S 519 Session 111 (1995-1996)
S 0519 General Bill, By Leatherman, Jackson, Martin, McConnell and Passailaigue
A Bill to provide a spending limitation for counties, municipalities, and
special purpose and public service districts and an ad valorem tax revenue
limitation for school districts for fiscal years 1995-96 through 1998-99 and
to provide exceptions.
02/15/95 Senate Introduced and read first time SJ-7
02/15/95 Senate Referred to Committee on Finance SJ-7
A BILL
TO PROVIDE A SPENDING LIMITATION FOR COUNTIES,
MUNICIPALITIES, AND SPECIAL PURPOSE AND PUBLIC
SERVICE DISTRICTS AND AN AD VALOREM TAX
REVENUE LIMITATION FOR SCHOOL DISTRICTS FOR
FISCAL YEARS 1995-96 THROUGH 1998-99 AND TO
PROVIDE EXCEPTIONS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Beginning with county government spending for
fiscal year 1995-96 and ending with county government spending
for fiscal years after 1998-99, total spending by a county
government in a fiscal year may not exceed total county
government spending in the prior fiscal year by more than the
percentage increase in the consumer price index in the twelve
months ending December 31 preceding the fiscal year as determined
by the Bureau of Labor Statistics of the United States Department
of Labor. Total spending by a county government for purposes of
this limitation is the total of all county government spending in a
fiscal year from all sources of funds and for all purposes, but total
county government spending does not include:
(1) spending in an amount not exceeding the amount
represented by applying the county's tax millage for the most
recently completed property tax year to the assessed value of new
construction and improvements to existing property not previously
taxed;
(2) spending of fee revenues generated by income-producing
services first extended to customers in the current fiscal year;
(3) spending of funds not derived from local taxes or fees
and for purposes of this item, local taxes do not include the local
sales and use tax levied pursuant to Chapter 10, Title 4 of the 1976
Code;
(4) a capital expenditure financed without borrowing using
funds derived from any source other than county property taxes;
(5) spending for debt service and lease-purchase payments;
(6) spending to offset a prior year deficit; and
(7) spending approved by at least a three-fourths vote of the
governing body of the county.
The limitation imposed by this section may not be extended
except by separate legislation enacted expressly for this purpose.
SECTION 2. Beginning with municipal government spending
for fiscal year 1995-96 and ending with municipal government
spending for fiscal years after 1998-99, total spending by a
municipal government in a fiscal year may not exceed total
municipal government spending in the prior fiscal year by more
than the percentage increase in the consumer price index in the
twelve months ending December 31 preceding the fiscal year as
determined by the Bureau of Labor Statistics of the United States
Department of Labor. Total spending by a municipal government
for purposes of this limitation is the total of a municipal
government spending in a fiscal year from all sources of funds and
for all purposes, but total municipal government spending does not
include:
(1) spending in an amount not exceeding the amount
represented by applying the municipality's tax millage for the most
recently completed property tax year to the assessed value of new
construction and improvements to existing property not previously
taxed;
(2) spending of fee revenues generated by income-producing
services first extended to customers in the current fiscal year;
(3) spending of funds not derived from local taxes or fees
and for purposes of this item, local taxes do not include the local
sales and use tax levied pursuant to Chapter 10, Title 4 of the 1976
Code;
(4) a capital expenditure financed without borrowing using
funds derived from any source other than county property taxes;
(5) spending for debt service and lease-purchase payments;
(6) spending to offset a prior year deficit; and
(7) spending approved by at least a three-fourths vote of the
governing body of the municipality.
The limitation imposed by this section may not be extended
except by separate legislation enacted expressly for this purpose.
SECTION 3. Beginning with special purpose or public service
district spending for fiscal year 1995-96 and ending with special
purpose or public service district spending for fiscal years after
1998-99, total spending by a special purpose or public service
district in a fiscal year may not exceed total special purpose or
public service district spending in the prior fiscal year by more than
the percentage increase in the consumer price index in the twelve
months ending December 31 preceding the fiscal year as determined
by the Bureau of Labor Statistics of the United States Department
of Labor. Total spending by a special purpose or public service
district for purposes of this limitation is the total of special purpose
or public service district spending in a fiscal year from all sources
of funds and for all purposes, but does not include:
(1) spending in an amount not exceeding the amount
represented by applying the district's tax millage for the most
recently completed property tax year to the assessed value of new
construction and improvements to existing property not previously
taxed;
(2) spending of fee revenues generated by income-producing
services first extended to customers in the current fiscal year;
(3) spending of funds not derived from local taxes or fees;
(4) a capital expenditure financed without borrowing using
funds derived from any source other than county property taxes;
(5) spending for debt service and lease-purchase payments;
(6) spending to offset a prior year deficit; and
(7) spending approved by at least a three-fourths vote of the
governing body of the district.
The limitation imposed by this section may not be extended
except by separate legislation enacted expressly for this purpose.
SECTION 4. Beginning with school district ad valorem tax
revenues for operating purposes for school year 1995-96 and ending
with such revenues for school years after 1998-99, total revenues of
a school district from ad valorem taxes levied for operating
purposes for a school year may not exceed the total of such
revenues in the prior school year by more than the Education
Finance Act inflation factor applicable for the current school year.
However, the limitation on revenues imposed by this section does
not apply to:
(1) ad valorem tax revenues in an amount represented by
applying the school district's tax millage for the most recently
completed tax year to the assessed value of new construction and
improvements to existing property in the district not previously
taxed;
(2) ad valorem tax revenues for debt service and lease-purchase
payments;
(3) ad valorem tax revenues to offset a prior year deficit; and
(4) revenues of additional ad valorem taxes approved by at least
a three-fourth's vote of the governing body authorized by law to
levy school tax millage in the school district.
If the limit on revenue increases allowed by this section is
insufficient to permit a school district to meet the maintenance of
effort requirement of Section 59-21-1030 of the 1976 Code, then
additional revenues may be raised by ad valorem taxes sufficient to
meet this requirement.
SECTION 5. This act takes effect upon approval by the
Governor.
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