S 1362 Session 110 (1993-1994)
S 1362 General Bill, By Peeler
Similar(H 5088)
A Bill to amend Chapter 71, Title 59, Code of Laws of South Carolina, 1976,
relating to school bonds, by adding Article 2 so as to enact the School
Bond-Property Tax Relief Act.
04/14/94 Senate Introduced and read first time SJ-11
04/14/94 Senate Referred to Committee on Finance SJ-11
A BILL
TO AMEND CHAPTER 71, TITLE 59, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO SCHOOL BONDS, BY
ADDING ARTICLE 2 SO AS TO ENACT THE SCHOOL BOND-PROPERTY TAX RELIEF ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 59, Chapter 71, is amended by adding:
"Article 2
The School Bond-Property Tax Relief Act
Section 59-71-210. This article may be cited as the School Bond-Property Tax Relief Act.
Section 59-71-220. Subject to the requirements of this article, the
governing body of a school district may by resolution impose a one
percent sales and use tax within its jurisdiction for a specific purpose
and for a specified period of time to collect funds to be used to pay
debt service on general obligation bonds issued pursuant to Article 1
of this chapter (School Bond Act).
Section 59-71-230. (A)(1) The governing body of a school district
may vote to impose the tax authorized by this article, subject to a
referendum, by enacting a resolution. The resolution must specify:
(a) the improvements to be financed through the issuance of
general obligation bonds of the school district together with the
imposition of the tax;
(b) the maximum time, stated in calendar years or calendar
quarters, or a combination of them, not to exceed twenty years, for
which the tax may be imposed; and
(c) the maximum principal amount of general obligation
bonds to be issued and repaid with proceeds of the tax.
(2) The findings provided in item (1) may be incorporated
within a resolution of the governing body of the school district calling
for a referendum upon the question of the issuance of general
obligation bonds pursuant to Article 1 of this chapter if the proposed
tax will be applied to payment of debt service upon the bonds.
(B) Upon receipt of the resolution, the election commission or
commissions for the county or counties in which the school district is
located shall conduct a referendum on the question of imposing the
optional special sales and use tax in the school district. Notice of the
election must be provided in the manner provided by the general
election law and include the question to be voted upon in the
referendum. In addition, if the question of the issuance of general
obligation bonds is to also be voted upon in the referendum,
publication of notice of the referendum must also be given in
compliance with Article 1 of this chapter. Expenses of the referendum
must be paid by the jurisdiction conducting the referendum.
(C) The question to be voted upon in the referendum shall read
substantially as follows:
`Must a special one percent sales and use tax be imposed in
(name of school district) for not more than (number of
years) in order to raise funds which will be applied to pay debt
service on general obligation bonds issued to defray the cost of
(identify improvements)?'
Yes []
No []
The ballot may, in the discretion of the governing body of the
school district, contain a short explanation of the question to be voted
upon in this referendum.
(D) All qualified electors desiring to vote in favor of imposing the
tax for a particular purpose shall vote `yes' and all qualified electors
opposed to levying the tax for the particular purpose shall vote `no'.
Upon receipt of the returns of the referendum, the election commission
shall, by resolution, declare the results of it and shall file the
resolution with the clerk of court for the county or counties in which
the school district is located. The resolution shall also be filed with
the South Carolina Department of Revenue and Taxation. The results
of the referendum, as declared by resolution of the election
commission or commission and as filed with said Clerk of Court, is
not open to question except by a civil action instituted within twenty
days of the filing of it. If a majority of the votes cast are in favor of
imposing the tax, then the tax is imposed as provided in this article;
otherwise the tax is not imposed. A referendum on imposition of the
tax authorized in this article may not be held more than once in a
period of twelve consecutive months.
Section 59-71-240. (A) If the tax is approved in the referendum,
the tax must be imposed beginning upon the first day of the third full
month following the filing of the declaration of results of the
referendum with the Department of Revenue and Taxation.
(B) The tax terminates:
(1) on the final day of the maximum time specified for the
imposition; or
(2) if earlier, but not if later, upon payment of the final
maturing installments of principal of the bonds to which application
of the tax is authorized, or upon payment of the final maturing
installments of principal of general obligation bonds issued to refund
the bonds.
(C) When the optional sales and use tax is imposed for more than
one purpose, the governing body of the school district authorizing the
referendum for the tax shall determine the priority for the expenditure
of the net proceeds of the tax for the purposes stated in the
referendum.
Section 59-71-250. (A) The tax levied pursuant to this article must
be administered and collected by the Department of Revenue and
Taxation in the same manner that other sales and use taxes are
collected. The department may prescribe the amounts which may be
added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other
local sales and use taxes and applies to the gross proceeds of the sales
in the applicable jurisdiction which are subject to the tax imposed by
Chapter 36 of Title 12 and the enforcement provisions of Chapter 54
of Title 12. The gross proceeds of the sale of items subject to a
maximum tax in Chapter 36 of Title 12 are exempt from the tax
imposed by this article. The gross proceeds of the sale of food which
may lawfully be purchased with United States Department of
Agriculture food stamps are exempt from the tax imposed by this
article. The tax imposed by this article also applies to tangible
personal property subject to the use tax in Article 13, Chapter 36, of
Title 12.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36
of Title 12 shall identify the school district in which the tangible
personal property purchased at retail is stored, used or consumed in
this State.
(D) Utilities are required to report sales in the school district in
which consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920,
who owns or manages rental units in more than one school district
shall separately report in his sales tax return the total gross proceeds
from business done in each school district.
(F) The gross proceeds of sales of tangible personal property
delivered after the imposition date of the tax levied under this article
in a school district, either under the terms of a construction contract
executed before the imposition date, or a written bid submitted before
the imposition date, culminating in a construction contract entered into
before or after the imposition date, are exempt from the special local
sales and use tax provided in this section if a verified copy of the
contract is filed with the Department of Revenue and Taxation within
six months after the imposition of the special local sales and use tax.
(G) Notwithstanding the imposition date of the special local sales
and use tax authorized pursuant to this article, with respect to services
that are regularly billed on a monthly basis, the special local sales and
use tax is imposed beginning on the first day of the billing period
beginning on or after the imposition date.
Section 59-71-260. (A) The revenues of the tax collected in each
school district under this article must be remitted to the State
Treasurer and credited to a fund separate and distinct from the general
fund of the State. After deducting the amount of refunds made and
costs to the Department of Revenue and Taxation of administering the
tax, not to exceed one percent of the revenues, the State Treasurer
shall distribute the revenues quarterly to the county treasurer who
holds the debt service funds established for payment of principal and
interest on the bonds to which the tax is applicable. The State
Treasurer may correct misallocation costs or refunds by adjusting
subsequent distributions, but these adjustments must be made in the
same fiscal year as the misallocation.
(B) A county treasurer holding taxes collected pursuant to this
article must certify to the auditor of the county on July fifteenth of
each calendar year as to the amount of taxes held by that county
treasurer as of June thirtieth of the calendar year. The county auditor
shall reduce the next levy of ad valorem property taxes required to pay
debt service on bonds to which the tax is applicable by the amount of
tax revenues certified as collected as of June thirtieth by the county
treasurer. Taxes collected as of June thirtieth of a calendar year in
excess of the amounts required to pay debt service due in the eighteen
months following the June thirtieth on bonds to which the tax is
applicable must be applied to reduce the next levy of ad valorem
property taxes required for payment of operational and maintenance
expenses of the school district.
Section 59-71-270. The Department of Revenue and Taxation shall
furnish data to the State Treasurer and to the school districts receiving
tax revenues pursuant to this article for the purpose of calculating
distributions and estimating revenues. The information which must be
supplied to school districts upon request includes, but is not limited to,
gross receipts, net taxable sales, and tax liability by taxpayers.
Information about a specific taxpayer is considered confidential and
is governed by the provisions of Section 12-54-240. A person
violating this section is subject to the penalties provided in Section 12-54-240."
SECTION 2. This act takes effect upon approval by the Governor.
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