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H. 4260
STATUS INFORMATION
General Bill
Sponsors: Reps. Young, Mulvaney, Chellis and Cotty
Document Path: l:\council\bills\gjk\20396ssp07.doc
Introduced in the House on June 7, 2007
Currently residing in the House Committee on Ways and Means
Summary: Special district fees
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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6/7/2007 House Introduced and read first time HJ-134
6/7/2007 House Referred to Committee on Ways and Means HJ-134
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 4-35-42 SO AS TO ALLOW A COUNTY TO COLLECT A SPECIAL DISTRICT FEE AND TO PROVIDE FOR THE METHOD AND USE OF THE FEE; TO AMEND SECTION 4-35-30, AS AMENDED, RELATING TO DEFINITIONS, SO AS TO REVISE CERTAIN DEFINITIONS AND PROVIDE A DEFINITION FOR "SERVICE AREA" AND "SPECIAL DISTRICT FEE"; TO AMEND SECTIONS 4-35-50 AND 4-35-80, BOTH AS AMENDED, BOTH RELATING TO THE ESTABLISHMENT OF IMPROVEMENT DISTRICTS, SO AS TO ALLOW A COUNTY TO CREATE AN IMPROVEMENT DISTRICT COMPRISED OF NONCONTIGUOUS PARCELS OF LAND AND TO USE ASSESSMENTS TO FUND IMPROVEMENTS LOCATED OUTSIDE THE BOUNDARIES OF AN IMPROVEMENT DISTRICT AND THE CONSTRUCTION AND IMPROVEMENT OF SCHOOLS; BY ADDING SECTION 5-37-32 SO AS TO ALLOW A MUNICIPALITY TO COLLECT A SPECIAL DISTRICT FEE AND TO PROVIDE FOR THE METHOD AND USE OF THE FEE; TO AMEND SECTION 5-37-20, RELATING TO DEFINITIONS, SO AS TO REVISE CERTAIN DEFINITIONS AND PROVIDE A DEFINITION FOR "SERVICE AREA" AND "SPECIAL DISTRICT FEE"; AND TO AMEND SECTION 5-37-40, AS AMENDED, RELATING TO THE ESTABLISHMENT OF IMPROVEMENT DISTRICTS, SO AS TO ALLOW A MUNICIPALITY TO CREATE AN IMPROVEMENT DISTRICT COMPRISED OF NONCONTIGUOUS PARCELS OF LAND AND TO USE ASSESSMENTS TO FUND IMPROVEMENTS LOCATED OUTSIDE THE BOUNDARIES OF AN IMPROVEMENT DISTRICT AND THE CONSTRUCTION AND IMPROVEMENT OF SCHOOLS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 35, Title 4 of the 1976 Code is amended by adding:
"Section 4-35-42. (A) Upon and concurrent with the final issuance of any special district bonds or revenue bonds authorized pursuant to Section 4-35-40, the county is allowed to collect a special district fee equal to, but not to exceed, four percent of the amount of the bond.
(B) The proceeds generated by a special district fee must be maintained by the county in a separate and distinct account in the county treasury. However, the county may deposit one or more special district fees in that account.
(C) Special district fees must be used by the county for capital improvements that benefit those improvement districts that generated the special district fees or that benefit both the districts and the entire county collectively.
SECTION 2. Section 4-35-30 of the 1976 Code, as last amended by Act 389 of 1998, is further amended to read:
"Section 4-35-30. As used in this chapter:
(1) 'Assessment' means an assessment voluntarily agreed upon by a majority of the owners of real property within an improvement district and representing at least sixty-six percent of the assessed value of all real property within the improvement district. The assessment must be made upon all real property located within the district, other than property constituting improvements within the meaning of this section, and based upon assessed value, front footage, area, per parcel basis, the value of improvements to be constructed within the district, or a combination of them, as the basis is determined by the governing body of the county. An assessment imposed upon real property with the consent of the owner remains valid and enforceable in accordance with the provisions of this chapter even if there is a later subdivision and transfer of the property or a part of it. An improvement plan may provide for a change in the basis of assessment upon the subdivision and transfer of real property.
(2) 'Improvements' means recreational facilities, pedestrian facilities, sidewalks, storm drains, or water course facilities or improvements, the relocation, construction, widening, and paving of roads and streets, any building or other facilities for public use, any public works eligible for financing pursuant to Section 6-21-50, and may include the acquisition of necessary easements and land and all things incidental to the provision of the above. Improvements also include the construction of new schools and the renovation and expansion of existing schools. These improvements may be designated by the governing body as public works eligible for revenue bond financing pursuant to Section 6-21-50, and the improvements, taken in the aggregate, may be designated by the governing body as a 'system' of related projects within the meaning of Section 6-21-15. The governing body, after investigation and study, may determine that improvements located outside the boundaries of an improvement district confer a benefit upon property inside an improvement district or are necessary to make improvements within the district for the benefit of property inside the district.
(3) 'Improvement district' means an area within the county designated by the governing body pursuant to the provisions of this chapter and within which an improvement plan is to be accomplished. An improvement district may be comprised of noncontiguous parcels of land within a county if the county determines that the parcels are located within the same service area.
(4) 'Improvement plan' means the overall plan by which the governing body proposes to effect improvements within an improvement district to preserve property values, prevent deterioration, and preserve the tax base.
(5) 'Owner' means a person twenty-one years of age or older, or the proper legal representative for a person younger than twenty-one years of age, and a firm or corporation, who or which owns legal title to a present possessory interest in real estate equal to a life estate or greater (expressly excluding leaseholds, easements, equitable interests, inchoate rights, and future interest) and who owns, at the date of the petition or written consent, at least an undivided one-tenth interest in a single tract and whose name appears on the county tax records as an owner of real estate, and a duly organized group whose tax interest is at least equal to a one-tenth interest in a single tract. If a firm or person has a leasehold interest requiring it or him to pay all county taxes, the agreement is not applicable to charges of the assessment of the district as only the owner has the right to petition on the assessment charge for the improvement district.
(6) 'Governing body' means the governing body of a county.
(7) 'Service area' means the physical area within the county which the county determines will be served by the improvements.
(8) 'Special district fee' means the amount the county is entitled to collect pursuant to Section 4-35-42."
SECTION 3. Section 4-35-50 of the 1976 Code, as last amended by Act 389 of 1998, is further amended to read:
"Section 4-35-50. (A) If the governing body finds that (1) improvements may be beneficial within a designated improvement district, (2) the improvements may preserve property values within the district, (3) in the absence of the improvements, property values within the area would likely depreciate, (4) it would be fair and equitable to finance all or part of the cost of the improvements by an assessment upon the real property located within the district, and (5) written consent for the creation of the improvement district from a majority of the owners of real property within the district and having an aggregate assessed value in excess of sixty-six percent of the assessed value of all real property within the improvement district has been obtained all parcels that makeup the improvement district are located within the same service area, the governing body may establish the area as an improvement district and implement and finance, in whole or in part, an improvement plan in for the district in accordance with the provisions of this chapter.
(B) If an assessment is imposed for the purpose of funding improvements involving the construction of new schools or the renovation and expansion of existing schools, the governing body must determine that the improvements provide a greater benefit to the improvement district paying the assessment than the general benefit provided to the public.
(C) Instead of items (A)(2) and (A)(3), the governing body may find that the improvements are likely significantly to improve property values within the district by promoting the development of the property."
SECTION 4. Section 4-35-80 of the 1976 Code, as last amended by Act 389 of 1998, is further amended to read:
"Section 4-35-80. The governing body may provide by the resolution for the payment of the cost of the improvements and facilities to be constructed within the improvement district pursuant to the improvement plan by assessments on the property as defined in Section 4-35-30, by the issuance of special district bonds, revenue bonds, or general obligation bonds of the county, from general revenues from a source not restricted from that use by law, or from a combination of the financing sources as may be provided in the improvement plan. The governing body may use the provisions of Chapter 21, Title 6 to issue revenue bonds, and any assessments authorized by this chapter are revenues of the system for that purpose."
SECTION 5. Chapter 37, Title 5 of the 1976 Code is amended by adding:
"Section 5-37-32. (A) Upon and concurrent with the final issuance of any special district bonds or revenue bonds authorized pursuant to Section 5-37-30, the municipality is allowed to collect a special district fee equal to, but not to exceed, four percent of the amount of the bond.
(B) The proceeds generated by a special district fee must be maintained by the municipality in a separate and distinct account in the municipal treasury. However, the municipality may deposit one or more special district fees in that account.
(C) Special district fees must be used by the municipality for capital improvements that benefit those improvement districts that generated the special district fees or that benefit both the districts and the entire municipality collectively."
SECTION 6. Section 5-37-20 of the 1976 Code is amended to read:
"Section 5-37-20. As used in this chapter, the following terms have the following meanings:
(1) 'Assessment' means a charge against the real property of an owner within an improvement district created pursuant to this chapter which may be based on assessed value, front footage, area, per parcel basis, the value of improvements to be constructed within the district, or any combination of them, as the basis is determined by the governing body of the municipality. In the event the governing body of a municipality determines that another basis for assessment is appropriate or a more equitable allocation of costs among property owners is appropriate, it may substitute such method for any of the foregoing. An assessment imposed upon real property under this chapter remains valid and enforceable in accordance with the provisions of this chapter even if there is a later subdivision and transfer of the property or a part of it. An improvement plan may provide for a change in the basis of assessment upon the subdivision and transfer of real property or upon such other event as the governing body of a municipality considers appropriate.
(2) 'Improvements' include open or covered malls, parkways, parks and playgrounds, recreation facilities, athletic facilities, pedestrian facilities, parking facilities, parking garages, and underground parking facilities, and facade redevelopment, the widening and dredging of existing channels, canals, and waterways used specifically for recreational or other purposes, the relocation, construction, widening, and paving of streets, roads, and bridges, including demolition of them, underground utilities, all activities authorized by Chapter 1 of Title 31 (State Housing Law), any building or other facilities for public use, any public works eligible for financing under the provisions of Section 6-21-50, services or functions which a municipality in accordance with state law may by law provide, and all things incidental to the improvements, including planning, engineering, administration, managing, promotion, marketing, and acquisition of necessary easements and land, and may include facilities for lease or use by a private person, firm, or corporation. Improvements also include the construction of new schools and the renovation and expansion of existing schools. However, improvements as defined in this chapter must comply with all applicable state and federal laws and regulations governing these activities. Any such improvements may be designated by the governing body as public works eligible for revenue bond financing pursuant to Section 6-21-50, and such these improvements, taken in the aggregate, may be designated by the governing body as a 'system' of related projects within the meaning of Section 6-21-40. The governing body of a municipality, after due investigation and study, may determine that improvements located outside the boundaries of an improvement district confer a benefit upon property inside an improvement district or are necessary to make improvements within the improvement district effective for the benefit of property inside the improvement district.
(3) 'Improvement district' means any area within the municipality designated by the governing body pursuant to the provisions of this chapter and within which an improvement plan is to be accomplished. No special improvement district may include the grounds of the State House in the City of Columbia. An improvement district may be comprised of noncontiguous parcels of land within a municipality if the municipality determines that the parcels are located within the same service area.
(4) 'Improvement plan' means an overall plan by which the governing body proposes to effect improvements within an improvement district to preserve property values, prevent deterioration of urban areas, and preserve the tax base of the municipality, and includes an overall plan by which the governing body proposes to effect improvements within an improvement district in order to encourage and promote private or public development within the improvement district.
(5) 'Governing body' means the municipal council or other governing body in which the general governing powers of the municipality are vested.
(6)(a) 'Owner' means any person twenty-one years of age, or older, or the proper legal representative for any person younger than twenty-one years of age, and any firm or corporation, who or which owns legal title to a present possessory interest in real estate equal to a life estate or greater (expressly excluding leaseholds, easements, equitable interests, inchoate rights, dower rights, and future interest) and who owns, at the date of the petition or written consent, at least an undivided one-tenth interest in a single tract and whose name appears on the county tax records as an owner of real estate, and any duly organized group whose total interest is at least equal to a one-tenth interest in a single tract.
(b) It is provided, however, that, if any firm or person has a leasehold interest requiring it or him to pay all municipal taxes, such the agreement shall not be applicable to charges of the assessment of the district as only the owner has the right to petition on the assessment charge for the improvement district.
(7) 'Service area' means the physical area within the municipality which the municipality determines will be served by the improvements.
(8) 'Special district fee' means the amount the municipality is entitled to collect pursuant to Section 5-37-32."
SECTION 7. Section 5-37-40 of the 1976 Code, as last amended by Act 109 of 2005, is further amended to read:
"Section 5-37-40. (A) If the governing body finds that:
(1) improvements would be beneficial within to a designated improvement district;
(2) the improvements would preserve or increase property values within the district;
(3) in the absence of the improvements, property values within the area would be likely to depreciate, or that the proposed improvements would be likely to encourage development in the improvement district;
(4) the general welfare and tax base of the city would be maintained or likely improved by creation of an improvement district in the city; and
(5) it would be fair and equitable to finance all or part of the cost of the improvements by an assessment upon the real property within the district, the governing body may establish the area as an improvement district and implement and finance, in whole or in part, an improvement plan in the district in accordance with the provisions of this chapter. However, owner- occupied residential property which is taxed or will be taxed under Section 12-43-220(c) must not be included within an improvement district unless the owner at the time the improvement district is created gives the governing body written permission to include the property within the improvement district.; and
(6) all parcels that make up the improvement district are located within the same service area.
(B) If an assessment is imposed for the purpose of funding improvements involving the construction of new schools or the renovation and expansion of existing schools, the governing body must determine that the improvements provide a greater benefit to the improvement district paying the assessment than the general benefit provided to the public."
(C) If an improvement district is located in a redevelopment project area created under Title 31, Chapter 6, the improvement district being created under the provisions of this chapter must be considered to satisfy items (1) through (5) of subsection (A). The ordinance creating an improvement district may be adopted by a majority of council after a public hearing at which the plan is presented, including the proposed basis and amount of assessment, or upon written petition signed by a majority in number of the owners of real property within the district which is not exempt from ad valorem taxation as provided by law. However, owner-occupied residential property which is taxed or will be taxed under Section 12-43-220(c) must not be included within an improvement district unless the owner at the time the improvement district is created gives the governing body written permission to include the property within the improvement district."
SECTION 8. This act takes effect upon approval by the Governor.
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