Current Status Bill Number:3619 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19950216 Primary Sponsor:Boan All Sponsors:Boan, J. Harris, McTeer, Keegan and Kennedy Drafted Document Number:DKA\3708HTC.95 Companion Bill Number:521 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Sales and use tax increase
Body Date Action Description Com Leg Involved
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House 19950216 Introduced, read first time, 30 HWM
referred to Committee
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TO PROVIDE FOR A STATEWIDE REFERENDUM TO BE HELD NOVEMBER 7, 1995, ON THE QUESTION OF RAISING THE SALES, USE, AND CASUAL EXCISE TAX FROM FIVE TO SIX PERCENT IN ORDER TO PROVIDE AN EXEMPTION FROM SALES TAX ON FOOD AND TO PROVIDE PROPERTY TAX RELIEF, AND TO MAKE THE PROVISIONS OF THIS ACT RAISING THE TAX, ELIMINATING CERTAIN EXEMPTIONS, IMPOSING ADDITIONAL TAXES AND FEES ON VIDEO GAMES WITH A FREE PLAY FEATURE, AND GRANTING PROPERTY TAX RELIEF AND EXEMPTING FOOD FROM THE SALES TAX CONTINGENT UPON A FAVORABLE MAJORITY VOTE IN THE REFERENDUM; TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 TO CHAPTER 36 OF TITLE 12 SO AS TO INCREASE THE SALES, USE, AND CASUAL EXCISE TAX FROM FIVE TO SIX PERCENT, TO PROVIDE FOR THE ADDITIONAL TAX REVENUES TO BE CREDITED TO A SEPARATE FUND STYLED THE "PROPERTY TAX RELIEF FUND" AND PROVIDE FOR THE DISTRIBUTION OF REVENUES FROM THE FUND TO REIMBURSE LOCAL GOVERNMENTS FOR REVENUE LOSSES CAUSED BY PROPERTY TAX RELIEF; TO AMEND SECTION 12-36-940, RELATING TO AMOUNTS RETAILERS MAY ADD TO THE SALES PRICE, SO AS TO REFLECT THE ADDITIONAL TAX; TO AMEND SECTION 12-36-2110, AS AMENDED, RELATING TO THE THREE HUNDRED DOLLAR MAXIMUM TAX ON MOTOR VEHICLES AND CERTAIN OTHER PROPERTY, SO AS TO INCREASE THE MAXIMUM TAX; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO DELETE THE EXEMPTION FOR TOLL AND ACCESS CHARGES AND TELEGRAMS; TO AMEND SECTION 57-11-20, AS AMENDED, RELATING TO THE STATE HIGHWAY FUND, SO AS TO REQUIRE INTEREST EARNED ON THE FUND TO BE CREDITED TO THE FUND AND TO REQUIRE THESE ADDITIONAL FUNDS TO BE USED FOR ROAD CONSTRUCTION AND MAINTENANCE; TO AMEND SECTIONS 12-21-2772, 12-21-2774, 12-21-2776, 12-21-2778, 12-21-2780, 12-21-2782, 12-21-2794, 12-21-2796, AND 12-21-2804, RELATING TO THE REGULATION OF VIDEO GAMES WITH A FREE PLAY FEATURE PURSUANT TO THE VIDEO GAME MACHINES ACT, SO AS TO REVISE REQUIREMENTS RELATING TO THESE MACHINES; TO AMEND THE 1976 CODE BY ADDING SECTIONS 12-21-2779, 12-21-2781, 12-21-2783, 12-21-2787, 12-21-2795, 12-21-2800, AND 12-21-2801 SO AS TO PROVIDE FURTHER FOR THE REGULATION OF VIDEO GAMES WITH A FREE PLAY FEATURE, TO IMPOSE A TAX EQUAL TO FIFTEEN PERCENT OF GROSS MACHINE PROCEEDS, AND TO REQUIRE ADDITIONAL LICENSES FOR VIDEO GAMES WITH A FREE PLAY FEATURE; TO REPEAL SECTIONS 12-21-2719, 12-21-2728, 12-21-2732, AND 12-21-2791 RELATING TO REGULATIONS OF VIDEO GAMES WITH A FREE PLAY FEATURE; TO AMEND THE 1976 CODE BY ADDING SECTION 59-1-460 SO AS TO REQUIRE ADDITIONAL ANNUAL APPROPRIATIONS FOR PUBLIC EDUCATION AND PROVIDE THE USE OF THESE ADDITIONAL FUNDS; TO AMEND SECTION 11-11-140, AS AMENDED, RELATING TO LIMITATION ON APPROPRIATIONS, SO AS TO DELETE FROM THE LIMITATION APPROPRIATIONS TO THE PROPERTY TAX RELIEF FUND; TO REPEAL CHAPTER 10, TITLE 4, RELATING TO THE LOCAL OPTION SALES TAX; TO AMEND THE 1976 CODE BY ADDING SECTION 12-37-257 SO AS TO PROVIDE ADDITIONAL HOMESTEAD EXEMPTIONS FROM PROPERTY TAX; TO AMEND SECTION 12-37-930, AS AMENDED, RELATING TO THE VALUATION AND DEPRECIATION OF PERSONAL PROPERTY FOR PURPOSES OF PROPERTY TAX, SO AS TO PROVIDE FOR ADDITIONAL DEPRECIATION FOR PERSONAL PROPERTY USED IN MANUFACTURING; TO AMEND SECTION 12-7-435, AS AMENDED, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME OF INDIVIDUALS, SO AS TO PROVIDE DEDUCTIONS FOR CERTAIN INCOME OF PARTNERS, SUBCHAPTER "S" CORPORATION SHAREHOLDERS, AND MEMBERS OF LIMITED LIABILITY COMPANIES; TO AMEND THE 1976 CODE BY ADDING SECTION 4-29-72 SO AS TO ELIMINATE THE MINIMUM INVESTMENT THRESHOLD FOR FEE IN LIEU OF TAXES AGREEMENTS; TO AMEND SECTION 4-29-10, RELATING TO DEFINITIONS FOR PURPOSES OF INDUSTRIAL DEVELOPMENT PROJECTS FINANCED BY SPECIAL SOURCE BONDS, SO AS TO EXTEND ELIGIBILITY FOR THESE PROJECTS TO UTILITY PROJECTS, TO PHASE-OUT THE SOFT DRINKS TAX OVER THREE YEARS; TO REPEAL ARTICLE 13, CHAPTER 21, TITLE 12, RELATING TO THE SOFT DRINK TAX EFFECTIVE JULY 1, 1998; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT FOOD ELIGIBLE FOR PURCHASE WITH FOOD STAMPS FROM THE SALES TAX EFFECTIVE JULY 1, 1998, AND TO PROVIDE LOWER TRANSITION SALES TAX RATES ON FOOD; TO AMEND SECTION 12-4-310, AS AMENDED, RELATING TO DUTIES OF THE DEPARTMENT OF REVENUE AND TAXATION, SO AS TO PROVIDE THAT THE DEPARTMENT SHALL COLLECT ALL PROPERTY TAXES ON PROPERTY ASSESSED BY IT EXCEPT FOR BUSINESS PERSONAL PROPERTY; TO AMEND SECTION 12-4-540, RELATING TO DUTIES OF THE DEPARTMENT OF REVENUE AND TAXATION, SO AS TO PROVIDE THAT THE DEPARTMENT SHALL ASSESS BUSINESS PERSONAL PROPERTY; TO AMEND SECTION 12-37-970, AS AMENDED, RELATING TO PERSONAL PROPERTY TAX RETURNS, SO AS TO PROVIDE FOR THE FILING OF SUCH RETURNS WITH THE TAXPAYER'S INCOME TAX RETURN; TO REPEAL SECTION 12-37-905 RELATING TO RETURNS REQUIRED TO BE FILED WITH THE COUNTY AUDITOR; TO AMEND SECTION 12-43-250, RELATING TO SALES RATIO STUDIES, SO AS TO REQUIRE REASSESSMENTS EVERY THREE YEARS; TO AMEND SECTION 12-43-300, AS AMENDED, RELATING TO PROPERTY TAX APPEALS, SO AS TO PROVIDE A REVISED APPEALS PROCEDURE; TO AMEND THE 1976 CODE BY ADDING SECTION 12-4-580 SO AS TO ALLOW COUNTIES TO TRANSFER THE ASSESSING FUNCTION TO THE DEPARTMENT OF REVENUE AND TAXATION AND TO PROVIDE THE APPLICABLE PROCEDURES FOR THE TRANSFER; TO AMEND SECTION 12-37-90, RELATING TO COUNTY ASSESSOR, SO AS TO CONFORM IT TO THE PROVISIONS OF THIS ACT; TO AMEND SECTION 12-4-320, AS AMENDED, RELATING TO FUNCTIONS OF THE DEPARTMENT OF REVENUE AND TAXATION, SO AS TO ALLOW THE DEPARTMENT TO WAIVE THE RETROACTIVE ASSESSMENT OF A STATE TAX AND PROVIDE THE CIRCUMSTANCES REQUIRED FOR THE WAIVER; TO AMEND SECTION 12-54-160, RELATING TO AUTHORITY OF THE DEPARTMENT WITH RESPECT TO THE WAIVER OF PENALTIES AND INTEREST, SO AS TO PROVIDE CIRCUMSTANCES WHEN INTEREST MAY BE WAIVED; AND TO AMEND THE 1976 CODE BY ADDING SECTION 6-1-60 SO AS TO PROVIDE NOTICE REQUIREMENTS WITH RESPECT TO THE BUDGET PROCESS AND TAXING POWER OF LOCAL GOVERNMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The State Election Commission shall conduct a statewide referendum on November 7, 1995, on the question of raising the sales tax in order to provide property tax relief. The state election laws apply to this referendum, mutatis mutandis. The commission shall canvass the results of the referendum and certify the results to the director of the Department of Revenue and Taxation and the Code Commissioner. The referendum question must read substantially as follows:
"Do you favor raising the statewide sales, use, and casual excise tax rate from five to six percent, eliminating certain exemptions, and raising the three hundred dollar cap on motor vehicles and certain other property in order to exempt food from the sales tax and to grant owner-occupied residential property an exemption from all property taxes levied for operating purposes and to give the current owner of such property an exemption from increases in fair market value due to reassessment programs for the millage imposed for debt service and lease purchase payments and to give property tax relief for manufacturing and utility property?
[] Yes
[] No
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word `Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word `No'."
SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Section 12-36-1110. An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter. Revenue of the tax imposed pursuant to this article must be credited to the Property Tax Relief Fund in the State Treasury, a fund separate and distinct from the general fund of the State.
Section 12-36-1120. (A) The revenues in the Property Tax Relief Fund must be distributed quarterly beginning October first of each year by the Comptroller General to reimburse property taxing jurisdictions a sum equal to that not collected in the jurisdiction for property tax year 1996 because of Section 12-37-257(A) and any reduction in the assessment ratio imposed pursuant to Section 12-43-220(a) for that tax year, and the additional depreciation allowance for that tax year allowed pursuant to Section 12-37-930. If insufficient revenues are available in the Property Tax Relief Fund to pay the required reimbursements, the Comptroller General shall pay the difference from the general fund of the State. County treasurers and municipal governing bodies where appropriate shall file quarterly reports of estimated revenue losses with the Comptroller General in the manner and at the time the Comptroller General directs. After making any adjustments necessary to ensure accuracy, the Comptroller General shall make reimbursements based on these estimates. The final accounting for the fiscal year must be filed in the manner provided for homestead exemption reimbursements in Section 12-37-270, mutatis mutandis. For purposes of future distributions, property tax year 1996 is deemed the base year.
(B) Reimbursements for subsequent tax years shall equal the base year reimbursement from all sources plus additional amounts from the general fund of the State to reflect further revenue losses on taxable base year property for continuing reductions in the assessment ratio provided in Section 12-43-220(a), the additional depreciation allowed pursuant to Section 12-37-930 and any reduction in the assessment ratio for property required to be titled by a state or federal agency. Revenues in the fund over the base year distribution must be allocated between a school portion and a local government portion. The school portion is determined by multiplying revenues above the adjusted base year amount by the ratio that school tax reimbursements represented of total reimbursements from the Property Tax Relief Fund for tax year 1996. These funds must be distributed to school districts through the provisions of the Education Finance Act. The remaining share for local governments must be distributed in the manner provided in Chapter 27 of Title 6."
SECTION 2. Section 12-36-940 of the 1976 Code is amended to read:
"Section 12-36-940. Every retailer may add to the sales price:
(1) no amount on sales of ten cents or less;
(2) one cent on sales of eleven cents and over, but not in excess of twenty cents;
(3) two cents on sales of twenty-one cents and over, but not in excess of forty cents;
(4) three cents on sales of forty-one cents and over, but not in excess of sixty cents;
(5) four cents on sales of sixty-one cents and over, but not in excess of eighty cents;
(6) five cents on sales of eighty-one cents and over, but not in excess of one dollar;
(7) one cent additional for each twenty cents or major fraction thereon in excess of one dollar.
The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect from the purchaser does not relieve the taxpayer from the tax levied by this article.
A retailer may add the amount of the tax to the sales price and the department shall prescribe tables providing the amount to be added to the sales price consistent with the total rate of the tax."
SECTION 3. Section 12-36-2110 of the 1976 Code, as last amended by Section 92, Part II, Act 497 of 1994, is further amended to read:
"Section 12-36-2110. (A) Notwithstanding the rates of tax imposed by this chapter, the maximum tax rate imposed by this chapter is three hundred dollars four percent on the first six thousand dollars and six percent on amounts in excess of six thousand dollars, but no more than seven hundred fifty dollars, for each sale or lease made or executed after June 30, 1984 1996, or lease executed after August 31, 1985, 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 dollars the total tax due. 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 specifically state the term of, and remain in force for, a period in excess of ninety continuous days.
(B) For the sale of a manufactured home, as defined in Section 40-29-20, the tax is calculated as follows:
(1) subtract trade-in allowance from the sales price;
(2) multiply the result from (1) by sixty-five percent;
(3) if the result from (2) is no greater than six thousand dollars, multiply by five six percent for the amount of tax due;
(4) if the result from (2) is greater than six thousand dollars, the tax due is three hundred sixty dollars plus two percent of the amount greater than six thousand dollars.
However, a manufactured home is exempt from any tax that may be due above three hundred sixty dollars as a result of the calculation in item (4) if it meets these energy efficiency levels: storm or double pane glass windows, insulated or storm doors, a minimum thermal resistance rating of the insulation only of R-11 for walls, R-19 for floors, and R-30 for ceilings. However, variations in the energy efficiency levels for walls, floors, and ceilings are allowed and the exemption on tax due above three hundred sixty dollars applies if the total heat loss does not exceed that calculated using the levels of R-11 for walls, R-19 for floors, and R-30 for ceilings. The edition of the American Society of Heating, Refrigerating, and Air Conditioning Engineers Guide in effect at the time is the source for heat loss calculation. The dealer selling the manufactured home must maintain records, on forms provided by the State Energy Office, on each manufactured home sold which contains the above calculations and verifying whether or not the manufactured home met the energy efficiency levels provided for in this subsection. These records must be maintained for three years and must be made available for inspection upon request of the Department of Consumer Affairs or the State Energy Office.
(C) For the sale of each musical instrument, or each piece of office equipment, purchased by a religious organization's exempt under Internal Revenue Code Section 501(c)(3), the maximum tax imposed by this chapter is three hundred sixty dollars. The musical instrument or office equipment must be located on church property and used exclusively for the organizations exempt purpose. The religious organization must furnish to the seller an affidavit on forms prescribed by the commission. The affidavit must be retained by the seller.
(D) The maximum tax levied pursuant to this chapter on the sale or use of each item of machinery for research and development is three hundred sixty dollars. As used in this subsection, `machinery for research and development' means machinery used directly and exclusively in research and development in the experimental or laboratory sense for new products, new uses for existing products, or for improving existing products. To be eligible for the limitation imposed by this subsection, the machinery must be located in a separate facility devoted exclusively to research and development as defined in this subsection. The limitation does not extend to machinery used in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects.
(E) Revenues derived from the items taxed under this section in excess of such revenues in fiscal year 1994-95 must be credited to the general fund of the State."
SECTION 4. Item (11) of Section 12-36-2120 of the 1976 Code is amended to read:
"(11) Reserved (a) toll charges for the transmission of voice or messages between telephone exchanges;
(b) charges for telegraph messages; and
(c) carrier access charges and customer access line charges established by the Federal Communications Commission or the South Carolina Public Service Commission;"
SECTION 5. A. The gross proceeds of sales of tangible personal property delivered after June 30, 1996 in this State, either under the terms of a construction contract executed before July 1, 1996, or a written bid submitted before July 1, 1996, culminating in a construction contract entered into before or after July 1, 1996, are exempt from the tax provided in Section 12-36-1110 of the 1976 Code if a verified copy of the contract is filed with the South Carolina Department of Revenue and Taxation before January 1, 1997.
B. Notwithstanding the date of general imposition of the tax imposed pursuant to Section 12-36-1110 of the 1976 Code, with respect to services that are regularly billed on a monthly basis, the tax is imposed beginning on the first day of the billing period beginning on or after July 1, 1996.
SECTION 6. A. Section 57-11-20(A) of the 1976 Code, as amended by Act 501 of 1992, is further amended to read:
"(A) All state revenues and state monies dedicated by statute to the operation of the department must be deposited into one fund to be known as the `state highway fund' and all federal revenues and federal monies must be deposited into the `federal aid highway fund'. These funds must be held and managed by the State Treasurer separate and distinct from the general fund, except as to monies utilized by the State Treasurer for the payment of principal or interest on state highway bonds as provided by law. Interest earned on the state highway fund must be credited to it. All interest revenues must be used for road and highway construction and maintenance and must not be used to pay administrative expenses."
B. This section takes effect July 1, 1995.
SECTION 7. A. Section 12-21-2772 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2772. As used in this article:
(1) `Associated equipment' means a proprietary device, machine, or part used in the manufacture or maintenance of a video game machine including, but not limited to, integrated circuit chips, printed wired assembly, printed wired boards, printing mechanisms, video display monitors, and metering devices.
(2) `Commission Department' means the South Carolina Tax Commission Department of Revenue and Taxation.
(3) `Distributor' means any person who buys and sells or leases video machines or associated equipment in this State. A distributor may also own, operate, service, or repair video machines in this State.
(4) `Licensed establishment' means an establishment owned or managed by a person who is licensed pursuant to Article 19 of this chapter for the location of coin-operated nonpayout video machines with a free play feature. The location must contain at least one thousand two hundred and fifty square feet of floor area. If a building contains more than one location that offers video machines, then each location must have a separate outside entrance and contain a floor to ceiling interior wall that does not permit public access from one location to an adjacent location.
(5) `Machine' means an electronic video games machine that, upon insertion of cash, is available to play or simulate the play of games as authorized by the commission department utilizing a video display and microprocessors in which the player may receive free games or credits that can be redeemed for cash. Each station of multiplayer machines is a separate machine for purposes of this article.
(6) `Manufacturer' means any person that manufactures or assembles and programs machines or associated replacement equipment authorized for sale or use in this State.
(7) `Net machine income' means money put into the machine minus money paid out in cash. `Gross machine income' means the sum of all cash/money put into the machine.
(8) `Machine owner' means any person, other than a distributor, who owns and operates, or maintains, repairs, or services one or more machines in licensed establishments. For purposes of this article "owner/operator" is defined the same as "machine owner".
(9) `Contraband device/equipment' or `gray area machine' means any unlicensed machine not described in item (12) of this section.
(10) `Service entity' means any person other than a distributor or machine owner who repairs, services, inspects, or examines video machines.
(11) `Credit payback value' means the expected payback value of credit played.
(12) `Video lottery terminal' means a machine or device which simulated the play of a game of chance and which contains a programmable read-only memory (PROM) computer chip which controls game play, including randomness and percentage of payout, and which communicates all game activity including, but not limited to, cash in, games played, credits won, credits played, and credits paid out, to a separate computer device by means of serial data communications, and which may be remotely polled, activated, and deactivated by means of serial data communications.
(13) `Person' means any individual, trust, estate, partnership, limited liability company, receiver, association, company, corporation, or any other entity or group.
(14) `Operator' means any person who owns or manages a location for the operation of gaming machines.
(15) `Game' means any electronically simulated game of chance approved by the department that is displayed and played on a licensed video gaming machine."
B. Section 12-21-2774 of the 1976 Code, as added by Act 164 of 1993, is further amended to read:
"Section 12-21-2774. Each machine licensed under this chapter:
(1) may not have any means of manipulation that affect the random probabilities of winning a video game;
(2) shall have one or more mechanisms that accept only coins or cash in the form of bills. Credit card payments are not allowed. The mechanisms must be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means;
(3) must have a commission department supplied or approved metering device that keeps a record of all cash (total coin accepted and total credit generated by the bill acceptor) inserted into the machine, credits played for video games, and credits won by video players and cash refunds of winnings and other information as prescribed by the commission department;
(4) must be capable of being accessed on demand by telecommunication from a central computer for purposes of polling or reading device activities and for central computer remote shutdown of machine operations."
C. Section 12-21-2776 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2776. (A) All machines must be approved, registered, and licensed by the commission department under procedures and guidelines issued by the commission department.
(B) By July 1, 1996, all machines approved, registered, and licensed by the commission department must be equipped with a commission department supplied or approved metering device. Each machine owner, operator, or licensed establishment must establish and implement cash controls required by the commission department."
(C) By July 1, 1996, all video game machines must be of the video lottery terminal variety as defined in this article."
D. Section 12-21-2778 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2778. Each player station of a machine must be licensed pursuant to Article 19 of this chapter by the commission department before placement or operation on the premises of a licensed establishment. Each machine must have the license prominently displayed pursuant to Article 19 of this chapter."
E. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2779. (A) Each machine must have a credit payback value of at least seventy percent. The department shall establish the mechanism for ensuring that the machines comply with this section.
(B) Video games that are affected by player skill, such as video draw poker and blackjack, shall pay out a minimum of eighty-three percent and no more than ninety-six percent of the amount wagered. This standard is met when using a method of play that will provide the greatest return to the player over a period of continuous play.
(C) Manufacturers shall file a request and receive approval by the department prior to manufacturing machines for placement in the State programmed for a payout greater than ninety-two percent of the amount wagered. The department shall consider, but not be limited to, the following factors in determining approval:
(1) the number of machines proposed for placement;
(2) market conditions;
(3) revenues in relation to net machine income for both the State and private sector operations."
F. Section 12-21-2780 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2780. A seal must be affixed to the commission department supplied or approved metering device which corresponds to the license as set forth in Section 12-21-2778."
G. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2781. A machine may not allow more than three dollars to be placed on a single game or award won games or credits in excess of the value of five hundred dollars. Violation of the provisions of this section are considered intent to interfere with the proper operation of a machine in accordance with Section 12-21-2794."
H. Section 12-21-2782 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2782. The commission department shall promulgate rules and regulations regarding the types of machines and equipment that must be licensed and the costs associated with inspection. Notwithstanding the provisions of Section 12-21-2774(1), any machine of a type licensed as of July 1, 1993 July 1, 1996, in this State and which satisfies the conditions of Section 12-21-2776(B) may continue to operate for five two years from July 1, 1993 that date. This section may not be construed as authorizing cash payouts for credits earned after the effective date of a referendum prohibiting such payouts."
I. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2783. There is a limit of five machines in a licensed establishment."
J. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2787. A person licensed as a machine manufacturer, distributor, operator, or licensed establishment may be required to submit to a background investigation. The department shall complete the investigation within one hundred twenty days of the date of application unless additional time is granted in writing. This includes each partner of a partnership and each director and officer and all stockholders of ten percent or more in a parent or subsidiary corporation of a machine manufacturer, distributor, or operator. A person who has been convicted of a state or federal crime relating to gaming or gambling, or a crime that has a sentence of two or more years is not permitted to be licensed under this article. The department shall promulgate regulations to establish the criteria for the investigation and to establish additional requirements including information exchange agreements with other governmental regulations to preserve the integrity and security of the industry."
K. Section 12-21-2794 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2794. A person who, with intent to manipulate the outcome, payoff, or operation of a machine, manipulates the outcome, payoff, or operation of a machine or its associated monitoring system, or both by physical tampering or any other means is guilty of a felony and, upon conviction, must be imprisoned not less than one year nor more than five years or fined not more than one thousand dollars, or both."
L. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2795. (A) Beginning July 1, 1996, a tax equal to fifteen percent of the gross machine income is imposed and must be remitted to the department weekly on a schedule determined by the department. The revenue must be remitted by electronic transfer in a manner provided by the department. Revenues of this tax must be deposited to the credit of the Property Tax Relief Fund. All payments not remitted when due must be paid together with a penalty under the provisions of Section 12-54-40.
(B) A machine owner, operator, or licensed establishment who falsely reports or wilfully fails to report the amount due required by this section is guilty of a felony and, upon conviction, must be imprisoned not less than one year nor more than five years. In addition, the person must have his license revoked by the department and is not eligible for licensing for at least three years nor more than ten years, as the department determines."
M. Section 12-21-2796 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2796. A machine owner or distributor who wilfully places a machine on location or who wilfully causes a machine to be operated without the state supplied or approved metering device is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and may be fined not more than twenty-five thousand dollars."
N. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2800. The department shall promulgate regulations pertaining to the machines and persons licensed by it. These regulations must include, but are not limited to, provisions:
(1) prohibiting the acceptance of checks or credit cards exclusively for playing the machines;
(2) prohibiting the extension of credit, advances, loans for playing the machines;
(3) assuring access is limited to persons twenty-one years of age or older;
(4) prohibiting the use of any type of advertisement to promote the play of the machines;
(5) specifying the mechanism for transmitting revenue, service, and access information as well as revenue amounts owed electronically;
(6) specifying the mechanism for verifying information transmitted to the department;
(7) establishing guidelines for licensing and review of licensing decisions, including background investigations and license revocation; and
(8) requiring other information considered necessary by the department to carry out the provisions of this article."
O. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2801. (A) In addition to all other licenses and fees, and beginning July 1, 1996, the following annual licenses are required for the fees stated by qualified persons who meet the definitions provided in Section 12-21-2772 and who otherwise comply with the provisions of this article:
(1) manufacturer five thousand dollars
(2) distributor three thousand dollars
(3) service entity two thousand dollars
(4) machine owner one thousand dollars
(5) licensed establishment one hundred dollars.
(B) A machine owner shall pay a machine owner fee for the privilege of owning and operating machines and is not required to pay more than one device owner fee.
(C) The machine owner fee is due and payable in addition to any licensed establishment fee resulting from the placement of machine at that establishment. If more than one machine is placed at a licensed establishment, only one licensed establishment fee is due for that establishment.
(D) No license may be issued under this section unless the applicant for a license or renewal presents to the department a signed statement from the department and from the Internal Revenue Service showing that the applicant does not owe the state or federal government any delinquent taxes, penalties, or interest.
(E) No distributor, service entity, machine owner, or licensed establishment may be issued a license under this section unless the distributor, service entity, machine owner, or licensed establishment has been a resident of this State for two years. The department shall require a statement of residency to be filed with the department as part of the application process on forms and in a manner prescribed by the department.
(F) Licenses issued under this section apply for the period July first through the successive June thirtieth."
P. Section 12-21-2804 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2804. (A) No person shall apply for, receive, maintain, or permit to be used, and the commission shall not allow to be maintained, permits or licenses for the operation of more than eight machines authorized under Section 12-21-2720(A)(3) at a single place or premises for the period beginning July 1, 1993, and ending July 1, 1994. After July 1, 1994, the commission may not issue nor authorize to be maintained any licenses or permits for more than five machines authorized under Section 12-21-2720(A)(3) at a single place or premises. Any licenses or permits issued for the operation of machines authorized under Section 12-21-2720(A)(3) during the period of July 1, 1993, and July 1, 1994, for a two-year period shall continue in effect after July 1, 1994, provided that during the period of July 1, 1994, and July 1, 1995, no person shall maintain at a single place or premises more than eight machines authorized under Section 12-21-2720(A)(3). No machine may be licensed or relicensed in any location where the primary and substantial portion of the establishment's gross proceeds is from machines licensed under Section 12-21-2720(A)(3). The commission shall revoke the licenses of machines located in an establishment which fails to meet the requirements of this section. No license may be issued for a machine in an establishment in which a license has been revoked for a period of six months from the date of the revocation. The term "gross proceeds" from the machines means the establishment's portion. Reserved
(B) No person who maintains a place or premises for the operation of machines licensed under Section 12-21-2720(A)(3) may advertise in any manner for the playing of the machines nor may a person offer or allow to be offered any special inducement to a person for the playing of machines permitted under Section 12-21-2720(A)(3).
(C) No person under twenty-one years of age may receive a payout as a result of the operation of the machines licensed under Section 12-21-2720(A)(3).
(D) No owner, operator, or marketer may be issued a permit by the commission for machines pursuant to Section 12-21-2720(A)(3) unless the owner, operator, or marketer has been a resident of the State for two years. The commission shall require a statement of residency to be filed with the commission as part of the application process for permits issued under Section 12-21-2720(A)(3) on forms and in a manner the commission considers appropriate. Reserved
(E) It is unlawful to operate machines licensed under Section 12-21-2720(A)(3) between the hours of midnight Saturday night and six o'clock a.m. Monday morning.
(F) A person violating subsections (A), (B), (D), or (E) of this section is subject to a fine of up to five thousand dollars to be imposed by the commission. The commission, upon a determination that the violation is wilful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution, and, upon conviction, the person must be fined not more than ten thousand dollars or imprisoned not more than two years, or both. The commission shall revoke the licenses of any person issued pursuant to the provisions of Article 19 of this chapter for a violation of subsection (C) of this section. Revocation is pursuant to the procedures set forth in Section 12-54-90."
Q. Sections 12-21-2719, 12-21-2728, 12-21-2732, and 12-21-2791 of the 1976 Code are repealed.
R. Subject to Part I of this act, this section takes effect July 1, 1996, except subsections N. and O. take effect upon approval by the Governor for purposes of promulgating regulations and processing applications.
SECTION 8. Article 5, Chapter 1, Title 59 of the 1976 Code is amended by adding:
"Section 59-1-460. (A) In addition to the regular annual state funding provisions for K-12 public education, the General Assembly shall appropriate additional amounts as follows:
Fiscal year 1996-97 thirty million dollars
Fiscal year 1997-98 sixty million dollars
Fiscal year 1998-99 eighty million dollars
Fiscal year 1999-00 one hundred thirty
million dollars
Fiscal year after 1990-00 one hundred eighty
million dollars.
(B) Funds appropriated pursuant to this section first must be used to hold harmless school districts adversely impacted in the calculations of the index of taxpaying ability as a result of additional property tax homestead exemptions. The remaining funds must be distributed according to the provisions of the Education Finance Act and no local matching funds are required."
SECTION 9. Section 11-11-140(D) of the 1976 Code is amended to read:
"(D) Appropriations from surplus may not be made before the first meeting of the General Assembly following the Comptroller General's closing of the books on the fiscal year in which the surplus occurred and may be appropriated only for nonrecurring purposes. The provisions of this subsection do not apply to appropriations for the Property Tax Relief Fund as established pursuant to Section 12-36-1110."
SECTION 10. A. Chapter 10, Title 4 of the 1976 Code is repealed.
B. Subject to Part I of this act, this section takes effect July 1, 1996.
SECTION 1. A. Article 3, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-257. (A) In addition to any other homestead exemption allowed by law, one hundred percent of the fair market value of every homestead qualifying for the assessment ratio provided pursuant to Section 12-43-220(c) is exempt from all ad valorem taxes except ad valorem taxes levied for debt service and for payments pursuant to lease-purchase agreements for school construction and renovation.
(B) In addition to any other homestead exemption allowed by law, there is exempt from ad valorem taxes levied for debt service and payments pursuant to lease-purchase agreements an amount of the fair market value of residential real property assessed pursuant to Section 12-37-220(c) equal to increases in such value resulting from reassessments occurring while the current owner has owned the property. This exemption does not extend to increases in fair market value attributable to permanent improvements. For purposes of this exemption, the acquisition of residential property assessed pursuant to Section 12-43-220(c) by interspousal gift or by a surviving spouse by devise or operation of law is not considered a change of ownership."
B. Subject to Part I of this act, Section 12-37-257(A) of the 1976 Code, as added by this section, is effective for property tax years beginning after 1995. Section 12-37-257(B) of the 1976 Code, as added by this section, is effective for increases in fair market value occurring for tax years beginning after 1995.
SECTION 2. The penultimate paragraph of Section 12-37-930 of the 1976 Code is amended to read:
"In no event should The original cost must not be reduced more than eighty percent the percentage provided in the following schedule:
Property Tax Year Percentage
Before 1996 80
1996 82
1997 84
1998 86
1999 88
After 1999 90.
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."
SECTION 3. A. Section 12-7-435 of the 1976 Code, as last amended by Act 497 of 1994, is further amended by adding an appropriately lettered item at the end to read:
"( ) Twenty-eight and one-half percent of amounts otherwise subject to tax under Section 12-7-210 received by or attributed to a taxpayer as a result of the taxpayer's status as a:
(1) shareholder of a subchapter `S' corporation;
(2) partner in a partnership; or
(3) member of a limited liability company.
No deduction is allowed under this item for a guaranteed payment to a partner for personal services rendered by the partner for the partnership."
B. This section is effective for taxable years beginning after 1994.
SECTION 4. Chapter 29, Title 4 of the 1976 Code is amended by adding:
"Section 4-29-72. For agreements executed after June 30, 1996, the provisions of Section 4-29-67 apply regardless of the amount of the project investment."
SECTION 5. Section 4-29-10(3) of the 1976 Code is amended to read:
"(3) `Project' means any land and any buildings and other improvements on the land including, without limiting the generality of the foregoing, water, sewage treatment and disposal facilities, air pollution control facilities, and all other machinery, apparatus, equipment, office facilities, and furnishing which are considered necessary, suitable, or useful by the following or any combination thereof: (a) any enterprise for the manufacturing, processing, or assembling of any agricultural or manufactured products and facilities for an enterprise engaged in the sale or distribution to the public of electricity, gas, or telephone services; (b) any commercial enterprise engaged in storing, warehousing, distributing, transporting, or selling products of agriculture, mining, or industry, or engaged in providing laundry services to hospitals, to convalescent homes, or to medical treatment facilities of any type, public or private, within or outside of the issuing county or incorporated municipality and within or outside of the State; (c) any enterprise for research in connection with any of the foregoing or for the purpose of developing new products or new processes or improving existing products or processes; (d) any enterprise engaged in commercial business including, but not limited to, wholesale, retail, or other mercantile establishments; office buildings; computer centers; tourism, sports, and recreational facilities; convention and trade show facilities; and public lodging and restaurant facilities if the primary purpose is to provide service in connection with another facility qualifying under this subitem; and (e) any enlargement, improvement, or expansion of any existing facility in subitems (a), (b), (c), and (d) of this item. The term `project' does not include facilities for an enterprise primarily engaged in the sale or distribution to the public of electricity, gas, or telephone services. A project may be located in one or more counties or incorporated municipalities. The term `project' also includes any structure, building, machinery, system, land, interest in land, water right, or other property necessary or desirable to provide facilities to be owned and operated by any person, firm, or corporation for the purpose of providing drinking water, water, or wastewater treatment services or facilities to any public body, agency, political subdivision, or special purpose district."
SECTION 6. A. Notwithstanding the rates of the soft drink license tax imposed pursuant to Article 13, Chapter 21, Title 12 of the 1976 Code, the license tax due from a taxpayer pursuant to that article is reduced by one-third for returns due during fiscal year 1996-97 and by two-thirds for returns due during fiscal year 1997-98.
B. Article 13, Chapter 21, Title 12 of the 1976 Code is repealed effective July 1, 1998.
SECTION 7. A. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) Effective July 1, 1998, food items eligible for purchase with United States Department of Agriculture food coupons, not including restaurant meals."
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 gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons, not including restaurant meals, is three percent for sales or consumption in fiscal year 1996-97 and one percent for such sales or consumption in fiscal year 1997-98. Eighty percent of the revenues from sales taxes imposed by this section must be credited to the general fund of this State and the remainder must be credited to the Education Improvement Act Fund.
SECTION 1. A. Section 12-4-310 of the 1976 Code, as last amended by Act 361 of 1992, is further amended by adding at the end:
"(11) collect taxes on properties assessed by the department as provided in Section 12-4-540 except for business personal property. The department shall distribute property taxes collected pursuant to this item daily by electronic transfer to county treasurers for the credit of the taxing entities in the county."
B. The amendment to Section 12-4-310 of the 1976 Code as contained in this section is effective for taxes due for tax years beginning after 1995.
SECTION 2. A. Section 12-4-540(A) of the 1976 Code is amended to read:
"(A) The commission department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of corporate headquarters, corporate office facilities, and distribution facilities and of the real and personal property owned, used, or leased by the following businesses in the conduct of their business:
(1) manufacturing;
(2) railway;
(3) private carline;
(4) airline;
(5) water, heat, light and power;
(6) telephone;
(7) cable television;
(8) sewer;
(9) pipeline;
(10) mining.
In addition, the commission department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of the business personal property of merchants."
B. The amendment to Section 12-4-310 of the 1976 Code as contained in this section is effective for tax years beginning after 1995.
SECTION 3. A. Section 12-37-970 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 12-37-970. The assessment for property taxation of merchants' inventories, equipment, furniture, and fixtures, and manufacturers' real and tangible personal property, and the machinery, equipment, furniture, and fixtures of all other taxpayers required to file returns with the South Carolina Department of Revenue and Taxation for purposes of assessment for property taxation, must be determined by the department from property tax returns submitted by the taxpayers to the department on or before the due date for the taxpayer's state income return, including any extension last day of the fourth month after the close of the accounting period regularly employed by the taxpayer for income tax purposes in accordance with Chapter 7 of this title. The department by regulation shall prescribe the form of return required by this section, the information to be contained in it, and the manner in which the returns must be submitted and shall provide a method of filing this return as a part of the taxpayer's state income tax return. Every taxpayer required to make return to the department of property for assessment for property taxation must make the return to the department not less than once each calendar year. Whenever by a change of accounting period, or otherwise, more than one accounting period ends within any one calendar year, the taxpayer must make one such return within the prescribed time for filing following the end of each of the accounting periods and the department shall determine the assessment from the return setting forth the greatest value.
When property required to be returned as herein provided is sold after the end of the seller's accounting year and before January first next ensuing and when the purchaser's accounting year ends after the seller's and before January first next ensuing, the property must be returned by the seller as of the end of his accounting period. The purchaser is not required to list and return the property as of the close of his accounting period during the calendar year of sale. The seller and the purchaser are jointly and singularly liable for the tax that is due and payable by reason of this provision. The provision of this section does not apply to motor vehicles licensed for use on public highways.
When property required to be returned as provided in this section is sold before the end of the seller's accounting year and before January first next ensuing and when the purchaser's accounting year ends before the date of purchase and before January first next ensuing, the property must be listed and returned by the taxpayer holding title as of December thirty-first and is liable for the tax for the ensuing year.
The Department of Revenue and Taxation shall forward the assessments prepared as a result of the returns submitted pursuant to this section for business personal property to the appropriate local taxing authorities no later than August fifteenth of the applicable tax year."
B. Section 12-37-905 of the 1976 Code is repealed.
C. This section is effective for property tax years beginning after 1995.
SECTION 4. A. Section 12-43-250 of the 1976 Code is amended to read:
"Section 12-43-250. The Commission shall make sales ratio studies in all counties of the State and when, in the judgment of the Commission, a county needs to reassess or remap property, the Commission shall make application to the circuit court in which the county is located for a determination of whether or not the county shall be required to commence reassessment or remapping. If the circuit court determines that the county needs reassessment or remapping, such county shall be required to commence the reassessment or remapping within thirty days of such determination. All taxable real property in a county must be appraised and equalized once every third year beginning with the 1996 property tax year. Upon completion of a reassessment and equalization program, property taxpayers must be notified of any resulting change in value or classification. The values determined by the program first apply for the property tax year beginning after the completion of the program and notification of taxpayers."
B. The Department of Revenue and Taxation shall establish a schedule of initial reassessments for all counties in conformity with the provisions of Section 12-43-250 of the 1976 Code as amended by this section.
SECTION 5. A. Section 12-43-300 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 12-43-300. (A) Whenever the market value estimate of any property is fixed by the assessor assessing authority at a sum greater by one thousand dollars or more than the amount returned by the owner or his agent, or whenever any property is valued and assessed for taxation which has not been returned or assessed previously, the assessor assessing authority shall, on or before July first, or as soon thereafter as may be practicable, in the year in which the valuation and assessment is made give written notice thereof to the owner of the property or his agent. In reassessment years, the written reassessment notice to owners or agents must be given by July first. If there is no timely written notice, the prior current year's assessed value must be the basis for assessment for the current succeeding taxable year. The notice must include the prior market value, the total market value estimate, the value estimate if applicable, the assessment ratio, the total new assessment, the percentage changes over the prior market value, if there is no change in use or physical characteristics of the property, number of acres or lots, location of property, tax map, appeal procedure, and other pertinent ownership and legal description data required by the South Carolina Department of Revenue and Taxation. The notice may be served upon the owner or his agent personally or by mailing it to the owner or his agent at his last known place of residence which may be determined from the most recent listing in the applicable telephone directory, Department of Revenue and Taxation Motor Vehicle Registration List, county treasurer's records, or official notice from the property owner or his agent. The owner or his agent, if he objects to the valuation and assessment, shall serve written notice of his objection upon the assessor assessing authority within thirty days of the date of the mailing of the notice. In years when there is no notice of appraisal because of a less than one thousand dollar change or no change in the appraised or assessed value, the owner or agent has until March first to serve written notice of objection upon the assessor assessing authority of the appraised or assessed value. In those years, failure to serve written notice of objection by March first constitutes a waiver of the owner's right of appeal for that tax year and the assessor assessing authority is not required to review any request filed after March first. The assessor assessing authority shall then schedule a conference with the owner or agent within twenty days of receipt of the notice. If the assessor assessing authority requests it, the owner, within thirty days after the conference, shall complete and return to the assessor assessing authority the form as may be approved by the Department of Revenue and Taxation relating to the owner's property and the reasons for his objection. Within thirty days after the conference, or as soon thereafter as practicable, the assessor assessing authority shall mail written notice of his action upon the objection to the owner. The owner or agent, if still aggrieved by the valuation and assessment, may appeal from the action to the Board of Assessment Appeals a department hearing officer by giving written notice of the appeal and the grounds thereof to the assessor assessing authority within thirty days from the date of the mailing of the notice. The assessor assessing authority shall notify promptly the Board of Assessment Appeals hearing officer of the appeal, who shall schedule a hearing on the appeal within thirty days after notice from the assessing authority and notify the taxpayer of the hearing date and furnish the taxpayer a summary of the applicable procedures for the hearing.
(B) The governing body of the county may by ordinance extend the time for filing an objection to the valuation and assessment of real property resulting from reassessment within a county.
(C) The Department of Revenue and Taxation shall prescribe a standard reassessment form designed to contain the information required in subsection (A) in a manner that may be understood easily.
(D) At the hearing provided in subsection (A), the hearing officer shall consider the issues raised by the taxpayer and the assessing authority and subsequently shall make a determination which is binding on both parties. The department shall prescribe the procedure applicable to these hearings which shall require information from both parties sufficient for the hearing officer to make an appropriate determination. These hearings must be conducted informally. Any party aggrieved by the determination of the hearing officer may appeal the decision to the Administrative Law Judge Division in the manner prescribed by law which shall hear the matter de novo as a contested case pursuant to Chapter 23 of Title 1. Notwithstanding the provisions of this section, a taxpayer aggrieved by the determination of the assessing authority whose property is assessed pursuant to Section 12-43-220(a) or who objects to the classification imposed by that section may waive the hearing before the hearing officer and appeal directly to the Administrative Law Judge Division for a de novo hearing of the appeal.
(E) The department shall provide sufficient hearing officers to hear all appeals expeditiously."
B. The amendment to Section 12-37-300 of the 1976 Code contained in this section applies to appeals for taxes filed for tax years after 1995.
SECTION 6. A. Article 5, Chapter 4, Title 12 of the 1976 Code is amended by adding:
"Section 12-4-580. The governing body of a county may by ordinance transfer to the department the responsibility for the appraisal, assessment, and equalization of the taxable real property under the jurisdiction of the county assessor. When this transfer occurs, the department shall perform the functions of the county assessor in that county. Before this transfer occurs, the county governing body and the department shall agree to the employees, duties, functions, and other related items to be transferred to the department. Upon agreement, and with the approval of the State Budget and Control Board, the transfer allowed under this section occurs on the first day of July following approval by the board if sufficient funds are appropriated to the department to meet the additional expenses. The State Budget and Control Board shall conduct a study to determine the expenses of the department in the transfer of functions and personnel authorized by this section and shall make recommendations to the General Assembly of the appropriations necessary to meet these expenses."
B. This section takes effect July 1, 1996.
SECTION 7. A. The first paragraph of Section 12-37-90 of the 1976 Code is amended to read:
"Except as provided in Section 12-4-580, all counties shall have a full-time assessor, whose responsibility is appraising and listing all real property, whether exempted or not, except real property required by law to be assessed by the commission department and property owned by the federal government, state government, county government or any of its political subdivisions which is exempt from property taxation. If the assessor discovers that any real property required by law to be assessed by the commission department has been omitted, he shall notify the commission department that such property has been omitted and the commission department shall be is required to appraise and assess the omitted property."
B. This section takes effect July 1, 1996.
SECTION 8. Section 12-4-320 of the 1976 Code, as last amended by Act 516 of 1994, is further amended to read:
"Section 12-4-320. The commission department may:
(1) make rules and promulgate regulations, not inconsistent with law, to aid in the performance of its duties. The commission department may prescribe the extent, if any, to which these rules and regulations must be applied without retroactive effect;
(2) upon written application, determine the tax effects of transactions and the tax liability of taxpayers, upon facts furnished to it, and it may revoke or modify the rulings if the facts should develop differently later. The commission department, in its discretion, may publish these rulings. This publication may be in brief hypothetical form so as to give all pertinent facts and decisions without violating the provisions of Section 12-54-240;
(3) compromise any tax, interest, or penalty imposed by this title or other law assigned to it and may return to the owner, in whole or in part, any goods seized or confiscated;
(4) enter into a written agreement with a person with regard to a tax liability. If the agreement is approved by a majority of the commissioners the department, it is final and conclusive and the case may not be reopened by administrative or judicial action or otherwise, except in cases of fraud, malfeasance, or misrepresentation;
(5) publish its findings and decisions in all controversies resolved by it. This publication may be in brief hypothetical form so as to give all pertinent facts, decisions, and reasons without violating the provisions of Section 12-54-240.;
(6) if damage by natural forces occurs as defined in Section 12-9-310, prescribe temporary rules including, but not limited to, the filing of returns, payment of taxes, and extensions of due dates.;
(7) waive the retroactive assessment of a state tax when it determines the taxpayer acted in good faith, and that there were reasonable grounds for the taxpayer's interpretation of the applicable law."
SECTION 9. A. Section 12-54-160 of the 1976 Code is amended to read:
"Section 12-54-160. The Commission department, unless prohibited within a specific section, may waive, dismiss, or reduce penalties provided for in this chapter;. Interest may not be waived, dismissed, or reduced except:
(1) when the taxpayer can establish that he followed professional advice which has proved inaccurate; or
(2) if the taxpayer can by clear and convincing evidence establish he did not know he was liable for the tax; or
(3) the imposition of the tax is a result of regulation or other interpretation of existing tax laws."
B. This section takes effect upon approval by the Governor and applies with respect to interest on underpayments of state taxes assessed on and after that date. The provisions of subsection A. of this section also apply to interest paid or accrued in the three years preceding the effective date of this section, but no refund of interest already paid may be made except upon application therefor to the Department of Revenue and Taxation within ninety days of the effective date of this section.
SECTION 10. A. The 1976 Code is amended by adding:
"Section 6-1-60. (A) The counties, municipalities, and special purpose or public service districts must provide notice to the public by advertising the public hearing before the adoption of its budget for the next fiscal year in the nonclassified section of the largest general circulation newspaper in the area. The public hearing must give the residents of this governing body the opportunity to express their concerns and to provide ideas or input for discussion by the local governing entity. This notice must be given fourteen days in advance of the public hearing, and must be a minimum of two columns by ten inches (four and one-half by ten inches) with at least a twenty-four point headline.
(B) The notice shall include the following:
(1) the governing entity's name;
(2) the time, date, and location of the public hearing on the budget;
(3) the total, actual, and projected expenditures of the current operating fiscal year in the budget of the governing entity;
(4) the proposed total projected operating expenditures for the next fiscal year as proposed in next year's budget for the governing entity;
(5) the proposed or estimated percentage change in operating budgets between the current fiscal year and the proposed budget;
(6) the total, actual, and projected revenue of all property taxes in dollars for the current fiscal year budget;
(7) the proposed total projected revenue of all property taxes in dollars for the proposed budget;
(8) the millage in current year dollars for the current fiscal year;
(9) the proposed millage in dollars as proposed in the budget for the next fiscal year; and
(10) any new fees or taxes that would affect more than five percent of the total proposed budget.
(C) The requirements of this section apply in the preparation of annual budget and supplemental appropriations. When the counties, municipalities, and special purpose or public service districts determine that it requires a greater tax rate after the adoption of the budget or during the current fiscal year, or fails to provide notice within the above-specified period, it must also comply with the notice provisions of this section."
B. This section is effective for fiscal years beginning after June 30, 1995.
SECTION 1. The following provisions of this act take effect upon approval by the Governor or as otherwise provided:
Part I,
Part II, Section 6 and Section 7(N) and (O)
Part III, Section 3
Part IV.
The remaining provisions of this act take effect July 1, 1996, or as otherwise provided but only upon the certification of the State Election Commission to the Code Commissioner and the Department of Revenue and Taxation of a majority "yes" vote in the referendum provided by this act.