S*233 Session 112 (1997-1998)
S*0233(Rat #0192, Act #0122 of 1997) General Bill, By Hayes and Russell
A BILL TO AMEND SECTION 4-37-30, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO LOCAL SALES AND USE TAXES FOR TRANSPORTATION FACILITIES, SO AS TO
PROVIDE THAT THE TAX MAY BE IMPOSED FOR SINGLE OR MULTIPLE PROJECTS; TO
CLARIFY THE TYPES OF PROJECTS FOR WHICH THE PROCEEDS OF THE TAX ARE TO BE
USED; TO REQUIRE THAT THE REFERENDUM HELD BEFORE A TAX MAY BE IMPOSED NOT BE
HELD MORE OFTEN THAN ONCE IN TWELVE MONTHS AND MUST BE HELD ON THE TUESDAY
FOLLOWING THE FIRST MONDAY IN NOVEMBER; AND TO DELETE OBSOLETE PROVISIONS; AND
TO AMEND SECTION 4-37-20, RELATING TO THE RIGHTS AND POWERS OF THE BOARD OF
TRANSPORTATION AUTHORITY CREATED BY THE GOVERNING BODY OF A COUNTY, SO AS TO
DELETE THE POWER OF EMINENT DOMAIN, FROM THE POWERS OF THE BOARD AND TO
PROVIDE THAT THE BOARD MAY RECOMMEND TO THE COUNTY GOVERNING BODY THAT
PROPERTY BE ACQUIRED THROUGH EMINENT DOMAIN, AND IF THE PROPERTY IS TO BE
ACQUIRED THROUGH EMINENT DOMAIN, THE GOVERNING BODY WILL COMMENCE THE
PROCEEDINGS.-AMENDED TITLE
01/22/97 Senate Introduced and read first time SJ-8
01/22/97 Senate Referred to Committee on Judiciary SJ-8
04/09/97 Senate Committee report: Favorable with amendment
Judiciary SJ-8
04/16/97 Senate Amended SJ-27
04/16/97 Senate Read second time SJ-27
04/16/97 Senate Ordered to third reading with notice of
amendments SJ-27
04/24/97 Senate Amended SJ-30
04/24/97 Senate Read third time and sent to House SJ-30
04/29/97 House Introduced and read first time HJ-4
04/29/97 House Referred to Committee on Judiciary HJ-4
05/28/97 House Committee report: Favorable Judiciary HJ-2
05/29/97 House Read second time HJ-26
06/03/97 House Read third time and enrolled HJ-76
06/09/97 Ratified R 192
06/13/97 Signed By Governor
06/13/97 Effective date 06/13/97
06/26/97 Copies available
06/26/97 Act No. 122
(A122, R192, S233)
AN ACT TO AMEND SECTION 4-37-30, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO LOCAL SALES AND USE
TAXES FOR TRANSPORTATION FACILITIES, SO AS TO PROVIDE
THAT THE TAX MAY BE IMPOSED FOR SINGLE OR MULTIPLE
PROJECTS; TO CLARIFY THE TYPES OF PROJECTS FOR WHICH
THE PROCEEDS OF THE TAX ARE TO BE USED; TO REQUIRE
THAT THE REFERENDUM HELD BEFORE A TAX MAY BE
IMPOSED NOT BE HELD MORE OFTEN THAN ONCE IN TWELVE
MONTHS AND MUST BE HELD ON THE TUESDAY FOLLOWING
THE FIRST MONDAY IN NOVEMBER; AND TO DELETE
OBSOLETE PROVISIONS; AND TO AMEND SECTION 4-37-20,
RELATING TO THE RIGHTS AND POWERS OF THE BOARD OF
TRANSPORTATION AUTHORITY CREATED BY THE
GOVERNING BODY OF A COUNTY, SO AS TO DELETE THE
POWER OF EMINENT DOMAIN, FROM THE POWERS OF THE
BOARD AND TO PROVIDE THAT THE BOARD MAY
RECOMMEND TO THE COUNTY GOVERNING BODY THAT
PROPERTY BE ACQUIRED THROUGH EMINENT DOMAIN, AND
IF THE PROPERTY IS TO BE ACQUIRED THROUGH EMINENT
DOMAIN, THE GOVERNING BODY WILL COMMENCE THE
PROCEEDINGS.
Be it enacted by the General Assembly of the State of South Carolina:
Sales and use tax for transportation facilities; single or multiple
projects
SECTION 1. Section 4-37-30(A) of the 1976 Code, as added by Act
52 of 1995, is amended to read:
"(A) Subject to the requirements of this section, the governing
body of a county may by ordinance impose a one percent sales and use tax
within its jurisdiction for a single project or for multiple projects and for
a specific period of time to collect a limited amount of money.
(1) The governing body of a county may vote to impose the tax
authorized by this section, subject to a referendum, by enacting an
ordinance. The ordinance must specify:
(a) the project or projects and a description of the project or
projects for which the proceeds of the tax are to be used, which may
include projects located within or without, or both within and without, the
boundaries of the county imposing the tax and which may include:
(i) highways, roads, streets, bridges, and other
transportation-related projects facilities including, but not limited to,
drainage facilities relating to the highways, roads, streets, bridges, and
other transportation-related projects;
(ii) jointly-operated projects, of the type specified in
sub-subitem (i), of the county and South Carolina Department of
Transportation; or
(iii) projects, of the type specified in sub-subitem (i), operated
by the county or jointly-operated projects of the county and other
governmental entities;
(b) the maximum time, stated in calendar years or calendar
quarters, or a combination of them, not to exceed twenty-five years or the
length of payment for each project whichever is shorter in length, for
which the tax may be imposed;
(c) the estimated capital cost of the project or projects to be
funded in whole or in part from proceeds of the tax and the principal
amount of bonds to be supported by the tax; and
(d) the anticipated year the tax will end .
(2) Upon receipt of the ordinance, the county election commission
shall conduct a referendum on the question of imposing the optional
special sales and use tax in the jurisdiction. If the ordinance is received
prior to January 1, 1998, a referendum for this purpose may be held on the
Tuesday following the first Monday in November; however, if the
ordinance is received on January 1, 1998, or thereafter, a referendum for
this purpose must be held at the time of the general election. The
commission shall publish the date and purpose of the referendum once a
week for four consecutive weeks immediately preceding the date of the
referendum in a newspaper of general circulation in the jurisdiction. A
public hearing must be conducted at least fourteen days before the
referendum after publication of a notice setting forth the date, time, and
location of the public hearing. The notice must be published in a
newspaper of general circulation in the county at least fourteen days
before the date fixed for the public hearing.
(3) A separate question must be included on the referendum ballot
for each purpose and the question must read substantially as follows:
'I approve a special one percent sales and use tax to be imposed in
(county) for not more than (time) to fund the following project or
projects:
Project (1) for _______ $ _________
Yes
No
Project (2), etc.'
In addition, the referendum shall contain a question on the
authorization of general obligation bonds under the exemption provided
in Section 14(6), Article X of the Constitution of South Carolina, 1895,
so that revenues derived from the imposition of the optional sales and use
tax may be pledged to the repayment of the bonds. The additional
question must read substantially as follows:
'I approve the issuance of not exceeding $_____ of general
obligation bonds of _____ County, maturing over a period not to exceed
___ years to fund the _____ project or projects.
Yes
No '
If the referendum on the question relating to the issuance of
general obligation bonds is approved, the county may issue bonds in an
amount sufficient to fund the expenses of the project or projects.
(4) All qualified electors desiring to vote in favor of imposing the
tax for a particular purpose shall vote 'yes' and all qualified electors
opposed to levying the tax for a particular purpose shall vote 'no'. If a
majority of the votes cast are in favor of imposing the tax for one or more
of the specified purposes, then the tax is imposed as provided in this
section; otherwise, the tax is not imposed. The election commission shall
conduct the referendum under the election laws of this State, mutatis
mutandis, and shall certify the result no later than sixty days after the date
of the referendum to the appropriate governing body and to the
Department of Revenue. Included in the certification must be the
maximum cost of the project or projects or facilities to be funded in whole
or in part from proceeds of the tax, the maximum time specified for the
imposition of the tax, and the principal amount of bonds to be supported
by the tax receiving a favorable vote. Expenses of the referendum must
be paid by the jurisdiction conducting the referendum. If the tax is
approved in the referendum, the tax is imposed effective the first day of
the month occurring one hundred eighty days after the date of the
referendum. If the certification is not timely made to the Department of
Revenue, the imposition is postponed for twelve months.
(5) The tax terminates on the earlier of:
(a) the final day of the maximum time specified for the
imposition; or
(b) the end of the calendar month during which the Department
of Revenue determines that the tax has raised revenues sufficient to
provide the greater of either the cost of the project or projects as approved
in the referendum or the cost to amortize all debts related to the approved
projects.
(6) When the optional sales and use tax is imposed, the governing
body of the jurisdiction authorizing the referendum for the tax shall by
definition include more than one item as defined in (a)(i) and (a)(ii) to
describe the single project or multiple projects for which the proceeds of
the tax are to be used.
(7) Amounts collected in excess of the required proceeds must first
be applied, if necessary, to complete each project for which the tax was
imposed. Any additional revenue collected above the specified amount
must be applied to the reduction of debt principal of the imposing political
subdivision on transportation infrastructure debts only.
(8) The tax levied pursuant to this section must be administered and
collected by the Department of Revenue in the same manner that other
sales and use taxes are collected. The department may prescribe the
amounts which may be added to the sales price because of the tax.
(9) The tax authorized by this section is in addition to all other local
sales and use taxes and applies to the gross proceeds of sales in the
applicable jurisdiction which are subject to the tax imposed by Chapter 36
of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The
gross proceeds of the sale of items subject to a maximum tax in Chapter
36 of Title 12 are exempt from the tax imposed by this section. The gross
proceeds of the sale of food lawfully purchased with United States
Department of Agriculture food stamps are exempt from the tax imposed
by this section. The tax imposed by this section also applies to tangible
personal property subject to the use tax in Article 13, Chapter 36 of Title
12.
(10) Taxpayers required to remit taxes under Article 13, Chapter 36
of Title 12 must identify the county in which the tangible personal
property purchase at retail is stored, used, or consumed in this State.
(11) Utilities are required to report sales in the county in which
consumption of the tangible personal property occurs.
(12) A taxpayer subject to the tax imposed by Section 12-36-920,
who owns or manages rental units in more than one county shall
separately report in his sales tax return the total gross proceeds from
business done in each county.
(13) The gross proceeds of sales of tangible personal property
delivered after the imposition date of the tax levied under this section in
a county, either under the terms of a construction contract executed before
the imposition date, or a written bid submitted before the imposition date,
culminating in a construction contract entered into before or after the
imposition date, are exempt from the special local sales and use tax
provided in this section if a verified copy of the contract is filed with the
Department of Revenue within six months after the imposition of the
special local sales and use tax.
(14) Notwithstanding the imposition date of the special local sales
and use tax authorized pursuant to this section, with respect to services
that are regularly billed on a monthly basis, the special local sales and use
tax is imposed beginning on the first day of the billing period beginning
on or after the imposition date.
(15) The revenues of the tax collected in each county under this
section must be remitted to the State Treasurer and credited to a fund
separate and distinct from the general fund of the State. After deducting
the amount of refunds made and costs to the Department of Revenue of
administering the tax, not to exceed one percent of the revenues, the State
Treasurer shall distribute the revenues and all interest earned on the
revenues while on deposit with the State Treasurer quarterly to the county
in which the tax is imposed and these revenues and interest earnings must
be used only for the purpose stated in the imposition ordinance. The State
Treasurer may correct misallocation costs or refunds by adjusting
subsequent distributions, but these adjustments must be made in the same
fiscal year as the misallocation.
(16) The Department of Revenue shall furnish data to the State
Treasurer and to the counties receiving revenues for the purpose of
calculating distributions and estimating revenues. The information which
must be supplied to counties upon request includes, but is not limited to,
gross receipts, net taxable sales, and tax liability by taxpayers.
Information about a specific taxpayer is considered confidential and is
governed by the provisions of Section 12-54-240. A person violating this
section is subject to the penalties provided in Section 12-54-240.
(17) The Department of Revenue may promulgate regulations
necessary to implement this section."
Powers, board of authority
SECTION 2. Section 4-37-20 of the 1976 Code, as added by Act 52
of 1995, is amended to read:
"Section 4-37-20. The board of the authority has all the rights and
powers of a public body, politic and corporate of this State, including,
without limitation, all the rights and powers necessary or convenient to
manage the business and affairs of the authority and to take action as it
may consider advisable, necessary, or convenient in carrying out its
powers including, but not limited to, the following rights and powers:
(1) to have perpetual succession;
(2) to sue and be sued;
(3) to adopt, use, and alter a seal;
(4) to make and amend bylaws for regulation of its affairs
consistent with the provisions of this chapter;
(5) to acquire by gift, deed or easement, purchase, hold, use,
improve, lease, mortgage, pledge, sell, transfer, and dispose of any
property, real, personal, or mixed, or any interest in any property, or
revenues of the authority as security for notes, bonds, evidences of
indebtedness, or other obligations of the authority;
(6) to borrow money, make and issue notes, bonds, and other
evidences of indebtedness; to secure the payment of the obligations or any
part by mortgage, lien, pledge, or deed of trust, on any of its property,
contracts, franchises, or revenues;
(7) to make contracts, including service contracts with a person,
corporation, or partnership including, without limitation, the South
Carolina Department of Transportation, to provide the facilities and
services provided herein; and
(8) execute all instruments necessary or convenient for the carrying
out of business.
The board of the authority is not authorized to exercise the powers of
eminent domain; however, it may recommend to the county governing
body that property be acquired through eminent domain. The county
governing body must determine if the property is to be acquired through
eminent domain and, if so, to commence the eminent domain
proceedings."
Time effective
SECTION 3. This act takes effect upon approval by the Governor.
Approved the 13th day of June, 1997. |