H 3409 General Bill, By Walker, Allison, Davenport, Lanford, Littlejohn, McCraw, 
Phillips, E.C. Stoddard and C.C. Wells
 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;
 by adding Section 59-20-35 so as to provide for annual state appropriations
 sufficient to increase EFA foundation program state share to eighty percent
 and to pay one hundred percent of school district defined minimum plan
 employer contributions and to reimburse school districts for revenue lost as a
 result of property tax exemptions allowed by this Act; by adding Section
 59-73-15 so as to limit increases in school tax millage levied for operating
 purposes to increases i 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; by adding Section 12-37-257 so as to exempt
 owner-occupied residential real property from all school taxes except school
 taxes levied for bonded indebtedness

   01/26/95  House  Introduced and read first time HJ-13
   01/26/95  House  Referred to Committee on Ways and Means HJ-14

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; BY ADDING SECTION 59-20-35 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 TO REIMBURSE SCHOOL DISTRICTS FOR REVENUE LOST AS A RESULT OF PROPERTY TAX EXEMPTIONS ALLOWED BY THIS ACT; 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; BY ADDING SECTION 12-37-257 SO AS TO EXEMPT OWNER-OCCUPIED RESIDENTIAL REAL PROPERTY FROM ALL SCHOOL TAXES EXCEPT SCHOOL TAXES LEVIED FOR BONDED INDEBTEDNESS PURPOSES AND LEASE-PURCHASE PAYMENTS, TO PROVIDE THAT THIS EXEMPTION MAY NOT BE AMENDED OR REPEALED EXCEPT BY A TWO-THIRDS VOTE OF EACH HOUSE OF THE GENERAL ASSEMBLY, AND TO EXEMPT FROM ALL PROPERTY TAX TWO THOUSAND FIVE HUNDRED DOLLARS OF THE VALUE OF A MOTOR VEHICLE.

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 and for fiscal year 1995-96, the base student cost for the foundation program is estimated to be $1,718;

(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."

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 1995-96, 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 thirty-first 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 1994:

(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 General Assembly annually shall appropriate funds to each school district sufficient to pay one hundred percent of employer contributions required of school districts based on the defined minimum program.

(3) The General Assembly annually shall appropriate funds sufficient to reimburse each local school district for any revenue loss associated with the property tax exemptions allowed pursuant to Section 12-37-257, less any increase a district receives for increases in the Education Finance Act or employer contributions above the fiscal year 1994-95 level. This increase is based on the revenue loss associated with fiscal year 1995-96."

SECTION 4. Article 3, Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-257. (A) In addition to any other homestead exemption allowed by law, every homestead qualifying for the assessment ratio permitted pursuant to Section 12-43-220(c) is exempt from all school taxes except school taxes levied for debt service and lease-purchase payments for school construction and renovation. This subsection may not be repealed except by an affirmative vote of two-thirds of the total membership of each house of the General Assembly.

(B) Two thousand five hundred dollars of the fair market value of a motor vehicle is exempt from property tax."

SECTION 5. This act takes effect July 1, 1995, and applies with respect to real property tax years beginning after 1994 and motor vehicle property tax years beginning after June 30, 1995.