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Current Status Bill Number:View additional legislative information at the LPITS web site.419 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20010307 Primary Sponsor:Pinckney All Sponsors:Pinckney, Drummond, Matthews, J. Verne Smith, Passailaigue, Ford, Glover, McConnell, Grooms, Jackson Drafted Document Number:l:\council\bills\bbm\9958htc01.doc Residing Body:House Subject:Capital project sales tax, revenue to pay debt service on bonds; Capital improvements, Political Subdivisions, Taxation History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 20020530 Request for debate withdrawn by Representative J.E. Smith House 20020529 Request for debate by Representative Loftis Lourie J. E. Smith Barfield Bales A. Young Ott Cobb-Hunter Stuart Harrell Koon J. R. Smith Vaughn Moody- Lawrence House 20020523 Committee report: Favorable with 30 HWM amendment House 20010522 Introduced, read first time, 30 HWM referred to Committee Senate 20010517 Read third time, sent to House Senate 20010514 Read second time Senate 20010509 Committee report: Favorable 06 SF Senate 20010307 Introduced, read first time, 06 SF referred to Committee Versions of This Bill Revised on May 9, 2001 - Word format Revised on May 23, 2002 - Word format
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 23, 2002
S. 419
Introduced by Senators Pinckney, Drummond, Matthews, J. Verne Smith, Passailaigue, Ford, Glover, McConnell, Grooms and Jackson
S. Printed 5/23/02--H.
Read the first time May 22, 2001.
To whom was referred a Bill (S. 419) to amend Sections 4-10-330, as amended, 4-10-340, and 4-10-360, as amended, Code of Laws of South Carolina, 1976, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by adding the following new SECTIONS to read:
/ SECTION __. A. Chapter 10, Title 4 of the 1976 Code is amended by adding:
Section 4-10-710. This article may be cited as the 'Municipal Capital Project Sales Tax Act'.
Section 4-10-720. Subject to the requirements of this article, the municipal governing body may impose a one percent sales and use tax by ordinance, subject to a referendum, within the municipality for a specific purpose or purposes and for a limited amount of time to collect a limited amount of money. The revenues collected pursuant to this article may be used to defray debt service on bonds issued to pay for projects authorized in this article.
Section 4-10-730. The governing body of a municipality must consider proposals for funding capital projects within the municipality and formulate the referendum question that is to appear on the ballot pursuant to Section 4-10-740(D).
Section 4-10-740. (A) The sales and use tax authorized by this article is imposed by an enacting ordinance of the municipal governing body containing the ballot question formulated by its governing body pursuant to Section 4-10-730, subject to referendum approval in the municipality. The ordinance must specify:
(1) the purpose for which the proceeds of the tax are to be used, which may include projects located within or without, or both within and without, the boundaries of the municipality and may include the following types of projects:
(a) highways, roads, streets, and bridges;
(b) administration buildings, civic centers, hospitals, emergency medical facilities, police stations, fire stations, jails, correctional facilities, detention facilities, libraries, coliseums, or any combination of these projects;
(c) cultural, recreational, or historic facilities, or any combination of these facilities;
(d) water, sewer, or water and sewer projects;
(e) flood control projects and storm water management facilities;
(f) jointly operated projects of the municipality, county, special purpose district, and school district, or any combination of those entities, for the projects delineated in subitems (a) through (e) of this subsection;
(g) any combination of the projects described in subitems (a) through (f) of this item;
(2) the maximum time, stated in terms of calendar or fiscal years or quarters, or a combination thereof, not to exceed seven years from the date of imposition, for which the tax may be imposed;
(3) the maximum cost of the project or facilities funded from proceeds of the tax and the maximum amount of net proceeds to be raised by the tax; and
(4) any other condition precedent, as determined by the commission, to the imposition of the sales and use tax authorized by this article or condition or restriction on the use of sales and use tax revenue collected pursuant to this article.
(B) When the tax authorized by this article is imposed for more than one purpose, the enacting ordinance must set forth the priority in which the net proceeds are to be expended for the purposes stated. The enacting ordinance may set forth a formula or system by which multiple projects are funded simultaneously.
(C) Upon receipt of the ordinance, the municipal election commission must conduct a referendum on the question of imposing the sales and use tax in the municipality. A referendum for this purpose must be held at the time of the general election. Two weeks before the referendum the election commission must publish in a newspaper of general circulation the question that is to appear on the ballot, with the list of projects and the cost of the projects. This notice is in lieu of any other notice otherwise required by law.
(D) The referendum question to be on the ballot must read substantially as follows:
'Must a special one percent sales and use tax be imposed in (municipality) for not more than (time) to raise the amounts specified for the following purposes?
(1) $________ for __________
(2) $________ for __________
(3) etc.
(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 November thirtieth to the municipal governing body and to the Department of Revenue.
(F) Upon receipt of the returns of the referendum, the municipal governing body, by resolution, must declare the results of the referendum. In this event, the results of the referendum, as declared by resolution of the municipal governing body, are not open to question except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
Section 4-10-750. (A) If the sales and use tax is approved in the referendum, the tax is imposed on the first of 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.
(B) The tax terminates on the earlier of:
(1) the final day of the maximum time period specified for the imposition; or
(2) the end of the calendar month during which the Department of Revenue determines that the tax has raised revenues sufficient to provide the net proceeds equal to or greater than the amount specified in the referendum question.
(C) Amounts collected in excess of the required net proceeds must first be applied, if necessary, to complete a project for which the tax was imposed; otherwise, the excess funds must be credited to the general fund of the municipality.
Section 4-10-760. (A) The tax levied pursuant to this article 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 amounts that may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(C) A taxpayer required to remit taxes under Article 13, Chapter 36 of Title 12 must identify the municipality in which the personal property purchased at retail is stored, used, or consumed in this State.
(D) A utility is required to report sales in the municipality 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 municipality, must report separately in his sales tax return the total gross proceeds from business done in each municipality.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a municipality, 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 sales and use tax provided in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
(G) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-770. The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any 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 quarterly to the municipal treasurer and the revenues must be used only for the purposes stated in the imposition ordinance. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations. However, allocations made as a result of city or county code errors must be corrected prospectively.
Section 4-10-780. The Department of Revenue shall furnish data to the State Treasurer and to the municipal treasurers receiving revenues for the purpose of calculating distributions and estimating revenues. The information that must be supplied to municipalities 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. A person violating this section is subject to the penalties provided in Section 12-54-240.
Section 4-10-790. Annually, and only in the month of June, funds collected by the department from the municipal 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 municipal treasurer and the revenues must be used only for the purposes stated in the imposition ordinance."
B. Notwithstanding any other effective date provided in this act, this section takes effect upon approval of this act by the Governor.
SECTION __. A.Section 12-21-3920(4) and (6) of the 1976 Code are amended to read:
"(4) 'Promoter' means an individual, corporation, partnership, or organization licensed as a professional solicitor by the Secretary of State who is hired by a nonprofit organization to manage, operate, or conduct the licensee's bingo game. The person hired under written contract is considered the promoter.
(6) 'Session' means a consecutive series of games which must occur only between one o'clock p.m. and one o'clock a.m the hours of 12:00 p.m. and 2:00 a.m. No more than one session may occur during the permitted twelve-hour period. These limitations do not apply to games operated by state or county fairs."
B. Section 12-21-3920 is amended by adding at the end:
"(20) 'Electronic dabber' means a hand-held electronic device that allows a player to store, display, and mark a bingo card face. All systems and electronic dabbers must be tested and approved by an independent testing facility to be determined by the department.
(21) 'Electronic dabber bingo ticket' means a perforated two-part ticket bearing a sequential serial ticket number bearing the South Carolina State Seal, denomination, and the department's license number. The ticket must have designated blanks for entry of the date sold and electronic dabber unit supplied. Electronic dabber bingo tickets must be printed and sold only by distributors of bingo paper licensed by the department.
(22) 'Site system' means a computer accounting system commonly referred to as a point of sale system used in conjunction with electronic dabbers. This computer software is used at a site by an organization that allows an electronic dabber bingo ticket purchased from a license distributor to be downloaded to electronic dabbers, accounts for gross proceeds, and provides accounting information on all activity for one year from the end of the quarter in which the activity occurred. All systems and electronic dabbers must be tested and approved by an independent testing facility to be determined by the department."
C. Section 12-21-3950(B) of the 1976 Code is amended to read:
"(B) Upon application for a license, the department has thirty forty-five days to approve or reject the application based on the requirements of this article."
D. Section 12-21-3970 of the 1976 Code is amended to read:
"Section 12-21-3970. For each licensed nonprofit organization the promoter manages, operates, or conducts bingo, the promoter must purchase a promoter's license as provided in Section 12-21-3950 before operating or conducting bingo. No A promoter
is not permitted more than five fifteen licenses. This license must be prominently displayed at the location where bingo is conducted."
E. Section 12-21-3990(A)(1), (2), and (4) of the 1976 Code are amended to read:
"(1) Bingo is played by more than one player and a caller who is associated with the house. Each player must pay no more than face value for each card to be played during the course of a game and may purchase the card for a specified number of games. All cards sold for a game must sell for face value and cards may not be given to players as prizes or for free. After the player has purchased a card or cards for a specified number of games, the house cannot require or accept an additional payment or consideration by the player in order to complete the specified number of games.
(2) Before each game begins, the caller shall announce to the players the configuration or configurations that will win the game. A configuration consists of a number of grids covered in the manner announced by the caller. Any method of playing the games is allowed if the method is announced before each game game's beginning including, but not limited to, wild card games. In addition, at the conclusion of each game, the prize, specifically stating the dollar amount or value of merchandise awarded to the winner or winners for the game completed, must be announced before the next game begins.
(4) The caller shall draw and announce numbers from the cage one at a time. If a player has a card with the called number on it, he may use a marker or electronic dabber to cover the square which contains the number. After the number is announced, it must be indicated on the master-board by the caller."
F. Section 12-21-4000(8) of the 1976 Code is amended to read:
"(8) The prize must be awarded to the first person who successfully achieves the winning configuration of covered squares. All winning configurations must be verified using an electronic verifying system and must be displayed on the monitor for all players to see."
G. Section 12-21-4000(12)(b) of the 1976 Code is amended to read:
"(b) A bingo operation may take in only two times more in gross proceeds than the prize for that session averaged on a quarterly basis. Amounts in excess of this limit are subject to a tax, in addition to any other bingo license taxes and fees equal to the amount of the excess. Each session that the gross proceeds are greater than twice the prize amounts paid constitutes a separate offense if the tax is unpaid. These excess proceeds tax must be remitted to the department on the organization's quarterly bingo report and distributed as provided in Section 12-21-4190. Failure to remit this excess proceeds tax to the department shall result in immediate suspension of both the promoter's license and the organization's license. The department, after a conference with the promoter and organization, may permanently revoke the license of the promoter or the nonprofit organization, or both. If permanently revoked, the promoter, nonprofit organization, or any partner or member of the organization may no longer manage, conduct, or assist in any manner with a bingo operation in this State."
H. Section 12-21-4000 of the 1976 Code is amended by adding at the end:
"(15) The house may hold promotions of special events during a session offering players prizes other than from the play of bingo not to exceed one hundred dollars in cash or merchandise for each session. This amount is not to be paid out of the bingo account and is not included in total payouts for a session. There is no additional charge to players to participate in a special promotion. The promotion must not be a form of gambling or a game of chance."
I. Section 12-21-4020(2) and (3) of the 1976 Code are amended to read:
"(2) CLASS B: An organization operating a bingo game offering prizes, which do not exceed eight twelve thousand dollars a session, shall obtain a Class B bingo license at a cost of one thousand dollars. The holder of a Class B license may not conduct more than three six bingo sessions a week.
(3) CLASS C: An organization operating a bingo game and offering prizes of twenty dollars or less a game during a single session shall obtain a Class C bingo license at no cost. However, the organization may offer a prize in cash or merchandise of no more than one hundred fifty dollars for six jackpot games a session. The department, in its discretion, may allow certain Class C licenses to use hard bingo cards in lieu instead of the paper cards required by this article. An organization operating a Class C bingo game must not exceed gross proceeds of one hundred thousand dollars a calendar quarter. If the gross bingo proceeds for any calendar quarter exceed one hundred thousand dollars, the organization is required to notify the department within ten days by making application for a Class G license.
Once the organization exceeds the limit of one hundred thousand dollars, the organization is subject to tax on the dollar face value of each card at the rate of nine and one-half percent. At the time that a Class G license is issued by the department, an audit of the organization must be conducted to determine any tax owed during the interim operating period from the time the limits were exceeded until the time the Class G license was issued by the department.
To qualify to play on hard cards, a bingo game conducted by a Class C license must meet the following criteria:
(a) be operated solely by volunteers;
(b) the person managing, conducting, or operating the bingo game may must not be paid or otherwise be compensated and must be a designated member of the organization;
(c) remuneration, (including wages or other compensation), may must not be made to any individual or corporation;
(d) all equipment used to operate a game of bingo, including chairs, tables, and other equipment, must be owned by the charity;
(e) the organization must may lease the building directly from the owner of the building or own the building in which the game of bingo is played. The organization may not lease or sublease the building from a person who is not the owner;
(f) the only expenses allowed to be paid from the proceeds of the game are utility bills, prizes, purchases of cards, payments for the lease of a building, purchases of equipment required to operate a game of bingo, and the charitable purposes of the organization;
(g) one hundred percent of the net proceeds from the operation of the game must be used for charitable purposes."
J. Section 12-21-4020 of the 1976 Code is amended by adding at the end:
"(7) CLASS G: An organization operating a bingo game and offering prizes of twenty dollars or less a game during a single session and whose gross receipts exceed one hundred thousand dollars a calendar quarter shall obtain a Class G license at a cost of three hundred dollars. However, the organization may offer a prize in cash or merchandise of not more than one hundred fifty dollars for ten jackpot games a session."
K. Section 12-21-4080(A) of the 1976 Code is amended to read:
"(A) Upon completion of the session, the promoter or the organization member representative shall deliver to the representative member of the organization deposit the gross proceeds from the session less the amount paid out as prizes and
collected as entrance fees into the bingo checking account. If the promoter is authorized by the organization to make the session deposit, the promoter shall deliver to the organization representative evidence that the deposit was made in a timely manner. This evidence must be furnished no later than the next business day following the day of the bingo session on which the proceeds were obtained."
L. Section 12-21-4090(C) of the 1976 Code is amended to read:
"(C) An organization receiving an annual license to conduct bingo shall establish and maintain one regular checking account designated the 'bingo account' and also may maintain an interest-bearing savings account designated the 'bingo savings account'. All funds derived from the conduct of bingo, less the amount awarded as cash prizes, must be deposited in the bingo account. No Other funds may not be deposited in the bingo account, unless there is a deficit, and then both the organization and promoter shall deposit a loan equal to fifty percent of the deficit. Each loan deposited into the bingo checking account must be accounted for on the quarterly financial reports filed with the department. Detailed information substantiating these loans must be maintained by the organization. Deposits must be made no later than the next business day following the day of the bingo occasion on which the receipts were obtained. All accounts must be maintained in a financial institution in this State."
M. Section 12-21-4120 of the 1976 Code is amended to read:
"Section 12-21-4120. A person who is found in violation of the provisions of this article and assessed additional taxes, penalties, fines, or interest is entitled to a conference upon request. Any organization or promoter seeking clarification on the play of or operation of a bingo game shall submit to the department's bingo regulatory section a written request seeking a determination as to whether or not a certain or specific action constitutes a violation. A conference may be requested upon the receipt of the clarification request. Any organization or promoter found in violation of the provisions of this article and assessed additional taxes, penalties, fines, or interest is entitled to a conference upon request."
N. Section 12-21-4150 of the 1976 Code is amended to read:
"Section 12-21-4150. A person who poses as a bingo player, or a person who conspires to have a person pose as a bingo player with the intent to defraud regular customers of the game, or a person who is using unauthorized bingo supplies, or a person using counterfeit electronic dabber bingo tickets is guilty of a felony and,
upon conviction, must be imprisoned not more than five years or fined not more than five thousand dollars, or both."
O. Section 12-21-4190(A) of the 1976 Code is amended to read:
(A) The department shall charge and retain sixteen and one-half cents for each dollar of face value for each bingo card sold for AA, B, D, and E licenses. The department shall charge and retain five cents for each dollar of face value for each bingo card sold to an F license. There shall be no charge for a C license. There is a charge of nine and one-half cents for each dollar of face value for each bingo card sold to a G license. For any holder of a Class G license that is charged nine and one-half cents for each dollar of face value for each bingo card sold, a distribution in the amount of four and twenty-nine hundredths percent of total face value of bingo cards purchased must be distributed back to the sponsoring organization for which the bingo cards were purchased."
P. Section 12-21-4210 of the 1976 Code is amended to read:
"Section 12-21-4210. Bingo cards may not be sold or transferred between licensed organizations, between distributors, or between manufacturers. All unused bingo cards may be returned to the department for refund and destruction. For any Class C paper in inventory at the time that the organization applies for a Class G license and begins to pay tax, a department agent shall inventory any untaxed paper and conduct an examination of books and records from the point of time that the game exceeded one hundred thousand dollars and an assessment must be issued on the dollar face value of each card and the tax must be paid within fifteen days from the date of the assessment. The department is required to refund only the amount retained by the department previously based on the face value of each card and does not include the manufacturer's price or transportation charges to the consignee at destination and such additional charges. If an organization operating a bingo game ceases operation within fifteen days from the purchase of the last voucher and the voucher remains outstanding, the department shall accept the returned paper and credit the value of returned paper against the outstanding voucher. The organization then shall pay the balance of the voucher less the value of returned paper."
Q. Section 12-21-4270 of the 1976 Code is amended to read:
"Section 12-21-4270. Each licensed nonprofit organization or promoter, in the name of a licensed organization, may obtain bingo cards approved by the department by making application and remitting sixteen and one-half percent of the total face value of the cards to be purchased. Payment to the State for the issuance of
bingo cards must be made by check, certified check, any electronic method, or cash within fifteen days of receipt of the application. If payment is made by check and the check is returned by the bank for any reason, the organization or promoter then is required to make payment to the department by certified funds for the remainder of the time that the bingo session is in operation. Upon receipt of the application, the department shall notify a licensed distributor, who has purchased bingo cards from a licensed manufacturer that the licensed distributor may release the face value of the bingo cards requested to the licensed organization or promoter. However, no additional bingo cards must be released until payment is received for the prior application of bingo cards. The department is required to set forth procedures to ensure that there is a crosscheck between manufacturers, distributors, and licensed nonprofit organizations or promoters. A quarterly return is required by each manufacturer, distributor, and licensed nonprofit organization or promoter on or before the last day of the month following the close of the calendar quarter, outlining those items the department determines necessary to verify the sale and distribution of bingo cards. The sale of bingo cards and entrance fees provided by Section 12-21-4030 are not subject to the admissions tax provided by Section 12-21-2420."
R. The 1976 Code is amended by adding:
"Section 12-21-4005. (A) A site system and an electronic bingo dabber must meet the following specifications:
(1) A site system must:
(a) record a nonresetable electronic consecutive six digit receipt number for each transaction;
(b) issue a player a receipt for each transaction containing:
(i) name of a site or organization;
(ii) date and time of the transaction;
(iii) number of electronic bingo card images downloaded;
(iv) selling price of a card or package, gross proceeds, and receipt number; and
(v) serial number of device issued to a player;
(c) print a summary report for each session containing:
(i) date and time of the report;
(ii) name of site;
(iii) date of the session;
(iv) sequential session number;
(v) number of transactions;
(vi) number of voided transactions;
(vii) number of electronic bingo card images downloaded;
(viii) number of devices used;
(ix) total gross proceeds; and
(x) any other information required by the department.
(2) An electronic dabber:
(a) must be a portable hand-held unit and may not be wired directly to a site system;
(b) may not have more than one hundred forty-four faces to be played each game when used in a Class B game and not more than two hundred eighty-eight faces to be played each game when used in a Class AA game;
(c) must require a player to manually enter each bingo number called by using an input function key;
(d) shall display a player's best card or a winning card and alert only that player through an audio or video method, or both, of that result;
(e) must automatically erase all stored cards at the end of the last game of a session or when the device is turned off; and
(f) must be downloaded with new cards at the beginning of each session.
(B) The department's representative may examine and inspect a site system, electronic bingo dabber, and related equipment. The examination and inspection must include immediate access to the electronic dabber and unlimited inspection of all parts, equipment, and associated systems.
(C) A player may exchange a defective electronic dabber for another provided a disinterested player verifies that the electronic dabber is not functioning. A disinterested player also shall verify that no numbers called for the game in progress have been keyed into the replacement electronic dabber before the exchange.
(D) Before a player uses an electronic dabber, he must purchase an electronic dabber bingo ticket from the house which entitles the player to mark his cards electronically rather than using paper cards and marking them manually.
(E) The electronic dabber ticket as defined in Section 12-21-3920(22) is perforated and allows both the player and the house to retain a copy. The ticket must be sold at face value. The cards must be purchased on a bingo voucher only from a distributor licensed in this State.
(F) After completion of each session, the organization shall generate an activity report containing the number of electronic dabbers used in the session along with the house receipts for each electronic dabber bingo tickets sold. This report must be printed and maintained with the daily reports of the bingo session held."
S. Notwithstanding any other effective date in this act, this section takes effect October 1, 2002. /
Renumber sections to conform.
Amend totals and title to conform.
ROBERT W. HARRELL, JR. for Committee.
TO AMEND SECTIONS 4-10-330, AS AMENDED, 4-10-340, AND 4-10-360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE BALLOT QUESTION AND REVENUE USES, TAX IMPOSITION AND TERMINATION, AND REVENUE DISTRIBUTION UNDER THE CAPITAL PROJECTS SALES TAX ACT, SO AS TO SPECIFICALLY AUTHORIZE THE TAX REVENUE TO BE USED TO PAY DEBT SERVICE ON BONDS ISSUED TO FUND THE APPROVED PROJECTS, TO PROVIDE THAT THE DEPARTMENT OF REVENUE SHALL COLLECT THE TAX THROUGH THE QUARTER IN WHICH THE COUNTY CERTIFIES THAT NO BONDS REMAIN OUTSTANDING, TO PROVIDE THAT THE REFERENDUM QUESTION APPROVING A PROJECT MAY BE REVISED TO INCLUDE THE PRINCIPAL AMOUNT OF THE BONDS TO BE ISSUED FOR THE PROJECT WITH THE SOURCE TO PAY THE BONDS IF THE SALES TAX REVENUE IS INSUFFICIENT, TO PROVIDE THAT A QUESTION SO REVISED CONSTITUTES AN AUTHORIZATION TO ISSUE THE BONDS, TO PROVIDE ADDITIONAL REPORTING REQUIREMENTS ON THE USES OF QUARTERLY DISTRIBUTIONS OF THESE TAX REVENUES, AND TO PROVIDE FOR THE USE OF THESE REVENUES FOR THE REPAYMENT OF BONDS WHEN THE REQUIRED REFERENDUM AND REFERENDUM APPROVAL OCCURRED BEFORE THE EFFECTIVE DATE OF THIS ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. Section 4-10-330(A)(3) of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"(3)(a) If the county proposes to issue bonds to provide for the payment of any costs of the projects, the maximum amount of bonds to be issued, whether the sales tax proceeds are to be pledged to the payment of the bonds and, if other sources of funds are to be used for the projects, specifying the other sources;
(b) the maximum cost of the project or facilities funded from proceeds of the tax and the maximum amount of net proceeds to be raised by the tax, or portion of the project or portion of the facilities, to be funded from proceeds of the tax or bonds issued as provided in this article and the maximum amount of net proceeds expected to be used to pay the cost or debt service on the bonds, as the case may be; and"
B. Section 4-10-330(C) of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"(C) Upon receipt of the ordinance, the county election commission must shall conduct a referendum on the question of imposing the sales and use tax in the area of the county that is to be subject to the tax. If the ordinance is received prior to October 1, 1997, a referendum for this purpose may be held on Tuesday, November 4, 1997; however, if the ordinance is received on October 1, 1997, or thereafter, a A referendum for this purpose must be held at the time of the general election. Two weeks before the referendum the election commission must shall publish in a newspaper of general circulation the question that is to appear on the ballot, with the list of projects and the cost of the projects. If the proposed question includes the use of sales taxes to defray debt service on bonds issued to pay the costs of any project, the notice must include a statement indicating that principal amount of the bonds proposed to be issued for the purpose and, if the issuance of the bonds is to be approved as part of the referendum, stating that the referendum includes the authorization of the issuance of bonds in that amount. This notice is in lieu of any other notice otherwise required by law."
C. Section 4-10-330(D) of the 1976 Code, as added by Act 138 of 1997, is amended by adding a paragraph at the end to read:
"If the referendum includes the issuance of bonds, the question must be revised to include the principal amount of bonds proposed to be authorized by the referendum and the sources of payment of the bonds if the sales tax approved in the referendum is inadequate for the payment of the bonds."
SECTION 2. Section 4-10-340(B)(2) of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"(2) the end of the calendar month during which the Department of Revenue determines that the tax has raised revenues sufficient to provide the net proceeds equal to or greater than the amount specified in the referendum question the end of the calendar quarter during which the Department of Revenue receives a certificate under Section 4-10-360 indicating that no more bonds approved in the referendum remain outstanding that are payable from the sales tax and that all the amount of the costs of the projects approved in the referendum will have been paid upon application of the net proceeds during this quarter."
SECTION 3. Section 4-10-360 of the 1976 Code, as amended by Act 93 of 1999, is further amended to read:
"Section 4-10-360. The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any 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 quarterly 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 may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations. However, allocations made as a result of city or county code errors must be corrected prospectively. Within thirty days of the receipt of any quarterly payment, the county treasurer or the county administrator shall certify to the Department of Revenue amounts of net proceeds applied to the costs of each project and the amount of project costs remaining to be paid and, if bonds have been issued that were approved in the referendum, a schedule of payments remaining due on the bonds that are payable from the net proceeds of the sales tax authorized in the referendum."
SECTION 4. This act takes effect upon approval by the Governor and applies with respect to referenda held on or after that date. A county holding a referendum and adopting an ordinance pursuant to Article 3, Chapter 10, Title 4 of the 1976 Code, before the effective date of this act in which the ordinance provides that the proceeds of the sales tax would be used to repay bonds issued to fund project costs may continue to collect the tax and apply the revenue to the repayment of the bonds while any of these bonds remain outstanding, but in no event may the tax be collected for any period longer than the maximum term of the tax provided in the referendum.
This web page was last updated on Tuesday, December 8, 2009 at 11:11 A.M.