S*409 Session 112 (1997-1998)
S*0409(Rat #0196, Act #0138 of 1997) General Bill, By Drummond, Bryan, Ford,
Hayes, Holland, Hutto, Jackson, Land, Lander, Leventis, Martin, Matthews,
McGill, Moore, O'Dell, Patterson, Peeler, Rankin, Reese, Saleeby, Short,
Waldrep and D. Williams
A BILL TO AMEND SECTION 4-9-55, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING
TO ENACTMENT OF GENERAL LAWS AFFECTING COUNTIES' EXPENDITURES AND REVENUE
RAISING, SO AS TO DELETE CERTAIN EXCEPTIONS, AND PROVIDE THAT A PROVISION OF,
OR AMENDMENT TO, AN APPROPRIATION BILL THAT CONTAINS A PERMANENT OR TEMPORARY
PROVISION OF LAW MUST BE ADOPTED BY A SEPARATE VOTE OF THE GENERAL ASSEMBLY,
BUT ONCE A PROVISION OR AMENDMENT TO AN APPROPRIATION BILL IS ADOPTED, THE
VOTE TO ADOPT OR REJECT AN APPROPRIATION BILL ON SECOND READING, THIRD
READING, OR ADOPTION OF THE CONFERENCE COMMITTEE OR FREE CONFERENCE COMMITTEE
REPORT IS NOT SUBJECT TO THESE PROVISIONS; TO DESIGNATE SECTIONS 4-10-10
THROUGH 4-10-100 AS ARTICLE 1 OF CHAPTER 10 OF TITLE 4 AND TO ENTITLE THE
ARTICLE "LOCAL OPTION SALES TAX"; TO AMEND CHAPTER 10, TITLE 4, RELATING TO
LOCAL SALES AND USE TAX, BY ADDING ARTICLE 3 SO AS TO ENACT THE "CAPITAL
PROJECT SALES TAX ACT"; TO DESIGNATE SECTIONS 6-1-10 THROUGH 6-1-110 AS
ARTICLE 1 OF CHAPTER 1 OF TITLE 6 AND TO ENTITLE THE ARTICLE "GENERAL
PROVISIONS; TO AMEND SECTION 6-1-70, RELATING TO LOCAL GOVERNMENT, PROVISIONS
APPLICABLE TO SPECIAL PURPOSE DISTRICTS AND OTHER POLITICAL SUBDIVISIONS, AND
REAL ESTATE TRANSFER FEES, SO AS TO DELETE CERTAIN PROVISIONS, PROVIDE THAT
THE GOVERNING BODY OF EACH COUNTY, MUNICIPALITY, SCHOOL DISTRICT OR SPECIAL
PURPOSE DISTRICT MAY NOT IMPOSE ANY FEE OR TAX OF ANY NATURE OR DESCRIPTION ON
THE TRANSFER OF REAL PROPERTY UNLESS THE GENERAL ASSEMBLY HAS EXPRESSLY
AUTHORIZED BY GENERAL LAW THE IMPOSITION OF THE FEE OR TAX, AND PROVIDE THAT A
MUNICIPALITY THAT ORIGINALLY ENACTED A REAL ESTATE TRANSFER FEE PRIOR TO
JANUARY 1, 1991, MAY IMPOSE AND COLLECT A REAL ESTATE TRANSFER FEE BY
ORDINANCE REGARDLESS OF WHETHER IMPOSITION OF THE FEE WAS DISCONTINUED FOR A
PERIOD AFTER JANUARY 1, 1991; TO PROVIDE THAT LOCAL GOVERNING BODIES THAT
ENACTED AND COLLECTED FEES ON TRANSFERS OF REAL ESTATE ARE ALLOWED TO USE
THOSE FUNDS FOR THEIR ORIGINALLY INTENDED SPECIFIC LOCAL PURPOSES AND ARE NOT
REQUIRED TO REMIT ANY OF THESE REVENUES TO THE STATE, AND REQUIRE THE STATE
TREASURER TO RETURN ANY REAL ESTATE TRANSFER FEES WHICH HAVE BEEN REMITTED TO
THE TREASURER'S OFFICE TO THE LOCAL GOVERNING BODY WHICH REMITTED THOSE FUNDS
SO THAT THE FUNDS MAY BE USED FOR THEIR ORIGINALLY INTENDED SPECIFIC LOCAL
PURPOSES; TO AMEND THE 1976 CODE BY ADDING SECTION 6-1-85 SO AS TO PROVIDE,
AMONG OTHER THINGS, THAT THE STATE BUDGET AND CONTROL BOARD, DIVISION OF
BUDGET AND ANALYSES SHALL MONITOR AND REVIEW THE TAX BURDEN BORNE BY THE
CLASSES OF PROPERTY LISTED IN ARTICLE X, SECTION 1 OF THE STATE CONSTITUTION
AND SHALL DEVELOP A METHODOLOGY TO DETERMINE AND ESTIMATE TAX INCIDENCE, AND
PROVIDE THAT A TAX INCIDENCE STATEMENT, PREPARED BY THE DIVISION OF BUDGET
ANALYSES, MUST BE ATTACHED TO ANY LEGISLATIVE BILL OR RESOLUTION THAT HAS THE
POTENTIAL TO CAUSE A SHIFT IN TAX INCIDENCE; TO AMEND CHAPTER 1, TITLE 6,
RELATING TO LOCAL GOVERNMENT AND PROVISIONS OF LAW APPLICABLE TO SPECIAL
PURPOSE DISTRICTS AND OTHER POLITICAL SUBDIVISIONS, BY ADDING ARTICLE 3 SO AS
TO PROVIDE WITH RESPECT TO THE AUTHORITY OF LOCAL GOVERNMENTS TO ASSESS TAXES
AND FEES, INCLUDING THE PROVISION, AMONG OTHERS, THAT A LOCAL GOVERNMENTAL
BODY MAY NOT IMPOSE A NEW TAX AFTER DECEMBER 31, 1996, UNLESS SPECIFICALLY
AUTHORIZED BY THE GENERAL ASSEMBLY; TO AMEND CHAPTER 1, TITLE 6, RELATING TO
LOCAL GOVERNMENT AND PROVISIONS OF LAW APPLICABLE TO SPECIAL PURPOSE DISTRICTS
AND OTHER POLITICAL SUBDIVISIONS, BY ADDING ARTICLE 5 SO AS TO ENACT THE
"LOCAL ACCOMMODATIONS TAX ACT"; TO AMEND CHAPTER 6, TITLE 1, RELATING TO LOCAL
GOVERNMENT AND PROVISIONS OF LAW APPLICABLE TO SPECIAL PURPOSE DISTRICTS AND
OTHER POLITICAL SUBDIVISIONS, BY ADDING ARTICLE 7 SO AS TO ENACT THE "LOCAL
HOSPITALITY TAX ACT"; AND TO PROVIDE THAT ANY ORDINANCE ENACTED BY A COUNTY OR
MUNICIPALITY BEFORE MARCH 15, 1997, IMPOSING AN ACCOMMODATIONS FEE WHICH DOES
NOT EXCEED THE THREE PERCENT MAXIMUM CUMULATIVE RATE PRESCRIBED IN SECTION
6-1-540, IS CALCULATED UPON A BASE CONSISTENT WITH SECTION 6-1-510(1), AND THE
REVENUE FROM WHICH IS USED FOR THE PURPOSES ENUMERATED IN SECTION 6-1-530,
REMAINS AUTHORIZED AND EFFECTIVE AFTER THE EFFECTIVE DATE OF THIS ACT AND THE
ENACTING COUNTY OR MUNICIPALITY IS AUTHORIZED TO ISSUED BONDS UTILIZING THE
PROCEDURES OF SECTION 4-29-68 FOR THE PURPOSES ENUMERATED IN SECTION 6-1-530
AND TO RETIRE THAT DEBT USING THE PROCEEDS OF SUCH AN ACCOMMODATIONS FEE
ORDINANCE AND THE PLEDGE OF OTHER NONTAX REVENUES AS MAY BE AVAILABLE FOR
THOSE PURPOSES.-AMENDED TITLE
02/25/97 Senate Introduced and read first time SJ-8
02/25/97 Senate Referred to Committee on Finance SJ-8
03/12/97 Senate Committee report: Favorable with amendment
Finance SJ-21
04/01/97 Senate Special order SJ-27
04/02/97 Senate Debate interrupted SJ-25
04/30/97 Senate Read second time SJ-64
04/30/97 Senate Ordered to third reading with notice of
amendments SJ-64
05/15/97 Senate Amended SJ-52
05/15/97 Senate Read third time and sent to House SJ-52
05/20/97 House Introduced and read first time HJ-8
05/20/97 House Referred to Committee on Judiciary HJ-9
05/27/97 House Committee report: Favorable with amendment
Judiciary HJ-5
05/29/97 House Point of order- fiscal impact statement needed HJ-18
05/29/97 House Requests for debate-Rep(s). Baxley, D. Smith,
Harrison, Limbaugh, Simrill, Edge, Young,
Allison, Kennedy, Whipper, Altman, Woodrum &
Neal HJ-84
05/29/97 House Debate interrupted HJ-107
06/03/97 House Amended HJ-137
06/03/97 House Read second time HJ-144
06/03/97 House Roll call Yeas-94 Nays-18 HJ-144
06/04/97 House Read third time and returned to Senate with
amendments HJ-47
06/04/97 Senate Concurred in House amendment and enrolled SJ-17
06/09/97 Ratified R 196
06/13/97 Signed By Governor
06/13/97 Effective date 07/01/97, except as otherwise provided
07/09/97 Copies available
07/09/97 Act No. 138
(A138, R196, S409)
AN ACT TO AMEND SECTION 4-9-55, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO ENACTMENT OF
GENERAL LAWS AFFECTING COUNTIES' EXPENDITURES AND
REVENUE RAISING, SO AS TO DELETE CERTAIN EXCEPTIONS,
AND PROVIDE THAT A PROVISION OF, OR AMENDMENT TO,
AN APPROPRIATION BILL THAT CONTAINS A PERMANENT OR
TEMPORARY PROVISION OF LAW MUST BE ADOPTED BY A
SEPARATE VOTE OF THE GENERAL ASSEMBLY, BUT THAT
ONCE A PROVISION OR AMENDMENT TO AN APPROPRIATION
BILL IS ADOPTED, THE VOTE TO ADOPT OR REJECT AN
APPROPRIATION BILL ON SECOND READING, THIRD READING,
OR ADOPTION OF THE CONFERENCE COMMITTEE OR FREE
CONFERENCE COMMITTEE REPORT IS NOT SUBJECT TO THESE
PROVISIONS; TO DESIGNATE SECTIONS 4-10-10 THROUGH
4-10-100 AS ARTICLE 1 OF CHAPTER 10 OF TITLE 4 AND TO
ENTITLE THE ARTICLE "LOCAL OPTION SALES TAX";
TO AMEND CHAPTER 10, TITLE 4, RELATING TO LOCAL SALES
AND USE TAX, BY ADDING ARTICLE 3 SO AS TO ENACT THE
"CAPITAL PROJECT SALES TAX ACT"; TO
DESIGNATE SECTIONS 6-1-10 THROUGH 6-1-110 AS ARTICLE 1
OF CHAPTER 1 OF TITLE 6 AND TO ENTITLE THE ARTICLE
"GENERAL PROVISIONS"; TO AMEND SECTION
6-1-70, RELATING TO LOCAL GOVERNMENT, PROVISIONS
APPLICABLE TO SPECIAL PURPOSE DISTRICTS AND OTHER
POLITICAL SUBDIVISIONS, AND REAL ESTATE TRANSFER
FEES, SO AS TO DELETE CERTAIN PROVISIONS, PROVIDE THAT
THE GOVERNING BODY OF EACH COUNTY, MUNICIPALITY,
SCHOOL DISTRICT, OR SPECIAL PURPOSE DISTRICT MAY NOT
IMPOSE ANY FEE OR TAX OF ANY NATURE OR DESCRIPTION
ON THE TRANSFER OF REAL PROPERTY UNLESS THE
GENERAL ASSEMBLY HAS EXPRESSLY AUTHORIZED BY
GENERAL LAW THE IMPOSITION OF THE FEE OR TAX, AND
PROVIDE THAT A MUNICIPALITY THAT ORIGINALLY
ENACTED A REAL ESTATE TRANSFER FEE PRIOR TO JANUARY
1, 1991, MAY IMPOSE AND COLLECT A REAL ESTATE
TRANSFER FEE BY ORDINANCE REGARDLESS OF WHETHER
IMPOSITION OF THE FEE WAS DISCONTINUED FOR A PERIOD
AFTER JANUARY 1, 1991; TO PROVIDE THAT LOCAL
GOVERNING BODIES THAT ENACTED AND COLLECTED FEES
ON TRANSFERS OF REAL ESTATE ARE ALLOWED TO USE
THOSE FUNDS FOR THEIR ORIGINALLY INTENDED SPECIFIC
LOCAL PURPOSES AND ARE NOT REQUIRED TO REMIT ANY OF
THESE REVENUES TO THE STATE, AND REQUIRE THE STATE
TREASURER TO RETURN ANY REAL ESTATE TRANSFER FEES
WHICH HAVE BEEN REMITTED TO THE TREASURER'S OFFICE
TO THE LOCAL GOVERNING BODY WHICH REMITTED THOSE
FUNDS SO THAT THE FUNDS MAY BE USED FOR THEIR
ORIGINALLY INTENDED SPECIFIC LOCAL PURPOSES; TO
AMEND THE 1976 CODE BY ADDING SECTION 6-1-85 SO AS TO
PROVIDE, AMONG OTHER THINGS, THAT THE STATE BUDGET
AND CONTROL BOARD, DIVISION OF BUDGET AND ANALYSES,
SHALL MONITOR AND REVIEW THE TAX BURDEN BORNE BY
THE CLASSES OF PROPERTY LISTED IN ARTICLE X, SECTION
1 OF THE STATE CONSTITUTION AND SHALL DEVELOP A
METHODOLOGY TO DETERMINE AND ESTIMATE TAX
INCIDENCE, AND PROVIDE THAT A TAX INCIDENCE
STATEMENT, PREPARED BY THE DIVISION OF BUDGET
ANALYSES, MUST BE ATTACHED TO ANY LEGISLATIVE BILL
OR RESOLUTION THAT HAS THE POTENTIAL TO CAUSE A
SHIFT IN TAX INCIDENCE; TO AMEND CHAPTER 1, TITLE 6,
RELATING TO LOCAL GOVERNMENT AND PROVISIONS OF
LAW APPLICABLE TO SPECIAL PURPOSE DISTRICTS AND
OTHER POLITICAL SUBDIVISIONS, BY ADDING ARTICLE 3 SO
AS TO PROVIDE WITH RESPECT TO THE AUTHORITY OF LOCAL
GOVERNMENTS TO ASSESS TAXES AND FEES, INCLUDING THE
PROVISION, AMONG OTHERS, THAT A LOCAL
GOVERNMENTAL BODY MAY NOT IMPOSE A NEW TAX AFTER
DECEMBER 31, 1996, UNLESS SPECIFICALLY AUTHORIZED BY
THE GENERAL ASSEMBLY; TO AMEND CHAPTER 1, TITLE 6,
RELATING TO LOCAL GOVERNMENT AND PROVISIONS OF
LAW APPLICABLE TO SPECIAL PURPOSE DISTRICTS AND
OTHER POLITICAL SUBDIVISIONS, BY ADDING ARTICLE 5 SO
AS TO ENACT THE "LOCAL ACCOMMODATIONS TAX
ACT"; TO AMEND CHAPTER 6, TITLE 1, RELATING TO
LOCAL GOVERNMENT AND PROVISIONS OF LAW APPLICABLE
TO SPECIAL PURPOSE DISTRICTS AND OTHER POLITICAL
SUBDIVISIONS, BY ADDING ARTICLE 7 SO AS TO ENACT THE
"LOCAL HOSPITALITY TAX ACT"; AND TO PROVIDE
THAT ANY ORDINANCE ENACTED BY A COUNTY OR
MUNICIPALITY BEFORE MARCH 15, 1997, IMPOSING AN
ACCOMMODATIONS FEE WHICH DOES NOT EXCEED THE
THREE PERCENT MAXIMUM CUMULATIVE RATE PRESCRIBED
IN SECTION 6-1-540, IS CALCULATED UPON A BASE
CONSISTENT WITH SECTION 6-1-510(1), AND THE REVENUE
FROM WHICH IS USED FOR THE PURPOSES ENUMERATED IN
SECTION 6-1-530, REMAINS AUTHORIZED AND EFFECTIVE
AFTER THE EFFECTIVE DATE OF THIS ACT AND THE
ENACTING COUNTY OR MUNICIPALITY IS AUTHORIZED TO
ISSUE BONDS UTILIZING THE PROCEDURES OF SECTION
4-29-68 FOR THE PURPOSES ENUMERATED IN SECTION 6-1-530
AND TO RETIRE THAT DEBT USING THE PROCEEDS OF SUCH
AN ACCOMMODATIONS FEE ORDINANCE AND THE PLEDGE OF
OTHER NONTAX REVENUES AS MAY BE AVAILABLE FOR
THOSE PURPOSES.
Be it enacted by the General Assembly of the State of South Carolina:
Exceptions deleted; separate vote of General Assembly; etc.
SECTION 1. Section 4-9-55 of the 1976 Code is amended to read:
"Section 4-9-55. (A) A county may not be bound by any
general law requiring it to spend funds or to take an action requiring the
expenditure of funds unless the General Assembly has determined that the
law fulfills a state interest and the law requiring the expenditure is
approved by two-thirds of the members voting in each house of the
General Assembly provided a simple majority of the members voting in
each house is required if one of the following applies:
(1) funds have been appropriated that have been estimated by the
Division of Budget and Analyses at the time of enactment to be sufficient
to fund the expenditures;
(2) the General Assembly authorizes or has authorized a county to
enact a funding source not available for the county on July 1, 1993, that
can be used to generate the amount of funds estimated to be sufficient to
fund the expenditure by a simple majority vote of the governing body of
the county;
(3) the expenditure is required to comply with a law that applies to
all persons similarly situated, including the state and local governments;
(4) the law is either required to comply with a federal requirement
or required for eligibility for a federal entitlement.
(B) Except upon approval of each house of the General Assembly by
two-thirds of the members voting in each house, the General Assembly
may not enact, amend, or repeal any general law if the anticipated effect
of doing so would be to reduce the authority that counties have to raise
revenues in the aggregate, as the authority exists on July 1, 1993.
(C) The provisions of this section do not apply to:
(1) laws enacted to require funding of pension benefits existing on
the effective date of this section;
(2) laws relating to the judicial department;
(3) criminal laws;
(4) election laws;
(5) the Department of Education;
(6) laws reauthorizing but not expanding then-existing statutory
authority;
(7) laws having a fiscal impact of less than ten cents per capita on
a statewide basis; laws creating, modifying, or repealing noncriminal
infractions.
(D) The duties, requirements, and obligations imposed by general laws
in effect on July 1, 1993, are not suspended by the provisions of this
section.
(E) A provision of, or amendment to, an appropriation bill that
contains a permanent or temporary provision of law must be adopted by
a separate vote of the General Assembly in the manner provided in
subsections (A) through (D) of this section. Provided, however, that once
a provision or amendment to an appropriation bill is adopted, the vote to
adopt or reject an appropriation bill on second reading, third reading, or
adoption of the conference committee or free conference committee report
is not subject to the provisions of subsections (A) through (D) of this
section."
Article created, entitled
SECTION 2. Sections 4-10-10 through 4-10-100 of the 1976 Code are
hereby designated as Article 1, entitled "Local Option Sales
Tax".
"Capital Project Sales Tax Act" enacted
SECTION 3. Chapter 10, Title 4 of the 1976 Code is amended by
adding:
"Article 3
Capital Project Sales Tax Act
Section 4-10-300. Short title.
This article may be cited as the 'Capital Project Sales Tax Act'.
Section 4-10-310. Imposition of tax.
Subject to the requirements of this article, the county governing body
may impose a one percent sales and use tax by ordinance, subject to a
referendum, within the county area for a specific purpose or purposes and
for a limited amount of time to collect a limited amount of money. The
revenues collected pursuant to this article may be used to defray debt
service on bonds issued to pay for projects authorized in this article.
However, at no time may any portion of the county area be subject to
more than one percent sales tax levied pursuant to this article, pursuant to
Chapter 37 of Title 4, or pursuant to any local law enacted by the General
Assembly.
Section 4-10-320. Commission creation; composition.
(A) The governing body of any county is authorized to create a
commission subject to the provisions of this section. The commission
consists of six members, all of whom must be residents of the county,
appointed as follows:
(1) The governing body of the county must appoint three members
of the commission.
(2) The municipalities in the county must appoint three members,
who must be residents of incorporated municipalities within the county,
and who are selected according to the following mechanism:
(a) The total population of all incorporated municipalities within
the county, as determined by the most recent United States census, must
be divided by three, the result being an apportionate average.
(b) The respective population of each municipality in the county
must be divided by the apportionate average to determine an appointive
index.
(c) Each municipality in the county appoints a number of
members to the commission equal to the whole number indicated by their
appointive index. However, no single municipality may appoint more than
two members to the commission; unless there is only one municipality in
the county, and in such case the municipality is entitled to three
appointments to the commission.
(d) When less than three members are selected to the commission
in accordance with the prescribed appointive index method, the remaining
member or members must be selected in a joint meeting of the
commission appointees of the municipalities in the county. The member
or members must be chosen from among the residents of the
municipalities in the county that before this time have not provided a
representative for the commission.
(e) In the event no municipality is entitled to appoint a member
to the commission pursuant to the formula in subitem (c) of this
subsection, the municipality with the highest appointive index must be
deemed to have an appointive index of one.
(B) When the governing body of any county creates a commission, it
must be created in accordance with the procedures specified in subsection
(A) and only upon the request of the governing body of the county. If
within the thirty-day period following the adoption of a resolution to
create the commission, one or more of the municipalities fails or refuses
to appoint their proportionate number of members to the commission, the
county governing body must appoint an additional number of members
equal to the number that any such municipality is entitled to appoint. A
vacancy on the commission must be filled in the manner of the original
appointment.
(C) The commission created pursuant to this section must consider
proposals for funding capital projects within the county area. The
commission then formulates the referendum question that is to appear on
the ballot pursuant to Section 4-10-330(D).
Section 4-10-330. Contents of ballot question; purpose for which
proceeds of tax to be used.
(A) The sales and use tax authorized by this article is imposed by an
enacting ordinance of the county governing body containing the ballot
question formulated by the commission pursuant to subsection
4-10-320(C), subject to referendum approval in the county. The ordinance
must specify:
(1) the purpose for which the proceeds of the tax are to be used,
which may include projects located within or without, or both within and
without, the boundaries of the local governmental entities, including the
county, municipalities, and special purpose districts located in the county
area, and may include the following types of projects:
(a) highways, roads, streets, and bridges;
(b) courthouses, administration buildings, civic centers, hospitals,
emergency medical facilities, police stations, fire stations, jails,
correctional facilities, detention facilities, libraries, coliseums, or any
combination of these projects;
(c) cultural, recreational, or historic facilities, or any combination
of these facilities;
(d) water, sewer, or water and sewer projects;
(e) flood control projects and storm water management facilities;
(f) jointly operated projects of the county, a municipality, special
purpose district, and school district, or any combination of those entities,
for the projects delineated in subitems (a) through (e) of this subsection;
(g) any combination of the projects described in subitems (a)
through (f) of this item;
(2) the maximum time, stated in terms of calendar or fiscal years or
quarters, or a combination thereof, not to exceed seven years from the
date of imposition, for which the tax may be imposed;
(3) the maximum cost of the project or facilities funded from
proceeds of the tax and the maximum amount of net proceeds to be raised
by the tax; and
(4) any other condition precedent, as determined by the
commission, to the imposition of the sales and use tax authorized by this
article or condition or restriction on the use of sales and use tax revenue
collected pursuant to this article.
(B) When the tax authorized by this article is imposed for more than
one purpose, the enacting ordinance must set forth the priority in which
the net proceeds are to be expended for the purposes stated. The enacting
ordinance may set forth a formula or system by which multiple projects
are funded simultaneously.
(C) Upon receipt of the ordinance, the county election commission
must conduct a referendum on the question of imposing the sales and use
tax in the area of the county that is to be subject to the tax. If the
ordinance is received prior to October 1, 1997, a referendum for this
purpose may be held on Tuesday, November 4, 1997; however, if the
ordinance is received on October 1, 1997, or thereafter, a referendum for
this purpose must be held at the time of the general election. Two weeks
before the referendum the election commission must publish in a
newspaper of general circulation the question that is to appear on the
ballot, with the list of projects and the cost of the projects. This notice is
in lieu of any other notice otherwise required by law.
(D) The referendum question to be on the ballot must read
substantially as follows:
'Must a special one percent sales and use tax be imposed in (county) for
not more than (time) to raise the amounts specified for the following
purposes?
(1) $______ for _________
(2) $______ for _________
(3) etc.
Yes []
No []'
(E) All qualified electors desiring to vote in favor of imposing the tax
for the stated purposes shall vote 'yes' and all qualified electors opposed
to levying the tax shall vote 'no'. If a majority of the votes cast are in favor
of imposing the tax, then the tax is imposed as provided in this article and
the enacting ordinance. A subsequent referendum on this question must
be held on the date prescribed in subsection (C). The election commission
shall conduct the referendum under the election laws of this State, mutatis
mutandis, and shall certify the result no later than December thirty-first
to the county governing body and to the Department of Revenue.
Expenses of the referendum must be paid by the governmental entities
that would receive the proceeds of the tax in the same proportion that
those entities would receive the net proceeds of the tax.
(F) Upon receipt of the returns of the referendum, the county
governing body must, by resolution, declare the results thereof. In such
event, the results of the referendum, as declared by resolution of the
county governing body, are not open to question except by a suit or
proceeding instituted within thirty days from the date such resolution is
adopted.
Section 4-10-340. Tax imposition and termination.
(A) If the sales and use tax is approved in the referendum, the tax is
imposed on the first of May following the date of the referendum. If the
certification is not timely made to the Department of Revenue, the
imposition is postponed for twelve months.
(B) The tax terminates on the earlier of:
(1) the final day of the maximum time period specified for the
imposition; or
(2) the end of the calendar month during which the Department of
Revenue determines that the tax has raised revenues sufficient to provide
the net proceeds equal to or greater than the amount specified in the
referendum question.
(C) Amounts collected in excess of the required net proceeds must first
be applied, if necessary, to complete a project for which the tax was
imposed; otherwise, the excess funds must be credited to the general fund
of the governmental entities receiving the proceeds of the tax, in the
proportion which they received the net proceeds of the tax while it was
imposed.
Section 4-10-350. Department of Revenue to administer and collect
local tax.
(A) The tax levied pursuant to this article must be administered and
collected by the Department of Revenue in the same manner that other
sales and use taxes are collected. The department may prescribe amounts
that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local
sales and use taxes and applies to the gross proceeds of sales in the
applicable area that is subject to the tax imposed by Chapter 36 of Title
12 and the enforcement provisions of Chapter 54 of Title 12. The gross
proceeds of the sale of items subject to a maximum tax in Chapter 36 of
Title 12 are exempt from the tax imposed by this article. The tax imposed
by this article also applies to tangible personal property subject to the use
tax in Article 13, Chapter 36 of Title 12.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36 of
Title 12 must identify the county, municipality, or both, in which the
personal property purchased at retail is stored, used, or consumed in this
State.
(D) Utilities are required to report sales in the county, municipality, or
both, in which the consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920, who
owns or manages rental units in more than one county, municipality, or
combination thereof, must report separately in his sales tax return the total
gross proceeds from business done in each county or municipality.
(F) The gross proceeds of sales of tangible personal property delivered
after the imposition date of the tax levied under this article in a county,
either under the terms of a construction contract executed before the
imposition date, or a written bid submitted before the imposition date,
culminating in a construction contract entered into before or after the
imposition date, are exempt from the sales and use tax provided in this
article if a verified copy of the contract is filed with the Department of
Revenue within six months after the imposition date of the sales and use
tax provided for in this article.
(G) Notwithstanding the imposition date of the sales and use tax
authorized pursuant to this chapter, with respect to services that are billed
regularly on a monthly basis, the sales and use tax authorized pursuant to
this article is imposed beginning on the first day of the billing period
beginning on or after the imposition date.
Section 4-10-360. Revenue remitted to State Treasurer and held in a
separate fund.
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 in the county area in which the tax is
imposed and the revenues must be used only for the purposes stated in the
imposition ordinance. The State Treasurer may correct misallocations by
adjusting subsequent distributions, but these adjustments must be made
in the same fiscal year as the misallocations.
Section 4-10-370. Calculating distributions to counties;
confidentiality.
The Department of Revenue shall furnish data to the State Treasurer
and to the county treasurers receiving revenues for the purpose of
calculating distributions and estimating revenues. The information that
must be supplied to counties and municipalities upon request includes, but
is not limited to, gross receipts, net taxable sales, and tax liability by
taxpayers. Information about a specific taxpayer is considered
confidential and is governed by the provisions of Section 12-54-240. A
person violating this section is subject to the penalties provided in Section
12-54-240."
Article created, entitled
SECTION 4. Sections 6-1-10 through 6-1-110 of the 1976 Code are
hereby designated as Article 1, entitled "General Provisions".
No local fee or tax on real estate transfers; exception; etc.
SECTION 5. A. Section 6-1-70 of the 1976 Code is amended to
read:
"Section 6-1-70. (A) The governing body of each county,
municipality, school district, or special purpose district may not impose
any fee or tax of any nature or description on the transfer of real property
unless the General Assembly has expressly authorized by general law the
imposition of the fee or tax.
(B) A municipality that originally enacted a real estate transfer fee
prior to January 1, 1991, may impose and collect a real estate transfer fee,
by ordinance, regardless of whether imposition of the fee was
discontinued for a period after January 1, 1991."
B. The local governing bodies that enacted and collected fees on
transfers of real estate are allowed to use those funds for their originally
intended specific local purposes and are not required to remit any of those
revenues to the State. The State Treasurer is directed to return any real
estate transfer fees which have been remitted to his office to the local
governing body which remitted those funds so the funds may be used for
their originally intended specific local purposes.
Monitor, review of tax burden borne by certain classes of property;
etc.
SECTION 6. Chapter 1, Title 6 of the 1976 Code is amended by
adding:
"Section 6-1-85. (A) The Budget and Control Board, Division
of Budget and Analyses, shall monitor and review the tax burden borne
by the classes of property listed in Article X, Section 1 of the State
Constitution. To determine the tax burden of each class of property, the
Division of Budget and Analyses may use a ratio that compares total
property taxes paid by the property class divided by the total fair market
value of the property class. The Department of Revenue shall provide to
the Division of Budget and Analyses the information on assessed values
and fair market values of properties as collected in accordance with
Section 59-20-20(3).
(B) The Budget and Control Board, Division of Budget and Analyses,
shall develop a methodology to determine and estimate tax incidence. A
tax incidence statement, prepared by the Division of Budget and
Analyses, must be attached to any bill or resolution that has the potential
to cause a shift in tax incidence. The tax incidence refers to the ultimate
payer of a tax.
(C) The Budget and Control Board, Division of Budget and Analyses,
may consult with outside experts with respect to fulfilling the
requirements of subsections (A) and (B) of this section.
(D) Reports of the Budget and Control Board, Division of Budget and
Analyses required under this section must be published and reported to
the Governor, the members of the Budget and Control Board, the
members of the General Assembly and made available to the
public."
Local governments' authority to assess taxes, fees
SECTION 7. Chapter 1, Title 6 of the 1976 Code is amended by
adding:
"Article 3
Authority of Local Governments to Assess Taxes and
Fees
Section 6-1-300. Definitions.
As used in the article:
(1) 'Consumer price index' means the consumer price index for
all-urban consumers published by the U.S. Department of Labor. In the
event of a revision of the consumer price index, the index that is most
consistent with the consumer price index for all-urban consumers as
calculated in 1996 must be used.
(2) 'Intergovernmental transfer of funding responsibility' means an
act, resolution, court order, administrative order, or other action by a
higher level of government that requires a lower level of government to
use its own funds, personnel, facilities, or equipment.
(3) 'Local governing body' means the governing body of a county,
municipality, or special purpose district. As used in Section 6-1-320 only,
local governing body also refers to the body authorized by law to levy
school taxes.
(4) 'New tax' is a tax that the local governing body had not enacted
as of December 31, 1996.
(5) 'Positive majority' means a vote for adoption by the majority of
the members of the entire governing body, whether present or not.
However, if there is a vacancy in the membership of the governing body,
a positive majority vote of the entire governing body as constituted on the
date of the final vote on the imposition is required.
(6) 'Service or user fee' means a charge required to be paid in return
for a particular government service or program made available to the
payer that benefits the payer in some manner different from the members
of the general public not paying the fee. 'Service or user fee' also includes
'uniform service charges'.
(7) 'Specifically authorized by the General Assembly' means an
express grant of power:
(a) in a prior act;
(b) by this act; or
(c) in a future act.
Section 6-1-310. Prohibition on imposition of new local taxes.
A local governing body may not impose a new tax after December 31,
1996, unless specifically authorized by the General Assembly.
Section 6-1-315. Limitation on imposition or increase of business
license tax.
By ordinance adopted by a positive majority vote, a local governing
body may impose a business license tax or increase the rate of a business
license tax, authorized by Sections 4-9-30(12) and 5-7-30.
Section 6-1-320. Millage rate increase limitation; exceptions.
(A) Notwithstanding Section 12-37-251(E), a local governing body
may only increase the millage rate imposed for general operating purposes
above the rate imposed for such purposes for the prior tax year to the
extent of the increase in the consumer price index for the preceding fiscal
year. However, in the year in which a reassessment program is
implemented, the rollback millage, as calculated pursuant to Section
12-37-251(E), must be used in lieu of the previous year's millage rate.
(B) Notwithstanding the limitation upon millage rate increases
contained in subsection (A), the millage rate limitation may be suspended
and the millage rate may be increased for the following purposes:
(1) in response to a natural, environmental, or other disaster as
declared by the Governor;
(2) to offset a prior year's deficit, as required by Section 7, Article
X of the South Carolina Constitution;
(3) to raise the revenue necessary to comply with judicial mandates
requiring the use of county or municipal funds, personnel, facilities, or
equipment;
(4) to meet the minimum required local Education Finance Act
inflation factor as projected by the State Budget and Control Board,
Division of Research and Statistics, and the per pupil maintenance of
effort requirement of Section 59-21-1030, if applicable.
(C) The millage rate limitation provided for in subsection (A) of this
section may be overridden and the millage rate may be further increased
by a positive majority vote of the appropriate governing body. The vote
must be taken at a specially-called meeting held solely for the purpose of
taking a vote to increase the millage rate. The governing body must
provide public notice of the meeting notifying the public that the
governing body is meeting to vote to override the limitation and increase
the millage rate. Public comment must be received by the governing body
prior to the override vote.
(D) The restriction contained in this section does not affect millage
that is levied to pay bonded indebtedness or payments for real property
purchased using a lease-purchase agreement or used to maintain a reserve
account. Nothing in this section prohibits the use of energy-saving
performance contracts as provided in Section 48-52-670.
(E) Notwithstanding any provision contained herein, this article does
not and may not be construed to amend or to repeal the rights of a
legislative delegation to set or restrict school district millage, and this
article does not and may not be construed to amend or to repeal any caps
on school millage provided by current law or statute or limitation on the
fiscal autonomy of a school district as currently in existing law.
(F) The positive majority vote of the governing body required by this
section does not apply to school districts that have their budgets approved
by qualified electors at a town meeting.
Section 6-1-330. Local fee imposition limitations.
(A) A local governing body, by ordinance approved by a positive
majority, is authorized to charge and collect a service or user fee. A local
governing body must provide public notice of any new service or user fee
being considered and the governing body is required to hold a public
hearing on any proposed new service or user fee prior to final adoption of
any new service or user fee. Public comment must be received by the
governing body prior to the final reading of the ordinance to adopt a new
service or user fee. A fee adopted or imposed by a local governing body
prior to December 31, 1996, remains in force and effect until repealed by
the enacting local governing body, notwithstanding the provisions of this
section.
(B) The revenue derived from a service or user fee imposed to finance
the provision of public services must be used to pay costs related to the
provision of the service or program for which the fee was paid. If the
revenue generated by a fee is five percent or more of the imposing entity's
prior fiscal year's total budget, the proceeds of the fee must be kept in a
separate and segregated fund from the general fund of the imposing
governmental entity.
(C) If a governmental entity proposes to adopt a service or user fee to
fund a service that was previously funded by property tax revenue, the
notice required pursuant to Section 6-1-80 must include that fact in the
text of the published notice."
"Local Accommodations Tax Act" enacted
SECTION 8. Title 6, Chapter 1 of the 1976 Code is amended by
adding:
"Article 5
Local Accommodations Tax
Section 6-1-500. Short title.
This article may be cited as the 'Local Accommodations Tax Act'.
Section 6-1-510. Definitions.
As used in this article:
(1) 'Local accommodations tax' means a tax on the gross proceeds
derived from the rental or charges for accommodations furnished to
transients as provided in Section 12-36-920(A) and which is imposed on
every person engaged or continuing within the jurisdiction of the
imposing local governmental body in the business of furnishing
accommodations to transients for consideration.
(2) 'Local governing body' means the governing body of a county
or municipality.
(3) 'Positive majority' means a vote for adoption by the majority of
the members of the entire governing body, whether present or not.
However, if there is a vacancy in the membership of the governing body,
a positive majority vote of the entire governing body as constituted on the
date of the final vote on the imposition is required.
Section 6-1-520. Imposition of local accommodations tax.
(A) A local governing body may impose, by ordinance, a local
accommodations tax, not to exceed three percent. However, an ordinance
imposing the local accommodations tax must be adopted by a positive
majority vote. The governing body of a county may not impose a local
accommodations tax in excess of one and one-half percent within the
boundaries of a municipality without the consent, by resolution, of the
appropriate municipal governing body.
(B) All proceeds from a local accommodations tax must be kept in a
separate fund segregated from the imposing entity's general fund. All
interest generated by the local accommodations tax fund must be credited
to the local accommodations tax fund.
Section 6-1-530. Use of revenue from local accommodations tax.
(A) The revenue generated by the local accommodations tax must be
used exclusively for the following purposes:
(1) tourism-related buildings, including, but not limited to, civic
centers, coliseums, and aquariums;
(2) cultural, recreational, or historic facilities;
(3) beach access and renourishment;
(4) highways, roads, streets, and bridges providing access to tourist
destinations;
(5) advertisements and promotions related to tourism development;
or
(6) water and sewer infrastructure to serve tourism-related demand.
(B) In a county in which at least nine hundred thousand dollars in
accommodations taxes is collected annually pursuant to Section
12-36-920, the revenues of the local accommodations tax authorized in
this article may also be used for the operation and maintenance of those
items provided in (A)(1) through (6) including police, fire protection,
emergency medical services, and emergency-preparedness operations
directly attendant to those facilities.
Section 6-1-540. Cumulative rate of local accommodations tax. The
cumulative rate of county and municipal local accommodations taxes for
any portion of the county area may not exceed three percent, unless the
cumulative total of such taxes were in excess of three percent prior to
December 31, 1996, in which case the cumulative rate may not exceed the
rate that was imposed as of December 31, 1996.
Section 6-1-550. Local accommodations tax revenue upon
annexation.
In an area of the county where the county has imposed a local
accommodations tax that is annexed by a municipality, the municipality
must receive only that portion of the revenue generated in excess of the
county local accommodations tax revenue for the previous twelve months
in the area annexed.
Section 6-1-560. Real estate agents required to report when rental
property listing dropped.
Real estate agents, brokers, corporations, or listing services required to
remit taxes under this section must notify the appropriate local
governmental entity or entities if rental property, previously listed by
them, is dropped from their listings."
"Local Hospitality Tax Act" enacted
SECTION 9. Chapter 1, Title 6 of the 1976 Code is amended by
adding:
"Article 7
Local Hospitality Tax
Section 6-1-700. Short title.
This article may be cited as the 'Local Hospitality Tax Act'.
Section 6-1-710. Definitions.
As used in the article:
(1) 'Local governing body' means the governing body of a county
or municipality.
(2) 'Local hospitality tax' is a tax on the sales of prepared meals and
beverages sold in establishments or sales of prepared meals and beverages
sold in establishments licensed for on-premises consumption of alcoholic
beverages, beer, or wine.
(3) 'Positive majority' means a vote for adoption by the majority of
the members of the entire governing body, whether present or not.
However, if there is a vacancy in the membership of the governing body,
a positive majority vote of the entire governing body as constituted on the
date of the final vote on the imposition is required.
Section 6-1-720. Imposition of local hospitality tax.
(A) A local governing body may impose, by ordinance, a local
hospitality tax not to exceed two percent of the charges for food and
beverages. However, an ordinance imposing the local hospitality tax must
be adopted by a positive majority vote. The governing body of a county
may not impose a local hospitality tax in excess of one percent within the
boundaries of a municipality without the consent, by resolution, of the
appropriate municipal governing body.
(B) All proceeds from a local hospitality tax must be kept in a separate
fund segregated from the imposing entity's general fund. All interest
generated by the local hospitality tax fund must be credited to the local
hospitality tax fund.
Section 6-1-730. Use of revenue from local hospitality tax.
(A) The revenue generated by the hospitality tax must be used
exclusively for the following purposes:
(1) tourism-related buildings, including, but not limited to, civic
centers, coliseums, and aquariums;
(2) cultural, recreational, or historic facilities;
(3) beach access and renourishment;
(4) highways, roads, streets, and bridges providing access to tourist
destinations;
(5) advertisements and promotions related to tourism development;
or
(6) water and sewer infrastructure to serve tourism-related demand.
(B) In a county in which at least nine hundred thousand dollars in
accommodations taxes is collected annually pursuant to Section
12-36-920, the revenues of the hospitality tax authorized in this article
may be used for the operation and maintenance of those items provided
in (A)(1) through (6) including police, fire protection, emergency medical
services, and emergency-preparedness operations directly attendant to
those facilities.
Section 6-1-740. Cumulative rate of local hospitality tax.
The cumulative rate of county and municipal hospitality taxes for any
portion of the county area may not exceed two percent, unless the
cumulative total of such taxes was in excess of two percent or were
authorized to be in excess of two percent prior to December 31, 1996, in
which case the cumulative rate may not exceed the rate that was imposed
or adopted as of December 31, 1996.
Section 6-1-750. Local hospitality tax revenue upon annexation.
In an area of the county where the county has imposed a local
hospitality tax that is annexed by a municipality, the municipality must
receive only that portion of the revenue generated in excess of the county
local hospitality tax revenue for the previous twelve months in the area
annexed."
Ordinances prior to March 15, 1997, calculation; revenue; etc.
SECTION 10. Notwithstanding any provision of this act, any ordinance
enacted by a county or municipality prior to March 15, 1997, imposing an
accommodations fee which does not exceed the three percent maximum
cumulative rate prescribed in Section 6-1-540, is calculated upon a base
consistent with Section 6-1-510(1), and the revenue from which is used
for the purposes enumerated in Section 6-1-530, remains authorized and
effective after the effective date of this act and the enacting county or
municipality is authorized to issue bonds, pursuant to Article X, Section
14(10) of the Constitution of this State, utilizing the procedures of Section
4-29-68, for the purposes enumerated in Section 6-1-530, and to retire
such debt using the proceeds of such an accommodations fee ordinance
and the pledge of such other nontax revenues as may be available for
those purposes.
Time effective
SECTION 11. Upon approval by the Governor, this act takes effect July
1, 1997, except as otherwise provided.
Approved the 13th day of June, 1997. |