H 4852 Session 112 (1997-1998)
H 4852 General Bill, By Boan
A BILL TO AMEND SECTION 4-10-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO DISTRIBUTION OF LOCAL SALES AND USE TAX REVENUES, SO AS TO
ALLOW LOCAL OPTION SALES TAX CREDIT AGAINST LIABILITY TO PAY FEES IN LIEU OF
PROPERTY TAXES; TO AMEND SECTION 4-10-90, AS AMENDED, RELATING TO
ADMINISTRATION AND COLLECTION OF LOCAL SALES AND USE TAXES BY THE DEPARTMENT
OF REVENUE, SO AS TO PROVIDE THAT ALLOCATIONS MADE BY ERROR IN THE CITY OR
COUNTY CODE BE CORRECTED PROSPECTIVELY; AND TO AMEND SECTION 4-12-20, RELATING
TO THE LEASE AGREEMENTS BETWEEN LOCAL POLITICAL UNITS AND ANOTHER PARTY AND
PROVISION FOR FEES IN LIEU OF TAXES, SO AS TO INCLUDE COUNTIES,
MUNICIPALITIES, SCHOOL DISTRICTS, WATER AND SEWER AUTHORITIES AND OTHER
POLITICAL SUBDIVISIONS AS LESSORS FOR PURPOSES OF FEE IN LIEU OF TAX
PROVISIONS.
03/19/98 House Introduced and read first time HJ-59
03/19/98 House Referred to Committee on Ways and Means HJ-60
A BILL
TO AMEND SECTION 4-10-40, AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO DISTRIBUTION
OF LOCAL SALES AND USE TAX REVENUES, SO AS TO
ALLOW LOCAL OPTION SALES TAX CREDIT AGAINST
LIABILITY TO PAY FEES IN LIEU OF PROPERTY TAXES; TO
AMEND SECTION 4-10-90, AS AMENDED, RELATING TO
ADMINISTRATION AND COLLECTION OF LOCAL SALES
AND USE TAX BY THE DEPARTMENT OF REVENUE, SO AS
TO PROVIDE THAT ALLOCATIONS MADE BY ERROR IN THE
CITY OR COUNTY CODE BE CORRECTED PROSPECTIVELY;
AND TO AMEND SECTION 4-12-20, RELATING TO LEASE
AGREEMENTS BETWEEN LOCAL POLITICAL UNITS AND
ANOTHER PARTY AND PROVISION FOR FEES IN LIEU OF
TAXES, SO AS TO INCLUDE COUNTIES, MUNICIPALITIES,
SCHOOL DISTRICTS, WATER AND SEWER AUTHORITIES
AND OTHER POLITICAL SUBDIVISIONS AS LESSORS FOR
PURPOSES OF FEE IN LIEU OF TAX PROVISIONS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. It is the General Assembly's intent that a resident, a
merchant, or an industry be allowed the local option sales tax credit
against property taxes even though they are paying an amount
equivalent to property taxes, instead of property taxes, because they
are located in a multicounty business or industrial park, or even
though they are paying a fee instead of property taxes under Section
4-29-60 or Section 4-12-20.
The General Assembly also intends to allow the local option sales
tax credit against property taxes to businesses that have negotiated a
fee in lieu of property taxes under Section 4-29-67, Section 4-12-30,
or Chapter 44 of Title 12, except that the credit is reduced to reflect
the fees in lieu of taxes they must pay rather than the fair market
value of their property.
SECTION 2. Section 4-10-40(B) of the 1976 Code, as last
amended by Act 109 of 1991, is further amended to read:
"(B)(1) All of the revenue received by a county and
municipality from the Property Tax Credit Fund must be used to
provide a credit against the property tax liability of taxpayers in the
county and municipality 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
county or municipality from the Property Tax Credit Fund during the
applicable fiscal year of the political subdivision and the denominator
is the total of the appraised value of taxable property in the county or
municipality as of January first 1 of the applicable
taxable year.
(2) For purposes of this chapter:
(a) property tax liability includes liability to pay fees in lieu
of property taxes;
(b) taxable property includes exempt property for which the
owner must pay fees in lieu of property taxes; and
(c) for businesses that have negotiated a fee in lieu of
property taxes, the appraised value of the taxpayer's taxable property
is equal to the value of the property for fee purposes multiplied by a
fraction, the numerator of which is the assessment ratio negotiated by
the business and the denominator of which is the assessment ratio it
would have been if no fee had been negotiated."
SECTION 3. Section 4-10-90(C) of the 1976 Code, as last
amended by Act 181 of 1993, is further amended to read:
"(C) The Department of Revenue 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 may be
supplied to counties and municipalities includes, but is not limited to,
gross receipts, net taxable sales, and tax liability by taxpayers.
Information by taxpayer received by appropriate county or municipal
officials 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. The State Treasurer may
correct misallocations from the Property Tax Credit Fund and
County/Municipal Revenue Fund by adjusting subsequent
allocations, but these adjustments may be made only in allocations
made in the same fiscal year as the misallocation. However,
allocations made as a result of city or county code errors must be
corrected prospectively."
SECTION 4. Section 4-12-20 of the 1976 Code, as added by Act
125 of 1995, is amended to read:
"Section 4-12-20. Every agreement between a
county, council or county councils municipality,
school district, water and sewer authority, or other political
subdivision and another party in the form of a lease must contain
a provision requiring the industry other party to
make payments to the county or counties, municipality or
municipalities, school district or school districts,
water and sewer authority, and other political units
subdivisions in which the project is located in lieu of taxes,
in the amounts that would result from taxes levied on the project by
the a county or counties, municipality or
municipalities, school district or school districts,
water and sewer authority, and other other
political unit or units subdivisions, if the project
were owned by the industry other party, but with
appropriate reductions similar to the tax exemptions, if any, which
would be afforded to the industry other party if it
were owner of the project."
SECTION 5. Section 4 of this act takes effect for leases entered
into after the approval by the Governor. The remaining sections of
this act are effective for property tax years beginning after December
31, 1998.
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