S 53 Session 109 (1991-1992)
S 0053 General Bill, By M.T. Rose
A Bill to amend Title 6, Code of Laws of South Carolina, 1976, relating to
local government, by adding Chapter 12 so as to enact the Optional Special
Sales and Use Tax Act.
09/10/90 Senate Prefiled
09/10/90 Senate Referred to Committee on Finance
01/08/91 Senate Introduced and read first time SJ-39
01/08/91 Senate Referred to Committee on Finance SJ-39
A BILL
TO AMEND TITLE 6, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO LOCAL GOVERNMENT, BY ADDING
CHAPTER 12 SO AS TO ENACT THE OPTIONAL SPECIAL SALES
AND USE TAX ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 6 of the 1976 Code is amended by adding:
"CHAPTER 12
Optional Special Sales and Use Tax Act
Section 6-12-10. This chapter may be cited as the Optional
Special Sales and Use Tax Act.
Section 6-12-20. Subject to the requirements of this chapter, the
governing body of a county or municipality may by ordinance impose
a one percent sales and use tax within its jurisdiction for a specific
purpose and for a specific period of time to collect a limited amount of
money.
Section 6-12-30. (A) When the governing body of a county or
municipality votes to impose the tax authorized by this chapter, it shall
forward a copy of the ordinance to the county election commission. The
ordinance must specify:
(1) The purpose for which the proceeds of the tax is to be
used, which may include projects located within or without, or both
within and without, the boundaries of the county or municipality
imposing the tax and which may include:
(a) highways, roads, streets, and bridges;
(b) county and municipal courthouses, administration
buildings, civic centers, hospitals, jails, correctional institutions,
detention facilities, libraries, coliseums, landfills, or any combination of
these projects;
(c) jointly operated projects of the county and a municipality
or any combination of municipalities;
(d) cultural, recreational, or historic facilities, or any
combination of these facilities;
(e) water, sewer, and water and sewer projects;
(f) retirement of existing general obligation debt of the county
or municipality; and
(g) any combination of the projects described in subitems
(a) through (f) of this item;
(2) The maximum time, stated in calendar years or calendar
quarters, or a combination thereof, not to exceed five years, for which
the tax may be imposed; and
(3) The maximum cost of the project or facilities funded from
proceeds of the tax, which maximum cost must also be the amount of net
proceeds to be raised by the tax.
(B) Upon receipt of the ordinance, the county election commission
or municipal election commission shall conduct a referendum on the
question of implementing the tax. If a general election is to be held in
a period between six weeks and six months after the enactment of the
ordinance, the referendum must be held at the time of the general
election; otherwise, the commission must conduct the referendum within
ninety days of enactment of the ordinance. The commission shall cause
the date and purpose of the referendum to be published once a week for
four consecutive weeks immediately preceding the date of the
referendum, in a newspaper of general circulation in the jurisdiction.
(C) A separate question must be included on the referendum ballot
for each purpose and the question must read substantially as follows:
'Must a special one percent sales and use tax be imposed in
(County or Municipality) for not more than (time)
to raise the amounts specified for the following purposes:
(1) $ for
Yes []
No []
(2) etc.'
(D) 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 chapter; otherwise the tax is not imposed and the question may not
be resubmitted until twelve months immediately following the month the
referendum was held. The election commission shall conduct the
referendum under the election laws of this State, mutatis mutandis, and
shall certify the result to the appropriate governing body and to the
South Carolina Tax Commission. Included in the certification must be
the total of the project costs receiving a favorable vote. Expenses of the
referendum must be paid by the jurisdiction conducting the referendum.
Section 6-12-40. (A) If the tax is approved in the referendum,
the tax is imposed on the first day of the second calendar quarter
following the date of the referendum.
(B) The tax terminates on the earlier of:
(1) the final day of the maximum time specified for the
imposition; or
(2) the end of the calendar quarter during which the South
Carolina Tax Commission determines that the tax has raised revenues
sufficient to provide the county or municipality net proceeds equal to or
greater than the amount specified as the amount to be raised by the tax.
(C) No county or municipality may impose at any time more than
a single one percent tax under this chapter. A referendum may be held
to impose a tax before the expiration of an existing tax, but the
reimposition may not occur before the expiration of the tax then in
effect.
(D) When the optional sales and use tax is imposed for more than
one purpose, the governing body of the jurisdiction authorizing the
referendum for the tax shall determine the priority for the expenditure
of the net proceeds of the tax for the purposes stated in the referendum.
(E) Amounts collected in excess of the required proceeds must
first be applied, if necessary, to complete a project for which the tax was
imposed; otherwise, the excess amounts must be credited to the general
fund of the jurisdiction imposing the tax.
Section 6-12-50. The tax levied pursuant to this chapter must be
collected by the South Carolina Tax Commission in the same manner
that other sales and use taxes are collected. The commission may
prescribe the amounts which may be added to the sales price because of
the tax.
Section 6-12-60. (A) The tax authorized by this chapter 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 35 of Title 12 and the enforcement provision of
Chapter 54 of Title 12. The gross proceeds of the sale of items subject
to a maximum tax in Chapter 35 of Title 12 are exempt from the tax
imposed by this chapter. The tax imposed by this chapter also applies
to tangible personal property subject to the use tax in Section 12-35-810.
(B) Taxpayers required to remit taxes under Section 12-35-810
shall identify the county or municipality, or both, in which the tangible
personal property purchased at retail is stored, used, or consumed in this
State.
(C) Utilities are required to report sales in the county or
municipality, or both, in which consumption of the tangible personal
property occurs.
(D) A taxpayer subject to the tax imposed by Article 6, Chapter 35
of Title 12, who owns or manages rental units in more than one county
or municipality, or both, shall separately report in his sales tax return the
total gross proceeds from business done in each county or municipality.
(E) The gross proceeds of sales of tangible personal property
delivered after the imposition date of the tax levied under this section in
a county or municipality, 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
local sales and use tax provided in this section if a verified copy of the
contract is filed with the South Carolina Tax Commission within six
months after the imposition of the local sales and use tax.
(F) Notwithstanding the date of general imposition of the local
sales and use tax authorized pursuant to this chapter, with respect to
services that are regularly billed on a monthly basis, the local sales and
use tax is imposed beginning on the first day of the billing period
beginning on or after the date of general imposition.
Section 6-12-70. The proceeds of the tax collected in each county
or municipality under this chapter must be disbursed by the State
Treasurer as follows:
(1) one percent must be credited to the general fund of the State
to offset the costs of administration; and
(2) the remainder must be distributed monthly to the governing
body of the county or municipality in which the tax is imposed and used
only for the purposes stated in the original imposition ordinance.
Section 6-12-80. The South Carolina Tax Commission shall
furnish data to the State Treasurer and to the governing bodies of the
counties and municipalities receiving revenues for the purpose of
calculating distributions and estimating revenues. The information
which must be supplied to counties and municipalities 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. If because of refunds by the Tax
Commission or for any other reason, an overpayment is made to a
county or municipality, the State Treasurer shall withhold from
subsequent payments a sufficient amount to adjust for the overpayment
and direct funds to the proper entity.
Section 6-12-90. The South Carolina Tax Commission may
promulgate regulations necessary to implement this chapter."
SECTION 2. This act takes effect upon approval by the Governor.
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