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Indicates Matter Stricken
Indicates New Matter
RECALLED
March 4, 1999
S. 11
Introduced by Senators Drummond, Elliott, Leventis, Rankin, Reese and Short
S. Printed 3/4/99--S.
Read the first time January 12, 1999.
REVENUE IMPACT1
This joint resolution has no impact on state or local revenue. Although the assessment for car, boat, motor and airplane taxes would be decreased, local governments are expected to adjust their millages to make up for the shortfalls. 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. This joint resolution would not appear on the ballot until November 2000 and then, if passed, would have to be ratified by the General Assembly. FY 2002 is the first full fiscal year that would be affected by this resolution.
Category ($ Million) FY 2002 Category ($ Million) FY 2002
Personal Property
(Vehicles) -231 Business Personal 8
Boats, motors, planes Manufacturing 47
Commercial cars -15 Utility 30
Commercial / Rental 75
Owner Occupied 83
Agricultural Private 2
Agricultural Corporate 1
Explanation
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. 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 apart from property 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 2002 revenue estimate for these categories of personal property is $658 million.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
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'."
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