H 4138 Session 111 (1995-1996)
H 4138 General Bill, By House Ways and Means
Similar(H 3904)
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
11-11-145 so as to provide for the continuing authority to pay the expenses of
state government when a fiscal year begins without a General Appropriations
Act for the year in effect.
04/20/95 House Introduced, read first time, placed on calendar
without reference HJ-8
04/26/95 House Read second time HJ-104
04/27/95 House Read third time and sent to Senate HJ-10
05/01/95 Senate Introduced, read first time, placed on calendar
without reference SJ-26
05/01/95 Senate Unanimous consent for second reading on next
legislative day SJ-26
05/02/95 Senate Read second time SJ-5
05/02/95 Senate Ordered to third reading with notice of amendments SJ-5
05/11/95 Senate Debate interrupted SJ-69
05/16/95 Senate Amended SJ-20
05/16/95 Senate Debate interrupted SJ-20
05/17/95 Senate Amended SJ-23
05/17/95 Senate Debate adjourned SJ-40
03/13/96 Senate Recommitted to Committee on Finance SJ-38
03/14/96 Senate Recalled from Committee on Finance SJ-3
03/14/96 Senate Debate adjourned SJ-3
05/08/96 Senate Committed to Committee on Finance SJ-25
Indicates Matter Stricken
Indicates New Matter
AMENDED THE SECOND TIME
May 17, 1995
H. 4138
Introduced by Ways and Means Committee
S. Printed 5/17/95--S.
Read the first time May 1, 1995.
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING SECTION 11-11-145 SO AS TO PROVIDE
FOR THE CONTINUING AUTHORITY TO PAY THE
EXPENSES OF STATE GOVERNMENT WHEN A FISCAL
YEAR BEGINS WITHOUT A GENERAL APPROPRIATIONS
ACT FOR THE YEAR IN EFFECT.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South
Carolina:
PART I
Referendum
SECTION 1. The State Election Commission shall conduct a
statewide referendum on November 7, 1995, on the question of
raising the sales tax in order to provide property tax relief. The
state election laws apply to this referendum, mutatis mutandis. The
commission shall canvass the results of the referendum and certify
the results to the director of the Department of Revenue and
Taxation and the Code Commissioner. The referendum question
must read substantially as follows:
"Do you favor raising the statewide sales, use, and casual
excise tax rate from five to six percent and replacing the state
individual income tax with a flat tax on all income of individuals at
a rate of six percent with a non-refundable personal exemption
credit of three hundred fifty-five dollars per exemption to be phased
out beginning with adjusted gross income that exceeds fifty
thousand dollars and to provide for a refundable credit for taxes
paid to other states in order to grant owner-occupied residential
property an exemption from all property taxes levied for operating
purposes except those levied pursuant to referendum and those
levied by special purpose or public service districts and county
special tax districts?
[] 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'."
PART II
Revenues
SECTION 1. A. Article 3, Chapter 7, Title 12 of the 1976
Code is amended by adding:
"Section 12-7-211. (A) For taxable years beginning after
1995, a tax at the rate of six percent is imposed on the South
Carolina taxable income of individuals, estates, and trusts.
(B) For purposes of the tax imposed by this section, South
Carolina taxable income is the taxpayer's adjusted gross income as
defined under the Internal Revenue Code with the modifications
specified in subsection (C) of this section.
(C) There is allowed as a deduction from South Carolina
adjusted gross income interest income on obligations of the United
States.
B. Article 3, Chapter 7, Title 12 of the 1976 Code is amended by
adding:
"Section 12-7-220. There is allowed as a non-refundable
credit against the tax due imposed pursuant to Section 12-7-211 an
amount equal to three hundred fifty-five dollars for each individual
taxpayer and dependent claimed by the taxpayer on the taxpayer's
federal income tax return. This credit is reduced by an amount
equal to $12.50 for each one thousand dollars in excess of fifty
thousand dollars reported on the taxpayer's South Carolina
individual income tax return. If a dependent claimed on the
taxpayer's federal return files a separate return, the dependent is not
allowed the credit provided under this section."
C. Sections 12-7-210, 12-7-212, 12-7-213, 12-7-215, 12-7-410,
12-7-430, 12-7-435, 12-7-437, 12-7-441, 12-7-460, 12-7-1210,
12-7-1230, and 12-7-1235 of the 1976 Code are repealed for
taxable years beginning after 1995.
D. Individual income tax revenues produced pursuant to the tax
imposed by Section 12-7-211 of the 1976 Code that exceed the
revenues that would have been produced by the tax imposed by
Section 12-7-210 as repealed by this act must be credited to the
Property Tax Relief Fund.
SECTION 2. Chapter 36, Title 12 of the 1976 Code is amended
by adding:
"Article 11
Additional Sales, Use, and
Casual Excise Tax
Section 12-36-1110. An additional sales, use, and casual excise
tax equal to one percent is imposed on amounts taxable pursuant to
this chapter. Revenue of the tax imposed pursuant to this article
must be credited to the Property Tax Relief Fund in the State
Treasury, a fund separate and distinct from the general fund of the
State.
Section 12-36-1120. (A) The revenues in the Property Tax
Relief Fund must be distributed quarterly beginning October first of
each year by the Comptroller General to reimburse property taxing
jurisdictions a sum equal to that not collected in the jurisdiction for
property tax year 1996 because of Section 12-37-257. If insufficient
revenues are available in the Property Tax Relief Fund to pay the
required reimbursements, the Comptroller General shall pay the
difference from the general fund of the State. County treasurers
and municipal governing bodies where appropriate shall file
quarterly reports of estimated revenue losses with the Comptroller
General in the manner and at the time the Comptroller General
directs. After making any changes necessary to ensure accuracy,
the Comptroller General shall make reimbursements based on these
estimates. The final accounting for the fiscal year must be filed in
the manner provided for homestead exemption reimbursements in
Section 12-37-270, mutatis mutandis. For purposes of future
distributions, property tax year 1996 is deemed the base year.
(B) Reimbursements for subsequent tax years must equal the
base year reimbursement from all sources. The school portion is
determined by multiplying revenues above the adjusted base year
amount by the ratio that school tax reimbursements represented of
total reimbursements from the Property Tax Relief Fund for tax
year 1996. These funds must be distributed to school districts
through the provisions of the Education Finance Act. The
remaining share for local governments must be distributed in the
manner provided in Chapter 27 of Title 6."
SECTION 3. Section 12-36-940 of the 1976 Code is amended
to read:
"Section 12-36-940. Every retailer may add to the sales
price:
(1) no amount on sales of ten cents or less;
(2) one cent on sales of eleven cents and over, but not in excess
of twenty cents;
(3) two cents on sales of twenty-one cents and over, but not in
excess of forty cents;
(4) three cents on sales of forty-one cents and over, but not in
excess of sixty cents;
(5) four cents on sales of sixty-one cents and over, but not in
excess of eighty cents;
(6) five cents on sales of eighty-one cents and over, but not in
excess of one dollar;
(7) one cent additional for each twenty cents or major fraction
thereon in excess of one dollar.
The inability, impracticability, refusal, or failure to add these
amounts to the sales price and collect from the purchaser does not
relieve the taxpayer from the tax levied by this article.
A retailer may add the amount of the tax to the sales price
and the department shall prescribe tables providing the amount to
be added to the sales price consistent with the total rate of the
tax."
SECTION 4. A. The gross proceeds of sales of tangible
personal property delivered after June 30, 1996, in this State, either
under the terms of a construction contract executed before July 1,
1996, or a written bid submitted before July 1, 1996, culminating in
a construction contract entered into before or after July 1, 1996, are
exempt from the tax provided in Section 12-36-1110 of the 1976
Code if a verified copy of the contract is filed with the South
Carolina Department of Revenue and Taxation before January 1,
1997.
B. Notwithstanding the date of general imposition of the tax
imposed pursuant to Section 12-36-1110 of the 1976 Code, with
respect to services that are regularly billed on a monthly basis, the
tax is imposed beginning on the first day of the billing period
beginning on or after July 1, 1996.
SECTION 5. Section 11-11-140(D) of the 1976 Code is
amended to read:
"(D) Appropriations from surplus may not be made before
the first meeting of the General Assembly following the
Comptroller General's closing of the books on the fiscal year in
which the surplus occurred and may be appropriated only for
nonrecurring purposes. The provisions of this subsection do not
apply to appropriations to cover midyear shortfalls in the Property
Tax Relief Fund as established pursuant to Article 11, Chapter 36
of Title 12."
SECTION 6. In each county of the State in which the local
option sales and use tax is not imposed, the referendum provided in
Section 4-10-30 of the 1976 Code must be held on November 7,
1995. If the question is approved, the tax is imposed in the county
in the manner provided by law. In each county in which is
imposed the local option sales tax, the referendum provided in
Section 4-10-35 of the 1976 Code must be held on November 7,
1995. If the question is approved, the tax is rescinded in the county
in the manner provided by law.
PART III
Tax Relief
SECTION 1. A. Article 3, Chapter 37, Title 12 of the 1976
Code is amended by adding:
"Section 12-37-257. In addition to any other homestead
exemption allowed by law, one hundred percent of the fair market
value of every homestead qualifying for the assessment ratio
provided pursuant to Section 12-43-220(c) is exempt from all ad
valorem taxes except ad valorem taxes levied as follows:
(1) for debt service and for payments pursuant to
lease-purchase agreements;
(2) by special purpose or public service districts;
(3) county special tax districts;
(4) ad valorem taxes levied pursuant to a referendum in
which a majority of the qualified electors of the jurisdiction voting
in the referendum voted in favor of levying the taxes."
B. Subject to Part I of this act, Section 12-37-257 of the 1976
Code, as added by this section, is effective for property tax years
beginning after 1995.
SECTION 2. Chapter 29, Title 4 of the 1976 Code is amended
by adding:
"Section 4-29-72. For agreements executed after June 30,
1996, the provisions of Section 4-29-67 apply regardless of the
amount of the project investment."
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 furnishing which are considered
necessary, suitable, or useful by the following or any combination
thereof: (a) any enterprise for the manufacturing, processing, or
assembling of any agricultural or manufactured products and
facilities for an enterprise engaged in the sale or distribution to the
public of electricity, gas, or telephone services; (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; 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."
PART IV
Administration
SECTION 1. A. Section 12-4-310 of the 1976 Code, as last
amended by Act 361 of 1992, is further amended by adding at the
end:
"(11) collect taxes on properties assessed by the
department as provided in Section 12-4-540 except for business
personal property. The State Treasurer shall distribute property
taxes collected pursuant to this item daily by electronic transfer to
county treasurers for the credit of the taxing entities in the
county."
B. The amendment to Section 12-4-310 of the 1976 Code as
contained in this section is effective for taxes due for tax years
beginning after 1995.
SECTION 2. Section 12-4-540(A) of the 1976 Code is amended
to read:
"(A) The commission department has the
sole responsibility for the appraisal, assessment, and equalization of
the taxable values of corporate headquarters, corporate office
facilities, and distribution facilities and of the real and personal
property owned, used, or leased by the following businesses in the
conduct of their business:
(1) manufacturing;
(2) railway;
(3) private carline;
(4) airline;
(5) water, heat, light, and power;
(6) telephone;
(7) cable television;
(8) sewer;
(9) pipeline;
(10) mining.
In addition, the commission department has the
sole responsibility for the appraisal, assessment, and equalization of
the taxable values of the business personal
property of merchants."
SECTION 3. A. Section 12-37-970 of the 1976 Code, as last
amended by Act 181 of 1993, is further amended to read:
"Section 12-37-970. The assessment for property taxation
of merchants' inventories, equipment, furniture, and
fixtures, and manufacturers' real and tangible personal property, and
the machinery, equipment, furniture, and fixtures of all
other taxpayers required to file returns with the South Carolina
Department of Revenue and Taxation for purposes of assessment
for property taxation, must be determined by the department from
property tax returns submitted by the taxpayers to the department
on or before the due date for the taxpayer's state income return,
including any extension last day of the fourth month after
the close of the accounting period regularly employed by the
taxpayer for income tax purposes in accordance with Chapter 7 of
this title. The department by regulation shall prescribe
the form of return required by this section, the information to be
contained in it, and the manner in which the returns must be
submitted and shall provide a method of filing this return as a
part of the taxpayer's state income tax return. Every taxpayer
required to make return to the department of property for
assessment for property taxation must make the return to the
department not less than once each calendar year. Whenever by a
change of accounting period, or otherwise, more than one
accounting period ends within any one calendar year, the taxpayer
must make one such return within the prescribed time for filing
following the end of each of the accounting periods and the
department shall determine the assessment from the return setting
forth the greatest value.
When property required to be returned as herein provided is sold
after the end of the seller's accounting year and before January first
next ensuing and when the purchaser's accounting year ends after
the seller's and before January first next ensuing, the property must
be returned by the seller as of the end of his accounting period.
The purchaser is not required to list and return the property as of
the close of his accounting period during the calendar year of sale.
The seller and the purchaser are jointly and singularly liable for the
tax that is due and payable by reason of this provision. The
provision of this section does not apply to motor vehicles licensed
for use on public highways.
When property required to be returned as provided in this section
is sold before the end of the seller's accounting year and before
January first next ensuing and when the purchaser's accounting year
ends before the date of purchase and before January first next
ensuing, the property must be listed and returned by the taxpayer
holding title as of December thirty-first and is liable for the tax for
the ensuing year.
The Department of Revenue and Taxation shall forward the
assessments prepared as a result of the returns submitted pursuant to
this section for business personal property to the
appropriate local taxing authorities no later than August fifteenth
of the applicable tax year."
B. Section 12-37-905 of the 1976 Code is repealed.
C. This section is effective for property tax years beginning
after 1995.
SECTION 4. A. Section 12-43-250 of the 1976 Code is
amended to read:
"Section 12-43-250. The Commission shall make sales
ratio studies in all counties of the State and when, in the judgment
of the Commission, a county needs to reassess or remap property,
the Commission shall make application to the circuit court in which
the county is located for a determination of whether or not the
county shall be required to commence reassessment or remapping.
If the circuit court determines that the county needs reassessment or
remapping, such county shall be required to commence the
reassessment or remapping within thirty days of such
determination. All taxable real property in a county must
be appraised and equalized once every fourth year beginning with
the 1996 property tax year. Upon completion of a reassessment and
equalization program, property taxpayers must be notified of any
resulting change in value or classification. The values determined
by the program first apply for the property tax year beginning after
the completion of the program and notification of taxpayers. If a
county fails to comply with this section, the Comptroller General
shall withhold twenty percent of the reimbursement due the county
pursuant to Section 12-36-1120."
B. The Department of Revenue and Taxation shall establish a
schedule of initial reassessments for all counties in conformity with
the provisions of Section 12-43-250 of the 1976 Code as amended
by this section.
SECTION 5. A. Section 12-43-300 of the 1976 Code, as last
amended by Act 181 of 1993, is further amended to read:
"Section 12-43-300. (A) Whenever the market value
estimate of any property is fixed by the assessor
assessing authority at a sum greater by one thousand
dollars or more than the amount returned by the owner or his agent,
or whenever any property is valued and assessed for taxation which
has not been returned or assessed previously, the assessor
assessing authority shall, on or before July first, or as soon
thereafter as may be practicable, in the year in which the valuation
and assessment is made give written notice thereof to the owner of
the property or his agent. In reassessment years, the written
reassessment notice to owners or agents must be given by July first.
If there is no timely written notice, the prior current
year's assessed value must be the basis for assessment for the
current succeeding taxable year. The notice must
include the prior market value, the total market value estimate, the
value estimate if applicable, the assessment ratio, the total new
assessment, the percentage changes over the prior market value, if
there is no change in use or physical characteristics of the property,
number of acres or lots, location of property, tax map, appeal
procedure, and other pertinent ownership and legal description data
required by the South Carolina Department of Revenue and
Taxation. The notice may be served upon the owner or his agent
personally or by mailing it to the owner or his agent at his last
known place of residence which may be determined from the most
recent listing in the applicable telephone directory, Department of
Revenue and Taxation Motor Vehicle Registration List, county
treasurer's records, or official notice from the property owner or his
agent. The owner or his agent, if he objects to the valuation and
assessment, shall serve written notice of his objection upon the
assessor assessing authority within thirty days of the
date of the mailing of the notice. In years when there is no notice
of appraisal because of a less than one thousand dollar change or no
change in the appraised or assessed value, the owner or agent has
until March first to serve written notice of objection upon the
assessor assessing authority of the appraised or
assessed value. In those years, failure to serve written notice of
objection by March first constitutes a waiver of the owner's right of
appeal for that tax year and the assessor assessing
authority is not required to review any request filed after
March first. The assessor assessing authority shall
then schedule a conference with the owner or agent within twenty
days of receipt of the notice. If the assessor assessing
authority requests it, the owner, within thirty days after the
conference, shall complete and return to the assessor
assessing authority the form as may be approved by the
Department of Revenue and Taxation relating to the owner's
property and the reasons for his objection. Within thirty days after
the conference, or as soon thereafter as practicable, the
assessor assessing authority shall mail written notice
of his action upon the objection to the owner. The owner or agent,
if still aggrieved by the valuation and assessment, may appeal from
the action to the Board of Assessment Appeals a
department hearing officer by giving written notice of the
appeal and the grounds thereof to the assessor assessing
authority within thirty days from the date of the mailing of the
notice. The assessor assessing authority shall notify
promptly the Board of Assessment Appeals hearing
officer of the appeal, who shall schedule a hearing on the
appeal within thirty days after notice from the assessing authority
and notify the taxpayer of the hearing date and furnish the taxpayer
a summary of the applicable procedures for the hearing.
(B) The governing body of the county may by ordinance extend
the time for filing an objection to the valuation and assessment of
real property resulting from reassessment within a county.
(C) The Department of Revenue and Taxation shall prescribe a
standard reassessment form designed to contain the information
required in subsection (A) in a manner that may be understood
easily.
(D) At the hearing provided in subsection (A), the hearing
officer shall consider the issues raised by the taxpayer and the
assessing authority and subsequently shall make a determination
which is binding on both parties. The department shall prescribe
the procedure applicable to these hearings which shall require
information from both parties sufficient for the hearing officer to
make an appropriate determination. These hearings must be
conducted informally. Any party aggrieved by the determination of
the hearing officer may appeal the decision to the Administrative
Law Judge Division in the manner prescribed by law which shall
hear the matter de novo as a contested case pursuant to Chapter 23
of Title 1. Notwithstanding the provisions of this section, a
taxpayer aggrieved by the determination of the assessing authority
whose property is assessed pursuant to Section 12-43-220(a) or who
objects to the classification imposed by that section may waive the
hearing before the hearing officer and appeal directly to the
Administrative Law Judge Division for a de novo hearing of the
appeal.
(E) The department shall provide sufficient hearing officers to
hear all appeals expeditiously."
B. The amendment to Section 12-37-300 of the 1976 Code
contained in this section applies to appeals for taxes filed for tax
years after 1995.
SECTION 6. A. Article 5, Chapter 4, Title 12 of the 1976
Code is amended by adding:
"Section 12-4-580. The governing body of a county may
by ordinance transfer to the department the responsibility for the
appraisal, assessment, and equalization of the taxable real property
under the jurisdiction of the county assessor. When this transfer
occurs, the department shall perform the functions of the county
assessor in that county. Before this transfer occurs, the county
governing body and the department shall agree to the employees,
duties, functions, and other related items to be transferred to the
department. Upon agreement, and with the approval of the State
Budget and Control Board, the transfer allowed under this section
occurs on the first day of July following approval by the board if
sufficient funds are appropriated to the department to meet the
additional expenses. The State Budget and Control Board shall
conduct a study to determine the expenses of the department in the
transfer of functions and personnel authorized by this section and
shall make recommendations to the General Assembly of the
appropriations necessary to meet these expenses."
B. This section takes effect July 1, 1996.
SECTION 7. A. The first paragraph of Section 12-37-90 of
the 1976 Code is amended to read:
"Except as provided in Section 12-4-580, all
counties shall have a full-time assessor, whose responsibility is
appraising and listing all real property, whether exempted or not,
except real property required by law to be assessed by the
commission department and property owned by the
federal government, state government, county government,
or any of its political subdivisions which is exempt from property
taxation. If the assessor discovers that any real property required by
law to be assessed by the commission department
has been omitted, he shall notify the commission
department that such property has been omitted and the
commission department shall be is
required to appraise and assess the omitted property."
B. This section takes effect July 1, 1996.
SECTION 8. Section 12-4-320 of the 1976 Code, as last
amended by Act 516 of 1994, is further amended to read:
"Section 12-4-320. The commission
department may:
(1) make rules and promulgate regulations, not inconsistent
with law, to aid in the performance of its duties. The
commission department may prescribe the extent, if
any, to which these rules and regulations must be applied without
retroactive effect;
(2) upon written application, determine the tax effects of
transactions and the tax liability of taxpayers, upon facts furnished
to it, and it may revoke or modify the rulings if the facts should
develop differently later. The commission
department, in its discretion, may publish these rulings.
This publication may be in brief hypothetical form so as to give all
pertinent facts and decisions without violating the provisions of
Section 12-54-240;
(3) compromise any tax, interest, or penalty imposed by this
title or other law assigned to it and may return to the owner, in
whole or in part, any goods seized or confiscated;
(4) enter into a written agreement with a person with regard
to a tax liability. If the agreement is approved by a majority of
the commissioners the department, it is final and
conclusive and the case may not be reopened by administrative or
judicial action or otherwise, except in cases of fraud, malfeasance,
or misrepresentation;
(5) publish its findings and decisions in all controversies
resolved by it. This publication may be in brief hypothetical form
so as to give all pertinent facts, decisions, and reasons without
violating the provisions of Section 12-54-240.;
(6) if damage by natural forces occurs as defined in Section
12-9-310, prescribe temporary rules including, but not limited to,
the filing of returns, payment of taxes, and extensions of due
dates.;
(7) waive the retroactive assessment of a state tax when
it determines the taxpayer acted in good faith, and that there were
reasonable grounds for the taxpayer's interpretation of the
applicable law."
SECTION 9. A. Section 12-54-160 of the 1976 Code is
amended to read:
"Section 12-54-160. The Commission
department, unless prohibited within a specific section, may
waive, dismiss, or reduce penalties provided for in this
chapter;. Interest may not be waived, dismissed, or
reduced except:
(1) when the taxpayer can establish that he followed
professional advice which has proved inaccurate; or
(2) if the taxpayer can by clear and convincing evidence
establish he did not know he was liable for the tax; or
(3) the imposition of the tax is a result of regulation or other
interpretation of existing tax laws."
B. This section takes effect upon approval by the Governor and
applies with respect to interest on underpayments of state taxes
assessed on and after that date. The provisions of subsection A. of
this section also apply to interest paid or accrued in the three years
preceding the effective date of this section, but no refund of interest
already paid may be made except upon application therefor to the
Department of Revenue and Taxation within ninety days of the
effective date of this section.
SECTION 10. A. The 1976 Code is amended by adding:
"Section 6-1-60. (A) A county, municipality, and a
school district must provide notice to the public by advertising the
public hearing before the adoption of its budget for the next fiscal
year in the nonclassified section of the largest general circulation
newspaper in the area. The public hearing must give the residents
of this governing body the opportunity to express their concerns and
to provide ideas or input for discussion by the local governing
entity. This notice must be given fourteen days in advance of the
public hearing, and must be a minimum of two columns by ten
inches (four and one-half by ten inches) with at least a twenty-four
point headline.
(B) The notice shall include the following:
(1) the governing entity's name;
(2) the time, date, and location of the public hearing on the
budget;
(3) the total, actual, and projected expenditures of the current
operating fiscal year in the budget of the governing entity;
(4) the proposed total projected operating expenditures for the
next fiscal year as proposed in next year's budget for the governing
entity;
(5) the proposed or estimated percentage change in operating
budgets between the current fiscal year and the proposed budget;
(6) the total, actual, and projected revenue of all property
taxes in dollars for the current fiscal year budget;
(7) the proposed total projected revenue of all property taxes
in dollars for the proposed budget;
(8) the millage in current year dollars for the current fiscal
year;
(9) the proposed millage in dollars as proposed in the budget
for the next fiscal year; and
(10) any new fees or taxes that would affect more than five
percent of the total proposed budget.
(C) The requirements of this section apply in the preparation of
annual budget and supplemental appropriations. When a county,
municipality, or school district determines that it requires a greater
tax rate after the adoption of the budget or during the current fiscal
year, or fails to provide notice within the above-specified period, it
must also comply with the notice provisions of this section."
B. This section is effective for fiscal years beginning after June
30, 1995.
PART V
Local Government and School District Spending
and Taxing Limits
SECTION 1. Chapter 1, Title 6 of the 1976 Code is amended
by adding:
"Section 6-1-75. (A) As used in this section:
(1) `Consumer price index' means the percentage increase if
any, in the consumer price index in the last completed calendar year
as determined by the Bureau of Labor Statistics of the United States
Department of Labor. In the case of a school district, `consumer
price index' means the inflation factor set by the Board of
Economic Advisors which may not be adjusted by the General
Assembly.
(2) `Fee' means a charge imposed by a political subdivision.
`Fee' does not include:
(a) a charge for copying public documents;
(b) admission charges to places of recreation or
amusement;
(c) charges for medical services;
(d) an amount charged for debt service on capital projects;
(e) criminal fines or penalties for administrative violations.
(3) `Political subdivision' means a county, municipality,
consolidated political subdivision, or school district of this State. A
political subdivision does not include a special purpose or public
service district.
(4) `Referendum' means a referendum called by the
governing body of a political subdivision for the specific purpose of
obtaining approval for a property tax increase or imposition of a
new fee in which a majority of the qualified electors of the political
subdivision voting in the referendum vote in favor of the additional
tax or new fee.
(B) (1) The governing body of a political subdivision may not
increase the millage it imposes for a tax year over the millage it
imposed for the prior year by more than the consumer price index
except by referendum. If the consumer price index allows a millage
increase without a referendum and no additional millage is imposed
for that tax year, then the millage that may be imposed for the
succeeding tax year without a referendum may be increased by the
millage rate increase allowed but not imposed for the prior tax year.
In a reassessment year, the limits imposed by this item apply to a
rollback millage rate and not the millage rate imposed for the prior
tax year. The rollback millage rate is computed by dividing current
year property tax revenues by the budget year property tax
assessment base.
(2) If the financing of a service is changed from property tax
revenues to user fees, the governing body of the political
subdivision shall reduce the millage by an amount sufficient to
offset the amount of property tax formerly budgeted to provide the
service.
(C) The governing body of a political subdivision may not
increase in any one year a fee it imposes by more than the
consumer price index.
(D) (1) Except as provided in items (2) and (4) the governing
body of a political subdivision may not impose any new fee except
by referendum and any new fee may only be imposed to provide a
specific service or for the completion of a specific project. In the
case of a fee imposed for a specific project, the fee must be
removed when the project is complete.
(2) No referendum is required for the imposition of a new fee
to comply with a judicial, legislative, or regulatory mandate first
applying after June 30, 1996, but before such a fee may be
imposed, the governing body of the imposing political subdivision
shall provide for a public hearing on the fee with at least thirty
days' advance notice to the public.
(3) No fee may be imposed that results in overlapping
impositions on the same payors for similar services or projects.
(4) No referendum is required for the governing body of a
political subdivision to impose a new fee to meet expenses incurred
by the political subdivision as a result of a natural disaster if the
causative event was certified a natural disaster by the Governor.
(E) The provisions of this section are cumulative to any other
provision of law limiting the revenue raising power of political
subdivisions of this State and the provisions of this section may not
be construed to amend or repeal any existing provision of law
limiting the revenue raising power to the extent those limitations are
more restrictive than the provisions of this section."
PART VI
Effective Date
SECTION 1. The following provisions of this section take effect
upon approval by the Governor or as otherwise provided:
Part I,
Part II, Section 6
Part IV.
The remaining provisions of this section take effect July 1, 1996, or
as otherwise provided but only upon the certification of the State
Election Commission to the Code Commissioner and the
Department of Revenue and Taxation of a majority
"yes" vote in the referendum provided by this section.
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