Current Status Bill Number:
4852Type of Legislation: General Bill GBIntroducing Body: HouseIntroduced Date: 19980319Primary Sponsor: BoanAll Sponsors: BoanDrafted Document Number: DKA\4763MM.98Residing Body: HouseCurrent Committee: Ways and Means Committee 30 HWMSubject: Sales and use tax, local option; credit, fees in lieu of property taxes; Taxation
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ House 19980319 Introduced, read first time, 30 HWM referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND SECTION 4-10-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISTRIBUTION OF LOCAL SALES AND USE TAX REVENUES, SO AS TO ALLOW LOCAL OPTION SALES TAX CREDIT AGAINST LIABILITY TO PAY FEES IN LIEU OF PROPERTY TAXES; TO AMEND SECTION 4-10-90, AS AMENDED, RELATING TO ADMINISTRATION AND COLLECTION OF LOCAL SALES AND USE TAX BY THE DEPARTMENT OF REVENUE, SO AS TO PROVIDE THAT ALLOCATIONS MADE BY ERROR IN THE CITY OR COUNTY CODE BE CORRECTED PROSPECTIVELY; AND TO AMEND SECTION 4-12-20, RELATING TO LEASE AGREEMENTS BETWEEN LOCAL POLITICAL UNITS AND ANOTHER PARTY AND PROVISION FOR FEES IN LIEU OF TAXES, SO AS TO INCLUDE COUNTIES, MUNICIPALITIES, SCHOOL DISTRICTS, WATER AND SEWER AUTHORITIES AND OTHER POLITICAL SUBDIVISIONS AS LESSORS FOR PURPOSES OF FEE IN LIEU OF TAX PROVISIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. It is the General Assembly's intent that a resident, a merchant, or an industry be allowed the local option sales tax credit against property taxes even though they are paying an amount equivalent to property taxes, instead of property taxes, because they are located in a multicounty business or industrial park, or even though they are paying a fee instead of property taxes under Section 4-29-60 or Section 4-12-20.
The General Assembly also intends to allow the local option sales tax credit against property taxes to businesses that have negotiated a fee in lieu of property taxes under Section 4-29-67, Section 4-12-30, or Chapter 44 of Title 12, except that the credit is reduced to reflect the fees in lieu of taxes they must pay rather than the fair market value of their property.
SECTION 2. Section 4-10-40(B) of the 1976 Code, as last amended by Act 109 of 1991, is further amended to read:
"(B)(1) All of the revenue received by a county and municipality from the Property Tax Credit Fund must be used to provide a credit against the property tax liability of taxpayers in the county and municipality in an amount determined by multiplying the appraised value of the taxpayer's taxable property by a fraction in which the numerator is the total estimated revenue received by the county or municipality from the Property Tax Credit Fund during the applicable fiscal year of the political subdivision and the denominator is the total of the appraised value of taxable property in the county or municipality as of January first 1 of the applicable taxable year.
(2) For purposes of this chapter:
(a) property tax liability includes liability to pay fees in lieu of property taxes;
(b) taxable property includes exempt property for which the owner must pay fees in lieu of property taxes; and
(c) for businesses that have negotiated a fee in lieu of property taxes, the appraised value of the taxpayer's taxable property is equal to the value of the property for fee purposes multiplied by a fraction, the numerator of which is the assessment ratio negotiated by the business and the denominator of which is the assessment ratio it would have been if no fee had been negotiated."
SECTION 3. Section 4-10-90(C) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"(C) The Department of Revenue shall furnish data to the State Treasurer and to the governing bodies of the counties and municipalities receiving revenues for the purpose of calculating distributions and estimating revenues. The information which may be supplied to counties and municipalities includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information by taxpayer received by appropriate county or municipal officials is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240. The State Treasurer may correct misallocations from the Property Tax Credit Fund and County/Municipal Revenue Fund by adjusting subsequent allocations, but these adjustments may be made only in allocations made in the same fiscal year as the misallocation. However, allocations made as a result of city or county code errors must be corrected prospectively."
SECTION 4. Section 4-12-20 of the 1976 Code, as added by Act 125 of 1995, is amended to read:
"Section 4-12-20. Every agreement between a county, council or county councils municipality, school district, water and sewer authority, or other political subdivision and another party in the form of a lease must contain a provision requiring the industry other party to make payments to the county or counties, municipality or municipalities, school district or school districts, water and sewer authority, and other political units subdivisions in which the project is located in lieu of taxes, in the amounts that would result from taxes levied on the project by the a county or counties, municipality or municipalities, school district or school districts, water and sewer authority, and other other political unit or units subdivisions, if the project were owned by the industry other party, but with appropriate reductions similar to the tax exemptions, if any, which would be afforded to the industry other party if it were owner of the project."
SECTION 5. Section 4 of this act takes effect for leases entered into after the approval by the Governor. The remaining sections of this act are effective for property tax years beginning after December 31, 1998.