S 698 Session 110 (1993-1994)
S 0698 General Bill, By Elliott, Rankin and G. Smith
A Bill to amend the Code of Laws of South Carolina, 1976 by adding Section
12-21-2423 so as to dedicate one-fourth of admissions tax revenues from the
first fifteen years of operation of a major tourism or recreation facility to
the county or municipality in which the facility is located for additional
infrastructure improvements, to dedicate an additional one-fourth of such
admissions taxes for fifteen years to a special tourism infrastructure
development fund which must be used to provide infrastructure development
grants to local units of government within five miles of a major tourism or
recreation facility, to define "major tourism or recreation facility",
"additional infrastructure improvements", and "designated development area",
and to amend Section 41-45-20, as amended, relating to the Coordinating
Council for Economic Development, so as to give the Council authority to
approve local infrastructure grants.
04/15/93 Senate Introduced and read first time SJ-8
04/15/93 Senate Referred to Committee on Finance SJ-8
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING SECTION 12-21-2423 SO AS TO DEDICATE
ONE-FOURTH OF ADMISSIONS TAX REVENUES FROM THE
FIRST FIFTEEN YEARS OF OPERATION OF A MAJOR TOURISM
OR RECREATION FACILITY TO THE COUNTY OR
MUNICIPALITY IN WHICH THE FACILITY IS LOCATED FOR
ADDITIONAL INFRASTRUCTURE IMPROVEMENTS, TO
DEDICATE AN ADDITIONAL ONE-FOURTH OF SUCH
ADMISSIONS TAXES FOR FIFTEEN YEARS TO A SPECIAL
TOURISM INFRASTRUCTURE DEVELOPMENT FUND WHICH
MUST BE USED TO PROVIDE INFRASTRUCTURE
DEVELOPMENT GRANTS TO LOCAL UNITS OF GOVERNMENT
WITHIN FIVE MILES OF A MAJOR TOURISM OR RECREATION
FACILITY, TO DEFINE "MAJOR TOURISM OR
RECREATION FACILITY", "ADDITIONAL
INFRASTRUCTURE IMPROVEMENTS", AND
"DESIGNATED DEVELOPMENT AREA", AND TO
AMEND SECTION 41-45-20, AS AMENDED, RELATING TO THE
COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT,
SO AS TO GIVE THE COUNCIL AUTHORITY TO APPROVE
LOCAL INFRASTRUCTURE GRANTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 17, Chapter 21, Title 12 of the 1976 Code is
amended by adding:
"Section 12-21-2423. (A) As used in this section:
(1) `Major tourism or recreation facility' means an establishment
or designated development area to which an aggregate investment inland
and new capital assets or in refurbishing or expanding an existing
facility of at least twenty million dollars is made within a five-year
period and which is used for a theme park, an amusement park, an
historical, an educational, or a trade museum, a botanical or zoological
garden, a cultural center, a theater, a motion picture production studio,
a convention center, an arena, an auditorium, a golf course, or other
spectator or participatory sports facility nd similar establishments. One
or more such establishments may be included within a predetermined
development area as part of the aggregate investment of at least twenty
million dollars.
Secondary support facilities such as hotels, food, and retail services
located within the development area or immediately adjacent to and
which directly support the primary tourism or recreation facility are
included as part of the aggregate investment of at least twenty million
dollars for the primary tourism or recreation facility. The aggregate
investment totaling at least twenty million dollars may include private
or public sector funds or a combination of private and public sector
funds.
(2) `Additional infrastructure improvement' means a
public-owned road, a right-of-way, a bridge, a parking area, a water or
sewer facility, an electric or a gas facility, a landfill or waste treatment
facility, a telephone or communications system, a hospital or other
medical facility, a transportation facility, or similar infrastructure facility
including, but not limited to, a public-owned tourism or recreation
facility which generated the admissions tax from which funds were paid
to a county, municipality, or special purpose district.
(3) `Designated development area' includes, but is not limited to,
a downtown or waterfront redevelopment area, a local historic district,
redevelopment of a closed military facility, or a newly-designated
economic development site that includes tourism or recreation facilities
as described in this section. This designated development area and its
boundaries must be determined in advance by municipal or county
ordinance, or both.
(B) An amount equal to one-fourth of the license tax on admissions
to a major tourism or recreation facility collected by the South Carolina
Tax Commission beginning when admissions taxes are first paid with
respect to any of the facilities and ending fifteen years thereafter must
be paid to the county or municipality in which the major tourism or
recreation facility is located to be used directly or indirectly for
additional infrastructure improvements. If the facility is located in an
unincorporated area of a county, the payment must be made to the
county governing body and, if located within the corporate limits of a
municipality, the payment must be made to the municipal governing
body. The county or municipal governing body may share funds
received from these payments with another county, special purpose
district, or municipal governing body to provide additional infrastructure
facilities or services in support of the tourism or recreation facility that
generates the admission tax revenues responsible for the payments. An
additional amount equal to one-fourth of the license tax on admissions
to a major tourism or recreation facility collected by the Tax
Commission beginning when admissions taxes are first paid with respect
to any of the facilities and ending fifteen years thereafter must be
transferred to the State Treasurer to be deposited into a special tourism
infrastructure development fund and distributed pursuant to the approval
of the South Carolina Coordinating Council for Economic Development
as provided in this section. Deposits into the fund must be separated
into special accounts based on which facility generated the transfer.
Local units of governments within five miles of a major tourism or
recreation facility may apply to the council for infrastructure
development grants from the special account for which they are eligible.
The amount of the funds received by each of the eligible local
governments must be determined by the council based upon its review
of a grant application submitted by each government. Preference must
be given to applications for projects which directly or indirectly serve
the generating facility or other development occurring as a result of the
generating facility. Grants may run for more than one year and may be
based upon a specified dollar amount or a percentage of the funds
annually deposited into the special account. After approval of a grant
application the council may approve the release of funds to eligible local
governments. Funds must be used directly or indirectly for additional
infrastructure improvements provided in this section. The council shall
adopt guidelines to administer the fund including, but not limited to,
tourism infrastructure development grant application criteria for review
and approval of grant applications. Expenses incurred by the council in
administering the fund may be paid from the fund.
(C) If an existing establishment or designated development area
which includes facilities that generate admissions tax revenues is
expanded with an aggregate investment in new land and new capital
assets of at least twenty million dollars, the amount of admissions tax
revenues to be returned to local governments for a fifteen-year period
under the terms of this section is the amount in excess of the annual
admissions tax revenues previously generated by the establishment or
establishments within the development area. This amount is determined
by using the average of the admissions tax revenues generated during the
two fiscal years preceding the first year of new and expanded land and
capital assets of at least twenty million dollars."
SECTION 2. Section 41-45-20 of the 1976 Code, as last amended by
Act 171 of 1991, is further amended by adding an appropriately lettered
item to read:
"( ) Approval of infrastructure development grants for local
units of government pursuant to Section 12-21-2423."
SECTION 3. This act takes effect July 1, 1993, and applies to any
major tourism or recreation facility as defined in Section 12-21-2423 of
the 1976 Code as added by Section 1 which opens to the general public
on or after January 1, 1993.
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