1 Indicates Matter Stricken
2 Indicates New Matter
3
4 COMMITTEE REPORT
5 March 11, 2009
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7 S. 332
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9 Introduced by Senator Leventis
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11 S. Printed 3/11/09--S.
12 Read the first time January 28, 2009.
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14
15 THE COMMITTEE ON FINANCE
16 To whom was referred a Bill (S. 332) to amend Sections
17 6-1-530 and 6-1-730, both as amended, Code of Laws of South
18 Carolina, 1976, relating to uses allowed for the revenue, etc.,
19 respectfully
20 REPORT:
21 That they have duly and carefully considered the same and
22 recommend that the same do pass:
23
24 HUGH K. LEATHERMAN, SR. for Committee.
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27 STATEMENT OF ESTIMATED FISCAL IMPACT
28 REVENUE IMPACT 1/
29 This bill would is not expected to impact general fund revenue
30 in FY2009-10.
31 Explanation
32 This bill would amend Sections 6-1-530 and 6-1-730 to allow
33 counties that collect less than $900,000 in state accommodation
34 taxes to increase tourism-related expenditures from twenty percent
35 to fifty percent of the revenues collected in the previous fiscal year
36 from the local accommodations taxes and the local hospitality
37 taxes. According to the Department of Revenue, six counties
38 collected more than $900,000 in state accommodations taxes in
39 FY2007-08. These include Beaufort, Charleston, Georgetown,
40 Greenville, Horry, and Richland counties. The remaining forty
41 counties collected less than $900,000 in state accommodations
42 taxes in FY2007-08. The Office of Research and Statistics reports
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1 in the “Local Government Finance Report” that counties and
2 municipalities collected $43,014,371 from the local
3 accommodations tax and $127,097,606 from the local hospitality
4 tax in FY2006-07. This bill would allow counties and
5 municipalities to expend up to fifty percent, or $85,055,988, on
6 local tourism-related projects in their communities. Because this
7 bill would allow local authorities to decide how to allocate locally-
8 generated tax revenue, it is not expected to impact state general
9 fund revenue in FY2009-10.
10
11 Approved By:
12 William C. Gillespie
13 Board of Economic Advisors
14
15 1/ This statement meets the requirement of Section 2-7-71 for a state revenue
16 impact by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-
17 85(B) for an estimate of the shift in local property tax incidence by the Office of
18 Economic Research.
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9 A BILL
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11 TO AMEND SECTIONS 6-1-530 AND 6-1-730, BOTH AS
12 AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976,
13 RELATING TO USES ALLOWED FOR THE REVENUE OF
14 THE LOCAL ACCOMMODATIONS AND LOCAL
15 HOSPITALITY TAX, SO AS TO INCREASE FROM TWENTY
16 TO FIFTY PERCENT, IN COUNTIES IN WHICH LESS THAN
17 NINE HUNDRED THOUSAND DOLLARS IN STATE
18 ACCOMMODATIONS TAX IS COLLECTED ANNUALLY,
19 THE AMOUNT OF THE REVENUE OF THE LOCAL TAXES
20 THAT MAY BE USED FOR OPERATIONS AND
21 MAINTENANCE.
22
23 Be it enacted by the General Assembly of the State of South
24 Carolina:
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26 SECTION 1. Section 6-1-530(B)(2) of the 1976 Code, as last
27 amended by Act 314 of 2006, is further amended to read:
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29 “(2) In a county in which less than nine hundred thousand
30 dollars in accommodations taxes is collected annually pursuant to
31 Section 12-36-920, an amount not to exceed twenty fifty percent of
32 the revenue in the preceding fiscal year of the local
33 accommodations tax authorized pursuant to this article may be
34 used for the additional purposes provided in item (1) of this
35 subsection.”
36
37 SECTION 2. Section 6-1-730(B)(2) of the 1976 Code, as last
38 amended by Act 314 of 2006, is further amended to read:
39
40 “(2) In a county in which less than nine hundred thousand
41 dollars in accommodations taxes is collected annually pursuant to
42 Section 12-36-920, an amount not to exceed twenty fifty percent of
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1 the revenue in the preceding fiscal year of the local hospitality tax
2 authorized pursuant to this article may be used for the additional
3 purposes provided in item (1) of this subsection.”
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5 SECTION 3. This act takes effect upon approval by the Governor.
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