S 0775 General Bill, By Thomas, Bryant, Knotts, Hawkins, Courson, O'Dell and 
McConnell
 A BILL TO LIMIT THE PROPERTY TAX MILLAGE IMPOSED FOR OPERATING PURPOSES BY A
 POLITICAL SUBDIVISION, INCLUDING A SCHOOL DISTRICT, TO A RATE THAT DOES NOT
 EXCEED THE RATE IMPOSED FOR PROPERTY TAX YEAR 2005, TO REQUIRE ANNUAL PROPERTY
 TAX MILLAGE IMPOSED FOR OPERATING PURPOSES TO BE ADJUSTED BY AN AMOUNT
 SUFFICIENT TO LIMIT ANNUAL INCREASES IN PROPERTY TAX REVENUE FOR OPERATING
 PURPOSES, INCLUDING REIMBURSEMENTS, TO NO MORE THAN ONE PERCENT, AND TO AMEND
 THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 IN CHAPTER 36
 OF TITLE 12 SO AS TO IMPOSE AN ADDITIONAL CUMULATIVE STATE SALES, USE, AND
 CASUAL EXCISE TAX EQUAL TO ONE-HALF PERCENT EFFECTIVE JULY 1, 2006, AND JULY
 1, 2008, AND PROVIDE THAT THE REVENUE OF THESE TAXES MUST BE DISTRIBUTED TO
 POLITICAL SUBDIVISIONS OF THIS STATE, INCLUDING SCHOOL DISTRICTS, IN THE
 MANNER THAT THE GENERAL ASSEMBLY PROVIDES IN THE ANNUAL GENERAL APPROPRIATIONS
 ACT.

   04/20/05  Senate Introduced and read first time SJ-3
   04/20/05  Senate Referred to Committee on Finance SJ-3

TO LIMIT THE PROPERTY TAX MILLAGE IMPOSED FOR OPERATING PURPOSES BY A POLITICAL SUBDIVISION, INCLUDING A SCHOOL DISTRICT, TO A RATE THAT DOES NOT EXCEED THE RATE IMPOSED FOR PROPERTY TAX YEAR 2005, TO REQUIRE ANNUAL PROPERTY TAX MILLAGE IMPOSED FOR OPERATING PURPOSES TO BE ADJUSTED BY AN AMOUNT SUFFICIENT TO LIMIT ANNUAL INCREASES IN PROPERTY TAX REVENUE FOR OPERATING PURPOSES, INCLUDING REIMBURSEMENTS, TO NO MORE THAN ONE PERCENT, AND TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 IN CHAPTER 36 OF TITLE 12 SO AS TO IMPOSE AN ADDITIONAL CUMULATIVE STATE SALES, USE, AND CASUAL EXCISE TAX EQUAL TO ONE-HALF PERCENT EFFECTIVE JULY 1, 2006, AND JULY 1, 2008, AND PROVIDE THAT THE REVENUE OF THESE TAXES MUST BE DISTRIBUTED TO POLITICAL SUBDIVISIONS OF THIS STATE, INCLUDING SCHOOL DISTRICTS, IN THE MANNER THAT THE GENERAL ASSEMBLY PROVIDES IN THE ANNUAL GENERAL APPROPRIATIONS ACT.

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

SECTION    1.    (A)    Notwithstanding any other provisions of law, a political subdivision of this State, including a school district, in existence on July 1, 2005, after property tax year 2005 may not increase the property tax millage imposed by or for the political subdivision or school district for operating purposes above the millage rate imposed for such operations for property tax year 2005.

(B)    For property tax years beginning after 2005, the governing body of a political subdivision of this State, including a school district, must adjust the property tax millage it imposes for operating purposes by an amount sufficient to limit the annual increase in property tax revenues to the political subdivision or school district, including reimbursements for property tax not collected, to no more than one percent above the actual dollar amount of such revenue in the preceding property tax year. The base for calculating the one-percent limit allowed by this subsection is property tax year 2005 operating millage revenue plan reimbursements."

SECTION    2.    Chapter 36, Title 12 of the 1976 Code is amended by adding:

Section 12-36-1110.    (A)    Effective July 1, 2006, an additional sales, use, and casual excise tax equal to one-half percent is imposed on amounts taxable pursuant to this chapter, except that this one-half percent tax does not apply to amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients.

(B)    Effective July 1, 2008, and in addition to the tax imposed pursuant to subsection (A) of this section, an additional sales, use, and casual excise tax equal to one-half percent is imposed on amounts taxable pursuant to this chapter, except that this one-half percent tax does not apply to amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients.

(C)    Notwithstanding any other provision of law providing for the use of state sales, use, and casual excise taxes, the revenue of the taxes imposed pursuant to this section must be credited to a fund in the State Treasury separate from the General Fund and all other funds styled the 'Local Government and School District Assistance Fund'. Earnings on this fund must be credited to it and a balance in the fund at the end of a fiscal year carries forward to the fund in the succeeding fiscal year and must be used for the same purposes. Revenues in this fund must be distributed by the State Treasurer monthly to the political subdivisions of this State, including school districts, in the manner, amounts, and for the purposes that the General Assembly provides in the annual general appropriations act."

SECTION    3.    This act takes effect upon approval by the Governor.