H 4372 General Bill, By J.L.M. Cromer, Knotts and Whipper
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11
 IN CHAPTER 36 OF TITLE 12, SO AS TO INCREASE THE RATE OF THE STATE SALES, USE,
 AND CASUAL EXCISE TAX FROM FIVE TO SIX PERCENT ON ITEMS NOT SUBJECT TO A
 MAXIMUM TAX AND PROVIDE FOR THE CREDITING OF THE REVENUE OF THIS ADDITIONAL
 TAX TO A SEPARATE FUND STYLED THE "MOTOR VEHICLE PROPERTY TAX RELIEF FUND" AND
 TO CREDIT THE EXCESS REVENUE TO THE GENERAL FUND OF THE STATE; TO AMEND
 SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO
 EXEMPT FROM TAX A PERCENTAGE OF THE FAIR MARKET VALUE OF ALL PRIVATE PASSENGER
 MOTOR VEHICLES, MOTOR CYCLES, AND TRUCKS WITH AN EMPTY WEIGHT OF NOT MORE THAN
 FIVE THOUSAND POUNDS FROM TAXES, TO PROVIDE FOR THE CALCULATION OF THE
 EXEMPTION AMOUNT AND FOR THE REIMBURSEMENT OF LOCAL TAXING ENTITIES FOR
 REVENUES NOT COLLECTED BECAUSE OF THIS EXEMPTION.

   12/17/97  House  Prefiled
   12/17/97  House  Referred to Committee on Ways and Means
   01/13/98  House  Introduced and read first time HJ-32
   01/13/98  House  Referred to Committee on Ways and Means HJ-33

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 IN CHAPTER 36 OF TITLE 12, SO AS TO INCREASE THE RATE OF THE STATE SALES, USE, AND CASUAL EXCISE TAX FROM FIVE TO SIX PERCENT ON ITEMS NOT SUBJECT TO A MAXIMUM TAX AND PROVIDE FOR THE CREDITING OF THE REVENUE OF THIS ADDITIONAL TAX TO A SEPARATE FUND STYLED THE "MOTOR VEHICLE PROPERTY TAX RELIEF FUND" AND TO CREDIT THE EXCESS REVENUE TO THE GENERAL FUND OF THE STATE; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT FROM TAX A PERCENTAGE OF THE FAIR MARKET VALUE OF ALL PRIVATE PASSENGER MOTOR VEHICLES, MOTOR CYCLES, AND TRUCKS WITH AN EMPTY WEIGHT OF NOT MORE THAN FIVE THOUSAND POUNDS FROM TAXES, TO PROVIDE FOR THE CALCULATION OF THE EXEMPTION AMOUNT AND FOR THE REIMBURSEMENT OF LOCAL TAXING ENTITIES FOR REVENUES NOT COLLECTED BECAUSE OF THIS EXEMPTION.

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 must be credited to a fund separate from the general fund of the State styled the 'Motor Vehicle Property Tax Relief Fund'. Revenues in this fund must be used to reimburse local property taxing entities for revenues not collected because of the exemption allowed for private passenger motor vehicles, motorcycles, and pickup trucks. Amounts accumulating in this fund in excess of the amounts required for reimbursements must be credited to the general fund of the State."

SECTION 2. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( )(a) Subject to the requirements of subitem (b), a percentage of the fair market value of a motor vehicle or motorcycle which may be registered upon payment of the fees provided in Section 56-3-620 or 56-3-760 and a truck with an empty weight of not more than five thousand pounds is exempt from property tax millage as provided in this item.

(b) Using vehicle registration data provided by the Department of Public Safety, the director of the Department of Revenue, from estimated revenues available in the Motor Vehicle Property Tax Relief Fund, annually shall calculate a percentage of fair market value that is exempt for vehicle tax years beginning in a calendar year based on the reimbursement required pursuant to subitem (c) of this item. This exemption amount must be certified to county auditors not later than October first of each year and applies for vehicle tax years beginning on the following calendar year.

(c) Revenues not collected because of this exemption must be reimbursed to local taxing entities from the Motor Vehicle Property Tax Relief Fund in the manner provided in Section 12-37-270, mutatis mutandis, except that reimbursements must be made not less than quarterly and in advance as property taxes are due and payable on motor vehicles."

SECTION 3. This act takes effect upon approval by the Governor, but the additional sales and use tax imposed and the exemption allowed pursuant to this act take effect January 1, 1999.