Journal of the House of Representatives
of the First Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 10, 1995

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(1) for ninety days after the date the taxpayer gives notice of termination of a waiver or extension of the assessment period;

(2) for ninety days after the date of a proposed assessment, property tax assessment notice, or tax notice;

(3) from the date of a proposed assessment, property tax assessment notice, or tax notice, until ninety days after a decision becomes final, if a taxpayer protests the proposed assessment, property tax assessment notice, or tax notice;

(4) from the date when an action is stayed by injunction, order of a court, or statutory prohibition, until ninety days after the injunction or prohibition is lifted; and

(5) during the pendency of a stay ordered by the Taxpayers Rights Advocate.

For purposes of this section, a decision does not become final until the decision cannot be considered, heard, or reheard by request, appeal, or petition by the Administrative Law Judge Division, DMV hearing officers, or any court."

(2) It is the intention of the General Assembly that the provisions of Section 12-54-85 of the 1976 Code as added by this act supersede the provisions of Section 12-54-85 of the 1976 Code as it may be added to the 1976 Code by any other act of 1995.

E. Section 12-45-180 of the 1976 Code, as last amended by Act 9 of 1993, is further amended by deleting the last paragraph which reads:

"If the payment dates required by this section fall on a Saturday, Sunday, or legal holiday, the dates are extended to the end of the second business day immediately following which is not a Saturday, Sunday, or legal holiday."

F. Section 12-37-850 of the 1976 Code is amended to read:

"Section 12-37-850. The action of an auditor under Sections 12-37-780, 12-37-790, and 12-37-810 to 12-37-830 shall must not be interfered with by any court of this State by mandamus, summary process or any other proceeding, but the taxpayer shall have has the right rights, and no other others, to pay his tax on such return under protest than those provided by Chapter 60 of this title."

G. Section 12-37-2680 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 12-37-2680. The assessed value of the vehicle must be determined as of the first day of the month preceding the beginning of the tax year for the vehicles. The assessed values must be published in guides or manuals by the South Carolina Department of Revenue and Taxation and provided to the auditor of each county as often as may be necessary

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to provide for current values. When the value of any vehicle is not set forth in the guide or manual the auditor shall determine the value from other available information. Any person aggrieved by the valuation of his motor vehicle may appeal to the South Carolina Department of Revenue and Taxation and the department may increase, decrease or affirm the value so determined."

H. The penultimate paragraph of Section 12-43-220(c) of the 1976 Code, as added by Act 187 of 1993, is amended to read:

"Notwithstanding any other provision of law, a taxpayer may make application apply for a refund of property taxes paid when the property could have been taxed at the legal residence assessment ratio, as is provided for above. Such The application must be made in accordance with Code Sections Section 12-60-2560 12-47-70, 12-47-80, and 12-47-90. The taxpayer must establish that the property in question was in fact his legal residence. A county council may, by ordinance, allow refunds for the county government portion of property taxes for such additional past years as it determines advisable."

I. The following sections, articles, and chapters of Title 12 of the 1976 Code are repealed: Section 12-4-335, Chapter 5 of Title 12, Sections 12-7-620, 12-7-630, 12-7-1650, 12-7-1670, 12-7-2000, 12-7-2210, 12-7-2220, 12-7-2240, 12-7-2300, 12-7-2310, 12-7-2440, 12-7-2510, 12-7-2710, 12-7-2720, 12-7-2730, 12-7-2740, 12-7-2750, 12-7-2760, 12-7-2780, 12-9-400, 12-9-810, 12-9-820, 12-9-830, 12-9-840, 12-9-850, 12-16-1130, 12-16-1310, 12-16-1320, 12-16-1330, 12-16-1340, 12-16-1350, 12-16-1360, 12-16-1920, 12-16-1930, 12-16-1940, 12-19-60, 12-19-160, 12-21-160, 12-21-470, 12-21-700, 12-21-710, 12-21-2080, 12-21-2480, 12-21-2560, 12-21-2570, 12-21-2840, 12-21-2850, 12-21-3020, 12-21-3030, 12-21-3040, 12-21-3050, 12-21-3060, 12-21-3090, 12-21-3100, 12-21-3110, 12-21-3120, 12-21-3130, 12-23-70, 12-23-80, 12-23-100, 12-23-110, 12-27-50, 12-27-310, 12-27-340, 12-27-580, 12-27-820, 12-29-140, 12-29-420, 12-29-430, Article 7 of Chapter 29, 12-31-460, 12-31-470, 12-31-480, Article 7 of Chapter 31, 12-37-2180, 12-37-2480, 12-39-65, 12-43-305, Chapter 47 of Title 12, 12-49-70, Article 3 of Chapter 53, Sections 12-54-20, 12-54-30, 12-54-80, and any other provision in Title 12 concerning tax appeals. Any inconsistent provisions in Title 56 concerning appeals within the jurisdiction of the department are superseded by this act and shall have no force or effect.

J. The Code Commissioner shall:

(1) place all appropriate provisions of acts dealing with revenue related procedures and state restructuring enacted in the 1995 session of the

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General Assembly in the appropriate part of Chapter 60, Title 12 of the 1976 Code, as added by this section and in so doing he shall modify the language of code sections as necessary to implement the intent of the General Assembly;

(2) eliminate or delete from the chapter added by this section any provision of law the subject matter of which was repealed or deleted by the General Assembly in the 1995 session;

(3) amend provisions in the chapter added by this section corresponding to amendments of the tax procedure laws of this State enacted by the General Assembly during the 1995 session in other acts; and

(4) correct cross references considered necessary in affected provisions of the 1976 Code.

K. Except where inappropriate, a reference in any law or document to a provision of the 1976 Code repealed by this section is considered a reference to the appropriate provisions of Chapter 60 of Title 12 of the 1976 Code.

L. This section takes effect on the first day of the second month following approval by the Governor. However, the Tax Board of Review, as provided in Chapter 5, Title 12 of the 1976 Code, continues in existence until any cases appealed to it before the effective date of this section are disposed of.

SECTION 5. Unless otherwise stated, this act takes effect upon approval of the Governor./

Renumber sections to conform.

Amend totals and title to conform.

Rep. ROBINSON explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

RETURNED TO THE SENATE WITH AMENDMENTS

The following Bill was taken up, read the third time, and ordered returned to the Senate with amendments.

S. 9 -- Senators Holland, Saleeby, McConnell, Moore, Matthews, Stilwell, Courtney, Jackson, Rose and Giese: A BILL TO ADOPT THE UNITED STATES CENSUS OF 1990 AS THE TRUE AND CORRECT ENUMERATION OF THE INHABITANTS OF THE STATE OF

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SOUTH CAROLINA AND OF THE SEVERAL COUNTIES, MUNICIPALITIES, AND OTHER POLITICAL SUBDIVISIONS OF THIS STATE; TO AMEND TITLE 2, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 2-1-65, SO AS TO ESTABLISH ELECTION DISTRICTS FROM WHICH MEMBERS OF THE SENATE ARE ELECTED IN ACCORDANCE WITH THE UNITED STATES CENSUS OF 1990 COMMENCING WITH THE 1996 GENERAL ELECTION, TO DESIGNATE THE PRESIDENT PRO TEMPORE OF THE SENATE AS THE APPROPRIATE OFFICIAL OF THE SUBMITTING AUTHORITY TO MAKE THE REQUIRED SUBMISSION OF THE SENATE REAPPORTIONMENT PLAN CONTAINED IN THIS ACT TO THE UNITED STATES DEPARTMENT OF JUSTICE UNDER THE VOTING RIGHTS ACT; AND TO REPEAL SECTION 2-1-60, AS AMENDED, RELATING TO CURRENT ELECTION DISTRICTS FROM WHICH MEMBERS OF THE SENATE ARE ELECTED SUBJECT TO CERTAIN CONDITIONS.

S. 46--OBJECTIONS

Reps. TROTTER, TOWNSEND, HASKINS, VAUGHN and HERDKLOTZ withdrew their objections to the following Bill whereupon objections were raised by Reps. GAMBLE, SHISSIAS, ROGERS and STUART.

S. 46 -- Senators Jackson, Elliott, Rose and Washington: A BILL TO AMEND SECTIONS 20-7-2730, 20-7-2740, 20-7-2800, 20-7-2810, 20-7-2850, AND 20-7-2900, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF LICENSES FOR PRIVATE DAY CARE CENTERS AND RENEWAL THEREOF, APPROVAL OF PUBLIC DAY CARE CENTERS AND RENEWAL THEREOF, THE REGISTRATION OF OPERATORS OF FAMILY DAY CARE HOMES, AND THE ISSUANCE OF LICENSES FOR OR THE REGISTERING OF CHURCH DAY CARE CENTERS, SO AS TO REQUIRE THAT ALL PERSONS APPLYING FOR A LICENSE AS AN OPERATOR OF OR AN EMPLOYEE AT DAY CARE FACILITIES MUST UNDERGO A FINGERPRINT REVIEW TO BE CONDUCTED BY THE FEDERAL BUREAU OF INVESTIGATION AND TO PROHIBIT THE ISSUANCE OF DAY CARE LICENSES IF SUCH OPERATORS OR EMPLOYEES HAVE BEEN CONVICTED OF CERTAIN CRIMES AND TO AMEND CHAPTER 7 OF TITLE 20 BY ADDING SECTION 20-7-2720, SO AS TO PROVIDE THAT THE SOUTH CAROLINA LAW ENFORCEMENT

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DIVISION MAY NOT CHARGE MORE THAN TEN DOLLARS FOR STATE BACKGROUND CHECKS REQUIRED FOR CHILD CARE FACILITIES.

S. 370--RECALLED FROM THE COMMITTEE ON MEDICAL,

MILITARY, PUBLIC AND MUNICIPAL AFFAIRS

On motion of Rep. J. BROWN, with unanimous consent, the following Bill was ordered recalled from the Committee on Medical, Military, Public and Municipal Affairs.

S. 370 -- Senators Bryan, Giese, Washington and Peeler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-5245 SO AS TO PROVIDE REQUIREMENTS FOR PLACEMENT OF EMOTIONALLY DISTURBED CHILDREN IN SUBSTITUTE CARE SETTINGS.

RULE 5.12 WAIVED

Rep. J. BROWN moved to waive Rule 5.12, which was agreed to by a division vote of 32 to 0.

S. 368--SENATE AMENDMENTS

CONCURRED IN AND BILL ENROLLED

The Senate amendments to the following Bill were taken up for consideration.

S. 368 -- Senator Land: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 9-8-125 SO AS TO AUTHORIZE A MEMBER OF THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS WHO IS AT LEAST SIXTY-FIVE YEARS OF AGE AND ELIGIBLE TO RECEIVE RETIREMENT BENEFITS FROM THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY BUT FOR THE MEMBER'S CURRENT EMPLOYMENT AS A JUDGE OR SOLICITOR TO ELECT TO RECEIVE THESE BENEFITS.

Rep. BOAN explained the Senate amendments.

The Senate amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

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H. 3362--SENATE AMENDMENTS AMENDED AND

RETURNED TO THE SENATE

The Senate amendments to the following Bill were taken up for consideration.

H. 3362

GENERAL APPROPRIATION BILL

Rep. H. BROWN proposed the following Amendment No. 1A (Doc Name L:\council\legis\amend\PFM\7476HTC.95), which was adopted.

Amend the bill, as and if amended, by striking all after the enacting words and inserting the bill as passed by the House of Representatives.

Amend further, Part II, Permanent Provisions, by adding an appropriately numbered SECTION to read:

/SECTION ___

TO AMEND THE 1976 CODE BY ADDING SECTION 11-11-330 SO AS TO ESTABLISH THE STATE PROPERTY TAX CREDIT FUND AND REQUIRE ANNUAL APPROPRIATIONS TO THE FUND; TO AMEND THE 1976 CODE BY ADDING SECTION 12-37-251 SO AS TO ALLOW A HOMESTEAD EXEMPTION FROM PROPERTY TAXES LEVIED FOR SCHOOLS OTHER THAN THOSE LEVIED FOR BONDED INDEBTEDNESS AND LEASE PURCHASE PAYMENTS AND AFTER 1995 FROM ALL PROPERTY TAXES EXCEPT THOSE LEVIED FOR BONDED INDEBTEDNESS AND LEASE PURCHASE PAYMENTS; TO AMEND THE 1976 CODE BY ADDING SECTION 12-43-217 SO AS TO REQUIRE QUADRENNIAL REASSESSMENT; TO AMEND THE 1976 CODE BY ADDING SECTIONS 4-9-142, 5-21-70, 6-1-60, AND 59-73-35 SO AS TO IMPOSE SPENDING LIMITS ON COUNTIES, MUNICIPALITIES, AND SPECIAL PURPOSE DISTRICTS AND IMPOSE AN AD VALOREM TAX REVENUE LIMITATION ON SCHOOL DISTRICTS; TO AMEND THE 1976 CODE BY ADDING SECTION 12-43-350 SO AS TO PROVIDE A STANDARDIZED TAX BILL; TO AMEND THE 1976 CODE BY ADDING SECTION 6-1-80 SO AS TO PROVIDE FOR NOTICE REQUIREMENTS FOR LOCAL GOVERNMENT BUDGETING; TO ESTABLISH AND PROVIDE THE FUNCTIONS OF THE JOINT AD HOC COMMITTEE ON UNFUNDED MANDATES; TO AMEND THE 1976 CODE BY ADDING SECTION 12-47-75 SO AS TO PROVIDE FOR THE CREDITING OF ERRONEOUS PROPERTY TAX PAYMENTS; TO AMEND SECTION 12-43-220, AS AMENDED,
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RELATING TO CLASSIFICATION OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO PROVIDE FOR THE APPLICATION OF THE FOUR PERCENT CLASSIFICATION FOR OWNER-OCCUPIED RESIDENTIAL PROPERTY; TO AMEND SECTION 11-11-440, RELATING TO THE PROHIBITION ON GENERAL TAX INCREASES IN APPROPRIATIONS BILLS, SO AS TO REQUIRE GENERAL TAX INCREASES TO RECEIVE A TWO-THIRDS VOTE IN EACH HOUSE; AND TO EXTEND THE TIME FOR FILING FOR AGRICULTURAL USE VALUE.

A. Article 3, Chapter 11, Title 11 of the 1976 Code, is amended by adding:

"Section 11-11-330. (A) Funds credited to the `State Property Tax Relief Fund' must be used to provide property tax relief in the manner prescribed in Section 12-37-251. The first phase of property tax relief must be to remove that portion of the homeowner's tax levied for public school operating costs. For fiscal years beginning after June 30, 1996, the General Assembly shall, in addition to the funds referenced, appropriate one-half of the estimated recurring revenue growth expected for the fiscal year until such time that the phase-out of the residential property tax is complete. For fiscal years after the implementation of the phase-out of the residential property tax, the General Assembly shall appropriate an amount sufficient to reimburse local governments sums equal to the amount of taxes that were not collected for the local government by reason of the exemption provided in Section 12-37-251.

(B) This appropriation required by subsection (A) must be contained in the executive budget, Ways and Means Committee report on the general appropriations bill, the general appropriations bill at the time of third reading in the House of Representatives, the Senate Finance Committee report on the general appropriations bill, the general appropriations bill at the time of a third reading in the Senate, and in any conference report on the general appropriations bill."

B. Article 3, Chapter 37, Title 12 of the 1976 Code, is amended by adding:

"Section 12-37-251. (A) Property classified pursuant to Section 12-43-220(c) is exempt from property taxes levied for other than bonded indebtedness and payments pursuant to lease-purchase agreements for capital construction as provided in this subsection. For the 1995 property tax year, the exemption applies against millage imposed for school operations and the amount of fair market value of the homestead that is exempt from such millage must be set by the Director of the Department of Revenue and Taxation and the Comptroller General by September 30,

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1995, based on the amount available in the State Property Tax Relief Fund for fiscal year 1995-96 applying the reimbursement requirements of this section. In subsequent tax years, after the first phase as stated in Section 11-11-330(A) and its growth is funded, the exemption extends to all operating millages on homesteads and the amount of fair market value exempt from tax must be established by the Director of the Department of Revenue and Taxation and the Comptroller General by September thirtieth of the year based on the amount available in the Property Tax Relief Fund for the fiscal year applying the reimbursement requirements of this section. It is the intention of the General Assembly annually and cumulatively to provide funds in the State Property Tax Relief Fund so that the percentage of fair market value exempt pursuant to this section attains and thereafter remains at one hundred percent of fair market value. The exemption allowed by this section is in addition to the exemption provided in Section 12-37-250.

(B) Taxing entities must be reimbursed, in the manner provided in Section 12-37-270 for the revenue lost as a result of the homestead exemption provided in this section except that ninety percent of the reimbursement must be paid in the last quarter of the calendar year.

(C) Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the `index of taxpaying ability' pursuant to Section 59-20-20(3).

(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage as disclosed in Section 6-1-80(B)(10), except that the rollback millage may be increased by the percentage increase in the consumer price index for the year immediately preceding the year of reassessment.

(F) 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."

C. (1) Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:

"Section 12-43-217. Notwithstanding any other provision of law, once every fourth year each county or the State shall appraise and equalize those properties under its jurisdiction. Upon completion of the reassessment program, the county or State shall notify every taxpayer of

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any change in value or classification if the change is one thousand dollars or more. The county and State shall have one year to resolve appeals in value or classification. In the fifth year, the county or State shall implement the program and assess all property on the newly appraised values."

(2) Subsection (A) of Section 12-45-75 of the 1976 Code, as added by Act 443 of 1994, is amended to read:

"(A) The governing body of a county may by ordinance allow a taxpayer to elect to pay all ad valorem taxes on real property located in the county in quarterly installments. No installment election is allowed for taxes paid through an escrow account.

The ordinance must specify the installment due dates and it may provide for installments due and payable before January fifteenth, but the final installment due date must be January fifteenth. The ordinance may provide for a service charge of not more than two dollars on installment payments. For purposes of payment and collection, these service charges are deemed property taxes. The ordinance may not provide penalties for late installments."

D. Article 1, Chapter 9, Title 4 of the 1976 Code is amended by adding:

"Section 4-9-142. (A) The governing body of a county may not increase the millage rate and fee rates imposed for operating purposes, excluding utilities, above the rates imposed for such purposes for the prior tax year. However, the millage rate and fee rates may be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote of the governing body of the county. Notwithstanding the limitation upon millage rate and fee rate increases contained in this subsection, the millage rate and fee rates may be increased for the following purposes:

(1) in response to a natural or environmental 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, or to offset a deficit in providing a service or function which is funded through the imposition of fees by increasing such fees in an amount necessary to cover that deficit; or

(3) to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, facilities, or equipment.

(B) Notwithstanding any provision of the law to the contrary, the millage rate and fee rates may be further increased upon a two-thirds vote of the governing body. Any new sources of revenues for operating purposes must be approved by a two-thirds vote of the governing body of

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the county. However, if the governing body has fewer than six members, a three-fifths vote is required.

(C) The restriction contained in this section shall not affect millage which 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. Article 1, Chapter 21, Title 5 of the 1976 Code is amended by adding:

"Section 5-21-70. (A) The governing body of a municipality may not increase the millage rate and fee rates, excluding utilities, imposed for operating purposes above the rate and fee rates imposed for such purposes for the prior tax year. However, the millage rate and fee rates may be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote of the governing body of the municipality. Notwithstanding the limitation upon millage rate and fee rate increases contained in this subsection, the millage rate and fee rates may be increased for the following purposes:

(1) in response to a natural or environmental 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, or to offset a deficit in providing a service or function which is funded through the imposition of fees by increasing such fees in an amount necessary to cover that deficit; or

(3) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment.

(B) Notwithstanding any provision of the law to the contrary, the millage rate and fee rates may be further increased upon a two-thirds vote of the governing body. Any new sources of revenues for operating purposes must be approved by a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members, a three-fifths vote is required.

(C) The restriction contained in this section shall not affect millage which 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 will prohibit the use of energy-saving performance contracts as provided in Section 48-52-670."

F. Article 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-60. (A) The governing body authorized by law to levy special purpose or public service district taxes may not increase the millage rate imposed for operating purposes above the rate imposed for

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such purposes for the prior tax year. The millage rate may, however, be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote of the governing body authorized by law to levy special purpose or public service district taxes. Notwithstanding the limitation upon millage rate increases contained in this subsection and only to the extent authorized by law on the effective date of this section, the governing body authorized by law to levy special purpose or public service district taxes may increase the millage rate for the following purposes:

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