Journal of the House of Representatives
of the First Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 10, 1995

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first time in the history of this country to enact and amendment to protect the flag from physical desecration. South Carolina stepped forward with 46 states. When I say the first time, the reason I say the first time is because that this is the first time in the history of this country that there has been a movement by the people to the Congress requesting that we the people be given an amendment, an amendment passed by the Congress and returned to several states for the purpose of allowing us as a people, a free people, to make that decision to vote on that issue. The amendments were introduced yesterday in both the House and Senate, and with that introduction we had 45 co-sponsors in the United States Senate for the bill prior to introduction and we had 241 representatives in the House prior to the introduction to sign on asking or agreeing with that particular statement. This is not a democratic issue. It was not faced here as a democratic or republican issue. It was faced in this House as it was around the country as an American issue. It was the right thing to do. It is the one symbol that binds us all together as a free people. It is the one symbol that was left on the moon. It is the one symbol that is left that we all have raised our hand and gone off in service to protect the freedoms of this country. It is not a perfect country, it is not a perfect country by any means, but we must do something right here when we see the people along our southern borders and along our oceans trying to get here. We must be doing something right. We have got to continue to work for those freedoms and protect those freedoms. Many of you have followed over the last couple of years, particularly the last couple of years, the issue of the Smithsonian and the Enola Gay. We step forward in that instance on behalf of the American people and the organization because we felt very strongly and we continue to feel very strongly that there is no room in this country for what is called political correctness. We cannot change the history of this country. We are what we are because of our history. It is wrong to try to rewrite history. We should learn from history and do better and make this a better place based on the history of our people. That is what we should use history for. We should not rewrite it. Those that served in World War II, particularly in the Pacific, were going to be maligned by the exhibit at the Smithsonian. The exhibit said that we, the American people, were the aggressors and that we bombed a defeated nation. I will tell you that that is absolutely not true. I would like for those historians that say that to sit down with people who survived the death march or many others and go to China and talk to the people at Nan Keing about Japanese and talk to them about what they endured under Japanese aggression. President Truman had one figure in mind when it came to casualties when he made the decision to drop those
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bombs, zero, zero loss of American lives and in doing so, not only did he save American lives, but he saved Japanese lives and he saved Japanese culture. We, as a people, owe no apology to the Japanese, no apology. It is interesting that the Japanese have never apologized to us, nor have they ever opened their own archive to their own people. Their people are still under the misapprehension that the bombings had nothing to do with the end of the war and that may sound silly. But, I was interviewed three weeks ago by a producer from the Japanese television public television network and she tried to explain to me why the Japanese people were upset about the stamp, the atomic bomb stamp that was withdrawn out of the World War II commemorative issue. I thought that they were upset because of the bomb cloud. She said no. It was the wording. The wording said that atomic bombs hasten the end of World War II. She said that as a people and as a nation, they don't understand how that is connected to the end of the war because their government never explained it to them that way. President Truman was interested in one thing, bringing that terrible blood bath to an end and it was a proper and a moral decision. To stand now and say that we are not going to acknowledge VJ Day, that is another slap. We owe no apology. We are a nation who fought for freedom and we continue to fight for freedom whenever anybody gets in trouble who gets called. We put our young people on the line. We put them in harm's way and we as a nation need to take care of our people and continue to work for a strong national defense. I thank you for the opportunity and the privilege, the great privilege, to speak before you this morning. I will tell you one quick story about the Enola Gay issue that came out of that meeting with that producer. And it all depends on where you are at the time a decision was made, I guess, as to how you look at the decision. But, with that young lady from Japan was a young man who was an American who was a co-producer working for that network now in Japan and who is married to a Japanese young lady. Her father was a trained kamikaze pilot who was set to fly if and when the American troops invaded the homelands of Japan. He said to me, Commander, my father-in-law thinks that Harry Truman is the greatest guy that ever walked the face of the earth. If it had not been for that bomb, he would have been flying and he would not have come back. So, it depends on where you look at it or how you look at it. But, it is a privilege for me to come before you. I bring you greetings from the great state of Louisiana where I have been in politics and in an elected office, a political office, for the last 16 years in New Orleans. I made a comment last night when a member of your House and Senate was being honored by the Department of South Carolina American Legion, that you belong
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and participate in a noble profession and we should not get upset, we get knocked a lot, we get criticized a lot, I'm also an attorney, so I know what it is like, many of you do. But, we who work in public service give up a lot to participate. I do it because I enjoy it and I feel I get something out of it and that is a little thanks and maybe I'm doing something right. I hope you feel the same way. It is an honor and a privilege to talk to a political audience. I thank you very much for giving me the opportunity to come. Thank you."

Upon the conclusion of his address, the National Commander and his escort party retired from the Chamber.

JOINT ASSEMBLY RECEDES

The purposes of the Joint Assembly having been accomplished, the President announced that under the terms of the Concurrent Resolution the Joint Assembly would recede from business.

The Senate accordingly retired to its Chamber.

THE HOUSE RESUMES

At 12:58 P.M. the House resumed, the SPEAKER in the Chair.

Rep. A. YOUNG moved that the House recede until 2:15 P.M., which was adopted.

THE HOUSE RESUMES

At 2:15 P.M. the House resumed, the SPEAKER in the Chair.

LEAVE OF ABSENCE

The SPEAKER granted Rep. McELVEEN a leave of absence for the remainder of the day.

POINT OF QUORUM

The question of a quorum was raised. A quorum was later present.

H. 3651--AMENDED AND INTERRUPTED DEBATE

Debate was resumed on the following Bill, the pending question being the consideration of Amendment No. 8.

H. 3651 -- Rep. H. Brown: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-11-330 SO AS TO ESTABLISH THE STATE PROPERTY TAX

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CREDIT FUND AND REQUIRE ANNUAL APPROPRIATIONS TO THE FUND; TO AMEND THE 1976 CODE BY ADDING SECTION 12-37-251 SO AS TO ALLOW A HOMESTEAD EXEMPTION FROM PROPERTY TAXES OTHER THAN THOSE LEVIED FOR BONDED INDEBTEDNESS EQUAL TO TWENTY-EIGHT THOUSAND FIVE HUNDRED DOLLARS OF FAIR MARKET VALUE ESCALATING, DEPENDING ON REVENUES IN THE STATE PROPERTY TAX CREDIT FUND TO A COMPLETE EXEMPTION FROM ALL TAXES EXCEPT THOSE LEVIED FOR BONDED INDEBTEDNESS; TO AMEND THE 1976 CODE BY ADDING SECTION 12-43-217 SO AS TO REQUIRE TRIENNIAL REASSESSMENT; TO AMEND THE 1976 CODE BY ADDING SECTIONS 4-9-142, 5-21-70, 6-1-75, AND 59-73-35 SO AS TO IMPOSE SPENDING LIMITS ON COUNTIES, MUNICIPALITIES, AND SPECIAL PURPOSE DISTRICTS AND IMPOSE AN AD VALOREM TAX REVENUE LIMITATION ON SCHOOL DISTRICTS; TO AMEND THE 1976 CODE BY ADDING SECTION 12-43-350 SO AS TO PROVIDE A STANDARDIZED TAX BILL; AND TO AMEND THE 1976 CODE BY ADDING SECTION 6-1-60 SO AS TO PROVIDE FOR NOTICE REQUIREMENTS FOR LOCAL GOVERNMENT BUDGETING.

AMENDMENT NO. 8--TABLED

Debate was resumed on Amendment No. 8, by Rep. KOON.

Rep. HERDKLOTZ spoke against the amendment and moved to table the amendment, which was agreed to.

Reps. D. SMITH, CATO and QUINN proposed the following Amendment No. 11 (Doc Name L:\council\legis\amend\PFM\7330BDW.95), which was adopted.

Amend the bill, as and if amended, Section 12-45-75(A), page 3651-3, beginning on line 25, by striking /No installment election is allowed for taxes paid through an escrow account./ and inserting /No installment election is allowed for taxes paid through an escrow account./

Amend title to conform.

Rep. QUINN explained the amendment.

The amendment was then adopted.

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Reps. MEACHAM and HASKINS proposed the following Amendment No. 12 (Doc Name L:\council\legis\amend\JIC\5671HTC.95), which was tabled.

Amend the report, as and if amended, Section 12-37-251(A), as contained in SECTION 2, page 3651-2, by inserting before /must/ on line 14 /is a uniform percentage of fair market value of such property that/

Amend further, page 3651-2, line 21, by striking /amount/ and inserting /percentage/.

Amend title to conform.

Rep. MEACHAM explained the amendment.

Rep. H. BROWN moved to table the amendment, which was agreed to.

Rep. FLEMING proposed the following Amendment No. 13 (Doc Name L:\council\legis\amend\GJK\21584SD.95), which was tabled.

Amend the Report of the Committee on Ways and Means, as and if amended, by adding new sections to be appropriately numbered to read:

/SECTION . Chapter 36, Title 12 of the 1976 Code is amended by adding:

"Article 10

Property Tax Relief Sales Tax Act

Section 12-36-1010. This article may be cited as the Property Tax Relief Sales Tax Act.

Section 12-36-1020. An additional tax equal to four percent is added to the taxes imposed pursuant to Articles 9, 13, and 17 of this chapter. For all purposes of this title, this additional tax is considered a tax levied pursuant to the South Carolina Sales and Use Tax Act. The department shall prescribe tables establishing the total amount that may be added to the sales price to reflect all tax levied pursuant to this chapter.

Section 12-36-1030. (A) Notwithstanding any other provision of this chapter providing for the distribution of sales, use, and casual excise tax revenues, beginning July 1, 1996, the revenue from the taxes imposed by this chapter in a fiscal year must be credited to a separate fund in the State Treasury entitled the Property Tax Relief Fund.

(B) The State Treasurer shall first use the proceeds of the Property Tax Relief Fund to pay the current interest and principal on general obligation bonds and lease payments on certificates of participation in lease-purchase agreements of all political subdivisions of the State outstanding as of July 1, 1996.

(C) (1) After deduction of amounts paid pursuant to subsection (B), the State Treasurer shall next distribute revenues in the Property Tax

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Relief Fund quarterly to the several political subdivisions in the manner and in the amounts specified in item (2).

(2) A political subdivision shall receive each year from the Property Tax Relief Fund an amount equal to the entity's ad valorem tax revenues for property tax year 1995. Beginning with revenues credited to the fund in fiscal year 1997-98, the total amount distributed each year to a political subdivision under this item must be adjusted by a percentage equal to any consumer price index increase in the twelve months ending on December thirty-first of the preceding year.

(D) Sales, use and casual excise tax revenues not distributed pursuant to subsections (B) and (C) must be placed in a fund separate and distinct from the state general fund entitled the `South Carolina Income Tax Relief Fund', the monies in which must be used to provide the taxpayers of this State on a per capita basis state income tax relief in the manner the General Assembly shall provide.

Section 12-36-1040. For property tax year 1996, the millage imposed by a political subdivision is reduced by fifty percent over the millage rate imposed by the entity in the prior tax year. After 1996 and until all outstanding general obligation bonds issued by a political subdivision are repaid, no political subdivision may impose a property tax except to avoid default on general obligation bonds of the entity. When all outstanding general obligation bonds of a political subdivision are repaid, no property tax may be levied by the entity for any purpose.

Section 12-36-1050. After June 30, 1996, no general obligation bonds of a political subdivision may be issued pledging property tax revenues for repayment and no bonds of a political subdivision pledging any Property Tax Relief Fund revenues for repayment may be issued without the prior permission of the State Budget and Control Board."

SECTION . Section 12-36-2110 of the 1976 Code, as last amended by Act 331 of 1994, is further amended to read:

"Section 12-36-2110. (A) The maximum tax imposed by this chapter is three hundred dollars for each sale made after June 30, 1984, or lease executed after August 31, 1985, of each:

(1) aircraft, including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft;

(2) motor vehicle;

(3) motorcycle;

(4) boat;

(5) (2) trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, but not including house trailers or campers as defined in Section 56-3-710;

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(3) commercial vehicles with a manufacturer's gross weight rating in excess of ten thousand pounds.

(6) recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel; or

(7) self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower.

In the case of a lease, the total tax rate required by law applies on each payment until the total tax paid equals three hundred dollars. Nothing in this section prohibits a taxpayer from paying the total tax due at the time of execution of the lease, or with any payment under the lease. To qualify for the tax limitation provided by this section, a lease must specifically state the term of, and remain in force for, a period in excess of ninety continuous days.

(B) For the sale of a manufactured home, as defined in Section 40-29-20, the tax is calculated as follows:

(1) subtract trade-in allowance from the sales price;

(2) multiply the result from (1) by sixty-five percent;

(3) if the result from (2) is no greater than six thousand dollars, multiply by five percent for the amount of tax due;

(4) if the result from (2) is greater than six thousand dollars, the tax due is three hundred dollars plus two percent of the amount greater than six thousand dollars.

However, a manufactured home is exempt from any tax that may be due above three hundred dollars as a result of the calculation in item (4) if it meets these energy efficiency levels: storm or double pane glass windows, insulated or storm doors, a minimum thermal resistance rating of the insulation only of R-11 for walls, R-19 for floors, and R-30 for ceilings. However, variations in the energy efficiency levels for walls, floors, and ceilings are allowed and the exemption on tax due above three hundred dollars applies if the total heat loss does not exceed that calculated using the levels of R-11 for walls, R-19 for floors, and R-30 for ceilings. The edition of the American Society of Heating, Refrigerating, and Air Conditioning Engineers Guide in effect at the time is the source for heat loss calculation. The dealer selling the manufactured home must maintain records, on forms provided by the State Energy Office, on each manufactured home sold which contains the above calculations and verifying whether or not the manufactured home met the energy efficiency levels provided for in this subsection. These records must be maintained for three years and must be made available for inspection upon request of the Department of Consumer Affairs or the State Energy Office.

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Notwithstanding the rates of tax imposed by this chapter, a tax rate of three percent is imposed on the sale or lease of motor vehicles and motorcycles and on the sale or lease of each:

(1) boat;

(2) recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel;

(3) self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower;

(4) manufactured home;

(5) musical instrument, or

(6) item of machinery for research and development.

In the case of a lease of an item subject to the tax limit imposed by this subsection, the total tax rate required by law applies on each payment. Nothing in this section prohibits a taxpayer from paying the total tax due at the time of execution of the lease, or with any payment under the lease.

(C) For the sale of each musical instrument, or each piece of office equipment, purchased by a religious organization exempt under Internal Revenue Code Section 501(c)(3), the maximum tax imposed by this chapter is three hundred dollars. The musical instrument or office equipment must be located on church property and used exclusively for the organizations exempt purpose. The religious organization must furnish to the seller an affidavit on forms prescribed by the commission. The affidavit must be retained by the seller.

(D) The maximum tax levied pursuant to this chapter on the sale or use of each item of machinery for research and development is three hundred dollars. As used in this subsection, "machinery for research and development" means machinery used directly and exclusively in research and development in the experimental or laboratory sense for new products, new uses for existing products, or for improving existing products. To be eligible for the limitation imposed by this subsection, the machinery must be located in a separate facility devoted exclusively to research and development as defined in this subsection. The limitation does not extend to machinery used in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects."

SECTION . Section 12-36-2120 of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read:

"Section 12-36-2120. Exempted from the taxes imposed by this chapter are the gross proceeds of sales, or sales price of:

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(1) tangible personal property or receipts of any business which the State is prohibited from taxing by the Constitution or laws of the United States of America or by the Constitution or laws of this State;

(2) tangible personal property sold to the federal government;

(3) textbooks, magazines, and periodicals used as a part of a course of study in primary and secondary schools and institutions of higher learning, and all books, magazines, and periodicals sold to publicly supported state, county, or regional libraries which are open to the public without charge;

(4)(3) livestock. `Livestock' is defined as domesticated animals customarily raised on South Carolina farms for use primarily as beasts of burden, or food, and certain mammals when raised for their pelts or fur. Animals such as dogs, cats, reptiles, fowls (except baby chicks and poults), and animals of a wild nature, are not considered livestock;

(5)(4) feed used for the production and maintenance of poultry and livestock;

(6)(5) insecticides, chemicals, fertilizers, soil conditioners, seeds, or seedlings, or nursery stock, used solely in the production for sale of farm, dairy, grove, vineyard, or garden products or in the cultivation of poultry or livestock feed;

(7)(6) containers and labels used in:

(a) preparing agricultural, dairy, grove, or garden products for sale; or

(b) preparing turpentine gum, gum spirits of turpentine, and gum resin for sale.

For purposes of this exemption, containers mean boxes, crates, bags, bagging, ties, barrels, and other containers;
(8) newsprint paper, newspapers, and religious publications, including the Holy Bible and the South Carolina Department of Agricultures The Market Bulletin;

(9) coal, or coke or other fuel sold to manufacturers, electric power companies, and transportation companies for:

(a) use or consumption in the production of by-products;

(b) the generation of heat or power used in manufacturing tangible personal property for sale. For purposes of this item, `manufacturer' or `manufacturing' includes the activities of a processor;

(c) the generation of electric power or energy for use in manufacturing tangible personal property for sale; or

(d) the generation of motive power for transportation. For the purposes of this exemption, `manufacturer' or `manufacturing' includes the activities of mining and quarrying;

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(10)(7) (a) meals or foodstuffs used in furnishing meals to school children, if the sales or use are within school buildings and are not for profit;

(b) meals or foodstuffs provided to elderly or disabled persons at home by nonprofit organizations that receive only charitable contributions in addition to sale proceeds from the meals;
(11) (a) toll charges for the transmission of voice or messages between telephone exchanges;

(b) charges for telegraph messages; and

(c) carrier access charges and customer access line charges established by the Federal Communications Commission or the South Carolina Public Service Commission;

(12) water sold by public utilities, if rates and charges are of the kind determined by the Public Service Commission, or water sold by nonprofit corporations organized pursuant to Sections 33-35-10 to 33-35-170;

(13) fuel, lubricants, and supplies for use or consumption aboard ships in intercoastal trade or foreign commerce. This exemption does not exempt or exclude from the tax the sale of materials and supplies used in fulfilling a contract for the painting, repair, or reconditioning of ships and other watercraft;

(14) wrapping paper, wrapping twine, paper bags, and containers, used incident to the sale and delivery of tangible personal property;

(15)(8) (a) gasoline and other fuels subject to tax under Chapter 27 of Title 12; however, gasoline used in aircraft is not exempt from the sales and use tax;

(b) fuels subject to tax under Chapter 29 of Title 12; however, if the fuel tax is subsequently refunded under Section 12-29-380, the sales or use tax is due unless otherwise exempt, and the person receiving the refund is liable for the sales or use tax;

(c) fuels used in farm machinery and farm tractors; and

(d) fuels used in commercial fishing vessels.;

(16)(9) farm machinery and their replacement parts and attachments, used in planting, cultivating, or harvesting farm crops, including bulk coolers (farm dairy tanks) used in the production and preservation of milk on dairy farms, and machines used in the production of poultry and poultry products on poultry farms, when such products are sold in the original state of production or preparation for sale. This exemption does not include automobiles or trucks;

(17) machines used in manufacturing, processing, compounding, mining, or quarrying tangible personal property for sale. `Machines' include the parts of machines, attachments, and replacements used, or

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manufactured for use, on or in the operation of the machines and which are necessary to the operation of the machines and are customarily so used. This exemption does not include automobiles or trucks;

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