H 3397 Session 112 (1997-1998)
H 3397 General Bill, By Wilkins, Allison, Barrett, Bauer, H. Brown, Cato,
Chellis, Cooper, Cotty, J.L.M. Cromer, Dantzler, Davenport, Delleney, Easterday,
Edge, Fleming, Harrell, Harrison, Haskins, Hinson, B.L. Jordan, Keegan, Kelley,
Kirsh, Klauber, Knotts, Lanford, Law, L.H. Limbaugh, Littlejohn, Loftis, Mason,
J.D. McMaster, Meacham, Quinn, Rice, Riser, Robinson, Sandifer, Seithel, Sharpe,
Simrill, D. Smith, R. Smith, Tripp, Trotter, Vaughn, Walker, Whatley and
Young-Brickell
A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS
4-9-142, 5-21-70, 6-1-60, 6-1-85, AND 59-73-35, SO AS TO LIMIT THE REVENUE
RAISING AUTHORITY OF MUNICIPALITIES, COUNTIES, SPECIAL PURPOSE AND PUBLIC
SERVICE DISTRICTS, AND SCHOOL DISTRICTS, INCLUDING A PROHIBITION ON REAL
ESTATE TRANSFER FEES AND TAXES, AND TO PROVIDE EXCEPTIONS; TO AMEND SECTIONS
4-9-30, AS AMENDED, AND 5-7-30, AS AMENDED, RELATING TO THE POWERS OF COUNTY
AND MUNICIPAL GOVERNMENTS, SO AS TO PROVIDE THE USES FOR THE IMPOSITION OF
UNIFORM SERVICE CHARGES AND THE CREDITING OF CHARGE REVENUE, AND TO PROVIDE
FOR THE SEVERANCE OF OTHER PARTS OF THIS ACT IF ANY PORTION OF IT IS HELD
UNCONSTITUTIONAL, INVALID, OR OTHERWISE INEFFECTIVE.
02/05/97 House Introduced and read first time HJ-43
02/05/97 House Referred to Committee on Judiciary HJ-44
03/19/97 House Committee report: Favorable with amendment
Judiciary HJ-13
03/20/97 House Requests for debate-Rep(s). Limbaugh, Harrison &
Simrill HJ-8
03/25/97 House Requests for debate-Rep(s). Trotter, Sandifer,
Cooper, Riser, Barrett, Easterday & Leach HJ-10
04/01/97 House Amended HJ-41
04/01/97 House Read second time HJ-79
04/01/97 House Roll call Yeas-104 Nays-11 HJ-79
04/02/97 House Read third time and sent to Senate HJ-84
04/03/97 Senate Introduced and read first time SJ-6
04/03/97 Senate Referred to Committee on Finance SJ-6
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 1, 1997
H. 3397
Introduced by Reps. Wilkins, D. Smith, Limbaugh, Haskins,
Robinson, Cato, Knotts, Harrison, Loftis, Delleney, Davenport,
Vaughn, Easterday, Young-Brickell, Cotty, McMaster, Fleming,
Harrell, Allison, Law, Riser, Mason, Simrill, Cooper, Barrett,
H. Brown, Sandifer, Rice, Hinson, Sharpe, Seithel, R. Smith, Kelley,
Chellis, Klauber, Cromer, Dantzler, Meacham, Keegan, Trotter,
Tripp, Lanford, Whatley, Littlejohn, Edge, Quinn, Kirsh, Bauer,
Jordan and Walker
S. Printed 4/1/97--H.
Read the first time February 5, 1997.
STATEMENT OF ESTIMATED FISCAL
IMPACT
1. Estimated Cost to State-First Year
$Minimal/Costs Can Be Absorbed
2. Estimated Cost to State-Annually Thereafter
$Minimal/Costs Can Be Absorbed
The Budget & Control Board states that any costs associated
with the legislation would be minimal and could be absorbed by the
agency.
The Department of Revenue states that the additional administrative
cost will be offset by the revenue retained by the agency for such
purposes.
The Office of State Treasurer states that any costs associated with
the legislation would be minimal and could be absorbed by the
agency.
This bill would have no direct impact on county expenditures.
Approved By:
Michael L. Shealy
Office of State Budget
A BILL
TO AMEND SECTION 4-9-55, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO LIMITATIONS ON
STATE-IMPOSED MANDATES ON A COUNTY, SO AS TO
DELETE EXEMPTIONS FOR APPROPRIATIONS BILLS, TO
DESIGNATE SECTIONS 4-10-10 THROUGH 4-10-100 AS
ARTICLE 1, CHAPTER 10 OF TITLE 4, ENTITLED "LOCAL
OPTION SALES TAX"; TO AMEND CHAPTER 10, TITLE 4,
RELATING TO LOCAL TAXES, BY ADDING ARTICLE 3
ENACTING THE CAPITAL PROJECT SALES TAX ACT AND
PROVIDING FOR THE PURPOSES OF RATE AND METHOD OF
IMPOSITION OF THIS TAX, TO DESIGNATE SECTIONS 6-1-10
THROUGH 6-1-110 AS ARTICLE 1, CHAPTER 1 OF TITLE 6,
ENTITLED "GENERAL PROVISIONS"; TO AMEND SECTION
6-1-70, RELATING TO THE REQUIREMENTS THAT LOCAL
GOVERNMENTS REMIT LOCALLY IMPOSED REAL ESTATE
TRANSFER FEES TO THE STATE TREASURER, SO AS TO
PROHIBIT THE IMPOSITION OF REAL ESTATE TRANSFER
TAXES OR FEES BY ALL POLITICAL SUBDIVISIONS
INCLUDING SCHOOL DISTRICTS, UNLESS SPECIFICALLY
AUTHORIZED BY LAW; TO AMEND THE 1976 CODE BY
ADDING SECTION 6-1-85 SO AS TO REQUIRE A TAX
INCIDENCE STATEMENT TO ANY BILL OR RESOLUTION
POTENTIALLY SHIFTING THE INCIDENCE OF A TAX; TO
AMEND CHAPTER 1, TITLE 6, RELATING TO PROVISIONS
APPLICABLE TO VARIOUS LOCAL UNITS OF
GOVERNMENT, BY ADDING ARTICLES 3, 5, AND 7 SO AS TO
LIMIT THE REVENUE RAISING AUTHORITY OF LOCAL
GOVERNMENTS AND PROVIDE EXCEPTIONS, AND
AUTHORIZING LOCAL ACCOMMODATIONS AND
HOSPITALITY TAXES AND PROVIDING FOR THE PURPOSES,
RATES OF, AND METHOD OF IMPOSITION OF THESE
TAXES.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Sections 4-10-10 through 4-10-100 of the 1976 Code
are designated as Article 1, Chapter 10 of Title 4, entitled "Local
Option Sales Tax."
SECTION 2. Chapter 10, Title 4 of the 1976 Code is amended by
adding:
"Article 3
Capital Project Sales Tax Act
Section 4-10-300. This article may be cited as the 'Capital Project
Sales Tax Act'.
Section 4-10-310. Subject to the requirements of this article, the
county governing body may impose a one percent sales and use tax
by ordinance, subject to a referendum, within the county area for a
specific purpose or purposes and for a limited amount of time to
collect a limited amount of money. The revenues collected pursuant
to this article may be used to defray debt service on bonds issued to
pay for projects authorized in this article. However, at no time may
any portion of the county area be subject to more than one percent
sales tax levied pursuant to this article, pursuant to Chapter 37 of
Title 4, or pursuant to any local law enacted by the General
Assembly.
Section 4-10-320. (A) The governing body of any county is
authorized to create a commission subject to the provisions of this
section. The commission consists of six members, all of whom must
be residents of the county, appointed as follows:
(1) The governing body of the county must appoint three
members of the commission.
(2) The municipalities in the county must appoint three
members, who must be residents of incorporated municipalities
within the county, and who are selected according to the following
mechanism:
(a) The total population of all incorporated municipalities
within the county, as determined by the most recent United States
census, must be divided by three, the result being an apportionate
average.
(b) The respective population of each municipality in the
county must be divided by the apportionate average to determine an
appointive index.
(c) Each municipality in the county appoints a number of
members to the commission equal to the whole number indicated by
their appointive index. However, no single municipality may appoint
more than two members to the commission; unless there is only one
municipality in the county, and in such case the municipality is
entitled to three appointments to the commission.
(d) When less than three members are selected to the
commission in accordance with the prescribed appointive index
method, the remaining member or members must be selected in a
joint meeting of the commission appointees of the municipalities in
the county. The member or members must be chosen from among the
residents of the municipalities in the county that before this time have
not provided a representative for the commission.
(e) In the event no municipality is entitled to appoint a
member to the commission pursuant to the formula in subitem (c) of
this subsection, the municipality with the highest appointive index
must be deemed to have an appointive index of one.
(B) When the governing body of any county creates a commission,
it must be created in accordance with the procedures specified in
subsection (A) and only upon the request of the governing body of
the county. If within the thirty-day period following the adoption of
a resolution to create the commission, one or more of the
municipalities fails or refuses to appoint their proportionate number
of members to the commission, the county governing body must
appoint an additional number of members equal to the number that
any such municipality is entitled to appoint. A vacancy on the
commission must be filled in the manner of the original appointment.
(C) The commission created pursuant to this section must consider
proposals for funding capital projects within the county area. The
commission then formulates the referendum question that is to appear
on the ballot pursuant to Section 4-10-330(D).
Section 4-10-330. (A) The sales and use tax authorized by this
article is imposed by an enacting ordinance of the county governing
body containing the ballot question formulated by the commission
pursuant to subsection 4-10-320(C), subject to referendum approval
in the affected area. The ordinance must specify:
(1) the purpose for which the proceeds of the tax are to be used,
which may include projects located within or without, or both within
and without, the boundaries of the local governmental entities,
including the county and municipalities located in the county area,
and may include the following types of projects:
(a) highways, roads, streets, and bridges;
(b) courthouses, administration buildings, civic centers,
hospitals, emergency medical facilities, police stations, fire stations,
jails, correctional facilities, detention facilities, libraries, coliseums,
or any combination of these projects;
(c) cultural, recreational, or historic facilities, or any
combination of these facilities;
(d) water, sewer, or water and sewer projects;
(e) flood control projects and storm water management
facilities;
(f) jointly operated projects of the county, a municipality and
school district, or any combination of those entities, for the projects
delineated in subitems (a) through (e) of this subsection;
(g) any combination of the projects described in subitems (a)
through (f) of this item;
(2) the maximum time, stated in terms of calendar or fiscal years
or quarters, or a combination thereof, not to exceed seven years from
the date of imposition, for which the tax may be imposed;
(3) the maximum cost of the project or facilities funded from
proceeds of the tax and the maximum amount of net proceeds to be
raised by the tax; and
(4) any other condition precedent, as determined by the
commission, to the imposition of the sales and use tax authorized by
this article or condition or restriction on the use of sales and use tax
revenue collected pursuant to this article.
(B) When the tax authorized by this article is imposed for more
than one purpose, the enacting ordinance must set forth the priority
in which the net proceeds are to be expended for the purposes stated.
The enacting ordinance may set forth a formula or system by which
multiple projects are funded simultaneously.
(C) Upon receipt of the ordinance, the county election commission
must conduct a referendum on the question of imposing the sales and
use tax in the county area. The referendum must be held only on the
Tuesday following the first Monday in November in general election
years. Two weeks before the referendum the election commission
must publish in a newspaper of general circulation the question that
is to appear on the ballot, with the list of projects and the cost of the
projects. This notice is in lieu of any other notice otherwise required
by law.
(D) The referendum question to be on the ballot must read
substantially as follows:
'Must a special one percent sales and use tax be imposed in
(county) for not more than (time) to raise the
amounts specified for the following purposes?
(1) $______ for _________
(2) $______ for _________
(3) etc.
Yes []
No []'
(E) All qualified electors desiring to vote in favor of imposing the
tax for the stated purposes shall vote 'yes' and all qualified electors
opposed to levying the tax shall vote 'no'. If a majority of the votes
cast are in favor of imposing the tax, then the tax is imposed as
provided in this article and the enacting ordinance. The election
commission shall conduct the referendum under the election laws of
this State, mutatis mutandis, and shall certify the result no later than
December thirty-first to the county governing body and to the
Department of Revenue. Expenses of the referendum must be paid by
the governmental entities that would receive the proceeds of the tax
in the same proportion that those entities would receive the net
proceeds of the tax.
(F) Upon receipt of the returns of the referendum, the county
governing body must, by resolution, declare the results thereof. In
such event, the results of the referendum, as declared by resolution of
the county governing body, are not open to question except by a suit
or proceeding instituted within thirty days from the date such
resolution is adopted.
Section 4-10-340. (A) If the sales and use tax is approved in the
referendum, the tax is imposed on the first of May following the date
of the referendum. If the certification is not timely made to the
Department of Revenue, the imposition is postponed for twelve
months.
(B) The tax terminates on the earlier of:
(1) the final day of the maximum time period specified for the
imposition; or
(2) the end of the calendar month during which the Department
of Revenue determines that the tax has raised revenues sufficient to
provide the net proceeds equal to or greater than the amount specified
in the referendum question.
(C) Amounts collected in excess of the required net proceeds must
first be applied, if necessary, to complete a project for which the tax
was imposed; otherwise, the excess funds must be credited to the
general fund of the governmental entities receiving the proceeds of
the tax, in the proportion which they received the net proceeds of the
tax while it was imposed.
Section 4-10-350. (A) The tax levied pursuant to this article must
be administered and collected by the Department of Revenue in the
same manner that other sales and use taxes are collected. The
department may prescribe amounts that 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 sales in
the applicable area that is 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 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 must identify the county, municipality, or both, in which
the personal property purchased at retail is stored, used, or consumed
in this State.
(D) Utilities are required to report sales in the county,
municipality, or both, in which the 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 county,
municipality, or combination thereof, must report separately in his
sales tax return the total gross proceeds from business done in each
county or municipality.
(F) The gross proceeds of sales of tangible personal property
delivered after the imposition date of the tax levied under this article
in a county, 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 sales and use
tax provided in this article if a verified copy of the contract is filed
with the Department of Revenue within six months after the
imposition date of the sales and use tax provided for in this article.
(G) Notwithstanding the imposition date of the sales and use tax
authorized pursuant to this chapter, with respect to services that are
billed regularly on a monthly basis, the sales and use tax authorized
pursuant to this article is imposed beginning on the first day of the
billing period beginning on or after the imposition date.
Section 4-10-360. The revenues of the tax collected under this
article must be remitted to the Department of Revenue and placed on
deposit with the State Treasurer and credited to a fund separate and
distinct from the general fund of the State. After deducting the
amount of any refunds made and costs to the Department of Revenue
of administering the tax, not to exceed one percent of the revenues,
the State Treasurer shall distribute the revenues quarterly to the
county treasurer in the county area in which the tax is imposed and
the revenues must be used only for the purposes stated in the
imposition ordinance. The State Treasurer may correct misallocations
by adjusting subsequent distributions, but these adjustments must be
made in the same fiscal year as the misallocations.
Section 4-10-370. The Department of Revenue shall furnish data
to the State Treasurer and to the county treasurers receiving revenues
for the purpose of calculating distributions and estimating revenues.
The information that must be supplied to counties and municipalities
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 3. Sections 6-1-10 through 6-1-110 of the 1976 Code
are designated as Article 1, Chapter 1 of Title 6, entitled "General
Provisions."
SECTION 4. Section 6-1-70 of the 1976 Code, as added by Act
497 of 1994, is amended to read:
"Section 6-1-70. The governing body of each county
and, municipality, school district, or special
purpose district may not impose any fee or tax of any nature or
description on the transfer of real property unless the General
Assembly has expressly authorized by general law the imposition of
the fee or tax. Provided, however, that all other provisions of law
notwithstanding, local governmental entities having already levied,
collected, and spent such real property transfer fees or taxes for the
intended purpose of the fee or tax shall not be required to remit any
of those revenues to the State. which enacts and collects any
fee which is charged on the transfer of real estate shall, not later than
ten days after the close of a fiscal year quarter, remit to the State
Treasurer an amount equal to the amount of real estate transfer fees
collected in the previous fiscal year quarter. The county or
municipality may voluntarily elect to have the State Treasurer or
Comptroller General, as appropriate, deduct the amount required to
be remitted from any distributions authorized to be made to the
county or municipality under Aid to Subdivisions."
SECTION 5. Chapter 1, Title 6 of the 1976 Code is amended by
adding:
"Section 6-1-85. (A) The Budget and Control Board, Division of
Budget and Analyses, shall monitor and review the tax burden borne
by the classes of property listed in Article X, Section 1 of the State
Constitution. To determine the tax burden of each class of property,
the Division of Budget and Analyses may use a ratio that compares
total property taxes paid by the property class divided by the total fair
market value of the property class. The Department of Revenue shall
provide to the Division of Budget and Analyses the information on
assessed values and fair market values of properties as collected in
accordance with Section 59-20-20(3).
(B) The Budget and Control Board, Division of Budget and
Analyses, shall develop a methodology to determine and estimate tax
incidence. A tax incidence statement, prepared by the Division of
Budget and Analyses, must be attached to any bill or resolution that
has the potential to cause a shift in tax incidence. The tax incidence
refers to the ultimate payer of a tax.
(C) The Budget and Control Board, Division of Budget and
Analyses, may consult with outside experts with respect to fulfilling
the requirements of subsections (A) and (B) of this section.
(D) Reports of the Budget and Control Board, Division of Budget
and Analyses required under this section must be published and
reported to the Governor, the members of the Budget and Control
Board, the members of the General Assembly and made available to
the public."
SECTION 6. Chapter 1, Title 6 of the 1976 Code is amended by
adding:
"Article 3
Authority of Local Governments to Assess Taxes and
Fees
Section 6-1-300. As used in this article:
(1) 'Consumer price index' means the consumer price index for
all-urban consumers published by the U.S. Department of Labor. In
the event of a revision of the consumer price index, the index that is
most consistent with the consumer price index for all-urban
consumers as calculated in 1996 must be used.
(2) 'Intergovernmental transfer of funding responsibility' means
an act, resolution, court order, administrative order, or other action by
a higher level of government that requires a lower level of
government to use its own funds, personnel, facilities or equipment.
(3) 'Local governing body' means the governing body of a
county or municipality. As used in Section 6-1-320 only, local
governing body also refers to the body authorized by law to levy
school taxes.
(4) 'New tax' is a tax that the local governing body had not
enacted as of December 31, 1996.
(5) 'Positive majority' means a vote for adoption by the
majority of the members of the entire governing body, whether
present or not. However, if there is a vacancy in the membership of
the governing body, a positive majority vote of the entire governing
body as constituted on the date of the final vote on the imposition is
required.
(6) 'Service fee, user fee or uniform service charge' means a
charge required to be paid in return for a particular government
service or program made available to the payer that benefits the payer
in some manner different from the members of the general public not
paying the fee.
(7) 'Specifically authorized by the General Assembly' means an
express grant of power:
(a) in a prior act;
(b) in Article 3, Chapter 10 of Title 4, the 'Capital Project
Sales Tax Act'; Article 5, Chapter 1 of Title 6, the 'Local
Accommodations Tax Act', Article 7, Chapter 1 of Title 6, the 'Local
Hospitality Tax Act', and Section 10 of this act; or
(c) in a future act.
Section 6-1-310. A local governing body may not impose a new
tax after December 31, 1996, unless specifically authorized by the
General Assembly.
Section 6-1-315. By ordinance adopted by a positive majority
vote, a local governing body may impose a business license tax or
increase the rate of a business license tax, authorized by Sections
4-9-30(12) and 5-7-30.
Section 6-1-320. (A) Notwithstanding Section 12-37-251(E), a
local governing body may only increase the millage rate imposed for
general operating purposes above the rate imposed for such purposes
for the prior tax year to the extent of the increase in the consumer
price index for the preceding fiscal year. However, in the year in
which a reassessment program is implemented, the rollback millage,
as calculated pursuant to Section 12-37-251(E), must be used in lieu
of the previous year's millage rate.
(B) Notwithstanding the limitation upon millage rate increases
contained in subsection (A), the millage rate limitation may be
suspended and the millage rate may be increased for the following
purposes:
(1) in response to a natural, environmental or other disaster as
declared by the Governor;
(2) to offset a prior year's deficit, as required by Section 7,
Article X of the South Carolina Constitution;
(3) to raise the revenue necessary to comply with judicial
mandates requiring the use of county or municipal funds, personnel,
facilities, or equipment;
(4) to meet the minimum required local Education Finance Act
inflation factor as projected by the State Budget and Control Board,
Division of Research and Statistics, and the per pupil maintenance of
effort requirement of Section 59-21-1030, if applicable.
(C) The millage rate limitation provided for in subsection (A) of
this section may be overridden and the millage rate may be further
increased by a positive majority vote of the appropriate governing
body. The vote must be taken at a specially-called meeting held
solely for the purpose of taking a vote to increase the millage rate.
The governing body must provide public notice of the meeting
notifying the public that the governing body is meeting to vote to
override the limitation and increase the millage rate. Public comment
must be received by the governing body prior to the override vote.
(D) The restriction contained in this section does not affect millage
that is levied to pay bonded indebtedness or payments for real
property purchased using a lease-purchase agreement or used to
maintain a reserve account. Nothing in this section prohibits the use
of energy-saving performance contracts as provided in Section
48-52-670.
(E) The provisions of this section may not be construed to amend
or repeal any existing provision of law limiting the fiscal autonomy
of a governing body authorized to levy school taxes to the extent
those limitations are more restrictive than the provisions of this
section. For purposes of this section, the `governing body authorized
by law to levy school taxes' does not include the General Assembly.
(F) The positive majority vote of the governing body required by
this section does not apply to school districts that have their budget
approved by qualified electors at a town meeting.
Section 6-1-330. (A) A local governing body, by ordinance
approved by a positive majority, is authorized to charge and collect
a service fee, user fee or uniform service charge. A local governing
body must provide public notice of any new service fee, user fee, or
uniform service charge being considered and the governing body is
required to hold a public hearing on any proposed new service fee,
user fee, or uniform service charge prior to final adoption of any new
service fee, user fee, or uniform service charge. Public comment
must be received by the governing body prior to the final reading of
the ordinance to adopt a new service fee, user fee, or uniform service
charge. A fee adopted or imposed by a local governing body prior to
December 31, 1996, remains in force and effect until repealed by the
enacting local governing body, notwithstanding the provisions of this
section.
(B) The revenue derived from a service fee, user fee, or uniform
service charge imposed to finance the provision of public services
must be used to pay costs related to the provision of the service or
program for which the fee was paid. If the revenue generated by a fee
is five percent or more of the imposing entity's prior fiscal year's
total budget, the proceeds of the fee must be kept in a separate and
segregated fund from the general fund of the imposing governmental
entity.
(C) A local governing body may charge and collect a utility fee in
exchange for the provision of utility services. Notwithstanding
subsection (B), a local governing body that charges different rates for
customers outside its corporate boundaries from those rates charged
to customers inside its corporate boundaries may only transfer from
the utility fee fund to the general fund that portion of the annual
utility fee revenue that corresponds to the rate of return not to exceed
the current yield on a thirty-year, AAA municipal bond as determined
by the United States Department of the Treasury for the latest day
available prior to the end of the calendar year plus five percent. The
maximum amount that may be transferred on an annual basis from
the utility fee fund is calculated by multiplying net utility assets by
the aforementioned return.
(D) If a governmental entity proposes to adopt a service fee, user
fee, or uniform service charge to fund a service that was previously
funded by property tax revenue, the notice required pursuant to
Section 6-1-80 must include that fact in the text of the published
notice.
SECTION 7. Title 6, Chapter 1 of the 1976 Code is amended by
adding:
"Article 5
Local Accommodations Tax
Section 6-1-500. This article may be cited as the 'Local
Accommodations Tax Act'.
Section 6-1-510. As used in this article:
(1) 'Local accommodations tax' means a tax on the gross
proceeds derived from the rental or charges for accommodations
furnished to transients as provided in Section 12-36-920(A) and
which is imposed on every person engaged or continuing within the
jurisdiction of the imposing local governmental body in the business
of furnishing accommodations to transients for consideration.
(2) 'Local governing body' means the governing body of a
county or municipality.
(3) 'Positive majority' means a vote for adoption by the
majority of the members of the entire governing body, whether
present or not. However, if there is a vacancy in the membership of
the governing body, a positive majority vote of the entire governing
body as constituted on the date of the final vote on the imposition is
required.
Section 6-1-520. (A) A local governing body may impose, by
ordinance, a local accommodations tax, not to exceed three percent.
However, an ordinance imposing the local accommodations tax must
be adopted by a positive majority vote. The governing body of a
county may not impose a local accommodations tax in excess of one
and one-half percent within the boundaries of a municipality without
the consent, by resolution, of the appropriate municipal governing
body.
(B) All proceeds from a local accommodations tax must be kept in
a separate fund segregated from the imposing entity's general fund.
All interest generated by the local accommodations tax fund must be
credited to the local accommodations tax fund.
Section 6-1-530. (A) The revenue generated by the local
accommodations tax must be used exclusively for the following
purposes:
(1) tourism-related buildings, including, but not limited to, civic
centers, coliseums, and aquariums;
(2) cultural, recreational, or historic facilities;
(3) beach access and renourishment;
(4) highways, roads, streets, and bridges providing access to
tourist destinations;
(5) advertisements and promotions related to tourism
development; or
(6) water and sewer infrastructure to serve tourism-related
demand.
(B) In a county in which at least nine hundred thousand dollars in
accommodations taxes is collected annually pursuant to Section
12-36-920, the revenues of the local accommodations tax authorized
in this article also may be used for the operation and maintenance of
those items provided in (A)(1) through (6) including police, fire
protection, emergency medical services, and emergency-preparedness
operations directly attendant to those facilities.
Section 6-1-540. The cumulative rate of county and municipal
local accommodations taxes for any portion of the county area may
not exceed three percent, unless the cumulative total of such taxes
were in excess of three percent prior to December 31, 1996, in which
case the cumulative rate may not exceed the rate that was imposed as
of December 31, 1996.
Section 6-1-550. In an area of the county where the county has
imposed a local accommodations tax that is annexed by a
municipality, the municipality must receive only that portion of the
revenue generated in excess of the county local accommodations tax
revenue for the previous twelve months in the area annexed.
Section 6-1-560. Real estate agents, brokers, corporations, or
listing services required to remit taxes under this section must notify
the appropriate local governmental entity or entities if rental property,
previously listed by them, is dropped from their listings."
SECTION 8. Chapter 6, Title 1 of the 1976 Code is amended by
adding:
"Article 7
Local Hospitality Tax
Section 6-1-700. This article may be cited as the 'Local
Hospitality Tax Act'.
Section 6-1-710. As used in the article:
(1) 'Local governing body' means the governing body of a
county or municipality.
(2) 'Local hospitality tax' is a tax on the sales of prepared meals
and beverages sold in establishments or sales of prepared meals and
beverages sold in establishments licensed for on-premises
consumption of alcoholic beverages, beer, or wine.
(3) 'Positive majority' means a vote for adoption by the
majority of the members of the entire governing body, whether
present or not. However, if there is a vacancy in the membership of
the governing body, a positive majority vote of the entire governing
body as constituted on the date of the final vote on the imposition is
required.
Section 6-1-720. (A) A local governing body may impose, by
ordinance, a local hospitality tax not to exceed two percent of the
charges for food and beverages. However, an ordinance imposing the
local hospitality tax must be adopted by a positive majority vote. The
governing body of a county may not impose a local hospitality tax in
excess of one percent within the boundaries of a municipality without
the consent, by resolution, of the appropriate municipal governing
body.
(B) All proceeds from a local hospitality tax must be kept in a
separate fund segregated from the imposing entity's general fund. All
interest generated by the local hospitality tax fund must be credited
to the local hospitality tax fund.
Section 6-1-730. (A) The revenue generated by the hospitality
tax must be used exclusively for the following purposes:
(1) tourism-related buildings, including, but not limited to, civic
centers, coliseums, and aquariums;
(2) cultural, recreational, or historic facilities;
(3) beach access and renourishment;
(4) highways, roads, streets, and bridges providing access to
tourist destinations;
(5) advertisements and promotions related to tourism
development; or
(6) water and sewer infrastructure to serve tourism-related
demand.
(B) In a county in which at least nine hundred thousand dollars in
accommodations taxes is collected annually pursuant to Section
12-36-920, the revenues of the hospitality tax authorized in this
article also may be used for the operation and maintenance of those
items provided in (A)(1) through (6) including police, fire protection,
emergency medical services, and emergency-preparedness operations
directly attendant to those facilities.
Section 6-1-740. The cumulative rate of county and municipal
hospitality taxes for any portion of the county area may not exceed
two percent, unless the cumulative total of such taxes were in excess
of two percent or authorized to be in excess of two percent prior to
December 31, 1996, in which case the cumulative rate may not
exceed the rate that was imposed or passed by ordinance as of
December 31, 1996.
Section 6-1-750. In an area of the county where the county has
imposed a local hospitality tax that is annexed by a municipality, the
municipality must receive only that portion of the revenue generated
in excess of the county local hospitality tax revenue for the previous
twelve months in the area annexed."
SECTION 9. Notwithstanding any provision of this act, any
ordinance enacted by a county or municipality prior to March 15,
1997, imposing an accommodations fee which does not exceed the
three percent maximum cumulative rate prescribed in Section
6-1-540, is calculated upon a base consistent with Section 6-1-510(1),
and the revenue from which is used for the purposes enumerated in
Section 6-1-530, remains authorized and effective after the effective
date of this act and the enacting county or municipality is authorized
to issue bonds, pursuant to Article X, Section14(10) of the
Constitution of this State, utilizing the procedures of Section 4-29-68,
for the purposes enumerated in Section 6-1-530, and to retire such
debt using the proceeds of such an accommodations fee ordinance
and the pledge of such other non-tax revenues as may be available for
those purposes."
SECTION 10. Upon approval by the Governor, this act takes effect
July 1, 1997, except as otherwise provided.
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