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H. 5210
STATUS INFORMATION
General Bill
Sponsors: Reps. Bales, J. Brown, Cotty, Howard, Lourie, J.H. Neal, Rutherford, Scott and J.E. Smith
Document Path: l:\council\bills\gjk\21188sd04.doc
Introduced in the House on May 5, 2004
Introduced in the Senate on June 1, 2004
Last Amended on May 27, 2004
Currently residing in the Senate Committee on Finance
Summary: Richland County School District Property Tax Relief Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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5/5/2004 House Introduced, read first time, placed on calendar without
reference HJ-31
5/6/2004 Scrivener's error corrected
5/11/2004 House Debate adjourned until Wednesday, May 12, 2004 HJ-27
5/12/2004 House Debate adjourned HJ-16
5/12/2004 House Debate adjourned until Thursday, May 13, 2004 HJ-35
5/13/2004 House Debate adjourned until Tuesday, May 18, 2004 HJ-13
5/19/2004 House Debate adjourned until Thursday, May 20, 2004 HJ-42
5/20/2004 House Debate adjourned until Tuesday, May 25, 2004 HJ-51
5/25/2004 House Debate adjourned until Wednesday, May 26, 2004 HJ-26
5/26/2004 House Debate adjourned until Thursday, May 27, 2004 HJ-13
5/27/2004 House Amended
5/27/2004 House Read second time
5/27/2004 House Unanimous consent for third reading on next legislative
day
5/28/2004 House Read third time and sent to Senate HJ-1
5/28/2004 Scrivener's error corrected
6/1/2004 Senate Introduced and read first time SJ-14
6/1/2004 Senate Referred to Committee on Finance SJ-14
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
5/5/2004
5/5/2004-A
5/6/2004
5/27/2004
5/28/2004
AMENDED
May 27, 2004
H. 5210
Introduced by Reps. Bales, J. Brown, Cotty, Howard, Lourie, J.H. Neal, Rutherford, Scott and J.E. Smith
S. Printed 5/27/04--H. [SEC 5/28/04 4:32 PM]
Read the first time May 5, 2004.
TO ENACT THE RICHLAND COUNTY SCHOOL DISTRICT PROPERTY TAX RELIEF ACT BY ALLOWING THE IMPOSITION OF A SALES AND USE TAX EQUAL TO ONE PERCENT OF GROSS SALES IN RICHLAND COUNTY FOLLOWING APPROVAL OF THE TAX BY THE QUALIFIED ELECTORS OF THE COUNTY IN A REFERENDUM HELD AT THE TIME OF THE 2004 GENERAL ELECTION, TO PROVIDE THAT THE TAX IS IMPOSED FOR SEVEN YEARS AND MAY BE EXTENDED OR REIMPOSED BY THE GENERAL ASSEMBLY BY LAW, TO PROVIDE THAT THE TAX IS IMPOSED IN THE SAME MANNER AND WITH THE SAME EXEMPTIONS AND MAXIMUM TAXES APPLICABLE FOR THE FIVE PERCENT STATE SALES AND USE TAX WITH AN ADDITIONAL EXEMPTION FROM THE ONE PERCENT TAX FOR FOOD WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE THAT THE REVENUE OF THE TAX MUST BE ALLOTTED TO THE SCHOOL DISTRICTS OF RICHLAND COUNTY BASED ON AVERAGE DAILY NUMBER OF STUDENTS RESIDING IN THAT PORTION OF THE DISTRICT THAT IS IN RICHLAND COUNTY AND ALSO BASED ON THE POPULATION OF THE DISTRICT, TO PROVIDE THAT THE REVENUE MUST BE USED TO PROVIDE A CREDIT AGAINST THE SCHOOL TAX LIABILITY FOR PROPERTY IN THE DISTRICT AND TO PROVIDE THE METHOD OF CALCULATING THE CREDIT, AND TO PROVIDE THAT REFERENDUMS TO APPROVE MILLAGE INCREASES OR BOND AUTHORIZATIONS FOR ANY PURPOSE IN RICHLAND COUNTY MAY ONLY BE HELD ON THE FIRST TUESDAY WHICH FOLLOWS THE FIRST MONDAY IN NOVEMBER OF A PARTICULAR YEAR.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be cited as the Richland County School District Property Tax Relief Act.
SECTION 2. The General Assembly finds:
(1) The school districts in Richland County have substantial differences in per-pupil assessed value of property.
(2) All of the school districts in Richland County have school facilities needs.
(3) The disparity in millage rates between school districts imposes heavy burdens on some of the taxpayers in the county and discourages economic development in portions of the county.
(4) In order to address these concerns, the General Assembly finds that a sales tax, with the revenues being distributed to school districts on the basis of enrollment and population will substantially reduce property tax liabilities in all districts and alleviate the disparity in property tax rates among districts in the county. Accordingly, this act is intended to provide the residents of Richland County with an option to impose a sales and use tax of one percent and to use the proceeds of the tax to provide a credit against school taxes levied for operations and debt service.
SECTION 3. (A) Subject to the requirements of this act and the referendum required by it, there is imposed a special sales and use tax of one percent to raise revenue to allow the property tax credit provided in this act. The special sales and use tax authorized by this act is imposed for seven years, beginning January 1, 2005, but it may be reimposed or extended by the General Assembly by law.
(B) The January 1, 2005, beginning date of this special sales and use tax of one percent may be delayed for up to sixty days by the Department of Revenue if it determines that the logistics of setting up the collection of this tax in Richland County cannot be completed by January 1, 2005.
SECTION 4. (A) A referendum to impose a one percent special sales and use tax as authorized by this act must be held at the time of the 2004 general election.
(B) The Richland County Election Commission shall conduct the referendum on the question of imposing the special sales and use tax in the county. Notice of the election must be provided in the manner provided by the general election law and include the question to be voted upon in the referendum.
(C) The question to be voted upon in the referendum must read substantially as follows:
"Shall a special sales and use tax of one percent be imposed in Richland County for seven years beginning January 1, 2005, to raise revenue which must be used to provide a credit against the property taxes levied on taxable property in each school district of the county for school debt service and school operations?
The ballot, in the discretion of the election commission may contain a short explanation of the question to be voted upon in the referendum and the estimated impact of the tax, based on information from the South Carolina Department of Revenue as to the available revenues on existing liabilities.
(D) All qualified electors desiring to vote in favor of imposing the tax shall vote "yes" and all qualified electors opposed to levying the tax shall vote "no". Upon receipt of the returns of the referendum, the election commission shall certify the results and file the resolution with the Richland County Clerk of Court and the South Carolina Department of Revenue. The certified results of the referendum are not open to question except by a civil action instituted within twenty days of the certification of the results by the county election commission. If a majority of the votes cast are in favor of imposing the tax, then the tax is imposed as provided in this act; otherwise the tax is not imposed.
SECTION 5. (A) If the tax is approved in the referendum, the tax except as otherwise provided must be imposed beginning upon the first day of January following the filing of the certified results of the referendum with the Department of Revenue.
(B) The tax terminates on the seventh anniversary of its imposition, unless extended as provided in this act.
SECTION 6. (A) The tax levied pursuant to this act must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe the amounts which may be added to the sales price because of the tax.
(B) The tax authorized by this act is in addition to all other local sales and use taxes and applies to the gross proceeds of the sales in the applicable jurisdiction which are subject to the tax imposed by Chapter 36, Title 12 of the 1976 Code and the enforcement provisions of Chapter 54, Title 12 of the 1976 Code. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 of the 1976 Code are exempt from the tax imposed by this act. The gross proceeds of the sale of food which may lawfully be purchased with United States Department of Agriculture food coupons are exempt from the tax imposed by this act. The tax imposed by this act also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12 of the 1976 Code.
(C) Taxpayers required to remit taxes under Article 13, Chapter 36, Title 12 of the 1976 Code shall identify the county in which the tangible personal property purchased at retail is stored, used, or consumed in this State.
(D) Utilities are required to report sales in the county in which consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920 of the 1976 Code, who owns or manages rental units in more than one school district shall separately report in his sales tax return the total gross proceeds from business done in each school district.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this act in the school district, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the special local sales and use tax provided in this act if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition of the special local sales and use tax.
(G) Notwithstanding the imposition date of the special local sales and use tax authorized pursuant to this act, with respect to services that are regularly billed on a monthly basis, the special sales and use tax is imposed beginning on the first day of the billing period beginning on or after the imposition date.
SECTION 7. (A) The revenues of the tax collected in the county pursuant to this act must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the Richland County Treasurer. Upon receipt of these funds, the county treasurer shall deposit these funds in a separate account for each school district as follows:
(1) sixty percent of the funds received during a year shall be credited to each school district on the basis of the school district's prior year's one hundred thirty-five-day average daily membership (ADM) as compared to the total prior year's ADM of all school districts in the county excluding from the calculations the ADM attributable to any portion of a school district not within Richland County;
(2) forty percent of the funds received during a year shall be credited to each school district based on the district's Richland County population according to the 2000 Census as compared to the population of the county as a whole according to the 2000 Census;
(3) beginning with the first day of the quarter immediately following the adoption by law of the 2010 Census as official, the sixty/forty percentage split contained in items (1) and (2) above is changed to a fifty/fifty split.
(B) The State Treasurer and the county treasurer may correct misallocation of costs, refunds, distributions, or credits by adjusting subsequent costs, refunds, distributions, or credits.
(C)(1) The revenues allotted to a district must be used to provide a credit against the school property tax liability on property taxable in the district in an amount determined by multiplying the appraised value of the taxable property by a fraction in which the numerator is the total estimated revenue allotted to the district during the applicable fiscal year of the district and the denominator is the total of the appraised value of taxable property in the district as of January first of the applicable property tax year. For motor vehicles subject to the payment of property taxes pursuant to Article 21, Chapter 37 of Title 12 of the 1976 Code, the credit provided under this subsection applies against the tax liability for motor vehicle tax years beginning after December of the year in which the credit is calculated. The credit applies first against the liability arising from millage imposed for debt service for schools, then against any liability arising from other methods of financing school capital projects, then against school building lease-purchase obligations, and finally against any liability arising from school operations.
(2) For purposes of this credit, school property tax liability does not include any liability to pay a fee in lieu of property taxes and taxable property does not include exempt property for which the owner must pay a fee in lieu of property tax.
(3) All interest accruing to the credit funds allotted to a district must be used to provide an additional credit as provided in this section.
(D) The credit provided by this act is in addition to any ad valorem school tax reductions provided by the Trust Fund for Tax Relief, and to the extent no ad valorem property tax liability remains after applying the reduction provided by the Trust Fund for Tax Relief, then the credit provided by this act may be applied against other property tax liability.
SECTION 8. The Department of Revenue shall furnish data to the State Treasurer and to the school districts receiving tax revenues pursuant to this act for the purpose of calculating distributions and estimating revenues. The information which must be supplied to each school district upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240 of the 1976 Code. A person violating this section is subject to the penalties provided in Section 12-54-240 of the 1976 Code.
SECTION 9. Each board of trustees of the three Richland County school districts shall annually report to the Richland County Legislative Delegation the amount of revenue allocated to the district and the extent of the tax credits which reduced school tax liabilities that were realized from such revenue.
SECTION 10. The provisions of this act also expire and the special one percent sales and use tax if implemented shall no longer be authorized as of the first day of the year in which the State of South Carolina through the imposition of a statewide increase in the sales and use tax above five percent provides or will provide directly or indirectly school millage ad valorem property tax reductions to the taxpayers of the county as determined by the Department of Revenue at least equal to the total tax credit relief provided to such taxpayers by the provisions of this act.
SECTION 11. Notwithstanding any other provision of law, referendums to approve millage increases for any purpose or bond authorizations for any purpose in Richland County may only be held on the first Tuesday which follows the first Monday in November of a particular year.
SECTION 12. The provisions of this act are declared to be severable and if any one or more of the provisions are deemed to be invalid by a court of competent jurisdiction, then the remainder of the provisions are deemed to be of full force and effect and are a full and complete authorization to the extent of this intent.
SECTION 13. Chapter 10 of Title 4 of the 1976 Code is amended by adding:
Section 4-10-400. This act may be cited as the South Carolina School Districts Property Tax Relief Act.
Section 4-10-405. For purposes of this article, the following terms and words are defined as follows:
(A) 'Board of Trustees' means the governing body of a school district.
(B) 'County' means a county within which the sales and use tax authorized by this article is imposed.
(C) 'County Auditor' means the county auditor of the county.
(D) 'County Treasurer' means the county treasurer of the county.
(E) 'Election authority' means the authority charged with the conduct of countywide elections within the county.
(F) 'School district' means a school district located wholly or partially in a county.
Section 4-10-410. Subject to the requirements of this article, there may be imposed a one percent sales and use tax within a county for the distribution to the school districts located wholly or partially therein. The proceeds of the tax must be distributed to the school districts as provided in this article. The board of trustees of a school district, before the expenditure of the proceeds of the tax authorized by this article, must by resolution determine the specific purposes for which the proceeds of the tax distributed to that school district must be expended. However, in any case the proceeds only must be applied to reduce ad valorem property taxes imposed to pay debt service on general obligation bonds of that school district issued prior to or following a referendum authorized in Section 4-10-420 of this article, or otherwise defray the cost of capital improvements within that school district.
Section 4-10-420. (A) The tax authorized by this article may be imposed within a county upon the adoption of an approving resolution by the boards of trustees of each school district, and the subsequent approval of the imposition of the tax by referendum open to all qualified electors residing in the county.
The approving resolutions must specify the same period, stated in calendar years, not to exceed seven years, for which the tax must be imposed, the date upon which the referendum is held, the precincts and polling places for the referendum, and the question to appear on the referendum ballot. The approving resolutions, upon adoption, must be forwarded to the election authority. The referendums required by this article may only be conducted in even-numbered years at the same time as the general election or on the first Tuesday following the first Monday in November in odd-numbered years. The referendum must be conducted in the precincts and polling places established pursuant to law for the county in which the referendum is held.
(B) Each board of trustees of a school district must include in its resolution adopted pursuant to this section a description of the capital improvements and general obligation bonds to which sales and use tax proceeds allocated to that school district will be applied. Such descriptions may be noted on the ballot at the option of the board of trustees, but in any case shall be binding upon the school district.
(C) Upon receipt of approving resolutions from the boards of trustees of all school districts, the election authority shall conduct a referendum on the question of imposing the tax in the county. Notice of the election must be provided in the manner provided by the general election law and include the question to be voted upon in the referendum. Expenses of the referendum must be paid by the school districts, proportionally according to the number of persons residing in each school district who are registered to vote in the county.
(D) The ballot to be voted upon in the referendum must read substantially as follows:
Must a special one percent sales and use tax be imposed in _____ County for not more than ____ years with the revenue of the tax used to pay debt service on general obligation bonds of, or directly to defray the cost of capital improvements for, or both of these purposes, the (number) school districts (as further described below) in _____County?
The ballot may contain a short explanation of the question to be voted upon in this referendum.
(E) Upon receipt and certification of the returns of the referendum, the election authority shall by resolution certify the results of the referendum by resolution and within ten days thereafter file the resolution with the clerk of court for the county and with the South Carolina Department of Revenue. The result of the referendum, as declared by resolution of the election authority and as filed with the clerk of court, is not open to question except by a civil action instituted in the county within twenty days of the filing of the resolution. If a majority of the total votes cast are in favor of imposing the tax, then the tax is imposed as provided in this act; otherwise the tax is not imposed. A referendum within a county on the imposition of the tax authorized in this article must not be held on a Saturday and must not be held more than once in a period of twelve consecutive months.
Section 4-10-430. (A) If the tax is approved in the referendum, the tax must be imposed beginning upon the first day of the fourth full month following the filing of the declaration of results of the referendum with the Department of Revenue.
(B) The tax terminates upon the earlier of:
(1) the final day of the maximum time specified for the imposition; or
(2) sixty days following the filing with the Department of Revenue of certified copies of resolutions adopted by the boards of trustees of each of the school districts, each requesting termination of the tax.
Section 4-10-440. (A) The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The Department of Revenue may prescribe the amounts which may be added to the sales price because of the tax.
(B) The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of the sales in the county which are subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article. The gross proceeds of the sale of food which may lawfully be purchased with United States Department of Agriculture food coupons are exempt from the tax imposed by this article. The tax imposed by this article also applies to tangible personal property subject to the use tax in Chapter 36 of Title 12.
(C) Taxpayers required to remit use taxes under Chapter 36 of Title 12 shall identify the county in which the tangible personal property purchased at retail is stored, used, or consumed in this State.
(D) Utilities are required to report sales in the county in which consumption of the tangible personal property occurs.
(E) A taxpayer subject to the tax imposed by Section 12-36-920 who owns or manages rental units in more than one county shall separately report in his sales tax return the total gross proceeds from business done in each county.
(F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in the county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the special local sales and use tax provided in this section if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition of the special local sales and use tax.
(G) Notwithstanding the imposition date of the sales and use tax authorized pursuant to this article, with respect to services that are regularly billed on a monthly basis, the sales and use tax is imposed beginning on the first day of the billing period beginning on or after the imposition date.
Section 4-10-450. (A) The revenues of the sales and use tax collected under this article must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues monthly to the county treasurer for the benefit of the school districts in the amounts established in accordance with subsection (B) of this section. The State Treasurer may correct misallocation costs or refunds by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocation.
(B) The State Treasurer shall distribute proceeds of the tax, less amounts attributable to refunds and administration as provided in subsection (A) of this section to the county treasurer and thereafter by the county treasurer to the school districts located in the county in direct proportion to the one hundred thirty-five-day average daily membership of each of the school districts for the fiscal year immediately preceding that in which a distribution is made, as certified by the State Treasurer upon advice of the State Department of Education. For purposes of this section, the one hundred thirty-five-day average daily membership excludes any student not residing in the county.
(C) Except as provided in Section 4-10-460, withdrawals by the school districts of tax proceeds from the county treasurer must be made in the same manner as are funds appropriated to the school districts by the State. Pending these withdrawals, taxes must be deposited in accounts for each school district, separate and distinct from accounts established for any other purpose, and investment earnings derived from monies in such an account must be credited to the account. Each school district shall maintain records which demonstrate that tax proceeds are spent only for the purposes as approved by its board of trustees and in accordance with this article.
(D) The proceeds of the sales and use tax paid to the county treasurer for the benefit of that school district must be applied only for the purposes set forth in the resolution adopted pursuant to Section 4-10-420.
Section 4-10-460. (A) If a school district has provided in its resolution adopted pursuant to Section 4-10-420 that any portion of the proceeds of the sales and use tax allocated to it shall be applied to debt service on general obligation bonds, such school district shall notify the county treasurer in writing no later than the first day of August of each year of the amount of sales and use taxes to be applied to offset the debt service millage levy for such general obligation bonds. The amount so specified must not exceed the amount of sales and use tax proceeds held by the county treasurer for that school district as of the June thirtieth immediately preceding such first day of August. The notice applies only to debt service payments to be made in the eighteen-month period following that June thirtieth.
Upon receipt of notice from a school district pursuant to this section, the county treasurer shall certify to the county auditor, by the fifteenth day of August of the amount of sales and use taxes designated by the school district for application to general obligation bond debt service payments. The county auditor shall reduce the next levy of property taxes required to pay debt service on such general obligation bonds by the amount of sales and use tax revenues certified as held by the county treasurer and designated by the school district for the purpose. This amount of sales and use taxes thereafter must not be released to the school district, but must be held by the county treasurer to pay debt service on general obligation bonds. However, any sales and use taxes held by the county treasurer in excess of the amounts designated by the school district for payment of debt service on such general obligation bonds must be expended as directed by the school district in accordance with this article. Any investment earnings derived from the sales and use tax must be expended as directed by the school district in accordance with this article. Any sales and use taxes allocated to a school district and not required to accomplish the purposes described in the resolution of such school district adopted pursuant to Section 4-10-420 may be applied to debt service on any general obligation bonds of such school district. With respect to a school district situated in more than one county, the requirements of this section with respect to the reduction of millage levied for general obligation bonds apply with respect to the auditor and treasurer of each county in which the school district is located, and the levy of millage for debt service within a school district shall in all instances be uniform.
(B) If the school district presents the county treasurer with a surety bond or letter of credit from a financial institution which is rated in one of the two highest rating categories by two national ratings agencies, the county treasurer may treat the amount available under such surety as if it were taxes held by the county treasurer and shall provide the certificate called for in the foregoing paragraph to the auditor by including the amount available under the surety or letter of credit so long as such amount is not in excess of ninety percent of the actual sales and use taxes allocated to the school district in the prior fiscal year, or which would have been allocated if the sales and use tax had been in force for all of such prior fiscal year. The county auditor shall reduce the next levy of ad valorem property taxes required to pay debt service on bonds to which the tax is applicable by the amount so certified by the county treasurer. In the event the sales and use taxes thereafter allocated to the school district are less than the amount required to pay debt service on bonds during the eighteen-month period established in Section 4-10-460(A), the county treasurer shall draw upon such surety to provide for timely payment of such general obligation bonds. The costs of such surety, including any reimbursements for payments thereon, are deemed to be part of the debt service requirements for such general obligation bonds covered by such surety and may be paid from amounts available in the fund created in accordance with Section 4-10-460(A). Any reimbursement to the financial institution providing such surety may be paid from such fund from taxes collected in the year after any draw.
Section 4-10-470. The Department of Revenue, the State Department of Education, and the county auditor shall furnish data to the State Treasurer and to the school districts receiving tax revenues pursuant to this article for the purpose of calculating distributions and estimating revenues. The information which must be supplied to school districts upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240.
Section 4-10-480. The tax authorized herein may be renewed and imposed within a county in the same manner as proceedings for the initial imposition of the tax. A referendum on the question of reimposition of a tax shall not be held more than two years prior to the date upon the tax then in effect is scheduled to terminate, provided that any reimposition shall become effective immediately upon the termination of the tax previously imposed.
Section 4-10-485. Notwithstanding any other provision of this chapter to the contrary, any portion of the sales and use taxes received under this chapter by a school district and applied to debt service on bonds must be applied only in the following order of priority:
(1) to general obligation bonds issued before the referendum required pursuant to Section 4-10-420 and within the eight percent debt limitation provided by Article X, SECTION 15(6) of the Constitution of this State in order to defray the cost of improvements to which the sales and use tax authorized by the referendum may be applied; then
(2) to general obligation bonds issued following the referendum required pursuant to Section 4-10-420 and within the eight percent debt limitation provided by Article X, SECTION 15(6) of the Constitution of this State in order to defray the cost of improvements to which the sales and use tax authorized by the referendum may be applied; then
(3) to general obligation bonds approved by referendum held pursuant to Article X, SECTION 15(6) of the Constitution of this State in order to defray the cost of improvements to which the sales and use tax authorized by a referendum pursuant to Section 4-10-420 may be applied; then
(4) to any other general obligation bonds issued within the eight percent debt limitation provided by Article X, SECTION 15(6) of the Constitution of this State.
Section 4-10-487. A school district proposing to issue bonds that are intended to be repaid in full or in part with the sales tax authorized by this article must first obtain an estimate from the Board of Economic Advisors of the sales tax revenue that would be payable to that school district from the proceeds of the sales tax. This estimate must be included in the notice of referendum pursuant to Section 4-10-420 (C).
Section 4-10-490. This article shall be construed as cumulative and additional authority for the purposes described herein and shall not be construed to impliedly repeal any existing laws or prohibit the adoption of any additional laws with respect thereto, it being the purpose and intention of this article to create an additional and alternate method for the purposes herein named."
SECTION 14. This act takes effect upon approval by the Governor.
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