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18

VIEWS: 7 PAGES: 5

  • pg 1
									BIL:     18
TYP:     General Bill GB
INB:     Senate
IND:     19990112
PSP:     Leventis
SPO:     Leventis, Elliott
DDN:     l:\council\bills\nbd\11022htc99.doc
RBY:     Senate
COM:     Finance Committee 06 SF
SUB:     Motor Vehicle and Personal Property Tax Relief Trust Fund, Taxation,
         phased-in exemption, school operations


HST:

Body     Date       Action Description                        Com     Leg Involved
______   ________   _______________________________________   _______ ____________
Senate   19990112   Introduced, read first time,              06 SF
                    referred to Committee
Senate   19981118   Prefiled, referred to Committee           06 SF



Printed Versions of This Bill




TXT:
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 9                       A BILL
10
11   TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
12   1976, BY ADDING SECTION 12-37-460 SO AS TO PROVIDE
13   FOR A PHASED-IN EXEMPTION FOR THE PROPERTY TAX
14   ON PERSONAL PROPERTY BEGINNING WITH THE
15   MILLAGE IMPOSED ON MOTOR VEHICLES FOR SCHOOL
16   OPERATING PURPOSES EXTENDING OVER TIME TO ALL
17   PROPERTY TAXES ON ALL PERSONAL PROPERTY, TO
18   ESTABLISH THE MOTOR VEHICLE AND PERSONAL
19   PROPERTY TAX RELIEF TRUST FUND AND REQUIRE A
20   CUMULATIVE FIFTEEN PERCENT OF RECURRING
21   GENERAL FUND REVENUE GROWTH TO BE CREDITED
22   TO THE FUND TO REIMBURSE LOCAL TAXING ENTITIES
23   FOR PERSONAL PROPERTY TAXES NOT COLLECTED
24   BECAUSE OF THE EXEMPTION PROVIDED BY THIS
25   SECTION, TO REQUIRE LOCAL TAXING ENTITIES TO
26   ADJUST MILLAGE IMPOSED ON PERSONAL PROPERTY
27   ANNUALLY SO THAT THE AMOUNT RAISED BY THE
28   MILLAGE AND THE REIMBURSEMENT IN TOTAL DO NOT
29   EXCEED 2000 CALENDAR YEAR PERSONAL PROPERTY
30   TAX REVENUES INCLUDING CREDITS AGAINST SALES
31   TAX, TO PRESCRIBE THE ORDER OF THE VARIOUS TAX
32   LIABILITIES TO WHICH THE EXEMPTION APPLIES, TO
33   PROVIDE FOR REIMBURSEMENTS TO LOCAL TAXING
34   ENTITIES WHEN ALL PERSONAL PROPERTY IS WHOLLY
35   EXEMPT FROM PROPERTY TAX, TO PROVIDE THAT
36   PROPERTY EXEMPTED FROM PROPERTY TAX BY THIS
37   SECTION NEVERTHELESS IS CONSIDERED TAXABLE
38   PROPERTY AT ITS 2000 ASSESSED VALUE FOR PURPOSES
39   OF BONDED INDEBTEDNESS AND THE INDEX OF
40   TAXPAYING ABILITY, AND TO PROVIDE APPROPRIATE
41   DEFINITIONS.
42

     [18]                    1
 1   Be it enacted by the General Assembly of the State of South
 2   Carolina:
 3
 4   SECTION 1. Article 3, Chapter 37, Title 12 of the 1976 Code is
 5   amended by adding:
 6
 7      “Section 12-37-460. (A) As used in this section:
 8         (1) „Local personal property base payment‟ means an
 9   amount equal to the revenues actually collected in calendar year
10   2000 by a taxing entity from property tax on all personal property.
11   It also includes amounts allowed as a credit against personal
12   property tax pursuant to Article 1, Chapter 10 of Title 4 in calendar
13   year 2000.
14         (2) „Motor vehicle‟ means every vehicle which is
15   self-propelled, including a motorcycle, which is required to be
16   registered and licensed pursuant to Chapter 3 of Title 56 and which
17   is assessed for property tax pursuant to Section 1(8), Article X of
18   the Constitution of this State and Section 12-43-220(f).
19         (3) „Personal property‟ means that property subject to the
20   assessment provided pursuant to Section 1, Article X of the
21   Constitution of this State including motor vehicles as defined in
22   item (2) of this subsection.
23         (4) „Taxing entity‟ means a county, municipality, school
24   district, or special purpose or public service district.
25         (5) „Total personal property base payment‟ means an amount
26   equal to the total revenues actually collected in calendar year 2000
27   by all taxing entities in this State from property tax on personal
28   property. It also includes amounts allowed as a credit against
29   personal property tax pursuant to Article 1, Chapter 10 of Title 4 in
30   calendar year 2000.
31         (6) „Trust fund‟ means the Motor Vehicle and Personal
32   Property Tax Relief Trust Fund established pursuant to subsection
33   (B) of this section.
34         (7) „State Personal Property Tax Reimbursement‟ means the
35   reimbursement allocated monthly to a county for its taxing entities
36   to reimburse for the exemptions allowed by this section. The
37   allocation to a county is determined by the Director of the
38   Department of Revenue for each fiscal year by multiplying trust
39   fund revenues by the proportion that the local personal property
40   base payment of all county taxing entities is of the total personal
41   property base payment.
42      (B) There is established in the State Treasury the Motor
43   Vehicle and Personal Property Tax Relief Trust Fund, separate and

     [18]                              2
 1   distinct from all other funds, to which must be credited amounts
 2   provided in subsection (C) of this section. Revenues in this Trust
 3   Fund must be used to provide taxing entities the reimbursement
 4   required pursuant to this section for property tax not collected
 5   because of the exemption allowed by this section. The Trust Fund
 6   is administered by the Comptroller General. Earnings on the trust
 7   fund must be credited to the general fund of the State.
 8      (C) Annually, the Board of Economic Advisors shall remove
 9   from its estimated revenue projection for the succeeding fiscal year
10   an amount equal to fifteen percent of projected year-to-year
11   recurring general fund growth plus the total of all amounts
12   previously credited to the Trust Fund, but not more than the total
13   personal property base payment. This amount is automatically
14   credited to the Trust Fund for the applicable fiscal year, is not
15   available for appropriation, and is not considered part of the
16   general fund of the State except for the purpose of calculating
17   amounts which annually must be credited to the Trust Fund.
18   Amounts credited must be earmarked from state income tax
19   revenues.
20      (D) From revenue credited to the Trust Fund for a fiscal year,
21   each county must be allocated monthly its state personal property
22   tax reimbursement.
23      (E)(1) During the phase-in of the exemption allowed by this
24   section:
25           (a) the county auditor shall adjust the millage imposed by
26   county taxing entities on personal property to a uniform millage,
27   which when added to the taxing entity‟s reimbursement under this
28   section, does not exceed the taxing entity‟s local personal property
29   base payment.
30           (b) Based on the State Personal Property Tax
31   Reimbursement, the county auditor shall calculate and prescribe a
32   percentage reduction on each personal property tax bill falling due
33   in the applicable fiscal year, reducing liabilities in the following
34   order:
35              (i) school operating millage on motor vehicles;
36              (ii) school bonded indebtedness and lease purchase
37   payments for school construction and renovation millage on motor
38   vehicles;
39              (iii) all other millage on motor vehicles;
40              (iv) millage on all personal property other than motor
41   vehicles.
42      Liability in each category must be eliminated before reductions
43   are applied to the remaining categories.

     [18]                             3
 1         (2) From the State Personal Property Tax Reimbursement,
 2   each taxing entity in the county must be reimbursed monthly for
 3   revenues not collected by it because of the percentage reduction on
 4   the personal property tax it otherwise would receive.
 5         (3) When all personal property is wholly exempt, each
 6   taxing entity shall receive a monthly reimbursement equal to
 7   one-twelfth of its local personal property base payment.
 8      (F) Notwithstanding any other provision of law, property
 9   exempted from property tax as provided in this section is
10   considered taxable property for purposes of bonded indebtedness
11   pursuant to Sections 14 and 15, Article X of the Constitution of
12   this State and for purposes of computing the „index of taxpaying
13   ability‟ pursuant to Section 59-20-20(3). However, only that
14   assessed value applicable for such property for the 2000 property
15   tax year may be so considered.”
16
17   SECTION 2. Except where otherwise provided, this act takes
18   effect upon ratification of an amendment to the Constitution of this
19   State providing for the separate assessment of property taxes on all
20   personal property pursuant to Section 1A, Article X of the
21   Constitution of this State and which fixes the millage imposed on
22   such property to no more than the millage rate imposed on it for
23   property tax years beginning in 2000. Upon such ratification, the
24   exemption allowed pursuant to Section 12-37-460 of the 1976
25   Code, as added by this act, first applies for motor vehicle tax years
26   beginning after June, 2001. Regardless of the effective date of this
27   act, no refund is allowed for the exemption allowed by this act as a
28   result of an effective date occurring after June, 2001.
29                                 ----XX----




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