H*3919 Session 112 (1997-1998)
H*3919(Rat #0267, Act #0151 of 1997) General Bill, By Harrell
A BILL TO AMEND SECTION 4-10-20, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO THE RATE OF AND EXEMPTIONS FROM THE LOCAL SALES AND USE TAX, SO AS
TO EXEMPT FROM THIS TAX ALL ITEMS SUBJECT TO A MAXIMUM STATE SALES AND USE
TAX; TO AMEND SECTION 12-36-2110, AS AMENDED, RELATING TO MAXIMUM SALES TAX,
SO AS TO DELETE REFERENCES TO INDIVIDUAL ITEMS OF MACHINERY USED FOR RESEARCH
AND DEVELOPMENT AND DEFINE "MACHINERY" FOR PURPOSES OF THE MAXIMUM TAX; TO
AMEND SECTION 4-12-30, AS AMENDED, RELATING TO THE FEE IN LIEU OF PROPERTY
TAXES, SO AS TO PROVIDE FOR THE CALCULATION OF THE CUMULATIVE PROPERTY TAX
MILLAGE RATE WHEN AN AREA OF A MUNICIPALITY IS DE-ANNEXED; TO AMEND SECTION
4-29-10, RELATING TO THE DEFINITIONS FOR INDUSTRIAL REVENUE BOND PURPOSES, SO
AS TO EXTEND THE DEFINITION OF "PROJECT" TO INCLUDE RESIDENTIAL AND MIXED USE
DEVELOPMENTS OF TWO THOUSAND FIVE HUNDRED ACRES OR MORE; TO AMEND SECTION
4-29-67, AS AMENDED, RELATING TO THE FEE IN LIEU OF TAXES, SO AS TO PROVIDE
THAT A CORPORATION AND A CONTROLLED PARTNERSHIP UNDER CERTAIN CIRCUMSTANCES
ARE TREATED AS A SINGLE ENTITY AND TO AUTHORIZE AN ASSESSMENT RATIO OF NOT
LESS THAN FOUR PERCENT IN A FEE IN LIEU OF TAXES CALCULATION FOR A BUSINESS
WITH AN INVESTMENT OF AT LEAST SIX HUNDRED MILLION DOLLARS; TO AMEND SECTION
12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO
PROVIDE FOR AN INCREASED CREDIT DESIGNATION FOR A COUNTY WITH A POPULATION
UNDER TWENTY-FIVE THOUSAND; TO AMEND SECTION 12-10-80, AS AMENDED, RELATING TO
THE JOB DEVELOPMENT FEE, SO AS TO CONVERT THE JOB DEVELOPMENT FEE INTO A
CREDIT AGAINST STATE WITHHOLDING TAXES AND PROVIDE AN EXCEPTION; TO AMEND
SECTION 12-14-60,
04/10/97 House Introduced and read first time HJ-71
04/10/97 House Referred to Committee on Ways and Means HJ-71
04/24/97 House Committee report: Favorable with amendment Ways
and Means HJ-10
04/29/97 House Amended HJ-94
04/29/97 House Read second time HJ-96
04/30/97 House Read third time and sent to Senate HJ-28
05/01/97 Senate Introduced and read first time SJ-33
05/01/97 Senate Referred to Committee on Finance SJ-33
05/21/97 Senate Committee report: Favorable with amendment
Finance SJ-29
05/22/97 Senate Amended SJ-48
05/22/97 Senate Read second time SJ-48
05/22/97 Senate Ordered to third reading with notice of
amendments SJ-48
05/27/97 Senate Debate adjourned SJ-48
05/29/97 Senate Amended SJ-95
05/29/97 Senate Read third time and returned to House with
amendments SJ-95
06/03/97 House Senate amendment amended HJ-152
06/03/97 House Returned to Senate with amendments HJ-157
06/04/97 Senate Debate adjourned SJ-74
06/05/97 Senate Non-concurrence in House amendment SJ-160
06/05/97 House House insists upon amendment and conference
committee appointed Reps. Reps. Boan, Law &
Young-Brickell HJ-129
06/05/97 Senate Conference committee appointed Leventis,
McConnell & Reese SJ-162
06/05/97 House Conference report received and adopted HJ-238
06/17/97 Senate Conference report received and adopted SJ-53
06/17/97 Senate Ordered enrolled for ratification SJ-64
06/18/97 Ratified R 267
06/24/97 Signed By Governor
06/24/97 Effective date Upon approval by the Governor,
this act is effective for tax years beginning
after 1996
07/09/97 Copies available
07/09/97 Act No. 151
(A151, R267, H3919)
AN ACT TO AMEND SECTION 4-10-20, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO THE RATE OF AND
EXEMPTIONS FROM THE LOCAL SALES AND USE TAX, SO AS
TO EXEMPT FROM THIS TAX ALL ITEMS SUBJECT TO A
MAXIMUM STATE SALES AND USE TAX; TO AMEND SECTION
12-36-2110, AS AMENDED, RELATING TO MAXIMUM SALES
TAX, SO AS TO DELETE REFERENCES TO INDIVIDUAL ITEMS
OF MACHINERY USED FOR RESEARCH AND DEVELOPMENT
AND DEFINE "MACHINERY" FOR PURPOSES OF THE
MAXIMUM TAX; TO AMEND SECTION 4-12-30, AS AMENDED,
RELATING TO THE FEE IN LIEU OF PROPERTY TAXES, SO AS
TO PROVIDE FOR THE CALCULATION OF THE CUMULATIVE
PROPERTY TAX MILLAGE RATE WHEN AN AREA OF A
MUNICIPALITY IS DE-ANNEXED; TO AMEND SECTION 4-29-10,
RELATING TO DEFINITIONS FOR INDUSTRIAL REVENUE BOND
PURPOSES, SO AS TO EXTEND THE DEFINITION OF
"PROJECT" TO INCLUDE RESIDENTIAL AND MIXED
USE DEVELOPMENTS OF TWO THOUSAND FIVE HUNDRED
ACRES OR MORE; TO AMEND SECTION 4-29-67, AS AMENDED,
RELATING TO THE FEE IN LIEU OF TAXES, SO AS TO PROVIDE
THAT A CORPORATION AND A CONTROLLED PARTNERSHIP
UNDER CERTAIN CIRCUMSTANCES ARE TREATED AS A
SINGLE ENTITY AND TO AUTHORIZE AN ASSESSMENT RATIO
OF NOT LESS THAN FOUR PERCENT IN A FEE IN LIEU OF
TAXES CALCULATION FOR A BUSINESS WITH AN
INVESTMENT OF AT LEAST SIX HUNDRED MILLION DOLLARS;
TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO
THE TARGETED JOBS TAX CREDIT, SO AS TO PROVIDE FOR AN
INCREASED CREDIT DESIGNATION FOR A COUNTY WITH A
POPULATION UNDER TWENTY-FIVE THOUSAND; TO AMEND
SECTION 12-10-80, AS AMENDED, RELATING TO THE JOB
DEVELOPMENT FEE, SO AS TO CONVERT THE JOB
DEVELOPMENT FEE INTO A CREDIT AGAINST STATE
WITHHOLDING TAXES AND PROVIDE AN EXCEPTION; TO
AMEND SECTION 12-14-60, RELATING TO THE INVESTMENT
TAX CREDIT FOR PURPOSES OF THE ECONOMIC IMPACT ZONE
COMMUNITY DEVELOPMENT ACT OF 1995, SO AS TO ALLOW
A TEN-YEAR CARRYFORWARD OF UNUSED CREDIT; TO
AMEND SECTION 12-20-105, RELATING TO CREDITS AGAINST
THE CORPORATE LICENSE TAX, SO AS TO EXTEND THE
CREDIT FOR CERTAIN AMOUNTS PAID TO PROVIDE
INFRASTRUCTURE FOR AN ELIGIBLE PROJECT AND TO DEFINE
"ELIGIBLE PROJECT"; TO AMEND SECTION
12-36-2120, AS AMENDED, RELATING TO SALES TAX
EXEMPTIONS, SO AS TO REDUCE THE INVESTMENT
THRESHOLD FOR THE EXEMPTION ALLOWED MATERIAL
HANDLING SYSTEMS AND EQUIPMENT IN THE OPERATION OF
A DISTRIBUTION OR MANUFACTURING FACILITY; TO AMEND
SECTION 31-13-340, AS AMENDED, RELATING TO THE STATE
HOUSING, FINANCE, AND DEVELOPMENT AUTHORITY
PROGRAM FUND, SO AS TO ALLOW THE AUTHORITY TO USE
THE FUND TO ESTABLISH A CREDIT ENHANCEMENT
PROGRAM FOR ECONOMIC DEVELOPMENT PROJECTS
SELECTED BY THE DEPARTMENT OF COMMERCE; TO AMEND
SECTION 59-20-20, AS AMENDED, RELATING TO DEFINITIONS
FOR PURPOSES OF THE EDUCATION FINANCE ACT, SO AS TO
PROVIDE FOR THE METHOD OF COMPUTING THE VALUE OF A
FEE IN LIEU OF TAXES IN THE INDEX OF TAXPAYING ABILITY;
AND TO REPEAL SECTION 12-6-3490, RELATING TO THE
INFRASTRUCTURE CORPORATE LICENSE TAX CREDIT.
Be it enacted by the General Assembly of the State of South Carolina:
Sales tax
SECTION 1. A. Section 4-10-20 of the 1976 Code, as added by Act
317 of 1990, is amended to read:
"Section 4-10-20. A county, upon referendum approval, may levy
a sales and use tax of one percent on the gross proceeds of sales within the
county area which are subject to tax under Chapter 36 of Title 12 and the
enforcement provisions of Chapter 54 of Title 12. The sale of items with
a maximum tax levied in accordance with Section 12-36-2110 and Article
17 of Chapter 36 of Title 12 is exempt from the local sales and use tax.
The adopted rate also applies to tangible personal property subject to the
use tax in Section 12-36-1310. Taxpayers required to remit taxes under
Section 12-36-1310 shall identify the county or municipality in the county
area in which tangible personal property purchased at retail is stored,
used, or consumed in this State. Utilities are required to report sales in the
county or municipality in which consumption of the tangible personal
property occurs. A taxpayer subject to the tax imposed by Section
12-36-920, who owns or manages rental units in more than one county or
municipality, shall report separately in his sales tax return the total gross
proceeds from business done in each county or municipality."
B. Section 12-36-2110(D) of the 1976 Code, as added by Act 110 of
1991, is amended to read:
"(D) The maximum tax levied pursuant to this chapter on the
sale or use of machinery for research and development is three hundred
dollars. As used in this subsection, 'machinery for research and
development' means machinery used directly and exclusively in research
and development in the experimental or laboratory sense for new
products, new uses for existing products, or for improving existing
products. 'Machinery' includes machines and the parts of machines,
attachments, and replacements used or manufactured for use on or in the
operation of the machines and which are necessary to the operation of the
machines and are customarily so used. To be eligible for the limitation
imposed by this subsection, the machinery must be located in a separate
facility devoted exclusively to research and development as defined in this
subsection. The limitation does not extend to machinery used in
connection with efficiency surveys, management studies, consumer
surveys, economic surveys, advertising, promotion, or research in
connection with literary, historical, or similar projects."
C. Notwithstanding any other effective date provided in this act, this
section is effective for sales or use made on or after December 1, 1992.
Fee in lieu of tax
SECTION 2. A. Section 4-12-30(G) of the 1976 Code, as added by
Act 125 of 1995, is amended by adding at the end a new item to read:
"(3) For purposes of determining the cumulative property tax
millage rate under subsection (G)(2), the millage rate assessed by a
municipality must not be included in the computation even if the subject
property was located in the jurisdiction of the taxing entity as of June 30
preceding the calendar year in which the millage rate agreement is
executed, if, pursuant to agreement on the part of the taxing entity at the
time of execution of the millage rate agreement, the taxing entity
de-annexes the subject property before execution of the initial
lease."
B. The amendment to Section 4-12-30(G) of the 1976 Code as
contained in subsection A. is effective for millage rate agreements
executed after July 1, 1996.
Project
SECTION 3. Section 4-29-10(3) of the 1976 Code is amended to read:
"(3) 'Project' means any land and any buildings and other
improvements on the land including, without limiting the generality of the
foregoing, water, sewage treatment and disposal facilities, air pollution
control facilities, and all other machinery, apparatus, equipment, office
facilities, and furnishings which are considered necessary, suitable, or
useful by the following or any combination of them: (a) any enterprise
for the manufacturing, processing, or assembling of any agricultural or
manufactured products; (b) any commercial enterprise engaged in storing,
warehousing, distributing, transporting, or selling products of agriculture,
mining, or industry, or engaged in providing laundry services to hospitals,
to convalescent homes, or to medical treatment facilities of any type,
public or private, within or outside of the issuing county or incorporated
municipality and within or outside of the State; (c) any enterprise for
research in connection with any of the foregoing or for the purpose of
developing new products or new processes or improving existing products
or processes; (d) any enterprise engaged in commercial business
including, but not limited to, wholesale, retail, or other mercantile
establishments; residential and mixed use developments of two thousand
five hundred acres or more; office buildings; computer centers; tourism,
sports, and recreational facilities; convention and trade show facilities;
and public lodging and restaurant facilities if the primary purpose is to
provide service in connection with another facility qualifying under this
subitem; and (e) any enlargement, improvement, or expansion of any
existing facility in subitems (a), (b), (c), and (d) of this item. The term
'project' does not include facilities for an enterprise primarily engaged in
the sale or distribution to the public of electricity, gas, or telephone
services. A project may be located in one or more counties or
incorporated municipalities. The term 'project' also includes any
structure, building, machinery, system, land, interest in land, water right,
or other property necessary or desirable to provide facilities to be owned
and operated by any person, firm, or corporation for the purpose of
providing drinking water, water, or wastewater treatment services or
facilities to any public body, agency, political subdivision, or special
purpose district. This definition is for purposes of industrial revenue
bonds only."
Fee in lieu of tax
SECTION 4. Section 4-29-67(B)(4)(a) of the 1976 Code, as last
amended by Act 462 of 1996, is further amended to read:
"(a) Except as provided in subsections (B)(4)(b) and (D)(4)(a),
the investment must be made by a single entity. For purposes of this
section, (i) any partnership or other association which properly files its
South Carolina income tax returns as a partnership for South Carolina
income tax purposes will be treated as a single entity and as a partnership,
and (ii) any corporation or other association which properly files its South
Carolina income tax returns as a corporation for South Carolina income
tax purposes will be treated as a single entity and as a corporation. A
corporation and a partnership, which partnership is a 'controlled
partnership' of the corporation, as provided under Section 707(b)(1) of the
Internal Revenue Code as defined in Chapter 6 of Title 12, as of the date
of the execution of the inducement agreement, and both of which will
construct their projects on the same site qualifying for the fee, must be
treated as a single entity for purposes of this subsection and subsections
(B)(3) and (D)(4)."
Assessment ratio
SECTION 5. Section 4-29-67(D)(4)(a) of the 1976 Code, as last
amended by Act 462 of 1996, is further amended by adding at the end:
"(iv) in the case of a business which is investing at least six
hundred million dollars in this State."
Targeted jobs tax credit
SECTION 6. Section 12-6-3360(L) of the 1976 Code, as last amended
by Act 462 of 1996, is further amended to read:
"(L) Notwithstanding any other provision of this section, a
county with a population under twenty-five thousand as determined by the
most recent United States Census shall receive the next increased credit
designation for purposes of the credit allowed by this section."
Job development credit
SECTION 7. A. Section 12-10-80 of the 1976 Code, as last amended
by Act 462 of 1996, is further amended to read:
"Section 12-10-80. (A) A business that qualifies under Section
12-10-50 and which has met the minimum job requirement and minimum
capital investment provided for in the final revitalization agreement may
claim a job development credit as determined by this section. A business
may claim its job development credit against its withholding on its
quarterly state withholding tax return for the amount of job development
credit allowable under this section. The credit must be claimed on a
quarterly basis. In order to claim a job development credit, the business
must be current with respect to its withholding tax as well as any other tax
due and owing the State, and must have maintained its minimum
employment requirement for the entire quarter. A qualifying business
may receive its initial job development credit only after the council has
certified to the department that the qualifying business has met the
required minimum employment and capital investment levels. To be
eligible to apply to the council to claim a job development credit, a
qualifying business shall create at least ten new, full-time jobs at the
South Carolina facility described in the revitalization agreement. A
qualifying business is eligible to claim a job development credit under the
revitalization agreement for not more than fifteen years. To the extent any
return of an overpayment of withholding that results from claiming job
development credits is not used as permitted by subsection (C) or (D), it
must be treated as misappropriated employee withholding. Job
development credits may not be claimed for purposes of (B) and (C) with
regard to any employee whose job was created in this State before the
taxable year of the qualifying business in which it enters into a
revitalization agreement. If a qualifying business claims job development
credits under this section, it shall make its payroll books and records
available for inspection by the council and the department at the times the
council and the department request. Each qualifying business claiming
job development credits under this section shall file with the council and
the department the information and documentation respecting employee
withholding, the job development credit, and the use of any overpayment
of withholding resulting from the claiming of a job development credit
according to the revitalization agreement that the council or department
requests. Each qualifying business which claims in excess of ten
thousand dollars in any calendar year shall furnish an audited report
prepared by an independent certified public accountant which itemizes the
sources and uses of the funds. The audited report must be filed with the
council and the department no later than June thirtieth following the
calendar year in which the job development credits are claimed. No
employer may claim an amount that results in any employee ever
receiving a smaller amount of wages on either a weekly or on an annual
basis than the employee would otherwise receive in the absence of this
chapter.
(B) The maximum job development credit a qualifying business may
claim for new employees is determined by the sum of the following
amounts:
(1) two percent of the gross wages of each new employee who earns
6.34 dollars or more an hour but less than 8.45 dollars an hour;
(2) three percent of the gross wages of each new employee who
earns 8.45 dollars or more an hour but less than 10.57 dollars an hour;
(3) four percent of the gross wages of each new employee who
earns 10.57 dollars or more an hour but less than 15.85 dollars an hour;
and
(4) five percent of the gross wages of each new employee who
earns 15.85 dollars or more an hour.
The hourly gross wage figures set forth in this section must be adjusted
annually by an inflation factor determined by the State Budget and
Control Board. The amount which may be claimed by a qualifying
business is limited by subsection (C)(6) and the revitalization agreement.
The council may approve a waiver of ninety-five percent of the limits
under subsection (C)(6) for qualifying businesses making a significant
capital investment as defined in Section 4-12-30(D)(4) or Section
4-29-67(D)(4). The maximum job development credit that can be claimed
is limited to the lesser of withholding paid to the State on a quarterly basis
or the amount allowed by this subsection.
(C) In order to claim a job development credit, the qualifying business
must incur expenditures at the above-described facility or for utility or
transportation improvements that serve this facility. To be qualified
expenditures (a) the expenditures are incurred during the term of the
revitalization agreement or within sixty days before the execution of a
revitalization agreement, including a preliminary revitalization agreement,
(b) the expenditures must be by the revitalization agreement, and (c) the
expenditures are for any of the following purposes:
(1) training costs and facilities;
(2) acquiring and improving real estate whether constructed or
acquired by purchase, or in cases approved by the council, acquired by
lease or otherwise;
(3) improvements to both public and private utility systems
including water, sewer, electricity, natural gas, and telecommunications;
(4) fixed transportation facilities including highway, rail, water, and
air;
(5) construction or improvements of any real property and fixtures
constructed or improved primarily for the purpose of complying with
local, state, or federal environmental laws or regulations;
(6) the amount of job development credits a qualifying business
may claim for its use for qualifying expenditures is limited according to
the designation of the county as defined in Section 12-6-3360 as follows:
(a) one hundred percent of the maximum job development credits
may be claimed by businesses located in counties designated as 'least
developed';
(b) eighty-five percent of the maximum job development credits
may be claimed by businesses located in counties designated as 'under
developed';
(c) seventy percent of the maximum job development credits may
be claimed by businesses located in counties designated as 'moderately
developed'; or
(d) fifty-five percent of the maximum job development credits
may be claimed by businesses located in counties designated as
'developed'.
The council shall certify to the department the maximum job
development credit for each qualifying business. After receiving
certification, the department shall remit an amount equal to the difference
between the maximum job development credit and the job development
credit actually claimed to the State Rural Infrastructure Fund as defined
and provided in Section 12-10-85.
(D) Subject to the conditions in this section, any qualifying business
in this State may negotiate with the council to claim a job development
credit for retraining according to the procedure in subsection (A) in an
amount equal to five hundred dollars a year for each production employee
being retrained, where this retraining is necessary for the qualifying
business to remain competitive or to introduce new technologies. This
retraining must be approved by and performed by the technical college
under the jurisdiction of the State Board for Technical and
Comprehensive Education serving the designated enterprise zone. The
technical college may provide the retraining program delivery directly or
contract with other training entities to accomplish the required training
outcomes. In addition to the yearly limits, the amount claimed as a job
development credit for retraining may not exceed two thousand dollars
over five years for each production employee being retrained.
Additionally, the qualifying business must match on a dollar-for-dollar
basis the amount claimed as a job development credit for retraining. The
total amount claimed as job development credits for retraining and all of
the qualifying business' matching funds must be paid to the technical
college that provides the training to defray the cost of the training
program. Any training cost in excess of the job development credits for
retraining and matching funds is the responsibility of the qualifying
business based on negotiations with the technical college.
(E) Any job development credit of a qualifying business permanently
lapses upon expiration or termination of the revitalization agreement. If
an employee is terminated, the qualifying business immediately shall
cease to claim job development credits.
(F) For purposes of the job development credit allowed by this
section, an employee is a person whose job was created in this State.
(G) Job development credits may not be claimed by a governmental
employer who employs persons at a closed or realigned military
installation as defined in Section 12-10-85(E)."
B. A qualifying business that is a qualified recycling facility as defined
in Section 12-6-3460 of the 1976 Code may elect to receive the benefits
of Section 12-10-80 of the 1976 Code as that section existed immediately
before the effective date of the amendment to it contained in this section.
Carryforward
SECTION 8. Section 12-14-60 of the 1976 Code, as added by Act 25
of 1995, is amended by adding a new subsection at the end to read:
"(D) Unused credit allowed pursuant to this section may be
carried forward for ten years from the close of the tax year in which the
credit was earned."
Infrastructure credit
SECTION 9. Section 12-20-105 of the 1976 Code, as added by Act
231 of 1996, is amended to read:
"Section 12-20-105. (A) Any company subject to a license tax
under Section 12-20-100 may claim a credit against its license tax liability
for amounts paid in cash to provide infrastructure for an eligible project.
(B)(1) In order to be considered an eligible project for purposes of this
section, the project must qualify for income tax credits under Chapter 6
of Title 12, withholding tax credit under Chapter 10 of Title 12, income
tax credits under Chapter 14 of Title 12, or fees in lieu of property taxes
under Chapter 12 of Title 4.
(2) If a project consists of an office, business, commercial, or
industrial park which is constructed by a county or political subdivision
of this State, the project does not have to meet the qualifications of item
(1) in order to be considered an eligible project.
(C) For the purpose of this section 'infrastructure' means improvements
for water, sewer, gas, steam, electric energy, and communication services
made to a building or land which are considered necessary, suitable, or
useful to an eligible project. These improvements include, but are not
limited to:
(1) improvements to both public or private water and sewer
systems;
(2) improvements to both public or private electric, natural gas, and
telecommunication systems including, but not limited to, ones owned or
leased by an electric cooperative, electric utility, or electric supplier, as
defined in Chapter 27, Title 58;
(3) fixed transportation facilities including highway, road, rail,
water, and air.
(D) A company is not allowed the credit provided by this section for
actual expenses it incurs in the construction and operation of any building
or infrastructure it owns, leases, manages, or operates.
(E) The maximum aggregate credit that may be claimed in any tax
year by a single company is three hundred thousand dollars.
(F) The credits allowed by this section may not reduce the license tax
liability of the company below zero. If the applicable credit originally
earned during a taxable year exceeds the liability and is otherwise
allowable under subsection (D), the amount of the excess may be carried
forward to the next taxable year.
(G) For South Carolina income tax and license purposes, a company
that claims the credit allowed by this section is ineligible to claim the
credit allowed by Section 12-6-3420."
Sales tax
SECTION 10. A. Section 12-36-2120(51) of the 1976 Code, as last
amended by an act of 1997 bearing ratification number 162, is further
amended to read:
"(51) Material handling systems and material handling
equipment including, but not limited to, racks, whether or not the racks
are used to support a facility structure or part thereof, used in the
operation of a distribution facility or a manufacturing facility. In order to
qualify for this exemption, the taxpayer shall notify the department before
the first month it uses the exemption and shall invest at least thirty-five
million dollars in any real or personal property in this State over the
five-year period beginning on the date provided by the taxpayer to the
department in its notices."
B. Notwithstanding any other effective date provided in this act, this
section takes effect upon approval by the Governor.
Credit enhancement
SECTION 11. Section 31-13-340 of the 1976 Code is amended by
adding at the end:
"The authority is authorized to establish and fund through the
State Housing, Finance, and Development Authority Program Fund a
program to provide credit enhancements for designated economic
development projects selected by the Department of Commerce."
Index of taxpaying ability
SECTION 12. Section 59-20-20 of the 1976 Code, as last amended by
Act 497 of 1994, is further amended by adding at the end of item (3):
"For purposes of disbursing EFA funding and for purposes of the
index of taxpaying ability, the value of a fee in lieu of taxes shall be
computed by the Department of Revenue by basing the computation on
the net fee received and retained by the school district. The value thus
computed shall not be inflated by any portion of the fee shared with or
used by any other local taxing authority. Provided, however, any revenue
received by a taxing entity as a result of this section must be considered
taxable property for purposes of bonded indebtedness pursuant to Sections
14 and 15 of Article X of the Constitution of this State, and for purposes
of
computing the 'index of taxpaying ability' pursuant to item (3) of this
section."
Repeal
SECTION 13. Section 12-6-3490 of the 1976 Code is repealed.
Time effective
SECTION 14. Upon approval by the Governor, this act is effective for
tax years beginning after 1996.
Approved the 24th day of June, 1997. |