H*3626(Rat #0232, Act #0109 of 1997)  General Bill, By Harrell
 A BILL TO AMEND CHAPTER 21, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO BUSINESS LICENSE TAXES, BY ADDING ARTICLE 27 SO AS TO ENACT THE
 TOURISM INFRASTRUCTURE TAX ACT AND WHICH PROVIDES THAT A PORTION OF ADMISSIONS
 TAXES PAID TO CERTAIN TOURISM AND RECREATION FACILITIES MAY BE USED FOR
 ADDITIONAL INFRASTRUCTURE IMPROVEMENTS, PROVIDES FOR THE FUND INTO WHICH THESE
 REVENUES MUST BE DEPOSITED AND THE USES TO WHICH THEY MAY BE PUT FOR THE
 ADMINISTRATION AND DURATION OF THE PROGRAM, AND FOR THOSE FACILITIES ELIGIBLE
 TO PARTICIPATE; AND TO REPEAL SECTION 12-21-2423, RELATING TO A SIMILAR USE OF
 A PORTION OF ADMISSIONS TAX REVENUES; AND TO AMEND SECTION 12-6-3470, AS
 AMENDED, RELATING TO THE EMPLOYER'S TAX CREDIT FOR HIRING AFDC RECIPIENTS, SO
 AS TO REQUIRE THE EMPLOYER TO MAKE HEALTH INSURANCE AVAILABLE TO THE
 EMPLOYEE.-AMENDED TITLE

   03/11/97  House  Introduced and read first time HJ-7
   03/11/97  House  Referred to Committee on Ways and Means HJ-7
   04/22/97  House  Committee report: Favorable with amendment Ways
                     and Means HJ-5
   04/29/97  House  Amended HJ-53
   04/29/97  House  Read second time HJ-54
   04/30/97  House  Read third time and sent to Senate HJ-19
   05/01/97  Senate Introduced and read first time SJ-24
   05/01/97  Senate Referred to Committee on Finance SJ-24
   05/21/97  Senate Committee report: Favorable Finance SJ-25
   05/22/97  Senate Read second time SJ-31
   05/22/97  Senate Ordered to third reading with notice of
                     amendments SJ-31
   05/29/97  Senate Amended SJ-89
   06/03/97  Senate Read third time and returned to House with
                     amendments SJ-86
   06/04/97  House  Concurred in Senate amendment and enrolled HJ-46
   06/09/97         Ratified R 232
   06/13/97         Signed By Governor
   06/13/97         Effective date This Act is effective with respect
                     to projects with investment periods, as defined
                     in Section 12-21-6520(10) of the 1976 Code as
                     added by this Act, ending after 12/31/96
   06/24/97         Copies available
   06/24/97         Act No. 109

AN ACT TO AMEND CHAPTER 21, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BUSINESS LICENSE TAXES, BY ADDING ARTICLE 27 SO AS TO ENACT THE TOURISM INFRASTRUCTURE TAX ACT AND WHICH PROVIDES THAT A PORTION OF ADMISSIONS TAXES PAID TO CERTAIN TOURISM AND RECREATION FACILITIES MAY BE USED FOR ADDITIONAL INFRASTRUCTURE IMPROVEMENTS, PROVIDES FOR THE FUND INTO WHICH THESE REVENUES MUST BE DEPOSITED AND THE USES TO WHICH THEY MAY BE PUT FOR THE ADMINISTRATION AND DURATION OF THE PROGRAM, AND FOR THOSE FACILITIES ELIGIBLE TO PARTICIPATE; TO REPEAL SECTION 12-21-2423, RELATING TO A SIMILAR USE OF A PORTION OF ADMISSIONS TAX REVENUES; AND TO AMEND SECTION 12-6-3470, AS AMENDED, RELATING TO THE EMPLOYER'S TAX CREDIT FOR HIRING AFDC RECIPIENTS, SO AS TO REQUIRE THE EMPLOYER TO MAKE HEALTH INSURANCE AVAILABLE TO THE EMPLOYEE.

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

Tourism Infrastructure Admissions Tax Act

SECTION 1. Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Article 27

Section 12-21-6510. This article may be cited as the Tourism Infrastructure Admissions Tax Act.

Section 12-21-6520. As used in this article:

(1) 'Additional infrastructure improvement' means a road or pedestrian access way, a right-of-way, a bridge, a water or sewer facility, an electric or gas facility, a landfill or waste treatment facility, a hospital or medical facility, a fire station, a school, a transportation facility, a telephone or communications system, or any similar infrastructure facility and facilities ancillary thereto. This improvement must be owned by the State or a political subdivision. For purposes of this section, it includes a publicly-owned tourism or recreation facility.

(2) 'Benefit period' means a fifteen-year period commencing on the first day of the first month after the date on which the department approves the certification application.

(3) 'Certification application' means an application submitted by a county or municipality to the department requesting that the department approve a major tourism or recreation facility or a major tourism or recreation area for the benefits available under Sections 12-21-6530 and 12-21-6540.

(4) 'Council' means the Advisory Coordinating Council for Economic Development.

(5) 'Department' means the South Carolina Department of Revenue.

(6) 'Designated development area' means a contiguous area set aside by municipal or county ordinance in which one or more tourism or recreation facilities will be located. The term includes a downtown or waterfront redevelopment area, a local historic district, redevelopment of a closed military facility, or a newly designated economic development site.

(7) 'Establishment' means either a major tourism or recreation facility or a tourism or recreation facility located within a major tourism or recreation area.

(8) 'Fund' means the special tourism infrastructure development fund.

(9) 'Grant application' means the application submitted to the council whereby a local government may apply to receive a grant from the fund.

(10) 'Investment period' means any consecutive sixty-month period, however, the same investment may not be counted more than once in determining whether the appropriate amount of investment has been made within any consecutive sixty-month period.

(11) 'Major tourism or recreation area' means a designated development area with one or more tourism or recreation facilities located therein in which an aggregate investment in land and capital assets of at least twenty million dollars is made in the designated development area for tourism or recreation facilities, or as otherwise provided in Section 12-21-6560, within the investment period. The full twenty million dollars must be invested before the certification application can be filed.

(12) 'Major tourism or recreation facility' means a tourism or recreation facility in which an aggregate investment in land and capital assets of at least twenty million dollars is made at the facility, or as otherwise provided in Section 12-21-6560, within the investment period. The full twenty million dollars must be invested before the certification application can be filed.

(13) 'Tourism or recreation facility' means a theme park, amusement park, historical, educational or trade museum, botanical or zoological garden, aquarium, cultural center, theater, motion picture production studio, convention center, arena, coliseum, auditorium, golf course, spectator or participatory sports facility or any other facility which is subject to collecting and remitting the tax on admissions.

Section 12-21-6530. (A) During the benefit period, an amount equal to one-fourth of the license tax paid on admissions to an establishment must be paid by the department to the county or municipality in which the establishment is located. This portion of the tax is to be used directly or indirectly for additional infrastructure improvements. If more than one infrastructure improvement is being considered at the same time, preference must be given to infrastructure improvements requested by the establishment generating the admissions tax, or other development occurring as a result of the creation or expansion of the major tourism or recreation facility or major tourism or recreation area.

(B) If the establishment is located in an unincorporated area of a county, the payment must be made to the county governing body and, if located within the corporate limits of a municipality, the payment must be made to the municipal governing body.

(C) The county or municipal governing body may share funds received from these payments with another county or municipal governing body to provide additional infrastructure facilities or services in support of the establishment that generates the tax on admissions responsible for the payments.

Section 12-21-6540. (A) During the benefit period, in addition to the amount described in Section 12-21-6530, an additional amount equal to one-fourth of the license tax paid on admissions to an establishment must be transferred by the department to the State Treasurer to be deposited into the fund and distributed pursuant to the approval of the council.

(B) Deposits into the fund must be separated into special accounts based on which establishment generated the admissions tax subject to this section.

(C) Counties or municipalities within five miles of the major tourism or recreation facility or major tourism or recreation area may apply to the council for grants from the fund by submitting a grant application.

(D) Upon review of the grant application, the council shall determine the amount of monies to be received by each of the eligible counties or municipalities. All monies must be used directly or indirectly for additional infrastructure improvements. If more than one grant application is being reviewed at the same time, preference must be given to grant applications for infrastructure which directly or indirectly serve the establishment that generates the admissions tax or other development occurring as a result of the creation or expansion of the major tourism or recreation facility or major tourism or recreation area. One year after the end of the benefit period, the council, after consultation with the Department of Parks, Recreation and Tourism, may use these funds for any infrastructure in the State which it determines will aid tourism.

(E) Grants may run for more than one year and may be based upon a specified dollar amount or a percentage of the monies deposited annually into the fund. After approval of a grant application, the council may approve the release of monies to eligible counties and municipalities.

(F) The council shall adopt guidelines to administer the fund including, but not limited to, grant application criteria for review and approval of grant applications. Expenses incurred by the council in administering the fund may be paid from the fund.

Section 12-21-6550. In order to obtain the amounts provided in Sections 12-21-6530 and 12-21-6540:

(A) The county or municipality in which the major tourism or recreation facility or major tourism or recreation area is located must file with the department a certification application. A separate certification application must be filed for each tourism or recreation facility located in a tourism or recreation area. The certification application must be filed within one year of the end of the investment period. The department must notify the county or the municipality, in writing, if the certification application has been approved.

(B) A tourism or recreation facility for which a certification application has been filed must request a determination from the council as to the status of the tourism or recreation facility. The council must classify each tourism or recreation facility as a new tourism or recreation facility or an expansion to an existing tourism or recreation facility. If a tourism or recreation facility is classified as an expansion to an existing tourism or recreation facility, Section 12-21-6580 applies. The request for determination of classification must be included in the certification application. The department must forward a copy of the request to the council for its determination.

Section 12-21-6560. In determining whether or not a particular facility qualifies as a major tourism or recreation facility or a major tourism or recreation area, the following items may be included in determining if the twenty million dollar investment has been met:

(1) secondary support facilities such as hotels, food, and retail services which are located within, or immediately adjacent to, the major tourism or recreation facility or the major tourism or recreation area and which directly support the major tourism or recreation facility or the major tourism and recreation area;

(2) private or public sector funds or a combination of private and public sector funds, spent on the major tourism or recreation facility or the major tourism or recreation area.

Section 12-21-6570. (A) A designated development area and its boundaries must be determined by municipal ordinance, if located in a municipality, or by county ordinance, if located in an unincorporated county area, or by more than one ordinance by municipal or county governments, or both, if it embraces areas within two or more counties or municipalities. One or more designated development areas may be located within a municipality or unincorporated county area.

(B) The total aggregate amount of a single designated development area within any municipality or county may not exceed five percent of the total acreage of the municipality or unincorporated county area.

(C) If there is more than one designated development area within a county or municipality, the total acreage for all designated development areas within a municipality must not exceed ten percent of the total acreage of the municipality and the total acreage for all designated development areas within unincorporated areas of a county must not exceed ten percent of the total acreage of the county's unincorporated areas.

(D) The acreage limitations for municipalities and unincorporated county areas do not apply to designated development areas created prior to the year 2005 and located on a closed federal military facility as defined by the Base Realignment and Closure Commission, and the acreage for an area where these conditions are met are in addition to the acreage limitations applicable to any other designated development areas within the same municipality or unincorporated county area.

(E) Two or more municipal or county governments or combination of these governments may adopt ordinances to designate a 'designated development area' embracing contiguous lands within two or more of the involved county-municipal entities, but the acreage for each involved municipality or county must not exceed five percent of the total acreage in each involved municipality or unincorporated county area.

(F) The boundaries of a designated development area must be determined prior to the date that the certification application is approved.

Section 12-21-6580. If a major tourism or recreation facility is expanded or improved with an additional twenty million dollar investment being made within an investment period or if a major tourism and recreation area is expanded or improved with an additional twenty million dollar investment being made within an investment period, the amount of admissions tax revenues to be subject to Sections 12-21-2510 and 12-21-2530 for the benefit period is the amount in excess of the annual admissions tax revenues previously generated by the major tourism or recreation facility, or by all of the tourism or recreation facilities within the major tourism or recreation area, as appropriate. This amount is determined by using the average of the admissions tax revenues generated during the twenty-four months preceding the date of the filing of the certification application."

Employer income tax credit

SECTION 2. A. Section 12-6-3470(C) of the 1976 Code is amended to read:

"(C) In order to claim the credit provided in subsection (A) an employer must make health insurance available to the qualified employee. All conditions including employer contributions and employer imposed waiting periods for the qualified employee must be on the same basis and under the same conditions as that of any other employee employed by the employer claiming the credit. The credit is allowed from the date of hire for each full month of employment notwithstanding an employer imposed waiting period which must not exceed twelve months.

Nothing in this section may be construed to require employers to pay for all or part of any health insurance coverage for a qualified employee in order to claim the credit if an employer does not pay for all or part of health insurance coverage for his other employees."

B. Section 12-6-3470(C), as amended by this act, is the last expression of the General Assembly notwithstanding any similar provisions passed in any other act of this year. The General Assembly finds that the provisions of this act are controlling and directs the Code Commissioner to codify Section 12-6-3470(C) as amended by this act.

Repeal

SECTION 3. Section 12-21-2423 of the 1976 Code is repealed.

Time effective

SECTION 4. This act is effective with respect to projects with investment periods, as defined in Section 12-21-6520(10) of the 1976 Code as added by this act, ending after December 31, 1996.

Approved the 13th day of June, 1997.