| Printed Page 1060, Mar. 12 | Printed Page 1080, Mar. 12 |

The authority of the governing body provided in this section is in addition to the authority granted for a referendum question initiated by petition.

B. This SECTION takes effect upon approval by the Governor.

SECTION 9. Section 12-37-251 of the 1976 Code, as added by Act 145 of 1995, is amended to read:

"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. 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 based on the amount available in the State Property Tax Relief Fund. 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 as follows:

(1) for debt service and for payments pursuant to lease-purchase agreements;

(2) by special purpose or public service districts;

(3) county special tax districts;

(4) ad valorem taxes levied pursuant to a referendum in which a majority of the qualified electors of the jurisdiction voting in the referendum voted in favor of levying the taxes.

(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).

(D) 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."

B. This SECTION is effective for property tax years beginning after 1996.

SECTION 10. A. The penultimate paragraph of Section 12-37-930 of the 1976 Code, as last amended by Act 32 of 1995, is further amended to read:

"(A) In no event may the original cost be reduced more than eighty ninety percent, except this limit is ninety percent for custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. In the year of acquisition, depreciation is allowed as if the property were owned for the full year. The term `original cost' means gross capitalized cost, including property on which the taxpayer made the election allowed pursuant to Section 179 of the Internal Revenue Code of 1986, as shown by the taxpayer's records for income tax purposes. For purposes of this paragraph, custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals are molds and dies designed, produced, and conditioned to the special order of a manufacturer.
(B) There is established in the State Treasury a fund separate and distinct from the general fund of the State and all other funds styled The Depreciation Property Tax Reimbursement Fund. Annually, the General Assembly shall appropriate to this fund an amount sufficient to reimburse all local taxing entities the amount of revenue not collected as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this section. Reimbursement is not allowed for any depreciation allowed in connection with custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. Reimbursements must be paid from the fund in the manner provided in Section 12-37-270, mutatis mutandis."

B. This SECTION takes effect January 1, 1997.

Amend the bill further, as and if amended, page 8, line 10, by striking PART II in its entirety and inserting in lieu thereof the following:

SECTION 1. A. The entity authorized to hold elections in each county and municipality must conduct a referendum on the question contained herein on November 5, 1996. The county and the municipality must have separate ballots. The electors of a municipality may vote in both the county and the municipal referendum. The state election laws apply to this referendum, mutatis mutandis. The entity authorized to hold elections shall publish the results of the referendum and certify them to the appropriate local governing body.

B. If the majority of voters within a county approve the question, the provisions of PART II apply to the entire county. If the majority of voters within a municipality approve the question, the provisions of PART II apply within that municipality. If the result of this referendum within the county is not in favor of the question, then the provisions of this PART do not apply to such county, but may apply to a municipality if the result of the referendum within the municipality is in favor of the question. If the result of this referendum within the municipality is not in favor of the question, then the provisions of this PART do not apply to such municipality, but may apply to the entire county if the result of the referendum within the county is in favor of the question. The referendum question must read substantially as follows:

"Do you favor limiting Act 283 of 1975 known as the Home Rule Act in order to prohibit (Municipality or County) from imposing any new taxes or fees unless enacted before December 31, 1995, or unless expressly authorized by the General Assembly and imposed upon approval of two-thirds of the local governing body and limiting an increase in tax, fee, and millage rates to the Consumer Price Index unless there is a declared emergency or unless declared necessary to pay for a judicially-mandated expenditure or bonded indebtedness or to offset a prior year's deficit and authorizing a tax, fee, or millage rate increase above the Consumer Price Index if approved by two-thirds vote of the local governing body and allowing (Municipality or County), by majority vote of the local governing body, to impose a cumulative fee or tax of three percent on accommodations furnished to

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'."

In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the entity responsible for placing this question on the ballot is granted the limited authority to modify the ballot question only to the extent necessary to change "three percent" to "four percent".

SECTION 2. 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 impose any new tax or fee after December 31, 1995, unless specifically authorized by the General Assembly: (1) in a prior act granting specific authorization for a fee for a particular local government service, provided that the purpose for which the proceeds of the fee is used is reasonably related to the nature of the fee and the proceeds are used only for the specific purpose for which the fee is levied or in a prior act granting specific authorization for the imposition of a tax; (2) by this act; or (3) in a future act. The governing body of a county may not increase tax rates or fee rates, excluding fee rates charged for public utilities and fee rates charged by hospitals, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:

(1) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;

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

(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and fee rates must return to the rates immediately preceding the emergency;

(5) to site, establish, or operate a regional facility, which consists of two or more counties, under the provisions of Chapter 96 of Title 44 of the 1976 Code, as amended; or

(6) 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. This section may not be construed to affect the ability of counties or other entities authorized by law to levy school millage for operating purposes.

(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.

(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any purposes must be approved by a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.

(D)(1) Except as provided in subsection (3), any county fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not be imposed in any incorporated areas of the county without the consent of the affected municipality. The cumulative rate of county and municipal fees based on meals provided in establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not exceed one percent, regardless of the date such fee or tax was imposed. The cumulative rate of county

(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for the establishment, operation, and maintenance of the following purposes:

(a) tourism related buildings to include, but not limited to, civic centers, coliseums, and aquariums;

(b) cultural, recreational, or historical facilities;

(c) beach access and renourishment;

(d) highways, roads, streets, and bridges providing access to tourist destinations; or

(e) advertisements and promotions related to tourism development.

(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).

(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. This subsection does not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not

(F) Effective January 1, 1997, the governing body of each county is prohibited from charging any fee or tax on the transfer of real property. The provisions of this subsection to not apply in the case of any county real estate transfer tax or fee imposed on or before August 1, 1993, if a majority of voters voting in a referendum, to be held on the question contained herein on November 5, 1996, in each county which imposed the fee on or before August 1, 1993, vote in favor of the continued imposition of the fee. The question on the ballot shall read substantially as follows:

"Shall the real estate transfer fee continue to be imposed in the of ?

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 3. 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 impose any new tax or fee after December 31, 1995, unless specifically authorized by the General Assembly: (1) in a prior act granting specific authorization for a fee for a particular local government service, provided that the purpose for which the proceeds of the fee is used is reasonably related to the nature of the fee and the proceeds are used only for the specific purpose for which the fee is levied or in a prior act granting specific authorization for the imposition of a tax; (2) by this act; or (3) in a future act. The governing body of a municipality may not increase tax rates or fee rates, excluding fee rates charged for public utilities, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:

(1) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;

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

(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency

(4) 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.

(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.

(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any 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 or more than twelve members, a three-fifths vote is required.

(D)(1) Except as provided in subsection (3), no municipal fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be imposed in any unincorporated areas of the county without the consent of the affected county. The cumulative rate of county and municipal fees based on meals provided in establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not exceed one percent, regardless of the date such fee or tax was imposed. The cumulative rate of county and municipal fees based on accommodations provided transients may not exceed three percent, regardless of the date such fee or tax was imposed.

(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for establishment, operation, and maintenance of the following purposes:

(a) tourism related buildings to include, but not limited to, civic centers, coliseums, and aquariums;

(b) cultural, recreational, or historical facilities;

(d) highways, roads, streets, and bridges providing access to tourist destinations; or

(e) advertisements and promotions related to tourism development.

(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).

(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. This subsection does not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not previously taxed, new construction, or renovation of existing structures occurring during the reassessment period.

(F) Effective July 1, 1997, the governing body of each municipality is prohibited from charging any fee or tax on the transfer of real property. The provisions of this subsection do not apply in the case of any municipal real estate transfer tax or fee imposed on or before August 1, 1993, if a majority of voters voting in a referendum, to be held on the question contained herein on November 5, 1996, in each municipality which imposed the fee on or before August 1, 1993, vote in favor of the continued imposition of the fee. The question on the ballot shall read substantially as follows:

"Shall the real estate transfer fee continue to be imposed in the of ?

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'."

"( ) The provisions of Sections 4-9-142 and 5-21-70 do not apply with respect to calculating the fee in lieu of taxes allowed pursuant to this section and Chapter 12 of this title."

SECTION 5. Section 132B, Part II of Act 497 of 1994 is amended to read:

"132B. The provisions of Section 6-1-70 of the 1976 Code do not apply in the case of any county or municipal real estate transfer tax or fee imposed on or before August 1, 1993 if a majority of voters voting in a referendum, to be held on the question contained herein on November 5, 1996 in each county or municipality which imposed the fee on or before August 1, 1993, vote in favor of the continued imposition of the fee. The question on the ballot shall read substantially as follows:

"Shall the real estate transfer fee continue to be imposed in the of ?

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 6. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding may not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION 7. Upon approval by the Governor, this PART takes effect July 1, 1997, or as otherwise provided, but the provisions of this PART apply only in counties or municipalities in which the entity authorized to hold elections has certified a majority "yes" vote in the referendum provided by SECTION 1 of this PART. However, the provisions of this PART relating to a referendum on the continued imposition of a real estate transfer fee take effect January 1, 1997, but apply only in counties or municipalities in which the entity authorized to

| Printed Page 1060, Mar. 12 | Printed Page 1080, Mar. 12 |

This web page was last updated on Monday, June 29, 2009 at 1:56 P.M.