A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 6-11-347 SO AS TO PROVIDE THAT A SPECIAL PURPOSE DISTRICT SHALL ADJUST ITS MILLAGE RATE TO REFLECT THE REMOVAL OF SERVICE RESPONSIBILITIES FOLLOWING THE CONSOLIDATION OF SUCH SERVICES.

 

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

 

SECTION 1.  Article 1, Chapter 11, Title 6 of the S.C. Code is amended by adding:

 

    Section 6-11-347.  (A) A special purpose district that consolidates or removes services is required to reduce its current millage rate for property tax purposes by the following fiscal year to reflect the removal of its responsibility for services.

    (B) The South Carolina Revenue and Fiscal Affairs Office, in consultation with the appropriate county, shall calculate the appropriate adjusted millage rate based on:

       (1) historical service expenditures as a proportion of the district's total budget;

       (2) current service responsibilities; and

       (3) revenue needs for continued fire and police protection services.

    (C) The adjusted millage rate must be submitted by the district to the appropriate county auditor no later than June first for implementation in the upcoming property tax cycle.

    (D)(1) The South Carolina State Auditor shall conduct an annual review for a three-year period of any special purpose district that reduces its millage rate in compliance with this section.

       (2) If the district fails to reduce its millage as required, the State Treasurer shall withhold ten percent of the district's state-distributed revenue until compliance is verified.

 

SECTION 2.  This act takes effect upon approval by the Governor and first applies to tax years after 2025.

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