S*1347 Session 110 (1993-1994)
S*1347(Rat #0434, Act #0588) General Bill, By Peeler
Similar(H 5089)
A Bill to enact the Cherokee County School District 1 School Bond-Property Tax
Relief Act.
04/13/94 Senate Intd. & placed on local & uncontested cal. w/o
reference SJ-13
04/19/94 Senate Read second time SJ-34
04/26/94 Senate Amended SJ-47
04/26/94 Senate Read third time and sent to House SJ-48
04/27/94 House Introduced, read first time, placed on calendar
without reference HJ-9
04/28/94 House Read second time HJ-311
04/28/94 House Unanimous consent for third reading on next
legislative day HJ-311
04/29/94 House Read third time and enrolled
05/04/94 Ratified R 434
05/10/94 Vetoed by Governor
05/11/94 Senate Veto overridden by originating body Yeas-046 SJ-2
05/11/94 House Veto overridden Yeas-003 HJ-67
05/11/94 Effective date 05/11/94
05/27/94 Copies available
(A588, R434, S1347)
AN ACT TO ENACT THE CHEROKEE COUNTY SCHOOL
DISTRICT 1 SCHOOL BOND-PROPERTY TAX RELIEF ACT.
Be it enacted by the General Assembly of the State of South Carolina:
Citation of act
SECTION 1. This act may be cited as the Cherokee County School
District 1 School Bond-Property Tax Relief Act.
Tax may be levied
SECTION 2. Subject to the requirements of this act, the governing body
of Cherokee County School District 1 may by resolution impose a one
percent sales and use tax within Cherokee County for a specific purpose
and for a specified period of time to collect funds to be used to pay debt
service on general obligation bonds issued pursuant to Article 1 of Chapter
71, Title 59 of the 1976 Code (School Bond Act).
Resolution
SECTION 3. (A)(1) The governing body of Cherokee County School
District 1 may vote to impose the tax authorized by this act, subject to a
referendum, by enacting a resolution. The resolution must specify:
(a) the improvements to be financed through the issuance of general
obligation bonds of the school district together with the imposition of the
tax;
(b) the maximum time, stated in calendar years or calendar quarters,
or a combination of them, not to exceed twenty years, for which the tax
may be imposed; and
(c) the maximum principal amount of general obligation bonds to be
issued and repaid with proceeds of the tax.
(2) The findings provided in item (1) may be incorporated within a
resolution of the governing body of Cherokee County School District 1
calling for a referendum upon the question of the issuance of general
obligation bonds pursuant to Article 1 of Chapter 71, Title 59 of the 1976
Code, if the proposed tax will be applied to payment of debt service upon
the bonds.
(B) Upon receipt of the resolution, the Cherokee County Election
Commission shall conduct a referendum on the question of imposing the
optional special sales and use tax in the county. Notice of the election must
be provided in the manner provided by the general election law and include
the question to be voted upon in the referendum. In addition, if the
question of the issuance of general obligation bonds is to also be voted
upon in the referendum, publication of notice of the referendum must also
be given in compliance with Article 1 of Chapter 71, Title 59 of the 1976
Code. Expenses of the referendum must be paid by the school district.
(C) The question to be voted upon in the referendum shall read
substantially as follows:
"Must a special one percent sales and use tax be imposed in
Cherokee County for not more than twenty years in order to raise funds
which will be applied to pay debt service on general obligation bonds
issued to defray the cost of (identify improvements) for Cherokee County
School District 1?
Yes[]
No[]
The ballot may, in the discretion of the governing body of the school
district, contain a short explanation of the question to be voted upon in this
referendum.
(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 the particular purpose shall vote
"no". Upon receipt of the returns of the referendum, the
election commission shall, by resolution, declare the results of it and shall
file the resolution with the Cherokee County Clerk of Court. The
resolution shall also be filed with the South Carolina Department of
Revenue and Taxation. The results of the referendum, as declared by
resolution of the election commission and as filed with the clerk of court, is
not open to question except by a civil action instituted within twenty days
of the filing of it. If a majority of the votes cast are in favor of imposing
the tax, then the tax is imposed as provided in this act; otherwise the tax is
not imposed. A referendum on imposition of the tax authorized in this act
may not be held more than once in a period of twelve consecutive
months.
Imposition of tax
SECTION 4. (A) If the tax is approved in the referendum, the tax must be
imposed beginning upon the first day of the third full month following the
filing of the declaration of results of the referendum with the Department of
Revenue and Taxation.
(B) The tax terminates:
(1) on the final day of the maximum time specified for the imposition;
or
(2) if earlier, but not if later, upon payment of the final maturing
installments of principal of the bonds to which application of the tax is
authorized, or upon payment of the final maturing installments of principal
of general obligation bonds issued to refund the bonds.
(C) When the optional sales and use tax is imposed for more than one
purpose, the governing body of the school district 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.
Administration and collection of tax
SECTION 5. (A) The tax levied pursuant to this act must be administered
and collected by the Department of Revenue and Taxation 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.
(B) The tax authorized by this act is in addition to all other local sales
and use taxes and applies to the gross proceeds of the sales in the applicable
jurisdiction which are subject to the tax imposed by Chapter 36, Title 12 of
the 1976 Code and the enforcement provisions of Chapter 54, Title 12 of
the 1976 Code. The gross proceeds of the sale of items subject to a
maximum tax in Chapter 36 of Title 12 of the 1976 Code are exempt from
the tax imposed by this act. The gross proceeds of the sale of food which
may lawfully be purchased with United States Department of Agriculture
food stamps are exempt from the tax imposed by this act. The tax imposed
by this act also applies to tangible personal property subject to the use tax
in Article 13, Chapter 36 of Title 12 of the 1976 Code.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36,
Title 12 of the 1976 Code shall identify the county in which the tangible
personal property purchased at retail is stored, used, or consumed in this
State.
(D) Utilities are required to report sales in the county in which
consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920 of the
1976 Code, 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 school district.
(F) The gross proceeds of sales of tangible personal property delivered
after the imposition date of the tax levied under this act in Cherokee
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 and Taxation within six months after the
imposition of the special local sales and use tax.
(G) Notwithstanding the imposition date of the special local sales and
use tax authorized pursuant to this act, 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.
Bonds
SECTION 6. (A) The revenues of the tax collected in the county under
this act 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 and
Taxation of administering the tax, not to exceed one percent of the
revenues, the State Treasurer shall distribute the revenues quarterly to the
county treasurer who holds the debt service funds established for payment
of principal and interest on the bonds to which the tax is applicable. 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.
(B) The Cherokee County Treasurer holding taxes collected pursuant to
this act must certify to the auditor of the county on July fifteenth of each
calendar year as to the amount of taxes held by that county treasurer as of
June thirtieth of the calendar year. The Cherokee County Auditor shall
reduce the next levy of ad valorem property taxes required to pay debt
service on bonds to which the tax is applicable by the amount of tax
revenues certified as collected as of June thirtieth by the county treasurer.
Taxes collected as of June thirtieth of a calendar year in excess of the
amounts required to pay debt service due in the eighteen months following
June thirtieth on bonds to which the tax is applicable must be applied to
reduce the next levy of ad valorem property taxes required for payment of
operational and maintenance expenses of Cherokee County School District
1.
(C) The State Treasurer, in consultation with the Department of
Education, shall determine an average per pupil amount by dividing the
amount of revenues generated in the county by the imposition of the tax
authorized by this act by the total number of students in grades K-12 in
Cherokee County. The State Treasurer shall pay any other school district
located in Cherokee County an amount equal to the average per pupil
amount based on the number of pupils attending schools residing in
Cherokee County to be used exclusively for capital projects.
Calculations and distribution
SECTION 7. The Department of Revenue and Taxation shall furnish data
to the State Treasurer and to the school districts receiving tax revenues
pursuant to this act for the purpose of calculating distributions and
estimating revenues. The information which must be supplied to Cherokee
County School District 1 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 of the 1976 Code. A person violating this
section is subject to the penalties provided in Section 12-54-240 of the
1976 Code.
Time effective
SECTION 8. This act takes effect upon approval by the Governor.
Vetoed by the Governor - 5/10/94
Veto overridden by Senate - 5/11/94
Veto overridden by House - 5/11/94 |