H 4661 Session 112 (1997-1998)
H 4661 General Bill, By Quinn, Allison, Altman, Bailey, Barrett, Bauer,
H. Brown, J. Brown, A.W. Byrd, Campsen, Canty, Cato, Chellis, Clyburn, Cooper,
Cotty, Davenport, Edge, Harrell, Harrison, Haskins, Howard, B.L. Jordan, Keegan,
Kelley, Kirsh, Knotts, Lanford, Law, Leach, Limehouse, Mason, J.G. McAbee,
McKay, J.D. McMaster, Neilson, Phillips, Riser, Rodgers, Sandifer, Seithel,
D. Smith, J. Smith, R. Smith, Stille, Stuart, Townsend, Tripp, Trotter, Whatley,
Wilkins, Woodrum, W.J. Young and Young-Brickell
Similar(S 940, H 4847)
A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
12-37-460 SO AS TO ESTABLISH THE PERSONAL PROPERTY TAX RELIEF FUND, PROVIDE
FOR REVENUES TO BE CREDITED TO IT, TO USE THE REVENUES OF THE FUND TO PROVIDE
FOR REIMBURSEMENTS TO LOCAL TAXING ENTITIES FOR A PHASED-IN EXEMPTION FROM
PROPERTY TAX OF PROPERTY CLASSIFIED AS "ALL OTHER PERSONAL PROPERTY", TO
PROVIDE THE METHOD OF CALCULATING THE EXEMPTION AND REIMBURSEMENT, AND TO
PROVIDE THE CIRCUMSTANCES UNDER WHICH THE EXEMPTION BECOMES TOTAL AND
PERMANENT.
02/18/98 House Introduced and read first time HJ-42
02/18/98 House Referred to Committee on Ways and Means HJ-43
03/02/98 House Member(s) added as co-sponsor(s): Rep(s) Rodgers HJ-5
03/18/98 House Member(s) added as co-sponsor(s): Rep(s) McKay HJ-26
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING SECTION 12-37-460 SO AS TO ESTABLISH
THE PERSONAL PROPERTY TAX RELIEF FUND, PROVIDE
FOR REVENUES TO BE CREDITED TO IT, TO USE THE
REVENUES OF THE FUND TO PROVIDE REIMBURSEMENTS
TO LOCAL TAXING ENTITIES FOR A PHASED-IN
EXEMPTION FROM PROPERTY TAX OF PROPERTY
CLASSIFIED AS "ALL OTHER PERSONAL
PROPERTY", TO PROVIDE THE METHOD OF
CALCULATING THE EXEMPTION AND REIMBURSEMENT,
AND TO PROVIDE THE CIRCUMSTANCES UNDER WHICH
THE EXEMPTION BECOMES TOTAL AND PERMANENT.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Article 3, Chapter 37, Title 12 of the 1976 Code is
amended by adding:
"Section 12-37-460. (A) As used in this section:
(1) 'Local base payment' means an amount equal to the revenue
received by a taxing entity from nondelinquent property tax on
personal property collected in the 1998 calendar year.
(2) 'Personal property' means that property classified as 'all
other personal property' pursuant to Section 1(8), Article X of the
Constitution of this State.
(3) 'Taxing entity' means a county, municipality, school district,
or special purpose or public service district.
(4) 'Total base payment' means an amount equal to the total
revenue received by all taxing entities in this State from
nondelinquent property tax on personal property collected in the 1998
calendar year.
(B) There is established in the State Treasury the Personal Property
Tax Relief Fund, separate and distinct from all other funds, to which
must be credited amounts provided in subsection (C) of this section.
Revenues in this fund must be used to provide taxing entities the
reimbursement required pursuant to this section for property tax not
collected because of the exemption allowed by this section.
(C) Annually, the Board of Economic Advisors shall remove from
its estimated revenue projection for the succeeding fiscal year an
amount equal to thirty percent of projected year-to-year general fund
revenue growth plus the total of all amounts previously credited to
the Personal Property Tax Relief Fund by transfer, but not more than
the total base payment. This amount is not available for
appropriation and is not considered a part of the general fund of the
State for purposes of appropriation formulas based on percentages of
general fund revenues. The State Budget and Control Board shall
transfer at the beginning of each fiscal year to the Personal Property
Tax Relief Fund all amounts removed from the general fund revenue
estimate pursuant to this section. When the exemption allowed by this
section first equals one hundred percent of fair market value of the
affected property and thereafter, the amount annually transferred
must equal the total base payment.
(D) (1) From revenues credited to the Personal Property Tax
Relief Fund for a fiscal year, the director of the Department of
Revenue shall calculate and prescribe a uniform percentage of fair
market value of personal property that is exempt from property tax
that shall apply for such property for the applicable tax year. The
calculation must be based on the percentage that the amount in the
fund for the year is of the total base payment.
(2) At the time the amount available in the Personal Property
Tax Relief Fund first equals the total base payment, then for that year
and subsequent years personal property is wholly exempt from
property tax.
(E)(1) During the phase-in of the exemption allowed by this
section, all property taxing entities shall adjust the millage imposed
on personal property to a millage, which when added to the taxing
entity's reimbursement under this section, does not exceed the local
base payment. In no case may the millage exceed the 1998 property
tax millage rate.
(2) A taxing entity must be reimbursed during each year an
amount equal to the exemption percentage for the year multiplied by
its local base payment. The reimbursement must be paid in a manner
that substantially reflects the stream of revenues that would occur if
this property were not exempt.
(F) Notwithstanding any other provision of law, property
exempted from property tax as provided in this section is considered
taxable property for purposes of bonded indebtedness pursuant to
Sections 14 and 15, 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, only that assessed value applicable
for such property for the 1998 property tax year may be so
considered."
SECTION 2. This act takes effect upon ratification of an
amendment to the Constitution of this State providing for the separate
assessment of property taxes on property classified as "all other
personal property" pursuant to Section 1(8), Article X of the
Constitution of this State and which fixes the millage imposed on
such property to no more than the millage rate imposed on it for
property tax years beginning in 1998. Upon such ratification, the
exemption allowed pursuant to Section 12-37-460 of the 1976 Code,
as added by this act, first applies for the 1999 property tax year
except that for motor vehicle taxes paid in advance, the exemption
first applies for motor vehicle tax years beginning after June, 1999.
Regardless of the effective date of this act, no refund is allowed for
the exemption allowed by this act as a result of an effective date
occurring after June, 1999.
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