H*4522 Session 108 (1989-1990)
H*4522(Rat #0744, Act #0603 of 1990) General Bill, By D.C. Waldrop
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
4-9-155 so as to require the annual audit of the offices of the county
assessor, auditor, treasurer, and tax collector to be conducted in accordance
with standards set by the Comptroller General of the United States, to provide
that the Tax Commission's manual and guide must set out the items to be
audited, to require copies of the audit to be provided to the Tax Commission
and the Comptroller General, and to provide monetary penalties for violations;
to amend Section 12-43-220, as amended, relating to classification of property
and assessment ratios for purposes of property taxes, so as to provide that
the Tax Commission shall apply an equalization factor to real and personal
property owned by or leased to transportation companies for hire as mandated
by federal legislation; to amend Section 12-3-80, relating to the office of
Chairman of the Tax Commission, so as to provide that he shall devote the time
require to perform the duties of his office rather than his entire time and to
delete the requirement that he may not hold any other office of honor or
profit; to amend Section 12-3-145, as amended, relating to the procedures for
obtaining property tax exemption, so as to authorize the Tax Commission to
declare the real and personal property of a qualifying organization as exempt
and certify the exemption to the county auditor; to amend Section 12-3-140, as
amended, relating to the powers of the Tax Commission, so as to provide that
in the case of business property assessed by the Commission, the assessment
applies only to property used in the conduct of the business; and to amend
Sections 6-21-240, 6-21-430, and 6-21-440, relating to the Revenue Bond Act
for Utilities, so as to authorize the governing body to pledge either gross or
net revenues for bond redemption, and to provide for the priority of
application of revenues.-amended title
01/30/90 House Introduced and read first time HJ-17
01/30/90 House Referred to Committee on Ways and Means HJ-17
04/05/90 House Committee report: Favorable with amendment Ways
and Means HJ-6
04/17/90 House Amended HJ-17
04/17/90 House Debate adjourned until Wednesday, April 18, 1990 HJ-17
04/18/90 House Amended HJ-19
04/18/90 House Read second time HJ-19
04/19/90 House Read third time and sent to Senate HJ-5
04/24/90 Senate Introduced and read first time SJ-9
04/24/90 Senate Referred to Committee on Finance SJ-9
05/31/90 Senate Recalled from Committee on Finance SJ-23
06/04/90 Senate Amended SJ-13
06/04/90 Senate Read second time SJ-15
06/04/90 Senate Unanimous consent for third reading on next
legislative day SJ-15
06/05/90 Senate Read third time and returned to House with
amendments SJ-19
06/06/90 House Senate amendment amended HJ-81
06/06/90 House Returned to Senate with amendments HJ-82
06/07/90 Senate House amendment amended SJ-34
06/07/90 Senate Returned to House with amendments SJ-38
06/07/90 House Non-concurrence in Senate amendment HJ-34
06/07/90 Senate Senate insists upon amendment and conference
committee appointed Sens. Pope, Waddell,
Matthews SJ-38
06/07/90 House Conference committee appointed McLellan, Waldrop
& Kirsh HJ-46
06/07/90 House Conference report received and adopted HJ-54
06/07/90 Senate Conference report received and adopted SJ-68
06/07/90 House Ordered enrolled for ratification HJ-65
06/19/90 Ratified R 744
06/25/90 Signed By Governor
06/25/90 Effective date 07/01/91
06/25/90 Act No. 603
07/16/90 Copies available
(A603, R744, H4522)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING
SECTION 4-9-155 SO AS TO REQUIRE THE ANNUAL AUDIT OF THE OFFICES OF
THE COUNTY ASSESSOR, AUDITOR, TREASURER, AND TAX COLLECTOR TO BE
CONDUCTED IN ACCORDANCE WITH STANDARDS SET BY THE COMPTROLLER GENERAL
OF THE UNITED STATES, TO PROVIDE THAT THE TAX COMMISSION'S MANUAL AND
GUIDE MUST SET OUT THE ITEMS TO BE AUDITED, TO REQUIRE COPIES OF THE
AUDIT TO BE PROVIDED TO THE TAX COMMISSION AND THE COMPTROLLER
GENERAL, AND TO PROVIDE MONETARY PENALTIES FOR VIOLATIONS; TO AMEND
SECTION 12-43-220, AS AMENDED, RELATING TO CLASSIFICATION OF PROPERTY
AND ASSESSMENT RATIOS FOR PURPOSES OF PROPERTY TAXES, SO AS TO PROVIDE
THAT THE TAX COMMISSION SHALL APPLY AN EQUALIZATION FACTOR TO REAL AND
PERSONAL PROPERTY OWNED BY OR LEASED TO TRANSPORTATION COMPANIES FOR
HIRE AS MANDATED BY FEDERAL LEGISLATION; TO AMEND SECTION 12-3-80,
RELATING TO THE OFFICE OF CHAIRMAN OF THE TAX COMMISSION, SO AS TO
PROVIDE THAT HE SHALL DEVOTE THE TIME REQUIRED TO PERFORM THE DUTIES
OF HIS OFFICE RATHER THAN HIS ENTIRE TIME AND TO DELETE THE
REQUIREMENT THAT HE MAY NOT HOLD ANY OTHER OFFICE OF HONOR OR PROFIT;
TO AMEND SECTION 12-3-145, AS AMENDED, RELATING TO THE PROCEDURES FOR
OBTAINING PROPERTY TAX EXEMPTION, SO AS TO AUTHORIZE THE TAX
COMMISSION TO DECLARE THE REAL AND PERSONAL PROPERTY OF A QUALIFYING
ORGANIZATION AS EXEMPT AND CERTIFY THE EXEMPTION TO THE COUNTY
AUDITOR; TO AMEND SECTION 12-3-140, AS AMENDED, RELATING TO THE POWERS
OF THE TAX COMMISSION, SO AS TO PROVIDE THAT IN THE CASE OF BUSINESS
PROPERTY ASSESSED BY THE COMMISSION, THE ASSESSMENT APPLIES ONLY TO
PROPERTY USED IN THE CONDUCT OF THE BUSINESS; AND TO AMEND SECTIONS
6-21-240, 6-21-430, AND 6-21-440, RELATING TO THE REVENUE BOND ACT FOR
UTILITIES, SO AS TO AUTHORIZE THE GOVERNING BODY TO PLEDGE EITHER
GROSS OR NET REVENUES FOR BOND REDEMPTION, AND TO PROVIDE FOR THE
PRIORITY OF APPLICATION OF REVENUES.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. The General Assembly finds that there is a lack of
uniformity in the annual audits of the offices of the county assessor,
auditor, treasurer, and tax collector and that on occasion important
facts are overlooked or not considered. The purpose of this act is to
establish the minimum standard of accounting to be followed so as to
increase the accuracy of the audits of these offices.
Audit standards
SECTION 2. The 1976 Code is amended by adding:
"Section 4-9-155. (A) The annual audit of the offices
of the county assessor, auditor, treasurer, and tax collector must be
conducted in accordance with the standards set forth by the
Comptroller General of the United States as published in a volume
entitled Government Auditing Standards and the manual and guide
prescribed by the South Carolina Tax Commission. The Tax Commission's
manual and guide must set forth necessary items, entries,
transactions, and other data for the accountant to closely examine in
the audit of the offices of the county assessor, county auditor,
county treasurer, and county tax collector. A copy of the audit of
each of these offices must be provided by the accountant to the Tax
Commission and Comptroller General of this State.
(B) Any county in which the governing body fails to require the
annual audit to be conducted as required in this section is subject to
the penalty provisions of Section 12-43-260, and the Tax Commission
upon determining that this failure occurred shall take the actions
provided in Section 12-43-260 to impose the penalties provided
therein."
Equalization factor
SECTION 3. (A) Section 12-43-220(g) is amended by adding at the
end:
"The commission shall apply an equalization factor to real and
personal property owned by or leased to transportation companies for
hire as mandated by federal legislation."
(B) Notwithstanding any other provision of this act, this
section applies with respect to taxable years beginning after 1989.
Tax Commission chairman
SECTION 4. (A) Section 12-3-80 of the 1976 Code is amended to
read:
"Section 12-3-80. The chairman of the commission shall
devote the time required to perform the duties of the office and may
not:
(a) engage in any occupation or business interfering with
or inconsistent with his duty;
(b) serve on or under any committee of a political party;
or
(c) contribute, directly or indirectly, money or other
thing of value in support of any candidate for office or to any
political organization."
(B) Notwithstanding any other provision of this act, this
section takes effect upon approval by the Governor.
Method of certifying tax exemption
SECTION 5. (A) The last paragraph of Section 12-3-145 B of the
1976 Code, as last amended by Act 78 of 1989, is further amended to
read:
"The commission, upon receipt of an application and upon
proper investigation, may declare the real and personal property of
any organization qualifying for an exemption from ad valorem taxation
identified in this chapter as exempt and shall certify the exemption
to the auditor's office in the county in which the property is
located. Upon certification by the commission, the auditor shall void
any tax notice applicable to the property."
(B) Notwithstanding any other provision of this act, this section is
effective upon approval by the Governor.
Property taxes assessed by Tax Commission, limited to property used in
business
SECTION 6. (A) Section 12-3-140(17) of the 1976 Code, as last
amended by Act 78 of 1989, is further amended to read:
"(17) Has the sole responsibility for the assessment,
appraisal, and equalization of taxable values upon the property used
in the conduct of their business of the following: franchises of
street railway companies, mines, electric railways, telephone
companies, water, heat, light and power companies, private car lines,
pipeline companies, sewer companies, and airlines and must assess,
appraise, and equalize all real and tangible personal property of
manufacturers, headquarters, corporate office facilities, distribution
facilities, and all additions to establishments. The commission must
also assess to the owner all real or personal property leased to or
used by the above-mentioned companies using the unit valuation method
or other accepted or recognized methods. When the total value of the
utility is estimated and the value apportioned to this State, then the
value will be distributed to the taxing jurisdiction in each county
where the utility has property on a basis of investment in each
jurisdiction. It is the responsibility of each county assessor to
determine what portion of the total value in each district is to be
assessed as real property. The owner of property leased to or used by
the above-mentioned companies must make returns to the commission on
forms prescribed by the commission. The Tax Commission shall appraise
and assess property leased to any taxpayer under its jurisdiction in
the name of the lessee when the unit method of valuation is used or
when the taxpayer is an airline or private car line if the property is
under the control of the taxpayer and the taxpayer is required to pay
the tax."
(B) Notwithstanding any other provision of this act, this section is
effective for taxable years beginning after 1989.
Revenue bonds, net proceeds pledged
SECTION 7. Section 6-21-240 of the 1976 Code is amended to read:
"Section 6-21-240. Any city combining its airport with
any harbor improvement plan into a single system as provided in
Section 6-21-40 may secure such bonds as may be issued therefor by
pledges of the revenues from such combined system, and it may
additionally secure such bonds by pledges of any of the revenues that
might from time to time become receivable by said city from any other
source or sources except the proceeds of ad valorem taxes. Bonds
issued pursuant to this chapter for such purposes may, in the
discretion of the governing body of said city, be primarily secured by
a pledge of the revenues from such system as provided by Section
6-21-440."
Revenue bonds, custodianship
SECTION 8. Section 6-21-430 of the 1976 Code is amended to read:
"Section 6-21-430. The governing body of the borrower
shall designate as custodian of the bond and interest redemption fund
established pursuant to Section 6-21-440 a bank, depository, or trust
company duly qualified and doing business within the State which shall
be satisfactory to the governing body of such borrower. The bank,
depository, or trust company shall signify its acceptance of such
custodianship by a written instrument directed to the governing body
of the borrower. Such fund from time to time held by such bank,
depository, or trust company shall be impressed with a trust for the
benefit of the persons entitled thereto."
Revenue bonds, net proceeds, pledge
SECTION 9. Section 6-21-440 of the 1976 Code is amended to read:
"Section 6-21-440. In the authorizing ordinance the
governing body of the borrower shall set aside monthly (or more often
if deemed advisable) and shall pledge either the gross revenues or net
revenues of the system, project, or combined system, as the governing
body of the borrower may determine, into separate and special funds as
follows: Out of the revenues there shall be set aside a sum
sufficient to pay the principal of and the interest upon the bonds as
and when they become due and payable. If the revenues of any
calendar, operating, or fiscal year shall be insufficient to pay the
principal of and interest on the bonds maturing in any such calendar,
operating, or fiscal year, an additional amount sufficient to pay the
principal of and interest on such bonds outstanding and unpaid shall
be set aside out of the revenues of the next succeeding calendar,
operating, or fiscal year and applied to the payment of the principal
of and interest on such outstanding and unpaid bonds. This fund shall
be designated the 'bond and interest redemption fund'. Out of the
revenues there also shall be set aside a sum sufficient to provide for
the payment of all expenses of administration and operation and such
expenses for maintenance as may be necessary to preserve the system,
project or combined system in good repair and working order. This
fund shall be designated the 'operation and maintenance fund'. If the
pledge made is of gross revenues, the order of the foregoing set
asides shall be first to the bond and interest redemption fund and
next to the operation and maintenance fund; if the pledge is of net
revenues, the order of the foregoing set asides shall be first to the
operation and maintenance fund and next to the bond and interest
redemption fund. Out of the remaining revenues there shall be next
set aside a sum sufficient to build up a reserve for depreciation of
the existing system or combined system. This fund shall be designated
the 'depreciation fund'. Out of the remaining revenues there shall be
next set aside a sum sufficient to build up a reserve for
improvements, betterments, and extensions to the existing system,
project, or combined system, other than those necessary to maintain it
in good repair and working order as herein provided. This fund shall
be designated the 'contingent fund'. Any surplus revenues thereafter
remaining shall be disposed of by the governing body of the borrower
as it may determine from time to time to be for the best interest of
the borrower.
In the event the proceedings for the issuance of bonds provide
for their repayment in whole or in part from front-foot assessments,
the borrower need not make the payments provided for in this section
for application for the payment of principal and interest on a monthly
basis but may make them at least annually, provided that the payments
shall be in such amounts and at such times that sufficient funds will
be available to pay the principal and interest upon the bonds as and
when they become due and payable."
Time effective
SECTION 10 . This act takes effect July 1, 1991.
Approved the 25th day of June, 1990.
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