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1131Ratification Number: 448Act Number: 326Type of Legislation: General Bill GBIntroducing Body: SenateIntroduced Date: 20020320Primary Sponsor: PattersonAll Sponsors: Patterson, Giese, Courson and JacksonDrafted Document Number: l:\council\bills\bbm\10917htc02.docDate Bill Passed both Bodies: 20020605Date of Last Amendment: 20020530Governor's Action: SDate of Governor's Action: 20020618Subject: Richland County School Districts Property Tax Relief Act, to provide for special one percent sales tax; election of trustees for Richland-Lexington School District 5; Richland-Lexington Airport District Commission, appointment of additional member; Midlands Technical College Commission, appointment of membersHistory Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20020708 Act No. A326 ------ 20020618 Signed by Governor ------ 20020606 Ratified R448 House 20020605 Concurred in Senate amendment, enrolled for ratification Senate 20020530 House amendments amended, returned to House with amendment House 20020529 Returned the Bill to the Senate Senate 20020529 Recalled from House Senate 20020528 House amendments amended, returned to House with amendment House 20020523 Read third time, returned to Senate with amendment House 20020522 Amended, read second time House 20020521 Request for debate withdrawn by Representative Rhoad House 20020515 Debate adjourned until Thursday, 20020516 House 20020508 Debate adjourned until Tuesday, 20020514 House 20020501 Debate adjourned until Tuesday, 20020507 House 20020501 Request for debate by Representative Harrison Rhoad J. Brown House 20020501 Objection by Representative Knotts Whatley Quinn Riser Frye House 20020430 Debate adjourned until Wednesday, 20020501 House 20020424 Recalled from Committee 30 HWM House 20020423 Introduced, read first time, 30 HWM referred to Committee Senate 20020418 Read third time, sent to House ------ 20020418 Scrivener's error corrected Senate 20020417 Read second time, unanimous consent for third reading on the next Legislative day Senate 20020417 Recalled from Committee 06 SF Senate 20020320 Introduced, read first time, 06 SF referred to Committee Versions of This Bill Revised on April 17, 2002 - Word format Revised on April 18, 2002 - Word format Revised on April 24, 2002 - Word format Revised on May 22, 2002 - Word format Revised on May 28, 2002 - Word format Revised on May 30, 2002 - Word format
(A326, R448, S1131)
AN ACT TO ENACT THE "RICHLAND COUNTY SCHOOL DISTRICTS PROPERTY TAX RELIEF ACT" BY PROVIDING FOR THE IMPOSITION OF A SPECIAL ONE PERCENT SALES AND USE TAX IN RICHLAND COUNTY FOR NOT MORE THAN TWENTY YEARS WITH THE REVENUE OF THE TAX USED TO DEFRAY GENERAL OBLIGATION DEBT SERVICE OR OTHERWISE DEFRAY THE COSTS OF CAPITAL IMPROVEMENTS OF THE SCHOOL DISTRICTS OF RICHLAND COUNTY, TO PROVIDE THAT THE TAX MAY BE IMPOSED ONLY AFTER ITS APPROVAL IN A REFERENDUM HELD IN THE COUNTY, TO PROVIDE FOR THE REFERENDUM, AND TO PROVIDE THAT, IF IMPOSED, THE TAX MUST BE COLLECTED BY THE SOUTH CAROLINA DEPARTMENT OF REVENUE AND REMITTED TO THE RICHLAND COUNTY TREASURER FOR THE RICHLAND COUNTY SCHOOL DISTRICTS, TO PROVIDE THAT THE TAX IS IMPOSED AND IS SUBJECT TO THE SAME EXEMPTIONS AND MAXIMUM TAXES AS PROVIDED IN THE SOUTH CAROLINA SALES TAX ACT EXCEPT FOR AN ADDITIONAL EXEMPTION FOR FOOD ITEMS WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE FOR THE METHOD OF APPLYING THE REVENUES OF THE TAX TO SCHOOL DISTRICT GENERAL OBLIGATION DEBT SERVICE, AND TO PROVIDE FOR THE ELECTION OF TRUSTEES FOR RICHLAND-LEXINGTON SCHOOL DISTRICT 5; TO AMEND SECTION 55-11-320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF THE RICHLAND-LEXINGTON AIRPORT DISTRICT, SO AS TO INCREASE THE MEMBERSHIP OF THE COMMISSION FROM TEN TO TWELVE MEMBERS AND PROVIDE FOR THE METHOD OF APPOINTMENT OF THE ADDITIONAL MEMBERS; AND TO AMEND SECTION 59-53-1710, AS AMENDED, RELATING TO THE ESTABLISHMENT OF THE MIDLANDS TECHNICAL COLLEGE COMMISSION, SO AS TO REDUCE FROM EIGHT TO SEVEN THE COMMISSION MEMBERS APPOINTED BY THE GOVERNOR ON THE RECOMMENDATION OF THE RICHLAND COUNTY LEGISLATIVE DELEGATION AND CONCOMITANTLY INCREASE FROM FOUR TO FIVE THE COMMISSION MEMBERS APPOINTED BY THE GOVERNOR ON THE RECOMMENDATION OF THE LEXINGTON COUNTY DELEGATION.
Be it enacted by the General Assembly of the State of South Carolina:
Citation; Richland County School Districts Property Tax Relief Act
SECTION 1. This act may be cited as the "Richland County School Districts Property Tax Relief Act".
Use of sales and use tax revenues
SECTION 2. Subject to the requirements of this act, there may be imposed a one percent sales and use tax within Richland County. The proceeds of the tax must be distributed to the three school districts in Richland County as provided in this act. The boards of trustees of each of the school districts, before the expenditure of the proceeds of the tax authorized by this act, by resolution, must determine the specific purposes for which the proceeds of the tax as distributed must be expended. However, in any case the proceeds only must be applied to (a) reduce ad valorem property taxes imposed to pay debt service on general obligation bonds or (b) otherwise defray the cost of capital improvements within each school district, as determined by resolution of the boards of trustees of the respective school districts.
Referendum to impose tax
SECTION 3. (A) The tax authorized by this act may be imposed upon (1) the adoption of an approving resolution by each of the boards of trustees of the three school districts in Richland County and (2) the subsequent approval of the imposition of the tax by referendum open to all qualified electors residing in Richland County. The approving resolutions must specify the maximum time, stated in calendar years, not to exceed twenty years, for which the tax must be imposed; the date upon which the referendum is held, the precincts and polling places for the referendum, and the question to appear on the referendum ballot. The approving resolutions, upon adoption, must be forwarded to the Richland County Registration and Elections Commission.
(B) Upon receipt of approving resolutions from all boards of trustees of Richland County school districts, the commission shall conduct a referendum on the question of imposing the tax in Richland County. Notice of the election must be provided in the manner provided by the general election law and include the question to be voted upon in the referendum. Expenses of the referendum must be paid by the three Richland County school districts, proportionally according to number of persons residing in each school district who are registered to vote in Richland County.
(C) The question to be voted upon in the referendum must read substantially as follows:
"Must a special one percent sales and use tax be imposed in Richland County for not more than ____ years with the revenue of the tax used to pay debt service on general obligation bonds of, or directly to defray the cost of capital improvements for, or both of these purposes, the three school districts in Richland County?
The ballot may contain a short explanation of the question to be voted upon in this referendum.
(D) Upon receipt and certification of the returns of the referendum, the Richland County Registration and Election Commission, by resolution, shall certify the results of the referendum by resolution and within ten days thereafter file the resolution with the Richland County Clerk of Court and with the South Carolina Department of Revenue. The results of the referendum, as declared by resolution of the Richland County Registration and Election Commission and as filed with the clerk of court, is not open to question except by a civil action instituted within twenty days of the filing of the resolution. If a majority of the total votes cast is in favor of imposing the tax, then the tax is imposed as provided in this act; otherwise the tax is not imposed. A referendum on imposition of the tax authorized in this act may not be held more than once in a period of twelve consecutive months.
Date of imposition
SECTION 4. (A) If the tax is approved in the referendum, the tax must be imposed beginning upon the first day of the sixth full month following the filing of the declaration of results of the referendum with the Department of Revenue.
(B) The tax terminates upon the earlier of:
(1) the final day of the maximum time specified for the imposition; or
(2) sixty days following the filing with the Department of Revenue of certified copies of resolutions adopted by the boards of trustees of each of the three Richland County school Districts each requesting termination of the tax.
Administration of the tax; exemption
SECTION 5. (A) The tax levied pursuant to this act must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe the amounts which may be added to the sales price because of the tax.
(B) The tax authorized by this act is in addition to all other local sales and use taxes and applies to the gross proceeds of the sales in Richland County which are subject to the tax imposed by Chapter 36, Title 12 of the 1976 Code and the enforcement provisions of Chapter 54, Title 12 of the 1976 Code. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 of the 1976 Code are exempt from the tax imposed by this act. The gross proceeds of the sale of food which may lawfully be purchased with United States Department of Agriculture food coupons are exempt from the tax imposed by this act. The tax imposed by this act also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12 of the 1976 Code.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36, Title 12 of the 1976 Code shall identify the county in which the tangible personal property purchased at retail is stored, used, or consumed in this State.
(D) Utilities are required to report sales in the county in which consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920 of the 1976 Code, who owns or manages rental units in more than one county shall separately report in his sales tax return the total gross proceeds from business done in each county.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this act in Richland County, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the special local sales and use tax provided in this section if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition of the special local sales and use tax.
(G) Notwithstanding the imposition date of the special local sales and use tax authorized pursuant to this act, with respect to services that are regularly billed on a monthly basis, the special local sales and use tax is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Crediting of revenues
SECTION 6. (A) The revenues of the sales and use tax collected 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 of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues monthly to the Richland County Treasurer for the benefit of the Richland County school districts in the amounts established in accordance with subsection (b) of this section. 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.
(B) The State Treasurer shall distribute proceeds of the tax, less amounts attributable to refunds and administration as provided in subsection (A) of this section, to the Richland County Treasurer and thereafter by the Richland County Treasurer to the school districts of Richland County in direct proportion to the one hundred thirty-five day average daily membership of each of the three school districts for the fiscal year before the year in which a distribution is made, as certified by the State Treasurer upon advice of the State Department of Education. For purposes of this subsection, the one hundred thirty-five day average daily membership excludes any student not residing in Richland County.
(C) Except as provided in Section 7 of this act, withdrawals by the school districts of tax proceeds from the Richland County Treasurer must be made in the same manner as are funds appropriated to the school districts by the State. Pending these withdrawals, taxes must be deposited in accounts for each school district, separate and distinct from accounts established for any other purpose, and investment earnings derived from monies in such an account must be credited to the account. Each school district shall maintain records which demonstrate that tax proceeds are spent only for the purposes as approved by its board of trustees and in accordance with this act.
Use of revenues
SECTION 7. If a school district elects that all or a portion of its share of the proceeds of the sales and use tax imposed and collected may be applied to the reduction of property taxes imposed in a given fiscal year to pay debt service on general obligation bonds of that school district, the school district shall notify the Richland County Treasurer in writing no later than July first of that fiscal year of its election and shall specify in the writing the amount of sales and use taxes to be applied to its general obligation bond debt service. The amount specified must not exceed the amount of sales and use tax proceeds held by the Richland County Treasurer for the school district as of July first of the fiscal year. The election is effective only for and applies only to debt service payments to be made in the eighteen-month period following that July first. Elections may be renewed from year to year.
Upon notification by a school district of its election under this section, the Richland County Treasurer shall certify to the Richland County Auditor by August first of that fiscal year the amount of sales and use taxes then held by the Richland County Treasurer for the benefit of the school district and designated by the school district for application to general obligation bond debt service payments. The Richland County Auditor shall reduce the levy of property taxes for the fiscal year required to pay debt service on general obligation bonds of the school district by the amount of sales and use tax revenues certified as held by the Richland County Treasurer and designated by the school district for the purpose. This amount of sales and use taxes thereafter must not be released to the school district but must be held by the Richland County Treasurer to pay debt service on general obligation bonds. However, any sales and use taxes held by the Richland County Treasurer in excess of the amounts designated by the school district for payment of debt service on general obligation bonds in the eighteen months following the July first of the fiscal year must be expended as directed by the school district in accordance with this act. Any investment earnings derived from the sales and use tax must be expended as directed by the school district in accordance with this act. With respect to a school district situated in more than one county, the requirements of this Section 7 apply with respect to the auditor and treasurer of both counties.
SECTION 8. The Department of Revenue, the State Department of Education, and the Richland County Auditor shall furnish data to the State Treasurer and to the school districts receiving tax revenues pursuant to this act for the purpose of calculating distributions and estimating revenues. The information that must be supplied to Richland County school districts upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240 of the 1976 Code. A person violating this section is subject to the penalties provided in Section 12-54-240 of the 1976 Code.
Trustees in Richland-Lexington School District 5
SECTION 9. (a) Notwithstanding another provision of law, in Richland-Lexington School District 5:
(1) three trustees must reside in Richland County and four must reside in Lexington County; and
(2) the results of the election for trustees must be determined in accordance with the nonpartisan election and run-off election method prescribed in Section 5-15-62 of the 1976 Code.
(b) Beginning with the election of 2002, the seats for Trustees of Richland-Lexington School District 5 must be numbered as follows with each candidate running for a particular seat:
(1) the seats presently held by trustees residing in Lexington County whose terms expire in 2004 are seats 1, 2, and 3, respectively;
(2) the seat presently held by a trustee residing in Lexington County whose term expires in 2002 is seat 4;
(3) the seat presently held by a trustee residing in Richland County whose term expires in 2004 is seat 5;
(4) the seat presently held by a trustee residing in Richland County whose term expires in 2002 is seat 6; and
(5) the seat presently held by a trustee residing in Lexington County whose term expires in 2002 must be filled in the election of 2002, and thereafter, by a resident of Richland County, is seat 7. This trustee must be elected for a four-year term to expire in 2006.
(c) This section takes effect upon approval by the Governor and applies to the election of Trustees of the Richland-Lexington School District 5 conducted in November 2002.
Richland-Lexington Airport District Commission; members
SECTION 10. Section 55-11-320 of the 1976 Code is amended to read:
"Section 55-11-320. The corporate powers and duties of the Richland-Lexington Airport District must be exercised and performed by a commission to be known as Richland-Lexington Airport Commission. The commission must be composed of twelve members to be appointed by the Governor as follows: five members must be appointed upon the recommendation of a majority of the Lexington County Legislative Delegation, five members must be appointed upon the recommendation of a majority of the Richland County Legislative Delegation, and two members must be appointed upon the recommendation of the City Council of the City of Columbia. The members of the commission shall serve for terms of four years and until their successors are appointed and qualify. Members may not serve more than two consecutive terms. A member serving on July 1, 1994, may serve until the expiration of the term for which he was elected and may serve two additional terms. In the event of a vacancy for any reason, other than the expiration of a term, a successor must be appointed in the same manner of the original appointment for the balance of the unexpired term. Any member may be removed by the appointing authority for neglect of duty, misconduct, or malfeasance in office after being given a written statement of reasons and an opportunity to be heard. Notwithstanding the expiration of the term of office of any member, he shall continue to serve until his successor shall have been recommended, appointed, and qualified, but any delay in appointing a successor shall not extend the term of such successor. The members of the commission shall serve without compensation, except for their actual and necessary expenses while in performance of duties prescribed under this article."
Midlands Technical College Commission; members
SECTION 11. Section 59-53-1710 of the 1976 Code is amended to read:
"Section 59-53-1710. There is created, as an administrative agency of Richland and Lexington Counties, the Midlands Technical College Commission. The commission is composed of twelve members who must be appointed by the Governor for a term of four years as follows: seven members must be appointed upon the recommendation of a majority of the legislative delegation representing Richland County, and five members must be appointed upon the recommendation of a majority of the legislative delegation representing Lexington County. Members may not serve more than two consecutive terms. A member serving on July 1, 2002, may serve until the expiration of the term for which he was elected and may serve two additional terms. If a vacancy occurs a successor must be appointed in the same manner as the original appointment for the unexpired portion of the term. Any member may be removed by the appointing authority for neglect of duty, misconduct, or malfeasance in office after being given a written statement of reasons and an opportunity to be heard. Members serve until their successors are appointed and qualify, but any delay in appointing a successor does not extend the term of the succession. The members of the commission shall receive per diem as provided for members of boards, commissions, and committees and actual expenses incurred in the performance of their duties. As soon as the initial appointments have been made, the commission shall elect from its membership a chairman, a vice chairman, a treasurer, and a secretary to serve for terms of two years and until their successors are elected and qualify. The office of chairman must be rotated among the representatives of the two counties. If the office of chairman becomes vacant, a successor must be elected for the remainder of the term and must be from the members representing the same county as the former chairman. The same rotation must be applied to the office of vice chairman, but the practice of rotating the office of vice chairman may be dispensed with if, by three-fourths vote, the commission finds that the rotation is impracticable."
SECTION 12. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 13. Except as otherwise provided in this act, this act takes effect upon approval by the Governor.
Ratified the 6th day of June, 2002.
Approved the 18th day of June, 2002.
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