Reference is to Printer's Date 2/28/19-H.
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION ___. A. Section 6-1-320 of the 1976 Code is amended to read:
"Section 6-1-320.
(A)(1)
Notwithstanding Section 12-37-251(E), a local governing
body may increase the millage rate imposed for general operating
purposes above the rate imposed for such purposes for the
preceding tax year only to the extent of the increase in the
average of the twelve monthly consumer price indices for the
most recent twelve-month period consisting of January through
December of the preceding calendar year, plus, beginning
in 2007, the percentage increase in the previous year in the
population of the entity as determined by the Office of Research
and Statistics of the Revenue and Fiscal Affairs
Office. If the average of the twelve monthly consumer
price indices experiences a negative percentage, the average is
deemed to be zero. If an entity experiences a reduction
in population, the percentage change in population is deemed to
be zero. However, in the year in which a reassessment
program is implemented, the rollback millage, as calculated
pursuant to Section 12-37-251(E), must be used in lieu of the
previous year's millage rate.
(2) There may
be added to the operating millage increase allowed pursuant to
item (1) of this subsection any such increase, allowed but not
previously imposed, for the three property tax years preceding
the year to which the current limit applies. (B) Notwithstanding the limitation
upon millage rate increases contained in subsection (A), the
millage rate limitation may be suspended and the millage rate
may be increased
upon a two-thirds vote of the
membership of the local governing body for the
following purposes:
(1)
the deficiency of the preceding year;
(2)
any catastrophic event outside the control of the
governing body such as a natural disaster, severe weather event,
act of God, or act of terrorism, fire, war, or riot;
(3)
compliance with a court order or decree;
(4)
taxpayer closure due to circumstances outside the control
of the governing body that decreases by ten percent or more the
amount of revenue payable to the taxing jurisdiction in the
preceding year; or
(5)
compliance with a regulation promulgated or statute
enacted by the federal or state government after the
ratification date of this section for which an appropriation or
a method for obtaining an appropriation is not provided by the
federal or state government.
(6)
purchase by the local governing body of undeveloped real
property or of the residential development rights in undeveloped
real property near an operating United States military base
which property has been identified as suitable for residential
development but which residential development would constitute
undesirable residential encroachment upon the United States
military base as determined by the local governing body. The
local governing body shall enact an ordinance authorizing such
purchase and the ordinance must state the nature and extent of
the potential residential encroachment, how the purchased
property or development rights would be used and specifically
how and why this use would be beneficial to the United States
military base, and what the impact would be to the United States
military base if such purchase were not made. Millage rate
increases for the purpose of such purchase must be separately
stated on each tax bill and must specify the property, or the
development rights to be purchased, the amount to be collected
for such purchase, and the length of time that the millage rate
increase will be in effect. The millage rate increase must
reasonably relate to the purchase price and must be rescinded
five years after it was placed in effect or when the amount
specified to be collected is collected, whichever occurs first.
The millage rate increase for such purchase may not be
reinstated unless approved by a majority of the qualified voters
of the governmental entity voting in a referendum. The cost of
holding the referendum must be paid from the taxes collected due
to the increased millage rate; or
(7)
to purchase capital equipment and make expenditures
related to the installation, operation, and purchase of the
capital equipment including, but not limited to, taxes, duty,
transportation, delivery, and transit insurance, in a county
having a population of less than one hundred thousand persons
and having at least forty thousand acres of state or national
forest land. For purposes of this section, 'capital equipment'
means an article of nonexpendable, tangible, personal property,
to include communication software when purchased with a
computer, having a useful life of more than one year and an
acquisition cost of fifty thousand dollars or more for each
unit.
If a tax is levied to pay for items (1)
through (5) above, then the amount of tax for each taxpayer must
be listed on the tax statement as a separate surcharge, for each
aforementioned applicable item, and not be included with a
general millage increase. Each separate surcharge must have an
explanation of the reason for the surcharge. The surcharge must
be continued only for the years necessary to pay for the
deficiency, for the catastrophic event, or for compliance with
the court order or decree.
(C) The millage
increase permitted by subsection (B) is in addition to the
increases from the previous year permitted pursuant to
subsection (A) and shall be an additional millage levy above
that permitted by subsection (A). The millage limitation
provisions of this section do not apply to revenues, fees, or
grants not derived from ad valorem property tax millage or to
the receipt or expenditures of state funds. The
millage rate limitation provided for in subsection (A) may be
overridden and the millage rate may be further increased by a
positive majority vote of the appropriate governing body. The
vote must be taken at a specially called meeting held solely for
the purpose of taking a vote to increase the millage rate. The
governing body must provide public notice of the meeting
notifying the public that the governing body is meeting to vote
to override the limitation and increase the millage rate.
Public comment must be received by the governing body before the
override vote.
(D) The restriction
contained in this section does not affect millage that is levied
to pay bonded indebtedness or payments for real property
purchased using a lease-purchase agreement or used to maintain a
reserve account. Nothing in this section prohibits the use of
energy-saving performance contracts as provided in Section
48-52-670.
(E) Notwithstanding any
provision contained in this article, this article does not and
may not be construed to amend or to repeal the rights of a
legislative delegation to set or restrict school district
millage, and this article does not and may not be construed to
amend or to repeal any caps on school millage provided by
current law or statute or limitation on the fiscal autonomy of a
school district that are more restrictive than the limit
provided pursuant to subsection (A) of this section.
(F) The restriction
contained in this section does not affect millage imposed to pay
bonded indebtedness or operating expenses of a special tax
district established pursuant to Section 4-9-30(5), but the
special tax district is subject to the millage rate limitations
in Section 4-9-30(5).
(G)(1) Notwithstanding
the limitation upon millage rate increases contained in
subsection (A), a fire district's governing body may adopt an
ordinance or resolution requesting the governing body of the
county to conduct a referendum to suspend the millage rate
limitation for general operating purposes of the fire district.
If the governing body of the county agrees to hold the
referendum and subject to the results of the referendum, the
millage rate limitation may be suspended and the millage rate
may be increased for general operating purposes of the fire
district. The referendum must be held at the time of the general
election, and upon a majority of the qualified voters within the
fire district voting favorably in the referendum, the millage
rate may be increased in the next fiscal year. The referendum
must include the amount of the millage increase. The actual
millage levy may not exceed the millage increase specified in
the referendum.
(2)
This subsection only applies to a fire district that
existed on January 1, 2014, and serves less than seven hundred
homes.
(H) Notwithstanding the
limitation upon millage rate increases contained in subsection
(A), the governing body of a county may adopt an ordinance,
subject to a referendum, to suspend the millage rate limitation
for the purpose of imposing up to six-tenths of a mill for
mental health. The referendum must be held at the time of the
general election, and upon a majority of the qualified voters
within the county voting favorably in the referendum, this
special millage may be imposed in the next fiscal year. The
state election laws apply to the referendum mutatis mutandis.
This special millage may be removed only upon a majority vote of
the local governing body. The amounts collected from the
increased millage:
(1) must be deposited
into a mental health services fund separate and distinct from
the county general fund and all other county funds;
(2) must be dedicated
only to expenditures for mental health services in the county;
and
(3) must not be used
to supplant existing funds for mental health programs in the
county.
(I) The
positive majority vote of the governing body required by this
section does not apply to school districts that have their
budgets approved by qualified electors at a town
meeting."
B.1. Section 11-11-150(A)(1) of the 1976 Code is amended to read:
"(1)
Reserved Section 12-37-251 for the
residential property tax exemption;"
2. This section is effective for fiscal years beginning after June 30, 2019.
C. 1. Section 12-37-220(B)(47) of the 1976 Code is amended to read:
"(47)(a)
Effective for property tax years beginning
after 2006 and to the extent not already exempt pursuant to
Section 12-37-250, one hundred percent of the fair market value
of owner-occupied residential property eligible for and
receiving the special assessment ratio allowed owner-occupied
residential property pursuant to Section 12-43-220(c) is exempt
from all property taxes imposed for school operating purposes
but not including millage imposed for the repayment of general
obligation debt.
(b)
Notwithstanding any other provision of law,
property exempted from property tax in the manner provided in
this item is considered taxable property for purposes of bonded
indebtedness pursuant to Section 15 of Article X of the
Constitution of this State.
(c) The
exemptions allowed by this item may not be deleted or reduced
except by a legislative enactment receiving a recorded roll call
vote of at least a two-thirds majority of the membership of each
house of the General Assembly. Reserved"
2. This section is effective for property tax years beginning after 2018.
D. 1. Section 12-37-270(A) of the 1976 Code is amended to read:
"(A) As provided
in Section 11-11-150, there must be credited to the Trust Fund
for Tax Relief in a fiscal year an amount sufficient to pay the
reimbursement provided by this section. From the trust fund,
the department annually shall pay to the county treasurer of the
county in which the dwelling is situate for the account of each
county, school district, or special district in it a sum equal
to the amount of taxes that was not collected for the county,
school district, or special district by reason of the exemption
provided for in Section 12-37-250. The department also
annually, from the trust fund, shall pay to the governing body
of the municipality in which the dwelling is situate a sum equal
to the amount of taxes that was not collected for the
municipality by reason of the exemption provided for in Section
12-37-250. However, no reimbursement must be paid
pursuant to this section for revenue for school operations not
collected because of the exemption allowed pursuant to Section
12-37-250. The county treasurer and municipal
governing body shall furnish the department on or before April
first following the tax year, or during an extension authorized
by the department not to exceed sixty days, an accounting or
statement as prescribed by the department that reflects the
amount of county, municipal, school district, or special
district taxes that was not collected because of the exemption.
Funds paid by the department as the result of an erroneous or
improper application must be returned to the department for
deposit in the general fund of the State."
2. This section is effective for fiscal years beginning after June 30, 2019.
E. 1. Section 12-37-251 of the 1976 Code is amended to read:
"Section 12-37-251.
(A) RESERVED
(1) The Trust Fund for Tax Relief
must contain an amount equal to the revenue necessary to fund a
property tax exemption of one hundred thousand dollars based on
the fair market value of property classified pursuant to Section
12-43-220(c) calculated on the school operating millage imposed
for tax year 1995 or the current school operating millage,
whichever is lower, excluding taxes levied for bonded
indebtedness and payments pursuant to lease purchase agreements
for capital construction. The 1995 tax year school operating
millage or the current school operating millage, whichever is
lower, is the base year millage for purposes of calculating the
amount necessary to fund the Trust Fund for Tax Relief in
accordance with this section. However, in years in which the
values resulting from a countywide reassessment and equalization
program are implemented, the base year millage must be adjusted
to an equivalent millage rate in the manner that the Department
of Revenue shall prescribe. Funds distributed to a taxing
district as provided in subsection (B) must be used to provide a
uniform property tax exemption for all property in the taxing
district which is classified pursuant to Section 12-43-220(c),
excluding taxes levied for bonded indebtedness and payments
pursuant to lease purchase agreements for capital construction.
(2)
Notwithstanding the provisions of this
subsection, a school district whose operating millage falls
below the 1995 school year operating millage may request to
receive tax relief based on the 1995 operating millage, or
equivalent millage rate, if one of the following conditions are
met:
(a)
the current operating millage per pupil plus the
current debt service millage is equal to or less than the total
millage per pupil for 1995;
(b)
the operating millage per pupil for the 1995 tax
year reduced by the amount by which the total millage per pupil
for all purposes in the current year exceeds the total millage
per pupil for the 1995 tax year but not below the actual
operating millage per pupil for the current year.
The Department of Revenue is
responsible for certifying that the conditions are met based on
the latest completed fiscal year data of the requesting
district.
Any funds received by an eligible
school district in excess of its current millage under this
subsection may be used by the district to pay bonded
indebtedness.
(B)
RESERVED(1)
School districts must be reimbursed from revenues
credited to the Trust Fund for Tax Relief for a fiscal year, in
the manner provided in Section 12-37-270, for the revenue lost
as a result of the homestead exemption provided in this section.
Ninety percent of the reimbursement must be paid in the last
quarter of the calendar year on December first. From funds
appropriated to the Office of the Comptroller General in the
annual general appropriations act, the Comptroller shall make
the calculations and distributions required pursuant to this
subsection. If amounts received by a school district pursuant to
this subsection are insufficient to reimburse fully for the base
year operating millage, the local school board, within its
authority, shall decide how to make up the shortfall, if
necessary. Amounts received by a district in excess of the
amount necessary to reimburse the district for the base year
operating millage must first be used to reduce any operating
millage imposed since the 1995 base year, must next be used for
school debt service purposes, and any funds remaining may then
be retained by the district.
(2)
School districts must be reimbursed on a per
capita basis, but a district may not receive as a reimbursement
for a fiscal year an amount less than the actual reimbursement
amount it received in fiscal year 1998-1999. If amounts credited
to the Trust Fund for Tax Relief for a fiscal year pursuant to
item (1) of this subsection are insufficient to pay the full
amount of the reimbursements provided by this item, then all
amounts credited to the trust fund for a fiscal year for this
reimbursement in excess of the amount of the reimbursements paid
pursuant to this section in fiscal year 1998-1999 must be
allocated only to those districts receiving less than the full
per capita reimbursement, and this allocation must be on a per
capita basis among only those counties receiving some part of
this allocation.
(3)
Operating millage levied in a county for
alternative schools, career and technology centers, and county
boards of education whether or not levied countywide or on a
school district by school district basis in a county also is
considered school operating millage to which the property tax
exemption provided by this section applies. County treasurers
shall consider these operating millages in determining revenue
lost when making disbursements to school districts from trust
funds for tax relief funds under this section.
(C)
RESERVED 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) RESERVED
(E) Rollback millage is
calculated by dividing the prior year property taxes levied as
adjusted by abatements and additions by the adjusted total
assessed value applicable in the year the values derived from a
countywide equalization and reassessment program are
implemented. This amount of assessed value must be adjusted by
deducting assessments added for property or improvements not
previously taxed, for new construction, and for
renovation of existing structures, and assessments
attributable to increases in value due to an assessable transfer
of interest.
(F)
RESERVED 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 Office of
Research and Statistics of the Revenue and Fiscal Affairs
Office's estimate of total school tax revenue loss resulting
from the exemption in the next fiscal year.
(G) If the
boundaries of a municipality extend into more than one county
and those counties implement the countywide appraisal and
equalization programs required pursuant to Section 12-43-217 on
different schedules, then the governing body of the municipality
shall set an equivalent millage to be used to compute municipal
ad valorem property taxes. The equivalent millage to be set by
the municipal governing body must be determined by methodology
established by the respective county auditors which must be
consistent with the methodology for calculating equivalent
millage to be established by the Department of Revenue for use
in these situations for the purpose of equalizing the municipal
property tax on real property situated in different
counties."
2. The property tax exemption and reimbursement for the exemption allowed by this section are effective for property tax years beginning after 2018.
F. Section 11-11-157 of the 1976 Code is repealed.
G. 1. Article 7, Chapter 10, Title 4 of the 1976 Code is repealed.
2. Sections 11-11-155 and 11-11-156 of the 1976 Code are repealed.
3. Article 11, Chapter 36, Title 12 of the 1976 Code is repealed.
4. Subsections 2 and 3 of this section take effect July 1, 2019.
H. 1. Section 12-37-3130 of the 1976 Code is amended to read:
"Section 12-37-3130.
As used in this article:
(1) 'Additions' or
'improvements' mean an increase in the value of an existing
parcel of real property because of:
(a)
new construction;
(b)
reconstruction;
(c)
major additions to the boundaries of the property or a
structure on the property;
(d)
remodeling; or
(e)
renovation and rehabilitation, including installation.
Additions or improvements do not include minor construction or
ongoing maintenance and repair of existing structures. The
repair or reconstruction of a structure damaged or destroyed by
a disaster, to include, but not limited to, construction
defects, defective materials, fire, wind, hail, flood, and acts
of God, is not an addition or improvement to the extent that the
structure as repaired or reconstructed is similar in size,
utility, and function of the structure damaged or destroyed, and
the rebuilding or reconstruction is begun within eight years
after determination of the damage or destruction. Construction
of facilities in a home that make the home handicap accessible
is not an addition or improvement if the utility and function of
the structure remains unchanged. The installation of a fire
sprinkler system in a commercial or residential structure when
the installation is not required by law, regulation, or code is
not an addition or improvement if the utility and function of
the structure remains unchanged.
(2) 'Adjustments' mean
changes in fair market value as determined in
and property tax value resulting from periodic countywide
appraisal and equalization programs conducted pursuant to
Section 12-43-217 as allowed pursuant to Section 6,
Article X of the Constitution of this State, but adjustments are
subject to the limits on increases provided in that Section 6
and as further provided in Section 12-37-3140(B).
(3) 'Appraisal' or
'appraised' means the process provided by law for the property
tax assessor to determine the fair market value of real property
and additions and improvements to real property.
(4) 'Assessable
transfer of interest' means a transfer of an existing interest
in real property that subjects the real property to
appraisal triggers a stepup. For purposes of
this definition, an existing interest in real property includes
life estate interests.
(5)
RESERVED
(6)
'Commonly controlled' means persons having relationships
as described in Section 267(b) of the Internal Revenue Code as
defined in Section 12-6-40(A).
(7)(6)
'Conveyance' means the date of the transfer of an
assessable transfer of interest in real property. Failure to
record legal instruments evidencing a transfer of interest gives
rise to no inference as to whether or not an assessable transfer
of interest has occurred.
(7) 'Fair
market value' means the fair market value of real property and
improvements to real property determined by appraisals of the
property tax assessor based on initial appraisals and periodic
reappraisals conducted pursuant to Section 12-43-217.
(8) 'Property tax
assessor' means the county assessor, an assessor appointed to
handle multiple county assessments pursuant to an
intergovernmental agreement, or the Department of Revenue, as
applicable.
(9) 'Property
tax value' means the value determined pursuant to item (7) when
the application of the limit imposed pursuant to Section
12-37-3140(B) results in an amount less than fair market value.
For all purposes of property tax, property tax value is deemed
fair market value when it is less than fair market
value.
(10) 'Stepup'
means the substitution of fair market value for property tax
value triggered when a parcel of real property undergoes an
assessable transfer of interest."
2. Section 12-37-3140 of the 1976 Code is amended to read:
"Section 12-37-3140.
(A)(1) For
property tax years beginning after 2006, the fair
market value of real property is its fair market value
applicable for the later of:
(a)
the base year, as defined in subsection (C);
(b)
December thirty-first of the year in which an assessable
transfer of interest has occurred triggers a
stepup;
(c)
as determined on appeal; or
(d)
as it may be adjusted as determined in a
countywide reassessment program conducted pursuant to Section
12-43-217, but limited to increases in such value as
provided in subsection (B) of this section with any
increase limited to property tax value.
(2)
To the fair market value and property tax value of
real property as determined at the time
provided in item (1) of this subsection, there must be added the
fair market value of subsequent improvements and additions to
the property.
(B)
Any An increase in the fair market
value of real property attributable to the periodic countywide
appraisal and equalization program implemented pursuant to
Section 12-43-217 is limited to fifteen percent within a
five-year period to the otherwise applicable fair market value.
This limit must be calculated separately on
the land and improvements as a
whole. However, this limit does not apply to the fair
market value of additions or improvements to real property in
the year those additions or improvements are first subject to
property tax, nor do they apply to the fair market value
of real property when an assessable transfer of interest
occurred in the year that the transfer value is first subject to
tax does it the year a stepup is
implemented.
(C) For purposes of
determining a 'base year' fair market value pursuant to this
section, the fair market value of real property is its appraised
value applicable for property tax year 2007.
(D) Real property
valued by the unit valuation concept is excluded from the limits
provided pursuant to subsection (B) of this section.
(E) Value attributable
to additions and improvements, and changes in value
resulting from assessable transfers of interest occurring in a
property tax year stepups are first subject to
property tax in the following tax year except as provided
pursuant to Section 12-37-670(B)."
3. That portion of Section 12-37-3150(A) of the 1976 Code preceding item (1) is amended to read:
"(A) An
assessable transfer of interest triggers a stepup in value of a
parcel of real property effective as provided in Section
12-37-3140(E). For purposes of determining when a
parcel of real property must be appraised, an An
assessable transfer of interest in real property includes, but
is not limited to, the following transactions or
circumstances:"
4. Section 12-60-2510(A)(1)(b) of the 1976 Code is amended to read:
"(b) property
tax value as limited by Article 25, Chapter 37,
Title 12 defined pursuant to Section
12-37-3130(9);"
5. This section is effective for property tax years beginning after 2018. Property tax assessors shall conform the values of parcels of real property which underwent an assessable transfer of interest in any tax year beginning after 2006 and before 2019 and before the effective date of this section, to the fair market value and property tax value of these parcels as determined pursuant to Article 25, Chapter 37, Title 12 of the 1976 Code, the South Carolina Real Property Valuation Reform Act, as amended by this section. No refund is allowed as a result of these adjustments.
I. 1. If an amendment to Section 6, Article X of the Constitution of this State is ratified by the General Assembly that (1) eliminates the fifteen percent over five years constitutional 'cap' on increases in the fair market value of real property for purposes of imposition of the property tax; and (2) eliminates an 'assessable transfer of interest' as an event which may change the value of real property for purposes of imposition of the property tax, then Article 25, Chapter 37, Title 12 of the 1976 Code, the South Carolina Real Property Valuation Reform Act, is repealed for property tax years beginning after the year of ratification. Effective for the property tax years beginning after this repeal, the value of real property for purposes of the property tax is the fair market value of the property, as that term was defined pursuant to the former provisions of Section 12-37-3130(7) of the 1976 Code, as that had been most recently determined pursuant to the former provisions of Article 25, Chapter 37, Title 12 of the 1976 Code. Thereafter, the value of real property for purposes of imposition of the property tax is its fair market value determined in the manner provided by law.
2. If the provisions of subsection A of this section take effect, then effective for property tax years beginning after the ratification date described in subsection A of this section:
(1) Section 12-43-220 of the 1976 Code is amended by deleting the last undesignated paragraph which reads:
"As used in this section, fair market value with reference to real property means fair market value determined in the manner provided pursuant to Article X of the Constitution of this State, Section 12-37-930 and Article 25, Chapter 37 of this title."
(2) Section 12-60-30(19) of the 1976 Code is amended to read:
"(19) 'Property tax assessment' means a valuation or determination of property value for annual property tax purposes arrived at by multiplying the fair market value or special use value of the property by the appropriate assessment ratio for the taxable property's classification."
(3) Section 12-60-2510(A)(1)(b) of the 1976 Code is amended to read:
"(b) value
as limited by Article 25, Chapter 37, Title 12;
RESERVED;"
J. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
K. Except where otherwise stated, this act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.