H 4846 Session 112 (1997-1998)
H 4846 Joint Resolution, By House Ways and Means
Similar(S 941, H 4662)
A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF
SOUTH CAROLINA, 1895, RELATING TO FINANCE AND TAXATION BY ADDING SECTION 1A
AND AMENDING EXISTING SECTION 6, SO AS TO REQUIRE ALL PERSONAL PROPERTY TO BE
THE SUBJECT OF A SEPARATE MILLAGE LEVY WHICH MAY NOT EXCEED THE 1998 PROPERTY
TAX YEAR LEVY ON SUCH PROPERTY, INCLUDING MILLAGE LEVIED FOR BONDED
INDEBTEDNESS, TO PROVIDE THE PROPERTY TAX YEAR WHEN THIS SEPARATE LEVY FIRST
APPLIES, TO REQUIRE THE 1998 MILLAGE RATE TO BE ADJUSTED ANNUALLY SO THAT
REVENUE RAISED BY THE TAX ON PERSONAL PROPERTY DOES NOT EXCEED THE REVENUE
RAISED BY THE 1998 MILLAGE RATE, AND TO MAKE A CONFORMING AMENDMENT.
03/19/98 House Introduced, read first time, placed on calendar
without reference HJ-54
03/25/98 House Requests for debate-Rep(s). Robinson, Allison,
Vaughn, Sheheen, Littlejohn, Easterday, Sharpe,
Davenport, Altman, Spearman, Young-Brickell, H.
Brown, Law, Young, Rice, Hinson, Neilson,
Chellis, HJ-39
03/25/98 House Requests for debate-Rep(s). Woodrum, McKay,
Loftis, Jordan, Townsend, Bailey, Kinon, R.
Smith, J. Hines, Leach & Cave HJ-39
03/31/98 House Debate adjourned until Wednesday, April 1, 1998 HJ-38
04/01/98 House Read second time HJ-48
04/01/98 House Roll call Yeas-101 Nays-12 HJ-61
04/02/98 House Read third time and sent to Senate HJ-25
04/07/98 Senate Introduced and read first time SJ-6
04/07/98 Senate Referred to Committee on Finance SJ-6
Indicates Matter Stricken
Indicates New Matter
INTRODUCED
March 19, 1998
H. 4846
Introduced by Ways and Means Committee
S. Printed 3/19/98--H.
Read the first time March 19, 1998.
STATEMENT OF ESTIMATED FISCAL
IMPACT
The bill requires that thirty percent of the BEA's projected
year-to-year general fund revenue growth be remitted to the Personal
Property Tax Relief Fund. Because the Constitutional amendment
could be ratified as early as January 1999, it could have an impact on
FY1998-99 revenues. In FY1998-99 this transfer would amount to
an estimated $36.2 million. In FY1999-00 this transfer would amount
to an estimated $67.5 million.
This proposal will set up a fund to reimburse local taxing entities
for "all other personal property" taxes up to a maximum
of the amount collected for tax year 1998. That amount is estimated
at $706 million. "All other personal property" includes
motor vehicles, boats, airplanes, and business personal property, and
is currently assessed at 10.5 percent. This revenue would be
reimbursed to local governments from the growth in state revenues.
Each year thirty percent new General Fund revenue will be allocated
to the fund. The Constitutional amendment requires local
governments to annually adjust the millage rate applied to these
properties to collect only $706 million as collected in FY1998-99.
The BEA estimates that the General Fund will collect $241 million
in new money in FY1998-99. Since one-half of FY1998-99 is in tax
year 1999, $36.2 million in FY1998-99 would be the obligation to the
Personal Property Tax Relief Fund. The BEA estimates that the
General Fund will collect $225 million in new money in FY1999-00.
Thirty percent, or $67.5 million, of the expected new collection
would be set aside in the Personal Property Tax Relief Fund.
Approved By:
William C. Gillespie
Board of Economic Advisors
STATEMENT OF ESTIMATED FISCAL
IMPACT
This bill would save local taxpayers $36.2 million in FY 1998-99
and $67.5 million in FY 1999-00. This bill would have no negative
impact on local government revenues. This bill has a potential to
cause a shift in tax incidence pursuant to Section 6-1-85(b).
This proposal will set up a fund to reimburse local taxing entities
for "all other personal property" taxes up to a maximum
of the amount collected for tax year 1998. This tax revenue would be
reimbursed to local governments from the growth in state revenues.
Each year thirty percent of new General Fund revenue will be
allocated to the fund. The Board of Economic Advisors (BEA)
estimates that the General Fund will collect $241 million in new
money in FY 1998-99. Since one-half of FY 1998-99 is in tax year
1999, $36.2 million would be allocated to the fund in FY 1998-99.
The BEA estimates that the General Fund will collect $225 million
in new money in FY 1999-00. Thirty percent of the new revenue
collected, or $67.5 million, would be allocated to the fund in FY
1999-00.
Approved By:
William C. Gillespie
Division of Budget and Analysis
STATEMENT OF ESTIMATED FISCAL
IMPACT
This joint resolution would change the incidence of local property
taxes among classes of property. Those changes from the levels that
would occur in the absence of this joint resolution are as follows:
Category ($ Million)FY 99 FY 00 FY 01 FY 02
Owner Occupied0 14 29 45
Manufacturing0 8 17 26
Utility0 5 11 16
Commercial Rental (Real)0 7 14 21
Agriculture0 0 1 1
Manufacturing (Fee)0 0 0 0
all other personal property0 (34) (72) (109)
The analysis projects the local revenue requirements from current
property taxes at its historical rate of 5.2% per year. A baseline
projection in the absence of this bill for taxes in each category shown
above was made according to its historical rate of growth. It is
anticipated that local taxing entities would not enact other taxes to
compensate for any shortfall. A projection was made fixing
"all other personal property" taxes at 706 million dollars
in FY 99 and adjusting millage to meet local revenue requirements
from the property tax. The changes to the baseline are shown above.
Approved By:
William C. Gillespie
Division of Budget and Analysis
A JOINT RESOLUTION
PROPOSING AN AMENDMENT TO ARTICLE X OF THE
CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO
FINANCE AND TAXATION BY ADDING SECTION 1A AND
AMENDING EXISTING SECTION 6, SO AS TO REQUIRE ALL
PERSONAL PROPERTY TO BE THE SUBJECT OF A
SEPARATE MILLAGE LEVY WHICH MAY NOT EXCEED THE
1998 PROPERTY TAX YEAR LEVY ON SUCH PROPERTY,
INCLUDING MILLAGE LEVIED FOR BONDED
INDEBTEDNESS, TO PROVIDE THE PROPERTY TAX YEAR
WHEN THIS SEPARATE LEVY FIRST APPLIES, TO REQUIRE
THE 1998 MILLAGE RATE TO BE ADJUSTED ANNUALLY SO
THAT REVENUE RAISED BY THE TAX ON PERSONAL
PROPERTY DOES NOT EXCEED THE REVENUE RAISED BY
THE 1998 MILLAGE RATE, AND TO MAKE A CONFORMING
AMENDMENT.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. It is proposed that Article X of the Constitution of this
State be amended by adding:
"Section 1A. For motor vehicle property tax years beginning
after June, 1999, and all other personal property tax years beginning
after 1998, all personal property included in the classifications
established pursuant to Section 1 of this article must be the subject of
a separate millage rate imposition uniformly applied to personal
property and this millage rate may not exceed the millage rate
imposed for such property for any property tax year beginning in
1998, including amounts levied for that year for bonded indebtedness
and this millage rate must be annually adjusted, if necessary, so that
the revenue raised by the tax on personal property does not exceed
the revenue raised by the 1998 millage rate."
It is proposed that the first paragraph of Article X, Section 6 of the
Constitution of this State be amended to read:
"The General Assembly may vest the power of assessing and
collecting taxes in all of the political subdivisions of the State.
Property tax levies shall be uniform in respect to persons and
property within the jurisdiction of the body imposing such
taxes; except as otherwise provided in this article;
and provided, that on properties located in an area receiving
special benefits from the taxes collected, special levies may be
permitted by general law applicable to the same type of political
subdivision throughout the State, and the General Assembly shall
specify the precise condition under which such special levies shall be
assessed."
SECTION 2. The proposed amendment must be submitted to the
qualified electors at the next general election for representatives.
Ballots must be provided at the various voting precincts with the
following words printed or written on the ballot:
"Must Article X of the Constitution of this State be amended
by adding Section 1A and by amending existing Section 6 so as to
provide that property taxes imposed on motor vehicles for motor
vehicle property tax years beginning after June, 1999, and on all
other personal property for property tax years beginning after 1998,
must be separately imposed at a uniform rate on all personal property
at a rate that may not exceed the millage rate imposed on such
property for any property tax year beginning in 1998 with annual
adjustments in the millage rate if necessary so that the revenue raised
by the tax on personal property does not exceed the revenue raised by
the 1998 millage rate?
Yes []
No []
Those voting in favor of the question shall deposit a ballot with a
check or cross mark in the square after the word 'Yes', and those
voting against the question shall deposit a ballot with a check or cross
mark in the square after the word 'No'."
-----XX----- |