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COMMITTEE REPORT
April 5, 2001
H. 3733
S. Printed 4/5/01--H.
Read the first time March 20, 2001.
To whom was referred a Bill (H. 3733) to amend Section 12-37-251, Code of Laws of South Carolina, 1976, relating to the residential property tax exemption, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT1
This bill would require an additional $13,727,578 to fund the $100,000 school operations exemption for fiscal year 2001.
Explanation
In fiscal year 1999, school districts received $237,849,369 for the $100,000 school operations exemption. In fiscal year 2000 school districts received $251,576,947 for the $100,000 school operations exemption. Last year, the homestead exemption given to persons 65 and over, blind or disabled was increased from $20,000 to $50,000. This increased the amount of money a person received from the homestead exemption but, in some cases, decreased the amount of money a person would receive from the $100,000 school operations exemption. This decrease lowered the total amount of money for the $100,000 school operations exemption. The $100,000 school operations exemption is currently distributed on a per capita basis with no district receiving less than it did in fiscal year 1998-99. School districts that received more than their per capita amount were frozen at the amount received in fiscal year 1998-99. School districts that were not receiving their full per capita amounts shared the yearly increase in the $100,000 school operations exemption among themselves on a per capita basis. Last year's raising of the homestead exemption from $20,000 to $50,000 lowered the amount of money in the $100,000 school operations exemption. Those school districts that were not frozen are projected to receive in FY 2001 the same amount they received in fiscal year 1999. Recall that in FY 1999 school districts received $237,849,369 for the $100,000 school operations exemption and in FY 2000 they received $251,576,947. These unfrozen school districts will receive $13,727,578 less in fiscal year 2001 than they received in fiscal year 2000 for the $100,000 school operations exemption. However, they will receive some additional money from the $50,000 homestead exemption. In order for the unfrozen school districts to receive at least the amount they received for the $100,000 school operations exemption in fiscal year 2000, this bill would have to be effective this fiscal year and the $13,727,578 would have to be available this fiscal year.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND SECTION 12-37-251, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RESIDENTIAL PROPERTY TAX EXEMPTION, SO AS TO REVISE THE "HOLD HARMLESS" BASE YEAR IN THE REIMBURSEMENT DISTRIBUTION FORMULA FROM AMOUNTS RECEIVED BY SCHOOL DISTRICTS IN FISCAL YEAR 1998-99 TO AMOUNTS RECEIVED IN THE PRECEDING FISCAL YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-251(B)(2) of the 1976 Code is amended to read:
"(2) School districts must be reimbursed on a per capita basis, but a district may not receive as a reimbursement for a the current fiscal year an amount less than the actual reimbursement amount it received in the preceding fiscal year 1998-99. If amounts credited to the Trust Fund for Tax Relief for a fiscal year pursuant to item (1) of this subsection are insufficient to pay the full amount of the reimbursements provided by this item, then all amounts credited to the trust fund for a fiscal year for this reimbursement in excess of the amount of the reimbursements paid pursuant to this section in fiscal year 1998-99 must be allocated only to those districts receiving less than the full per capita reimbursement, and this allocation must be on a per capita basis among only those counties receiving some part of this allocation."
SECTION 2. This act takes effect upon approval by the Governor.
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