Current Status Bill Number:1055 Type of Legislation:Joint Resolution JR Introducing Body:Senate Introduced Date:19980219 Primary Sponsor:Drummond All Sponsors:Drummond, Bryan, Lander, Courson, J. Verne Smith, Elliott, Mescher, O'Dell, Ford, Reese, Short and Holland Drafted Document Number:kgh\15424htc.98 Companion Bill Number:3904 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Property tax assessment ratio, titled by federal or state agency; separate class established for; Constitution
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19980402 Introduced, read first time, 30 HWM
referred to Committee
Senate 19980401 Read third time, sent to House
Senate 19980331 Read second time, notice of
general amendments
Senate 19980327 Recalled from Committee, 06 SF
placed on the Calendar
Senate 19980219 Introduced, read first time, 06 SF
referred to Committee
View additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
RECALLED
March 27, 1998
S. 1055
Introduced by Senators Drummond, Bryan, Lander, Courson, J. Verne Smith, Elliott, Mescher, O'Dell, Ford, Reese, Short and Holland
S. Printed 3/27/98--S.
Read the first time February 19, 1998.
This joint resolution has no impact on state revenue. This joint resolution has the potential to cause a shift in tax incidence pursuant to Section 6-1-85(b).
This joint resolution would allow the governing body of the county in consultation with all property taxing entities in the county to lower the assessment ratio from 10.5% to 6.0% on cars, boats, motors, and aircrafts.
Approved By:
William C. Gillespie
Board of Economic Advisors
This joint resolution would have no negative impact on local government revenues. Local governments would adjust their millage to make up for the shortfall. This joint resolution has the potential to cause a shift in tax incidence pursuant to Section 6-1-85(b).
This joint resolution would allow the governing body of the county in consultation with all property taxing entities in the county to lower the assessment ratio from 10.5% to 6.0% on cars, boats, motors, and aircrafts. Taxpayers are estimated to remit approximately $547 million in local property taxes for these classes of property in FY 1998-99. If all counties lowered the assessment ratio to 6.0% of these properties, local governments would lose approximately $234 million in FY 1998-99 if they did not adjust their millage. It is assumed that local governments would adjust their millage upward on all classes of property to make up this shortfall.
Approved By:
William C. Gillespie
Division of Budget & Analysis
This joint resolution would change the incidence of local property taxes among classes of property. Those changes from the levels that would occur in the absence of this joint resolution are as follows:
Category ($ Million) FY 1998 FY 1999 FY 2000 FY 2001FY 2002
Personal Property (Vehicles) 0 -191 -204 -217-231
Boats, motors, planes,
commercial cars 0 -14 -14 -15-15
Business Personal 0 8 8 88
Manufacturing 0 40 42 4547
Utility 0 26 27 2930
Commercial / Rental 0 66 68 7275
Owner-Occupied 0 64 70 7683
Agriculture Private 0 2 2 22
Agriculture Corporate 0 1 1 11
The analysis projects the local revenue requirements from current property taxes at its historical rate of 5.2% per year. A baseline projection in the absence of this joint resolution for taxes in each category shown above was made according to its historical rate of growth. It is anticipated that local taxing entities would not enact other taxes to compensate for any shortfall. A projection was made changing the assessment ratio from 10.5% to 6.0% on the affected classes (Personal Property (Vehicles) and boats, motors, planes, commercial cars). The millage was then adjusted to meet the local revenue requirements from the property tax. It was assumed that all taxing entities would lower the assessment ratio to the 6.0% allowed under this joint resolution. The personal property effected by this assessment ratio change includes cars, boats, motors, and aircrafts. The baseline FY 1999 revenue estimate for these categories of personal property is $547 million.
Approved By:
William C. Gillespie
Division of Budget & Analysis
PROPOSING AN AMENDMENT TO SECTION 1, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO ASSESSMENT RATIOS AND CLASSES OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO CREATE A NEW CLASS OF PERSONAL PROPERTY REQUIRED TO BE TITLED BY A STATE OR FEDERAL AGENCY, NOT INCLUDING UNITS OF MANUFACTURED HOUSING, ASSESSED AT TEN AND ONE-HALF PERCENT OF FAIR MARKET VALUE OR SOME PERCENTAGE LESS THAN TEN AND ONE-HALF PERCENT BUT NOT LESS THAN SIX PERCENT SET BY THE GOVERNING BODY OF THE COUNTY IN CONSULTATION WITH ALL PROPERTY TAXING ENTITIES IN THE COUNTY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. It is proposed that Section 1(8), Article X of the Constitution of this State is amended to read:
"(8) (A) Except as provided in subitem (B) of this item, all other personal property shall must be taxed on an assessment equal to ten and one-half percent of the fair market value of such the property.
(B) Personal property otherwise assessed pursuant to subitem (A) of this item required to be titled by a state or federal agency, not including units of manufactured housing, must be taxed on an assessment equal to ten and one-half percent of fair market value or some percentage of fair market value less than ten and one-half percent but not less than six percent as may be set by the governing body of the county in consultation with all property taxing entities in the county."
SECTION 2. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Section 1(8), Article X of the Constitution of this State, be amended so as to establish a separate class of property for purposes of the property tax consisting of personal property required to be titled by a state or federal agency, not including units of manufactured housing, which may be assessed for property tax at a percentage of fair market value less than ten and one-half percent but not less than six percent as may be set by the governing body of the county in consultation with all property taxing entities in the county?
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'."