Current StatusView additional legislative information at the LPITS web site.Bill Number: 4522 Ratification Number: 744 Act Number 603 Introducing Body: House Subject: To require the annual audit of the offices of the county assessor
(A603, R744, H4522)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 4-9-155 SO AS TO REQUIRE THE ANNUAL AUDIT OF THE OFFICES OF THE COUNTY ASSESSOR, AUDITOR, TREASURER, AND TAX COLLECTOR TO BE CONDUCTED IN ACCORDANCE WITH STANDARDS SET BY THE COMPTROLLER GENERAL OF THE UNITED STATES, TO PROVIDE THAT THE TAX COMMISSION'S MANUAL AND GUIDE MUST SET OUT THE ITEMS TO BE AUDITED, TO REQUIRE COPIES OF THE AUDIT TO BE PROVIDED TO THE TAX COMMISSION AND THE COMPTROLLER GENERAL, AND TO PROVIDE MONETARY PENALTIES FOR VIOLATIONS; TO AMEND SECTION 12-43-220, AS AMENDED, RELATING TO CLASSIFICATION OF PROPERTY AND ASSESSMENT RATIOS FOR PURPOSES OF PROPERTY TAXES, SO AS TO PROVIDE THAT THE TAX COMMISSION SHALL APPLY AN EQUALIZATION FACTOR TO REAL AND PERSONAL PROPERTY OWNED BY OR LEASED TO TRANSPORTATION COMPANIES FOR HIRE AS MANDATED BY FEDERAL LEGISLATION; TO AMEND SECTION 12-3-80, RELATING TO THE OFFICE OF CHAIRMAN OF THE TAX COMMISSION, SO AS TO PROVIDE THAT HE SHALL DEVOTE THE TIME REQUIRED TO PERFORM THE DUTIES OF HIS OFFICE RATHER THAN HIS ENTIRE TIME AND TO DELETE THE REQUIREMENT THAT HE MAY NOT HOLD ANY OTHER OFFICE OF HONOR OR PROFIT; TO AMEND SECTION 12-3-145, AS AMENDED, RELATING TO THE PROCEDURES FOR OBTAINING PROPERTY TAX EXEMPTION, SO AS TO AUTHORIZE THE TAX COMMISSION TO DECLARE THE REAL AND PERSONAL PROPERTY OF A QUALIFYING ORGANIZATION AS EXEMPT AND CERTIFY THE EXEMPTION TO THE COUNTY AUDITOR; TO AMEND SECTION 12-3-140, AS AMENDED, RELATING TO THE POWERS OF THE TAX COMMISSION, SO AS TO PROVIDE THAT IN THE CASE OF BUSINESS PROPERTY ASSESSED BY THE COMMISSION, THE ASSESSMENT APPLIES ONLY TO PROPERTY USED IN THE CONDUCT OF THE BUSINESS; AND TO AMEND SECTIONS 6-21-240, 6-21-430, AND 6-21-440, RELATING TO THE REVENUE BOND ACT FOR UTILITIES, SO AS TO AUTHORIZE THE GOVERNING BODY TO PLEDGE EITHER GROSS OR NET REVENUES FOR BOND REDEMPTION, AND TO PROVIDE FOR THE PRIORITY OF APPLICATION OF REVENUES.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. The General Assembly finds that there is a lack of uniformity in the annual audits of the offices of the county assessor, auditor, treasurer, and tax collector and that on occasion important facts are overlooked or not considered. The purpose of this act is to establish the minimum standard of accounting to be followed so as to increase the accuracy of the audits of these offices.
Audit standards
SECTION 2. The 1976 Code is amended by adding:
"Section 4-9-155. (A) The annual audit of the offices of the county assessor, auditor, treasurer, and tax collector must be conducted in accordance with the standards set forth by the Comptroller General of the United States as published in a volume entitled Government Auditing Standards and the manual and guide prescribed by the South Carolina Tax Commission. The Tax Commission's manual and guide must set forth necessary items, entries, transactions, and other data for the accountant to closely examine in the audit of the offices of the county assessor, county auditor, county treasurer, and county tax collector. A copy of the audit of each of these offices must be provided by the accountant to the Tax Commission and Comptroller General of this State.
(B) Any county in which the governing body fails to require the annual audit to be conducted as required in this section is subject to the penalty provisions of Section 12-43-260, and the Tax Commission upon determining that this failure occurred shall take the actions provided in Section 12-43-260 to impose the penalties provided therein."
Equalization factor
SECTION 3. (A) Section 12-43-220(g) is amended by adding at the end:
"The commission shall apply an equalization factor to real and personal property owned by or leased to transportation companies for hire as mandated by federal legislation."
(B) Notwithstanding any other provision of this act, this section applies with respect to taxable years beginning after 1989.
Tax Commission chairman
SECTION 4. (A) Section 12-3-80 of the 1976 Code is amended to read:
"Section 12-3-80. The chairman of the commission shall devote the time required to perform the duties of the office and may not:
(a) engage in any occupation or business interfering with or inconsistent with his duty;
(b) serve on or under any committee of a political party; or
(c) contribute, directly or indirectly, money or other thing of value in support of any candidate for office or to any political organization."
(B) Notwithstanding any other provision of this act, this section takes effect upon approval by the Governor.
Method of certifying tax exemption
SECTION 5. (A) The last paragraph of Section 12-3-145 B of the 1976 Code, as last amended by Act 78 of 1989, is further amended to read:
"The commission, upon receipt of an application and upon proper investigation, may declare the real and personal property of any organization qualifying for an exemption from ad valorem taxation identified in this chapter as exempt and shall certify the exemption to the auditor's office in the county in which the property is located. Upon certification by the commission, the auditor shall void any tax notice applicable to the property."
(B) Notwithstanding any other provision of this act, this section is effective upon approval by the Governor.
Property taxes assessed by Tax Commission, limited to property used in business
SECTION 6. (A) Section 12-3-140(17) of the 1976 Code, as last amended by Act 78 of 1989, is further amended to read:
"(17) Has the sole responsibility for the assessment, appraisal, and equalization of taxable values upon the property used in the conduct of their business of the following: franchises of street railway companies, mines, electric railways, telephone companies, water, heat, light and power companies, private car lines, pipeline companies, sewer companies, and airlines and must assess, appraise, and equalize all real and tangible personal property of manufacturers, headquarters, corporate office facilities, distribution facilities, and all additions to establishments. The commission must also assess to the owner all real or personal property leased to or used by the above-mentioned companies using the unit valuation method or other accepted or recognized methods. When the total value of the utility is estimated and the value apportioned to this State, then the value will be distributed to the taxing jurisdiction in each county where the utility has property on a basis of investment in each jurisdiction. It is the responsibility of each county assessor to determine what portion of the total value in each district is to be assessed as real property. The owner of property leased to or used by the above-mentioned companies must make returns to the commission on forms prescribed by the commission. The Tax Commission shall appraise and assess property leased to any taxpayer under its jurisdiction in the name of the lessee when the unit method of valuation is used or when the taxpayer is an airline or private car line if the property is under the control of the taxpayer and the taxpayer is required to pay the tax."
(B) Notwithstanding any other provision of this act, this section is effective for taxable years beginning after 1989.
Revenue bonds, net proceeds pledged
SECTION 7. Section 6-21-240 of the 1976 Code is amended to read:
"Section 6-21-240. Any city combining its airport with any harbor improvement plan into a single system as provided in Section 6-21-40 may secure such bonds as may be issued therefor by pledges of the revenues from such combined system, and it may additionally secure such bonds by pledges of any of the revenues that might from time to time become receivable by said city from any other source or sources except the proceeds of ad valorem taxes. Bonds issued pursuant to this chapter for such purposes may, in the discretion of the governing body of said city, be primarily secured by a pledge of the revenues from such system as provided by Section 6-21-440."
Revenue bonds, custodianship
SECTION 8. Section 6-21-430 of the 1976 Code is amended to read:
"Section 6-21-430. The governing body of the borrower shall designate as custodian of the bond and interest redemption fund established pursuant to Section 6-21-440 a bank, depository, or trust company duly qualified and doing business within the State which shall be satisfactory to the governing body of such borrower. The bank, depository, or trust company shall signify its acceptance of such custodianship by a written instrument directed to the governing body of the borrower. Such fund from time to time held by such bank, depository, or trust company shall be impressed with a trust for the benefit of the persons entitled thereto."
Revenue bonds, net proceeds, pledge
SECTION 9. Section 6-21-440 of the 1976 Code is amended to read:
"Section 6-21-440. In the authorizing ordinance the governing body of the borrower shall set aside monthly (or more often if deemed advisable) and shall pledge either the gross revenues or net revenues of the system, project, or combined system, as the governing body of the borrower may determine, into separate and special funds as follows: Out of the revenues there shall be set aside a sum sufficient to pay the principal of and the interest upon the bonds as and when they become due and payable. If the revenues of any calendar, operating, or fiscal year shall be insufficient to pay the principal of and interest on the bonds maturing in any such calendar, operating, or fiscal year, an additional amount sufficient to pay the principal of and interest on such bonds outstanding and unpaid shall be set aside out of the revenues of the next succeeding calendar, operating, or fiscal year and applied to the payment of the principal of and interest on such outstanding and unpaid bonds. This fund shall be designated the 'bond and interest redemption fund'. Out of the revenues there also shall be set aside a sum sufficient to provide for the payment of all expenses of administration and operation and such expenses for maintenance as may be necessary to preserve the system, project or combined system in good repair and working order. This fund shall be designated the 'operation and maintenance fund'. If the pledge made is of gross revenues, the order of the foregoing set asides shall be first to the bond and interest redemption fund and next to the operation and maintenance fund; if the pledge is of net revenues, the order of the foregoing set asides shall be first to the operation and maintenance fund and next to the bond and interest redemption fund. Out of the remaining revenues there shall be next set aside a sum sufficient to build up a reserve for depreciation of the existing system or combined system. This fund shall be designated the 'depreciation fund'. Out of the remaining revenues there shall be next set aside a sum sufficient to build up a reserve for improvements, betterments, and extensions to the existing system, project, or combined system, other than those necessary to maintain it in good repair and working order as herein provided. This fund shall be designated the 'contingent fund'. Any surplus revenues thereafter remaining shall be disposed of by the governing body of the borrower as it may determine from time to time to be for the best interest of the borrower.
In the event the proceedings for the issuance of bonds provide for their repayment in whole or in part from front-foot assessments, the borrower need not make the payments provided for in this section for application for the payment of principal and interest on a monthly basis but may make them at least annually, provided that the payments shall be in such amounts and at such times that sufficient funds will be available to pay the principal and interest upon the bonds as and when they become due and payable."
Time effective
SECTION 10 . This act takes effect July 1, 1991.
Approved the 25th day of June, 1990.