Current Status Bill Number:4492 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960124 Primary Sponsor:Wilkins All Sponsors:Wilkins, Rice, Meacham, Whatley, Klauber, Wofford, Seithel, Fulmer, Knotts, Sharpe, H. Brown, Harrell, Easterday, Haskins, Cato, D. Smith, Townsend, Fleming, Young-Brickell, Cotty, J. Brown, Harrison, Vaughn, Cain, Sandifer, Witherspoon, Tripp, Robinson, Wells, Gamble and Riser Drafted Document Number:bbm\10498htc.96 Residing Body:House Current Committee:Judiciary Committee 25 HJ Date of Last Amendment:19960221 Subject:Political subdivisions, imposing taxes or fees
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19960424 Recommitted to Committee 25 HJ
House 19960417 Debate adjourned until
Wednesday, 19960424
House 19960320 Debate adjourned until
Wednesday, 19960327
House 19960312 Debate adjourned until
Tuesday, 19960319
House 19960307 Recalled from Committee 25 HJ
House 19960306 Recommitted to Committee, 25 HJ
retaining its place on the
Calendar
House 19960222 Reconsidered vote whereby
read second time
House 19960221 Amended, read second time
House 19960213 Debate adjourned until
Tuesday, 19960220
House 19960208 Objection by Representative Wilkins
Simrill
Wells
Askins
Allison
McCraw
Richardson
Vaughn
Meacham
Harrison
Keyserling
Young
Phillips
R. Smith
Marchbanks
Loftis
Littlejohn
Davenport
Wilkes
Stuart
Bailey
House 19960207 Committee report: Favorable with 25 HJ
amendment
House 19960124 Introduced, read first time, 25 HJ
referred to Committee
View additional legislative information at the LPITS web site.
RECALLED
March 7, 1996
H. 4492
Introduced by REPS. Wilkins, Rice, Meacham, Whatley, Klauber, Wofford, Seithel, Fulmer, Knotts, Sharpe, H. Brown, Harrell, Easterday, Haskins, Cato, D. Smith, Townsend, Fleming, Young-Brickell, Cotty, J. Brown, Harrison, Vaughn, Cain, Sandifer, Witherspoon, Tripp, Robinson, Wells, Gamble and Riser
S. Printed 3/7/96--H.
Read the first time January 24, 1996.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-85 SO AS TO PROHIBIT MUNICIPALITIES, COUNTIES, SPECIAL PURPOSE OR PUBLIC SERVICE DISTRICTS FROM IMPOSING TAXES OR FEES ON INDIVIDUALS, CORPORATIONS, OR OTHER BUSINESS ENTITIES AND TO EXEMPT FROM THIS PROHIBITION TAXES AND FEES ENACTED BEFORE DECEMBER 31, 1995, OR TAXES AND FEES AUTHORIZED EXPRESSLY BY THE GENERAL ASSEMBLY.
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 by general law. 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) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, facilities, or equipment; or
(3) 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. 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 served in establishments licensed for on-premises consumption. 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, when a charge is imposed on food and beverages, the maximum rate of the accommodations charge is two percent. The charges authorized by this subsection may be imposed within an incorporated area of the county only with the approval of a two-thirds majority of the governing body of the affected municipality and these charges cannot be imposed in a municipality which has imposed either or both of these charges within its jurisdiction. 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) The revenues of the charges authorized by this subsection may be used only for:
(a) the development, design, and construction of facilities for civic and meeting activities including required sewer, water, roads, and infrastructure;
(b) the control of waterfront erosion; and
(c) construction and maintenance of major tourist access highways in those counties which have a high concentration of tourism and travel activity. `High concentration of tourism and travel activity' is defined as those counties generating three million or more dollars in state accommodations tax in the 1994-95 fiscal year. This base rate must be adjusted upward annually by the consumer price index for the southeastern United States.
(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, a three-fifths vote is required. For purposes of this subsection, the rollback millage rate is computed by dividing the budget year property tax assessment base by the current year's property tax revenues."
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 by general law. 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) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution;
(2) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment; or
(3) 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 in establishments located in the municipality licensed for on-premises consumption. 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, when a charge is imposed on food and beverages, the maximum rate of the accommodations charge is two percent. 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) The revenues of the charges authorized by this subsection may be used only for:
(a) the development, design, and construction of facilities for civic and meeting activities including required sewer, water, roads, and infrastructure;
(b) the control of waterfront erosion; and
(c) construction and maintenance of major tourist access highways in those counties which have a high concentration of tourism and travel activity. For purposes of this subitem, `high concentration of tourism and travel activity' is defined as those counties generating three million or more dollars in state accommodations tax in the 1994-95 fiscal year. This base rate must be adjusted upward annually by the consumer price index for the southeastern United States.
(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 budget year property tax assessment base by the current year's property tax revenues."
SECTION 3. 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 4. 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 5. 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 6. 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 7. 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 and 5-21-70 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 8. 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 9. This act takes effect upon approval by the Governor.