Current Status Bill Number:3029 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19950110 Primary Sponsor:Vaughn All Sponsors:Vaughn, Cato, Davenport, Bailey, McKay, Simrill Drafted Document Number:JIC\5109HTC.95 Residing Body:House Subject:Sales and use tax, local option
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19960320 Continued the Bill
House 19960314 Committee report: majority 30 HWM
favorable, with amendment,
minority unfavorable
House 19950110 Introduced, read first time, 30 HWM
referred to Committee
House 19941214 Prefiled, referred to Committee 30 HWM
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COMMITTEE REPORT
March 14, 1996
H. 3029
Introduced by REPS. Vaughn, Cato, Davenport, Bailey, McKay, and Simrill
S. Printed 3/14/96--H.
Read the first time January 10, 1995.
To whom was referred a Bill (H. 3029), to amend Sections 4-10-10 and 4-10-50, as amended, Code of Laws of South Carolina, 1976, relating to definitions and use of revenue for purposes of the local sales and use tax, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking SECTIONS 3 and 4 and inserting:
/SECTION 3. Section 4-10-60 of the 1976 Code is repealed.
SECTION 4. This act takes effect July 1, 1996./
Amend title to conform.
Majority favorable. Minority unfavorable.
HENRY E. BROWN, JR. JENNINGS G. McABEE
For Majority. GILDA COBB-HUNTER
JUANITA M. WHITE
For Minority.
This bill would have no effect on state or local revenue. Statewide, total dollars going to property tax relief rollback would not be affected. However, the allocation of the estimated $76,623,535 between donor and receiving counties would be changed. Donor counties by FY 2000-01 could apply all local option sales tax revenue collected in their counties to property tax rollback and other purposes. Counties currently collecting less than the minimum distribution level of $2,300,000 receive a portion of the 5% mandated donation from counties collecting $5,000,000 or more annually from the local option sales tax. Attached are spreadsheets detailing the estimated local option revenue collections and allocations for FY 1996-97 under statutes and assuming this legislation was fully implemented.
Approved By:
Burnet R. Maybank, III
S.C. Department of Revenue
TO AMEND SECTIONS 4-10-10 AND 4-10-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS AND USE OF REVENUE FOR PURPOSES OF THE LOCAL SALES AND USE TAX, SO AS TO DELETE THE DEFINITION OF "MINIMUM DISTRIBUTION" AND PROVIDE THAT THE REVENUES OF THE COUNTY/MUNICIPAL REVENUE FUND MUST BE USED TO PROVIDE PROPERTY TAX CREDITS IN THE FIRST YEAR OF IMPLEMENTATION AND THEREAFTER MAY BY ORDINANCE BE USED FOR OTHER PURPOSES SUBJECT TO A PERCENTAGE LIMIT; AND TO REPEAL SECTION 4-10-60 RELATING TO REDISTRIBUTION OF LOCAL SALES AND USE TAX REVENUES AMONG COUNTIES AND TO PROVIDE TRANSITION PROVISIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 4-10-10(4) of the 1976 Code is amended to read:
"(4) Reserved Minimum distribution means an amount equal to two million dollars for the first distribution and after that adjusted annually on a cumulative basis by a percentage equal to the increase in revenues credited to the Education Improvement Act Fund for the most recently completed fiscal year over the revenues credited to that fund in the preceding fiscal year."
SECTION 2. Section 4-10-50(C) of the 1976 Code, as added by Act 168 of 1991, is amended to read:
"(C) revenue distributed to a county or municipality in any one year under this section may must be used to provide an additional property tax credit in the manner provided in Section 4-10-40(B), except that after the first year of implementation, the governing body of the county or municipality may by ordinance use the revenues of the County/Municipal Revenue Fund for other purposes. However, the ordinance may not reduce the percentage of total revenues used for the property tax credit in the county area, including the revenues for the Property Tax Credit Fund, by more than ten percent over the percentage used for the credit in the preceding year and not more than twenty-nine percent cumulatively. Additionally, the ordinance may not reduce the percentage used for the property tax credit more than fifteen percent in any two consecutive years. Once reduced, the percentage used for the tax credit later may be increased, but any subsequent reduction in the percentage is limited in the manner provided in this subsection."
SECTION 3. Section 4-10-60 of the 1976 Code is repealed with respect to counties imposing the local sales and use tax after June 30, 1995. The provisions of Sections 4-10-60 and 4-10-10(4) of the 1976 Code as repealed by this act continue to apply through June 30, 2000, for counties imposing the local sales and use tax before July 1, 1995, but the withholding percentage rate for all donor counties shall decline by one percent in each fiscal year, beginning in fiscal year 1996-97, according to the following schedule:
Fiscal Year Percentage Withheld
1996-97 four percent
1997-98 three percent
1998-99 two percent
1999-2000one percent
after June 30, 2000 No withholding.
SECTION 4. This act takes effect July 1, 1995.