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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 TO CHAPTER 36 OF TITLE 12 SO AS TO IMPOSE AN ADDITIONAL STATE SALES, USE, AND CASUAL EXCISE TAX EQUAL TO THREE PERCENT OF AMOUNTS SUBJECT TO THESE TAXES; TO AMEND SECTION 12-36-910, AS AMENDED, BY PROVIDING A SEPARATE STATE SALES AND USE TAX RATE EQUAL TO TWO PERCENT ON UNPREPARED FOOD WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS; BY ADDING SECTION 11-11-155 ESTABLISHING THE OPERATING TAX MILLAGE EXEMPTION TRUST FUND IN THE STATE TREASURY TO RECEIVE THE REVENUES OF THE ADDITIONAL THREE PERCENT STATE SALES TAX AND BY ADDING SECTION 12-37-253 SO AS TO EXEMPT ALL FAIR MARKET VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY REMAINING NOT ALREADY EXEMPTED FROM PROPERTY TAX FROM ALL PROPERTY TAX IMPOSED FOR OPERATING PURPOSES, TO EXEMPT FIFTY PERCENT OF THE FAIR MARKET VALUE OF COMMERCIAL REAL PROPERTY FROM PROPERTY TAXES IMPOSED FOR OPERATING PURPOSES, TO PROVIDE FOR THE REIMBURSEMENT OF POLITICAL SUBDIVISIONS OF THE STATE AND SCHOOL DISTRICT FROM THE OPERATING TAX MILLAGE EXEMPTION TRUST FUND FOR THE TAXES NOT COLLECTED BECAUSE OF THE EXEMPTIONS ADDED BY THIS SECTION , TO PROVIDE THAT ASSESSED VALUE OF PROPERTY EXEMPTED FROM TAX BY THIS SECTION IS CONSIDERED TAXABLE FOR PURPOSES OF COMPUTING BONDED INDEBTEDNESS AND THE INDEX OF TAXPAYING ABILITY, AND TO PROVIDE THAT PROPERTY TAX CREDITS ATTRIBUTABLE TO THE LOCAL OPTION SALES TAX IN EXCESS OF MUNICIPAL AND COUNTY PROPERTY TAX DUE ON COMMERCIAL REAL PROPERTY IS CONSIDERED A DISTRIBUTION TO THE MUNICIPALITY OR COUNTY AS APPLICABLE FROM THE COUNTY/MUNICIPAL REVENUE FUND.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Section 12-36-1110. An additional sales, use, and casual excise tax equal to three percent is imposed on amounts taxable pursuant to this chapter, but this tax does not apply to amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients."
SECTION 2. Section 12-36-910 of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding a new subsection at the end to read:
"(D)(1) Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, the sales and use tax on the gross proceeds of sales or sales price of unprepared food which lawfully can be purchased with United States Department of Agriculture food coupons is two percent.
(2) Notwithstanding any other provision of law providing for the use of sales and use tax revenues, an amount equal to twenty percent of the revenue of the sales and use tax imposed pursuant to this subsection; as estimated by the Board of Economic Advisors, must be credited to the Education Improvement Act Fund as provided in Section 59-21-1010(B)."
SECTION 3. Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-155. (A) For each fiscal year, the revenue from the tax imposed pursuant to Section 12-36-1110 is automatically credited to a fund separate and distinct from the state general fund known as the 'Operating Tax Millage Exemption Trust Fund' (the Operating Millage Fund). The Board of Economic Advisors shall account for the Operating Millage Fund revenue separately from general fund revenues in reports to the Governor and the General Assembly. No portion of these revenues is credited to the Education Improvement Act (EIA) Fund.
(B) An unexpended balance in the Operating Millage Fund at the end of a fiscal year must remain in the Operating Millage Fund.
(C) Earnings on the Operating Millage Fund must be credited to the Operating Millage Fund.
(D) Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the Operating Millage Fund."
SECTION 4. Chapter 37 of Title 12 of the 1976 Code is amended by adding:
"Section 12-37-253. (A) After the exemption allowed pursuant to Section 12-37-250 and Section 12-37-251, in the case of real property classified pursuant to Section 12-43-220(c), any remaining fair market value otherwise subject to tax is exempt from all taxes except taxes imposed:
(1) for bonded indebtedness for capital construction; and
(2) to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction.
(B) Fifty percent of the fair market value of real property classified pursuant to Section 12-43-220(e) is exempt from all taxes, except taxes imposed:
(1) for bonded indebtedness for capital construction; and
(2) to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction.
(C) Political subdivisions and school districts must be reimbursed monthly from revenues credited to the Operating Millage Fund for a fiscal year for the taxes not collected because of the exemptions allowed by this section. Reimbursements must be paid in the manner that the Comptroller General determines appropriate, but such reimbursements must be paid not less than monthly.
(D) Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3).
(E) The exemption provided by this section applies for property taxes imposed by any property taxing entity if the revenues of taxes imposed by the entity are used directly or indirectly for school operations.
(F) In a county area in which is imposed the local option sales tax (LOST) pursuant to Article 1, Chapter 10 of Title 4 on or after July 1, 2005, where the credits allowed pursuant to that article exceed the property tax to which the credit applies, then the excess credit is deemed a distribution from the LOST County/Municipal Revenue Fund."
SECTION 5. This act takes effect July 1, 2005, and the exemptions allowed pursuant to Section 12-37-253 as added by this act apply for property tax years beginning after 2004.
This web page was last updated on Tuesday, June 23, 2009 at 2:51 P.M.