Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 12:00 Noon, the hour to which it stood adjourned, and was called to order by the PRESIDENT Pro Tempore.
A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:
Beloved, hear words from Psalm 25:4-5:
"Make Thy paths known to me, O Lord; teach me Thy ways. Lead me in Thy truth and teach me; Thou are my Savior. For Thee I have waited all day long, for the coming of Thy goodness, Lord."
Let us pray.
Dear Lord, we have made promises to many people. Help us to keep those promises... if we can!
Daily, transform us from the kind of people the world would make of us into the kind of people that can truly be called THE PEOPLE OF GOD!
Let us pray with the psalmist - "teach me Thy ways."
Amen!
The PRESIDENT Pro Tempore called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
The following appointments were transmitted by the Honorable Mark C. Sanford:
Initial Appointment, South Carolina State Board for Technical and Comprehensive Education, with term to commence July 1, 2005, and to expire July 1, 2011
3rd Congressional District:
Bettis C. Rainsford, P.O. Box 388, Edgefield, S.C. 29824 VICE Henderson Barnette
Referred to the Committee on Education.
Reappointment, Governing Board of the Department of Natural Resources, with term to commence July 1, 2006, and to expire July 1, 2010
At-Large:
Michael G. McShane, 1501 Ravens Point Road, Johns Island, S.C. 29455
Referred to the Committee on Fish, Game and Forestry.
Senator LOURIE introduced Dr. Leo Walker of Columbia, S.C., Doctor of the Day.
On motion of Senator MARTIN, at 12:05 P.M., Senator J. VERNE SMITH was granted a leave of absence for this week.
At 12:13 P.M., Senator RITCHIE requested a leave of absence from 4:00 - 10:00 P.M. this evening.
At 12:13 P.M., Senator THOMAS requested a leave of absence from 5:30 - 6:30 P.M. this evening.
At 12:15 P.M., Senator CLEARY requested a leave of absence on Thursday, May 4, 2006, beginning at 1:30 P.M. and lasting until Tuesday morning.
H. 5046 (Word version) -- Reps. Townsend, Walker, Pinson and Harrell: A CONCURRENT RESOLUTION TO RECOGNIZE THE CONTRIBUTIONS THAT CHARTER SCHOOLS IN SOUTH CAROLINA MAKE TOWARD THE EDUCATION OF OUR STATE'S STUDENTS AND TO DECLARE THE WEEK MAY 1-6, 2006, AS "CHARTER SCHOOL WEEK" IN SOUTH CAROLINA.
Senator COURSON asked unanimous consent to make a motion to recall the Resolution from the Committee on Education.
There was no objection.
The Resolution was recalled from the Committee on Education and with unanimous consent, taken up for immediate consideration.
On motion of Senator COURSON, with unanimous consent, the Resolution was adopted and ordered returned to the House.
The following were introduced:
S. 1383 (Word version) -- Senator Verdin: A CONCURRENT RESOLUTION TO CELEBRATE THE REMARKABLE LIFE OF MR. WILLIAM D. TAYLOR, SR. OF CLINTON ON THE JOYOUS OCCASION OF HIS NINETY-THIRD BIRTHDAY AND TO WISH HIM MANY MORE YEARS OF HEALTH AND HAPPINESS.
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The Concurrent Resolution was adopted, ordered sent to the House.
S. 1384 (Word version) -- Senator Lourie: A CONCURRENT RESOLUTION TO CONGRATULATE KATHLEEN K. "KATHY" WILLIAMS, CERTIFIED ASSOCIATION EXECUTIVE, OF COLUMBIA UPON BEING CHOSEN THE 2006 ASSOCIATION EXECUTIVE OF THE YEAR BY THE SOUTH CAROLINA SOCIETY OF ASSOCIATION EXECUTIVES.
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The Concurrent Resolution was adopted, ordered sent to the House.
H. 3901 (Word version) -- Rep. Funderburk: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 46-15-65 SO AS TO PROVIDE THAT AGRICULTURAL PRODUCTS GROWN IN ANOTHER STATE MAY BE SOLD AT ROADSIDE MARKETS OR LOCAL STANDS IN THIS STATE BY THE OUT-OF-STATE PRODUCER OR HIS AUTHORIZED AGENCY IN THE SAME MANNER IN-STATE PRODUCERS ARE PERMITTED TO SELL SUCH PRODUCTS ONLY IF THE OTHER STATE PERMITS AGRICULTURAL PRODUCERS FROM THIS STATE THE SAME PRIVILEGE AS DETERMINED BY THE DEPARTMENT OF AGRICULTURE.
Read the first time and referred to the Committee on Agriculture and Natural Resources.
H. 5073 (Word version) -- Reps. Scott, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Bannister, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hodges, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Witherspoon and Young: A CONCURRENT RESOLUTION TO CONGRATULATE MR. NEVILLE O. LORICK, PRESIDENT OF SOUTH CAROLINA ELECTRIC AND GAS COMPANY, AND ONE OF SOUTH CAROLINA'S MOST RESPECTED BUSINESS EXECUTIVES, UPON HIS RETIREMENT FROM THIS POSITION.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5074 (Word version) -- Reps. Ballentine, Huggins, E. H. Pitts, McLeod, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Bannister, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hodges, Hosey, Howard, Jefferson, Jennings, Kennedy, Kirsh, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, Merrill, Miller, Mitchell, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5076 (Word version) -- Rep. J. Brown: A CONCURRENT RESOLUTION TO WELCOME THE UNITED STATES YOUTH GAMES NATIONAL CHAMPIONSHIP TO COLUMBIA JULY 18-22, 2006, AND CONGRATULATE THIS OUTSTANDING ORGANIZATION ON ITS 40th ANNIVERSARY OF PROVIDING RECREATIONAL, CULTURAL, AND SOCIAL OPPORTUNITIES TO THE URBAN YOUTH OF OVER 30 CITIES ACROSS THE COUNTRY.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5080 (Word version) -- Reps. Parks, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Bannister, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hodges, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Witherspoon and Young: A CONCURRENT RESOLUTION EXPRESSING THE APPRECIATION OF THE MEMBERS OF THE GENERAL
The Concurrent Resolution was adopted, ordered returned to the House.
S. 1378 (Word version) -- Senator McConnell: A CONCURRENT RESOLUTION EXPRESSING SINCERE APPRECIATION AND THANKS TO MR. JOHN C. B. SMITH, JR. OF COLUMBIA FOR HIS LEADERSHIP AND UNTIRING EFFORTS AS CHAIRMAN OF THE SOUTH CAROLINA EDUCATION LOTTERY COMMISSION FROM ITS ESTABLISHMENT WHICH HAS RESULTED IN THE GREAT SUCCESS OF THE LOTTERY AND IN THE TRANSFER OF MORE THAN ONE BILLION DOLLARS TO THE EDUCATION LOTTERY ACCOUNT FOR THE ENHANCEMENT OF EDUCATIONAL PROGRAMS THROUGHOUT THE STATE.
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 ordered sent to the House of Representatives:
S. 1295 (Word version) -- Senators Cromer, Sheheen, Lourie, Hawkins, Alexander, Anderson, Bryant, Campsen, Cleary, Courson, Drummond, Elliott, Fair, Ford, Gregory, Grooms, Hayes, Hutto, Jackson, Knotts, Land, Leatherman, Leventis, Malloy, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Patterson, Peeler, Pinckney, Rankin, Reese, Richardson, Ritchie, Ryberg, Scott, Setzler, Short, J. Verne Smith, Thomas, Verdin and Williams: A BILL TO AMEND ARTICLE 7, CHAPTER 17, TITLE 16 OF THE 1976 CODE, RELATING TO MISCELLANEOUS CRIMES AGAINST PUBLIC POLICY, BY ADDING SECTION 16-17-525 TO MAKE IT UNLAWFUL FOR A
S. 297 (Word version) -- Senators Gregory and Campsen: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-9-15 SO AS TO PROVIDE THAT THE DEPARTMENT OF NATURAL RESOURCES IS AUTHORIZED TO PRESCRIBE THE FORM OF ANY LICENSE, STAMP, PERMIT, OR TAGS ISSUED UNDER TITLE 50 AND IS AUTHORIZED TO PROVIDE FOR THEIR ELECTRONIC SALE AND DISTRIBUTION, TO ALSO AUTHORIZE THE DEPARTMENT FOR A FIVE-YEAR PERIOD TO COLLECT A ONE-DOLLAR SURCHARGE ON ANY LICENSE, STAMP, PERMIT, OR TAG ISSUED, AND TO PROVIDE FOR THE MANNER IN WHICH THIS SURCHARGE SHALL BE USED; AND TO AMEND SECTION 50-9-530, AS AMENDED, RELATING TO MIGRATORY WATERFOWL STAMPS, SO AS TO PROVIDE THAT THE FORM OF THE STAMP MUST BE AS PRESCRIBED BY THE DEPARTMENT; AND TO PROVIDE THAT ANY PICTORIAL STAMP MUST BE VALIDATED BY THE SIGNATURE OF THE LICENSEE WRITTEN ACROSS THE FACE OF THE STAMP.
Senator GREGORY asked unanimous consent to commit the Bill to the Committee on Fish, Game and Forestry.
There was no objection.
The Bill was recommitted to the Committee on Fish, Game, and Forestry.
S. 672 (Word version) -- Senators Gregory and Campsen: A BILL TO AMEND SECTION 50-5-1705, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CATCH LIMITS ON CERTAIN SALTWATER FISH, SO AS TO AUTHORIZE THE BOARD OF NATURAL RESOURCES TO ESTABLISH TAKE AND POSSESSION LIMITS AND SIZE LIMITS FOR ELEVEN SPECIFIC TYPES OR GROUPS OF SALTWATER FINFISH, TO PROVIDE FOR THE REVIEW, APPROVAL, NOTIFICATION, AND IMPLEMENTATION PROCEDURES IN REGARD TO THE ABOVE, TO PROVIDE THAT THESE PROCEDURES ARE IN LIEU OF THOSE FOR PROMULGATION OF REGULATIONS
Senator GREGORY asked unanimous consent to commit the Bill to the Committee on Fish, Game and Forestry.
There was no objection.
The Bill was recommitted to the Committee on Fish, Game and Forestry.
THE SENATE PROCEEDED TO A CONSIDERATION OF BILLS AND RESOLUTIONS RETURNED FROM THE HOUSE.
S. 489 (Word version) -- Senator Hayes: A BILL TO AMEND SECTION 1-11-720, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENTITIES WHOSE EMPLOYEES, RETIREES, AND THEIR DEPENDENTS ARE ELIGIBLE TO PARTICIPATE IN THE STATE HEALTH AND DENTAL INSURANCE PLANS, SO AS TO EXTEND THIS ELIGIBILITY TO THE CHILDREN'S TRUST FUND.
The House returned the Bill with amendments.
On motion of Senator HAYES, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
H. 4449 (Word version) -- Reps. Cotty, Harrell, Merrill, Walker, Ballentine, Limehouse, E.H. Pitts, Haley, Clark, Townsend, Altman, Anthony, Bailey, Bingham, Bowers, Cato, Ceips, Chellis, Clyburn, Coleman, Cooper, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Hagood, Harrison, Haskins, Herbkersman, Hinson, Leach, Littlejohn, Loftis, Mahaffey, Martin, Phillips, Pinson, M.A. Pitts, Rhoad, Sandifer, Scarborough, F.N. Smith, G.M. Smith, J.R. Smith, Thompson, Toole, Tripp, Umphlett, Vaughn, White, Whitmire, Young, Bales, Lucas, Kirsh, Huggins, Brady, Hamilton, McGee and Stewart: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO IMPOSE AN ADDITIONAL TWO PERCENT SALES AND USE TAX, TO EXEMPT THE SALE OF UNPREPARED FOOD, TO PROVIDE AN ADDITIONAL EXEMPTION EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY FROM THE PROPERTY TAX, TO PROVIDE FOR THE MANNER, AMOUNT, AND CONDITIONS UNDER WHICH REVENUES IN THE HOMESTEAD EXEMPTION FUND SHALL BE DISBURSED TO PROPERTY TAXING ENTITIES OF THIS STATE, TO ADD SECTION 4-9-56 SO AS TO LIMIT THE MILLAGE PROPERTY TAXING ENTITIES OF THIS STATE MAY IMPOSE ON PROPERTY OTHER THAN OWNER-OCCUPIED RESIDENTIAL PROPERTY, TO REPEAL SECTIONS 12-37-223A, 12-37-270, 12-43-217, 12-43-250, 12-43-260, AND 12-43-295, ALL RELATING TO PROPERTY TAX.
(ABBREVIATED TITLE)
The Senate proceeded to a consideration of the Bill, the question being the adoption of Amendment No. P-14 (4449R022.LKG) proposed by Senators GROOMS and SHEHEEN and previously printed in the Journal of Thursday, April 20, 2006. Amendment No. P-14 was subsequently substituted with Amendment No. P-14A.
Senators GROOMS and SHEHEEN proposed the following Amendment (4449R022.LKG):
Amend the committee amendment, as and if amended, by striking the amendment and inserting:
// Amend bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Additional Sales, Use, and Casual Excise Tax
Section 12-36-1110. An additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter. The revenue collected pursuant this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."
SECTION 2. Section 12-24-10 of the 1976 Code is amended to read:
"Section 12-24-10. (A) In addition to all other recording fees, a recording fee is imposed for the privilege of recording a deed in which any lands and all improvements on the land, tenements, or other realty is transferred to another person. The fee is one-dollar eighty-five cents for each five hundred dollars, or fractional part of five hundred dollars, of the realty's value as determined by Section 12-24-30.
(B) In addition to all other recording fees and in addition to the fee described in subsection (A), there is imposed a recording fee for the privilege of recording a deed in which any lands and all improvements on the land, tenements, or other realty is transferred to another person. The additional fee is one dollar eighty-five cents for each five hundred dollars, or fractional part of five hundred dollars of the realty's value as determined by Section 12-24-30. Notwithstanding another provision of this chapter to the contrary, this additional recording fee imposed in this subsection must be deposited in the School Trust Fund established by Section 11-11-155."
SECTION 3. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-130. (A) In addition to all other property taxes imposed by law, there is imposed on all taxable property for every property tax year, a property tax at the rate of seventy-five mills. The revenue of this additional property tax must be remitted to the State Treasurer on the schedule and in the manner he directs and credited to the School Trust Fund established pursuant to Section 11-11-155. This additional property tax does not apply to residential real property described in Section 12-43-220(c).
(B) To the extent the millage imposed pursuant to subsection (A) of this section exceeds the millage imposed in a school district for school operations for fiscal year 2005-2006, there is allowed as a credit against the tax attributable to this millage an amount equal to the tax attributable to the difference in the millage rates."
SECTION 4. Article 17, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2425. In addition to the license tax on admissions imposed pursuant to Section 12-21-2420, there is an additional license tax of two percent imposed upon admissions. The additional license tax imposed by this section must be reported, paid, collected, and enforced in the same manner as the license tax imposed pursuant to Section 12-21-2420. The revenue collected pursuant to this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."
SECTION 5. Section 12-37-450 of the 1976 Code is amended to read:
"Counties and municipalities School districts must be reimbursed for the revenue lost by counties and municipalities as a result of the business inventory tax exemption based on the 1987 tax year millage and 1987 tax year assessed value of inventories in the counties and municipalities. If an amount of reimbursement to a political subdivision within a county is attributable to a separate millage for debt service for any purpose, when that debt is paid, the appropriate reimbursement amount must be redistributed proportionately to the other separate millages levied by the political subdivision within the county for the 1987 tax year. There is credited annually as provided in Section 11-11-150 to the School Trust Fund for Tax Relief ,established pursuant to Section 11-11-155, whatever amount is necessary to reimburse school districts fully all for the revenue lost by counties and municipalities the required amount. The Comptroller General shall make remittances of this reimbursement to school districts as provided in Section 11-11-155 counties and municipalities in four equal payments.
Notwithstanding any other provision of law, business inventory exempted from property taxation in the manner provided in this section is considered taxable property in an amount equal to the 1987 tax year assessed valuation for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State and for purposes of computing the "index of taxpaying ability" pursuant to item (3) of Section 59-20-20.
Where a portion of a special purpose district is annexed to a municipality, and its service functions in the annexed area are assumed by the municipality, the total amount remitted to the county and municipality under this section shall not exceed the total amount which would be remitted to the two entities separately. However, the assessed valuation and special purpose district tax levy for tax year 1987 with respect to the annexed portion of the special purpose district must be taken into consideration in determining the proportionate share of the total allocation due to the county and the municipality."
SECTION 6. Section 12-37-935(B) of the 1976 Code is amended to read:
"(B) Annually as provided in Section 11-11-150, there is credited to the School Trust Fund for Tax Relief ,established pursuant to Section 11-11-155, an amount sufficient to reimburse school districts for all local taxing entities the amount of revenue not collected by local taxing entities as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this section. No reimbursement is allowed for any depreciation allowed in connection with custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals and equipment used in the manufacture of tires by manufacturers who employ more than five thousand employees in this State and have over one billion dollars in capital investment in this State. Reimbursements must be paid from the fund in the manner provided in Section 11-11-155 12-37-270, mutatis mutandis."
SECTION 7. Section 11-11-150(A) of the 1976 Code is amended to read:
"(A) In calculating estimated state individual and corporate income tax revenues for a fiscal year the Board of Economic Advisors shall deduct amounts sufficient to pay the reimbursement required pursuant to:
(1) Section 12-37-251 for the residential property tax exemption;
(2) Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled;
(3) Section 12-37-935(B) for manufacturer's additional depreciation;
(4) Section 12-37-450 for the inventory tax exemption; and
(3 5) Section 4-10-540(A) for the reimbursement provided for personal property taxes not collected on private passenger motor
SECTION 8. Items (11) and (14) of Section 12-36-2120 of the 1976 Code are amended to read:
"(11)[Reserved](a) toll charges for the transmission of voice or messages between telephone exchanges;
(b) charges for telegraph messages;
(c) carrier access charges and customer access line charges established by the Federal Communications department or the South Carolina Public Service department; and
(d)transactions involving automatic teller machines;
(14) [Reserved]wrapping paper, wrapping twine, paper bags, and containers, used incident to the sale and delivery of tangible personal property;"
SECTION 9. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (A) For each fiscal year, the revenue from the tax imposed pursuant to Section 12-36-1110, the revenue derived from the additional deed transfer fee imposed pursuant to Section 12-24-10(B), the revenue of the property tax imposed pursuant to Section 12-37-130, the additional tax on admissions imposed pursuant to Section 12-21-2425, the amount credited pursuant to Sections 12-37-450 and 12-37-935(B), and all estimated additional sales, use, and casual excise tax revenue collected as a result of tax exemptions and tax caps deleted, revised, or repealed effective July 1, 2006, as determined by the Board of Economic Advisors, are automatically credited to a fund separate and distinct from the state general fund known as the 'School Tax Millage Exemption Trust Fund' (the School Trust Fund). Notwithstanding the provisions of Section 59-21-1010(A), the amount that would be credited to the general fund must be credited to the School Trust Fund. Notwithstanding the provisions of Section 59-21-1010(B), the amount that would be credited to the Education Improvement Act Fund must be credited to the School Trust Fund. The Board of Economic Advisors shall account for the School Trust Fund revenue separately from general fund revenues in reports to the Governor and the General Assembly. No portion of these revenues are credited to the Education Improvement Act (EIA) Fund.
(B) An unexpended balance in the School Trust Fund at the end of a fiscal year must remain in the School Trust Fund.
(C) Earnings on the School Trust Fund must be credited to the School Trust Fund.
(D) Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the School Trust Fund.
(E) The School Trust Fund must only be used for the purposes provided in Sections 12-6-3335 and 12-37-253."
SECTION 10. Article 25, Chapter 6 of the 1976 Code is amended by adding:
"Section 12-6- 3335. (A) As used in this section:
(1) 'Adjusted gross income' means adjusted gross income for federal income tax purposes reported by a property taxpayer in a taxable year to which must be added such income of other individuals in the household if not included in the federal adjusted gross income of the property taxpayer.
(2) 'Household' means the taxpayer's spouse and any dependent over the age of eighteen residing with the taxpayer in the residence.
(3) 'Residence' means residential real property classified for property tax purposes pursuant to Section 12-43-220(c).
(B) There is allowed as a credit against the tax imposed pursuant to Section 12-6-510 on a resident individual taxpayer a sum equal to the amount by which property tax paid during the taxable year by the taxpayer on the taxpayer's residence exceeds five percent of the taxpayer's adjusted gross income as defined in subsection (A)(1) of this section. After all other applicable credits have been applied, if the credit allowed pursuant to this section exceeds the state individual income tax liability of the claimant, the difference must be refunded to the claimant.
(C) A copy of the treasurer's receipt for the property tax paid must accompany the claim for the credit allowed pursuant to this section, together with other information the department may require for the proper administration of this credit.
(D) If a resident individual taxpayer or member of that taxpayer's household is not required to file a federal and South Carolina individual income tax return, the department shall prescribe abbreviated forms for the calculation of adjusted gross income which may be used by the claimant to claim the credit allowed by this section, and these separate forms are considered state individual income tax returns for all purposes.
(E) Regardless of the amount of property taxes paid or number of residences occupied by a claimant during the applicable taxable year, the credit allowed pursuant to this section only extends to property taxes paid on one residence.
(F) The credit allowed by this section must be funded by the School Trust Fund established pursuant to Section 11-11-155."
SECTION 11. Section 12-36-910 of the 1976 Code is amended by adding a new subsection at the end to read:
"(D) Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, the sales and use tax on the gross proceeds of sales or sales price of unprepared food, which lawfully can be purchased with United States Department of Agriculture food coupons, is five percent."
SECTION 12. Chapter 37 of Title 12 of the 1976 Code is amended by adding:
"Section 12-37-253. (A) The fair market value of all property classified pursuant to Section 12-43-220 is exempt from taxes imposed for school operating purposes. In the case of real property classified pursuant to Section 12-43-220(c), any remaining fair market value, after the exemption allowed pursuant to Section 12-37-250 and Section 12-37-251 is applied, otherwise subject to tax is exempt from all taxes imposed for school operating purposes. This section does not exempt the fair market value of property classified pursuant to Section 12-43-220 for taxes imposed for:
(1) bonded indebtedness for capital construction;
(2) to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction; and
(3) county and municipal operations.
(B) School districts must be reimbursed monthly from revenues credited to the School Trust Fund established pursuant to Section 11-11-155 for a fiscal year for revenue not received because of the exemptions allowed by this section. Reimbursements must be remitted to each school district based on the district's portion of the total weighted per pupil population for all districts based on the following weights:
(1) Kindergarten 1.30
(2) Primary 1.24
(3) Elementary 1.00
(4) High school 1.25
(5) Trainable Mentally Handicapped 2.04
(6) Speech Handicapped 1.90
(7) Homebound 2.10
(8) Emotionally Handicapped 2.04
(9) Educable Mentally Handicapped 1.74
(10) Learning Disabilities 1.74
(11) Hearing Handicapped 2.57
(12) Visually Handicapped 2.57
(13) Orthopedically Handicapped 2.04
(14) Vocational (Grades 9-12) 1.29
(15) Autism 2.57
(16) Qualify for Free or Reduced Lunch or Medicaid 1.30
The weighted per pupil population for each district must be determined by multiplying the average daily membership for each classification by the weight assigned to that classification and adding the totals for each classification.
(C) Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3).
(D) The exemption provided by this section applies for property taxes imposed by any property taxing entity if the revenues of taxes imposed by the entity are used directly or indirectly for school operations. Except, a property taxing entity may levy property taxes for school operations to compensate for the difference for any year that the property taxing entity would receive less revenue for school operations pursuant to this section than the property taxing entity collected in property tax year 2006 adjusted annually by a factor equal to the growth in the amount of annual revenue over the prior year credited to the School Trust Fund as determined by the Board of Economic Advisors. Any property tax levied pursuant to this subsection must not be levied against residential real property described in Section 12-43-220(c).
(E) In a county area in which is imposed the local option sales tax (LOST) pursuant to Article 1, Chapter 10 of Title 4 on or after July 1, 2005, where the credits allowed pursuant to that article exceed the property tax to which the credit applies, then the excess credit is deemed a distribution from the LOST County/Municipal Revenue Fund."
SECTION 13. This act takes effect January 1, 2007. For purposes of the tax exemption allowed and property tax imposed pursuant to Sections 12-37-253 and 12-37-130 of the 1976 Code as added by this act, apply for property tax years beginning after 2006 and motor vehicle tax years beginning after June 30, 2007. The income tax credit
Renumber sections to conform.
Amend title to conform.
Senator GROOMS argued in favor of the adoption of the amendment.
Senator GROOMS asked unanimous consent to make a motion to substitute Amendment No. P-14A for Amendment No. P-14.
There was no objection and P-14A was substituted as follows for Amendment No. P-14.
Senator GROOMS proposed the following Amendment No. P-14A (4449R027.LKG), which was tabled:
Amend the COMMITTEE AMENDMENT, as and if amended, by striking the amendment and inserting:
// Amend bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Additional Sales, Use, and Casual Excise Tax
Section 12-36-1110. An additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter. The revenue collected pursuant this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."
SECTION 2. Section 12-24-10 of the 1976 Code is amended to read:
"Section 12-24-10. (A) In addition to all other recording fees, a recording fee is imposed for the privilege of recording a deed in which any lands and all improvements on the land, tenements, or other realty is transferred to another person. The fee is one-dollar eighty-five cents for each five hundred dollars, or fractional part of five hundred dollars, of the realty's value as determined by Section 12-24-30.
(B) In addition to all other recording fees and in addition to the fee described in subsection (A), there is imposed a recording fee for the privilege of recording a deed in which any lands and all improvements on the land, tenements, or other realty is transferred to another person. The additional fee is one dollar eighty-five cents for each five hundred
SECTION 3. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-130. (A) In addition to all other property taxes imposed by law, there is imposed on all taxable property for every property tax year, a property tax at the rate of seventy-five mills. The revenue of this additional property tax must be remitted to the State Treasurer on the schedule and in the manner he directs and credited to the School Trust Fund established pursuant to Section 11-11-155. This additional property tax does not apply to residential real property described in Section 12-43-220(c).
(B) To the extent the millage imposed pursuant to subsection (A) of this section exceeds the millage imposed in a school district for school operations for fiscal year 2005-2006, there is allowed as a credit against the tax attributable to this millage an amount equal to the tax attributable to the difference in the millage rates."
SECTION 4. Article 17, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2425. In addition to the license tax on admissions imposed pursuant to Section 12-21-2420, there is an additional license tax of two percent imposed upon admissions. The additional license tax imposed by this section must be reported, paid, collected, and enforced in the same manner as the license tax imposed pursuant to Section 12-21-2420. The revenue collected pursuant to this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."
SECTION 5. Section 12-36-2110(A) of the 1976 Code, as last amended by Act 283 of 2000, is further amended to read:
"Section 12-36-2110. (A) The maximum tax imposed by this chapter is three hundred six hundred dollars for each sale made or lease executed after June 30, 1984, or lease executed after August 31, 1985 2006, of each:
(1) aircraft, including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft;
(2) motor vehicle;
(3) motorcycle;
(4) boat;
(5) trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, and horse trailers but not including house trailers or campers as defined in Section 56-3-710;
(6) recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel; or
(7) self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower.
In the case of a lease, the total tax rate required by law applies on each payment until the total tax paid equals three hundred six hundred dollars. Nothing in this section prohibits a taxpayer from paying the total tax due at the time of execution of the lease, or with any payment under the lease. To qualify for the tax limitation provided by this section, a lease must be in writing and specifically state the term of, and remain in force for, a period in excess of ninety continuous days."
SECTION 6. Section 12-37-450 of the 1976 Code is amended to read:
"Counties and municipalities School districts must be reimbursed for the revenue lost by counties and municipalities as a result of the business inventory tax exemption based on the 1987 tax year millage and 1987 tax year assessed value of inventories in the counties and municipalities. If an amount of reimbursement to a political subdivision within a county is attributable to a separate millage for debt service for any purpose, when that debt is paid, the appropriate reimbursement amount must be redistributed proportionately to the other separate millages levied by the political subdivision within the county for the 1987 tax year. There is credited annually as provided in Section 11-11-150 to the School Trust Fund for Tax Relief ,established pursuant to Section 11-11-155, whatever amount is necessary to reimburse school districts fully all for the revenue lost by counties and municipalities the required amount. The Comptroller General shall make remittances of this reimbursement to school districts as provided in Section 11-11-155 counties and municipalities in four equal payments.
Notwithstanding any other provision of law, business inventory exempted from property taxation in the manner provided in this section is considered taxable property in an amount equal to the 1987 tax year assessed valuation for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State and for
Where a portion of a special purpose district is annexed to a municipality, and its service functions in the annexed area are assumed by the municipality, the total amount remitted to the county and municipality under this section shall not exceed the total amount which would be remitted to the two entities separately. However, the assessed valuation and special purpose district tax levy for tax year 1987 with respect to the annexed portion of the special purpose district must be taken into consideration in determining the proportionate share of the total allocation due to the county and the municipality."
SECTION 7. Section 12-37-935(B) of the 1976 Code is amended to read:
"(B) Annually as provided in Section 11-11-150, there is credited to the School Trust Fund for Tax Relief ,established pursuant to Section 11-11-155, an amount sufficient to reimburse school districts for all local taxing entities the amount of revenue not collected by local taxing entities as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this section. No reimbursement is allowed for any depreciation allowed in connection with custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals and equipment used in the manufacture of tires by manufacturers who employ more than five thousand employees in this State and have over one billion dollars in capital investment in this State. Reimbursements must be paid from the fund in the manner provided in Section 11-11-155 12-37-270, mutatis mutandis."
SECTION 8. Section 11-11-150(A) of the 1976 Code is amended to read:
"(A) In calculating estimated state individual and corporate income tax revenues for a fiscal year the Board of Economic Advisors shall deduct amounts sufficient to pay the reimbursement required pursuant to:
(1) Section 12-37-251 for the residential property tax exemption;
(2) Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled;
(3) Section 12-37-935(B) for manufacturer's additional depreciation;
(4) Section 12-37-450 for the inventory tax exemption; and
(3 5) Section 4-10-540(A) for the reimbursement provided for personal property taxes not collected on private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors."
SECTION 9. Items (14) and (26) of Section 12-36-2120 of the 1976 Code are amended to read:
"(14) [Reserved]wrapping paper, wrapping twine, paper bags, and containers, used incident to the sale and delivery of tangible personal property;
(26) [Reserved]all supplies, technical equipment, machinery, and electricity sold to radio and television stations, and cable television systems, for use in producing, broadcasting, or distributing programs. For the purpose of this exemption, radio stations, television stations, and cable television systems are deemed to be manufacturers;"
SECTION 10. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (A) For each fiscal year, the revenue from the tax imposed pursuant to Section 12-36-1110, the revenue derived from the additional deed transfer fee imposed pursuant to Section 12-24-10(B), the revenue of the property tax imposed pursuant to Section 12-37-130, the additional tax on admissions imposed pursuant to Section 12-21-2425, the amount credited pursuant to Sections 12-37-450 and 12-37-935(B), and all estimated additional sales, use, and casual excise tax revenue collected as a result of tax exemptions and tax caps deleted, revised, or repealed effective July 1, 2006, as determined by the Board of Economic Advisors, are automatically credited to a fund separate and distinct from the state general fund known as the 'School Tax Millage Exemption Trust Fund' (the School Trust Fund). Notwithstanding the provisions of Section 59-21-1010(A), the amount that would be credited to the general fund must be credited to the School Trust Fund. Notwithstanding the provisions of Section 59-21-1010(B), the amount that would be credited to the Education Improvement Act Fund must be credited to the School Trust Fund. The Board of Economic Advisors shall account for the School Trust Fund revenue separately from general fund revenues in reports to the Governor and the General Assembly. No portion of these revenues are credited to the Education Improvement Act (EIA) Fund.
(B) An unexpended balance in the School Trust Fund at the end of a fiscal year must remain in the School Trust Fund.
(C) Earnings on the School Trust Fund must be credited to the School Trust Fund.
(D) Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the School Trust Fund.
(E) The School Trust Fund must only be used for the purposes provided in Sections 12-6-3335 and 12-37-253 and to provide funding in the annual general appropriations bill for the State Department of Education, the State Board for Technical and Comprehensive Education, the Wil Lou Gray Opportunity School, the South Carolina School for the Deaf and Blind, John de la Howe School, to fund debt service for capital improvement projects at these institutions, and to fund debt service on School Bonds."
SECTION 11. Article 25, Chapter 6 of the 1976 Code is amended by adding:
"Section 12-6- 3335. (A) As used in this section:
(1) 'Adjusted gross income' means adjusted gross income for federal income tax purposes reported by a property taxpayer in a taxable year to which must be added such income of other individuals in the household if not included in the federal adjusted gross income of the property taxpayer.
(2) 'Household' means the taxpayer's spouse and any dependent over the age of eighteen residing with the taxpayer in the residence.
(3) 'Residence' means residential real property classified for property tax purposes pursuant to Section 12-43-220(c).
(B) There is allowed as a credit against the tax imposed pursuant to Section 12-6-510 on a resident individual taxpayer a sum equal to the amount by which property tax paid during the taxable year by the taxpayer on the taxpayer's residence exceeds five percent of the taxpayer's adjusted gross income as defined in subsection (A)(1) of this section, if the taxpayer's adjusted gross income is less than $100,000. After all other applicable credits have been applied, if the credit allowed pursuant to this section exceeds the state individual income tax liability of the claimant, the difference must be refunded to the claimant.
(C) A copy of the treasurer's receipt for the property tax paid must accompany the claim for the credit allowed pursuant to this section, together with other information the department may require for the proper administration of this credit.
(D) If a resident individual taxpayer or member of that taxpayer's household is not required to file a federal and South Carolina individual income tax return, the department shall prescribe abbreviated forms for the calculation of adjusted gross income which may be used by the claimant to claim the credit allowed by this section, and these separate
(E) Regardless of the amount of property taxes paid or number of residences occupied by a claimant during the applicable taxable year, the credit allowed pursuant to this section only extends to property taxes paid on one residence.
(F) The credit allowed by this section must be funded by the School Trust Fund established pursuant to Section 11-11-155."
SECTION 12. Section 12-36-910 of the 1976 Code is amended by adding a new subsection at the end to read:
"(D) Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, the sales and use tax on the gross proceeds of sales or sales price of unprepared food, which lawfully can be purchased with United States Department of Agriculture food coupons, is five percent."
SECTION 13. Chapter 37 of Title 12 of the 1976 Code is amended by adding:
"Section 12-37-253. (A) The fair market value of all property classified pursuant to Section 12-43-220 is exempt from taxes imposed for school operating purposes. In the case of real property classified pursuant to Section 12-43-220(c), any remaining fair market value, after the exemption allowed pursuant to Section 12-37-250 and Section 12-37-251 is applied, otherwise subject to tax is exempt from all taxes imposed for school operating purposes. This section does not exempt the fair market value of property classified pursuant to Section 12-43-220 for taxes imposed for:
(1) bonded indebtedness for capital construction;
(2) to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction; and
(3) county and municipal operations.
(B) School districts must be reimbursed monthly from revenues credited to the School Trust Fund established pursuant to Section 11-11-155 for a fiscal year for revenue not received because of the exemptions allowed by this section. Each school district's allocation must be determined by the following formula:
(1) The calculated 135 day weighted pupil units (WPU) of the latest completed fiscal year inflated by a school district's three-year average WPU growth adjusted for the school districts poverty factor. The Budget and Control Board Office of Research and Statistics is
(a) Kindergarten 1.30
(b) Primary 1.24
(c) Elementary 1.00
(d) High school 1.25
(e) Trainable Mentally Handicapped 2.04
(f) Speech Handicapped 1.90
(g) Homebound 2.10
(h) Emotionally Handicapped 2.04
(i) Educable Mentally Handicapped 1.74
(j) Learning Disabilities 1.74
(k) Hearing Handicapped 2.57
(l) Visually Handicapped 2.57
(m) Orthopedically Handicapped 2.04
(n) Vocational (Grades 9-12) 1.29
(o) Autism 2.57
(p) Qualify for Free or Reduced Lunch or Medicaid 1.30
The Budget and Control Board Office of Research and Statistics must annually determine each district's total poverty factor weighting by calculating the school district's total number of students who are eligible for free or reduced lunch or Medicaid and multiplying by a weighting factor of 1.3.
(2) The school district's total weighted pupil units must then be multiplied by the estimated annual weighted funding amount determined pursuant to item (3).
(3) The annual weighted pupil funding amount is calculated by dividing the total amount of School Trust Fund revenue for the upcoming fiscal year, as estimated by the Board of Economic Advisors, by the statewide total of weighted pupil units for the upcoming fiscal year. In implementation years one through eight of this section, the annual weighted pupil funding must be calculated after deducting the districts' hold harmless amounts determined pursuant to item (4) from Board of Economic Advisors estimate of available School Trust Fund Revenue.
(4) In the first year of implementation of this section, a hold harmless amount must be computed for and distributed to each school district to prevent each school district from receiving less School Trust Fund revenue than the actual amount of revenue received by the school district in the base year. For purposes of this section, the base year is fiscal year 2005-2006, or the latest fiscal year for which total school
(a) Year one one hundred percent
(b) Year two ninety-five percent
(c) Year three ninety percent
(d) Year four eighty percent
(e) Year five seventy percent
(f) Year six fifty-five percent
(g) Year seven forty percent
(h) Year eight twenty percent
(i) Year nine zero percent
(5) The amount of School Trust Fund revenue distributed to a school district must be reduced by the amount of revenue received by the district for school operations as a result of a fee in lieu of agreement, pursuant to Chapter 12 of Title 4, in effect at the time of implementation of this section.
(6) All School Trust Fund Revenue collected in a fiscal year above the Board of Economic Advisors' estimate must be distributed equally to each school district based upon each district's proportion of weighted pupil units compared to the statewide total of weighted pupil units.
(C) Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3).
(D) The exemption provided by this section applies for property taxes imposed by any property taxing entity if the revenues of taxes imposed by the entity are used directly or indirectly for school operations.
(E) In a county area in which is imposed the local option sales tax (LOST) pursuant to Article 1, Chapter 10 of Title 4 on or after July 1, 2005, where the credits allowed pursuant to that article exceed the property tax to which the credit applies, then the excess credit is deemed a distribution from the LOST County/Municipal Revenue Fund."
SECTION 14. Chapter 10, Title 4 of the 1976 Code is amended by adding:
LOCAL OPTION SALES AND USE TAX
FOR LOCAL PROPERTY TAX EXEMPTION
Section 4-10-710. Subject to the requirements of this article, 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. The ordinance or the petition initiating an ordinance must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year. The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace property tax revenue in the county to exempt property classified pursuant to Section 12-43-220(c) from taxes imposed for any purpose, other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction. The governing body of the county shall obtain from the Board of Economic Advisors the board's certified estimate of the rate of sales and use tax necessary in the county to equal revenue derived for any purpose other than payment of bonded indebtedness and payments pursuant to a lease purchase agreement. This certified rate is the rate of tax that must appear in the referendum question.
Section 4-10-740. (A) Upon receipt of the ordinance, the county election commission shall conduct a referendum on the question of imposing the sales and use tax. A referendum for this purpose must be held at the time of the general election. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read substantially as follows:
'Must a (rate) sales and use tax be imposed in (county) to replace property tax revenues not collected in order to exempt owner-occupied property from property taxes imposed for any purpose other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction?
(C) All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'. If a majority of the votes cast are in favor of imposing the tax, the tax is imposed as provided in this article, and beginning after the fiscal year in which the referendum is held, all property classified pursuant to Section 12-43-220(c) is exempt from taxes imposed for any purpose, other than bonded indebtedness for capital construction and to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the results no later than December thirty-first to the county governing body and to the Department of Revenue.
(D) Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(E) Notwithstanding any other provision of this chapter, any referendum to impose the tax pursuant to this article must also include a referendum to rescind any other local sales and use tax previously imposed in the county. The ballot must include a separate question substantially similar to those provided in this chapter on each previously imposed local sales and use tax remaining in effect at the time of the referendum.
Section 4-10-750. (A) If the sales and use tax is approved in the referendum, the tax must be imposed by ordinance on the first of July following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.
(B) If the sales and use tax is not approved in the referendum, the county governing body by ordinance, or seven percent of the qualified electors of the county, by an initiated ordinance submitted to the governing body of the county, may provide for a subsequent referendum held in the manner provided pursuant to Section 4-10-740, but such a referendum may be held only at the time of the general election.
Section 4-10-760. (A) Upon petition of at least seven percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this
(B) The referendum question to be on the ballot must read substantially as follows:
'Must the (rate) sales and use tax imposed in (county) be rescinded with the revenue not collected replaced by extending the property tax to owner-occupied property?
(C)(1) All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'. If a majority of the votes cast are in favor of rescinding the tax, the tax is rescinded effective July first following the referendum and property taxes may be applied to the fair market value of property classified pursuant to Section 12-43-220(c) not otherwise exempt, beginning after the year in which the referendum is held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council. If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
(2) Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county. If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years. If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years. The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of
Section 4-10-770. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided for in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(D) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-780. The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations. The county treasure must distribute revenues to the various political subdivisions located within the county
Section 4-10-790. The Board of Economic Advisors shall furnish data to the State Treasurer and to the counties receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to counties upon request includes, but is not limited to, gross receipts, net taxable sales, tax liability by taxpayers, and estimates of revenue lost by each political subdivision in the county as a result of this article. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240."
SECTION 15. This act takes effect January 1, 2007. For purposes of the tax exemption allowed and property tax imposed pursuant to Sections 12-37-253 and 12-37-130 of the 1976 Code as added by this act, apply for property tax years beginning after 2006 and motor vehicle tax years beginning after June 30, 2007. The income tax credit provided by Section 12-6-3335 applies beginning with tax year 2006./
//
Renumber sections to conform.
Amend title to conform.
Senator GROOMS argued in favor of the adoption of the amendment.
Senator MARTIN moved that when the Senate adjourns today, it stand adjourned to meet at 10:00 A.M. on Wednesday, May 3, 2006, and to subsequently recede for the purposes of attending the Joint Assembly, and, upon the completion of the Joint Assembly, the Senate would reconvene at 2:00 P.M.
Senator THOMAS made a Parliamentary Inquiry as to whether or not the motion required unanimous consent.
The PRESIDENT Pro Tempore stated that under the provisions of Rule 1, setting the meeting time was not subject to unanimous consent; however, the motion setting the time to reconvene following the completion of the Joint Assembly would require unanimous consent.
Senator THOMAS spoke on the motion and objected to the motion setting the time to reconvene following the completion of the Joint Assembly.
Senator MARTIN moved that when the Senate adjourns today, it stand adjourned to meet at 10:00 A.M. on Wednesday, May 3, 2006.
The motion was adopted.
Senator GROOMS resumed arguing in favor of the adoption of Amendment No. P-14A.
Senator MARTIN argued contra to the adoption of the amendment.
Senator COURSON spoke on the amendment.
Senator GROOMS spoke on the amendment.
At 3:06 P.M., on motion of Senator GROOMS, with unanimous consent, the Senate receded from business not to exceed two minutes, with Senator GROOMS retaining the floor.
At 3:09 P.M., the Senate resumed.
Senator GROOMS resumed speaking on the amendment.
Senator MARTIN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Courson Cromer Drummond Elliott Gregory Hawkins Hayes Knotts Leatherman Lourie Martin Mescher Peeler Rankin Ritchie Scott Setzler Thomas
Anderson Bryant Campsen Ford Grooms Hutto Jackson Land Malloy Matthews McConnell Moore Patterson Pinckney Richardson Ryberg Sheheen Short Verdin Williams
The Senate refused to table the amendment. The question then was the adoption of the amendment.
Senator KNOTTS argued contra to the adoption of the amendment.
With Senator KNOTTS retaining the floor, Senator RICHARDSON asked unanimous consent to make a motion to table Amendment No. P-14A.
Senator SHORT objected.
Senator KNOTTS continued arguing contra to the adoption of the amendment.
Having voted on the prevailing side, Senator RICHARDSON asked unanimous consent to make a motion to reconsider the vote whereby the amendment was not tabled.
Senator SHEHEEN objected.
Senator KNOTTS continued arguing contra to the adoption of the amendment.
Senator LEATHERMAN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Cleary Courson Cromer Elliott Gregory Hawkins Hayes Knotts Leatherman Lourie Martin McGill Mescher O'Dell Peeler Rankin Ritchie Scott Setzler Thomas Williams
Anderson Bryant Campsen Drummond Fair Ford Grooms Hutto Jackson Land Malloy Matthews McConnell Moore * Patterson Pinckney Ryberg Sheheen Short Verdin
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
I voted against the Grooms Amendment (P-14A) because it mixes major issues, such as education reform, with property tax reform. One constitutional problem was discussed on the floor during the debate. When significant Bills are not digested in the committee process, very significant problems can result, as we just saw, from the constitutional flaw in the amendment. And to demonstrate that this is not merely my opinion, the South Carolina Taxpayer Association, as reported to the body by the Senator from Richland, Senator COURSON, is opposed to the amendment also because it is too complicated.
Senator KNOTTS proposed the following Amendment No. P-18A (JUD4449.047), which was tabled:
Amend the FINANCE COMMITTEE REPORT, as and if amended, by striking the report in its entirety and adding appropriately numbered PARTS and SECTIONS to read:
SECTION 1. A. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Section 12-36-1110. Beginning June 1, 2006, an additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter, except that this additional two percent tax does not apply to:
(1) amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients;
(2) items subject to a maximum sales and use tax pursuant to Section 12-36-2110; and
(3) unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons.
Section 12-36-1120. The revenue of the tax imposed by this article must be credited to the Homestead Exemption Fund established pursuant to Section 11-11-155.
Section 12-36-1130. The Department of Revenue may prescribe amounts that may be added to the sales price to reflect the additional tax imposed pursuant to this article."
B. Notwithstanding the rates of tax imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the sale price of unprepared food items eligible for purchase with United States Department of Agriculture food coupons, is two percent for such sales. Except where otherwise exempt, the local sales and use taxes authorized by law continue to apply to those sales subject to the reduced state rate of tax provided in this section.
C. The provisions of Section 4-10-350(F) and (G) of the 1976 Code apply mutatis mutandis with respect to the tax imposed pursuant to Article 11, Chapter 36, Title 12 of the 1976 Code as added by this section.
SECTION 2. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (1) For each fiscal year in which and after which this section takes effect, the revenue from the tax imposed pursuant to Section 12-36-1110, and an amount equal to the total of reimbursements paid pursuant to the provisions of Sections 12-37-251 and 12-37-270 in fiscal year 2005-2006 is automatically credited to a fund separate and distinct from the state general fund known as the 'Homestead Exemption Fund'. The Board of Economic Advisors shall account for the Homestead Exemption Fund revenue separately from general fund revenues, and the board shall make an annual estimate of the receipts by the Homestead Exemption Fund by February fifteenth of each year. This estimate shall be transmitted to the State Treasurer, Comptroller General, and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee. No portion of these revenues may be credited to the Education Improvement Act (EIA) Fund.
(2) There is established in the State Treasury the Homestead Exemption Fund Reserve (Reserve) as a fund separate and distinct from the Homestead Exemption Fund, the general fund of the State, and all other funds. Any revenue received from the imposition of the two percent additional sales and use tax imposed pursuant to Section 12-36-1110 for a fiscal year above what the Board of Economic Advisors estimated for that fiscal year must be transferred into the Reserve. Establishing this Reserve in the required amount is the second priority use of Homestead Exemption Fund revenues in a fiscal year. Balances in the Reserve at the end of a fiscal year remain in this Reserve. If revenues in the Homestead Exemption Fund available for reimbursements in a fiscal year are less than that amount as estimated by the Board of Economic Advisors for the fiscal year, the State Budget and Control Board must first apply so much of the Reserve as is necessary or available to offset the deficit before the balance may be paid from the state general fund. Secondly, to the extent monies are available in the Reserve after any transfers to the Homestead Exemption Fund to offset a deficit, these monies shall then be transferred by the Budget and Control Board to the state general fund to reimburse it for any distributions made to supplement reimbursements required to be made from the Homestead Exemption Fund.
(3) An unexpended balance in the Homestead Exemption Fund or Reserve Fund at the end of a fiscal year must remain in the Homestead Exemption Fund or Reserve Fund.
(4) Earnings on the Homestead Exemption Fund or Reserve Fund must be credited to the Homestead Exemption Fund or Reserve Fund.
(5) Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the Homestead Exemption Fund."
SECTION 3. A. Section 12-37-220(B) of the 1976 Code is amended by adding a new item at the end appropriately numbered to read:
"( )(a) Beginning with the year in which this item takes effect and to the extent not already exempt pursuant to Section 12-37-250, one hundred percent of the fair market value of owner-occupied residential property eligible for and receiving the special assessment ratio allowed owner-occupied residential property pursuant to Section 12-43-220(c) is exempt from all property taxes imposed for other than the repayment of general obligation debt.
(b) Notwithstanding any other provision of law, property exempted from property tax in the manner provided in this item is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State."( )(a) For property tax years beginning after 2006, one hundred percent of the fair market value of owner-occupied residential property eligible for and receiving the special assessment ratio allowed owner-occupied residential property pursuant to Section 12-43-220(c) is exempt from all property taxes."
SECTION 4. A. Section 12-43-220 of the 1976 Code, as last amended by Act 145 of 2005, is further amended by adding a new undesignated paragraph at the end of the section to read:
"As used in this section, fair market value with reference to real property means fair market value determined in the manner provided pursuant to Section 1A, Article X of the Constitution of this State and Section 12-37-932."
B. Section 12-43-210 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-43-210. (A) All property must be assessed uniformly and equitably throughout the State. The South Carolina Department of Revenue may promulgate regulations to ensure equalization which must be adhered to by all assessing officials in the State.
(B) No reassessment program may be implemented in a county unless all real property in the county, including real property classified as manufacturing property, is reassessed in the same year."
C. Section 1B of Act 406 of 2000 is amended to read:
"(B) The exemption amount of the homestead exemption allowed pursuant to Section 12-37-250 of the 1976 Code is raised from twenty to fifty thousand dollars for property tax year 2000 and thereafter, to be funded as provided herein. The amount appropriated to the Trust Fund for Tax Relief must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. For tax years after 2000, an amount sufficient to fund the exemption provided herein must be appropriated from the Tobacco Settlement Fund, before any reductions or withdrawals as may be provided by law, to the Trust Fund for Tax Relief and must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. Reserved."
D. Items (1) and (2) of Section 11-11-150(A) of the 1976 Code, as added by Act 419 of 1998, are amended to read:
"(1) Section 12-37-251 for the residential property tax exemption Reserved;
(2) Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled Reserved;"
E. Sections 12-37-251, 12-37-270, 12-43-217, 12-43-260, and 12-43-295, all of the 1976 Code, are repealed.
F. Section 12-37-223A of the 1976 Code is repealed.
SECTION 5. Assessors and other staff responsible for the assessment of property for ad valorem taxation purposes are required to receive nine hours of instruction each year in the laws applicable to assessment for ad valorem taxation, methods of valuating property, administration of the assessor's office and records of the assessor's office, and other functions related to the assessor's office. This instruction must be received from the Department of Revenue or other providers or courses approved by the Department of Revenue.
SECTION 6. (A) The sales tax exemptions in Section 12-36-2120 of the 1976 Code shall be reviewed by the General Assembly at its 2010 session and at its sessions every ten years thereafter.
(B)(1) There is established the Joint Sales Tax Exemptions Review Committee composed of seven members; three of whom must be members of the Senate appointed by the Chairman of the Senate Finance Committee, one of whom must be a member of the minority party; three of whom must be members of the House of Representatives appointed by the Chairman of the House Ways and Means Committee,
(2) In carrying out its responsibilities under this act, the committee shall:
(a) make a detailed and careful study of the State's sales tax exemptions, comparing South Carolina laws to other states;
(b) publish a comparison of the State's sales tax exemptions to other states' laws;
(c) recommend changes, and recommend introduction of legislation when appropriate;
(d) submit reports and recommendations annually to the Governor and the General Assembly regarding sales tax exemptions.
(3) In carrying out its responsibilities under this act, the committee may:
(a) hold public hearings;
(b) receive testimony of any employee of the State or any other witness who may assist the committee in its duties;
(c) call for assistance in the performance of its duties from any employee or agency of the State.
(4) The committee may adopt by majority vote rules not inconsistent with this act that it considers proper with respect to matters relating to the discharge of its duties under this section. Professional and clerical services for the committee must be made available from the staffs of the General Assembly, the Budget and Control Board, and the Department of Revenue. The members of the committee may not receive mileage, per diem, subsistence, or any form of compensation for their service on the committee.
SECTION 7. A. 1. Section 4-12-30(D)(2)(a)(i) and (ii) is amended to read:
"(i) for real property, using the original income tax basis for South Carolina income tax purposes without regard to depreciation, if real property is constructed for the fee or is purchased in an arm's length transaction; otherwise, the property must be reported at its fair market value for ad valorem property tax purposes as determined by appraisal. The fair market value estimate established for the first year
(ii) for personal property, using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to any extraordinary obsolescence."
2. Section 4-12-30(E) of the 1976 Code is amended to read:
"(E) Calculations pursuant to subsection (D)(2) must be made on the basis that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)."
B. Items (1) and (2) of Section 12-44-50(A) of the 1976 Code are amended to read:
"(1) During the exemption period, the sponsor shall pay, or be responsible for payment, to the county the annual fee payment in connection with the economic development property which has been placed in service, in an amount not less than the property taxes that would be due on the economic development property if it were taxable but using:
(a) an assessment ratio of not less than six percent, or four percent for those projects qualifying under the enhanced investment definition;
(b) a millage rate that is, either:
(i) fixed for the life of the fee; or
(ii) is allowed to increase or decrease every fifth year in step with the average cumulative actual millage rate applicable to the project based upon the preceding five-year period; and
(c) a fair market value for the economic development property:
(i) if real property is constructed for the fee or is purchased in an arm's length transaction, the fair market value of real property is determined by using the original income tax basis for South Carolina income tax purposes without regard to depreciation, otherwise the property must be reported at its fair market value for ad valorem property taxes as determined by appraisal. The fair market value estimate established for the first year of the fee remains the fair market value of the real property for the life of the fee;
(ii) fair market value for personal property is determined by using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to extraordinary obsolescence; and
(d) to establish the millage rate for purposes of subsection (A)(1)(b)(i) or the first five years millage under (A)(1)(b)(ii), the millage rate must be no lower than the cumulative property tax millage rate levied by, or on behalf of, all taxing entities within which the project is located on either:
(i) June thirtieth of the year preceding the calendar year in which the fee agreement is executed; or
(ii) the millage rate in effect on June thirtieth of the calendar year in which the fee agreement is executed.
(2) The fee calculation must be made so that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)."
SECTION 1. (A)(1) For the year 2007, property taxing entities of this State other than school districts must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the property taxing entity.
(2) Beginning January 1, 2008, property taxing entities of the State other than school districts must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the property taxing entity and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increase of a property taxing entity other than a school district as provided in subsection (C) for any year stated as a percentage shall be multiplied by the entity's reimbursement amount for the previous year to determine the total distribution to the entity for the year. No such property taxing entity shall receive less in reimbursements beginning in 2008 than it received in 2007.
(B)(1) For the year 2007, school districts of this State must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential
(2) Beginning January 1, 2008, school districts of this State must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the school district and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increases of the several school districts as provided in subsection (C) for any year shall be aggregated and the reimbursement increase a particular school district shall receive for that year shall be equal to an amount that is the school district's proportionate share of such funds based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act. No school district shall receive less in reimbursements beginning in 2008 than it received in 2007. For purposes of the reimbursement increases school districts receive under this item based on weighted pupil units determined pursuant to the Education Finance Act, an additional add-on weighting for students in poverty of 0.20 shall be included in the weightings provided in Section 59-20-40(1)(c) of the 1976 Code. The weighting for poverty shall provide additional revenues for students in kindergarten through grade twelve who qualify for Medicaid or who qualify for reduced or free lunches, or both. Revenues generated by this weighting must be used by districts and schools to provide services and research-based strategies for addressing academic or health needs of these students to ensure their future academic success, to provide summer school, reduced class size, after school programs, extended day, instructional materials, or any other research-based educational strategy to improve student academic performance. All amounts received by a district pursuant to the Education Finance Act must be expended only for classroom instruction and costs and expenses directly associated with classroom instruction.
(C) Beginning with the 2008 reimbursements to all property taxing entities of this State, these reimbursements must be increased on an annual basis by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as
(D) The percentage of population growth in any year for any property taxing entity entitled to reimbursements from the Homestead Exemption Fund shall be based on estimates for such growth in the county wherein the property taxing entity is located as determined by the Office of Research and Statistics of the Budget and Control Board. Where the property taxing entity encompasses areas in more than one county, the population growth in that entity shall be the average of the growth in each county weighted to reflect the existing population of the property taxing entity in that county as compared to the existing population of the property taxing entity as a whole.
(E) Upon the beginning of reimbursements to property taxing entities including school districts as provided in this Part, reimbursements for a particular year must be paid to the property taxing entities by August thirty-first of that year.
(F) Notwithstanding any other provision of this section, the reimbursements provided pursuant to this section apply for real property located in redevelopment project areas pursuant to the Tax Increment Financing Law and the Tax Increment Financing Act for counties and for real property subject to a redevelopment plan adopted before the effective date of this act, the reimbursements provided pursuant to this section must not be less than dollar for dollar for the duration of the plan.
SECTION 2. (A) For purposes of determining reimbursements to property taxing entities including school districts for taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act, ad valorem property tax revenue of a property taxing entity not collected as a result of a one percent local option sales tax or local sales tax imposed in the entity pursuant to state or local law shall nevertheless be considered collected for purposes of determining reimbursements under Part II of this act.
(B) Beginning June 1, 2007, funds derived from a one percent local sales tax or local option sales tax imposed in a jurisdiction pursuant to state or local law which are used to reduce ad valorem property taxes imposed on owner-occupied residential property, must be thereafter
SECTION 3. To the extent revenues in the Homestead Exemption Fund are insufficient to pay all reimbursements required by law, the difference must be paid from the state general fund.
SECTION 4. Chapter 9, Title 4 of the 1976 Code is amended by adding:
"Section 4-9-56. (A) Beginning with the year 2007, a property taxing entity in this State including a school district may not levy any ad valorem taxation on owner-occupied residential property to which the exemption provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act apply, with the exception of any levy for general obligation bonded debt purposes. A property taxing entity including school districts which violates this provision must have its aid-to-subdivisions allocations in future general appropriations acts reduced until the violation is cured. The millage levied by a property taxing entity for the year 2006 shall be the millage used to determine the property tax revenue lost as a result of the exemptions provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act.
(B) Beginning with the year 2007, a property taxing entity of this State including a school district may increase ad valorem property tax millage on all classes of real and personal property for general operating purposes, except owner-occupied residential property, above that levied for the previous year by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Any millage increase above this limitation requires a supermajority vote of the governing body of the entity entitled to levy property taxes defined as an affirmative vote by seventy-five percent of the total membership of the governing body of the entity. Seventy-five percent of the total membership of the governing body of the entity must be determined without rounding a fractional number into a whole number for the purpose of computing the required vote total.
If a property taxing entity does not increase millage by the maximum millage increase allowed pursuant to this subsection without a supermajority vote, the difference between the millage rate actually
In calculating the maximum annual millage increase that may be imposed without a supermajority vote, there must be added to the otherwise applicable total any unused millage from the preceding two tax years."
SECTION 1. Article 5, Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-415. (A) Except when a lower spending limit applies pursuant to Section 11-11-410, State appropriations for a fiscal year may not exceed appropriations authorized by the spending limitation prescribed in this section. State appropriations subject to the spending limitation are those appropriations authorized annually in the annual general appropriations act and any supplemental appropriations acts or joint resolutions for that fiscal year which fund general purposes. A statement of total 'General Revenues' must be included in the annual general appropriations act. As used in this section the appropriations limited as defined in this subsection must be those funded by 'General Revenues' as defined in the general appropriations act for fiscal year 2007-2008. All additional nonfederal and nonuser fee revenue items must be included in that category as they may be created by act of the General Assembly.
(B)(1) The limitation on State appropriations for a fiscal year as provided in subsection (A) is the greater of:
(a) base-year appropriations increased by a percentage equal to the annual percentage increase in state personal income for the most recently completed calendar year for which this figure is available; or
(b) base-year appropriations increased by a percentage equal to the state's growth in population applied ratably over the period of the decennial United States census assuming a rate of increase equal to the rate in the most recently completed United States census for which population figures are available over the next preceding census and a percentage equal to the increase, if any, in the consumer price index in the most recently ended calendar year, as determined by the Bureau of Labor Statistics of the United States Department of Labor.
(2) As used in this subsection:
(a) 'base-year appropriations' means general fund appropriations for the current fiscal year as of February fifteenth, including both recurring and nonrecurring revenues from whatever
(b) 'state personal income' means total personal income for a calendar year as determined by the Office of State Budget of the State Budget and Control Board based on the most recent data provided by the United States Department of Commerce.
(3) The Office of Research and Statistics of the State Budget and Control Board, upon approval by the State Economist and in consultation with the director of the board's Office of State Budget, shall calculate and provide the appropriate percentages for population, consumer price index, and state personal income growth to the Ways and Means Committee of the House of Representatives and the Senate Finance Committee no later than February fifteenth of each year.
(C) The Comptroller General shall notify the Governor, the Speaker of the House, and the President Pro Tempore of the Senate if the spending limit as contained in this section is exceeded. The General Assembly shall then take corrective action immediately upon meeting in the next regular session or a special session called for that purpose. This subsection does not apply to funds transferred from the general reserve fund to the general fund.
(D) Notwithstanding the provisions of subsection (A) of this section, the General Assembly may suspend the spending limitation for a fiscal year for a specific amount by a special vote as provided in this subsection by enactment of legislation.
The special vote referred to in this subsection means an affirmative recorded roll-call vote in each branch of the General Assembly by at least two-thirds of the total membership in each branch."
SECTION 2. Article 3, Chapter 1, Title 6 of the 1976 Code is amended by adding:
"Section 6-1-335. (A) The spending limit imposed on a local governing body pursuant to this section is in addition to and not in lieu of any other limit on spending or on the taxing power of a local governing body. Where a limit on spending by or on the taxing power of a local governing body imposed by the Constitution of this State or by general or local laws of this State imposes any limit resulting in a more restrictive spending limit than the limit imposed pursuant to this section, the more restrictive limit applies.
(B) The limit on all appropriations for a fiscal year by a local governing body, except for appropriations to service general obligation debt or for the purposes provided in Section 6-1-320(B) is the greater of:
(1) base-year appropriations increased by a percentage equal to the annual percentage increase in state personal income for the most recently completed calendar year for which this figure is available; or
(2) base-year appropriations increased by a percentage equal to the jurisdiction's growth in population applied ratably over the period of the decennial United States census assuming a rate of increase equal to the rate in the most recently completed United States census for which population figures are available over the next preceding census and a percentage equal to the increase, if any, in the consumer price index in the most recently ended calendar year, as determined by the Bureau of Labor Statistics of the United States Department of Labor. For a school district, the population increase portion of this calculation is replaced by the actual annual increase in the student enrollment for the most recent year for which that figure is available for the district.
(C) As used in this section:
(1) 'base-year appropriations' means appropriations for the current fiscal year as of February fifteenth, including both recurring and nonrecurring revenues from whatever source derived and regardless of the time the appropriations are effective except for appropriations for the purposes exempt from the limit pursuant to subsection (B) of this section. This total must be adjusted to reflect any mid-year appropriations reductions, however imposed, made, or scheduled as of February fifteenth; and
(2) 'state personal income' means total personal income for a calendar year as determined by the Office of State Budget of the State Budget and Control Board based on the most recent data provided by the United States Department of Commerce.
(D) The Office of Research and Statistics of the State Budget and Control Board, upon approval by the State Economist and in consultation with the director of the board's Office of State Budget, shall calculate and provide the appropriate percentages for population, consumer price index, and state personal income growth to the local governing body no later than February fifteenth of each year."
SECTION 3. The provisions of this Part take effect as provided in Part IV of this act and first apply for appropriations for fiscal years beginning after June 30, 2009.
SECTION 1. A. Section 11-27-30 of the 1976 Code, as last amended by Act 27 of 2001, is further amended by adding an item at the end to read:
"9. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the State or other associate of any kind of the State is deemed to be the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the State."
B. Section 11-27-40 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:
"10. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the political subdivision of the State or other associate of any kind of the political subdivision of the State is deemed to be the political subdivision of the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the political subdivision of the State."
C. Section 11-27-50 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:
"8. For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the school district or other associate of any kind of the school district is deemed to be the school district when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the school district."
D. The provisions of subsections A., B., and C. of this section apply with regard to all transfers made after July 1, 2006, to which these subsections apply.
SECTION 2. A. Section 12-37-670 of the 1976 Code is amended to read:
"Section 12-37-670. (A) Each owner of land on which any new structures have been erected which shall not have been appraised for taxation shall list them for taxation with the county auditor of the county in which they may be situate on or before the first day of March next after they shall become subject to taxation. No new structure shall be listed or assessed until it is completed and fit for the use for which it is intended.
(B)(1) Notwithstanding the provisions of subsection (A), a county governing body may by ordinance provide that an owner of land on
(2) Additional property tax attributable to improvements listed with the county auditor on or before June thirtieth is due for the period from July first to December thirty-first for that property year, and payable when taxes are due on the property for that property tax year. Additional property tax attributable to improvements listed with the county auditor after June thirtieth of the property tax year is due and payable when taxes are due on the property for the next property tax year.
(3) If a county governing body elects by ordinance to impose the provisions of this subsection, this election is also binding on all municipalities within the county imposing ad valorem property taxes."
B. Section 12-37-680 of the 1976 Code is repealed.
SECTION 3. Section 12-43-215 of the 1976 Code is amended to read:
"Section 12-43-215. (A) When owner-occupied residential property assessed pursuant to Section 12-43-220(c) is valued for purposes of ad valorem taxation, the value of the land must be determined on the basis that its highest and best use is for residential purposes.
(B) Each county must submit to the Department of Revenue an annual report, in a form to be determined by the department, listing the names and addresses of all residential property in the county which is classified as 'owner-occupied'."
SECTION 4. Chapter 20, Title 59 of the 1976 Code is amended by adding:
"Section 59-20-21. Beginning with the year 2007, the State Board of Education, in determining the minimum education program designed to meet students' needs, may only consider factors required by statutory law or which directly affect classroom learning, and the local maintenance of effort required of a school district must be based on these determinations."
SECTION 5. Chapter 20, Title 59 of the 1976 Code is amended by adding:
"Section 59-20-22. Notwithstanding a school district's index of taxpaying ability, the minimum state funds a district shall receive in any year is forty percent of the applicable year's base student cost."
SECTION 1. This act, except as otherwise provided herein and except for Parts III and IV, takes effect upon ratification of amendments to Article X of the Constitution of this State proposed at the general election of 2006 defining fair market value of real property as its fair market value when it's ownership last was transferred, increased by the value of improvements, and providing for an additional exemption from the property tax of one hundred percent of the fair market value of owner-occupied residential property. Parts III and IV of this act take effect upon approval by the Governor.
SECTION 2. Notwithstanding any other provision of law, a county governing body is authorized to conduct a referendum at the same time as the 2006 general election as to whether or not a local option sales tax presently imposed in that jurisdiction should be repealed. If the qualified electors of the county vote in favor of repealing the local option sales tax, the tax shall be repealed as of January 1, 2007. / //
Renumber sections to conform.
Amend title to conform.
Senator KNOTTS explained the amendment.
Senator MARTIN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Anderson Drummond Elliott Ford Gregory Hayes Hutto Jackson Land Leatherman Lourie Malloy Martin Matthews
McGill Mescher O'Dell Patterson Pinckney Sheheen Williams
Bryant Campsen Cleary Courson Cromer Fair Hawkins Knotts McConnell Moore Peeler Rankin Reese Richardson Ryberg Scott Setzler Thomas Verdin
The amendment was laid on the table.
On motion of Senator PEELER, debate was interrupted by adjournment.
I voted to table Amendment No. P-18A to H. 4449 because of the federal income tax repercussions on South Carolinians. According to research conducted by our state's Chief Economist, for every $1 of property tax for sales tax swap in South Carolina, we, the citizens, pay a premium of 16% to the federal government in Washington and there is no guarantee that we will ever see these funds return to our State. I am in favor of property tax relief and co-chaired the special subcommittee that studied this issue in depth. I voted for and support the two Constitutional amendments that will be on the ballot for the voters to decide this November -- the reassessment cap and the local government millage cap. In addition I supported the Finance Committee amendment, which is a 1/2 cent sales tax property tax swap. In my opinion, most of the property tax issues facing our people will be handled by the passage of the two Constitutional amendments and I urge my fellow citizens to support the passage of these issues.
Senator CROMER desired to be recorded as voting against the motion to adjourn.
On motion of Senator SETZLER, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mrs. Elizabeth Tharp of Columbia, S.C., beloved wife of James T. Tharp, owner of McCrory Construction Company.
At 4:45 P.M., on motion of Senator PEELER, the Senate adjourned to meet tomorrow at 10:00 A.M.
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