Current Status Bill Number:4846 Type of Legislation:Joint Resolution JR Introducing Body:House Introduced Date:19980319 Primary Sponsor:Ways and Means Committee HWM 30 All Sponsors:Ways and Means Committee Drafted Document Number:PT\1821MM.98 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Property tax assessments, exemptions; separate tax millage levy on personal; constitutional amendment
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19980407 Introduced, read first time, 06 SF
referred to Committee
House 19980402 Read third time, sent to Senate
House 19980401 Read second time
House 19980331 Debate adjourned until
Wednesday, 19980401
House 19980325 Request for debate by Representative Robinson
Allison
Vaughn
Sheheen
Littlejohn
Easterday
Sharpe
Davenport
Altman
Spearman
Young-
Brickell
H.Brown
Law
Young
Rice
Hinson
Neilson
Chellis
Woodrum
McKay
Jordan
Townsend
Bailey
Kinon
Loftis
R. Smith
J. Hines
Leach
Cave
House 19980319 Introduced, read first time
View additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
INTRODUCED
March 19, 1998
H. 4846
S. Printed 3/19/98--H.
Read the first time March 19, 1998.
The bill requires that thirty percent of the BEA's projected year-to-year general fund revenue growth be remitted to the Personal Property Tax Relief Fund. Because the Constitutional amendment could be ratified as early as January 1999, it could have an impact on FY1998-99 revenues. In FY1998-99 this transfer would amount to an estimated $36.2 million. In FY1999-00 this transfer would amount to an estimated $67.5 million.
This proposal will set up a fund to reimburse local taxing entities for "all other personal property" taxes up to a maximum of the amount collected for tax year 1998. That amount is estimated at $706 million. "All other personal property" includes motor vehicles, boats, airplanes, and business personal property, and is currently assessed at 10.5 percent. This revenue would be reimbursed to local governments from the growth in state revenues. Each year thirty percent new General Fund revenue will be allocated to the fund. The Constitutional amendment requires local governments to annually adjust the millage rate applied to these properties to collect only $706 million as collected in FY1998-99. The BEA estimates that the General Fund will collect $241 million in new money in FY1998-99. Since one-half of FY1998-99 is in tax year 1999, $36.2 million in FY1998-99 would be the obligation to the Personal Property Tax Relief Fund. The BEA estimates that the General Fund will collect $225 million in new money in FY1999-00. Thirty percent, or $67.5 million, of the expected new collection would be set aside in the Personal Property Tax Relief Fund.
Approved By:
William C. Gillespie
Board of Economic Advisors
This bill would save local taxpayers $36.2 million in FY 1998-99 and $67.5 million in FY 1999-00. This bill would have no negative impact on local government revenues. This bill has a potential to cause a shift in tax incidence pursuant to Section 6-1-85(b).
This proposal will set up a fund to reimburse local taxing entities for "all other personal property" taxes up to a maximum of the amount collected for tax year 1998. This tax revenue would be reimbursed to local governments from the growth in state revenues. Each year thirty percent of new General Fund revenue will be allocated to the fund. The Board of Economic Advisors (BEA) estimates that the General Fund will collect $241 million in new money in FY 1998-99. Since one-half of FY 1998-99 is in tax year 1999, $36.2 million would be allocated to the fund in FY 1998-99. The BEA estimates that the General Fund will collect $225 million in new money in FY 1999-00. Thirty percent of the new revenue collected, or $67.5 million, would be allocated to the fund in FY 1999-00.
Approved By:
William C. Gillespie
Division of Budget and Analysis
This joint resolution would change the incidence of local property taxes among classes of property. Those changes from the levels that would occur in the absence of this joint resolution are as follows:
Category ($ Million)FY 99 FY 00 FY 01 FY 02
Owner Occupied0 14 29 45
Manufacturing0 8 17 26
Utility0 5 11 16
Commercial Rental (Real)0 7 14 21
Agriculture0 0 1 1
Manufacturing (Fee)0 0 0 0
all other personal property0 (34) (72) (109)
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 bill 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 fixing "all other personal property" taxes at 706 million dollars in FY 99 and adjusting millage to meet local revenue requirements from the property tax. The changes to the baseline are shown above.
Approved By:
William C. Gillespie
Division of Budget and Analysis
PROPOSING AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO FINANCE AND TAXATION BY ADDING SECTION 1A AND AMENDING EXISTING SECTION 6, SO AS TO REQUIRE ALL PERSONAL PROPERTY TO BE THE SUBJECT OF A SEPARATE MILLAGE LEVY WHICH MAY NOT EXCEED THE 1998 PROPERTY TAX YEAR LEVY ON SUCH PROPERTY, INCLUDING MILLAGE LEVIED FOR BONDED INDEBTEDNESS, TO PROVIDE THE PROPERTY TAX YEAR WHEN THIS SEPARATE LEVY FIRST APPLIES, TO REQUIRE THE 1998 MILLAGE RATE TO BE ADJUSTED ANNUALLY SO THAT REVENUE RAISED BY THE TAX ON PERSONAL PROPERTY DOES NOT EXCEED THE REVENUE RAISED BY THE 1998 MILLAGE RATE, AND TO MAKE A CONFORMING AMENDMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. It is proposed that Article X of the Constitution of this State be amended by adding:
"Section 1A. For motor vehicle property tax years beginning after June, 1999, and all other personal property tax years beginning after 1998, all personal property included in the classifications established pursuant to Section 1 of this article must be the subject of a separate millage rate imposition uniformly applied to personal property and this millage rate may not exceed the millage rate imposed for such property for any property tax year beginning in 1998, including amounts levied for that year for bonded indebtedness and this millage rate must be annually adjusted, if necessary, so that the revenue raised by the tax on personal property does not exceed the revenue raised by the 1998 millage rate."
It is proposed that the first paragraph of Article X, Section 6 of the Constitution of this State be amended to read:
"The General Assembly may vest the power of assessing and collecting taxes in all of the political subdivisions of the State. Property tax levies shall be uniform in respect to persons and property within the jurisdiction of the body imposing such taxes; except as otherwise provided in this article; and provided, that on properties located in an area receiving special benefits from the taxes collected, special levies may be permitted by general law applicable to the same type of political subdivision throughout the State, and the General Assembly shall specify the precise condition under which such special levies shall be assessed."
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 Article X of the Constitution of this State be amended by adding Section 1A and by amending existing Section 6 so as to provide that property taxes imposed on motor vehicles for motor vehicle property tax years beginning after June, 1999, and on all other personal property for property tax years beginning after 1998, must be separately imposed at a uniform rate on all personal property at a rate that may not exceed the millage rate imposed on such property for any property tax year beginning in 1998 with annual adjustments in the millage rate if necessary so that the revenue raised by the tax on personal property does not exceed the revenue raised by the 1998 millage rate?
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'."