements and losses, of no more than fifteen percent over a five-year period unless an assessable transfer of interest occurs, and at least one other method being the valuation of real property at fair market value, with reassessments occurring every five years; to provide that for purposes of calculating the limit on bonded indebtedness of political subdivisions and school districts, the assessed values of all taxable property within a political subdivision or school district shall be the greater of (a) the final assessed value effective for the fiscal year beginning July 1, 2006, or (b) the assessed value of the political subdivision or school district as calculated following the effective date of this amendment; to provide that taxation of real property must be in accordance with procedures provided by the General Assembly; and to provide that the General Assembly, by general law and not through local legislation pertaining to a single county or other political subdivision, shall provide for the terms, conditions, and procedures to implement the above provisions?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."
SECTION 3. It is proposed that Section 3, Article X of the Constitution of this State be amended by adding a new paragraph at the end to read:
"In addition to the exemptions provided and authorized in this section, and subject to the requirements the General Assembly provides by general law, a county governing body, by ordinance, may impose a sales and use tax levied for school operations and county operations in order to provide all classes of property, with the exception of fee in lieu of property taxes, credits for ad valorem taxes imposed by a county or school district located in whole or in part within the county. A county governing body may impose the credits and their subsequent rescission, pursuant only to a referendum held in the county in the manner that the General Assembly provides by law. For purposes of this paragraph, 'political subdivision' means a county and a school district located in whole or in part within the county."
SECTION 4. The proposed amendment in SECTION 3 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Section 3, Article X of the Constitution of this State, relating to property tax exemptions, be amended so as to allow a county governing body, by ordinance, to impose a sales and use tax levied for school operations and county operations in order to provide credits for all classes of property, with the exception of fee in lieu of property taxes, for ad valorem taxes imposed by a county or school district located in whole or in part within the county, to allow for the purposes of this paragraph that the term 'political subdivision' means a county and a school district located in whole or in part of the county, and to allow the credits and their subsequent rescission pursuant only to a referendum held in a county in the manner that the General Assembly provides by law?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."
The question then was the second reading of the Joint Resolution.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Anderson Bryant Campsen Cleary Courson Cromer Drummond Elliott Fair Ford Gregory Grooms Hawkins Hayes Hutto Jackson Knotts Land Leatherman Leventis Lourie Malloy Martin Matthews McConnell McGill Mescher Moore O'Dell Patterson Peeler Rankin Reese Richardson Ritchie Ryberg Scott Setzler Short Thomas Verdin Williams
Pinckney Sheheen
The Joint Resolution was read the second time, passed and ordered to a third reading.
On motion of Senator McCONNELL, with unanimous consent, H. 4450 was ordered to receive a third reading on Thursday, May 11, 2006.
The only positive achievement of this legislation is that it succeeds in moving the debate forward to a conference committee. It alone provides little hope that property taxes will decline anytime in the near future. Indeed, this legislation simply passes the buck to the local level where, ironically, the only change in property taxes over the last several years has been their dramatic increase. We remain extremely frustrated at our inability to provide real, meaningful, across-the-board property tax relief to homeowners in South Carolina. We hope that the conference committee will report out legislation that does.
I endorse the statement expressed by Senators RYBERG and BRYANT and remain convinced that the amendment offered by Senator GROOMS is the best option for property owners of all classes in South Carolina. In addition, the issue of equity funding in public schools is most effectively addressed in Senator GROOMS' amendment.
For the better part of a year, I focused much of my legislative work on providing a plan for property tax relief for South Carolina's taxpayers. Then, for nearly a month, I labored on the Floor of the Senate to convince my colleagues to support the plan I designed. On six separate occasions I offered a plan that would provide comprehensive and long-lasting relief.
After fighting as hard as I could, I regret that I could not convince a majority of the membership to vote for that plan. I believe my amendment was the Senate's last opportunity to adopt a plan that would provide genuine relief.
H.4450 (Word version), as amended by the Senate, does not contain any element of comprehensive tax relief. I voted against this amendment because a pure "local option" offers our hardworking homeowners very little, if anything, in the way of real, lasting relief. The tax burden from local school, county and municipal property taxes will remain and will only continue to grow.
Under this Resolution, property tax relief remains but a dream.
S. 1408 (Word version) -- Senator Drummond: A JOINT RESOLUTION TO PROVIDE FOR THE CREATION OF THE SOUTH CAROLINA STATE AND LOCAL TAX STUDY COMMITTEE TO REVIEW STATE AND LOCAL TAXES, TO MAKE RECOMMENDATIONS FOR A RESTRUCTURING OF TAX METHODS USED IN THIS STATE.
Senator LEATHERMAN asked unanimous consent to make a motion to recall the Resolution from the Committee on Finance.
There was no objection.
The Resolution was recalled and ordered placed on the Calendar.
On motion of Senator LEATHERMAN, with unanimous consent, S. 1408 was ordered to receive a second and third reading on the next two consecutive legislative days.
On motion of Senator ALEXANDER, with unanimous consent, the Senate stood adjourned out of respect to the memory of Johnson Whitner Link of Clemson, S.C., retired Police Chief of Clemson University.
At 5:51 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet Thursday, May 11, 2006, at 11:00 A.M., under the provisions of Rule 1B.
This web page was last updated on Wednesday, June 24, 2009 at 1:08 P.M.