South Carolina General Assembly
113th Session, 1999-2000

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Bill 3836


Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

RECALLED

May 13, 1999

H. 3836

Introduced by Rep. Robinson

S. Printed 5/13/99--S.

Read the first time April 28, 1999.

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT1

This bill is not expected to have an impact on state general fund or local revenue in FY1999-00.

Explanation

This bill clarifies language, makes technical changes in existing legislation, and inserts consistent language in the special local option sales tax provisions.

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.

A BILL

TO AMEND SECTION 4-10-65, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO UNIDENTIFIED LOCAL OPTION SALES TAX REVENUES, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 4-10-330, RELATING TO LOCAL CAPITAL PROJECT SALES TAX, SO AS TO CHANGE THE REFERENDUM CERTIFICATION DATE FROM DECEMBER THIRTY-FIRST TO NOVEMBER THIRTIETH; TO AMEND SECTION 4-10-350, RELATING TO THE ADMINISTRATION AND COLLECTION OF LOCAL SALES TAX, SO AS TO DELETE REFERENCES TO MUNICIPALITIES; TO AMEND SECTION 4-10-360, RELATING TO LOCAL SALES TAX REVENUES AND MISALLOCATIONS, SO AS TO PROVIDE FOR PROSPECTIVE CORRECTION OF A MISALLOCATION RESULTING FROM A LOCAL CODE ERROR; TO AMEND ARTICLE 3, CHAPTER 10, TITLE 4, RELATING TO LOCAL SALES TAX, BY ADDING SECTION 4-10-380 SO AS TO PROVIDE FOR DISTRIBUTION OF UNIDENTIFIED LOCAL OPTION CAPITAL PROJECT SALES TAX; TO AMEND SECTION 4-37-30, AS AMENDED, RELATING TO FINANCING OF LOCAL TRANSPORTATION FACILITIES, SO AS TO CHANGE THE REFERENDUM CERTIFICATION DATE FROM SIXTY DAYS OF THE REFERENDUM TO NOVEMBER THIRTIETH AND TO PROVIDE FOR IMPOSITION OF THE TAX ON MAY FIRST FOLLOWING, INSTEAD OF ONE HUNDRED EIGHTY DAYS AFTER, THE REFERENDUM, AND TO PROVIDE FOR PROSPECTIVE CORRECTION OF MISALLOCATED REVENUES RESULTING FROM LOCAL CODE ERRORS; TO AMEND CHAPTER 37, TITLE 4, RELATING TO LOCAL SALES AND USE TAXES FOR FINANCING TRANSPORTATION FACILITIES, BY ADDING SECTION 4-37-50 SO AS TO PROVIDE FOR DISTRIBUTION OF UNIDENTIFIED REVENUE; TO AMEND ACT 588 OF 1994, AS AMENDED, RELATING TO THE CHEROKEE COUNTY SCHOOL DISTRICT 1 SCHOOL BOND-PROPERTY RELIEF ACT, SO AS TO PROVIDE FOR PROSPECTIVE CORRECTION OF A MISALLOCATION OF REVENUES RESULTING FROM A LOCAL CODE ERROR AND FOR DISTRIBUTION OF UNIDENTIFIED LOCAL OPTION SCHOOL DISTRICT TAX REVENUE; TO AMEND SECTION 12-4-580, RELATING TO AUTHORITY OF THE DEPARTMENT OF REVENUE TO COLLECT OUTSTANDING LIABILITIES OWED A GOVERNMENTAL ENTITY, SO AS TO ALLOW THE DEPARTMENT TO CHARGE, RETAIN, EXPEND, AND CARRY OVER FEES FOR COLLECTION; AND TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO DISCLOSURE OF RECORDS, REPORTS, AND RETURNS BY DEPARTMENT OF REVENUE EMPLOYEES, SO AS TO ALLOW DISCLOSURE OF THE FILING OF A LIEN OR ISSUANCE OF A NOTICE OF LEVY FOR UNCOLLECTED TAXES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 4-10-65 of the 1976 Code, as added by Section 99, Part II, Act 164 of 1993, is amended to read:

"Section 4-10-65. Funds collected by the Tax Commission department from the local option sales tax which are not identified as to the governmental unit due the tax, shall, and cannot be so identified after a reasonable effort by the commission department to determine the appropriate governmental unit, must be deposited to a local option supplemental revenue fund. These funds must be distributed in accordance with Section 4-10-60 to those counties generating less than the minimum distribution."

SECTION 2. Section 4-10-330(E) of the 1976 Code, as added by Act 138 of 1997, is amended to read:

"(E) All qualified electors desiring to vote in favor of imposing the tax for the stated purposes shall vote 'yes' and all qualified electors opposed to levying the tax shall vote 'no'. If a majority of the votes cast are in favor of imposing the tax, then the tax is imposed as provided in this article and the enacting ordinance. A subsequent referendum on this question must be held on the date prescribed in subsection (C). The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first November thirtieth to the county governing body and to the Department of Revenue. Expenses of the referendum must be paid by the governmental entities that would receive the proceeds of the tax in the same proportion that those entities would receive the net proceeds of the tax."

SECTION 3. Section 4-10-350(C), (D), and (E) of the 1976 Code, as added by Act 138 of 1997, is amended to read:

"(C) Taxpayers A taxpayer required to remit taxes under Article 13, Chapter 36 of Title 12 must identify the county, municipality, or both, in which the personal property purchased at retail is stored, used, or consumed in this State.

(D) Utilities are A utility is required to report sales in the county, municipality, or both, in which the consumption of the tangible personal property occurs.

(E) A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county, municipality, or combination thereof, must report separately in his sales tax return the total gross proceeds from business done in each county or municipality."

SECTION 4. Section 4-10-360 of the 1976 Code, as added by Act 138 of 1997, is amended by adding at the end:

"However, allocations made as a result of city or county code errors must be corrected prospectively."

SECTION 5. Article 3, Chapter 10, Title 4 of the 1976 Code is amended by adding:

"Section 4-10-380. Annually, and only in the month of June, funds collected by the department from the local option capital project sales tax, which are not identified as to the governmental unit due the tax, must be transferred, after reasonable effort by the department to determine the appropriate governmental unit, to the State Treasurer's Office. The State Treasurer shall distribute these funds to the county treasurer in the county area in which the tax is imposed and the revenues must be used only for the purposes stated in the imposition ordinance. The State Treasurer shall calculate this supplemental distribution on a proportional basis, based on the current fiscal year's county area revenue collections."

SECTION 6. Section 4-37-30(A)(4) and (15) of the 1976 Code, as added by Act 52 of 1995, is amended to read:

"(4) All qualified electors desiring to vote in favor of imposing the tax for a particular purpose shall vote 'yes' and all qualified electors opposed to levying the tax for a particular purpose shall vote 'no'. If a majority of the votes cast are in favor of imposing the tax for one or more of the specified purposes, then the tax is imposed as provided in this section; otherwise, the tax is not imposed. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than sixty days November thirtieth after the date of the referendum to the appropriate governing body and to the Department of Revenue. Included in the certification must be the maximum cost of the project or projects or facilities to be funded in whole or in part from proceeds of the tax, the maximum time specified for the imposition of the tax, and the principal amount of bonds to be supported by the tax receiving a favorable vote. Expenses of the referendum must be paid by the jurisdiction conducting the referendum. If the tax is approved in the referendum, the tax is imposed effective the first day of the month occurring one hundred eighty days after May following the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition is postponed for twelve months.

(15) The revenues of the tax collected in each county under this section must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues and all interest earned on the revenues while on deposit with the State Treasurer him quarterly to the county in which the tax is imposed and these revenues and interest earnings must be used only for the purpose stated in the imposition ordinance. The State Treasurer may correct misallocation costs or refunds by adjusting subsequent later distributions, but these adjustments must be 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 7. Chapter 37, Title 4 of the 1976 Code is amended by adding:

"Section 4-37-50. Annually, and only in the month of June, funds collected by the department from the local option transportation facility tax, which are not identified as to the governmental unit due the tax, must be transferred, after reasonable effort by the department to determine the appropriate governmental unit, to the State Treasurer's Office. The State Treasurer shall distribute these funds to the county treasurer in the county area in which the tax is imposed and the revenues must be used only for the purposes stated in the imposition ordinance. The State Treasurer shall calculate this supplemental distribution on a proportional basis, based on the current fiscal year's county area revenue collections."

SECTION 8. A. Section 6(A) of Act 588 of 1994 is amended to read:

"(A) The revenues of the tax collected in the county under this act must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue and Taxation of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer who holds the debt service funds established for payment of principal and interest on the bonds to which the tax is applicable. The State Treasurer may correct misallocation costs or refunds by adjusting subsequent distributions, but these adjustments must be 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."

B. Act 588 of 1994 is amended by adding an appropriately numbered section to read:

"SECTION __. Annually, and only in the month of June, funds collected by the department from the local option school district tax, which are not identified as to the governmental unit due the tax, must be transferred, after reasonable effort by the department to determine the appropriate governmental unit, to the State Treasurer's Office. The State Treasurer shall distribute these funds to the county treasurer in the county area in which the tax is imposed and the revenues must be used only for the purposes stated in the imposition resolution. The State Treasurer shall calculate this supplemental distribution on a proportional basis, based on the current fiscal year's county area revenue collections."

SECTION 9. Section 12-4-580(B) of the 1976 Code, as added by Section 59A, Part II, Act 458 of 1996, is amended to read:

"(B) The department may charge and retain a reasonable fee for any collection effort made on a governmental entity's behalf. The department may expend the funds resulting from any fees so charged and retained and may carry the funds forward from one fiscal year to the next. The amount of the fee must be negotiated between the governmental entity and the department."

SECTION 10. Section 12-54-240(B)(6) of the 1976 Code, as added by Act 658 of 1988, is amended to read:

"(6) disclosure of a deficiency assessments assessment to a probate courts and the filing of warrants for uncollected taxes court, the filing of a tax lien for uncollected taxes, and the issuance of a notice of levy;

SECTION 11. This act takes effect upon approval by the Governor.

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