H 4312 General Bill, By Koon, J.G. McAbee, M. McLeod and C.L. Sturkie
 A Bill to amend Section 12-43-260, Code of Laws of South Carolina, 1976,
 relating to the requirement that a portion of the State Aid to Subdivisions
 distribution be withheld from counties failing to adopt appropriate
 equalization and reassessment programs, so as to extend the requirement to
 municipalities, school districts, and other political subdivisions, and to
 update references; to amend Section 12-43-280, as amended, relating to the one
 percent limit on total property tax increase as a result of equalization and
 assessment, so as to revise the limit into a four percent maximum increase in
 the millage over the previous year's millage rate or a four percent maximum
 increase in the millage over the base millage rate in reassessment years, and
 to provide the method for calculating the base millage rate, to require the
 Tax Commission to monitor compliance with this limit and prohibit the levying
 of tax until the Commission certifies compliance, and require itemization of
 increases allowed above the base millage; and to repeal Section 12-43-290,
 relating to exemptions from the former one percent limit on tax collection
 increases attributable to reassessment.

   01/30/92  House  Introduced and read first time HJ-3
   01/30/92  House  Referred to Committee on Ways and Means HJ-4

A BILL

TO AMEND SECTION 12-43-260, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT A PORTION OF THE STATE AID TO SUBDIVISIONS DISTRIBUTION BE WITHHELD FROM COUNTIES FAILING TO ADOPT APPROPRIATE EQUALIZATION AND REASSESSMENT PROGRAMS, SO AS TO EXTEND THE REQUIREMENT TO MUNICIPALITIES, SCHOOL DISTRICTS, AND OTHER POLITICAL SUBDIVISIONS, AND TO UPDATE REFERENCES; TO AMEND SECTION 12-43-280, AS AMENDED, RELATING TO THE ONE PERCENT LIMIT ON TOTAL PROPERTY TAX INCREASE AS A RESULT OF EQUALIZATION AND ASSESSMENT, SO AS TO REVISE THE LIMIT INTO A FOUR PERCENT MAXIMUM INCREASE IN THE MILLAGE OVER THE PREVIOUS YEAR'S MILLAGE RATE OR A FOUR PERCENT MAXIMUM INCREASE IN THE MILLAGE OVER THE BASE MILLAGE RATE IN REASSESSMENT YEARS, AND TO PROVIDE THE METHOD FOR CALCULATING THE BASE MILLAGE RATE, TO REQUIRE THE TAX COMMISSION TO MONITOR COMPLIANCE WITH THIS LIMIT AND PROHIBIT THE LEVYING OF TAX UNTIL THE COMMISSION CERTIFIES COMPLIANCE, AND REQUIRE ITEMIZATION OF INCREASES ALLOWED ABOVE THE BASE MILLAGE; AND TO REPEAL SECTION 12-43-290, RELATING TO EXEMPTIONS FROM THE FORMER ONE PERCENT LIMIT ON TAX COLLECTION INCREASES ATTRIBUTABLE TO REASSESSMENT.

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

SECTION 1. Section 12-43-260 of the 1976 Code is amended to read:

"Section 12-43-260. Any A county, municipality, school district, or other political subdivision which wilfully fails to comply with the provisions of this article shall is not be entitled to twenty percent of the allocation to it under the State Aid to Subdivisions Act and all other state source funds distributed annually to these entities as provided by law, including but not limited to funds appropriated under the Education Finance Act and Education Improvement Act of the taxes as provided for in the General Appropriations Act for State Aid to Subdivisions. The Commission shall make application apply to the circuit court for a determination as to whether or not such the county entity meets the requirements of this article. The commission shall then, based on this determination, certify to the State Treasurer that such county the entity meets the requirements of this article before any tax an allocation is made to the county entity."

SECTION 2. Section 12-43-280 of the 1976 Code, as amended by Act 381 of 1988, is further amended to read:

"Section 12-43-280. Notwithstanding any other provisions of law, upon completion of an equalization and reassessment program as required by this article, the total ad valorem tax, for any county, school district, municipality or any other political subdivision, shall not exceed the total ad valorem tax of such county, school district, municipality or any other political subdivision for the year immediately prior to such completion by more than one percent, provided, such increase in total taxes was caused by the equalization and reassessment provided by this article. This shall not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not heretofore taxed, for new construction or for renovation of existing structures taking place during the reassessment period. On completion of an equalization and reassessment program required by this article, each county, municipality, school district, or other political subdivision shall compute a base millage rate. The base millage rate is computed by dividing the property tax collections of the entity for the tax year immediately preceding the year of reassessment by the total assessed value, including the reappraised values but not including the assessed value attributed to property or improvements not previously taxed for new construction, or for renovation of existing structures taking place during the reassessment period.

The base millage rate may be increased for the purpose of obtaining funds for increased or new services, or for the increased cost of existing services, provided for the taxpayers of the county, municipality, school district, or other political subdivision. The tax notice must include the base millage rate and a separate itemization of each increased or new service, or the increased cost of existing services and the resulting millage change for each. A base millage change is calculated on the total assessed value.

The commission shall review the computation of the base millage rate and other requirements of this section in each county, municipality, school district, or other political subdivision to insure compliance with the limitations imposed by this section.

No taxes may be imposed by a county, municipality, school district, or other political subdivision until the tax commission certifies compliance with all requirements of this section.

Increases in millage rates in any year may not exceed four percent of the total millage rate imposed for the immediately preceding tax year, or upon completion of a reassessment and equalization program an increase may not exceed four percent of the base millage rate as computed in this section."

SECTION 3. Section 12-43-290 of the 1976 Code is repealed.

SECTION 4. Upon approval by the Governor, this act is effective for tax years beginning after 1991.