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A426, R430, H4758
Sponsors: Rep. G. Brown
Document Path: l:\council\bills\bbm\9306htc06.doc
Companion/Similar bill(s): 4657
Introduced in the House on March 7, 2006
Introduced in the Senate on March 9, 2006
Passed by the General Assembly on May 31, 2006
Governor's Action: June 8, 2006, Signed
Summary: Lee County School District Bond Property Tax Relief Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 3/7/2006 House Introduced, read first time, placed on calendar without reference HJ-4 3/8/2006 House Read second time HJ-10 3/9/2006 House Read third time and sent to Senate HJ-12 3/9/2006 Senate Introduced, read first time, placed on local & uncontested calendar SJ-10 5/25/2006 Senate Read second time SJ-16 5/31/2006 Senate Read third time and enrolled 6/7/2006 Ratified R 430 6/8/2006 Signed By Governor 6/16/2006 Copies available 6/16/2006 Effective date 06/08/06 10/17/2006 Act No. 426
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VERSIONS OF THIS BILL
(A426, R430, H4758)
AN ACT TO ENACT THE "SCHOOL DISTRICT OF LEE COUNTY SCHOOL BOND PROPERTY TAX RELIEF ACT" WHICH AUTHORIZES THE IMPOSITION OF A ONE PERCENT SALES AND USE TAX WITHIN LEE COUNTY FOR NOT MORE THAN FIVE YEARS TO PAY DEBT SERVICE ON OR OTHERWISE DEFRAY THE COST OF CAPITAL IMPROVEMENTS MADE BY THE SCHOOL DISTRICT OF LEE COUNTY, TO PROVIDE THAT THE TAX MAY BE IMPOSED BY ORDINANCE OF THE LEE COUNTY COUNCIL, TO PROVIDE FOR THE IMPOSITION, ADMINISTRATION, COLLECTION, AND ENFORCEMENT OF THIS TAX, AND TO EXEMPT FROM THE TAX FOOD ITEMS WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be cited as the "School District of Lee County School Bond Property Tax Relief Act".
SECTION 2. For purposes of this act:
(1) "Governing body" means the Lee County Council.
(2) "School district" means the School District of Lee County.
Use of revenue
SECTION 3. Subject to the requirements of this act, there may be imposed a one percent sales and use tax within Lee County. The proceeds of the tax must be distributed to the school district as provided in this act. The board of trustees of the school district, 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 and as finally determined by the governing body of the school district, the proceeds must be applied only to defray the cost of capital improvements within the school district, either by (a) paying debt service on general obligation debt issued by the school district or debt service on debt issued by a nonprofit corporation on behalf of the school district or (b) directly paying such costs.
Authorization to impose
SECTION 4. The tax authorized by this act may be imposed by ordinance of the governing body. The tax may not be imposed for more than five years.
Imposition and termination dates
SECTION 5. (A) The tax must be imposed beginning upon the first day of the third full month following the filing of the imposition ordinance with the South Carolina Department of Revenue.
(B) The tax terminates upon the earlier of:
(1) the final day of the maximum time specified in the ordinance for the imposition; or
(2) sixty days following the filing with the Department of Revenue of a certified copy of an ordinance of the governing body terminating the tax.
Administration of tax
SECTION 6. (A) The tax imposed pursuant to this act must be administered and collected by the South Carolina Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe the amounts that 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 Lee 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 that 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 imposed pursuant to this act in Lee 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.
Distribution of revenue
SECTION 7. (A) The revenues of the sales and use tax collected pursuant to 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 South Carolina 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 Lee County Treasurer for the benefit of the school district. 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 Lee County Treasurer and thereafter by the Lee County Treasurer to the school district for the purposes provided in this act.
(C) Except as provided in Section 8 of this act, withdrawals by the school district of tax proceeds from the Lee County Treasurer must be made in the same manner as are funds appropriated to the school district by the State. Pending these withdrawals, taxes must be deposited in an account for the 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. The school district shall maintain records that demonstrate that tax proceeds are spent only for the purposes as approved by the governing body and in accordance with this act.
Debt service payments
SECTION 8. If the school district elects that all or a portion of the share of the proceeds of the sales and use tax imposed and collected may be applied to the payment of debt service on general obligation debt issued by the school district or debt service on debt issued by a nonprofit corporation on behalf of the school district, then the school district shall notify the Lee County Treasurer in writing no later than July first of that fiscal year of its election and shall specify in writing the amount of sales and use taxes to be applied to such debt service. The amount specified must not exceed the amount of sales and use tax proceeds held by the Lee 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 the governing body of its election under this section, the Lee County Treasurer shall certify to the Lee County Auditor by August first of that fiscal year the amount of sales and use taxes then held by the Lee County Treasurer for the benefit of the school district and designated by the governing body for application to such debt service payments. The Lee 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 Lee County Treasurer and designated by the governing body for that purpose. This amount of sales and use taxes thereafter must not be released to the school district but must be held by the Lee County Treasurer to pay debt service on general obligation bonds. However, any sales and use taxes held by the Lee County Treasurer in excess of the amounts designated by the governing body for payment of debt service on general obligation bonds in the eighteen months following July first of the fiscal year must be expended as directed by the governing body in accordance with this act. Any investment earnings derived from the sales and use tax must be expended as directed by the governing body in accordance with this act.
Data provided, penalties
SECTION 9. The South Carolina Department of Revenue, the State Department of Education, and the Lee County Auditor shall furnish data to the State Treasurer, the county treasurer, and to the governing body for the purpose of calculating distributions and estimating revenues. The information that must be supplied to the governing body 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.
SECTION 10. This act takes effect upon approval by the Governor.
Ratified the 7th day of June, 2006.
Approved the 8th day of June, 2006.
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