H*5143 Session 112 (1997-1998)
H*5143(Rat #0501, Act #0497 of 1998) General Bill, By Fleming
A BILL TO ENACT THE SCHOOL DISTRICT OF UNION COUNTY SCHOOL BOND-PROPERTY TAX
RELIEF ACT SO AS TO AUTHORIZE THE IMPLEMENTATION FOLLOWING REFERENDUM APPROVAL
OF A SALES AND USE TAX IN UNION COUNTY NOT TO EXCEED TWO PERCENT FOR DEBT
SERVICE ON GENERAL OBLIGATION BONDS ISSUED FOR SCHOOL CONSTRUCTION AND
RENOVATION OR FOR DIRECT PAYMENTS FOR SCHOOL CONSTRUCTION AND RENOVATION; AND
TO AMEND ACT 79 OF 1955, AS AMENDED, RELATING TO THE SCHOOL DISTRICT OF UNION
COUNTY, SO AS TO DELETE PROVISIONS PERTAINING TO CERTAIN PROCEDURAL MATTERS OF
THE BOARD AND COMPENSATION OF BOARD MEMBERS.
05/13/98 House Introduced, read first time, placed on calendar
without reference HJ-46
05/14/98 House Debate adjourned until Tuesday, May 12, 1998 HJ-16
05/19/98 House Read second time HJ-22
05/20/98 House Read third time and sent to Senate HJ-89
05/20/98 Senate Intd. & placed on local & uncontested cal. w/o
reference SJ-23
06/02/98 Senate Amended SJ-76
06/02/98 Senate Read second time SJ-76
06/03/98 Senate Read third time and returned to House with amendments
06/04/98 House Concurred in Senate amendment and enrolled HJ-17
06/04/98 Ratified R 501
06/10/98 Vetoed by Governor
06/16/98 House Veto overridden Yeas-2 Nays-0 HJ-30
06/16/98 Senate Veto overridden Yeas-46 Nays-0
06/25/98 Effective date 06/16/98
06/25/98 Copies available
09/14/98 Act No. 497
(A497, R501, H5143)
AN ACT TO ENACT THE SCHOOL DISTRICT OF UNION
COUNTY SCHOOL BOND-PROPERTY TAX RELIEF ACT SO AS TO
AUTHORIZE THE IMPLEMENTATION FOLLOWING
REFERENDUM APPROVAL OF A SALES AND USE TAX IN UNION
COUNTY NOT TO EXCEED TWO PERCENT FOR DEBT SERVICE
ON GENERAL OBLIGATION BONDS ISSUED FOR SCHOOL
CONSTRUCTION AND RENOVATION OR FOR DIRECT
PAYMENTS FOR SCHOOL CONSTRUCTION AND RENOVATION;
AND TO AMEND ACT 79 OF 1955, AS AMENDED, RELATING TO
THE SCHOOL DISTRICT OF UNION COUNTY, SO AS TO DELETE
PROVISIONS PERTAINING TO CERTAIN PROCEDURAL
MATTERS OF THE BOARD AND COMPENSATION OF BOARD
MEMBERS.
Be it enacted by the General Assembly of the State of South Carolina:
School District of Union County School Bond-Property Tax
Relief Act
SECTION 1. (A) This section may be cited as the School District
of Union County School Bond-Property Tax Relief Act.
(B) As used in this section:
(1) "Board" means the Union County Board of
School Trustees, the governing body of the district.
(2) "County auditor" means the Union County
Auditor.
(3) "County treasurer" means the Union County
Treasurer.
(4) "Department" means the South Carolina
Department of Revenue.
(5) "District" means the School District of Union
County.
(C) Subject to the requirements of this section and notwithstanding
the limitations provided in Section 4-10-310 of the 1976 Code, the board
by resolution may impose a sales and use tax not exceeding two percent,
the amount to be determined by the board, within Union County for a
specific purpose and for a specified period of time to collect revenues to
be used to pay debt service on general obligation bonds issued pursuant
to Article 1 of Chapter 71, Title 59 of the 1976 Code, the School Bond
Act, or to pay directly costs of acquisition or construction of any of the
improvements identified in the resolution providing for the imposition of
the tax.
(D)(1)(a) The board, by resolution, may vote to impose the tax
authorized by this section but in no event may the tax be levied unless the
voters approve the question presented in the referendum. The resolution
must specify:
(i) the improvements to be financed through the issuance
of general obligation bonds of the school district together with the
imposition of the tax;
(ii) the maximum time, stated in calendar years or
calendar quarters, or a combination of them, not to exceed twenty-five
years, for which the tax may be imposed; and
(iii) the maximum principal amount of general obligation
bonds to be issued and repaid with proceeds of the tax.
(b) The findings provided in item (i) may be incorporated
within a resolution of the board calling for a referendum upon the
question of the issuance of general obligation bonds pursuant to Article
1 of Chapter 71, Title 59 of the 1976 Code, if the proposed tax is to be
applied to payment of debt service upon the bonds.
(2) Upon receipt of the resolution, the Union County Election
Commission shall conduct a referendum on the question of imposing the
optional special sales and use tax in the county. Notice of the election
must be provided in the manner provided by the general election law and
include the question to be voted upon in the referendum. In addition, if
the question of the issuance of general obligation bonds also is to be voted
upon in the referendum, publication of notice of the referendum also must
be given in compliance with Article 1 of Chapter 71, Title 59 of the 1976
Code. Expenses of the referendum must be paid by the school district.
(3) The question to be voted upon in the referendum must read
substantially as follows:
"Shall a special sales and use tax not exceeding ______ percent
be imposed in Union County for not more than twenty-five years in order
to raise revenues which will be applied to pay directly the cost of or to
pay debt service on general obligation bonds issued to defray the cost of
(identify improvements) for the School District of Union County?
Yes []
No []"
The ballot may, in the discretion of the board, contain a short
explanation of the question to be voted upon in this referendum.
(4) All qualified electors desiring to vote in favor of imposing the
tax for a particular purpose shall vote "yes" and all qualified
electors opposed to levying the tax for the particular purpose shall vote
"no". Upon receipt of the returns of the referendum, the
election commission shall certify the results and file the certification with
the Union County Clerk of Court. The certification also must be filed
with the department. The certified result of the referendum is not open to
question except by a civil action instituted within twenty days of the filing
of the certificate with the clerk of court. If a majority of the votes cast are
in favor of imposing the tax, then the tax is imposed as provided in this
act; otherwise, the tax is not imposed. A referendum on imposition of the
tax authorized in this section may not be held more than once in a period
of twelve consecutive months.
(E)(1) If the tax is approved in the referendum, the tax must be
imposed beginning upon the first day of the third full month following the
filing of the declaration of results of the referendum with the department.
(2) The tax terminates:
(a) on the final day of the maximum time specified for the
imposition; or
(b) earlier, but not if later, upon payment of the final maturing
installments of principal of the general obligation bonds to which
application of the tax is authorized, or upon payment of the final maturing
installments of principal of general obligation bonds issued to refund the
bonds.
(3) When the optional sales and use tax is imposed for more than
one purpose, the governing body of the school district authorizing the
referendum for the tax shall determine the priority for the expenditure of
the net proceeds of the tax for the purposes stated in the referendum.
(F)(1) The tax levied pursuant to this section must be administered
and collected by the department in the same manner that other sales and
use taxes are collected. The department may prescribe the amounts which
may be added to the sales price because of the tax.
(2) The tax authorized by this section is in addition to all other
local sales and use taxes and applies to the gross proceeds of the sales in
Union County which are subject to the tax imposed by Chapter 36, Title
12 of the 1976 Code and the enforcement provisions of Chapter 54, Title
12 of the 1976 Code. The gross proceeds of the sale of items subject to
a maximum tax in Chapter 36 of Title 12 of the 1976 Code are exempt
from the tax imposed by this section. The gross proceeds of the sale of
food which may lawfully be purchased with United States Department of
Agriculture food coupons are exempt from the tax imposed by this act.
The tax imposed by this section also applies to tangible personal property
subject to the use tax in Article 13, Chapter 36 of Title 12 of the 1976
Code.
(3) Taxpayers required to remit taxes under Article 13, Chapter
36, Title 12 of the 1976 Code shall identify the county in which the
tangible personal property purchased at retail is stored, used, or consumed
in this State.
(4) Utilities are required to report sales in the county in which
consumption of the tangible personal property occurs.
(5) A taxpayer subject to the tax imposed by Section 12-36-920
of the 1976 Code, who owns or manages rental units in more than one
county shall separately report in his sales tax return the total gross
proceeds from business done in each county.
(6) The gross proceeds of sales of tangible personal property
delivered after the imposition date of the tax levied under this section in
Union County, 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 special local sales and
use tax provided in this section if a verified copy of the contract is filed
with the department within six months after the imposition of the special
local sales and use tax.
(7) Notwithstanding the imposition date of the special local sales
and use tax authorized pursuant to this section, with respect to services
that are regularly billed on a monthly basis, the special local sales and use
tax is imposed beginning on the first day of the billing period beginning
on or after the imposition date.
(G)(1) The revenues of the tax collected in the county under this
section must be remitted to the State Treasurer and credited to a fund
separate and distinct from the general fund of the State. After deducting
the amount of refunds made and costs to the department of administering
the tax, not to exceed one percent of the revenues, the State Treasurer
shall distribute the revenues quarterly to the county treasurer, who shall
hold the debt service funds for payment of principal and interest on the
bonds to which the tax is applicable. The State Treasurer may correct
misallocation costs or refunds by adjusting subsequent distributions, but
these adjustments must be made in the same fiscal year as the
misallocation.
(2) The county treasurer shall certify to the auditor of the county
on July fifteenth of each calendar year as to the amount of tax revenues
of the tax authorized by this section held by him as of June thirtieth of the
calendar year. The county auditor shall reduce the next levy of ad
valorem property taxes required to pay debt service on bonds to which the
tax is applicable by the amount of tax revenues certified as collected as of
June thirtieth by the county treasurer. Tax revenues collected as of June
thirtieth of a calendar year in excess of the amounts required to pay debt
service due in the eighteen months following June thirtieth on bonds to
which the tax is applicable may be applied either to the payment or
reimbursement to the district for the payment of costs of the
improvements described in the referendum or, if such improvements have
been completed, these tax revenues must be applied to the redemption of
the bonds authorized by the referendum on the next practicable
redemption date.
(3) If the district presents the county treasurer with a surety bond
or letter of credit from a financial institution which is rated in one of the
two highest rating categories by two national ratings agencies, the county
treasurer may treat the amount available under the surety as if it were tax
revenues held by the county treasurer and shall provide the certificate
called for in item (2) to the auditor by including the amount available
under the surety or letter of credit if the amount is not in excess of ninety
percent of the actual taxes collected during the prior year. The county
auditor shall reduce the next levy of ad valorem property taxes required
to pay debt service on bonds to which the tax is applicable by the amount
so certified by the county treasurer. If the taxes collected are less than the
amount required, the county treasurer shall draw upon the surety to
provide for timely payment of debt service on the bonds. The costs of this
surety may be paid from amounts available in the fund created in
accordance with item (1) of this subsection and any reimbursement to the
surety may be paid from the fund from taxes collected in the year after
any draw.
(4) Before the issuance of any general obligation bonds payable
from tax authorized by this section, any revenues may be applied directly
to the costs of the improvements approved in the referendum provided for
in subsection (C) of this section.
(H) The department shall furnish data to the State Treasurer and to
the district for the purpose of calculating distributions and estimating
revenues. The information which must be supplied to the district 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 of the 1976 Code. A person violating this section is subject to
the penalties provided in Section 12-54-240 of the 1976 Code.
Matters deleted
SECTION 2. Section 7 of Act 79 of 1955 (Section 21-4165 of the
1962 Code), as last amended by Section 6, Act 124 of 1969, is deleted.
Time effective
SECTION 3. This act takes effect upon approval by the
Governor.
Vetoed by the Governor -- 06/10/98.
Veto overridden by House -- 06/16/98.
Veto overridden by Senate -- 06/16/98.
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