South Carolina General Assembly
111th Session, 1995-1996

Bill 3901


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       3901
Type of Legislation:               General Bill GB
Introducing Body:                  House
Introduced Date:                   19950329
Primary Sponsor:                   Harrell
All Sponsors:                      Harrell, Fleming, Cobb-Hunter,
                                   Seithel, A. Young, Limbaugh, Wilkins,
                                   Wofford, Hallman, H. Brown, Cain,
                                   Cotty, Martin, D. Smith, Fulmer,
                                   L. Whipper, Shissias, Quinn, McCraw,
                                   Knotts, Stuart, Harrison, Sheheen,
                                   Huff, Klauber, Beatty, Limehouse,
                                   Whatley, Harwell, Hodges, J. Young,
                                   Govan, Herdklotz, Jennings,
                                   Richardson, Hutson, Delleney and
                                   McElveen 
Drafted Document Number:           JIC\5620HTC.95
Current Committee:                 Conference Committee 98
                                   HCC
Date of Last Amendment:            19960613
Subject:                           Property taxes, delinquent;
                                   interest rate



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

Senate  19960613  Free Conference Committee Report         89 SFCC
                  adopted
Senate  19960613  Free Conference Powers granted,          89 SFCC McConnell
                  appointed Senators to Committee                  Moore
                  of Free Conference                               Passailaigue
House   19960514  Appointed Rep. to Committee of           98 HCC  Felder
                  Conference, replacing Rep. Harrison
Senate  19960423  Conference powers granted,               88 SCC  McConnell
                  appointed Senators to Committee                  Moore
                  of Conference                                    Passailaigue
House   19960417  Conference powers granted,               98 HCC  Harrison
                  appointed Reps. to Committee of                  D. Smith
                  Conference                                       Limbaugh
House   19960417  Insists upon amendment
Senate  19960416  Non-concurrence in House amendment
House   19960410  Senate amendments amended,
                  returned to Senate with amendment
House   19960410  Debate interrupted
House   19960403  Debate adjourned on Senate
                  amendments until Tuesday, 19960409
House   19960328  Debate adjourned on Senate
                  amendments until Wednesday,
                  19960403
House   19960320  Debate adjourned on Senate
                  amendments until Wednesday, 19960327
Senate  19960313  Amended, read third time, 
                  returned to House with amendment
Senate  19960312  Amended, debate interrupted
                  by adjournment
Senate  19960307  Debate interrupted by adjournment
Senate  19960306  Debate interrupted by adjournment
Senate  19960305  Debate interrupted by adjournment
Senate  19960229  Amended, debate interrupted
                  by adjournment
Senate  19960228  Debate interrupted by adjournment
Senate  19960201  Remain in Committee,                     06 SF
                  retaining its place on the Calendar
                  until 19960228                           
Senate  19960116  Recommitted to Committee,                06 SF
                  retaining its place on the Calendar
                  until 19960213
Senate  19960110  Debate interrupted
Senate  19950601  Debate interrupted by adjournment
Senate  19950601  Amended
Senate  19950530  Debate interrupted by adjournment
Senate  19950529  Debate interrupted by adjournment
Senate  19950524  Amended, debate interrupted
                  by adjournment
Senate  19950523  Debate adjourned
Senate  19950516  Read second time, notice of
                  general amendments
Senate  19950509  Recalled from Committee,                 06 SF
                  placed on the Calendar
Senate  19950425  Introduced, read first time,             06 SF
                  referred to Committee
House   19950421  Read third time, sent to Senate
House   19950420  Read second time, unanimous consent
                  for third reading on the next
                  Legislative day
House   19950412  Committee report: Favorable              30 HWM
House   19950329  Introduced, read first time,             30 HWM
                  referred to Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken
Indicates New Matter

AMENDED--NOT PRINTED IN THE HOUSE

Amendment No. 2 (Doc Name P:\amend\GJK\22651HTC.96)

Amendment No. 3 (Doc Name H-MEMBER\B21\1)

Amendment No. 4 (Doc Name P:\amend\GJK\22656SD.96)

April 10, 1996

H. 3901

Introduced by REPS. Harrell, Fleming, Cobb-Hunter, Seithel, A. Young, Limbaugh, Wilkins, Wofford, Hallman, H. Brown, Cain, Cotty, Martin, D. Smith, Fulmer, L. Whipper, Shissias, Quinn, McCraw, Knotts, Stuart, Harrison, Sheheen, Huff, Klauber, Beatty, Limehouse, Whatley, Harwell, Hodges, J. Young, Govan, Herdklotz, Jennings, Richardson, Hutson, Delleney and McElveen

S. Printed 3/13/96--S.

Read the first time April 25, 1995.

A BILL

TO AMEND SECTION 12-51-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDEMPTION OF REAL PROPERTY SOLD FOR DELINQUENT TAXES, SO AS TO INCREASE THE INTEREST RATE FROM EIGHT TO TWELVE PERCENT IN THE LAST SIX MONTHS OF THE REDEMPTION PERIOD FOR ALL REAL PROPERTY NOT ASSESSED AS OWNER-OCCUPIED RESIDENTIAL PROPERTY.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Article 1, Chapter 9, Title 4 of the 1976 Code is amended by adding:

"Section 4-9-142. (A) The governing body of a county may not impose any new tax after December 31, 1995, unless the tax is specifically authorized by the General Assembly in a prior act, by this section, or in a future act.

The governing body of a county may not increase tax or uniform service charge rates, excluding utilities, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the consumer price index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:

(1) in response to a natural or environmental disaster as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and service charge rates must return to the rates immediately preceding the emergency;

(2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;

(3) to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, facilities, or equipment; or

(4) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670.

(B) Existing tax and uniform service charge rates may be further increased only upon a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. Additionally, no supermajority is required to further increase the rate of the charges specifically authorized by this subsection if, in a referendum held for this purpose, a majority of the qualified electors of the county voting in the referendum approve the imposition of the increased rate of the existing charge. This referendum must be called by a majority vote of the governing body of the county. The referendum must be held only in that portion of the county where the rates of such charges are to be raised. This subsection does not apply to the vote of a county council in the preparation or adoption of the budget of a school district that is not fiscally autonomous.

(C) The imposition of a new tax expressly authorized by the General Assembly by general law or a new uniform service charge requires a two-thirds vote of the governing body of the county except that if the governing body is comprised of fewer than six members or more than twelve members, a three-fifths majority is required.

(D)(1) Notwithstanding any other provision of law, the governing body of a county may by ordinance impose a uniform service charge on accommodations provided transients and on food and beverages by facilities engaged in selling food for consumption on the premises and/or by establishments licensed for on-premises consumption of alcohol, beer, or wine. The maximum rate that may be imposed on accommodations is three percent of the measure of the charge and in the case of food and beverages, one percent of the measure of the charge. The charges on accommodations authorized by this subsection cannot be imposed in an incorporated area of the county without the approval of a two-thirds majority of the governing body of the affected municipality, and the charges on food and beverages authorized by this subsection cannot be imposed in an incorporated area of the county. The charges authorized by this subsection may be imposed or raised only in the manner provided in subsection (C) except that no supermajority is required to impose or increase the rate of the charges specifically authorized by this subsection if, in a referendum held for this purpose, a majority of the qualified electors of the county voting in the referendum approve the imposition of the new charge or the increased rate of the existing charge. The referendum must be held only in that portion of the county where the charges are to be imposed or rates of such charges raised. The maximum rates provided in this subsection may not be exceeded regardless of the method of imposition.

(2)(a) The revenues of the charges authorized by this subsection may be used only for:

(i) tourism-related buildings including, but not limited to, civic centers, coliseums, and aquariums;

(ii) cultural, recreational, or historical facilities;

(iii) beach access and renourishment;

(iv) highways, roads, streets, and bridges providing access to tourist destinations; and

(v) advertisements and promotion related to tourism development.

(b) In counties where at least nine hundred thousand dollars in accommodations taxes is collected annually pursuant to Section 12-36-920, the revenues of the charges also may be used for the operation and maintenance of those items provided in (i) through (v) including, police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities.

(3) Nothing in this subsection may be construed as authorizing additional charges on accommodations and food and beverages when the governing body of the county enacted before 1996 taxes, fees, or uniform service charges on these items measured substantially in the same manner. To the extent that the maximum charge rates authorized in this subsection have not been exceeded in cumulative local impositions occurring before 1996, any rate increases are allowed only as provided in this subsection.

(E) For the tax year of implementation of the values determined by a countywide equalization and reassessment program, the millage rate for all real and personal property must not exceed the rollback millage, as defined in this subsection, except that the rollback millage may be increased by the percentage increase in the consumer price index, based on the southeastern average, for the year immediately preceding the year the reassessment values are implemented. The millage rate may be further increased during the year of implementation of reassessment values upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For purposes of this subsection, the rollback millage rate is computed by dividing the total county property tax collections for the prior year by the new reassessment tax base for all property subject to tax and all fee-in-lieu property within the county."

SECTION 2. Article 1, Chapter 21, Title 5 of the 1976 Code is amended by adding:

"Section 5-21-70. (A) The governing body of a municipality may not impose any new tax after December 31, 1995, unless the tax is specifically authorized by the General Assembly in a prior act; by this section; or in a future act.

The governing body of a municipality may not increase tax or uniform service charge rates, excluding utilities, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:

(1) in response to a natural or environmental disaster as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and service charge rates must return to the rates immediately preceding the emergency; or

(2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;

(3) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment; or

(4) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670.

(B) Except as provided in subsection (D) and notwithstanding any provision of law, tax and uniform service charge rates may be further increased only upon a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.

(C) The imposition of a new tax expressly authorized by the General Assembly by general law or a new uniform service charge requires a two-thirds vote of the governing body of the municipality except that if the governing body is comprised of fewer than six members or more than twelve members, a three-fifths majority is required.

(D)(1) Notwithstanding any other provision of law, the governing body of a municipality by ordinance may impose a uniform service charge on accommodations provided transients within the municipality and on food and beverages served by facilities located in the municipality engaged in selling food for consumption on the premises and/or by establishments located in the municipality licensed for on-premises consumption of alcohol, beer, or wine. The maximum rate that may be imposed on accommodations is three percent of the measure of the charge and in the case of food and beverages, one percent of the measure of the charge. However, if a municipality has approved, by a two-thirds vote of its governing body, the imposition by a county of a charge on accommodations within the municipality, the aggregate county and municipal rate on accommodations shall not exceed three percent of the measure of the charge. The charges authorized by this subsection may be imposed or raised only in the manner provided in subsection (C) except that no supermajority is required to impose or increase the rate of the charges specifically authorized by this subsection if, in a referendum held for this purpose, a majority of the qualified electors of the municipality voting in the referendum approve the imposition of the new charge or the increased rate of the existing charge. The maximum rates provided in this subsection may not be exceeded regardless of the method of imposition.

(2)(a) The revenues of the charges authorized by this subsection may be used only for:

(i) tourism-related buildings including, but not limited to, civic centers, coliseums, and aquariums;

(ii) cultural, recreational, or historical facilities;

(iii) beach access and renourishment;

(iv) highways, roads, streets, and bridges providing access to tourist destinations; and

(v) advertisements and promotion related to tourism development.

(b) In counties where at least nine hundred thousand dollars in accommodations taxes is collected annually pursuant to Section 12-36-920, the revenues of the charges also may be used for the operation and maintenance of those items provided in (i) through (v) including, police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities.

(3) Nothing in this subsection may be construed as authorizing additional charges on accommodations and food and beverages when the governing body of the municipality enacted before 1996 taxes, fees, or uniform service charges on these items measured substantially in the same manner. To the extent that the maximum charge rates authorized in this subsection have not been exceeded in cumulative local impositions occurring before 1996, any rate increases are allowed only as provided in this subsection.

(E) For the tax year of implementation of the values determined by a countywide equalization and reassessment program, the millage rate for all real and personal property must not exceed the rollback millage, as defined in this subsection, except that the rollback millage may be increased by the percentage increase in the consumer price index, based on the southeastern average, for the year immediately preceding the year the reassessed values are implemented. The millage rate may be further increased during the year of implementation of reassessment values upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members, a three-fifths vote is required. For purposes of this subsection, the rollback millage rate is computed by dividing the total municipal property tax collections for the prior year by the new reassessment tax base for all property subject to tax and all fee-in-lieu property within the municipality."

SECTION 3. Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-60. (A) A governing body authorized by law to levy special purpose or public service district taxes may not impose any new tax after December 31, 1995, unless specifically authorized by the General Assembly in a prior act, by this section; or in a future act.

A governing body authorized by law to levy special purpose or public service district taxes may not increase tax rates or uniform service charges, excluding utilities, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the consumer price index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:

(1) in response to a natural or environmental disaster as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and service charge rates must return to the rates immediately preceding the emergency;

(2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;

(3) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment; or

(4) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670.

(B) Notwithstanding any provision of the law, tax and uniform service charge rates may be further increased upon a two-thirds vote of a governing body of a special purpose or public service district. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.

(C) The imposition of a new tax expressly authorized by the General Assembly requires a two-thirds vote of the governing body authorized by law to levy special purpose or public service district taxes except that if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.

(D) For the tax year of implementation of the values determined by a countywide equalization and reassessment program, the millage rate for all real and personal property must not exceed the rollback millage, as defined in this subsection, except that the rollback millage may be increased by the percentage increase in the consumer price index, based on the southeastern average, for the year immediately preceding the year the reassessment values are implemented. The millage rate may be further increased during the year of implementation of reassessment values upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members, a three-fifths vote is required. For purposes of this subsection, the rollback millage rate is computed by dividing the total special purpose or public service district property tax collections for the prior year by the new reassessment tax base for all property subject to tax and all fee-on-lieu property within the special purpose or public service district.

(F) The provisions of this section may not be construed to amend or repeal any existing provision of law limiting the fiscal autonomy of a governing body authorized by law to levy special purpose or public service district taxes to the extent those limitations are more restrictive than the provisions of this section."

SECTION 4. Chapter 73, Title 59 of the 1976 Code is amended by adding:

"Section 59-73-35. (A) The governing body authorized by law to levy school taxes may not impose any new tax after December 31, 1995, unless specifically authorized by the General Assembly. The governing body authorized by law to levy school taxes may not increase tax rates above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the consumer price index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:

(1) in response to a natural or environmental disaster as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and service charge rates must return to the rates immediately preceding the emergency;

(2) to meet the minimum required local Education Finance Act inflation factor as projected by the State Budget and Control Board, Division of Research and Statistics, and the per pupil maintenance of effort requirement of Section 59-21-1030;

(3) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;

(4) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment; or

(5) millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy saving performance contracts as provided in Section 48-52-670.

(B) Notwithstanding any provision of the law, rates may be further increased upon a two-thirds vote of the governing body authorized by law to levy school taxes. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.

(C) The imposition of a new tax expressly authorized by the General Assembly requires a two-thirds vote of the governing body authorized to levy school taxes except that if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.

(D) For the tax year of implementation of the values determined by a countywide equalization and reassessment program, the millage rate for all real and personal property must not exceed the rollback millage, as defined in this subsection, except that the rollback millage may be increased by the percentage increase in the consumer price index, based on the southeastern average, for the year immediately preceding the year the reassessment values are implemented. The millage rate may be further increased during the year of implementation of reassessment values upon a two-thirds vote of the governing body authorized by law to levy school taxes. However, if the governing body has fewer than six members, a three-fifths vote is required. For purposes of this subsection, the rollback millage rate is computed by dividing the total school district property tax collections for the prior year by the new reassessment tax base for all property subject to tax and all fee-on-lieu property within the school district.

(F) The provisions of this section may not be construed to amend or repeal any existing provision of law limiting the fiscal autonomy of a governing body authorized to levy school taxes to the extent those limitations are more restrictive than the provisions of this section. For purposes of this section, the `governing body authorized by law to levy school taxes' does not include the General Assembly."

SECTION 5. That portion of Section 4-9-30(5)(a) of the 1976 Code before subitem (i) is amended to read:

"(a) to assess property and levy ad valorem property taxes and uniform service charges, including the power to tax different areas at different rates related to the nature and level of governmental services provided and make appropriations for functions and operations of the county, including, but not limited to, appropriations for general public works, including roads, drainage, street lighting, and other public works; water treatment and distribution; sewage collection and treatment; courts and criminal justice administration; correctional institutions; public health; social services; transportation; planning; economic development; recreation; public safety, including police and fire protection, disaster preparedness, regulatory code enforcement; hospital and medical care; sanitation, including solid waste collection and disposal; elections; libraries; and to provide for the regulation and enforcement of the above them. However, prior to before the creation of a special tax district for the purposes enumerated in this item, one of the following procedures is required:"

SECTION 6. Section 4-9-30 of the 1976 Code, as last amended by Act 405 of 1994, is further amended by adding after item (5) and before item (6):

"(5.1) to levy a uniform service charge on a portion of the community which will receive special benefit as a result of the improvement made with the proceeds of the charge; the service charge must be maintained in a dedicated fund, the proceeds specifically allocated to the specific use and purpose for which the charge is levied and the revenues collected must not exceed the cost of the improvements made with the proceeds of the charge. Any revenues collected heretofore and described as a fee or charge now must be termed a uniform service charge and must conform to the requirements of this item."

SECTION 7. Section 5-7-30 of the 1976 Code, as last amended by Act 171 of 1993, is further amended to read:

"Section 5-7-30. Each municipality of the State, in addition to the powers conferred to its specific form of government, may enact regulations, resolutions, and ordinances, not inconsistent with the Constitution and general law of this State, including the exercise of powers in relation to roads, streets, markets, law enforcement, health, and order in the municipality or respecting any subject which appears to it necessary and proper for the security, general welfare, and convenience of the municipality or for preserving health, peace, order, and good government in it, including the authority to levy and collect taxes on real and personal property and as otherwise authorized in this section, make assessments, and establish uniform service charges relating to them; the authority to abate nuisances; the authority to provide police protection in contiguous municipalities and in unincorporated areas located not more than three miles from the municipal limits upon the request and agreement of the governing body of such the contiguous municipality or the county, including agreement as to the boundaries of such police jurisdictional areas, in which case the municipal law enforcement officers shall have the full jurisdiction, authority, rights, privileges, and immunities, including coverage under the workers' compensation law, which they have in the municipality, including the authority to make arrests, and to execute criminal process within the extended jurisdictional area; provided, however, that this shall does not extend the effect of the laws of the municipality beyond its corporate boundaries; grant franchises for the use of public streets and make charges for them; engage in the recreation function; levy a business license tax on gross income, but a wholesaler delivering goods to retailers in a municipality is not subject to the business license tax unless he the wholesaler maintains within the corporate limits of the municipality a warehouse or mercantile establishment for the distribution of wholesale goods; and a business engaged in making loans secured by real estate is not subject to the business license tax unless it has premises located within the corporate limits of the municipality and no entity which is exempt from the license tax under another law nor or a subsidiary or affiliate of an exempt entity is subject to the business license tax; borrow in anticipation of taxes; and pledge revenues to be collected and the full faith and credit of the municipality against its note and conduct advisory referenda. The municipal governing body may fix fines and penalties for the violation of municipal ordinances and regulations not exceeding five hundred dollars or imprisonment not exceeding thirty days, or both.

For the purpose of providing and maintaining parking for the benefit of a downtown commercial area, a municipality may levy a surtax upon the business license of a person doing business in a designated area in an amount not to exceed fifty percent of the current yearly business license tax upon terms and conditions fixed by ordinance of the municipal council. The area must be designated by council only after a petition is submitted by not less than two-thirds of the persons paying a business license tax in the area and who paid not less than one-half of the total business license tax collected for the preceding calendar year requesting the designation of the area. The business within the designated area which is providing twenty-five or more parking spaces for customer use is required to pay not more than twenty-five percent of a surtax levied pursuant to the provisions of this paragraph.

The municipality may levy a uniform service charge on a portion of the community which will receive special benefit as a result of the improvement made with the proceeds of the charge; the service charge must be maintained in a dedicated fund, the proceeds specifically allocated to the specific use and purpose for which the charge is levied and the revenues collected must not exceed the cost of the improvements made with the proceeds of the charge. Any revenues collected heretofore and described as a fee or charge now must be termed a uniform service charge and must conform to these requirements."

SECTION 8. Section 4-29-67 of the 1976 Code, as last amended by Act 32 of 1995, is further amended by adding an appropriately lettered subsection at the end to read:

"( ) The provisions of Sections 4-9-142, 5-21-70, 6-1-60 and 59-73-35 do not apply with respect to calculating the fee in lieu of taxes allowed pursuant to this section and Chapter 12 of this title."

SECTION 9. A. Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-85. Municipalities, counties, school districts, or special purpose districts may not impose any fee or tax of any nature or description on the transfer of real property unless the General Assembly has expressly authorized by general law the imposition of the fee or tax."

B. Notwithstanding the provisions of Section 6-1-85 of the 1976 Code as added by this act, the governing body of any municipality, county, school district, or special purpose district which has enacted and collected any fee or tax which is charged on the transfer of real estate may continue to collect the fees or taxes until the earlier of:

(1) the end of the entity's current fiscal year as of the effective date of this section; or

(2) January 1, 1997.

C. This section takes effect upon approval by the Governor.

SECTION 10. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION 11. A. The State Election Commission shall conduct a statewide referendum on November 5, 1996 on the question of raising the sales tax in order to provide personal property automobile tax relief.

The referendum question shall read: "Do you favor raising the statewide sales, use and casual excise tax rate from five to six percent to set aside the proceeds of the additional one percent to provide for personal property automobile tax relief, with the definition of "personal property automobile tax" being defined as tax levied on private passenger cars or pickup trucks."

If the sales tax is increased statewide from five to six percent and the proceeds therefrom used to eliminate ad valorem property taxes on private passenger cars and pickup trucks, no county, municipality or other taxing entity may impose any ad valorem property taxes on private passenger cars and pickup trucks while the statewide sales tax is at six percent. Further, the revenues raised from the additional one percent sales tax must be distributed to the several counties and municipalities of this State on a pro rata percentage basis as the General Assembly shall provide based on registrations of these types of vehicles in that jurisdiction as compared to registrations of these types of vehicles statewide.

SECTION 12. This act takes effect upon approval by the Governor.

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