The Municipal Association board of directors, as recommended by the Association’s Legislative Committee, adopted the 2010 legislative agenda for cities and towns in South Carolina. The legislative agenda is focused on the three legislative principles of promoting economic growth, enhancing a positive quality of life and encouraging local accountability and fiscal responsibility. These locally-driven principles support the state’s efforts to create jobs and grow in the new knowledge economy.
Because this is the second year of a two-year session, the Association has a specific list of bills to work. These bills are tied to issues that directly affect municipalities’ ability to deliver services and provide amenities that residents, visitors and businesses demand.
Point of Sale
Point of sale is one of the Association’s biggest issues in the 2010 season. The point of sale provision which puts property on the tax rolls at the fair market value at the point of sale was first adopted with Act 388, the property tax reform bill of 2006. H3272 would eliminate point of sale from the law. This would limit increases in fair market value of sold properties to 15 percent at the point of sale. This is in addition to the existing cap of 15 percent over five years at reassessment.
The Association opposes this bill reported out of the Senate Finance Committee at the end of the 2009 session because it shifts the tax burden to property owners in slower appreciating neighborhoods and limits local governments’ ability to provide services residents and businesses require.
This proposed change in the state’s tax structure is not the fix for problems caused by Act 388. There is a group of public and private entities meeting to discuss the possibility of repealing Act 388. The Association has met with this group and will continue to be involved in these conversations. Bill: H3272
Municipal Finance Accountability
Two bills were introduced in 2009 related to municipal audits and other financial accountability issues. Last summer the Municipal Association board of directors formed a task force to make recommendations on legislation that would trigger assistance by a state commission for cities and towns in financial distress. The task force recommendations to H3839 will be added as an amendment to the bill. Bills: 3839, S699.
Annexation
Along with other stakeholders, the Association is involved in efforts to reach a compromise on reforming the state’s outdated annexation laws. Legislation allowing simplified annexation of enclaves is a top priority. The Association opposes several bills as currently written. Bills: H3253, H3074, H3774, S246, S247, S479
Cuts to the Local Government Fund
Last session, the General Assembly suspended the law that kept legislators from cutting the Local Government Fund below previous levels. During the upcoming year, the Association will follow the budget process closely to oppose any attempts to cut the Local Government Fund levels further.
Changes to business license fee structure
Legislators introduced several bills in 2009 affecting how business license fees are collected. These are similar to bills that have been introduced in the past, and none have seen action. The Association will continue to oppose any legislation that impedes municipalities’ ability to fairly impose and administer local business license taxes. Bills: H3053, H3243, S349
Capital project sales tax
In the past, the Association has supported legislation allowing cities and towns to pass their own capital project sales tax when a county has not passed it. While there are no current bills that include that specific language, there is a bill in a Senate committee that refers to the capital projects sales tax. Association staff will work with senators to amend the bill to include language regarding a capital project sales tax. Bill: S346
Expungement
A bill passed in 2009 requiring expungement of records when a defendant is found not guilty, charges were dismissed or the prosecutor decides not to pursue charges. As an unintended consequence, the bill includes expunging traffic tickets and DNR offenses. The Association supports amending this law by excluding traffic tickets and DNR offenses from current expungement laws. Bill: H4205, S912
Crime reduction
Several bills were introduced to protect residents from criminal activity. The Association will work with local law enforcement officials on these bills to strengthen their ability to protect residents of cities and towns. Bills: S191 (SC Reduction of Recidivism Act), S6 (bail conditions after release from incarceration).
Local accommodations and hospitality tax use for county operations
At the request of several cities and towns, the Association supports the effort to allow certain counties that meet specific requirements to use accommodations and hospitality tax revenue for operations and maintenance. Bill: S332
Accommodations and hospitality taxes as security for revenue bonds
The Association supported a bill last year to allow cities and towns to pledge accommodations and hospitality taxes as security for revenue bonds. The bill is in conference committee awaiting final action pending acceptance of a free conference report that the Association supports. Bill: S304, S332
Other issues supported by the legislative committee
The Municipal Association legislative committee also discussed other issues important to cities and towns. In the area of transportation, the committee discussed forging better relationships with the state Department of Transportation to avoid situations similar to the closing of I-385 and advocating for funding to improve I-26 and I-95 interstates, I-73 along the Grand Strand and other highway improvement funds.
Other issues include quality of life concerns such as abandoned cars and handicap parking ticket citations issued by local law enforcement. Changes in the Textile Revitalization Act were discussed along with the federal new market tax credits for economic development in low income areas. The Municipal Association will continue to work with the cities and towns concerned with these issues during the upcoming legislative session.