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Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
February 6, 2008
S. 951
S. Printed 2/6/08--S.
Read the first time January 8, 2008.
To whom was referred a Bill (S. 951) to amend Section 12-33-245, as amended, Code of Laws of South Carolina, 1976, relating to the five percent excise tax on the sale of alcoholic, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, SR. for Committee.
REVENUE IMPACT 1/
This bill would reduce general fund revenues by $107,541 in FY 2007-08.
Explanation
This bill would change the current allocation of the 5% excise tax on alcoholic drinks so that the state and local entities that receive the tax allocations would receive tax revenue collected during the fiscal year. This bill would speed up allocations from the 25% of the 5% excise tax per drink revenue allocated pursuant to the State Aid to Local Subdivisions Act to the receiving entities by eliminating the current one quarter delay for revenues received by the state in the current quarter and then allocated the next quarter through the State Aid to Local Subdivisions Act. In effect this would increase the base year, FY 2004-05, by $107,541 for all future calculations of the hold harmless provision beginning in FY 2007-08. Based on revenue received through the first six months of the fiscal year it appears that revenues allocated to the state and local agencies will fall below the $7,026,936 FY 2004-05 base year minimum required distribution. Therefore, the mandated increase in the hold harmless provision would reduce general fund revenues by $107,541 in FY 2007-08.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO AMEND SECTION 12-33-245, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FIVE PERCENT EXCISE TAX ON THE SALE OF ALCOHOLIC LIQUORS FOR ON-PREMISES CONSUMPTION AND THE DISTRIBUTION OF THE REVENUES OF THE TAX, SO AS TO PROVIDE THAT THE MINIMUM DISTRIBUTION TO STATE AGENCIES, COUNTIES, AND LOCAL ENTITIES MUST BE BASED ON REVENUES RECEIVED IN FISCAL YEAR 2004-2005, RATHER THAN REVENUES ALLOCATED.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-33-245(C) of the 1976 Code, as last amended by Act 36 of 2007, is further amended to read:
"(C) Those state agencies and local entities, including counties, which are allocated and receive by law received minibottle tax revenues in fiscal year 2004-2005 for education, prevention, and other purposes, shall receive in a fiscal year at least the same amount of revenues from the new excise tax revenues beginning with the first full fiscal year after sales of liquor by the drink are authorized as they did received from minibottle tax revenues during fiscal year 2004-2005. If these state agencies and local entities do not, the difference must be made up from the general fund. Payments will be distributed in four equal payments based on the total payments remitted to these state agencies and entities in fiscal year 2004-2005, including funds allocated received pursuant to Section 6-27-40(B). At the end of each fiscal year, the State Treasurer, in consultation with the Department of Revenue, shall determine whether the tax collected pursuant to these sections exceed the total collection and remittance for fiscal year 2004-2005. If the tax collected exceeds the amount collected and allocated in fiscal year 2004-2005, a distribution of the difference will be remitted to the county treasurers within thirty days after the close of each fiscal year."
SECTION 2. This act takes effect upon approval by the Governor and first applies for excise tax revenues distributed for fiscal year 2007-2008.
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