Current Status Bill Number:245 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950110 Primary Sponsor:Reese All Sponsors:Reese, Rose Drafted Document Number:JIC\5093HTC.95 Companion Bill Number:173 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Optional Special Sales and Use Tax Act
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19950110 Introduced, read first time, 06 SF
referred to Committee
Senate 19941031 Prefiled, referred to Committee 06 SF
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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) The governing body of a county or municipality may vote to impose the tax authorized by this chapter, subject to a referendum, by enacting an ordinance. 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 seven years, for which the tax may be imposed; and
(3) the maximum cost of the project or facilities funded from proceeds of the tax and the maximum 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 imposing the optional special sales and use tax in the jurisdiction. The referendum must be held on the Tuesday following the first Monday in November. 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
Yes []
No []
(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. A subsequent referendum on this question must not be held more than once in twelve months and any referendum must be held on the date specified in subsection (B). The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the appropriate governing body and to the Department of Revenue and Taxation. 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 May first following the date of the referendum. If the certification is not timely made to the Department of Revenue and Taxation, the imposition is postponed for twelve months.
(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 month during which the Department of Revenue and Taxation 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) 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.
(D) Amounts collected in excess of the required proceeds first must 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. (A) The tax levied pursuant to this chapter must be administered and collected by the Department of Revenue and Taxation in the same manner that other sales and use taxes are collected. The department may prescribe the amounts which may be added to the sales price because of the tax.
(B) 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 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this chapter. The gross proceeds of the sale of food which lawfully may be purchased with United States Department of Agriculture food coupons is 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 Article 13, Chapter 36 of Title 12.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36 of Title 12 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.
(D) Utilities are required to report sales in the county or municipality, or both, in which consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920, 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.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this chapter 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 special local sales and use tax provided in this section if a verified copy of the contract is filed with the Department of Revenue and Taxation within six months after the imposition of the special local sales and use tax.
(G) Notwithstanding the imposition date of the special local sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the special local sales and use tax is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 6-12-60. The revenues of the tax collected in each county or municipality under this chapter must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue and Taxation of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county or municipality in which the tax is imposed and these revenues must be used only for the purpose stated in the imposition ordinance. The State Treasurer may correct misallocation costs or refunds by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocation.
Section 6-12-70. The Department of Revenue and Taxation shall furnish data to the State Treasurer and to 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.
Section 6-12-80. The Department of Revenue and Taxation may promulgate regulations necessary to implement this chapter."
SECTION 2. This act takes effect upon approval by the Governor.