Current Status Introducing Body:Senate Bill Number:53 Primary Sponsor:Rose Committee Number:06 Type of Legislation:GB Subject:Special Sales and Use Tax Act Residing Body:Senate Current Committee:Finance Computer Document Number:53 Introduced Date:Jan 08, 1991 Last History Body:Senate Last History Date:Jan 08, 1991 Last History Type:Introduced and read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Rose Type of Legislation:General Bill
Bill Body Date Action Description CMN
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53 Senate Jan 08, 1991 Introduced and read first 06
time, referred to Committee
53 Senate Sep 10, 1990 Prefiled, referred to 06
Committee
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TO AMEND TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING CHAPTER 12 SO AS TO ENACT THE OPTIONAL SPECIAL SALES AND USE TAX ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 6 of the 1976 Code is amended by adding:
Section 6-12-10. This chapter may be cited as the Optional Special Sales and Use Tax Act.
Section 6-12-20. Subject to the requirements of this chapter, the governing body of a county or municipality may by ordinance impose a one percent sales and use tax within its jurisdiction for a specific purpose and for a specific period of time to collect a limited amount of money.
Section 6-12-30. (A) When the governing body of a county or municipality votes to impose the tax authorized by this chapter, it shall forward a copy of the ordinance to the county election commission. The ordinance must specify:
(1) The purpose for which the proceeds of the tax is to be used, which may include projects located within or without, or both
within and without, the boundaries of the county or municipality imposing the tax and which may include:
(a) highways, roads, streets, and bridges;
(b) county and municipal courthouses, administration buildings, civic centers, hospitals, jails, correctional institutions, detention facilities, libraries, coliseums, landfills, or any combination of these projects;
(c) jointly operated projects of the county and a municipality or any combination of municipalities;
(d) cultural, recreational, or historic facilities, or any combination of these facilities;
(e) water, sewer, and water and sewer projects;
(f) retirement of existing general obligation debt of the county or municipality; and
(g) any combination of the projects described in subitems (a) through (f) of this item;
(2) The maximum time, stated in calendar years or calendar quarters, or a combination thereof, not to exceed five years, for which the tax may be imposed; and
(3) The maximum cost of the project or facilities funded from proceeds of the tax, which maximum cost must also be the amount of net proceeds to be raised by the tax.
(B) Upon receipt of the ordinance, the county election commission or municipal election commission shall conduct a referendum on the question of implementing the tax. If a general election is to be held in a period between six weeks and six months after the enactment of the ordinance, the referendum must be held at the time of the general election; otherwise, the commission must conduct the referendum within ninety days of enactment of the ordinance. The commission shall cause the date and purpose of the referendum to be published once a week for four consecutive weeks immediately preceding the date of the referendum, in a newspaper of general circulation in the jurisdiction.
(C) A separate question must be included on the referendum ballot for each purpose and the question must read substantially as follows:
'Must a special one percent sales and use tax be imposed in (County or Municipality) for not more than (time) to raise the amounts specified for the following purposes:
(1) $ for
(2) etc.'
(D) All qualified electors desiring to vote in favor of imposing the tax for a particular purpose shall vote 'yes' and all qualified electors opposed to levying the tax for a particular purpose shall vote 'no'. If a majority of the votes cast are in favor of imposing the tax for one or more of the specified purposes, then the tax is imposed as provided in this chapter; otherwise the tax is not imposed and the question may not be resubmitted until twelve months immediately following the month the referendum was held. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result to the appropriate governing body and to the South Carolina Tax Commission. Included in the certification must be the total of the project costs receiving a favorable vote. Expenses of the referendum must be paid by the jurisdiction conducting the referendum.
Section 6-12-40. (A) If the tax is approved in the referendum, the tax is imposed on the first day of the second calendar quarter following the date of the referendum.
(B) The tax terminates on the earlier of:
(1) the final day of the maximum time specified for the imposition; or
(2) the end of the calendar quarter during which the South Carolina Tax Commission determines that the tax has raised revenues sufficient to provide the county or municipality net proceeds equal to or greater than the amount specified as the amount to be raised by the tax.
(C) No county or municipality may impose at any time more than a single one percent tax under this chapter. A referendum may be held to impose a tax before the expiration of an existing tax, but the reimposition may not occur before the expiration of the tax then in effect.
(D) When the optional sales and use tax is imposed for more than one purpose, the governing body of the jurisdiction authorizing the referendum for the tax shall determine the priority for the expenditure of the net proceeds of the tax for the purposes stated in the referendum.
(E) Amounts collected in excess of the required proceeds must first be applied, if necessary, to complete a project for which the tax was imposed; otherwise, the excess amounts must be credited to the general fund of the jurisdiction imposing the tax.
Section 6-12-50. The tax levied pursuant to this chapter must be collected by the South Carolina Tax Commission in the same manner that other sales and use taxes are collected. The commission may prescribe the amounts which may be added to the sales price because of the tax.
Section 6-12-60. (A) The tax authorized by this chapter is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable jurisdiction which are subject to the tax imposed by Chapter 35 of Title 12 and the enforcement provision of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 35 of Title 12 are exempt from the tax imposed by this chapter. The tax imposed by this chapter also applies to tangible personal property subject to the use tax in Section 12-35-810.
(B) Taxpayers required to remit taxes under Section 12-35-810 shall identify the county or municipality, or both, in which the tangible personal property purchased at retail is stored, used, or consumed in this State.
(C) Utilities are required to report sales in the county or municipality, or both, in which consumption of the tangible personal property occurs.
(D) A taxpayer subject to the tax imposed by Article 6, Chapter 35 of Title 12, who owns or manages rental units in more than one county or municipality, or both, shall separately report in his sales tax return the total gross proceeds from business done in each county or municipality.
(E) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this section in a county or municipality, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the local sales and use tax provided in this section if a verified copy of the contract is filed with the South Carolina Tax Commission within six months after the imposition of the local sales and use tax.
(F) Notwithstanding the date of general imposition of the local sales and use tax authorized pursuant to this chapter, with respect to services that are regularly billed on a monthly basis, the local sales and use tax is imposed beginning on the first day of the billing period beginning on or after the date of general imposition.
Section 6-12-70. The proceeds of the tax collected in each county or municipality under this chapter must be disbursed by the State Treasurer as follows:
(1) one percent must be credited to the general fund of the State to offset the costs of administration; and
(2) the remainder must be distributed monthly to the governing body of the county or municipality in which the tax is imposed and used only for the purposes stated in the original imposition ordinance.
Section 6-12-80. The South Carolina Tax Commission shall furnish data to the State Treasurer and to the governing bodies of the counties and municipalities receiving revenues for the purpose of calculating distributions and estimating revenues. The information which must be supplied to counties and municipalities upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240. If because of refunds by the Tax Commission or for any other reason, an overpayment is made to a county or municipality, the State Treasurer shall withhold from subsequent payments a sufficient amount to adjust for the overpayment and direct funds to the proper entity.
Section 6-12-90. The South Carolina Tax Commission may promulgate regulations necessary to implement this chapter."
SECTION 2. This act takes effect upon approval by the Governor.