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SECTION 7. A. The first paragraph of Section 12-37-90 of the 1976 Code is amended to read:

"Except as provided in Section 12-4-580, all counties shall have a full-time assessor, whose responsibility is appraising and listing all real property, whether exempted or not, except real property required by law to be assessed by the commission department and property owned by the federal government, state government, county government or any of its political subdivisions which is exempt from property taxation. If the assessor discovers that any real property required by law to be assessed by the commission department has been omitted, he shall notify the commission department that such property has been omitted and the commission department shall be is required to appraise and assess the omitted property."

B. This section takes effect July 1, 1996.

SECTION 8. Section 12-4-320 of the 1976 Code, as last amended by Act 516 of 1994, is further amended to read:

"Section 12-4-320. The commission department may:

(1) make rules and promulgate regulations, not inconsistent with law, to aid in the performance of its duties. The commission department may prescribe the extent, if any, to which these rules and regulations must be applied without retroactive effect;

(2) upon written application, determine the tax effects of transactions and the tax liability of taxpayers, upon facts furnished to it, and it may revoke or modify the rulings if the facts should develop differently later. The commission department, in its discretion, may publish these rulings. This publication may be in brief hypothetical form so as to give all pertinent facts and decisions without violating the provisions of Section 12-54-240;

(3) compromise any tax, interest, or penalty imposed by this title or other law assigned to it and may return to the owner, in whole or in part, any goods seized or confiscated;

(4) enter into a written agreement with a person with regard to a tax liability. If the agreement is approved by a majority of the commissioners the department, it is final and conclusive and the case may not be reopened by administrative or judicial action or otherwise, except in cases of fraud, malfeasance, or misrepresentation;

(6) if damage by natural forces occurs as defined in Section 12-9-310, prescribe temporary rules including, but not limited to, the filing of returns, payment of taxes, and extensions of due dates.;

(7) waive the retroactive assessment of a state tax when it determines the taxpayer acted in good faith, and that there were reasonable grounds for the taxpayer's interpretation of the applicable law."
SECTION 9. A. Section 12-54-160 of the 1976 Code is amended to read:

"Section 12-54-160. The Commission department, unless prohibited within a specific section, may waive, dismiss, or reduce penalties provided for in this chapter;. Interest may not be waived, dismissed, or reduced except:

(1) when the taxpayer can establish that he followed professional advice which has proved inaccurate; or

(2) if the taxpayer can by clear and convincing evidence establish he did not know he was liable for the tax; or

(3) the imposition of the tax is a result of regulation or other interpretation of existing tax laws."

B. This section takes effect upon approval by the Governor and applies with respect to interest on underpayments of state taxes assessed on and after that date. The provisions of subsection A. of this section also apply to interest paid or accrued in the three years preceding the effective date of this section, but no refund of interest already paid may be made except upon application therefor to the Department of Revenue and Taxation within ninety days of the effective date of this section.

SECTION 10. A. The 1976 Code is amended by adding:

"Section 6-1-60. (A) A county, municipality, and a school district must provide notice to the public by advertising the public hearing before the adoption of its budget for the next fiscal year in the nonclassified section of the largest general circulation newspaper in the area. The public hearing must give the residents of this governing body the opportunity to express their concerns and to provide ideas or input for discussion by the local governing entity. This notice must be given fourteen days in advance of the public hearing, and must be a minimum of two columns by ten inches (four and one-half by ten inches) with at least a twenty-four point headline.

(B) The notice shall include the following:

(2) the time, date, and location of the public hearing on the budget;

(3) the total, actual, and projected expenditures of the current operating fiscal year in the budget of the governing entity;

(4) the proposed total projected operating expenditures for the next fiscal year as proposed in next year's budget for the governing entity;

(5) the proposed or estimated percentage change in operating budgets between the current fiscal year and the proposed budget;

(6) the total, actual, and projected revenue of all property taxes in dollars for the current fiscal year budget;

(7) the proposed total projected revenue of all property taxes in dollars for the proposed budget;

(8) the millage in current year dollars for the current fiscal year;

(9) the proposed millage in dollars as proposed in the budget for the next fiscal year; and

(10) any new fees or taxes that would affect more than five percent of the total proposed budget.

(C) The requirements of this section apply in the preparation of annual budget and supplemental appropriations. When a county, municipality, or school district determines that it requires a greater tax rate after the adoption of the budget or during the current fiscal year, or fails to provide notice within the above-specified period, it must also comply with the notice provisions of this section."

B. This section is effective for fiscal years beginning after June 30, 1995.

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

"Section 6-1-75. (A) As used in this section:

(1) `Consumer Price Index' means the percentage increase if any, in the consumer price index in the last completed calendar year as determined by the Bureau of Labor Statistics of the United States Department of Labor. In the case of a school district, `Consumer Price Index' means the inflation factor set by the Board of Economic Advisors which may not be adjusted by the General Assembly.

(2) `Fee' means a charge imposed by a political subdivision. `Fee' does not include:

(a) a charge for copying public documents;

(b) admission charges to places of recreation or amusement;

(d) an amount charged for debt service on capital projects;

(e) criminal fines or penalties for administrative violations.

(3) `Political subdivision' means a county, municipality, consolidated political subdivision, or school district of this State. A political subdivision does not include a special purpose or public service district.

(4) `Referendum' means a referendum called by the governing body of a political subdivision for the specific purpose of obtaining approval for a property tax increase or imposition of a new fee in which a majority of the qualified electors of the political subdivision voting in the referendum vote in favor of the additional tax or new fee.

(B) (1) The governing body of a political subdivision may not increase the millage it imposes for a tax year over the millage it imposed for the prior year by more than the consumer price index except by referendum. If the consumer price index allows a millage increase without a referendum and no additional millage is imposed for that tax year, then the millage that may be imposed for the succeeding tax year without a referendum may be increased by the millage rate increase allowed but not imposed for the prior tax year. In a reassessment year, the limits imposed by this item apply to a rollback millage rate and not the millage rate imposed for the prior tax year. The rollback millage rate is computed by dividing current year property tax revenues by the budget year property tax assessment base.

(2) If the financing of a service is changed from property tax revenues to user fees, the governing body of the political subdivision shall reduce the millage by an amount sufficient to offset the amount of property tax formerly budgeted to provide the service.

(C) The governing body of a political subdivision may not increase in any one year a fee it imposes by more than the consumer price index.

(D) (1) Except as provided in items (2) and (4) the governing body of a political subdivision may not impose any new fee except by referendum and any new fee may only be imposed to provide a specific service or for the completion of a specific project. In the case of a fee imposed for a specific project, the fee must be removed when the project is complete.

(2) No referendum is required for the imposition of a new fee to comply with a judicial, legislative, or regulatory mandate first applying after June 30, 1996, but before such a fee may be imposed, the governing body of the imposing political subdivision shall provide for a public hearing on the fee with at least thirty days advance notice to the public.

(4) No referendum is required for the governing body of a political subdivision to impose a new fee to meet expenses incurred by the political subdivision as a result of a natural disaster if the causative event was certified a natural disaster by the Governor.

(E) The provisions of this section are cumulative to any other provision of law limiting the revenue raising power of political subdivisions of this State and the provisions of this section may not be construed to amend or repeal any existing provision of law limiting the revenue raising power to the extent those limitations are more restrictive than the provisions of this section."

SECTION 1. The following provisions of this section take effect upon approval by the Governor or as otherwise provided:

Part I,

Part II, Section 6, Section 7(N) and (O), and Section 10

Part III, Section 3

Part IV.

The remaining provisions of this section take effect July 1, 1996, or as otherwise provided but only upon the certification of the State Election Commission to the Code Commissioner and the Department of Revenue and Taxation of a majority "yes" vote in the referendum provided by this section./

Amend sections, totals and title to conform.

Senator PASSAILAIGUE argued in favor of the adoption of the amendment.

Senator PASSAILAIGUE moved that the amendment be adopted.

Senator LEATHERMAN made the point that a quorum was not present. It was ascertained that a quorum was present. The Senate resumed.

Senator LEATHERMAN proposed the following Amendment No. 93 (JIC\5924HTC.95):

Amend the Amendment No. 61, bearing Document Number JIC\5897HTC.95, as and if amended, by striking all of the amending language and inserting:

SECTION 1. The State Election Commission shall conduct a statewide referendum on November 7, 1995, on the question of raising the sales tax in order to provide property tax relief. The state election laws apply to this referendum, mutatis mutandis. The commission shall canvass the results of the referendum and certify the results to the director of the Department of Revenue and Taxation and the Code Commissioner. The referendum question must read substantially as follows:

"Do you favor raising the statewide sales, use, and casual excise tax rate from five to six percent, and raising the three hundred dollar cap on motor vehicles and certain other property in order to exempt food from the sales tax and to grant fifty thousand dollars of the fair market value of each owner-occupied residential property an exemption from all property taxes levied for operating purposes except those levied pursuant to

[] Yes

[] No

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word `Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word `No'."

SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:

Section 12-36-1110. An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter. Revenue of the tax imposed pursuant to this article must be credited to the Property Tax Relief Fund in the State Treasury, a fund separate and distinct from the general fund of the State.

Section 12-36-1120. The revenues in the Property Tax Relief Fund must be distributed quarterly beginning October first of each year by the Comptroller General to reimburse property taxing jurisdictions a sum equal to that not collected in the jurisdiction for property taxes because of Section 12-37-253, the reduction in the assessment ratio imposed pursuant to Section 12-43-220(a), and the additional depreciation allowance for that tax year allowed pursuant to Sections 12-4-565 and 12-37-930. If insufficient revenues are available in the Property Tax Relief Fund to pay the required reimbursements, the Comptroller General shall pay the difference from the general fund of the State. County treasurers and municipal governing bodies where appropriate shall file quarterly reports of estimated revenue losses with the Comptroller General in the manner and at the time the Comptroller General directs. After making any changes necessary to ensure accuracy, the Comptroller General shall make reimbursements based on these estimates. The final accounting for the fiscal year must be filed in the manner provided for homestead exemption reimbursements in Section 12-37-270, mutatis mutandis. For purposes of future distributions, property tax year 1996 is deemed the base year."

SECTION 2. Section 12-36-940 of the 1976 Code is amended to read:

The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect from the purchaser does not relieve the taxpayer from the tax levied by this article.

A retailer may add the amount of the tax to the sales price and the department shall prescribe tables providing the amount to be added to the sales price consistent with the total rate of the tax."

SECTION 3. Section 12-36-2110 of the 1976 Code, as last amended by Section 92A, Part II, Act 497 of 1994, is further amended to read:

"Section 12-36-2110. (A) Notwithstanding the rates of tax imposed by this chapter, the maximum tax rate imposed by this chapter is three hundred dollars four percent on the first six thousand dollars and six percent on amounts in excess of six thousand dollars, but no more than seven hundred fifty dollars, for each sale or lease made or executed after June 30, 1984 1996, or lease executed after August 31, 1985, of each:

(1) aircraft, including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft;

(2) motor vehicle;

(3) motorcycle;

(4) boat;

(5) trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, and horse trailers but not including house trailers or campers as defined in Section 56-3-710;

(6) recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel; or

(7) self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower.

(B) For the sale of a manufactured home, as defined in Section 40-29-20, the tax is calculated as follows:

(1) subtract trade-in allowance from the sales price;

(2) multiply the result from (1) by sixty-five percent;

(3) if the result from (2) is no greater than six thousand dollars, multiply by five six percent for the amount of tax due;

(4) if the result from (2) is greater than six thousand dollars, the tax due is three hundred sixty dollars plus two percent of the amount greater than six thousand dollars.

However, a manufactured home is exempt from any tax that may be due above three hundred sixty dollars as a result of the calculation in item (4) if it meets these energy efficiency levels: storm or double pane glass windows, insulated or storm doors, a minimum thermal resistance rating of the insulation only of R-11 for walls, R-19 for floors, and R-30 for ceilings. However, variations in the energy efficiency levels for walls, floors, and ceilings are allowed and the exemption on tax due above three hundred sixty dollars applies if the total heat loss does not exceed that calculated using the levels of R-11 for walls, R-19 for floors, and R-30 for ceilings. The edition of the American Society of Heating, Refrigerating, and Air Conditioning Engineers Guide in effect at the time is the source for heat loss calculation. The dealer selling the manufactured home must maintain records, on forms provided by the State Energy Office, on each manufactured home sold which contains the above calculations and verifying whether or not the manufactured home met the energy efficiency levels provided for in this subsection. These records must be maintained for three years and must be made available for inspection upon request of the Department of Consumer Affairs or the State Energy Office.

(C) For the sale of each musical instrument, or each piece of office equipment, purchased by a religious organization exempt under Internal Revenue Code Section 501(c)(3), the maximum tax imposed by this chapter is three hundred sixty dollars. The musical instrument or office equipment must be located on church property and used exclusively for the organization's exempt purpose. The religious organization must furnish to

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