S 0288 General Bill, By Bauer
 A BILL TO AMEND CHAPTER 36, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE SALES AND USE TAX BY ADDING ARTICLE 11 SO AS TO INCREASE THE
 STATE SALES AND USE TAX ON ITEMS NOT SUBJECT TO A MAXIMUM TAX FROM FIVE TO SIX
 PERCENT AND CREDIT THE REVENUE OF THIS TAX TO THE TRUST FUND FOR TAX RELIEF,
 TO AMEND SECTION 11-11-150, AS AMENDED, RELATING TO THE TRUST FUND FOR TAX
 RELIEF, SO AS TO REFLECT REVENUES FROM THE TAX ADDED BY THIS ACT, AND TO AMEND
 SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO
 EXEMPT FROM PROPERTY TAX ALL FAIR MARKET OF OWNER-OCCUPIED RESIDENTIAL
 PROPERTY OTHERWISE SUBJECT TO TAX, TO REIMBURSE LOCAL TAXING ENTITIES FOR THE
 REVENUE NOT COLLECTED AND TO INCLUDE THIS EXEMPT VALUE IN THE CALCULATIONS FOR
 THE BONDED INDEBTEDNESS LIMIT AND THE INDEX OF TAXPAYING ABILITY.

   02/06/01  Senate Introduced and read first time SJ-15
   02/06/01  Senate Referred to Committee on Finance SJ-15

TO AMEND CHAPTER 36, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALES AND USE TAX BY ADDING ARTICLE 11 SO AS TO INCREASE THE STATE SALES AND USE TAX ON ITEMS NOT SUBJECT TO A MAXIMUM TAX FROM FIVE TO SIX PERCENT AND CREDIT THE REVENUE OF THIS TAX TO THE TRUST FUND FOR TAX RELIEF, TO AMEND SECTION 11-11-150, AS AMENDED, RELATING TO THE TRUST FUND FOR TAX RELIEF, SO AS TO REFLECT REVENUES FROM THE TAX ADDED BY THIS ACT, AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT FROM PROPERTY TAX ALL FAIR MARKET OF OWNER-OCCUPIED RESIDENTIAL PROPERTY OTHERWISE SUBJECT TO TAX, TO REIMBURSE LOCAL TAXING ENTITIES FOR THE REVENUE NOT COLLECTED AND TO INCLUDE THIS EXEMPT VALUE IN THE CALCULATIONS FOR THE BONDED INDEBTEDNESS LIMIT AND THE INDEX OF TAXPAYING ABILITY.

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

SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:

"Article 11

Section 12-36-1110. (A) An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter.

(B) The tax imposed pursuant to this article does not apply to any item subject to the maximum tax provisions of Section 12-36-2110.

(C) Revenue of the tax imposed pursuant to this article is not considered revenue of the general fund of the State but is instead credited to the Trust Fund for Tax Relief established pursuant to Section 11-11-150(B)."

SECTION 2. Subsections (B) and (C) of Section 11-11-150 of the 1976 Code, as added by Act 419 of 1998, are amended to read:

"(B) There is established in the State Treasury the Trust Fund for Tax Relief (Trust Fund) which must be maintained separately from the general fund of the State and all other funds. The amounts deducted from state income tax revenues pursuant to subsection (A) and the revenue from the tax imposed pursuant to Section 12-36-1110 are automatically credited to the Trust Fund for the applicable fiscal year. The Board of Economic Advisors shall account for the Trust Fund revenue separately from general fund revenues in reports to the Governor and the General Assembly.

(C) The income tax revenue as collected must be apportioned to the Trust Fund and to the General Fund in proportion to the reimbursement estimates of the Board of Economic Advisors, as required in subsection (A)."

SECTION 3. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( ) After the exemptions allowed pursuant to Sections 12-37-250, 12-37-251, and Section 1(B) of Act 406 of 2000, any remaining fair market value otherwise subject to tax of property classified pursuant to Section 12-43-220(c). Local property taxing entities must be reimbursed revenues not collected because of this exemption from the Trust Fund for Tax Relief in the manner provided in Section 12-37-270. Property exempted pursuant to this item is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15, Article X of the Constitution of this State, and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3)."

SECTION 4. This act takes effect July 1, 2001, and the amendment to Section 12-37-250(B) of the 1976 Code contained in this act is effective for property tax years beginning after 2000.