H 4492 Session 111 (1995-1996)
H 4492 General Bill, By Wilkins, H. Brown, J. Brown, B.D. Cain, Cato, Cotty,
Easterday, Fleming, R.C. Fulmer, Gamble, Harrell, Harrison, Haskins, Klauber,
Knotts, Rice, Meacham, Riser, Robinson, Sandifer, Seithel, Sharpe, D. Smith,
Townsend, Tripp, Vaughn, C.C. Wells, Whatley, Witherspoon, S.S. Wofford and
Young-Brickell
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
6-1-85 so as to prohibit municipalities, counties, special purpose or public
service districts from imposing taxes or fees on individuals, corporations, or
other business entities and to exempt from this prohibition taxes and fees
enacted before December 31, 1995, or taxes and fees authorized expressly by
the General Assembly.
01/24/96 House Introduced and read first time HJ-13
01/24/96 House Referred to Committee on Judiciary HJ-13
02/07/96 House Committee report: Favorable with amendment
Judiciary HJ-4
02/08/96 House Objection by Rep. Wilkins, Simrill, Wells,
Allison, McCraw, Richardson, Vaughn, Meacham,
Harrison, Keyserling, J. Young, Phillips, R.
Smith, Marchbanks, Loftis, Littlejohn,
Davenport, Wilkes, Stuart, Bailey & Askins HJ-13
02/13/96 House Debate adjourned until Tuesday, February 20, 1996 HJ-33
02/21/96 House Amended HJ-43
02/21/96 House Read second time HJ-61
02/21/96 House Roll call Yeas-65 Nays-47 HJ-61
02/22/96 House Reconsider vote whereby read second time HJ-36
03/06/96 House Retaining place on calendar recommitted to
Committee on Judiciary HJ-17
03/07/96 House Recalled from Committee on Judiciary HJ-14
03/12/96 House Debate adjourned until Tuesday, March 19, 1996 HJ-14
03/20/96 House Debate adjourned until Wednesday, March 27, 1996 HJ-46
04/17/96 House Debate adjourned until Wednesday, April 24, 1996 HJ-62
04/24/96 House Recommitted to Committee on Judiciary HJ-350
RECALLED
March 7, 1996
H. 4492
Introduced by REPS. Wilkins, Rice, Meacham, Whatley, Klauber,
Wofford, Seithel, Fulmer, Knotts, Sharpe, H. Brown, Harrell,
Easterday, Haskins, Cato, D. Smith, Townsend, Fleming,
Young-Brickell, Cotty, J. Brown, Harrison, Vaughn, Cain, Sandifer,
Witherspoon, Tripp, Robinson, Wells, Gamble and Riser
S. Printed 3/7/96--H.
Read the first time January 24, 1996.
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING SECTION 6-1-85 SO AS TO PROHIBIT
MUNICIPALITIES, COUNTIES, SPECIAL PURPOSE OR
PUBLIC SERVICE DISTRICTS FROM IMPOSING TAXES OR
FEES ON INDIVIDUALS, CORPORATIONS, OR OTHER
BUSINESS ENTITIES AND TO EXEMPT FROM THIS
PROHIBITION TAXES AND FEES ENACTED BEFORE
DECEMBER 31, 1995, OR TAXES AND FEES AUTHORIZED
EXPRESSLY BY THE GENERAL ASSEMBLY.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Article 1, Chapter 9, Title 4 of the 1976 Code is
amended by adding:
"Section 4-9-142. (A) The governing body of a county
may not impose any new tax after December 31, 1995, unless the
tax is specifically authorized by the General Assembly by general
law. The governing body of a county may not increase tax or
uniform service charge rates, excluding utilities, imposed for any
purposes above the rates imposed for such purposes for the prior
tax year. However, rates may be increased by the percentage
increase in the Consumer Price Index based upon the southeastern
average. Notwithstanding the limitations contained in this
subsection, rates may be increased for the following purposes:
(1) to offset a prior year's deficit, as required by Section 7,
Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial
mandates requiring the use of county funds, personnel, facilities, or
equipment; or
(3) millage which is levied to pay bonded indebtedness or
payments for real property purchased using a lease-purchase
agreement or used to maintain a reserve account. Nothing in this
section prohibits the use of energy saving performance contracts as
provided in Section 48-52-670.
(B) Existing tax and uniform service charge rates may be further
increased only upon a two-thirds vote of the governing body of the
county. However, if the governing body has fewer than six
members or more than twelve members, a three-fifths vote is
required. Additionally, no supermajority is required to further
increase the rate of the charges specifically authorized by this
subsection if, in a referendum held for this purpose, a majority of
the qualified electors of the county voting in the referendum
approve the imposition of the increased rate of the existing charge.
The referendum must be held only in that portion of the county
where the rates of such charges are to be raised. This subsection
does not apply to the vote of a county council in the preparation or
adoption of the budget of a school district that is not fiscally
autonomous.
(C) The imposition of a new tax expressly authorized by the
General Assembly by general law or a new uniform service charge
requires a two-thirds vote of the governing body of the county
except that if the governing body is comprised of fewer than six
members or more than twelve members, a three-fifths majority is
required.
(D)(1) Notwithstanding any other provision of law, the
governing body of a county may by ordinance impose a uniform
service charge on accommodations provided transients and on food
and beverages served in establishments licensed for on-premises
consumption. The maximum rate that may be imposed on
accommodations is three percent of the measure of the charge and
in the case of food and beverages, one percent of the measure of
the charge. However, when a charge is imposed on food and
beverages, the maximum rate of the accommodations charge is two
percent. The charges authorized by this subsection may be imposed
within an incorporated area of the county only with the approval of
a two-thirds majority of the governing body of the affected
municipality and these charges cannot be imposed in a municipality
which has imposed either or both of these charges within its
jurisdiction. The charges authorized by this subsection may be
imposed or raised only in the manner provided in subsection (C)
except that no supermajority is required to impose or increase the
rate of the charges specifically authorized by this subsection if, in a
referendum held for this purpose, a majority of the qualified
electors of the county voting in the referendum approve the
imposition of the new charge or the increased rate of the existing
charge. The referendum must be held only in that portion of the
county where the charges are to be imposed or rates of such charges
raised. The maximum rates provided in this subsection may not be
exceeded regardless of the method of imposition.
(2) The revenues of the charges authorized by this subsection
may be used only for:
(a) the development, design, and construction of facilities
for civic and meeting activities including required sewer, water,
roads, and infrastructure;
(b) the control of waterfront erosion; and
(c) construction and maintenance of major tourist access
highways in those counties which have a high concentration of
tourism and travel activity. `High concentration of tourism and
travel activity' is defined as those counties generating three million
or more dollars in state accommodations tax in the 1994-95 fiscal
year. This base rate must be adjusted upward annually by the
consumer price index for the southeastern United States.
(3) Nothing in this subsection may be construed as
authorizing additional charges on accommodations and food and
beverages when the governing body of the county enacted before
1996 taxes, fees, or uniform service charges on these items
measured substantially in the same manner. To the extent that the
maximum charge rates authorized in this subsection have not been
exceeded in cumulative local impositions occurring before 1996,
any rate increases are allowed only as provided in this subsection.
(E) For the tax year of implementation of the values determined
by a countywide equalization and reassessment program, the millage
rate for all real and personal property must not exceed the rollback
millage, as defined in this subsection, except that the rollback
millage may be increased by the percentage increase in the
consumer price index, based on the southeastern average, for the
year immediately preceding the year the reassessment values are
implemented. The millage rate may be further increased during the
year of implementation of reassessment values upon a two-thirds
vote of the governing body. However, if the governing body has
fewer than six members, a three-fifths vote is required. For
purposes of this subsection, the rollback millage rate is computed
by dividing the budget year property tax assessment base by the
current year's property tax revenues."
SECTION 2. Article 1, Chapter 21, Title 5 of the 1976 Code is
amended by adding:
"Section 5-21-70. (A) The governing body of a
municipality may not impose any new tax after December 31, 1995,
unless the tax is specifically authorized by the General Assembly by
general law. The governing body of a municipality may not
increase tax or uniform service charge rates, excluding utilities,
imposed for any purposes above the rates imposed for such
purposes for the prior tax year. However, rates may be increased
by the percentage increase in the Consumer Price Index based upon
the southeastern average. Notwithstanding the limitations contained
in this subsection, rates may be increased for the following
purposes:
(1) to offset a prior year's deficit, as required by Section 7,
Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial
mandates requiring the use of municipal funds, personnel, facilities,
or equipment; or
(3) millage which is levied to pay bonded indebtedness or
payments for real property purchased using a lease-purchase
agreement or used to maintain a reserve account. Nothing in this
section prohibits the use of energy saving performance contracts as
provided in Section 48-52-670.
(B) Except as provided in subsection (D) and notwithstanding
any provision of law, tax and uniform service charge rates may be
further increased only upon a two-thirds vote of the governing body
of the municipality. However, if the governing body has fewer
than six members or more than twelve members, a three-fifths vote
is required.
(C) The imposition of a new tax expressly authorized by the
General Assembly by general law or a new uniform service charge
requires a two-thirds vote of the governing body of the municipality
except that if the governing body is comprised of fewer than six
members or more than twelve members, a three-fifths majority is
required.
(D)(1) Notwithstanding any other provision of law, the
governing body of a municipality by ordinance may impose a
uniform service charge on accommodations provided transients
within the municipality and on food and beverages served in
establishments located in the municipality licensed for on-premises
consumption. The maximum rate that may be imposed on
accommodations is three percent of the measure of the charge and
in the case of food and beverages, one percent of the measure of
the charge. However, when a charge is imposed on food and
beverages, the maximum rate of the accommodations charge is two
percent. The charges authorized by this subsection may be imposed
or raised only in the manner provided in subsection (C) except that
no supermajority is required to impose or increase the rate of the
charges specifically authorized by this subsection if, in a
referendum held for this purpose, a majority of the qualified
electors of the municipality voting in the referendum approve the
imposition of the new charge or the increased rate of the existing
charge. The maximum rates provided in this subsection may not be
exceeded regardless of the method of imposition.
(2) The revenues of the charges authorized by this subsection
may be used only for:
(a) the development, design, and construction of facilities
for civic and meeting activities including required sewer, water,
roads, and infrastructure;
(b) the control of waterfront erosion; and
(c) construction and maintenance of major tourist access
highways in those counties which have a high concentration of
tourism and travel activity. For purposes of this subitem, `high
concentration of tourism and travel activity' is defined as those
counties generating three million or more dollars in state
accommodations tax in the 1994-95 fiscal year. This base rate must
be adjusted upward annually by the consumer price index for the
southeastern United States.
(3) Nothing in this subsection may be construed as
authorizing additional charges on accommodations and food and
beverages when the governing body of the municipality enacted
before 1996 taxes, fees, or uniform service charges on these items
measured substantially in the same manner. To the extent that the
maximum charge rates authorized in this subsection have not been
exceeded in cumulative local impositions occurring before 1996,
any rate increases are allowed only as provided in this subsection.
(E) For the tax year of implementation of the values determined
by a countywide equalization and reassessment program, the millage
rate for all real and personal property must not exceed the rollback
millage, as defined in this subsection, except that the rollback
millage may be increased by the percentage increase in the
consumer price index, based on the southeastern average, for the
year immediately preceding the year the reassessed values are
implemented. The millage rate may be further increased during the
year of implementation of reassessment values upon a two-thirds
vote of the governing body. However, if the governing body has
fewer than six members, a three-fifths vote is required. For
purposes of this subsection, the rollback millage rate is computed
by dividing the budget year property tax assessment base by the
current year's property tax revenues."
SECTION 3. If any section, subsection, paragraph,
subparagraph, sentence, clause, phrase, or word of this act is for
any reason held to be unconstitutional or invalid, such holding shall
not affect the constitutionality or validity of the remaining portions
of this act, the General Assembly hereby declaring that it would
have passed this act, and each and every section, subsection,
paragraph, subparagraph, sentence, clause, phrase, and word thereof,
irrespective of the fact that any one or more other sections,
subsections, paragraphs, subparagraphs, sentences, clauses, phrases,
or words hereof may be declared to be unconstitutional, invalid, or
otherwise ineffective.
SECTION 4. That portion of Section 4-9-30(5)(a) of the 1976
Code before subitem (i) is amended to read:
"(a) to assess property and levy ad valorem property
taxes and uniform service charges, including the power to
tax different areas at different rates related to the nature and level
of governmental services provided and make appropriations for
functions and operations of the county, including, but not limited
to, appropriations for general public works, including roads,
drainage, street lighting, and other public works; water treatment
and distribution; sewage collection and treatment; courts and
criminal justice administration; correctional institutions; public
health; social services; transportation; planning; economic
development; recreation; public safety, including police and fire
protection, disaster preparedness, regulatory code enforcement;
hospital and medical care; sanitation, including solid waste
collection and disposal; elections; libraries; and to provide for the
regulation and enforcement of the above them.
However, prior to before the creation of a special
tax district for the purposes enumerated in this item, one of the
following procedures is required:"
SECTION 5. Section 4-9-30 of the 1976 Code, as last amended
by Act 405 of 1994, is further amended by adding after item (5)
and before item (6):
"(5.1) to levy a uniform service charge on a portion of the
community which will receive special benefit as a result of the
improvement made with the proceeds of the charge; the service
charge must be maintained in a dedicated fund, the proceeds
specifically allocated to the specific use and purpose for which the
charge is levied and the revenues collected must not exceed the cost
of the improvements made with the proceeds of the charge. Any
revenues collected heretofore and described as a fee or charge now
must be termed a uniform service charge and must conform to the
requirements of this item."
SECTION 6. Section 5-7-30 of the 1976 Code, as last amended
by Act 171 of 1993, is further amended to read:
"Section 5-7-30. Each municipality of the State, in
addition to the powers conferred to its specific form of government,
may enact regulations, resolutions, and ordinances, not inconsistent
with the Constitution and general law of this State, including the
exercise of powers in relation to roads, streets, markets, law
enforcement, health, and order in the municipality or respecting any
subject which appears to it necessary and proper for the security,
general welfare, and convenience of the municipality or for
preserving health, peace, order, and good government in it,
including the authority to levy and collect taxes on real and
personal property and as otherwise authorized in this section, make
assessments, and establish uniform service charges relating
to them; the authority to abate nuisances; the authority to provide
police protection in contiguous municipalities and in unincorporated
areas located not more than three miles from the municipal limits
upon the request and agreement of the governing body of
such the contiguous municipality or the county,
including agreement as to the boundaries of such police
jurisdictional areas, in which case the municipal law enforcement
officers shall have the full jurisdiction, authority, rights, privileges,
and immunities, including coverage under the workers'
compensation law, which they have in the municipality, including
the authority to make arrests, and to execute criminal process within
the extended jurisdictional area; provided, however, that this
shall does not extend the effect of the laws of the
municipality beyond its corporate boundaries; grant franchises for
the use of public streets and make charges for them; engage in the
recreation function; levy a business license tax on gross income, but
a wholesaler delivering goods to retailers in a municipality is not
subject to the business license tax unless he the
wholesaler maintains within the corporate limits of the
municipality a warehouse or mercantile establishment for the
distribution of wholesale goods; and a business engaged in making
loans secured by real estate is not subject to the business license tax
unless it has premises located within the corporate limits of the
municipality and no entity which is exempt from the license tax
under another law nor or a subsidiary or affiliate of
an exempt entity is subject to the business license tax; borrow in
anticipation of taxes; and pledge revenues to be collected and the
full faith and credit of the municipality against its note and conduct
advisory referenda. The municipal governing body may fix fines
and penalties for the violation of municipal ordinances and
regulations not exceeding five hundred dollars or imprisonment not
exceeding thirty days, or both.
For the purpose of providing and maintaining parking for the
benefit of a downtown commercial area, a municipality may levy a
surtax upon the business license of a person doing business in a
designated area in an amount not to exceed fifty percent of the
current yearly business license tax upon terms and conditions fixed
by ordinance of the municipal council. The area must be designated
by council only after a petition is submitted by not less than
two-thirds of the persons paying a business license tax in the area
and who paid not less than one-half of the total business license tax
collected for the preceding calendar year requesting the designation
of the area. The business within the designated area which is
providing twenty-five or more parking spaces for customer use is
required to pay not more than twenty-five percent of a surtax levied
pursuant to the provisions of this paragraph.
The municipality may levy a uniform service charge on a
portion of the community which will receive special benefit as a
result of the improvement made with the proceeds of the charge;
the service charge must be maintained in a dedicated fund, the
proceeds specifically allocated to the specific use and purpose for
which the charge is levied and the revenues collected must not
exceed the cost of the improvements made with the proceeds of the
charge. Any revenues collected heretofore and described as a fee or
charge now must be termed a uniform service charge and must
conform to these requirements."
SECTION 7. Section 4-29-67 of the 1976 Code, as last
amended by Act 32 of 1995, is further amended by adding an
appropriately lettered subsection at the end to read:
"( ) The provisions of Sections 4-9-142 and 5-21-70 do
not apply with respect to calculating the fee in lieu of taxes allowed
pursuant to this section and Chapter 12 of this title."
SECTION 8. A. Chapter 1, Title 6 of the 1976 Code is
amended by adding:
"Section 6-1-85. Municipalities, counties, school districts,
or special purpose districts may not impose any fee or tax of any
nature or description on the transfer of real property unless the
General Assembly has expressly authorized by general law the
imposition of the fee or tax.
B. Notwithstanding the provisions of Section 6-1-85 of the
1976 Code as added by this act, the governing body of any
municipality, county, school district, or special purpose district
which has enacted and collected any fee or tax which is charged on
the transfer of real estate may continue to collect the fees or taxes
until the earlier of:
(1) the end of the entity's current fiscal year as of the
effective date of this section; or
(2) January 1, 1997.
C. This section takes effect upon approval by the
Governor."
SECTION 9. This act takes effect upon approval by the
Governor.
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