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HOUSE AMENDMENTS AMENDED
May 28, 2002
S. 887
Introduced by Senators Hayes, Ryberg, Gregory, Hutto, Matthews, Short and Moore
S. Printed 5/28/02--S.
Read the first time February 12, 2002.
TO AMEND SECTIONS 4-10-320, 4-10-330, AND 4-10-340, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE COMMISSION CREATED BY THE GOVERNING BODY OF A COUNTY FOR THE IMPLEMENTATION OF THE CAPITAL PROJECTS SALES TAX ACT, THE REFERENDUM REQUIRED BEFORE THE TAX MAY BE IMPOSED, AND THE DATE THE TAX IS IMPOSED AND TERMINATES, SO AS TO PROVIDE THAT THE COMMISSION SHALL RECOMMEND THE WORDING OF THE REFERENDUM QUESTION TO THE GOVERNING BODY OF THE COUNTY WHICH MAY ALTER THIS RECOMMENDED WORDING ONLY BY A TWO-THIRDS VOTE AND PROVIDE WHAT CONSTITUTES A TWO-THIRDS VOTE, TO PROVIDE FOR A REVISED DATE FOR THE REFERENDUM IN CASES OF A SUBSEQUENT IMPOSITION OF THE TAX AND DELETE OBSOLETE LANGUAGE, TO PROVIDE FOR THE CONTINUATION OF THE TAX WITHOUT INTERRUPTION IN A SUBSEQUENT IMPOSITION, AND TO REVISE THE FACTORS FOR DETERMINING THE TERMINATION OF THE TAX.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. 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 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 The referendum for this purpose must be held at the time of the general election unless the vote is to reimpose a tax in existence at the time of such vote, in which case the referendum may be held on a general election day or at a time the governing body of the county and the Department of Revenue determine necessary to permit the tax to be reinstated and continue without interruption. The choice of election times rests with the governing body of the county. 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."
SECTION 2. Section 4-10-340 of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"Section 4-10-340. (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 reimposition of an existing sales and use tax imposed pursuant to this article is approved in the referendum, the new tax is imposed immediately following the termination of the earlier imposed tax. 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 six weeks after the date the Department of Revenue formally notifies the governing body of the county that the department has determined that the tax has raised revenues sufficient to provide the net proceeds equal to, or but in no case 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 governmental entities receiving the proceeds of the tax, in the proportion which they received the net proceeds of the tax while it was imposed."
SECTION 3. 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."
D. 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."
E. 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."
F. Notwithstanding the general effective date of this act, this section 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 section 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.
SECTION 4. This act takes effect upon approval by the Governor.
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