South Carolina General Assembly
116th Session, 2005-2006

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Bill 985

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

March 1, 2006

S. 985

Introduced by Senator Leatherman

S. Printed 3/1/06--S.

Read the first time January 10, 2006.

            

THE COMMITTEE ON FINANCE

To whom was referred a Bill (S. 985) to amend Section 6-1-530(b) of the 1976 Code, relating to the use of revenue from the local accommodations tax, to provide that a county, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass with amendment:

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

/        SECTION    1.    Section 6-1-530(B) of the 1976 Code is amended to read:

"(B)(1)        In a county in which at least nine hundred thousand dollars in accommodations taxes is collected annually pursuant to Section 12-36-920, the revenues of the local accommodations tax authorized in this article may also be used for the operation and maintenance of those items provided in (A)(1) through (6) including police, fire protection, emergency medical services, and emergency-preparedness operations directly attendant to those facilities.

(2)    In a county in which less than nine hundred thousand dollars in accommodations taxes is collected annually, an amount not to exceed twenty percent of the revenue in the preceding fiscal year of the local accommodations tax authorized in this article may also be used for the operation and maintenance of those items provided in (A)(1) through (6) including police, fire protection, emergency medical services, and emergency-preparedness operations directly attendant to those facilities."

SECTION    2.    This act takes effect upon approval by the Governor.                /

Renumber sections to conform.

Amend title to conform.

HUGH K. LEATHERMAN, SR. for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

EXPLANATION OF IMPACT:

Enactment of this bill would have no impact on the General Fund of the State, or on federal and/or other funds.

LOCAL GOVERNMENT IMPACT:

Enactment would have no direct impact on local expenditures. The Bill is permissive in nature and does not require the expenditure of any additional funds.

SPECIAL NOTES:

The Board of Economic Advisors is the appropriate entity to address any revenue impact associated with this bill.

Approved By:

Don Addy

Office of State Budget

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT 1/

This bill has no impact on state general fund revenue in FY2006-07.

Explanation

This bill would amend Section 6-1-530(B) to lower the annual threshold a county must meet from the collection of accommodation taxes to be used for an exclusive list of operations and maintenance purposes allowed by law from a minimum $900,000 to $100,000 each year. There are six counties collecting more than $900,000 in state accommodations taxes - Beaufort, Charleston, Georgetown, Greenville, Horry, and Richland. Total state accommodations taxes (2%) amounted to $36,836,246 in FY2004-05. This bill would allow funds to be used for tourism-related projects pursuant to Section 6-1-530(A)(1) through (6) including, but not limited to, civic centers, coliseums, beach access and renourishment, highways, roads, streets, bridges, tourism advertisements, and water and sewer infrastructure. Funds could also be used for police, fire protection, emergency medical services, and emergency-preparedness operations directly attendant to those facilities. Lowering the threshold from $900,000 to $100,000 per year would have permitted an additional 17 counties to use accommodation taxes for operations and maintenance purposes in FY2004-05. This bill has no impact on state general fund revenue in FY2006-07.

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 by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.

A BILL

TO AMEND SECTION 6-1-530(B) OF THE 1976 CODE, RELATING TO THE USE OF REVENUE FROM THE LOCAL ACCOMMODATIONS TAX, TO PROVIDE THAT A COUNTY WHICH COLLECTS ONE HUNDRED THOUSAND DOLLARS IN ACCOMMODATIONS TAXES MAY USE THE REVENUE COLLECTED FOR THE OPERATION AND MAINTENANCE OF THE ITEMS LISTED IN 6-1-530(A) AND POLICE, FIRE PROTECTION, EMERGENCY MEDICAL SERVICES, AND EMERGENCY-PREPAREDNESS OPERATIONS DIRECTLY ATTENDANT TO THOSE FACILITIES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 6-1-530(B) of the 1976 Code is amended to read:

"(B)    In a county in which at least nine one hundred thousand dollars in accommodations taxes is collected annually pursuant to Section 12-36-920, the revenues of the local accommodations tax authorized in this article may also be used for the operation and maintenance of those items provided in (A)(1) through (6) including police, fire protection, emergency medical services, and emergency-preparedness operations directly attendant to those facilities."

SECTION    2.    This act takes effect upon approval by the Governor.

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