H 3872 General Bill, By Stuart
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Chapter 22
 in Title 59, relating to education, by enacting the School Property Tax Relief
 Act by allowing the imposition of a one percent sales and use tax in a county
 by ordinance of the governing body of the county, to provide for the tax
 revenue to be distributed to school districts in the county on a one hundred
 thirty-five day average daily membership basis, to provide a school property
 tax credit on all taxable property in a school district located in the county
 where the tax is imposed, and to provide for the recision of the tax by
 referendum.

   04/07/93  House  Introduced and read first time HJ-11
   04/07/93  House  Referred to Committee on Ways and Means HJ-12

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 22 IN TITLE 59, RELATING TO EDUCATION, BY ENACTING THE SCHOOL PROPERTY TAX RELIEF ACT BY ALLOWING THE IMPOSITION OF A ONE PERCENT SALES AND USE TAX IN A COUNTY BY ORDINANCE OF THE GOVERNING BODY OF THE COUNTY, TO PROVIDE FOR THE TAX REVENUE TO BE DISTRIBUTED TO SCHOOL DISTRICTS IN THE COUNTY ON A ONE HUNDRED THIRTY-FIVE DAY AVERAGE DAILY MEMBERSHIP BASIS, TO PROVIDE A SCHOOL PROPERTY TAX CREDIT ON ALL TAXABLE PROPERTY IN A SCHOOL DISTRICT LOCATED IN THE COUNTY WHERE THE TAX IS IMPOSED, AND TO PROVIDE FOR THE RECISION OF THE TAX BY REFERENDUM.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Title 59 of the 1976 Code is amended by adding:

Section 59-22-10. This chapter may be cited as the School Property Tax Relief Act.

Section 59-22-20. The governing body of a county may by ordinance impose a sales and use tax of one percent on the gross proceeds of sales within the county. The provisions of Chapter 10 of Title 4 with respect to the imposition, rate, exemptions, administration, collection, and enforcement of the tax imposed by Chapter 10 of Title 4 apply in the same manner with respect to the tax imposed pursuant to this chapter. The tax revenues must be distributed and used as provided in this chapter.

(B) A certified copy of the imposition ordinance must be forwarded to the Tax Commission and the tax is imposed effective on July first after the commission's receipt of the certified ordinance. If the ordinance is received by the commission after April thirtieth, the imposition is postponed until the second July first after the commission's receipt of the ordinance.

Section 59-22-30. (A) The tax imposed by this chapter must be rescinded upon a favorable vote in a referendum on the question of rescinding the tax. A recision referendum must be held:

(1) if the governing body of the county so directs by ordinance; or

(2) upon a petition requesting such a referendum filed with the county election commission signed by at least fifteen percent of the qualified electors of the county at the time of the last general election. The petition must be filed with the commission before September first of the general election year.

(B) The county election commission shall conduct the recision referendum at the next general election date.

(C) The ballot question must read substantially as follows:

`Do you favor rescinding the one percent sales and use tax levied in ________ County for school tax relief pursuant to Chapter 22 of Title 59 of the 1976 Code?

(D) The commission shall cause the date and subject of the referendum to be published in a notice in a newspaper of general circulation in the county at least four weeks and two weeks before the referendum date. The notice must be at least five by seven inches. The commission shall conduct the referendum in the county applying the election laws of this state, mutatis mutandis. The commission shall certify the result to the governing body of the county. If the commission certifies a majority `yes' vote in the referendum, it shall forward a copy of the certification to the Tax Commission and the tax is rescinded beginning on the next July first.

(E) If recision is not approved at the referendum, the governing body of the county or petitioners may act to require another recision referendum. However, a recision referendum may be held only on the date of the general election.

Section 59-22-40. (A) After deducting the amount of refunds and the cost to the Tax Commission of administering the tax, not to exceed one-half of one percent, the remaining revenue from the tax must be credited to a separate fund in the State Treasury entitled the ________ County School Property Tax Relief Fund. Earnings on this fund must be credited to it and distributed as tax revenues are distributed.

(B) Revenue in the fund must be distributed quarterly to each school district in the county by means of a formula in which the share of a district is determined by multiplying the total amount of the distribution by a fraction in which the numerator is the district's adjusted one hundred thirty-five-day average daily membership and the denominator is the total adjusted one hundred thirty-five average daily membership of the county's school districts.

(C) Adjusted one hundred thirty-five day average daily membership as used in this section means one hundred thirty-five day average daily membership reduced by the number of students who reside outside the county in which the tax is imposed.

(D) The State Treasurer may correct misallocations from the fund by adjusting subsequent allocations.

(E) The Tax Commission and the State Department of Education shall furnish data to the State Treasurer and to school districts for the purpose of calculating distributions and estimating revenues.

Section 59-22-40. (A) A tax credit is granted against the school tax liability of every ad valorem taxpayer in a county imposing the tax allowed by this chapter in an amount determined by multiplying the appraised value of the taxpayer's taxable property by a fraction in which the numerator is the total estimated revenue received by the school district from the School Property Tax Relief Fund during the applicable fiscal year of the school district and the denominator is the total of the appraised value of taxable property in the school district as of January first of the applicable tax year, not including appraised value attributable to a portion of the district in an adjacent county.

(B) For motor vehicles subject to the payment of property taxes pursuant to Article 21, Chapter 37 of Title 12, the credit provided under this section applies against the tax liability for motor vehicle tax years beginning after December of the year in which the credit is calculated."

SECTION 2. This act takes effect upon approval by the Governor.