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Indicates Matter Stricken
Indicates New Matter
March 27, 2001
S. Printed 3/27/01--S.
Read the first time January 10, 2001.
To whom was referred a Bill (S. 35) to amend the Code of Laws of South Carolina, 1976, by adding Section 12-37-2740 so as to require the Department of Public Safety upon written or electronic notification, 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 striking all after the enacting words and inserting:
/ SECTION 1. Article 21, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-2740. (A) The Department of Public Safety shall suspend the driver's license and vehicle registration of a person who fails to pay personal property tax on a vehicle. The request to suspend must be an electronic notification from the county treasurer of the county where the tax is delinquent. Before the electronic notification is sent to the department, the county treasurer shall notify the delinquent taxpayer of the pending suspension by letter. The letter shall be developed by the county treasurers in conjunction with the department and used uniformly throughout the State. The letter must advise the person of the pending suspension and the steps necessary to prevent the suspension from being entered on the person's driving and registration records. Each county shall allow 30 days for the payment of taxes before the county notifies the department to suspend the person's driver's license and vehicle registration.
(B) Notwithstanding the provisions of Section 56-1-460, a charge of driving under suspension when the suspension is solely for failure to pay property taxes or the reinstatement fee required for the property tax suspension will not require proof of financial responsibility. Upon conviction:
(1) For a first offense under this section, the penalty shall be a fine not to exceed fifty dollars. A person shall not be subject to a custodial arrest solely for being under suspension pursuant to a first offense of this section.
(2) For a second offense under this section, the penalty is a fine not to exceed two hundred fifty dollars.
(3) For a third or subsequent offense under this section, the penalty shall not exceed the general criminal jurisdiction of a magistrate's court.
(C) Notwithstanding the provisions of subsections (A) and (B) of this section or the provisions of Section 56-1-460, a charge of driving under suspension issued solely as a result of this section must be dismissed if the person provides proof on their court date that the personal property taxes on the vehicle which resulted in the charge being issued have been paid.
(D) Before the reinstatement of a driver's license or vehicle registration suspended due to a violation of this section, a fee of thirty dollars must be paid to the department. The department may retain revenues generated by payment of the reinstatement fees pursuant to this section for use in defraying costs associated with suspension and reinstatement actions pursuant to this section. Fees collected in excess of actual departmental direct costs related to suspension and reinstatement actions pursuant to this section must be deposited to the credit of the General Fund of the State at the end of each fiscal year."
SECTION 2. This act takes effect on October 1, 2001. /
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
EXPLANATION OF IMPACT:
The Department of Public Safety estimates a total fiscal impact to the General Fund of $2,556,796 and 74 new FTE's to implement this legislation. Of that amount, $1,823,968 is recurring and $732, 828 is non-recurring. The 74 new FTE's include six (6.00) Administrative Specialist B positions and sixty-eight (68.00) Field Service Customer Representative positions to process license and registration suspensions, as well as title and registration transfers. Other operating expenses of $732,828 would be needed for workstations, programming, contracts for modifying the DMV computer system, notification mailouts to drivers of suspensions, printing, supplies, and Project Phoenix modifications.
Office of State Budget
This bill is not expected to have an impact on state revenues in FY 2001-02. This bill is expected to have a net positive impact on local government revenues in FY 2001-02 but the amount is not expected to be significant.
This bill requires the Department of Public Safety (DPS) to suspend the driver's license and registration of a vehicle owner upon notification by County Treasurer that personal property tax is delinquent. The bill also adds language to place restrictions on license plate transfers. The prohibition of additional personal property tax on license plate transfers would apply only if the title and vehicle registration is transferred to a new owner. Also, no license plate could be transferred unless the title and registration are also transferred to a new owner.
Based on an analysis by DPS, the additional requirement to transfer the tile and associated suspensions is not expected to have an impact on general fund revenues in FY 2001-02. A BEA survey of county auditors also revealed that final action on suspensions still might not occur until the second delinquency period. Clearly, staff and equipment upgrades at the state and local level are necessary to identify and enforce tax delinquencies. While this bill is expected to eventually have a net positive impact on local government revenue through more timely payment of ad valorem tax, the amount would not be significant in FY 2001-02.
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.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-2740 SO AS TO REQUIRE THE DEPARTMENT OF PUBLIC SAFETY UPON WRITTEN OR ELECTRONIC NOTIFICATION FROM THE COUNTY TREASURER TO SUSPEND THE DRIVER'S LICENSE AND MOTOR VEHICLE REGISTRATION OF PERSONS WHO ARE DELINQUENT IN PAYING PERSONAL PROPERTY TAXES ON A MOTOR VEHICLE; TO AMEND SECTION 12-37-2675, RELATING TO THE PROHIBITION OF ADDITIONAL TAXES WHEN A MOTOR VEHICLE LICENSE PLATE IS TRANSFERRED, SO AS TO PROVIDE THAT THE PROHIBITION APPLIES IF THE TITLE AND REGISTRATION TO THE VEHICLE FROM WHICH THE TAG WAS REMOVED IS TRANSFERRED TO A NEW OWNER; AND TO AMEND SECTION 56-3-1290, RELATING TO THE TRANSFER OF LICENSE PLATES AND THE APPLICABLE FEE, SO AS TO ALLOW A TRANSFER ONLY IF THE TITLE AND REGISTRATION TO THE VEHICLE FROM WHICH THE LICENSE WAS REMOVED IS TRANSFERRED TO A NEW OWNER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 21, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-2740. The Department of Public Safety shall suspend the driver's license and motor vehicle registration of a person upon a written or electronic notification from the county treasurer or municipal clerk treasurer stating that property taxes owed by the person on a motor vehicle have not been paid within the time limit prescribed by this article."
SECTION 2. Section 12-37-2675 of the 1976 Code, as added by Act 417 of 1994, is amended to read:
"Section 12-37-2675. If a license is transferred from one motor vehicle to another, no tax may be levied on the motor vehicle to which the license was transferred until the license expires if the title and registration to the vehicle from which the license was removed is transferred to a new owner."
SECTION 3. Section 56-3-1290 of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read:
"Section 56-3-1290. The department, upon application and the payment of a fee of three dollars, shall transfer the license plate previously assigned to an owner or lessee for one vehicle to another vehicle of the same general type owned or leased by the same person if the title and registration to the vehicle from which the license was removed is transferred to a new owner. Fees paid pursuant to this section must be deposited in the state general fund."
SECTION 4. This act takes effect on the first day of the second month following approval by the Governor.
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