S 1055 Session 112 (1997-1998)
S 1055 Joint Resolution, By Drummond, Bryan, Courson, Elliott, Ford, Holland,
Lander, Mescher, O'Dell, Reese, Short and J.V. Smith
Similar(H 3654, H 3904)
A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 1, ARTICLE X OF THE
CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO ASSESSMENT RATIOS AND
CLASSES OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO CREATE A NEW
CLASS OF PERSONAL PROPERTY REQUIRED TO BE TITLED BY A STATE OR FEDERAL AGENCY,
NOT INCLUDING UNITS OF MANUFACTURED HOUSING, ASSESSED AT TEN AND ONE-HALF
PERCENT OF FAIR MARKET VALUE OR SOME PERCENTAGE LESS THAN TEN AND ONE-HALF
PERCENT BUT NOT LESS THAN SIX PERCENT SET BY THE GOVERNING BODY OF THE COUNTY
IN CONSULTATION WITH ALL PROPERTY TAXING ENTITIES IN THE COUNTY.
02/19/98 Senate Introduced and read first time SJ-3
02/19/98 Senate Referred to Committee on Finance SJ-3
03/27/98 Senate Recalled from Committee on Finance SJ-2
03/31/98 Senate Read second time SJ-19
03/31/98 Senate Ordered to third reading with notice of
amendments SJ-19
04/01/98 Senate Read third time and sent to House SJ-16
04/02/98 House Introduced and read first time HJ-7
04/02/98 House Referred to Committee on Ways and Means HJ-7
Indicates Matter Stricken
Indicates New Matter
RECALLED
March 27, 1998
S. 1055
Introduced by Senators Drummond, Bryan, Lander, Courson,
J. Verne Smith, Elliott, Mescher, O'Dell, Ford, Reese, Short and
Holland
S. Printed 3/27/98--S.
Read the first time February 19, 1998.
STATEMENT OF ESTIMATED FISCAL
IMPACT
This joint resolution has no impact on state revenue. This joint
resolution has the potential to cause a shift in tax incidence pursuant
to Section 6-1-85(b).
This joint resolution would allow the governing body of the county
in consultation with all property taxing entities in the county to lower
the assessment ratio from 10.5% to 6.0% on cars, boats, motors, and
aircrafts.
Approved By:
William C. Gillespie
Board of Economic Advisors
STATEMENT OF ESTIMATED FISCAL
IMPACT
This joint resolution would have no negative impact on local
government revenues. Local governments would adjust their millage
to make up for the shortfall. This joint resolution has the potential to
cause a shift in tax incidence pursuant to Section 6-1-85(b).
This joint resolution would allow the governing body of the county
in consultation with all property taxing entities in the county to lower
the assessment ratio from 10.5% to 6.0% on cars, boats, motors, and
aircrafts. Taxpayers are estimated to remit approximately $547
million in local property taxes for these classes of property in FY
1998-99. If all counties lowered the assessment ratio to 6.0% of
these properties, local governments would lose approximately $234
million in FY 1998-99 if they did not adjust their millage. It is
assumed that local governments would adjust their millage upward
on all classes of property to make up this shortfall.
Approved By:
William C. Gillespie
Division of Budget &
Analysis
STATEMENT OF ESTIMATED FISCAL
IMPACT
This joint resolution would change the incidence of local property
taxes among classes of property. Those changes from the levels that
would occur in the absence of this joint resolution are as follows:
Category ($ Million) FY 1998 FY 1999 FY 2000 FY 2001FY 2002
Personal Property (Vehicles) 0 -191 -204 -217-231
Boats, motors, planes,
commercial cars 0 -14 -14 -15-15
Business Personal 0 8 8 88
Manufacturing 0 40 42 4547
Utility 0 26 27 2930
Commercial / Rental 0 66 68 7275
Owner-Occupied 0 64 70 7683
Agriculture Private 0 2 2 22
Agriculture Corporate 0 1 1 11
The analysis projects the local revenue requirements from current
property taxes at its historical rate of 5.2% per year. A baseline
projection in the absence of this joint resolution for taxes in each
category shown above was made according to its historical rate of
growth. It is anticipated that local taxing entities would not enact
other taxes to compensate for any shortfall. A projection was made
changing the assessment ratio from 10.5% to 6.0% on the affected
classes (Personal Property (Vehicles) and boats, motors, planes,
commercial cars). The millage was then adjusted to meet the local
revenue requirements from the property tax. It was assumed that all
taxing entities would lower the assessment ratio to the 6.0% allowed
under this joint resolution. The personal property effected by this
assessment ratio change includes cars, boats, motors, and aircrafts.
The baseline FY 1999 revenue estimate for these categories of
personal property is $547 million.
Approved By:
William C. Gillespie
Division of Budget &
Analysis
A JOINT RESOLUTION
PROPOSING AN AMENDMENT TO SECTION 1, ARTICLE X OF
THE CONSTITUTION OF SOUTH CAROLINA, 1895,
RELATING TO ASSESSMENT RATIOS AND CLASSES OF
PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS
TO CREATE A NEW CLASS OF PERSONAL PROPERTY
REQUIRED TO BE TITLED BY A STATE OR FEDERAL
AGENCY, NOT INCLUDING UNITS OF MANUFACTURED
HOUSING, ASSESSED AT TEN AND ONE-HALF PERCENT OF
FAIR MARKET VALUE OR SOME PERCENTAGE LESS THAN
TEN AND ONE-HALF PERCENT BUT NOT LESS THAN SIX
PERCENT SET BY THE GOVERNING BODY OF THE COUNTY
IN CONSULTATION WITH ALL PROPERTY TAXING
ENTITIES IN THE COUNTY.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. It is proposed that Section 1(8), Article X of the
Constitution of this State is amended to read:
"(8) (A) Except as provided in subitem (B) of this
item, all other personal property shall must be
taxed on an assessment equal to ten and one-half percent of the fair
market value of such the property.
(B) Personal property otherwise assessed pursuant to
subitem (A) of this item required to be titled by a state or federal
agency, not including units of manufactured housing, must be taxed
on an assessment equal to ten and one-half percent of fair market
value or some percentage of fair market value less than ten and
one-half percent but not less than six percent as may be set by the
governing body of the county in consultation with all property taxing
entities in the county."
SECTION 2. The proposed amendment must be submitted to the
qualified electors at the next general election for representatives.
Ballots must be provided at the various voting precincts with the
following words printed or written on the ballot:
"Must Section 1(8), Article X of the Constitution of this State,
be amended so as to establish a separate class of property for
purposes of the property tax consisting of personal property required
to be titled by a state or federal agency, not including units of
manufactured housing, which may be assessed for property tax at a
percentage of fair market value less than ten and one-half percent but
not less than six percent as may be set by the governing body of the
county in consultation with all property taxing entities in the county?
Yes []
No []
Those voting in favor of the question shall deposit a ballot with a
check or cross mark in the square after the word 'Yes', and those
voting against the question shall deposit a ballot with a check or cross
mark in the square after the word 'No'."
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