H 4951 Session 112 (1997-1998)
H 4951 General Bill, By Vaughn and Allison
A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5
IN CHAPTER 10 OF TITLE 4, RELATING TO LOCAL SALES AND USE TAXES, ENACTING THE
DIVIDED MUNICIPALITY SALES TAX ACT, SO AS TO AUTHORIZE THE IMPOSITION BY
REFERENDUM APPROVAL OF A ONE PERCENT SALES AND USE TAX IN A MUNICIPALITY
LOCATED IN MORE THAN ONE COUNTY, TO PROVIDE FOR THESE CIRCUMSTANCES RESULTING
IN RESCINDING THE TAX, AND TO REQUIRE THE TAX REVENUE TO BE USED TO REDUCE
MUNICIPAL PROPERTY TAXES AND FOR MUNICIPAL GOVERNMENT PURPOSES.
04/02/98 House Introduced and read first time HJ-6
04/02/98 House Referred to Committee on Ways and Means HJ-6
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING ARTICLE 5 IN CHAPTER 10 OF TITLE 4,
RELATING TO LOCAL SALES AND USE TAXES, ENACTING
THE DIVIDED MUNICIPALITY SALES TAX ACT, SO AS TO
AUTHORIZE THE IMPOSITION BY REFERENDUM
APPROVAL OF A ONE PERCENT SALES AND USE TAX IN A
MUNICIPALITY LOCATED IN MORE THAN ONE COUNTY,
TO PROVIDE FOR THESE CIRCUMSTANCES RESULTING IN
RESCINDING THE TAX, AND TO REQUIRE THE TAX
REVENUE TO BE USED TO REDUCE MUNICIPAL PROPERTY
TAXES AND FOR MUNICIPAL GOVERNMENT PURPOSES.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Chapter 10, Title 4 of the 1976 Code is amended by
adding:
"Article 5
Divided Municipality Sales Tax Act
Section 4-10-510. This article may be cited as the 'Divided
Municipality Sales Tax Act'.
Section 4-10-520. As used in this article, a municipality is a
municipal corporation created pursuant to Chapter 1 of Title 5, the
corporate limits of which include territory in more than one county.
Section 4-10-530. Subject to the requirements of this article, the
municipal council may impose a one percent sales and use tax by
ordinance, subject to referendum approval. The tax may be imposed
in that portion of the municipality not subject to the tax imposed
pursuant to Article 1 of this chapter.
Section 4-10-540. (A) The sales and use tax authorized by this
article is imposed by an enacting ordinance of the municipal council.
(B) Upon receipt of the ordinance, the municipal election
commission shall conduct a referendum on the question of imposing
the municipal sales and use tax. A referendum for this purpose must
be held at the time of the general election. Two weeks before the
referendum the election commission shall publish in a newspaper of
general circulation the question that is to appear on the ballot. This
notice is in lieu of any other notice otherwise required by law.
(C) The referendum question to be on the ballot must read
substantially as follows:
'Must a one percent sales and use tax be imposed
in (municipality) for municipal property
tax relief and to provide additional revenues for municipal purposes?
Yes []
No []'
(D) All qualified electors desiring to vote in favor of imposing the
tax shall vote 'Yes' and all qualified electors opposed to imposing 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.
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 municipal governing
body and to the Department of Revenue.
(E) Upon receipt of the returns of the referendum, the municipal
council, by resolution, shall declare the results thereof. The results
of the referendum may not be questioned except by a suit or
proceeding instituted within thirty days from the date the resolution
is adopted.
Section 4-10-550. If the sales and use tax is approved in the
referendum, the tax is imposed on the first of April 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.
Section 4-10-560. (A) Upon petition of at least fifteen percent of
the qualified electors of a municipality presented to the municipal
council of the municipality which has implemented the one percent
sales and use tax authorized by this article requesting that this tax be
rescinded, the council shall direct the municipal election commission
to conduct a referendum on the question of rescinding the municipal
sales and use tax. A referendum for this purpose must be held on the
Tuesday following the first Monday in November following
verification of the petition. Two weeks before the referendum the
election commission shall publish in a newspaper of general
circulation the question that is to appear on the ballot. This notice is
in lieu of any other notice otherwise required by law.
(B) The referendum question to be on the ballot must read
substantially as follows:
'Must the one percent municipal sales and use tax imposed in
be rescinded?
Yes []
No []'
(C)(1) All qualified electors desiring to vote in favor of rescinding
the tax shall vote 'Yes' and all qualified electors opposed to
rescinding the tax shall vote 'No'. If a majority of the votes cast are
in favor of rescinding the tax, then the tax is rescinded effective April
first following the referendum. 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 municipal council. If a majority 'Yes' vote is
certified, it must be certified to the Department of Revenue by the
same date.
(2) Upon receipt of the return of the referendum, the municipal
council shall declare the results thereof by resolution. The results of
the referendum may not be questioned except by a suit or proceeding
instituted within thirty days from the date the resolution is adopted.
(D) A referendum for rescission of this tax may not be held
earlier than two years after the tax has been imposed in the
municipality. If a majority of the qualified electors voting in the
rescission referendum vote against rescinding the tax, no further
rescission referendums may be held for a period of two years. If a
majority of the qualified electors vote in favor of rescinding the tax,
the tax may not be reimposed in the municipality for a period of two
years. The petition requesting rescission must be presented to the
municipal governing body at least one hundred twenty days before
the Tuesday following the first Monday of November of that year or
the referendum must be held on the Tuesday following the first
Monday of November of the following year.
(E) The municipal council may rescind the tax by ordinance
effective with the first day of the third month following the month in
which the rescission ordinance is enacted.
(F) When the tax allowed pursuant to Article 1 of this chapter is
imposed in a part of a municipality imposing the tax allowed by this
article, the tax imposed by this article is rescinded in the portion of
the municipality located in the county in which the tax allowed
pursuant to Article 1 of this chapter is imposed effective on the
imposition date of the other tax. Notwithstanding the allocation of
local sales and use tax revenues provided in Article 1, Chapter 4 of
this title, or any county ordinance applicable to such allocation, credit
against municipal taxes in the portion of the municipality subject to
the county sales and use tax must not exceed the credit allowed
pursuant to the municipal ordinance implementing this article and
revenue allocated to the municipality under the county sales and use
tax must not be less than amounts distributed to the municipality
pursuant to the municipal ordinance implementing this article.
Section 4-10-570. (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 shall identify the municipality in which the personal
property purchased at retail is stored, used, or consumed in this State.
(D) Utilities shall report sales in the municipality 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 municipality
shall report separately in his sales tax return the total gross proceeds
from business done in each 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 municipality, 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 4-10-580. (A) 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
municipality in which the tax is imposed. The State Treasurer may
correct misallocations by adjusting subsequent distributions, but these
adjustments must be made in the same fiscal year as the
misallocations.
(B) At least seventy-one percent of the revenue of this tax must be
used to reduce municipal tax millage in the manner that the municipal
council determines. The balance may be used for municipal purposes
as the council determines. If the percentage required for tax
reduction is more than sufficient to eliminate municipal tax millage,
excess amounts must be used for municipal purposes. The reduction
required by this section applies only to property located in the portion
of the municipality in which the tax allowed by this article is
imposed.
Section 4-10-590. The Department of Revenue shall furnish data
to the State Treasurer and to the municipalities receiving revenues for
the purpose of calculating distributions and estimating revenues. The
information that must be supplied to 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 2. This act takes effect upon approval by the Governor.
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