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"Section 12-37-257. (A) In addition to any other homestead exemption allowed by law, the amount of fair market value provided in subsection (B) of every homestead qualifying for the assessment ratio provided pursuant to Section 12-43-220(c) is exempt from all school taxes except school taxes levied for:

(2) payments for lease-purchases of school facilities; and

(3) additional school taxes for operating purposes levied for property tax years beginning after 1997.

(B) Amounts of fair market value exempt pursuant to subsection (A) are as follows:

Property Tax Year Exempt Amount

1994 $ 5,400

1995 21,000

1996 54,000

After 1996 one hundred

percent of fair

market value

(C) (1) The exemption allowed by this section is conditional on full funding of the Education Finance Act and on an appropriation by the General Assembly each year reimbursing school districts an amount equal to the Department of Revenue and

Taxation's estimate of total school tax revenue loss resulting from the exemption in the next fiscal year. If the appropriation for a year is less than the certified estimate, the department shall calculate a proportionate reduction in the exemption amount otherwise applicable sufficient to eliminate any loss of revenue to school districts. The department shall notify the appropriate county tax officials of the reduced exemption and the reduced exemption amount applies instead of the amount provided in Subsection (B) for the appropriate tax year.
(2) The Department of Revenue and Taxation shall provide to the General Assembly and the Governor annually before December fifteenth a certified estimate of the total amount necessary to reimburse school districts for tax revenue not collected because of the exemption allowed by this section in the next fiscal year.

(3) (a) From the general fund of the State, the Comptroller General annually shall pay to the county treasurer of each county for the account of each school district in the county a sum equal to the taxes not collected for the school district because of the exemption provided in this section. The county treasurer shall furnish the Comptroller General on or before April first following the tax year, or during an extension authorized by the Comptroller General not to exceed sixty days, an accounting or statement as prescribed by the Comptroller General that reflects the amount of school district taxes not collected because of the exemption. Funds paid by the Comptroller General as the result of an erroneous or improper application must be returned to the Comptroller General for deposit to the

(b) If reimbursement funds appropriated at least equal the estimated amount and the appropriated amount is insufficient to offset the revenue loss, the Comptroller General, from the general fund of the State, shall reimburse school districts the total reimbursement required regardless of the amount appropriated.

(D) Notwithstanding any other provision of law, the fair market value of a homestead 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)."
(B) The provisions of Section 12-37-257(C)(2), as added by this act, first apply for property tax year 1995 and fiscal year 1995-96.

SUBSECTION 2. Beginning with county government spending for fiscal year 1995-96, total spending by a county government in a fiscal year may not exceed total county government spending in the prior fiscal year by more than the percentage increase in the consumer price index in the twelve months ending December 31 preceding the fiscal year as determined by the Bureau of Labor Statistics of the United States Department of Labor. Total spending by a county government for purposes of this limitation is the total of all county government spending in a fiscal year from all sources of funds and for all purposes, but total county government spending does not include:

(1) spending in an amount not exceeding the amount represented by applying the county's tax millage for the most recently completed property tax year to the assessed value of new construction and improvements to existing property not previously taxed;

(2) spending of fee revenues generated by income-producing services first extended to customers in the current fiscal year;

(3) spending of funds derived from state or federal sources and spending of local sales and use tax revenues distributed to the county pursuant to Chapter 10, Title 4 of the 1976 Code;

(4) a capital expenditure financed without borrowing using funds derived from any source other than county property taxes;

(5) spending for debt service;

(6) spending to offset a prior year deficit; and

(7) spending approved by at least a two-thirds vote of the governing body of the county.

(1) spending in an amount not exceeding the amount represented by applying the municipality's tax millage for the most recently completed property tax year to the assessed value of new construction and improvements to existing property not previously taxed;

(2) spending of fee revenues generated by income-producing services first extended to customers in the current fiscal year;

(3) spending of funds derived from state or federal sources and spending of local sales and use tax revenues distributed to the municipality pursuant to Chapter 10, Title 4 of the 1976 Code;

(4) a capital expenditure financed without borrowing using funds derived from any source other than county property taxes;

(5) spending for debt service;

(6) spending to offset a prior year deficit; and

(7) spending approved by at least a two-thirds vote of the governing body of the municipality.

SUBSECTION 4. Beginning with special purpose or public service district spending for fiscal year 1995-96, total spending by a special purpose or public service district in a fiscal year may not exceed total special purpose or public service district spending in the prior fiscal year by more than the percentage increase in the consumer price index in the twelve months ending December 31 preceding the fiscal year as determined by the Bureau of Labor Statistics of the United States Department of Labor. Total spending by a special purpose or public service district for purposes of this limitation is the total of special purpose or public service district spending in a fiscal year from all sources of funds and for all purposes, but does not include:

(1) spending in an amount not exceeding the amount represented by applying the district's tax millage for the most recently completed property tax year to the assessed value of new construction and improvements to existing property not previously taxed;

(3) spending of funds derived from state or federal sources;

(4) a capital expenditure financed without borrowing using funds derived from any source other than county property taxes;

(5) spending for debt service;

(6) spending to offset a prior year deficit; and

(7) spending approved by at least a two-thirds vote of the governing body of the district.

SUBSECTION 5. Beginning with school district ad valorem tax revenues for operating purposes for school year 1995-96, total revenues of a school district from ad valorem taxes levied for operating purposes for a school year may not exceed the total of such revenues in the prior school year by more than the Education Finance Act inflation factor applicable for the current school year. However, the limitation on revenues imposed by this section does not apply to:

(1) ad valorem tax revenues in an amount represented by applying the school district's tax millage for the most recently completed tax year to the assessed value of new construction and improvements to existing property in the district not previously taxed;

(2) ad valorem tax revenues for debt service;

(3) ad valorem tax revenues to offset a prior year deficit; and

(4) revenues of additional ad valorem taxes approved by at least a two-third's vote of the governing body authorized by law to levy school tax millage in the school district.

If the limit on revenue increases allowed by this section is insufficient to permit a school district to meet the maintenance of effort requirement of Section 59-21-1030 of the 1976 Code, then additional revenues may be raised by ad valorem taxes sufficient to meet this requirement.

SUBSECTION 6. Any bill or joint resolution enacted after June 30, 1994, by the General Assembly requiring a county, municipality, school district, special purpose or public service district to spend funds or to take an action requiring the expenditure of funds must provide adequate funding to these entities sufficient to offset the costs incurred or expenditures required.

The State Budget Division after a bill or joint resolution is enacted into law shall prepare and affix to it a statement of its estimated fiscal impact on the political subdivisions referred to above, whether or not the bill or joint resolution requires the entity to expend funds, and whether or not the General Assembly has provided sufficient funding to offset the costs incurred or expenditures required.

SUBSECTION 8. (A) Section 12-43-210(B) of the 1976 Code, as last amended by Act 381 of 1988, is further amended to read:

"(B)(1) 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.The department shall divide counties into five groups for purposes of assigning dates for counties to implement countywide reassessment programs. Each county shall implement a countywide reassessment program as scheduled by the department. Additionally, each county shall implement a countywide reassessment program at least every fifth year after the initial reassessment year scheduled by the department.

(2) The countywide reassessment program required by this section applies to all real property in a county, including manufacturing real property."

(B) Initial reassessment years pursuant to the provision of Section 12-43-210(B) of the 1976 Code, as amended by this act, are as follows:

County Group Year of Reassessment

1 1997

2 1998

3 1999

4 2000

5 2001.

SUBSECTION 9. The penultimate paragraph of Section 12-37-930 of the 1976 Code is amended to read:

"In no event should the The original cost must not be reduced more than eighty percent for property tax years before 1995. For property tax

After 2003 ten percent.

In the year of acquisition, depreciation shall be is allowed as if the property were owned for the full year. The term `original cost' shall mean means gross capitalized cost as shown by the taxpayer's records for income tax purposes."/

SUBSECTION 10. If the provisions of Section 12-37-257 of the 1976 Code as added by this section are declared unconstitutional, unlawful, or otherwise void by a court of competent jurisdiction, then the provisions of the spending and revenue limitations imposed by Subsections 2, 3, 4, and 5 are of no effect.

SUBSECTION 11. Subsection 8 of this section takes effect January 1, 1995, and applies for property tax years beginning after 1994. The remaining subsections of this section take effect upon approval by the Governor./

Renumber sections & amend totals/title to conform.

Rep. GONZALES raised the Point of Order that Amendment No. 358 was out of order as it was not germane in that the substantial effect of the amendment did not relate to the purpose of the Appropriations Bill and the purpose of funds.

The SPEAKER stated that this was expanding the impact of Rule 5.3 but that the amendment directly related to the 16.5 million dollars provided for homestead exemption in the front Part of the Bill and he overruled the Point of Order.

Rep. BAKER explained the amendment.

Rep. GONZALES spoke against the amendment.

Rep. STILLE raised the Point of Order that Amendment No. 358 was out of order as it was not germane.

The SPEAKER overruled the Point of Order.

Rep. WHIPPER raised the Point of Order that Amendment No. 358 was out of order as it was not germane in that it affected other years other than this fiscal year.

The SPEAKER stated that it can't only affect other years but it has to affect the year pertaining to the Bill and he overruled the Point of Order.

Rep. WILKINS moved to divide the question.

Rep. RUDNICK demanded the yeas and nays, which were taken resulting as follows:

Those who voted in the affirmative are:

Allison          Bailey, G.       Bailey, J.
Fair             Fulmer           Graham
Hallman          Harrell          Hodges
Marchbanks       Mattos           McElveen
Robinson         Sheheen          Simrill
Stille           Stuart           Thomas
Trotter          Waites           Walker
Wells            Wilkins

Those who voted in the negative are:

Alexander, M.O.  Alexander, T.C.  Anderson
Askins           Baker            Barber
Baxley           Beatty           Boan
Brown, G.        Brown, H.        Brown, J.
Byrd             Canty            Cato
Chamblee         Clyborne         Cobb-Hunter
Corning          Cromer           Davenport
Delleney         Elliott          Farr
Felder           Gamble           Gonzales
Govan            Harrelson        Harris, J.

Harris, P.       Harrison         Harvin
Harwell          Hines            Holt
Houck            Huff             Hutson
Inabinett        Jaskwhich        Jennings
Keegan           Kelley           Kennedy
Keyserling       Kinon            Kirsh
Klauber          Koon             Law
Littlejohn       Martin           McCraw
McMahand         McTeer           Moody-Lawrence
Neal             Neilson          Phillips
Richardson       Riser            Rogers
Rudnick          Sharpe           Shissias
Smith, R.        Snow             Spearman
Stoddard         Stone            Vaughn
Waldrop          Whipper          White
Wilder, D.       Wilder, J.       Wilkes
Witherspoon      Wofford          Worley
Wright           Young, A.

So, the House refused to divide the question.

Rep. J. BAILEY spoke upon the amendment.

Rep. WALKER spoke in favor of the amendment.

Reps. WILKINS and BOAN spoke against the amendment.

Rep. BOAN moved to table the amendment, which was agreed to.

Rep. GONZALES proposed the following Amendment No. 360 (Doc Name L:\council\legis\amend\JIC\5777HTC.94), which was ruled out of order.

Amend the bill, as and if amended, Part II, Permanent Provisions, by adding a new SECTION, appropriately numbered, to read:

Article 7, Chapter 5, Title 56 of the 1976 Code is amended by adding:

"Section 56-5-932. After December 31, 1994, no funds available to the department pursuant to appropriation in the annual general appropriations act may be expended on traffic signal and marking installation and maintenance except pursuant to a policy on the installation and maintenance of these items that does not allow for differentiation based on the nature of the jurisdiction in which the signal or marking is located."/

Amend title/totals, renumber sections to conform.

Rep. GONZALES explained the amendment.

Rep. FARR raised the Point of Order that Amendment No. 360 was out of order as it was not germane.

Rep. GONZALES argued contra the Point.

The SPEAKER stated that it had to relate to a line item in Part I.

Rep. GONZALES continued to argue contra the Point.

The SPEAKER sustained the Point of Order and ruled the amendment out of order.

Reps. McLEOD, HOLT and SHISSIAS proposed the following Amendment No. 363 (Doc Name L:\council\legis\amend\DKA\3324DW.94), which was adopted.

Amend the bill, as and if amended, Part II, by adding an appropriately numbered SECTION to read:

A. This section is known as the "Motor Vehicle Customer Service Act of 1994".

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