H 4991 Session 115 (2003-2004) H 4991 General Bill, By Harrell, Jennings, Altman, Battle, Bingham, Chellis, Clark, Cotty, Dantzler, Davenport, Hinson, Leach, Mack, McGee, Merrill, Pinson, E.H. Pitts, M.A. Pitts, Quinn, Rice, Scarborough, Simrill, J.R. Smith, Snow, Toole, Townsend, Tripp, Trotter and Umphlett A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 IN CHAPTER 36 OF TITLE 12 SO AS TO IMPOSE AN ADDITIONAL STATE SALES AND USE TAX EQUAL TO ONE PERCENT ON AMOUNTS SUBJECT TO THE FIVE PERCENT STATE SALES AND USE TAX AND TO EXEMPT FROM THIS ADDITIONAL TAX FOOD ITEMS WHICH MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, ITEMS SUBJECT TO A MAXIMUM SALES, USE, AND CASUAL EXCISE TAX, AND GROSS PROCEEDS SUBJECT TO THE STATE SALES TAX ON ACCOMMODATIONS, TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PHASE IN AN EXEMPTION FOR MOTOR VEHICLES FROM PROPERTY TAX, TO ADD SECTION 11-11-180 SO AS TO CREDIT THE REVENUE OF THE ADDITIONAL SALES AND USE TAX IMPOSED BY THIS ACT TO A SEPARATE FUND IN THE STATE TREASURY AND DISTRIBUTE THE REVENUE OF THIS FUND TO LOCAL PROPERTY TAXING ENTITIES TO PROVIDE THEM STATE REVENUE IN LIEU OF PROPERTY TAXES NOT COLLECTED BECAUSE OF THE EXEMPTION ALLOWED FOR MOTOR VEHICLES AND TO PROVIDE THE METHOD AND TIMING OF THESE PAYMENTS, TO AMEND SECTIONS 12-36-60, 12-36-90, AS AMENDED, AND 12-36-2120, AS AMENDED, RELATING TO DEFINITIONS AND EXEMPTIONS FOR PURPOSES OF THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO EXTEND THE STATE SALES TAX TO SOUTH CAROLINA EDUCATION LOTTERY TICKETS, TO ADD SECTION 12-36-2140 SO AS TO EXEMPT SOUTH CAROLINA EDUCATION LOTTERY TICKETS FROM LOCAL SALES AND USE TAXES AND TO DELETE VARIOUS OTHER SALES AND USE TAX EXEMPTIONS, TO AMEND SECTION 59-150-350, AS AMENDED, RELATING TO MANAGEMENT OF THE EDUCATION LOTTERY ACCOUNT, SO AS TO PROVIDE THAT AN AMOUNT ALLOWED FOR LOTTERY ADMINISTRATIVE EXPENSES MUST BE CREDITED TO THE MOTOR VEHICLE TAX RELIEF AND PUBLIC EDUCATION FUND ESTABLISHED BY THIS ACT, TO AMEND SECTION 59-150-70, RELATING TO THE REGULATORY AUTHORITY OF THE SOUTH CAROLINA EDUCATION LOTTERY COMMISSION, SO AS TO PROVIDE THAT THE TICKET PRICE MUST BE SET BY THE COMMISSION SO THAT WHEN STATE SALES TAX IS ADDED THE SALES PRICE, INCLUDING TAX, MUST EQUAL ONE DOLLAR, AND TO REPEAL ARTICLE 21, CHAPTER 37 OF TITLE 12, AND ARTICLE 5, CHAPTER 10 OF TITLE 4, ALL RELATING TO, AMONG OTHER THINGS, PROPERTY TAXES AND ALL MADE OBSOLETE BY THE PROVISIONS OF THIS ACT, TO AMEND CHAPTER 20 OF TITLE 59, RELATING TO THE SOUTH CAROLINA EDUCATION FINANCE ACT OF 1977, SO AS TO REDEFINE CERTAIN TERMS AND DELETE THE DEFINED MINIMUM PROGRAM; TO RAISE THE ACADEMIC STANDARDS AND ENSURE THAT STUDENTS CAN ACHIEVE AT HIGH ACADEMIC STANDARDS; TO REDUCE THE CLASSROOM SIZE FROM TWENTY-EIGHT TO TWENTY-ONE PUPILS AND FUND THE CLASSROOM SIZE AT TWENTY-ONE PUPILS; TO PROVIDE THAT TEACHERS MUST BE COMPENSATED FOR FIVE DAYS OF PROFESSIONAL DEVELOPMENT AND IMPLEMENT A 195-DAY CONTRACT YEAR; TO CHANGE THE WEIGHTINGS PER PUPIL AND TO ADD WEIGHTINGS FOR CERTAIN TYPES OF PUPILS INCLUDING GIFTED AND TALENTED, CAREER EXPLORATION, PREVENTION, AND LIMITED ENGLISH PROFICIENCY; TO PROVIDE THAT THE BASE STUDENT COST MUST BE $5,079, OF WHICH SEVENTY PERCENT IS THE STATE'S SHARE; TO PROVIDE THAT THE STATE SUPERINTENDENT OF EDUCATION AND THE STATE BOARD OF EDUCATION SHALL REVIEW AND RECOMMEND CHANGES TO THEIR REGULATIONS TO THE GENERAL ASSEMBLY; TO REPEAL SECTIONS 59-21-160, RELATING TO STATE APPROPRIATIONS FOR SCHOOL DISTRICT EMPLOYER CONTRIBUTIONS, AND 59-21-1030, RELATING TO THE LEVEL OF FINANCIAL EFFORT PER PUPIL REQUIRED OF EACH SCHOOL DISTRICT; TO PROVIDE THAT THE OFFICE OF STATE BUDGET, IN CONSULTATION WITH CERTAIN AGENCIES, SHALL FORMAT THE DEPARTMENT OF EDUCATION'S BUDGET TO COMPLY WITH THE CHANGES MADE IN THIS ACT TO THE EDUCATION FINANCE ACT. 03/18/04 House Introduced and read first time HJ-3 03/18/04 House Referred to Committee on Ways and Means HJ-6
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 IN CHAPTER 36 OF TITLE 12 SO AS TO IMPOSE AN ADDITIONAL STATE SALES AND USE TAX EQUAL TO ONE PERCENT ON AMOUNTS SUBJECT TO THE FIVE PERCENT STATE SALES AND USE TAX AND TO EXEMPT FROM THIS ADDITIONAL TAX FOOD ITEMS WHICH MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, ITEMS SUBJECT TO A MAXIMUM SALES, USE, AND CASUAL EXCISE TAX, AND GROSS PROCEEDS SUBJECT TO THE STATE SALES TAX ON ACCOMMODATIONS, TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PHASE IN AN EXEMPTION FOR MOTOR VEHICLES FROM PROPERTY TAX, TO ADD SECTION 11-11-180 SO AS TO CREDIT THE REVENUE OF THE ADDITIONAL SALES AND USE TAX IMPOSED BY THIS ACT TO A SEPARATE FUND IN THE STATE TREASURY AND DISTRIBUTE THE REVENUE OF THIS FUND TO LOCAL PROPERTY TAXING ENTITIES TO PROVIDE THEM STATE REVENUE IN LIEU OF PROPERTY TAXES NOT COLLECTED BECAUSE OF THE EXEMPTION ALLOWED FOR MOTOR VEHICLES AND TO PROVIDE THE METHOD AND TIMING OF THESE PAYMENTS, TO AMEND SECTIONS 12-36-60, 12-36-90, AS AMENDED, AND 12-36-2120, AS AMENDED, RELATING TO DEFINITIONS AND EXEMPTIONS FOR PURPOSES OF THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO EXTEND THE STATE SALES TAX TO SOUTH CAROLINA EDUCATION LOTTERY TICKETS, TO ADD SECTION 12-36-2140 SO AS TO EXEMPT SOUTH CAROLINA EDUCATION LOTTERY TICKETS FROM LOCAL SALES AND USE TAXES AND TO DELETE VARIOUS OTHER SALES AND USE TAX EXEMPTIONS, TO AMEND SECTION 59-150-350, AS AMENDED, RELATING TO MANAGEMENT OF THE EDUCATION LOTTERY ACCOUNT, SO AS TO PROVIDE THAT AN AMOUNT ALLOWED FOR LOTTERY ADMINISTRATIVE EXPENSES MUST BE CREDITED TO THE MOTOR VEHICLE TAX RELIEF AND PUBLIC EDUCATION FUND ESTABLISHED BY THIS ACT, TO AMEND SECTION 59-150-70, RELATING TO THE REGULATORY AUTHORITY OF THE SOUTH CAROLINA EDUCATION LOTTERY COMMISSION, SO AS TO PROVIDE THAT THE TICKET PRICE MUST BE SET BY THE COMMISSION SO THAT WHEN STATE SALES TAX IS ADDED THE SALES PRICE, INCLUDING TAX, MUST EQUAL ONE DOLLAR, AND TO REPEAL ARTICLE 21, CHAPTER 37 OF TITLE 12, AND ARTICLE 5, CHAPTER 10 OF TITLE 4, ALL RELATING TO, AMONG OTHER THINGS, PROPERTY TAXES AND ALL MADE OBSOLETE BY THE PROVISIONS OF THIS ACT, TO AMEND CHAPTER 20 OF TITLE 59, RELATING TO THE SOUTH CAROLINA EDUCATION FINANCE ACT OF 1977, SO AS TO REDEFINE CERTAIN TERMS AND DELETE THE DEFINED MINIMUM PROGRAM; TO RAISE THE ACADEMIC STANDARDS AND ENSURE THAT STUDENTS CAN ACHIEVE AT HIGH ACADEMIC STANDARDS; TO REDUCE THE CLASSROOM SIZE FROM TWENTY-EIGHT TO TWENTY-ONE PUPILS AND FUND THE CLASSROOM SIZE AT TWENTY-ONE PUPILS; TO PROVIDE THAT TEACHERS MUST BE COMPENSATED FOR FIVE DAYS OF PROFESSIONAL DEVELOPMENT AND IMPLEMENT A 195-DAY CONTRACT YEAR; TO CHANGE THE WEIGHTINGS PER PUPIL AND TO ADD WEIGHTINGS FOR CERTAIN TYPES OF PUPILS INCLUDING GIFTED AND TALENTED, CAREER EXPLORATION, PREVENTION, AND LIMITED ENGLISH PROFICIENCY; TO PROVIDE THAT THE BASE STUDENT COST MUST BE $5,079, OF WHICH SEVENTY PERCENT IS THE STATE'S SHARE; TO PROVIDE THAT THE STATE SUPERINTENDENT OF EDUCATION AND THE STATE BOARD OF EDUCATION SHALL REVIEW AND RECOMMEND CHANGES TO THEIR REGULATIONS TO THE GENERAL ASSEMBLY; TO REPEAL SECTIONS 59-21-160, RELATING TO STATE APPROPRIATIONS FOR SCHOOL DISTRICT EMPLOYER CONTRIBUTIONS, AND 59-21-1030, RELATING TO THE LEVEL OF FINANCIAL EFFORT PER PUPIL REQUIRED OF EACH SCHOOL DISTRICT; TO PROVIDE THAT THE OFFICE OF STATE BUDGET, IN CONSULTATION WITH CERTAIN AGENCIES, SHALL FORMAT THE DEPARTMENT OF EDUCATION'S BUDGET TO COMPLY WITH THE CHANGES MADE IN THIS ACT TO THE EDUCATION FINANCE ACT. Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Section 12-36-1110. An additional sales and use tax equal to one percent is imposed on amounts taxable pursuant to this chapter. For all purposes of reporting, collection, and enforcement, this tax is deemed to be imposed pursuant to the various imposition provisions of this Chapter, but the revenue of this tax must be credited to a fund established in the State Treasury styled the Motor Vehicle Tax Relief and Public Education Fund, which is and must be maintained separately from the general fund of the State and all other funds. Revenues of this fund must be distributed in the manner provided in Section 11-11-180. Section 12-36-1120. In addition to the exemptions provided pursuant to Sections 12-36-2120 and 12-36-2130, the following items are exempt from the tax imposed pursuant to this article: (1) items subject to a maximum tax pursuant to Section 12-36-2110; (2) food items which lawfully may be purchased with United States Department of Agriculture food coupons; (3) gross proceeds derived from the rental of accommodations to transients subject to the tax imposed pursuant to Section 12-36-920(A)." SECTION 2. Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding: "Section 11-11-180. (A)(1) Revenues in the Motor Vehicle Tax Relief and Public Education Fund established pursuant to Section 12-36-1110 must be used as provided in this section. For the period January through December, 2005, property taxing entities of the State other than school districts must be reimbursed for the taxes not collected because the exemption allowed pursuant to Section 12-37-220(B)(47). The Comptroller General shall pay these reimbursements quarterly, upon application of the property taxing entity. The amount paid from the fund for the calendar year 2005 reimbursements paid to other than school districts must be adjusted cumulatively each succeeding calendar year by a percentage equal to the estimate of the Board of Economic Advisors for the percentage increase in sales tax revenue for that calendar year and that amount as adjusted is the amount of fund revenue available annually for payments to other than school districts. If the reimbursements exceed the amount available, all reimbursements must be reduced proportionately. If the amount available exceeds the required reimbursements, then each reimbursement must be proportionately increased. (2) For the period January through June, 2005, school districts must be reimbursed for the taxes not collected because of the exemption allowed pursuant to Section 12-37-220(B)(47) during that period. All fund revenues for the period January through June, 2005, in excess of the reimbursements required pursuant to subsection (A), of this section must be distributed to school districts as Education Finance Act funds are distributed during that period. After June 30, 2005, all fund revenues in excess of those necessary to make the payments required pursuant to subsection (A) of this section must be distributed to school districts in the manner that Education Finance Act funds are distributed. (B) Beginning in calendar year 2008, and increasing by an additional ten percent each calendar year thereafter, ten percent of the amount set aside in the fund for the payments required pursuant to subsection (A)(1) of this section must be distributed by the State Treasurer quarterly to municipalities, counties, and special purpose or public service districts on a per capita basis. After calendar year 2016, all further distributions of the amount set aside in the fund for the reimbursement required pursuant to subsection (A)(1) of this section must be distributed on a per capita basis. (C) At such time as there is a specific permanent property tax exemption for motor vehicles provided in Article X of the Constitution of this State, such vehicles are nevertheless considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of 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). At the time such a constitutional exemption begins, the payments required pursuant to this section are deemed to be in lieu of taxes on motor vehicles exempted from tax under Article X of the Constitution of this State." SECTION 3. Section 12-36-60 of the 1976 Code is amended to read: "Section 12-36-60. 'Tangible personal property' means personal property which may be seen, weighed, measured, felt, touched, or which is in any other manner perceptible to the senses. It also includes a South Carolina Education Lottery Ticket sold by a lottery retailer as provided in Chapter 150 of Title 59. It also includes services and intangibles, including communications, laundry and related services, furnishing of accommodations, and sales of electricity, the sale or use of which is subject to tax under this chapter and does not include stocks, notes, bonds, mortgages, or other evidences of debt. Tangible personal property does not include the transmission of computer database information by a cooperative service when the database information has been assembled by and for the exclusive use of the members of the cooperative service." SECTION 4. Section 12-36-90(1) of the 1976 Code is amended by adding a subitem appropriately lettered at the end to read: "( ) the proceeds from the sale of a South Carolina Education Lottery Ticket at the ticket price established by the South Carolina Education Lottery Commission." SECTION 5. Items (20), (21), (35), (40), (49), (57), and (60) of Section 12-36-2120 of the 1976 Code, are amended to read:
"(20) [Reserved]
(21) [Reserved]
(35) [Reserved]
(40) [Reserved]
(49) [Reserved]
(57)[Reserved]
(60) SECTION 6. Article 21, Chapter 36, Title 12 of the 1976 Code is amended by adding: "Section 12-36-2140. (A) Notwithstanding any other provision of this chapter, the proceeds from the sale of a South Carolina Education Lottery Ticket are wholly exempt from a locally imposed sales and use tax collected and administered by the department. (B) Notwithstanding any other provision of law, all sales tax revenue attributable to sale of South Carolina Education Lottery tickets must be credited to the Motor Vehicle Tax Relief and Public Education Fund established pursuant to Section 11-11-180. (C) Notwithstanding any other provisions of law, sales and use tax revenues derived from the sale or use of items tax exempt from sales and use tax pursuant to the former provisions of items (20), (21), (35), (40), (49), and (57) of Section 12-36-2120, must be credited to the Motor Vehicle Tax Relief and Public Education Fund established pursuant to Section 11-11-180." SECTION 7. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read: "(47)(a) A percentage as provided in subitem (b) of this item of the fair market value of motor vehicles subject to the assessment ratio provided pursuant to Article X, Section 8(B) of the Constitution of this State. (b) Percentage of fair market value exempt: (i) eighty percent for motor vehicle property tax years beginning in calendar year 2005; (ii) ninety percent for motor vehicle property tax years beginning in calendar year 2006; and (iii) one hundred percent for motor vehicle property tax years beginning after calendar year 2006. (c) Property exempted from property tax pursuant to this item is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of 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)." SECTION 8. Tax notices for motor vehicle tax years beginning in calendar years 2005 and 2006 must state separately the amount the tax liability on the vehicle has been reduced by the exemption allowed by this item. Motor vehicle registrations issued in calendar years 2007 and 2008 must notify the registrant that by an act of the General Assembly and an amendment to the State Constitution approved by the voters in 2004, if applicable, motor vehicles are exempt from property tax. SECTION 9. Section 59-150-70 of the 1976 Code, as added by Act 59 of 2001, is amended by adding an appropriately lettered subsection at the end to read: "( ) Notwithstanding the sale price of a lottery ticket as promulgated by regulations of the commission pursuant to this section, the price of a ticket must be adjusted by the commission so that the amount of state sales or use tax imposed on the sale of the ticket, when added to the price as adjusted, equals one dollar or increments of one dollar and this adjusted ticket price applies in lieu of any other ticket price provided by law or in regulation." SECTION 10.A. Section 59-150-350(A) of the 1976 Code, as added by Act 59 of 2001, is amended to read: "(A) All lottery proceeds are the property of the commission, to be held in a separate and distinct account, apart from the State Treasury. Annual administrative expenses must not exceed fifteen percent of gross lottery revenues for the year, including lottery retailer commissions and incentives. However, of these maximum annual administrative expenses, an amount equal to the difference between thirteen percent and fifteen percent of gross lottery revenues for the year must not be used for administrative expenses and not credited to the Education Lottery Account but instead must be credited to the Motor Vehicle Tax Relief and Public Education Fund established pursuant to Section 11-11-180. The General Assembly shall consider, in the allocation of funds from the Education Lottery Account, the allocation of monies in the amount the General Assembly determines for the Commission on Higher Education and for the Administrative Law Judge Division, both to help defray their expenses incurred in the performance of their duties pursuant to this chapter; except that the amount of funding for the Commission on Higher Education and the Administrative Law Judge Division must be allocated by the General Assembly in its annual general appropriations bill or any bill appropriating monies for previous or current fiscal years. As nearly as practical, an amount no less than forty-five percent of the amount of money from the actual sale of lottery tickets or shares must be made available as prize money, except that this item does not create a lien, an entitlement, a cause of action, or other private right, and rights of holders of tickets or shares must be determined by the commission in setting the terms of its lottery or lotteries. " B. Notwithstanding the general effective date of this Part, this section takes effect July 1, 2005. SECTION 11. Article 21, Chapter 37, Title 12 of the 1976 Code is repealed for motor vehicle property tax years beginning after 2006. Article 5, Chapter 10, Title 4, of the 1976 Code, is repealed effective January 1, 2005.
SECTION 1. Chapter 20, Title 59 of the 1976 Code is amended to read:
Section 59-20-10. This chapter shall be known and may be cited as the 'South Carolina Education Finance Act of 1977'. Section 59-20-20. As used in this chapter:
(1) 'Foundation program' means the (2) 'Educational programs or elements of programs not included in the foundation program' means:
(a) 'Transportation', which
(b) 'Capital outlay', which
(c)
(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 for each of the school districts of the county 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 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 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 base year is the second completed taxable year preceding the fiscal year in which the index is used. The Department of Revenue shall provide a preliminary index by December 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 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 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 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 for the purpose of determining an annual index must be preserved as public records in the offices of the Department of Revenue 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 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. In determining sales to assessment ratio, the Department of Revenue 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 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. 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. The index of taxpaying ability for a particular current year shall not include the assessed value of property in a school district which is classified under Section 12-43-220(a) and Section 12-43-220(e), which is at least fifteen percent of the total assessed value of real property in the school district, which on February first of the year has been in bankruptcy status for a minimum of thirty consecutive months, and on which no local school property taxes have been collected for at least two consecutive fiscal years. It is the responsibility of the county auditor to report such exclusions from the index to the Department of Revenue and to immediately notify the Department of Revenue of any change in the bankruptcy status of such real property or any collection of school property taxes from such real property. For purposes of disbursing EFA funding and for purposes of the index of taxpaying ability, the value of a fee in lieu of taxes shall be computed by the Department of Revenue by basing the computation on the net fee received and retained by the school district. The value thus computed shall not be inflated by any portion of the fee shared with or used by any other local taxing authority. Provided, however, any revenue received by a taxing entity as a result of this section must be considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the 'index of taxpaying ability' pursuant to item (3) of this section.
(4)
Section 59-20-23. When an appeal of the assessed value of property assessed pursuant to Section 12-43-220(a) extends for more than two years and the amount in dispute is more than thirty percent of the total of assessed value of property in the school district in which the property under appeal is located, the index of taxpaying ability for the school district must be calculated using the value asserted by the taxpayer in the appeal. If the final settlement of the appeal provides for an assessed value greater than the value asserted in the taxpayer's appeal, the local school district, within twelve months, must remit to the general fund of the State any additional funds received from the State Department of Education due to the utilization of the value of the facility asserted in the taxpayer's appeal. Any funds remitted to the general fund of the State pursuant to this section are considered current fiscal year funds appropriated under the Education Finance Act and must be included in the next distribution of such funds to school districts. Section 59-20-25. For the purposes of computing the 'index of taxpaying ability' pursuant to item (3) of Section 3 of Act 163 of 1977 (South Carolina Education Finance Act) for any area in which tax increment financing plan is in effect the value to be used shall be the original assessed value plus any portion of the captured assessed value which is distributed among taxing authorities pursuant to Section 31-8-120. Section 59-20-30. It is the purpose of the General Assembly in this chapter:
(1) To guarantee to each student in the public schools of South Carolina the availability of
(2) To encourage school district initiative in seeking more effective and efficient means of achieving the education goals of the
(3) To establish a procedure for the distribution of
(4) T
(5) To establish a reasonable balance between the portion of the funds to be paid by the State and the portion of the funds to be paid by the districts collectively in support of the foundation program. For the initial stage of this program the proportionate state share of the funds for this program
(6)
To ensure that tax dollars spent in public schools are utilized effectively and to ensure that adequate programs serve (7) To provide a foundation program that recognizes the importance of lower classroom sizes by funding classroom sizes at twenty-one pupils. (8) To recognize and reward the professional commitment of teachers and to support ongoing professional development of teachers as integral to improving the quality of instruction by compensating teachers for five days of professional development training and implementing a 195-day contract year as specified in Section 59-1-420(C).
Section 59-20-40. The annual allocation to each school district for the operation of the foundation program as it relates to the school district (1) Computation of the basic amount to be included for current operation in the foundation program:
(a) Each school district shall maintain a program membership of each school by compiling the student membership of each classification. The cumulative one hundred thirty-five day average daily membership of each school district by program classification will determine its monetary entitlement. The district's average daily membership (ADM) will be computed, currently maintained, and reported in accordance with the regulations of the State Board of Education. Funds for the state's portion of the per-pupil cost of the foundation program
(b) The base student cost
Each year the Division of Research and Statistics of the Budget and Control Board shall submit to the Legislature an estimate of the projected rate of inflation for the fiscal year to be budgeted, and the base student cost
(c) Weightings, used to provide for relative cost differences, between programs for different students are established in order that funds may be equitably distributed on the basis of pupil needs. The criteria for qualifications for each special classification must be established by the State Board of Education according to definitions established in this article Pupil Classification Weightings
(1) Kindergarten pupils
(2)
(3)
(4) High school pupils (grades 9 through 12) Special Programs for Exceptional Students Weightings (5) Handicapped 1.74 a. Educable mentally handicapped pupils b. Learning disabilities pupils (6) Handicapped 2.04 a. Trainable mentally handicapped pupils b. Emotionally handicapped pupils c. Orthopedically handicapped pupils (7) Handicapped 2.57 a. Visually handicapped pupils b. Hearing handicapped pupils c. pupils with autism. (8) Speech handicapped pupils 1.90
(9) Homebound pupils a. pupils who are homebound b. pupils who reside in emergency shelters
(10)
(11) a. persons aged 17 to 21 0.20 b. persons over the age of 21 0.10
Add on weightings for: Gifted and talented education 0.150 Career exploration in grades 6 through 9 0.039 Prevention for kindergarten through grade 3 0.200 Remediation for grades 4 through 12 0.114 Limited English proficiency 0.200
The weighting for career exploration must provide revenues for schools to provide one counselor or career specialist for every 300 students in grades six through nine to assist the students in determining career options and academic course selections and to support career exploration experiences and materials. The weighting for prevention must provide additional revenues for students in kindergarten through grade three who qualify for Medicaid or who qualify for reduced or free lunches, or both. Revenues generated by this weighting must be used by districts and schools to provide services and research-based strategies for addressing academic or health needs of these students to ensure their future academic success. The weighting for remediation must provide additional revenues for a student in grades four through eight who scores below basic on at least one PACT assessment as required by Article 3, Chapter 18 of Title 59 and a student who has failed an end-of-course test in English, mathematics, or science or a subtest of the exit exam. Revenues must be used by districts and schools to provide summer school, reduced class size, after school programs, extended day, instructional materials, or any other research-based educational strategy to improve student academic performance. The weighting for Limited English Proficiency must provide additional revenues for students whose native language is not English and comes from an environment where a language other than English is dominant; who has difficulty speaking, reading, writing, or understanding the English language; or whose language assessment scores indicated that the student is not proficient in the English language. Schools and districts shall use the revenues to provide services for assisting the students in improving their English proficiency.
Each student in the State must be counted in only one of the first eleven pupil classifications.
School districts may count each student who is instructed at home
(d) The basic amount for the foundation program for each district
(1) The calculated average daily membership in each student classification
(2) The subtotals (totals in each student classification) in
(3) The district's weighted pupil units (e) Computation of the required local revenue in support of the foundation program.
The amount that each school district shall provide toward the cost of the South Carolina foundation program (f) Computation of the required state effort.
The amount that the State shall provide to each school district toward the cost of the foundation program
Notwithstanding the provisions of this section, state aid to (2) Reserved. (3) Provisions for a phase-in plan of implementation (a) As a result of the cost of implementing the foundation program at both state and local level as calculated in this section, there will be a phase-in implementation period of five years to assist in implementing the education finance program.
(b)
(4) Impact aid revenue
(5)
It is the intent of the General Assembly that the average daily membership pupil-teacher ratio for all grades
Section 59-20-41. Notwithstanding
Section 59-20-50. (1) Notwithstanding the computations prescribed in Section 59-20-40, the level of state contributions to each district
Provided,
Provided, further, after the fiscal year 1982-83
Beginning July 1, 1994,
(2) Notwithstanding any provisions of this chapter,
(3) Eighty-five percent of the funds appropriated through state and local effort for each weighted classification
However, this requirement
(4)(a) Each school district shall pay each certified teacher or administrator an annual salary at least equal to the salary stated in the statewide minimum salary schedule for the person's experience and class. (b) The state minimum salary schedule must be based on the state minimum salary schedule index in effect as of July 1, 1984. In Fiscal Year 1985, the 1.000 figure in the index is $14,172. (This figure is based on a 10.27% increase pursuant to the South Carolina Education Improvement Act of 1984.) Beginning with Fiscal Year 1986, the 1.000 figure in the index must be adjusted on a schedule to stay at the southeastern average as projected by the Division of Research and Statistical Services and provided to the Budget and Control Board and General Assembly during their deliberations on the annual appropriations bill. The southeastern average teacher salary is the average of the average teachers' salaries of the southeastern states. In projecting the southeastern average, the division shall include in the South Carolina base teacher salary all local teacher supplements and all incentive pay. Under this schedule, school districts are required to maintain local salary supplements per teacher no less than their prior fiscal level. In Fiscal Year 1986 and thereafter teacher pay raises through adjustments in the state's minimum salary schedule may be provided only to teachers who demonstrate minimum knowledge proficiency by meeting one of the following criteria: (1) holding a valid professional certificate; (2) having a score of 425 or greater on the Commons Examination of the National Teachers Examinations; (3) meeting the minimum qualifying score on the appropriate area teaching examination; or (4) meeting the minimum standards on the basic skills examinations as prescribed by the State Board of Education provided in Section 59-26-20. Section 59-20-55. Beginning July 1, 1986, and thereafter, employment may be provided only to teachers who demonstrate minimum knowledge proficiency by meeting one of the criteria outlined in Section 59-20-50(4)(b). The criteria do not have to be met by teachers having twenty-five years or more of teaching service as of the effective date of the South Carolina Education Improvement Act of 1984 in order for them to be employed.
Section 59-20-60. (1)
The State Board of Education shall recommend a format for the plans which will be flexible and adaptable to local planning needs while encompassing certain state mandates, including the early childhood and academic assistance initiative plans pursuant to Section 59-139-10.
(a) new approaches to what and how students learn by changing schooling in ways that provide a creative, flexible, and challenging education for all students, especially for those at risk. Performance-based outcomes which support a pedagogy of thinking and active approaches for learning must be supported; (b) applying different teaching methods permitting professional educators at every level to focus on educational success for all students and on critical thinking skills and providing the necessary support for educational successes are encouraged; (c) redefining how schools operate resulting in the decentralization of authority to the school site and allowing those closest to the students the flexibility to design the most appropriate education location and practice; (d) creating appropriate relationships between schools and other social service agencies by improving relationships between the school and community agencies (health, social, mental health), parents and the business community, and by establishing procedures that cooperatively focus the resources of the greater community upon barriers to success in school, particularly in the areas of early childhood and parenting programs, after-school programs, and adolescent services. Funds for the Innovation Initiative must be allocated to districts based upon a fifty percent average daily membership and fifty percent pursuant to the Education Finance Act formula. At least seventy percent of the funds must be allocated on a per school basis for school based innovation in accord with the District-School Improvement Plan. Up to thirty percent may be spent for district-wide projects with direct services to schools. District and school administrators must work together to determine the allocation of funds. For 1993-94, districts and schools may use these funds for designing their Innovation Initiatives to be submitted to the peer review process established in Section 59-139-10 prior to implementation of the innovations in 1994-95. Notwithstanding any other provisions of law, districts may carry over all unexpended funds in 1993-94, and up to twenty-five percent of allocated funds each year thereafter in order to build funds for an approved program initiative.
In order to provide additional accountability for funds expended under statutory requirements, the elected members of the school improvement council shall serve a minimum term of two years. Parents of students or students in their last year of enrollment at an individual school may serve terms of one year only. The terms must be staggered and initially determined by lot. Elections of members to school improvement councils shall occur no later than October fifteenth of the school year. The elections must be organized to ensure that every parent and faculty member has an opportunity to vote each year. Within thirty days following the election, the names, addresses, terms of service, and status of all council members as a parent, teacher, student, or representative of the community must be provided to the School Improvement Council Assistance at the University of South Carolina for the purpose of sharing information. The district board of trustees shall include in its annual district report a summary of the training opportunities provided or to be provided for school improvement council members and professional educators in regard to council-related tasks and a summary of programs and activities involving parents and citizens in the school.
(a) review each school improvement plan and the annual updates for integration with district plans and objectives and school progress in meeting those goals and objectives; (b) cause to be prepared an annual written report to account for funds expended in each pupil classification as prescribed by the State Board of Education; (c) participate in the statewide testing program as prescribed by the State Board of Education; (d) maintain an ongoing systematic evaluation of the educational program needs in the district and shall develop a comprehensive annual and long-range plan for meeting these program needs. These plans shall include an assessment of needs. At minimum, the process of assessing needs and establishing goals and objectives must be carried out for each of the program classifications specified in Section 59-20-40(1)(c). Each school district board of trustees shall develop and execute a method of evaluating the extent to which the goals and objectives specified in its comprehensive plan are being achieved and shall annually report the results of its evaluation to the people of the school district and to the State Board of Education. (e) provide a program for staff development for all educational personnel. A portion of the funds in the foundation program must be used for this staff development that may include, but not be limited to: (i) college courses in education, subject area of certification or management; (ii) teaching center offerings; (iii) State Department of Education workshops; and (iv) district-wide or in-school training for the purpose of fostering professional growth or improving the competency of all educational personnel. (f) in accordance with the format approved by the State Board of Education, annually submit to the State Board of Education and to the people of the district that district's fiscal report.
(a) develop, by September, 1993, a plan for offering help to districts and schools in designing and implementing the district and school comprehensive improvement plan; (b) develop, by December, 1993, with approval by the State Board of Education, criteria for monitoring the district and school plans; (c) review each district's annual fiscal report; (d) provide assistance to school districts in improving the programs, correcting the deficiencies, and in carrying out its staff development program; (e) develop or select and field test a competency-based student assessment program; (f) prepare an annual fiscal and programmatic report to the Governor and the General Assembly each year to assess compliance with this chapter and to make recommendations concerning necessary changes in this chapter; (g) in compliance with the intent of the chapter, waive the prescribed reporting practices if considered necessary by the State Board of Education and authorize the substitution of alternate reporting practices which accomplish the objectives implied in this section. This waiver may not be utilized to avoid full accountability and implementation of this chapter.
(a) the cost of the defined minimum program; (b) provisions included in the defined minimum program; (c) the pupil classification weights in Section 59-20-40; (d) the formula for computing required local effort; (e) the ongoing evaluation of the education program needs of the school districts. The committee must be made up of three representatives from each of the following committees of the General Assembly - Senate Education, Senate Finance, House Education and Public Works, and House Ways and Means - appointed by each respective chairman. The committee shall seek the advice of professional educators and all other interested persons when formulating its recommendations. Section 59-20-65. The State Board of Education, acting through the existing School Council Assistance Project at the University of South Carolina, shall provide services and training activities to support school improvement councils and their efforts in preparing an annual school improvement report as required in this section. Section 59-20-70. Notwithstanding any other provisions of law, any school district which complies with the provisions of Section 59-20-60 is exempted from the provisions of Article 15 of Chapter 1 of Title 1 relating to the fiscal accountability of state agencies, departments and institutions. Section 59-20-80. Notwithstanding any other provision of law, each school board of trustees in this State shall annually make available to the general public its budget for that year, which budget shall include an itemized list of the average salaries paid to the superintendents, supervisors, administrators, principals, consultants, counselors and teachers employed by the district. No state aid shall be given to any school district whose board of trustees fails to comply with the provisions of this chapter. Section 59-20-90. The State Superintendent of Education and the State Board of Education shall review and recommend changes to or deletions of regulations to the General Assembly which are inconsistent with the intent of this chapter." SECTION 2. Sections 59-21-160 and 59-21-1030 of the 1976 Code are repealed. SECTION 3. The Office of State Budget, in consultation with the Governor's office, Senate Finance Committee, House Ways and Means Committee, State Department of Education, and the South Carolina Code Commissioner shall format the Department of Education's budget to comply with the requirements of this act.
SECTION 1. If a school district receives in total payments pursuant to Parts I and II of this act in fiscal year 2005-2006 less than the total of the amount realized by the district from property tax on motor vehicles in fiscal year 2004-2005, including reimbursements, and all amount received by the district in fiscal year 2004-2005 from state sources, the General Assembly shall appropriate for this district for fiscal year 2005-2006 an additional amount to offset the reduction. This "hold harmless" appropriation must continue for a total of ten years, but the annual payment declines ratably over the "hold harmless" period with this payment ending after ten years. If in a year during the "hold harmless" period a district receives an annual increase in Education Finance Act funding less than the amount of the scheduled reduction, in the "hold harmless," payment then the scheduled "hold harmless" payment reduction for that year is adjusted downward in amounts sufficient to maintain the payment, together with the districts EFA allocation, at the prior year's EFA allocation, to the extent the amount of the scheduled reduction is sufficient to maintain this amount. The scheduled "hold harmless" payment reductions for the remainder of the "hold harmless" period must be adjusted to reflect this increase. SECTION 2. Except where otherwise stated, Part I of this act takes effect January 1, 2005. Part II of this act takes effect July 1, 2005.
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