Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
AMENDED
May 27, 1999
H. 3834
S. Printed 5/27/99--S.
Read the first time April 29, 1999.
TO AMEND SECTION 2-7-76, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FISCAL IMPACT STATEMENTS FOR PROPOSED LEGISLATION AFFECTING COUNTIES OR MUNICIPALITIES, SO AS TO REQUIRE THE ACQUISITION OF A FISCAL IMPACT STATEMENT FROM THE "BOARD OF ECONOMIC ADVISORS" INSTEAD OF FROM THE "DEPARTMENT OF REVENUE" AND TO MAKE TECHNICAL CORRECTIONS; TO AMEND SECTION 12-6-40, AS AMENDED, RELATING TO APPLICATION OF THE INTERNAL REVENUE CODE TO STATE TAX LAWS, SO AS TO ADOPT APPLICATION OF THE INTERNAL REVENUE CODE AS AMENDED THROUGH TAXABLE YEAR 1998; TO AMEND SECTION 12-6-1120, AS AMENDED, RELATING TO COMPUTATION OF GROSS INCOME FOR STATE TAX PURPOSES, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 12-6-3410, RELATING TO INCOME TAX CREDIT FOR CORPORATE HEADQUARTERS, SO AS TO PROVIDE FOR DETERMINING THE PER CAPITA INCOME FOR PURPOSES OF CALCULATING ADDITIONAL TAX CREDIT FOR CREATION OF NEW HEADQUARTERS JOBS BY USING THE MOST RECENT PER CAPITA INCOME DATA AVAILABLE AT THE END OF THE TAXABLE YEAR THE JOBS ARE FILLED; TO AMEND SECTION 12-6-3465, RELATING TO RECYCLING FACILITY TAX CREDITS, SO AS TO UPDATE CODE CROSS REFERENCES; TO AMEND SECTION 12-16-20, RELATING TO DEFINITIONS FOR PURPOSES OF THE ESTATE TAX, SO AS TO DEFINE THE INTERNAL REVENUE CODE AS AMENDED THROUGH 1998; TO AMEND SECTION 12-20-20, RELATING TO FILING OF A CORPORATE ANNUAL REPORT, SO AS TO UPDATE A CROSS REFERENCE; TO AMEND SECTION 12-36-510, AS AMENDED, RELATING TO RETAIL LICENSE REQUIREMENTS, SO AS TO DELETE THE REQUIREMENT THAT A FESTIVAL BE LISTED AS A SPECIAL EVENT WITH THE DEPARTMENT OF PARKS, RECREATION, AND TOURISM; TO AMEND SECTION 12-37-251, AS AMENDED, RELATING TO THE HOMESTEAD EXEMPTION, SO AS TO PROVIDE THAT THE BOARD OF ECONOMIC ADVISORS, INSTEAD OF THE DEPARTMENT OF REVENUE, ESTIMATE THE TOTAL SCHOOL TAX REVENUE LOSS FROM THE EXEMPTION; AND TO AMEND SECTION 12-54-85, AS AMENDED, RELATING TO TIME LIMITATIONS FOR ASSESSMENT OF TAXES, SO AS TO INCREASE FROM THIRTY TO NINETY THE NUMBER OF DAYS A CORPORATION HAS TO FILE A CLAIM FOR REFUND AFTER AN ADJUSTMENT TO ITS TAXABLE INCOME IS MADE BY THE INTERNAL REVENUE SERVICE.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 2-7-76 of the 1976 Code, as last amended by Section 115, Part II, Act 497 of 1994, is further amended to read:
"Section 2-7-76. (A) Whenever The chairman of the legislative committee to which a bill or resolution was referred shall direct the Budget Division or the Economic Research Section of the Budget and Control Board, as appropriate, to prepare and affix to it a statement of the estimated fiscal or revenue impact and cost to the counties and municipalities of the proposed legislation before the legislation is reported out of that committee if a bill or resolution:
(1) requires a county or municipality to expend funds allocated to the county or municipality under pursuant to Chapter 27 of Title 6, or whenever a bill or resolution;
(2) is introduced in the General Assembly to require the expenditure of funds by a county or municipality, or whenever a bill or resolution;
(3) requires the use of county or municipal personnel, facilities, or equipment to implement a general law or regulations promulgated pursuant to a general law,; or whenever a bill
(4) relates to taxes imposed by political subdivisions, the chairman of the legislative committee to which the bill or resolution was referred shall direct the Budget Division or the Department of Revenue, as appropriate, to prepare and affix to it a statement of the estimated fiscal or revenue impact and cost to the counties and municipalities of the proposed legislation prior to the legislation being reported out of that committee.
(B) A revised estimated fiscal or revenue impact and cost statement must be prepared at the direction of the presiding officer of the House of Representatives or the Senate by the Budget Division or Department of Revenue prior to Economic Research Section of the Budget and Control Board before third reading of the bill or resolution, if there is a significant amendment to the bill or resolution.
(C) For purposes of this section, political subdivision means a county, municipality, school district, special purpose district, public service district, or consolidated political subdivision."
SECTION 2. Section 12-6-40(A) of the 1976 Code, as last amended by Act 268 of 1998, is further amended to read:
"(A) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1997 1998, and includes the effective date provisions contained therein."
SECTION 3. Section 12-6-1120(8) of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"(8) Each partner in the Palmetto Seed Capital Fund Limited Partnership (Fund) established under pursuant to Section 41-44-60 shall exclude from South Carolina gross income, seventy-five percent of the partner's proportionate share of income that the fund derives from a South Carolina business which is either:
( i) established and operated in a less least developed county as defined in Section 12-6-3360,; or
(ii) invested in agriculture, aquaculture, or a related business or in a business created by a socially or economically disadvantaged individual as defined in 13 Code of Federal Regulations, Sections 124.105(A) and 124.106 (1987)."
SECTION 4. Section 12-6-3410(D)(2) of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"(2) The establishment, expansion, or addition of a corporate headquarters or research and development facility must result in:
(a) the creation of at least seventy-five new full-time jobs performing either:
( i) headquarters related functions and services; or
(ii) research and development related functions and services which.
The jobs must have an average cash compensation level of more than one and one-half times the per capita income of this State at the time the jobs are filled based on the most recent per capita income data available as of the end of the taxpayer's taxable year in which the jobs are filled; and
(b) an average South Carolina employee cash compensation level for all employees in this State of more than twice the per capita income in the State at the time the newly created jobs are filled based on the most recent per capita income data available as of the end of the taxpayer's taxable year in which the jobs are filled."
SECTION 5. Section 12-6-3465 of the 1976 Code, as added by Act 32 of 1995, is amended to read:
"Section 12-6-3465. A taxpayer who is constructing or operating a qualified recycling facility as defined in Section 12-7-1275 12-6-3460 shall be is entitled to credits in the amount of all funds collected as permitted in Section 12-10-80, which credits can be used to reduce the taxpayer's corporate income tax imposed by Section 12-7-230 12-6-530, sales or use tax imposed by the State or any political subdivision of the State, corporate license fees imposed by Section 12-19-70 12-20-50 or any tax similar to these taxes. Any unused credits may be carried forward to subsequent taxable years until such credits are exhausted."
SECTION 6. Section 12-16-20(5) of the 1976 Code, as last amended by Act 361 of 1992, is further amended to read:
"(5) 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 1991 1998."
SECTION 7. Section 12-20-20(A) of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"(A) Except for those corporations described in Section 12-20-110, every domestic corporation, every foreign corporation qualified to do business in this State, and any other corporation required by Section 12-6-530 12-6-4910 to file income tax returns shall file an annual report with the department."
SECTION 8. The third paragraph of Section 12-36-510(C) of the 1976 Code, as last amended by Act 383 of 1994, is further amended to read:
" 'Special event' means a promotional show, trade show, fair, festival, or carnival for which an admissions fee is required for entering the event or, in the case of a festival, if the festival is listed as a special event in the calendar of events provided by the South Carolina Department of Parks, Recreation and Tourism. In addition, the event must be operated for a period of less than twelve consecutive days."
SECTION 9. Section 12-37-251(F) of the 1976 Code, as last amended by Section 29C, Part II, Act 419 of 1998, is further amended to read:
"(F) The exemption allowed by this section is conditional on full funding of the Education Finance Act and on an appropriation by the General Assembly each year reimbursing school districts an amount equal to the Department of Revenue's Economic Research Section of the Budget and Control Board estimate of total school tax revenue loss resulting from the exemption in the next fiscal year."
SECTION 10. The second paragraph of Section 12-54-85(D) of the 1976 Code, as added by Act 60 of 1995, is amended to read:
"Notwithstanding any restrictions on filing a claim for refund provided in subsection (F) below, a corporation may file a claim for refund resulting from an overpayment due to changes in taxable income made by the Internal Revenue Service within thirty ninety days from the date the Internal Revenue Service changes the taxable income."
SECTION 11. A. Section 12-56-20(1) of the 1976 Code, as last amended by Section 55A, Part II, Act 419 of 1998, is further amended to read:
"(1) 'Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision, South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 31, and the Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapters 111, 113, or 115 of Title 59. 'Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members, or other political subdivisions, or other claimant agencies as defined in this item. A political subdivision who submits a claim through an association is a claimant agency for the purpose of the notice and appeal provisions and other requirements of this chapter."
B. Section 12-56-60 of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"Section 12-56-60. (A) A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the department in writing and supply information the department determines necessary to identify the debtor whose refund is sought to be set off. A request for setoff may be made only after the claimant agency has notified the debtor of its intention to cause the debtor's refund to be set off not less than thirty days before the claimant agency's request to the department. This notice must be given in person, left at the dwelling or usual place of business of the debtor, or sent by certified or registered mail to the debtor's last known address no less than thirty days before the claimant agency's request to the department. The notice shall include a statement which sets forth administrative appeal procedures available to the debtor and alternatives available to the debtor which could prevent setoff. The claimant agency promptly shall notify the debtor when the liability out of which the setoff arises is satisfied. Notification to the department and the furnishing of identifying information must occur on or before a date specified by the department in the year preceding the calendar year during which the refund would be paid. Additionally, subject to the notification deadline specified above, the notification is effective only to initiate setoff for claims against refunds that would be made in the calendar year subsequent to the year in which notification is made to the department.
(B) Upon receiving the certification of the claimant agency of the amount of the delinquent debt, the department shall determine if the debtor is due a refund. If the debtor is due a refund of more than twenty-five dollars, the department shall set off the delinquent debt against the amount of the refund in excess of twenty-five dollars and transfer the amount set off to the claimant agency. The department may retain an amount not to exceed twenty-five dollars of each refund set off to defray its administrative expenses. No apportionment is required in cases of refunds resulting from filing joint returns. A person has no property right or property interest in a refund until all amounts due the State and claimant agencies are paid. The department shall consider any certified delinquent debt and debtor list provided by a claimant agency as correct and the department is not liable for a wrongful or improper setoff. Reviews of refund setoffs are with the claimant agency. If, after appropriate review the claimant agency determines that the setoff amount is excessive, it shall refund the appropriate amount to the taxpayer. If, after appropriate review, the claimant agency determines that it is entitled to no part of the amount set off, it shall refund the entire amount plus the administrative fee retained by the department. That portion of the refund reflecting the administrative fee must be paid from claimant agency funds. If a refund has been retained in error, the claimant agency shall pay interest to the taxpayer calculated as provided in Section 12-54-20 from the date provided by law after which interest is paid on refunds until the appeal is final except that no interest accrues when the claimant agency is the Office of Child Support Services of the South Carolina Department of Social Services."
C. Chapter 56 of Title 12 of the 1976 Code is amended by adding:
"Section 12-56-62. The notice of intention to set off must be given by mailing the notice, with postage prepaid, addressed to the debtor at the address provided to the claimant agency when the debt was incurred or at the debtor's last known address. The giving of the notice by mail is complete upon the expiration of thirty days after deposit of the notice in the mail. A certification by the claimant agency that the notice has been sent as required by this section is presumptive proof that the requirements as to notice are met, even if the notice actually has not been received by the debtor. The notice must include a statement of appeal procedures available to the debtor, substantially as follows:
'According to our records, you owe the (claimant agency) a debt in the amount of (amount of the debt) for (type of debt) . You are hereby notified of the (claimant agency's) intention to submit this debt to the South Carolina Department of Revenue to be set off against your individual income tax refund. Pursuant to the Setoff Debt Collection Act, this amount, plus all costs, will be deducted from your South Carolina individual income tax refund unless you file a written protest within thirty days of the date of this notice. If you file a joint return with your spouse, this amount will be deducted from the total joint refund without regard to which spouse incurred the debt or actually withheld the taxes. The protest must contain the following information:
(1) your name;
(2) your address;
(3) your social security number;
(4) the type of debt in dispute; and
(5) a detailed statement of all the reasons you disagree or dispute the debt.
The original written protest must be mailed to the (claimant agency) at the following address:
(address of the entity requesting the setoff) .'
Section 12-56-63. (A) A debtor who protests the debt shall file a written protest with the claimant agency at the address provided in the claimant agency's notification of intention to set off. The protest must be filed within thirty days of the date of the notice of intention to set off and must contain the debtor's name, address, and social security number, identify the type of debt in dispute, and give a detailed statement of all the reasons which support the protest. The requirements of this section are jurisdictional.
(B) An association defined as a political subdivision in Section 12-56-20(1) may contract with another political subdivision for the processing of debts to be submitted to the department. These services may be funded through an administrative fee. The association is exempt from the notice and appeal procedures of this chapter. The entity responsible for the notice and hearing requirements of this chapter is the political subdivision which has submitted its claim through the association or governmental entity which has submitted it directly to the department.
Section 12-56-65. (A) Before submitting a debt to the department, the claimant agency shall appoint a hearing officer to hear a protest of a debtor. This hearing officer is vested with the authority to decide a protest in favor of either the debtor or the claimant agency. The claimant agency shall certify to the department, on a form prescribed by the department, that a hearing officer has been appointed and shall inform the department of the name, address, and telephone number of the hearing officer. If this hearing officer is unable to serve at any time, the claimant agency shall appoint another hearing officer.
(B) Upon receipt of a notice of protest, the claimant agency shall notify the department that a protest has been received and shall hold an informal hearing at which the debtor may present evidence, documents, and testimony to dispute the debt. The claimant agency shall notify the debtor of the date, time, and location of the informal hearing. At the conclusion of the informal hearing, the hearing officer shall render his determination. Upon receipt of a sworn certification from the hearing officer that he held an informal hearing and ruled in favor of the claimant agency, the department may proceed with the setoff, regardless of a subsequent appeal by the debtor.
(C) A debtor may seek relief from the hearing officer's determination by requesting, within thirty days of the determination, a contested case hearing before the Administrative Law Judge Division. A request for a hearing before the Administrative Law Judge Division must be made in accordance with its rules.
(D) If a setoff is made and the determination of the hearing officer in favor of the claimant agency is later reversed, the claimant agency shall refund the appropriate amount to the taxpayer. If the claimant agency is found to be entitled to no part of the amount set off, it shall refund the entire amount plus the administrative fee retained by the department. That portion of the refund reflecting the administrative fee must be paid from claimant agency funds. If the claimant agency is found to be entitled to a portion of the amount set off, it is not required to refund the administrative fee retained by the department.
(E) If a refund is retained in error, the claimant agency shall pay to the taxpayer interest calculated as provided in Section 12-54-20 from the date provided by law after which interest is paid on refunds until the appeal is final, except that interest does not accrue when the claimant agency is the Office of Child Support Services of the South Carolina Department of Social Services.
(F) If the claimant agency determines that money has been erroneously or illegally set off, the claimant agency, in its discretion, may refund the amount of the setoff, even if the debtor does not file a protest.
(G) A setoff may not be contested more than one year after the date the setoff was made. The date of the setoff must be conclusively determined by the department. This provision must be construed as a statute of repose and not as a statute of limitation.
Section 12-56-67. This section does not create a right to jury trial where one does not already exist. Where a debtor otherwise is entitled to have a jury determine the issue of indebtedness, that right is preserved specifically. If a right to a jury trial already exists and the debtor wishes to exercise that right, the debtor is not required to request a contested case hearing before the Administrative Law Judge Division but instead must file a summons and complaint in the Court of Common Pleas and serve the pleadings on the claimant agency within thirty days from the date of the hearing officer's determination. The summons and complaint must name the claimant agency as a defendant and the allegations of the complaint must contest the debt and any potential setoff.
Section 12-56-120. The department is exempt from the notice and appeal procedures of this chapter. The appeal procedures for the setoff of any debt owed to the department is governed by the provisions of Chapter 60 of Title 12 which provides the sole and exclusive remedy for these procedures."
D. Section 12-56-110 of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"Section 12-56-110. The department shall may promulgate regulations and prescribe forms and procedures necessary to implement this chapter."
E. All liabilities incurred and rights accrued before the effective date of this section are unaffected by the provisions of this section.
F. Upon approval by the Governor, this section applies to a liability incurred or a right accrued on and after that date.
SECTION 12. A. Section 12-20-105(C) of the 1976 Code, as last amended by Act 151 of 1997, is further amended to read:
"(C) For the purpose of this section, 'infrastructure' means improvements for water, sewer, gas, steam, electric energy, and communication services made to a building or land which are considered necessary, suitable, or useful to an eligible project. These improvements include, but are not limited to:
(1) improvements to both public or private water and sewer systems;
(2) improvements to both public or private electric, natural gas, and telecommunication telecommunications systems including, but not limited to, ones owned or leased by an electric cooperative, electric utility, or electric supplier, as defined in Chapter 27, Title 58;
(3) fixed transportation facilities including highway, road, rail, water, and air;
(4) for a qualifying project under subsection (B)(2), infrastructure improvements include industrial shell buildings and the purchase of land for an office, business, commercial, or industrial park which is constructed by a county or political subdivision of this State."
B. Section 12-36-2120 of the 1976 Code, as last amended by Act 419 of 1998, is further amended by adding an appropriately numbered item at the end to read:
"( ) clothing and other attire required for working in a Class 100 or better as defined in Federal Standard 209E clean room environment."
C. Section 12-37-930(6)(c) of the 1976 Code, as added by Act 32 of 1995, is amended to read:
"(c) Electronic Interconnection Component Assembly Devices for Computers and Computer Peripherals; semiconductors and semiconductor devices; substrates; flat panel displays; and liquid crystal displays......................................30%
Includes the manufacture of interconnection component assemblies and devices, semiconductors and semiconductor devices, flat panel displays, and liquid crystal displays which are incorporated in computers or computer peripherals, or other electronic control applications, and telecommunications devices. Computer peripherals include tape drives, compact disk read-only memory systems, hard disks, drivers, tape streamers, monitors, printers, routers, servers, and power supplies."
D. The schedule in Section 12-37-930 of the 1976 Code, as last amended by Act 231 of 1996, is further amended by adding an appropriately numbered item at the end to read:
"( ) Class 100 or better as defined in Federal Standard 209E Clean Room Modules and Associated Mechanical Systems, Process Piping, Wiring, Environmental Systems, and Water Purification Systems..........................10%
Includes waffle flooring, wall and ceiling panels; foundation improvements that isolate the clean room to control vibrations; clean air handling and filtration systems; piping systems for fluids and gases used in the manufacturing process and that touch the product during the fabrication of semiconductors, flat panel displays, and liquid crystal displays; process equipment energy control systems; ultra pure water processing and waste water recycling systems; and safety alarm and monitoring systems."
E. Notwithstanding any other effective date provided in this act, subsection A. of this section takes effect upon approval by the Governor, and the remaining subsections take effect upon approval by the Governor and apply for taxable years beginning after 1998.
SECTION 13. Section 2-7-71 of the 1976 Code, as last amended by Act 82 of 1997, is further amended to read:
"Section 2-7-71. When a bill relating to state taxes is reported out of a standing committee of the Senate or House of Representatives for consideration, there must be attached and printed as a part of the committee report a statement of the estimated revenue impact of the bill on the finances of the State certified by the Board of Economic Research Section of the State Budget and Control Board Advisors. As used in this section, 'statement of estimated revenue impact' means the consensus of the persons executing the required statement as to the increase or decrease in the net tax revenue to the State if the bill concerned is enacted by the General Assembly. In preparing a statement, the Board of Economic Research Section Advisors may request technical advice of the Department of Revenue."
SECTION 14. A. Chapter 10 of Title 12 of the 1976 Code is amended by adding:
"Section 12-10-81. (A) A business may claim a job development credit as determined by this section if the:
(1) council approves the use of this section for the business;
(2) business qualifies pursuant to Section 12-10-50; and
(3) business is a manufacturer which has more than one billion dollars in capital invested in this State and employs more than seven thousand employees in this State and which commits within a period of five years from the date of a revitalization agreement, to invest an additional four hundred million dollars and create an additional four hundred jobs in this State qualifying for job development fees or credits pursuant to current or future revitalization agreements. The council, in its discretion, may extend the five-year period for two additional years if the business has made a commitment to the additional four hundred million dollars and makes substantial progress toward satisfying the goal before the end of the initial five-year period. A business that represents to the council its intent to qualify pursuant to this section and is approved by the council may put job development fees computed pursuant to this section into an escrow account until the date the business satisfies the capital and job requirements of this section. The business may withdraw funds from the escrow account or claim job development credits pursuant to this section before satisfying the capital and job requirements, so long as the business agrees to return the funds, with interest, to the escrow account or to repay the job development credits, with interest, if the capital and job requirements are not satisfied.
(B)(1) A business qualifying pursuant to this section may claim its job development credit against its withholding on its quarterly state withholding tax return for the amount of job development credit allowable. The credit must be claimed on a quarterly basis. To claim a job development credit, the business must be current with respect to its withholding tax and other tax due and owing the State, and must have maintained its minimum employment requirement for the entire quarter.
(2) To be eligible to apply to the council to claim a job development credit pursuant to this section, a qualifying business must create at least ten new, full-time jobs at the South Carolina facility or facilities described in the revitalization agreement.
(3) To the extent a return of an overpayment of withholding that results from claiming job development credits is not used as permitted by subsection (D), it must be treated as misappropriated employee withholding.
(4) If a qualifying business claims job development credits pursuant to this section, it must make its payroll books and records available for inspection by the council and the department at the times the council and the department request. Each qualifying business claiming job development credits pursuant to this section must file the job development credit and the use of any overpayment of withholding resulting from the claiming of a job development credit according to the revitalization agreement that the council or department requests. Each qualifying business must furnish an audited report prepared by an independent certified public accountant which itemizes the sources and uses of the funds. The audited report must be filed with the council and the department no later than June thirtieth following the calendar year in which the job development credits are claimed. An employer may not claim an amount that results in an employee receiving a smaller amount of wages on either a weekly or on an annual basis than the employee would otherwise receive in the absence of this chapter.
(C)(1) The maximum job development credit a qualifying business may claim for new employees is determined by the sum of the following amounts:
(a) two percent of the gross wages of each new employee who earns $6.34 or more an hour but less than $8.45 an hour;
(b) three percent of the gross wages of each new employee who earns $8.45 or more an hour but less than $10.57 an hour;
(c) four percent of the gross wages of each new employee who earns $10.57 or more an hour but less than $15.85 an hour;
(d) five percent of the gross wages of each new employee who earns $15.85 or more an hour; and
(e) the increase in the state sales and use tax of the business from the year of the effective date of its revitalization agreement pursuant to this section and subsequent years, over its state sales and use tax for the first of the three years preceding the effective date of this revitalization agreement.
(2) The hourly gross wages in item (1) must be adjusted annually by the inflation factor determined by the State Budget and Control Board for the purposes of Section 12-10-80(3). The amount which may be claimed by a qualifying business is limited by the revitalization agreement. The business may proceed by using either the job development fee escrow procedure available pursuant to revitalization agreements with effective dates before 1997, or the job development credit, or a combination of the two. For a business qualifying pursuant to this section, the council also may approve or waive sections of a revitalization agreement and the council's rules as needed, in the council's discretion, to assist the business.
(D) To claim a job development credit, the qualifying business must incur expenditures at the facility or for utility or transportation improvements that serve the facility. The expenditures must be incurred during the term of the revitalization agreement or within sixty days before the execution of a revitalization agreement including a preliminary revitalization agreement authorized by the revitalization agreement, and used for:
(1) training costs and facilities;
(2) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise;
(3) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunication;
(4) fixed transportation facilities including highway, rail, water, and air; or
(5) construction or improvements of real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations.
(E) A job development credit of a qualifying business permanently lapses upon expiration or termination of the revitalization agreement. If an employee is terminated, the qualifying business immediately must cease to claim job development credits.
(F) The statute of limitations provided by Section 12-54-85 is suspended until the end of the five-year or seven-year period described in item (3) of subsection (A) with respect to state withholding taxes under this section for a business subject to this section."
B. This section applies to taxable years beginning after 1998. Notwithstanding any to the contrary in this section, no business shall be entitled to any benefits under a revitalization agreement entered into under this section before July 1, 2000.
SECTION 15. Sections 11-27-40 and 11-27-50 of the 1976 Code are amended to read:
"Section 11-27-40. The governing body of each of the political subdivisions of the State shall be empowered to incur general obligation debt for their respective political subdivisions as permitted by Section 14 of New Article X and in accordance with its provisions and limitations. All laws shall continue in force and effect after the ratification date, but each of such laws is amended as follows:
1. If no election be prescribed in such law and an election is required by New Article X, then in every such instance, a majority vote of the qualified electors of the political subdivision voting in the referendum herein authorized is declared a condition precedent to the issuance of bonds pursuant to such law. The governing body of each of the political subdivisions shall be empowered to order any such referendum as is required by New Article X or any other provision of the Constitution, to prescribe the notice thereof and to conduct or cause such referendum to be conducted in the manner prescribed by Title 7, Code of Laws of South Carolina, 1976.
2. If an election be prescribed by the provisions of such law, but is not required by the provisions of New Article X, then in every such instance, no election need be held (notwithstanding the requirement therefor in such law) and the remaining provisions of such law shall constitute a full and complete authorization to issue bond in accordance with such remaining provisions.
3. If a statutory debt limitation be prescribed by any such law, then in lieu thereof, the debt limitation shall be that resulting from the provisions of Section 14 of New Article X.
4. Notwithstanding any contrary provision in any law, any issue of general obligation bonds maturing not later than eight ten years from their date of issuance and in the amount of not exceeding one million five hundred thousand dollars may be sold at private sale and without advertisement, if not less than ten seven days prior to their delivery, notice of intention to sell such bonds at private sale shall be given by publication in a newspaper of general circulation in such political subdivision. Such notice shall set forth the purchaser, the purchase price, interest rates and maturity schedule of such bonds.
5. As permitted by paragraph 8 of Section 14 of New Article X, all political subdivisions are authorized and empowered to incur general obligation debt in anticipation of the collection of ad valorem taxes or licenses (tax anticipation notes). Tax anticipation notes shall be expressed to mature not later than ninety days from the date on which such taxes or license fees may be paid without penalty. In the case of counties and incorporated municipalities, tax anticipation notes shall be issued pursuant to an ordinance adopted in the manner provided by law. In the case of any special purpose district, tax anticipation notes may be authorized by a resolution of its governing body but such action shall be authorized, approved or ratified by an ordinance of the governing body or governing bodies (as the case may be) of the county or counties wherein such special purpose district is situate. The provisions of this item shall take effect upon May 30, 1977.
6. The provisions of Chapter 17 of Title 11, relating to the issuance of bond anticipation notes, shall continue in force and effect after the ratification with respect to all political subdivisions and the governing body of each political subdivision is hereby authorized and empowered to issue bond anticipation notes pursuant to and in accordance with the provisions of that chapter and the limitations imposed by paragraph 9 of Section 14 of New Article X.
7. All laws now in force permitting any political subdivisions to incur indebtedness (and to issue bonds or other evidences of debt) which shall be payable solely from a revenue-producing project or from a special source, which source does not involve revenues from any tax or license, shall continue in force and effect after the ratification date. Evidences of such indebtedness shall contain a statement on the face thereof specifying the sources from which payment is to be made and shall state that the full faith, credit and taxing powers of the issuer are not pledged therefor.
Any law containing any provisions inconsistent herewith (including Chapter 19 of Title 11, as amended) is herewith amended by the removal therefrom of such inconsistent provisions.
8. The initiative and referendum provisions contained in Article 13, Chapter 9 of Title 4 and Chapter 17 of Title 5 of the 1976 Code, shall not be applicable to any other ordinance authorizing the issuance of general obligation bonds unless a notice, signed by not less than five qualified electors, of the intention to seek a referendum, be filed both in the office of the Clerk of Court of the county wherein such political subdivision is situate and with the Clerk or other recording officer of the political subdivision. Such notices of intention to seek a referendum shall be so filed within twenty days following the publication by the governing body of the political subdivision of notice in a newspaper of general circulation in such political subdivision of the adoption of such ordinance.
9. Notwithstanding any other provision of law, a political subdivision may issue general obligation bonds in accordance with one or more of the following provisions:
(a) The principal amount of the bonds maturing in a given year shall be in an amount as prescribed by the governing body of the political subdivision. The first maturing bonds of an issue shall mature within five years from the date on which they are issued; and no bond shall mature later than thirty years from the date on which it is issued.
(b) The bonds shall be sold at public sale, after advertisement of the sale in a newspaper having general circulation in the State or in a financial publication published in the City of New York. The advertisement must appear not less than seven days prior to the date set for the sale. The advertisement may set as a sale date a fixed date not less than seven days following publication, or the advertisement may advise that the sale date will be at least seven days following the date of publication. If a fixed date of sale is not set forth in the notice of sale published in accordance with this subitem, the date selected for the receipt of bids must be disseminated via an electronic information service at least forty-eight hours prior to the time set for the receipt of bids. If a fixed date of sale is set forth in the notice of sale, it may be modified by notice disseminated via an electronic information service at least forty-eight hours prior to the time set for the receipt of bids on the modified date of sale. No bonds may be sold pursuant to this subitem on a date that is more than sixty days after the date of the most recent publication of the notice of sale. Bids for the purchase of bonds may be received in such form as determined by the governing body of the issuer.
(c) The bonds may be disposed of at private sale if there are no bids received or if all bids are rejected. The provisions of this section shall not prevent a sale at private sale to the United States of America or any agency thereof.
(d) Bonds issued pursuant to this section may be issued with a provision for their redemption prior to their maturity at par and accrued interest, plus such redemption premium as may be prescribed by the governing body of the issuer, but no bond shall be redeemable before maturity unless it contains a statement to that effect. In the proceedings authorizing the issuance of the bonds, provisions shall be made specifying the manner of call and the notice that must be given.
Section 11-27-50. The Board of Trustees or other governing body (the governing body) of each of the school districts of the State shall be empowered to incur general obligation debt for their respective school districts as permitted by Section 15 of New Article X and in accordance with its provisions and limitations. All laws relating to such matters shall continue in force and effect after the ratification date, but all such laws are amended as follows:
1. If no election be prescribed in such law and an election is required by New Article X, then in every such instance, a majority vote of the qualified electors of the school district voting in the referendum herein authorized is declared a condition precedent to the issuance of bonds pursuant to such law. The governing body of each of the school districts shall be empowered to order any such referendum as is required by New Article X or any other provisions of the Constitution, to prescribe the notice thereof and to conduct or cause to be conducted such referendum in the manner prescribed by Article 1, Chapter 71, Title 59, Code of Laws of South Carolina, 1976.
2. If an election be prescribed by the provisions of such law, but is not required by the provisions of New Article X, then in every such instance, no election need be held and the remaining provisions of such law shall constitute a full and complete authorization to issue bonds in accordance with such remaining provisions; provided, however, in no event shall the consent of any other body be required as a condition to the issuance of any general obligation bonds of a school district.
3. If a statutory debt limitation be prescribed by any such law, then in lieu thereof, the debt limitation shall be that resulting from the provisions of Section 15 of New Article X.
4. As permitted by paragraph 7 of Section 15 of New Article X, all school districts are authorized and empowered to incur general obligation debt in anticipation of the collection of ad valorem taxes (tax anticipation notes). Tax anticipation notes shall be expressed to mature not later than ninety days from the date as of which such taxes may be paid without penalty. Tax anticipation notes shall be issued pursuant to a resolution adopted by the governing body.
5. The provisions of Chapter 17 of Title 11, relating to the issuance of bond anticipation notes, shall continue in force and effect after the ratification date with respect to all school districts and the governing body of each school district is hereby authorized and empowered to issue bond anticipation notes pursuant to and in accordance with the provisions of Chapter 17 of Title 11 and the limitations imposed by paragraph 8 of Section 15 of New Article X.
6. Notwithstanding provision of law to the contrary, an issue of general obligation bonds maturing not later than ten years from their date of issuance and in the amount of not exceeding one million five hundred thousand dollars may be sold at private sale and without advertisement, if not less than seven days prior to their delivery, notice of intention to sell such bonds at private sale is given by publication in a newspaper of general circulation in the school district. Such notice shall set forth the purchaser, the purchase price, interest rates, and maturity schedule of such bonds.
7. Notwithstanding any other provision of law, a school district may issue general obligation bonds in accordance with one or more of the following provisions:
(a) The principal amount of the bonds maturing in a given year shall be in an amount as prescribed by the governing body. The first maturing bonds of an issue shall mature within five years from the date on which they are issued; and no bond shall mature later than thirty years from the date on which it is issued.
(b) The bonds shall be sold at public sale, after advertisement of the sale in a newspaper having general circulation in the State or in a financial publication published in the city of New York or, in the discretion of the authorities, in both publications. The advertisement must appear not less than seven days prior to the date set as a sale date for the sale. The advertisement may set a fixed date not less than seven days following publication, or the advertisement may advise that the sale date will be at least seven days following the date of publication. If a fixed date of sale is not set forth in the notice of sale published in accordance with this subitem, the date selected for the receipt of bids must be disseminated via an electronic information service at least forty-eight hours prior to the time set for the receipt of bids. If a fixed date of sale is set forth in this notice of sale, it may be modified by notice disseminated via an electronic information service at least forty-eight hours prior to the time set for the receipt of bids on the modified date of sale. No bonds may be sold pursuant to this section on a date that is more than sixty days after the date of the most recent publication of the notice of sale. Bids for the purchase of bonds may be received in such form as determined by the governing body of the issuer.
(c) The bonds may be disposed of at private sale if there are no bids received or if all bids are rejected. The provisions of this section shall not prevent a sale at private sale to the United States of America or any agency thereof.
(d) Any bonds issued pursuant to this section may be issued with a provision for their redemption prior to their maturity at par and accrued interest, plus such redemption premium as may be prescribed by the governing body of the issuer, but no bond shall be redeemable before maturity unless it contains a statement to that effect. In the proceedings authorizing the issuance of the bonds, provisions shall be made specifying the manner of call and the notice that must be given."
SECTION 16. Section 11-15-440 of the 1976 Code is amended to read:
"Section 11-15-440. The governing body of any issuer may issue general obligation bonds of such issuer to such extent as such issuer shall be indebted by way of principal, interest and redemption premium upon any outstanding general obligation or revenue bonds, maturing or called for redemption, less all sinking funds and other moneys on hand applicable thereto. The issuer may utilize the provisions of Sections 11-27-40 and 11-27-50 in connection with the issuance of such refunding bonds."
SECTION 17. This act takes effect upon approval by the Governor, except Sections 2, 3, 4, 5, 6, 7, and 10 are effective for taxable years after 1998, and Section 9 is effective for property tax years beginning after 1998.
This web page was last updated on
Friday, June 26, 2009 at 3:02 P.M.