S 1219 Session 110 (1993-1994)
S 1219 General Bill, By Setzler
A Bill to amend Section 59-20-20, as amended, Code of Laws of South Carolina,
1976, relating to the definitions of the index of taxpaying ability for
purposes of the Education Finance Act, so as to provide that the assessments
used are the audited assessments by school district submitted annually to the
Comptroller General, to revise the date by which the auditor must report
audited assessed values from February first to October first and to clarify
and revise reporting requirements; to require the sales ratio data used to
calculate the index to conform to the most recent studies corresponding to the
base year and to define base year, and to provide for the Department of
Revenue and Taxation to provide a preliminary index by November first of each
year and a final index by February first.
03/01/94 Senate Introduced and read first time SJ-4
03/01/94 Senate Referred to Committee on Education SJ-4
04/14/94 Senate Committee report: Favorable Education SJ-22
04/19/94 Senate Read second time SJ-16
04/19/94 Senate Ordered to third reading with notice of
amendments SJ-16
04/20/94 Senate Read third time and sent to House SJ-12
04/21/94 House Introduced and read first time HJ-18
04/21/94 House Referred to Committee on Ways and Means HJ-18
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
April 14, 1994
S. 1219
Introduced by SENATOR Setzler
S. Printed 4/14/94--S.
Read the first time March 1, 1994.
THE COMMITTEE ON EDUCATION
To whom was referred a Bill (S. 1219), to amend Section 59-20-20,
as amended, Code of Laws of South Carolina, 1976, relating to the
definitions of the index of taxpaying ability for purposes of the
Education Finance Act, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and
recommend that the same do pass:
NIKKI G. SETZLER, for Committee.
A BILL
TO AMEND SECTION 59-20-20, AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITIONS
OF THE INDEX OF TAXPAYING ABILITY FOR PURPOSES OF
THE EDUCATION FINANCE ACT, SO AS TO PROVIDE THAT
THE ASSESSMENTS USED ARE THE AUDITED ASSESSMENTS
BY SCHOOL DISTRICT SUBMITTED ANNUALLY TO THE
COMPTROLLER GENERAL, TO REVISE THE DATE BY WHICH
THE AUDITOR MUST REPORT AUDITED ASSESSED VALUES
FROM FEBRUARY FIRST TO OCTOBER FIRST AND TO
CLARIFY AND REVISE REPORTING REQUIREMENTS; TO
REQUIRE THE SALES RATIO DATA USED TO CALCULATE
THE INDEX TO CONFORM TO THE MOST RECENT STUDIES
CORRESPONDING TO THE BASE YEAR AND TO DEFINE BASE
YEAR, AND TO PROVIDE FOR THE DEPARTMENT OF
REVENUE AND TAXATION TO PROVIDE A PRELIMINARY
INDEX BY NOVEMBER FIRST OF EACH YEAR AND A FINAL
INDEX BY FEBRUARY FIRST.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-20-20(3) of the 1976 Code, as last
amended by Section 1570, Act 181 of 1993, is further amended to
read:
"(3) `Index of taxpaying ability' means an index of a local
district's relative fiscal capacity in relation to that of all other districts
of the State based on the full market value of all taxable property of
the district assessed on the basis of property classification assessment
ratios set forth in Article 3, Chapter 43 of Title 12 for the second
completed taxable year preceding the fiscal year in which the index is
used and these assessments must be the audited assessments by
school district contained in the annual report submitted yearly to the
Comptroller General's office.. The county auditor shall provide
fiscal year-end audited assessments of real and personal
property to the Property Division of the Department of
Revenue and Taxation the assessed value of property in
for each of the school districts of the county not later than
February first of each year for the second completed taxable
year preceding the fiscal year in which the index is used not later than
October first of each year. The index must be used to calculate
each district's share of the revenue to be raised locally for the
foundation program. The index must include an imputed value for the
property tax base implicitly generating impact aid revenue. The
property tax base must be imputed at two-thirds the average ratio of
all true value assessed property value statewide to prior year local
revenue statewide in the foundation program, the resulting product
multiplied times the average impact aid receipts during the prior three
years. If impact aid receipts during the federal fiscal year are less
than the average receipts for the prior three years, then state aid to the
impact aid districts must be adjusted in the final payment for the state
fiscal year. If the State Department of Education determines from
fiscal simulations that the school finance system does not meet
requirements of Section 5(D) of P. L. 81-874, the Department of
Revenue and Taxation shall exclude an imputed value of impact aid
receipts from the index of taxpaying ability.
The index must be determined annually by the Department of
Revenue and Taxation on the basis of the most current sales ratio
data available based on studies made from sales ratio data
based on the most recent studies made which correspond with the base
year assessments used to compute the current index pursuant to
Section 12-43-250 for assessed property within a school district. The
sales ratio data utilized must be based on annual ratio studies made
within the previous two calendar years base year is the second
completed taxable year preceding the fiscal year in which the index is
used. The Department of Revenue and Taxation shall provide
the index not later than March first a preliminary index by
November first of each year end and a final index by February first of
each year to the State Department of Education and to the auditor
of each county who shall provide the index to any governmental entity
responsible for approving or levying of millages for school purposes.
Changes and corrections may be made to the index before
March February first but no change is allowed after
that date. When the assessment of property is under appeal and the
appeal extends beyond the year in which the assessment made
pursuant to Section 12-43-305 is applied, the Department of Revenue
and Taxation shall adjust the index of taxpaying ability in the year in
which the appeal is resolved by the amount of any difference between
the assessments. Any school district is entitled to a hearing before
the Department of Revenue and Taxation to review its designated
index of taxpaying ability within thirty days of filing a request for the
hearing. The data gathered by the Department of Revenue and
Taxation for the purpose of determining an annual index must be
preserved as public records in the offices of the Department of
Revenue and Taxation for four years. The raw information gathered
from the various county officers reflecting the representative sales
within the school districts, the consideration, and the reported market
value or assessed value for each sale are a part of the public records
so preserved. The Department of Revenue and Taxation shall file a
statement stating the methodology employed in making the annual
determination of the index and refer to all sources of factual
information used in making the determination. All work sheets,
computer printouts, and the actual calculation must be included as the
public records to be preserved by the Department of Revenue and
Taxation. In determining sales to assessment ratio, the Department
of Revenue and Taxation shall use only reported consideration on sales
for which deeds have been placed on public record. Where sufficient
sales data is not available, the Department of Revenue and Taxation
shall make appraisals in lieu of sales in order to determine the index.
The appraisals, including all working papers, must be included as the
public records to be preserved by the Department of Revenue and
Taxation. With respect to school districts within counties where
abstracts of duplicates reflecting the assessed value have been filed
pursuant to Section 12-39-290, the same having been adopted by the
auditors under Article 3, Chapter 43 of Title 12, the index must be on
the basis of the value of the property as stated in the abstracts as
adjusted by sales ratio studies up to full assessments based on full fair
market value."
SECTION 2. This act takes effect upon approval by the Governor.
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