| Printed Page 1910, Mar. 22 | Printed Page 1930, Mar. 22 |

(19) electricity used by manufacturers, miners, or quarriers to manufacture, mine, or quarry tangible personal property for sale. For purposes of this item, `manufacturer' or `manufacture' includes the activities of processors;

(20) railroad cars, locomotives, and their parts, monorail cars, and the engines or motors that propel them, and their parts;

(21) vessels and barges of more than fifty tons burden;

(22) materials necessary to assemble missiles to be used by the Armed Forces of the United States;

(23)(11) farm, grove, vineyard, and garden products, if sold in the original state of production or preparation for sale, when sold by the producer or by members of the producer's immediate family;

(24) supplies and machinery used by laundries, cleaning, dyeing, pressing, or garment or other textile rental establishments in the direct performance of their primary function, but not sales of supplies and machinery used by coin-operated laundromats;

(25) motor vehicles (excluding trucks) or motorcycles, which are required to be licensed to be used on the highways, sold to a resident of another state, but who is located in South Carolina by reason of orders of the United States Armed Forces. This exemption is allowed only if, within ten days of the sale, the vendor is furnished a statement, from a commissioned officer of the Armed Forces of a higher rank than the purchaser, certifying that the buyer is a member of the Armed Forces on active duty, and a resident of another state or if the buyer furnishes a leave and earnings statement from the appropriate department of the armed services which designates the state of residence of the buyer;

(26) all supplies, technical equipment, machinery, and electricity sold to radio and television stations, and cable television systems, for use in producing, broadcasting, or distributing programs. For the purpose of this exemption, radio stations, television stations, and cable television systems are deemed to be manufacturers;

(27) all plants and animals sold to any publicly supported zoological park or garden or to any of its nonprofit support corporations;

(28)(12) (a) medicine and prosthetic devices sold by prescription, and free samples of prescription medicine distributed by its manufacturer and any use of these free samples;

(c) medicine donated by its manufacturer to a public institution of higher education for research or for the treatment of indigent patients; and

(d) dental prosthetic devices;

(29)(13) Reserved; food which may be purchased lawfully with United States Department of Agriculture food stamps;

(30) office supplies, or other commodities, and services resold by the Division of General Services of the State Budget and Control Board to departments and agencies of the state government, if the tax was paid on the divisions original purchase;

(31) vacation time sharing lease plans as provided by Chapter 32 of Title 27;

(32)(14) natural and liquefied petroleum gas and electricity used exclusively in the production of poultry, livestock, swine, and milk;

(33) electricity, natural gas, fuel oil, kerosene, LP gas, coal, or any other combustible heating material or substance used for residential purposes. Individual sales of kerosene of twenty gallons or less by retailers are considered used for residential heating purposes;

(34) thirty-five percent of the gross proceeds of the sale of modular homes as defined in Section 31-17-20;

(35) motion picture film sold or rented to or by theaters;

(36) tangible personal property where the seller, by contract of sale, is obligated to deliver to the buyer, or to an agent or donee of the buyer, at a point outside this State or to deliver it to a carrier or to the mails for transportation to the buyer, or to an agent or donee of the buyer, at a point outside this State;

(37) petroleum asphalt products, commonly used in paving, purchased in this State, which are transported and consumed out of this State;

(38) hearing aids, as defined by Section 40-25-20(5);

(39) concession sales at a festival by an organization devoted exclusively to public or charitable purposes, if:

(a) all the net proceeds are used for those purposes;

(b) the festival is listed as a special event in the calendar of events provided by the South Carolina Department of Parks, Recreation and Tourism; and

(c) in advance of the festival, its organizers provide the commission, on a form it prescribes, information necessary to insure compliance with

(43) all supplies, technical equipment, machinery, and electricity sold to motion picture companies for use in filming or producing motion pictures. For the purposes of this item, `motion picture' means any audiovisual work with a series of related images either on film, tape, or other embodiment, where the images shown in succession impart an impression of motion together with accompanying sound, if any, which is produced, adapted, or altered for exploitation as entertainment, advertising, promotional, industrial, or educational media; and a `motion picture company' means a company generally engaged in the business of filming or producing motion pictures;

(44)(15) electricity used to irrigate crops;

(45)(16) gross proceeds from the sale of building materials, supplies, fixtures, and equipment for the construction, repair, or improvement of or that become a part of a self-contained enclosure or structure specifically designed, constructed, and used for the commercial housing of poultry or livestock.

(46) War memorials or monuments honoring units or contingents of the Armed Forces of the United States or of the National Guard, including United States military vessels, which memorials or monuments are affixed to public property;

(48) solid waste disposal collection bags required pursuant to the solid waste disposal plan of a county or other political subdivision if the plan requires the purchase of a specifically designated containment bag for solid waste disposal;"

SECTION . The additional revenue generated each fiscal year beginning on July 1, 1996, as determined by the State Treasurer from the amendments to Sections 12-36-2110 and 12-36-2120 of the 1976 Code as contained in this act must be transferred from the state general fund to the credit of the Property Tax Relief Fund herein established and used for purposes of the fund.

SECTION . Sections 11-11-330 and 12-37-251 and Chapter 10 of Title 4 of the 1976 Code are repealed on July 1, 1996./

Amend the Report further, as and if amended by striking SECTION 11 and inserting:

/SECTION 11. This act takes effect upon approval by the Governor, except that the amendments to or additions of Article 10, Chapter 36 of Title 12, and Sections 12-36-2110 and 12-36-2120 take effect July 1, 1996./

Renumber sections to conform.

Amend totals and title to conform.

Rep. FLEMING explained the amendment.

Rep. SIMRILL moved to table the amendment.

Rep. FLEMING demanded the yeas and nays, which were not ordered.

The amendment was then tabled by a division vote of 64 to 9.

Rep. RICHARDSON proposed the following Amendment No. 14 (Doc Name L:\council\legis\amend\JIC\5680HTC.95), which was tabled.

Amend the report, as and if amended, by striking SECTIONS 4, 5, 6, and 7 in their entirety.

Renumber sections to conform.

Amend title to conform.

Rep. RICHARDSON explained the amendment.

Rep. H. BROWN moved to table the amendment.

Rep. RICHARDSON demanded the yeas and nays, which were not ordered.

The amendment was then tabled by a division vote of 64 to 24.

Amend the bill, as and if amended, by adding an appropriately numbered section to read:

/SECTION ( ). The 1976 Code is amended by adding:

"Section 12-47-75. If a taxpayer or his agent pays property taxes in error, or the payment is erroneously credited, the treasurer shall credit the amount paid against the actual liability of the taxpayer for the tax year in question. This section applies for any tax year for which proof is provided."/

Amend title to conform.

Rep. MARTIN explained the amendment.

The amendment was then adopted.

Rep. RICHARDSON proposed the following Amendment No. 16 (Doc Name L:\council\legis\amend\JIC\5682HTC.95), which was tabled.

Amend the report, as and if amended, by striking Section 12-37-251, as contained in SECTION 1, beginning on page 3651-2, and inserting:

/Section 12-37-251. Amounts appropriated annually in the State Property Tax Relief Fund must be used to provide a credit against the property tax liability of each parcel of owner-occupied residential property assessed pursuant to Section 12-43-220(c) in the manner provided in this section. Revenues in the State Property Tax Relief Fund must be distributed to each county in the proportion that the total appraised value of property in the county assessed pursuant to Section 12-43-220(c) bears to the total appraised value of such property statewide. Each county's distribution must be used to provide a credit against the annual property tax liability of each parcel of Section 12-43-220(c) property in the county in an amount calculated by multiplying the county's annual distribution by a fraction in which the numerator is the appraised value of the parcel and the denominator is the total appraised value of Section 12-43- 220(c) property in the county. The credit must be separately stated on the property tax bill. The distribution to a county under this section must be credited to the taxing entities in the county in the proportion that the property tax revenue of each entity is of the total property tax revenue of all taxing entities in the county./

Renumber sections to conform.

Amend title to conform.

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

Rep. KIRSH proposed the following Amendment No. 17 (Doc Name L:\council\legis\amend\JIC\5686HTC.95), which was adopted.

Amend the report, as and if amended, SECTION 10, page 3651-8, by adding at the end of line 32 /Upon issuing its report, the committee terminates./

Renumber sections to conform.

Amend title to conform.

Rep. KIRSH explained the amendment.

The amendment was then adopted.

Rep. KIRSH proposed the following Amendment No. 18 (Doc Name L:\council\legis\amend\JIC\5687HTC.95).

Amend the bill, as and if amended, by adding a new SECTION, appropriately numbered, to read:

/SECTION ___. Article 1, Chapter 7, Title 2 of the 1976 Code is amended by adding:

"Section 2-7-130. A bill or joint resolution raising an existing state tax or imposing a new state tax must receive a vote of at least two-thirds of the membership of each house."/

Renumber sections to conform.

Amend title to conform.

Rep. KIRSH explained the amendment.

Rep. SHEHEEN spoke against the amendment.

Rep. KIRSH moved to adjourn debate upon the amendment, which was adopted.

Rep. LIMBAUGH proposed the following Amendment No. 19 (Doc Name L:\council\legis\amend\GJK\21587SD.95), which was adopted.

Amend the Report of the Committee on Ways and Means, as and if amended, in Section 59-73-35 of the 1976 Code as contained in SECTION 7 by adding a new subsection to be appropriately numbered to read:

/( ) the provisions of this section do not apply to a school district and the governing body thereof which determines its annual budget and the

Renumber sections to conform.

Amend totals and title to conform.

Rep. LIMBAUGH explained the amendment.

The amendment was then adopted.

Rep. ROGERS proposed the following Amendment No. 20 (Doc Name L:\council\legis\amend\JIC\5683HTC.95), which was adopted.

Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

/SECTION ___. A. The first paragraph of Section 12-43-220(c) of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:

"The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, is taxed on an assessment equal to four percent of the fair market value of the property. If residential real property is held in trust and the income beneficiary of the trust occupies the property as a residence, then the assessment ratio allowed by this item applies if the trustee certifies to the assessor that the property is occupied as a residence by the income beneficiary of the trust. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for taxes on the leased property, then the property upon which he is liable for taxes, not to exceed five acres contiguous to his legal residence, must be assessed at the same ratio provided in this item. If this property has located on it any rented mobile homes or residences which are rented or any business for profit, this four percent value does not apply to those businesses or rental properties. This subsection (c) is not applicable unless the owner of the property or his agents make written application apply therefor to the county assessor on or before the first penalty date for taxes due for the first tax year in which the assessment under this article is made and certify to the following statement: `Under the penalty of perjury I certify that I meet the qualifications for the special assessment ratio for a legal residence as of January first of for the appropriate tax year'.

B. This act takes effect upon approval by the Governor and applies with respect to property tax years beginning after 1994./

Renumber sections to conform.

Amend totals and title to conform.

Rep. ROGERS explained the amendment.

The amendment was then adopted.

Rep. McABEE proposed the following Amendment No. 21, which was tabled.

Amend the bill, as and if amended, by deleting Section 9 and inserting:

SECTION 9. Chapter 1, Title 6 of the 1976 Code is amended by adding:

A. "Section 6-1-80. (A) The counties, municipalities, special purpose or public service districts and school districts of this State must provide notice to the public by advertising the public hearing before the adoption of its budget for the next fiscal year in the nonclassified section in at least one South Carolina newspaper of general audited circulation in the area. The public hearing must give the residents of the jurisdiction the opportunity to express their concerns and to provide ideas or input for discussion by the local governing entity. This notice must be given not less than fifteen days in advance of the public hearing, and must be a minimum of two columns by ten inches (four and one-half by ten inches) with a bold headline.

(B) The notice shall include the following:

(1) the governing entity's name;

(2) the time, date and location of the public hearing on the budget;

(3) the total revenues and expenditures from the current operating fiscal year's budget of the governing entity;

(4) the proposed total projected revenue and operating expenditures for the next fiscal year as estimated in next year's budget for the governing entity;

(5) the proposed or estimated percentage change in operating budgets between the current fiscal year and the proposed budget;

(7) the estimated millage in dollars as necessary for the next fiscal year's proposed budget; and

(8) estimated local option sales tax credit, if applicable.

B. This section becomes effective for budgets prepared for fiscal years beginning after July 1, 1995.

Renumber sections & amend title to conform.

Rep. McABEE explained the amendment.

Rep. H. BROWN moved to table the amendment.

Rep. McABEE demanded the yeas and nays, which were not ordered.

The amendment was then tabled by a division vote of 54 to 38.

Reps. LANFORD, BAILEY and KNOTTS proposed the following Amendment No. 22 (Doc Name L:\council\legis\amend\JIC\5631HTC.95).

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:

Section 12-36-1110. An additional sales, use, and casual excise tax equal to two percent of gross proceeds of sales or sales price is imposed pursuant to this chapter. Of the total revenue of the tax imposed by this article, an amount equal to 24.6 percent must be credited to the general fund of the State and 6.1 percent must be credited to the Education Improvement Act Fund. The remaining revenues must be credited to the State Property Tax Relief Fund in the State Treasury, a fund separate and distinct from the general fund of the State, and the revenue in this fund must be used to reimburse property taxing governmental entities for the revenues not collected as a result of the homestead exemption allowed pursuant to Section 12-37-251. Reimbursements must be made from the fund in the manner that reimbursements are made pursuant to Section 12-37-270, mutatis mutandis. If insufficient revenues are available in the fund to provide the full reimbursement, the difference must be made up from the general fund of the State and the general fund must be reimbursed from revenues accruing in the State Property Tax Relief Fund."

SECTION 2. Section 12-36-940 of the 1976 Code is amended to read:

"Section 12-36-940. Every retailer may add to the sales price:

(1) no amount on sales of ten cents or less;

The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect from the purchaser does not relieve the taxpayer from the tax levied by this article.

A retailer may add the amount of the tax to the sales price and the department shall prescribe tables providing the amount to be added to the sales price consistent with the total rate of the tax."

SECTION 3. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( ) food items eligible for purchase with United States Department of Agriculture food coupons, not including restaurant meals."

SECTION 4. Chapter 10, Title 4 of the 1976 Code is repealed.

SECTION 5. Article 3, Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-251. There is exempt from property tax one hundred percent of the fair market value of property assessed for ad valorem taxes pursuant to Section 12-43-220(c)."

SECTION 6. Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-75. In addition to any other limit imposed on the revenue raising power of municipalities, counties, and school districts, the governing body of a municipality or county, and the governing body authorized by law to levy school taxes may not impose for any property tax year millage in excess of the millage it imposed for the preceding tax year except upon a three-fifths majority vote of the governing body."

SECTION 7. Sections 1 through 4 of this act take effect July 1, 1995. Section 5 of this act is effective for property tax years beginning after 1994. Section 6 takes effect upon approval by the Governor./

Amend title to conform.

| Printed Page 1910, Mar. 22 | Printed Page 1930, Mar. 22 |