H 4227 Session 111 (1995-1996)
H 4227 General Bill, By Harrell
A Bill to amend Title 4, Code of Laws of South Carolina, 1976, relating to
county government, by adding Chapter 12 so as to provide for a fee in lieu of
property taxes and to provide the requirements necessary for projects eligible
for such fees including, among other things, a minimum investment threshold of
ten million dollars, an assessment ratio of not less than six percent, and a
maximum period for the fee of twenty years plus extensions not to exceed a
total of twenty-seven years in cases of property placed in service over a
period of years, and to provide which fee in lieu of taxes provisions are
available for projects based on the date agreements are entered into and the
total amount of the project investment; and to amend Sections 4-29-68, as
amended, and 12-7-1220, as amended, relating to the fee in lieu of taxes for
special source revenue bond projects and the targeted jobs state income tax
credit, so as to conform these provisions to the fee in lieu of taxes of the
Chapter added by this Act.
05/18/95 House Introduced and read first time HJ-43
05/18/95 House Referred to Committee on Ways and Means HJ-44
A BILL
TO AMEND TITLE 4, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO COUNTY GOVERNMENT,
BY ADDING CHAPTER 12 SO AS TO PROVIDE FOR A FEE
IN LIEU OF PROPERTY TAXES AND TO PROVIDE THE
REQUIREMENTS NECESSARY FOR PROJECTS ELIGIBLE
FOR SUCH FEES, INCLUDING, AMONG OTHER THINGS, A
MINIMUM INVESTMENT THRESHOLD OF TEN MILLION
DOLLARS, AN ASSESSMENT RATIO OF NOT LESS THAN
SIX PERCENT, AND A MAXIMUM PERIOD FOR THE FEE OF
TWENTY YEARS PLUS EXTENSIONS NOT TO EXCEED A
TOTAL OF TWENTY-SEVEN YEARS IN CASES OF
PROPERTY PLACED IN SERVICE OVER A PERIOD OF
YEARS, AND TO PROVIDE WHICH FEE IN LIEU OF TAXES
PROVISIONS ARE AVAILABLE FOR PROJECTS BASED ON
THE DATE AGREEMENTS ARE ENTERED INTO AND THE
TOTAL AMOUNT OF THE PROJECT INVESTMENT; AND TO
AMEND SECTIONS 4-29-68, AS AMENDED, AND 12-7-1220,
AS AMENDED, RELATING TO THE FEE IN LIEU OF TAXES
FOR SPECIAL SOURCE REVENUE BOND PROJECTS AND
THE TARGETED JOBS STATE INCOME TAX CREDIT, SO AS
TO CONFORM THESE PROVISIONS TO THE FEE IN LIEU OF
TAXES OF THE CHAPTER ADDED BY THIS ACT.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. A. Title 4 of the 1976 Code is amended by
adding:
"CHAPTER 12
Fee in Lieu of Property Taxes
Section 4-12-10. As used in this chapter:
(1) `Department' means the South Carolina Department of
Revenue and Taxation.
(2) `Project' means any land and any buildings and other
improvements on the land including, without limiting the generality
of the foregoing, water, sewage treatment and disposal facilities, air
pollution control facilities, and all other machinery, apparatus,
equipment, office facilities, and furnishings which are considered
necessary, suitable, or useful.
Section 4-12-20. Every agreement between a county council or
county councils and another party in the form of a lease must
contain a provision requiring the industry to make payments to the
county or counties, municipality or municipalities, school district or
school districts, and other political units in which the project is
located in lieu of taxes, in the amounts that would result from taxes
levied on the project by the county or counties, municipality or
municipalities, school district or school districts, and other political
unit or units, if the project were owned by the industry, but with
appropriate reductions similar to the tax exemptions, if any, which
would be afforded to the industry if it were owner of the project.
Section 4-12-30. (A) Notwithstanding the provisions of Section
4-12-20, in the case of an agreement in the form of one or more
lease agreements for a project qualifying under subsection (B), the
county and the investor may enter into an inducement agreement
which provides for a payment in lieu of taxes as provided in this
section. All references in this section to a lease agreement also are
considered to refer to a lease purchase agreement.
(B) In order for property to qualify for the fee as provided in
subsection (D)(2):
(1) Title to the property must be held by the county or in the
case of a project located in an industrial development park as
defined in Section 4-1-170, title may be held by more than one
county, if each county is a member of the industrial development
park. Any real property transferred to the county must include a
legal description and plat of the property.
(2) The investment must be a project which is located in a
single county or an industrial development park as defined in
Section 4-1-170. A project located on a contiguous tract of land in
more than one county, but not in such an industrial development
park, may qualify for the fee if:
(a) the counties agree on the terms of the fee and the
distribution of the fee payment;
(b) the minimum millage rate is not lower than the millage
rate applicable to the county in which the greatest amount of
investment occurs; and
(c) all the counties are parties to all agreements
establishing the terms of the fee.
(3) The minimum level of investment must be at least ten
million dollars and must be invested within the time period
provided in subsection (C)(2).
(4)(a) Except as provided in subsection (B)(4)(b), the
investment must be made by a single entity. For purposes of this
section:
(i) any partnership or other association which
properly files its South Carolina income tax returns as a partnership
for South Carolina income tax purposes must be treated as a single
entity and as a partnership,
(ii) any corporation or other association which
properly files its South Carolina income tax returns as a corporation
for South Carolina tax purposes must be treated as a single entity
and as a corporation, and
(iii) any limited liability companies must be treated as
a single entity.
(b)(i) The members of the same controlled group of
corporations can qualify for the fee if the combined investment in
the county by the members meets the minimum investment
requirements. The county and the members who are part of the
inducement agreement may agree that any investments by other
members of the controlled group within the time periods provided
in subsections (C)(1) and (C)(2) qualify for the payment whether or
not the member was part of the inducement agreement. However,
in order to qualify for the fee, the other members of the controlled
group must be specifically approved by the county and must agree
to be bound by agreements with the county relating to the fee, but
the controlled group members need not be bound by agreements, or
portions of agreements, to the extent the agreements do not affect
the county. Except as otherwise provided in subsection (B)(2), the
investments under this subsection (B)(4)(b) must be within the same
county or industrial park. Any controlled group member which is
claiming the fee shall invest at least five million dollars in the
county or industrial park.
(ii) The department must be notified in writing of all
members which have investments subject to the fee before or within
ninety days after the end of the calendar year during which the
project or phase of the project was first placed in service. The
department may extend this period upon written request. Failure to
meet this notice requirement does not adversely affect the fee, but a
penalty may be assessed by the department for late notification in
the amount of ten thousand dollars a month or portion of a month
but not to exceed fifty thousand dollars. Members of the controlled
group shall provide the information considered necessary by the
department to ensure that the investors are part of a controlled
group.
(iii) If at any time the controlled group, or any former
member which has left the controlled group no longer has the
minimum ten million dollars of investment, without regard to
depreciation, that group or former member no longer holding the
minimum amount of investment as provided in subsection (B)(3),
without regard to depreciation, no longer qualifies for the fee.
(iv) For purposes of this section, `controlled group' or
`controlled group of corporations' has the meaning provided under
Section 1563(a) of the Internal Revenue Code as defined in Chapter
7 of Title 12 as of the date of the execution of the inducement
agreement without regard to amendments or replacements thereof,
and without regard to subsection (b) of Section 1563.
(5)(a) Before undertaking a project, the county council or
county councils shall find:
(i) that the project is anticipated to benefit the
general public welfare of the locality by providing services,
employment, recreation or other public benefits not otherwise
provided locally;
(ii) that the project gives rise to no pecuniary
liability of the county or incorporated municipality or a charge
against its general credit or taxing power; and
(iii) unless the terms of an agreement with respect to
a project provides that the industry shall maintain the project and
carry all proper insurance with respect thereto, the estimated cost of
maintaining the project in good repair and keeping it properly
insured must be included in the lease payment.
The determinations and findings of the county council or county
councils required to be made above must be set forth in the
proceedings under which the ordinance is enacted.
(b) The Board of Economic Advisors shall determine that
the purposes to be accomplished by the project are proper
governmental and public purposes and that the inducement of the
location or expansion of projects within the State is of paramount
importance and that the benefits of the project are greater than the
costs.
(6) Every financing agreement with respect to a project shall
contain an agreement obligating the industry to effect the
completion of the project, and obligating the industry to pay an
amount under the terms of a lease agreement, which must be
sufficient to build up and maintain any reserve considered by the
county council or county councils to be advisable in connection
with the agreement.
(C)(1) From the end of the property tax year in which the
investor and the county execute an inducement agreement, the
investor has five years in which to enter into an initial lease
agreement with the county.
(2) From the end of the property tax year in which the
investor and the county execute the initial lease agreement, the
investor has five years in which to complete its investment for
purposes of qualifying for this section. If the investor does not
anticipate completing the project within five years, the investor may
apply to the county before the end of the five-year period for an
extension of time to complete the project. If the county agrees to
grant the extension, the county must do so in writing and a copy
must be delivered to the department within thirty days of the date
the extension was granted. The extension may not exceed two
years in which to complete the project. There is no extension
allowed for the five-year period in which to meet the minimum
level of investment. If the minimum level of investment is not met
within five years, all property under the lease agreement or
agreements reverts retroactively to the payments required by Section
4-12-20. The difference between the fee actually paid by the
investor and the payment which is due under Section 4-12-20 is
subject to interest as provided in Section 12-43-305. Any property
placed in service after the five-year period, or seven years in the
case of a project which has received an extension, is not part of the
fee agreement under subsection (D)(2) and is subject to the
payments required by Section 4-12-20 if the county has title to the
property, or to property taxes as provided in Chapter 37 of Title 12
if the investor has title to the property.
(3) The annual fee provided by subsection (D)(2) is available
for no more than twenty years. For projects which are completed
and placed in service during more than one year, each year's
investment may be subject to the fee in subsection (D)(2) for
twenty years to a maximum total of twenty-seven years for the fee
for a single project which has been granted an extension.
(D) The inducement agreement must provide for fee payments,
to the extent applicable, as follows:
(1)(a) Any property, title to which is transferred to the county
before being placed in service, is subject to an annual fee payment
as provided in Section 4-12-20.
(b) Any undeveloped land, title to which is transferred to
the county, before being developed and placed in service, is subject
to an annual fee payment as provided in Section 4-12-20. The time
during which fee payments are made under Section 4-12-20 is not
considered part of the maximum periods provided in subsections
(C)(2) and (C)(3), and no lease is considered an `initial lease
agreement' for purposes of this section until the first day of the
calendar year for which a fee payment is due under subsection
(D)(2) in connection with the lease.
(2) After property qualifying under subsection (B) is placed
in service, an annual fee payment determined in accordance with
one of the following is due:
(a) an annual payment in an amount not less than the
property taxes that would be due on the project if it were taxable,
but using an assessment ratio of not less than six percent, and a
fixed millage rate as provided in subsection (G), and a fair market
value estimate determined by the department as follows:
(i) for real property, using the original income tax basis
for South Carolina income tax purposes without regard to
depreciation, but if real property is constructed for the fee or is
purchased in an arm's length transaction, fair market value is
deemed to equal the original income tax basis, otherwise the
department shall determine fair market value by appraisal; and
(ii) for personal property, using the original tax basis for
South Carolina income tax purposes less depreciation allowable for
property tax purposes, except that the investor is not entitled to any
extraordinary obsolescence.
(b) an annual payment as provided in subsection (D)(2)(a),
except that every fifth year the applicable millage rate is allowed to
increase or decrease in step with the average actual millage rate
applicable in the district where the project is located based on the
preceding five-year period.
(3) At the conclusion of the payments determined pursuant to
items (1) and (2) of this subsection, an annual payment equal to the
taxes due on the project as if it were taxable. When the property is
no longer subject to the fee under subsection (D)(2), the fee or
property taxes must be assessed:
(a) with respect to real property, based on the fair market
value as of the latest reassessment date for similar taxable property;
and
(b) with respect to personal property, based on the then
depreciated value applicable to such property under the fee, and
thereafter continuing with the South Carolina property tax
depreciation schedule.
(E) Calculations pursuant to subsection (D)(2) must be made on
the basis that the property, if taxable, is allowed all applicable
property tax exemptions except the exemption allowed under
Section 3(g) of Article X of the Constitution of this State and the
exemption allowed pursuant to Section 12-37-220(B)(32) and (34).
(F)(1) If an investor disposes of property subject to the fee, the
fee must be reduced by the amount of the fee applicable to that
property.
(2) Property is disposed of only when it is scrapped or sold
in accordance with the lease agreement.
(G)(1) The county and the investor may enter into an agreement
to establish the millage rate, a millage rate agreement, for
purposes of calculating payments under subsection (D)(2)(a) and
the first five years under subsection (D)(2)(b). This millage rate
agreement must be executed on the date of the inducement
agreement or any time thereafter up to and including the date of
the initial lease agreement. This millage rate agreement may be a
separate agreement or may be made a part of either the
inducement agreement or the initial lease agreement.
(2) The millage rate cannot be lower than the cumulative
property tax millage rate legally levied by or on behalf of all taxing
entities within which the subject property is to be located which is
the cumulative rate applicable on the thirtieth day of June preceding
the calendar year in which the millage rate agreement is executed.
If no millage rate agreement is executed before the date of the
initial lease agreement, the millage rate is deemed to be the
cumulative property tax millage rate applicable on the thirtieth day
of June preceding the calendar year in which the initial lease
agreement is executed by the parties.
(H)(1) Upon agreement of the parties, and except as provided in
subsection (H)(2), an inducement agreement, a millage rate
agreement, or both, may be amended or terminated and replaced
with regard to all matters, but no such amendment or termination
and replacement may take place after the initial lease agreement
date.
(2) No amendment or replacement of an inducement
agreement or millage rate agreement may be used to change the
millage rate under any such agreement.
(I) Investment expenditures made or incurred by any investor in
connection with a project, or relevant phase of a project in
connection with a project completed and placed in service in more
than one year, qualifies as expenditures subject to the fee in
subsection (D)(2), so long as these expenditures are made:
(1) after the county takes action reflecting or identifying the
project or proposed project or investment including, but not limited
to, the adoption of an inducement or similar resolution by county
council; and
(2) before the end of the applicable five or seven-year period
referenced in subsection (C)(2) and (C)(3). An inducement
agreement must be executed within two years after the date on
which the county takes action reflecting or identifying the project or
proposed project or investment including, but not limited to, the
adoption of an inducement or similar resolution by county council;
otherwise, only investment expenditures made or incurred by any
investor after the date of the inducement agreement in connection
with a project qualifies as expenditures subject to the fee in
subsection (D)(2).
(J)(1) Property which has been previously subject to property
taxes in South Carolina does not qualify for the fee except as
provided in this subsection:
(a) land, excluding improvements on the land, on which
a new project is to be located may qualify for the fee even if it has
previously been subject to South Carolina property taxes;
(b) property which has been subject to South Carolina
property taxes, but which has never been placed in service in South
Carolina, may qualify for the fee.
(2) Repairs, alterations, or modifications to real or personal
property which are not subject to a fee are not eligible for a fee,
even if they are capitalized expenditures, except for modifications to
existing real property improvements which constitute an expansion
of the improvements.
(K)(1) For a project not located in an industrial development
park as defined in Section 4-1-170, distribution of the fee-in-lieu of
taxes on the project must be made in the same manner and
proportion that the millage levied for school and other purposes
would be distributed if the property were taxable. For this purpose,
the relative proportions must be calculated based on the following
procedure: holding constant the millage rate set in subsection (G)
and using all tax abatements automatically granted for taxable
property, a full schedule of the property taxes that would otherwise
have been distributed to each millage levying entity in the county
must be prepared for the life of the agreement, up to twenty years
maximum. The total taxes for each millage levying entity as a
percentage of the total taxes for all such entities determines each
entity's relative shares of each year's fee payment for all subsequent
years of the agreement.
(2) For a project located in an industrial development park as
defined in Section 4-1-170, distribution of the fee-in-lieu of taxes
on the project must be made in the manner provided for by the
agreement establishing the industrial development park.
(L) Projects on which a fee-in-lieu of taxes is paid pursuant to
this section are considered taxable property at the level of the
negotiated payments for purposes of bonded indebtedness pursuant
to Sections 14 and 15 of 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). However, for a project located in
an industrial development park as defined in Section 4-1-170,
projects are considered taxable property in the manner provided in
Section 4-1-170 for purposes of bonded indebtedness pursuant to
Sections 14 and 15 of 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). However, the computation of
bonded indebtedness limitation is subject to the requirements of
Section 4-29-68(E).
(M) An entity subject to the fee may enter into any lending,
financing, security or similar arrangement, with any financing
entity, concerning all or part of a project, provided that the income
tax ownership of the property which is subject to the fee payment
under subsection (D)(2) is held, by the time the fee payments
relating to such property begin under subsection (D)(2), by the
entity subject to the fee.
(N) An entire fee interest may be transferred to another entity
which is qualified to enter into a fee agreement under subsection
(B)(4)(a). A fee interest is an inducement agreement, millage rate
agreement, lease agreement, and the entity's entire property interest
in the project subject to the fee. Equity interests in a partnership,
corporation, association, or limited liability company which
properly files its South Carolina income tax returns as a partnership
or corporation and which has an interest in an inducement
agreement, millage rate agreement, and lease agreement, such equity
interests collectively and individually referred to as an `entity
interest' may be transferred by any entity to any entity, if the entity
whose entity interest is being transferred holds at least a ten million
dollar investment based on income tax basis without regard to
depreciation in the project as of the time of the transfer.
(2) All transfers of fee interests or entity interests authorized
under subsection (N) must meet the following requirements:
(a) The county must approve the transfer within six
months before the transfer.
(b) The department must receive notification in writing of
the identity of each transferee and other information required by the
department within thirty days after the transfer becomes effective.
The department may extend the thirty-day period upon written
request. Failure to meet this notice requirement does not adversely
affect the fee, but a penalty may be assessed by the department for
late notification for up to ten thousand dollars a month or portion of
a month, with the total penalty not to exceed fifty thousand dollars.
(c) No election under Internal Revenue Code of 1986, as
amended, Sections 338 or 754 may be made with respect to the
transfer.
(d) Each transferee must agree to be bound by the
applicable agreements constituting the fee arrangement.
(e) Any transfer must be for fair market value or result in
a carryover basis for income tax purposes. If for income tax
purposes, the property begins a new depreciable life for the asset,
the property also begins a new depreciable life for purposes of
computing the fee. In no event is the time period for receiving the
fee extended.
(O) Notwithstanding any other provision of this section, if at any
time following the period provided in subsection (C)(2), the
investment based on income tax basis without regard to depreciation
falls below the ten million dollar minimum investment to which the
fee relates, the fee provided in subsection (D)(2) is no longer
available and the investor is required to make the payments which
are due under Section 4-12-20 for the remainder of the lease period.
(P) The minimum amount of investment provided in subsection
(B)(3) of this section may not be reduced except by a special vote
which, for purposes of this section, means an affirmative vote in
each branch of the General Assembly by two-thirds of the members
present and voting, but not less than three-fifths of the total
membership in each branch.
(Q)(1) The investor shall file the returns, contracts, and other
information which may be required by the department.
(2) Fee payments, and returns showing investments are due at
the same time as property tax payments and property tax returns
would be due if the property were owned by the party obligated to
make the fee payments and file the returns.
(3) Failure to make a timely fee payment and file required
returns shall result in penalties being assessed as if the payment or
return were a property tax payment or return.
(4) The department may issue the rulings and promulgate
regulations it determines necessary or appropriate to carry out the
purpose of this section.
(5) The provisions of Chapters 4 and 54 of Title 12
applicable to property taxes shall apply to this section; and for
purposes of such application, the fee is considered a property tax.
Sections 12-54-80 and 12-54-155 do not apply to this section.
(6) If the entity subject to the fee fails to make the fee lease
payments as provided by the agreements between the entity and the
county, upon ninety days' notice, the county may terminate the fee
and lease agreement and sell the property to which the county has
title free from any claim by the entity.
(R) All references in this section to taxes must be considered to
mean South Carolina taxes unless otherwise expressly stated.
Section 4-12-40. Projects with respect to which a lease agreement
has been entered into before the effective date of this chapter are
required to use the provisions of Section 4-29-67. Projects with
respect to which a lease agreement is entered into after December
31, 1995 are required to use the provisions contained in this
chapter. However, those projects in which the total investment
exceeds forty-five million dollars within the time provided in
subsection (C)(2) have the option of using the provisions contained
in Section 4-29-67 or 4-12-30.
Section 4-12-50. If any provision of this chapter or its
application to any circumstance is held by a court of competent
jurisdiction to be invalid for any reason, this holding does not affect
other provisions or applications of this chapter which can be given
effect without the invalid provision or application, and to this end,
the provisions of this chapter are severable."
SECTION 2. Subsections (A), (B), and (C) of Section 4-29-68
of the 1976 Code, as last amended by Act 123 of 1993, are further
amended to read:
"(A) A county or municipality or special purpose district
that receives and retains revenues from a payment in lieu of taxes
pursuant to Section 4-29-60, or Section 4-29-67,
Section 4-12-20, or Section 4-12-30 may issue special source
revenue bonds secured by and payable from all or a part of such
revenues, subject to the following terms and conditions:
(1) The issuance of bonds is authorized by a duly adopted
ordinance of the governing body of the issuer or, if the issuer is a
special purpose district, an ordinance of the county council or
councils in the county or counties in which the special purpose
district is located, and a resolution of the governing body of the
issuer, after a public hearing is held at least fifteen days after notice
of the hearing is published in a newspaper of general circulation in
the county or municipality or special purpose district.
(2) The bonds are issued solely for the purpose of paying the
cost of designing, acquiring, constructing, improving, or expanding
the infrastructure serving the issuer in order to enhance the
economic development of the issuer and costs of issuance of the
bonds. For purposes of this section, infrastructure includes
improved and unimproved real property. Bonds issued pursuant to
this section to finance the acquisition of real or personal property
may be additionally secured by a mortgage of that real or personal
property.
(3) The bonds may include amounts for capitalized interest
for a period not to extend beyond the later of (a) the date that is
three years from the date of issuance of the bonds and (b) the first
date on which any ad valorem taxes (including, but not limited to,
county or school district taxes) would have been payable on the
property (other than unimproved real property) which is the subject
of the payment in lieu of taxes.
(4) The issuer may use proceeds of the bonds (including by
establishment of a reserve fund to be used) (a) directly for
infrastructure owned or controlled by the issuer or (b) to make
loans or grants to, or to participate in joint undertakings with, other
agencies or political subdivisions of the State that own or control
the infrastructure referred to in item (2) of this subsection.
(5) The bonds are, and must state on their face that they are,
(a) payable solely from all or a specifically described part of the
payments in lieu of taxes received and retained by the issuer under
Section 4-29-60, Section 4-29-67, Section 4-12-20, Section
4-12-30, or Section 13 of Article VIII of the Constitution of
this State, (b) not secured by, or in any way entitled to, a pledge of
the full faith, credit, or taxing power of the issuer, (c) not an
indebtedness of the issuer within the meaning of any state
constitutional provision or statutory limitation but are payable solely
from a special source that does not include revenues from any tax
or license, and (d) not a pecuniary liability of the issuer or a charge
against the issuer's general credit or taxing power.
(6) The ordinance authorizing the issuance of the bonds shall
specifically describe the portion of the payments in lieu of taxes
received and retained by the issuer from which the bonds are
payable and by which the bonds are secured.
(7) The bonds may be executed and delivered at any time as
a single issue or from time to time as several issues, be in the form
and denominations, be of the tenor, be payable in the installments
and at the time or times not to exceed the time over which
payments in lieu of taxes are scheduled to be received, be subject to
the terms of redemption, be payable at the place or places, bear
interest at the rate or rates which is payable at the place or places,
and contain provisions not inconsistent with this section, all of
which must be provided in the ordinance authorizing the bonds.
(8) The bonds may be sold at public or private sale at the
prices and in the manner and from time to time as may be
determined by the governing board to be most advantageous, and
the governing board may pay, as a part of the costs described in
item (2) of this subsection, and out of the bond proceeds, all
expenses, premiums, commissions, and expenses which the
governing board considers necessary or advantageous in connection
with the authorization, sale, and issuance of the bonds.
(9) The ordinance may provide for the issuance, in the future,
of further bonds on a parity with those initially issued, but the
proceedings may preclude the issuance of bonds or any obligations
of any sort secured by a lien prior to the lien of the bond or bonds
afterward issued on a parity with the bonds.
(10) Pending the issuance of bonds, bond anticipation notes
may be issued, and to the end that a vehicle be provided therefor,
the provisions of Section 11-17-10 to Section 11-17-110, as now or
hereafter amended, are applicable to the bond anticipatory
borrowing.
(11) The ordinance authorizing the issuance of the bonds may
contain agreements and provisions customarily contained in the
instruments securing revenue or special source bonds as the
governing board considers advisable, but the issuer does not have
the power to obligate itself to impose or maintain any particular
level of tax rates.
(B) A county or municipality or special purpose district that
receives and retains revenues from a payment in lieu of taxes
pursuant to Section 4-29-60, or Section 4-29-67,
Section 4-12-20, or Section 4-12-30 may pledge the revenues
as additional security for general obligation debt or revenue debt of
the issuer if the general obligation debt or revenue debt is issued in
accordance with items (1) and (2) of this subsection.
(C) A county or municipality or special purpose district that
receives and retains revenues from a payment in lieu of taxes
pursuant to Section 4-29-60, or Section 4-29-67,
Section 4-12-20, or Section 4-12-30 may pledge the revenues
as additional security for general obligation debt or revenue debt of
other agencies or political subdivisions of the State referred to in
item (4)(b) of this subsection if the pledge is authorized by a
duly-adopted ordinance of the governing body of the county or
municipality or special purpose district after a public hearing is held
at least fifteen days after notice of the hearing is published in a
newspaper of general circulation in the county or municipality or
special purpose district, and if the general obligation debt or
revenue debt to which the revenues received from a payment in lieu
of taxes are pledged is issued solely for the purpose of paying the
cost of designing, acquiring, constructing, improving, or expanding
the infrastructure serving the county or municipality or special
purpose district in order to enhance the economic development of
the county or municipality or special purpose district and costs of
issuance of the bonds."
SECTION 3. Section 12-7-1220(J)(1) of the 1976 Code, as
added by Act 164 of 1993, is amended to read:
"(1) If a corporation qualifies to use the fee in lieu of
property taxes provided in Section Sections 4-29-67
or 4-12-30 and fails to qualify for a credit under this
section solely because it is an S corporation, then each of the
shareholders of the S corporation qualifies for a nonrefundable
credit against taxes imposed pursuant to Section 12-7-210."
SECTION 4. Upon approval by the Governor, this act is
effective for taxable years beginning after 1995.
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