South Carolina General Assembly
117th Session, 2007-2008

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Bill 1242

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COMMITTEE REPORT

April 8, 2008

S. 1242

Introduced by Senators Leatherman, Cleary, Short and Hayes

S. Printed 4/8/08--S.

Read the first time March 27, 2008.

            

THE COMMITTEE ON FINANCE

To whom was referred a Bill (S. 1242) to establish the South Carolina Taxation Realignment Commission, to provide for the commission's membership, powers, duties, and responsibilities, to provide, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

HUGH K. LEATHERMAN, SR. for Committee.

            

A BILL

TO ESTABLISH THE SOUTH CAROLINA TAXATION REALIGNMENT COMMISSION, TO PROVIDE FOR THE COMMISSION'S MEMBERSHIP, POWERS, DUTIES, AND RESPONSIBILITIES, TO PROVIDE THAT THE COMMISSION MUST CONDUCT A COMPREHENSIVE STUDY OF THE STATE'S TAX SYSTEM AND SUBMIT A REPORT OF ITS RECOMMENDED CHANGES TO FURTHER THE GOAL OF MAINTAINING AND ENHANCING THE STATE AS AN OPTIMUM COMPETITOR IN THE EFFORT TO ATTRACT BUSINESSES AND INDIVIDUALS TO LOCATE, LIVE, WORK, AND INVEST IN THE STATE, AND TO PROVIDE FOR PROCEDURES GOVERNING THE CONSIDERATION OF LEGISLATION RESULTING FROM THE COMMISSION'S RECOMMENDATIONS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    (A)    There is created the South Carolina Taxation Realignment Commission to be comprised of eleven members appointed as follows:

(1)    one member each appointed by the President Pro Tempore of the Senate, the Senate Finance Committee Chairman, the Senate Majority Leader, and the Senate Minority Leader,

(2)    one member each appointed by the Speaker of the House, the House Ways and Means Committee Chairman, the House Majority Leader, and the House Minority Leader,

(3)    two members appointed by the Governor, one must be an elected member of a county or municipal governing body and one must be an elected member of a school district governing body, both to serve ex officio, and

(4)    the Director of the Department of Revenue, to serve ex officio.

Members of the General Assembly may not be appointed to the commission.

(B)    (1)    The commission must meet as soon as practicable after appointment and organize itself by electing one of its members as chairman and such other officers as the commission may consider necessary. Thereafter, the review committee must meet as necessary to fulfill the duties required by this act at the call of the chairman or by a majority of the members. A quorum consists of six members.

(2)    The commission shall study and propose to the General Assembly changes regarding the assessment of state taxes levied and other revenue raising provisions to fund the operation and responsibilities of state government. The commission's study must be a detailed, comprehensive, and careful evaluation of the State's tax system structure, to include all revenue laws of the State together with all other laws of the State which have a bearing on the study of the revenue laws, with an emphasis on the systematic balance of the State's revenue structure from the standpoint of adequacy, equity, and efficiency and with the goal of maintaining and enhancing the State as an optimum competitor in the effort to attract businesses and individuals to locate, live, work, and invest in the State. The commission shall develop criteria for assessing the effectiveness of current state taxes and revenue raising provisions consistent with the purposes described in this subsection and report the criteria to the General Assembly within six months of the effective date of this act.

(3)    Any recommendations by the commission are limited to changes to state taxes and other revenue raising measures and must not include changes to taxes levied by any local taxing entity. The commission shall prepare a report of its recommendations, including proposed legislation, and submit the report to the General Assembly by January 1, 2010. Upon submission of the report required by this subsection, the commission shall terminate.

(C)    The commission may:

(1)    hold public hearings and receive testimony from any witness who may assist the commission in the performance of its duties,

(2)    utilize the services of any state agency or political subdivision, and upon request, any state agency or political subdivision shall cooperate fully with the commission and provide the commission with any information the commission deems necessary, and

(3)    adopt rules of procedure the commission considers appropriate.

(C)    The commission may enter into contracts to provide expert analysis and assistance and to conduct any study the commission determines is necessary from funds appropriated by the General Assembly for this purpose.

(D)    A member serves without compensation, but is allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business to be paid by the member's appointing entity. Clerical and professional staff for the commission must be provided by the staffs of the appointing authorities.

(E)    Any legislation proposed by the commission may be introduced in substantially similar form in either or both houses by one or more of the appointing authorities listed in subsection (A)(1) and (2). An amendment is germane to legislation proposed by the commission only if the amendment seeks to make a technical change necessary to effectuate the purpose of the particular provision to be amended. An amendment that seeks to add, delete, or substantively change a tax or other revenue raising measure included in legislation proposed by the commission may only be adopted or concurred in by a two-thirds majority of those present and voting in each respective house.

SECTION    2.    This act takes effect upon approval by the Governor.

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