H 4506 General Bill, By Walker
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Article 11
 in Chapter 36 of Title 12, The South Carolina Sales and Use Tax Act, so as to
 increase the sales, use, and casual excise tax from five to six percent on
 items not subject to a maximum tax and to provide for the use of the revenue;
 to amend the 1976 Code by adding Sections 59-20-35 and 59-67-422 so as to
 provide for annual state appropriations sufficient to increase the EFA
 Foundation Program state share to eighty percent and to pay one hundred
 percent of school district defined minimum plan employer contributions and
 school bus driver salaries and employer contributions; to amend the 1976 Code
 by adding Section 59-73-15 so as to limit increases in school tax millage
 levied for operating purposes to increases in the Consumer Price Index,
 require school districts to report the millage limitation and property taxes
 collected to the Division of Research and Statistical Services, and authorize
 the Division to assist districts with the calculations; to amend Section
 12-37-220, as amended, relating to property tax exemptions, so as to exempt
 owner-occupied residential real property from all school taxes except school
 taxes levied for bonded indebtedness purposes and to provide that this
 exemption may not be amended or repealed except by a special vote of the
 General Assembly and to define "special vote".

   01/13/94  House  Introduced and read first time HJ-272
   01/13/94  House  Referred to Committee on Ways and Means HJ-273

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 IN CHAPTER 36 OF TITLE 12, THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO INCREASE THE SALES, USE, AND CASUAL EXCISE TAX FROM FIVE TO SIX PERCENT ON ITEMS NOT SUBJECT TO A MAXIMUM TAX AND TO PROVIDE FOR THE USE OF THE REVENUE; TO AMEND THE 1976 CODE BY ADDING SECTIONS 59-20-35 AND 59-67-422 SO AS TO PROVIDE FOR ANNUAL STATE APPROPRIATIONS SUFFICIENT TO INCREASE THE EFA FOUNDATION PROGRAM STATE SHARE TO EIGHTY PERCENT AND TO PAY ONE HUNDRED PERCENT OF SCHOOL DISTRICT DEFINED MINIMUM PLAN EMPLOYER CONTRIBUTIONS AND SCHOOL BUS DRIVER SALARIES AND EMPLOYER CONTRIBUTIONS; TO AMEND THE 1976 CODE BY ADDING SECTION 59-73-15 SO AS TO LIMIT INCREASES IN SCHOOL TAX MILLAGE LEVIED FOR OPERATING PURPOSES TO INCREASES IN THE CONSUMER PRICE INDEX, REQUIRE SCHOOL DISTRICTS TO REPORT THE MILLAGE LIMITATION AND PROPERTY TAXES COLLECTED TO THE DIVISION OF RESEARCH AND STATISTICAL SERVICES, AND AUTHORIZE THE DIVISION TO ASSIST DISTRICTS WITH THE CALCULATIONS; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT OWNER-OCCUPIED RESIDENTIAL REAL PROPERTY FROM ALL SCHOOL TAXES EXCEPT SCHOOL TAXES LEVIED FOR BONDED INDEBTEDNESS PURPOSES AND TO PROVIDE THAT THIS EXEMPTION MAY NOT BE AMENDED OR REPEALED EXCEPT BY A SPECIAL VOTE OF THE GENERAL ASSEMBLY AND TO DEFINE "SPECIAL VOTE".

Be it enacted by the General Assembly of the State of South Carolina: SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:

Section 12-36-1110. (A) An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter.

(B) The tax imposed pursuant to this article does not apply to any item subject to the maximum tax provisions of Section 12-36-2110.

(C) Revenue of the tax imposed pursuant to this article must be credited to the general fund as provided in Section 59-21-1010(A).The school purposes for which the revenues must first be used are:

(1) replacing school district revenues resulting from the school tax exemption for owner-occupied residential real property;

(2) raising the state share of the foundation program to eighty percent;

(3) paying one hundred percent of defined minimum plan school district employer contributions;

(4) paying one hundred percent of school district school bus driver salaries and associated employer contributions;

(5) purchasing buses, instructional materials, and providing building aid."

SECTION 2. Chapter 73, Title 59 of the 1976 Code is amended by adding:

"Section 59-73-15. (A) Beginning with the school taxes levied for school year 1994-95, school tax millage levied for operating purposes may not be increased by more than the rate of increase of the consumer price index calculated by the Bureau of Labor Statistics of the United States Department of Labor for the twelve months ending March 31 preceding the school year.

(B) Every school district annually shall submit to the Division of Research and Statistical Services of the State Budget and Control Board the millage limitation and the amount of property tax revenue collected. The division shall provide the reporting forms and may offer technical assistance to school districts in the computation of the millage limitation provided by this section."

SECTION 3. Chapter 20, Title 59 of the 1976 Code is amended by adding:

"Section 59-20-35. For school years beginning after 1993:

(1) the General Assembly annually shall appropriate funds sufficient to maintain the state share of the foundation program at eighty percent with the remainder of the program financed from local revenue sources.

(2) the Generally Assembly annually shall appropriate funds sufficient to pay one hundred percent of employer contributions required of school districts based on the defined minimum program."

SECTION 4. Article 3, Chapter 67, Title 59 of the 1976 Code is amended by adding:

"Section 59-67-422. For school years beginning after 1993, the General Assembly annually shall appropriate funds sufficient to pay one hundred percent of school district school bus driver salaries and associated employer contributions."

SECTION 5. Section 12-37-220B of the 1976 Code is amended by adding an appropriately numbered item to read:

"( ) Real property qualifying for the assessment ratio provided pursuant to Section 12-43-220(c) is exempt from all school taxes except school taxes levied for bonded indebtedness purposes. This exemption may not be repealed or amended except by a special vote of the General Assembly as defined in Section 59-21-1010(C)(2)."

SECTION 6. This act takes effect upon approval by the Governor except that Section 12-36-1110 of the 1976 Code, as added by this act, takes effect July 1, 1994.