H 4439 General Bill, By Ott, Agnew, Jefferson, G.A. Brown, Williams, J.E. Smith, 
Cobb-Hunter, Vick, King, Harvin, Dillard, Clyburn, Knight, J.H. Neal, Bales, 
Anthony, Gunn, McLeod, Jennings, Hutto, Kennedy, Funderburk, Alexander, Battle, 
Branham, H.B. Brown, R.L. Brown, Govan, Hart, Hayes, Hodges, J.M. Neal and 
Weeks
 A BILL TO AMEND ACT 81 OF 2009, RELATING TO THE SOUTH CAROLINA TAXATION
 REALIGNMENT COMMISSION, SO AS TO EXTEND THE DATE ON WHICH THE COMMISSION MUST
 CONCLUDE ITS BUSINESS, EXTEND THE DATE WHEN THE COMMISSION'S PRINCIPAL REPORT
 IS DUE, AND TO EXPAND THE SCOPE OF THE COMMISSION'S STUDY TO INCLUDE A REVIEW
 OF ALL TAXES IMPOSED IN THIS STATE.

   01/27/10  House  Introduced and read first time HJ-30
   01/27/10  House  Referred to Committee on Ways and Means HJ-30

TO AMEND ACT 81 OF 2009, RELATING TO THE SOUTH CAROLINA TAXATION REALIGNMENT COMMISSION, SO AS TO EXTEND THE DATE ON WHICH THE COMMISSION MUST CONCLUDE ITS BUSINESS, EXTEND THE DATE WHEN THE COMMISSION'S PRINCIPAL REPORT IS DUE, AND TO EXPAND THE SCOPE OF THE COMMISSION'S STUDY TO INCLUDE A REVIEW OF ALL TAXES IMPOSED IN THIS STATE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Subsections (B) and (C) of Act 81 of 2009 are amended to read:

"(B)    The members of the commission:

(1)    must meet as soon as practicable after appointment and organize itself by electing one of its members as chairman and other officers as the commission may consider necessary. Thereafter, the commission must meet as necessary to fulfill the duties required by this act at the call of the chairman or by a majority of the members. A quorum consists of six members. The commission may engage or employ staff or consultants as may be necessary and prudent to assist the commission in the performance of its duties and responsibilities. Any staff or consultants must possess an academic background or substantial career experience in one or more fields including, but not limited to, economics, government budgeting and administration, urban and regional economic development, economic forecasting, state and local public finance, or business;

(2)    shall serve without compensation, and are ineligible for the usual mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions. Staffs of the Senate Finance Committee and the House Ways and Means Committee shall be available to assist the commission in its work. Any other expenses incurred by the commission shall be paid equally from each respective house's approved account subject to the approval of the Senate Operations and Management Committee and the Speaker of the House;

(3)    unless authorized by a further or subsequent enactment, conclude the commission's business by January 1, 2011 2012, at which time the commission is dissolved. The General Assembly may extend the dates by which the commission shall submit reports required by this act.

(C)    The duties of the commission shall be to:

(1)    develop criteria for studying and conducting a review of all taxes imposed in this State at whatever level and for assessing the effectiveness of the current tax system structure, as well as the likely systemic impact of any proposed changes affecting tax revenues and report the criteria to the General Assembly within three months of the effective date of this act, provided that all such criteria must be designed with an emphasis on the systemic balance of the state's revenue structure from the standpoint of adequacy, equity, and efficiency and with the goal of maintaining and enhancing the State as an optimum competitor in efforts to attract businesses and individuals to locate, live, work, and invest in the State; and

(2)    no later than March 15, 2010 January 1, 2011, prepare and deliver a report and recommendation to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee, including the text of an amendment that effectuates the recommendations. The commission's report must be a detailed, comprehensive, and careful evaluation of the state's tax system structure. The commission's report shall consider:

(a)    sales and use tax exemptions or limitations to be retained, modified, or repealed;

(b)    the assessment of state and local taxes levied and other provisions affecting state and local revenue to fund the operation and responsibilities of state and local government, respectively; and

(c)    any fee, fine, license, forfeiture, or other funds.

After reviewing the adequacy, equity, and efficiency of the state's revenue structure, the commission's report may recommend that no changes are necessary if it determines that such findings are warranted. Following the report and recommendation required by subsection (C)(2), the commission shall continue studying the subjects identified in subsection (C)(2). The commission may make further legislative recommendations at any time. Also, the commission must submit a report to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee on August first and February first of each year detailing the commission's progress and points of focus.

For purposes of the scope of the commission's study, local taxes are defined as local levies related to ad valorem taxation, including, but not limited to, assessment ratios, classification and valuation of property, assessable transfers of interest, valuation limitation, local millages, and fee in lieu of taxes agreements; however, local taxes do not include the exemption of owner-occupied residential property as provided in Section 12-37-220(B)(47).

The commission's report may not recommend any action that would nullify any existing agreement entered into by a local government.

The commission must forward its recommendation to the Board of Economic Advisors that must prepare a revenue impact detailing the sources of revenue at the state and local level the commission recommends should be increased or decreased, the projected amount of increase or decrease to each source of revenue, and the net gain or loss of total revenue at both the state and local levels that would result from the recommendation. The report must be attached to any legislative recommendation made by the commission prior to it being submitted to any member of the General Assembly."

SECTION    2.    This act takes effect upon approval by the Governor.