From the Dome to Your Home: March 25, 2011
The House of Representatives was on furlough this week and did not meet in session, subcommittee or committee, while the Senate met in regular scheduled session and held committee meetings.
Highlights of the Week
Point of sale bills moving quickly – URGENT ACTION NEEDED NOW
Three point of sale bills have been introduced in the House of Representatives and the Senate. The Municipal Association staff is working to defeat H3713, S647 and S229. See below for the immediate action needed on this issue. Easy talking points are available here. Contact Melissa Carter (mcarter@masc.sc) at 803.933.1251 if you have questions about any of the point of sale bills.
- Senate point of sale bills
The Senate Finance Property Tax subcommittee met on Tuesday afternoon to consider S647 and S229. Thanks to Mayor Joe Riley (City of Charleston) and Mayor Doug Echols (City of Rock Hill) for coming to Columbia to testify against these two bills. The subcommittee amended S647 to remove the retroactivity language and gave this bill a favorable report. The subcommittee did not take action on S229.
Senator Paul Campbell (R – Goose Creek) introduced S647, a Senate version of the point of sale bill that is currently in the House (H3713), and Senator Ronnie Cromer (R – Newberry) introduced a second point of sale bill, S229. S229 caps increases in tax value of sold property at 15 percent at point of sale and again at reassessment. Both bills shift taxes to the middle class and owners of commercial properties with slowly appreciating property values and don’t solve the problems of the 15 percent reassessment cap.
The full Senate Finance committee is expected to meet early next week to consider S647. It is very important for ALL LOCAL OFFICIALS to contact the Senate Finance committee members this weekend to express their opposition to S647. Click here for talking points.
H3713 eliminates the point of sale reassessment meaning property values will no longer be “trued up” at the time of sale. Instead, the new owner (including a retroactivity provision for those who bought between 2007 and 2011) would inherit the tax exemption of the previous owner. Also, at reassessment, the new owner would receive another tax exemption if the value of the property has increased more than 15 percent since the last reassessment.
The full House Ways and Means committee is scheduled to meet on Tuesday, March 29, in room 521 of the Blatt building one hour and half after adjournment of the House. It is very important for ALL LOCAL OFFICIALS to contact members of the House Ways and Means committee this weekend to express their opposition to H3713. Click here for talking points.
Now is the time to call your local school board members and county council members to partner together against these bills. Local elected leaders also need to educate committee members on the negative effects of these bills which do not fix the problems brought about by the 15 percent reassessment cap in Act 388. Instead, they magnify the existing problems and raise additional concerns. After you talk to your House member or Senator, contact Casey Fields (cfields@masc.sc) at 803.933.1256 and let her know what they said about the bill.
IMPORTANT Hometown Connection Next Week
There is an important Hometown Connection meeting on Tuesday. Next week is going to be a critical one for committee meetings about the point of sale bills, and we need you in Columbia for this Hometown Connection. It's even more important if you have members on the House Ways and Means committee or the Senate Finance committee. The meeting will take place in the Association’s training room at 1411 Gervais Street. Cities and towns in Abbeville, Anderson, Cherokee, Chester, Edgefield, Fairfield, Greenville, Greenwood, Lancaster, Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Richland, Saluda, Spartanburg, Union and York counties are invited to attend. Even if your county is not on the list, please join us for this important legislative meeting. To register for this Hometown Connection, call or email Michelle Willm at 803.933.1259 or mwillm@masc.sc.
Weekly Bill Introductions
Committee Action This Week
The Association’s legislative team covered these bills in committee or subcommittee and provided testimony where needed. Click on the bill's link for a full chronology of amendments and committee progress.
Senate Judiciary committee
S461 – Funding for the administration of a model recycling program - favorable report with an amendment. The amendment changes the language of the bill so that instead of the exemption procedures being set by regulation, they are instead set by statute.
Summary of the bill as introduced: Requires holder of on-premises consumption alcohol permits to recycle each beverage container in accordance with the model recycling program through SC DHEC.
S30 – Allows only law enforcement agencies to seek arrest warrants – the subcommittee met but did not take action on the bill.
Summary of the bill as introduced: Prevents entities other than law enforcement agencies from seeking arrest warrants except in cases of fraudulent checks. If the check is presented to the magistrate at the time the warrant is sought, a warrant may be issued by the magistrate.
S263 – Motor vehicle offenses that result in death – the subcommittee met but did not take action on the bill.
Summary of the bill as introduced: Charges a driver with the misdemeanor offense of vehicular homicide if the person driving the motor vehicle does any act already forbidden by law while driving a vehicle that results in death.
H3625 – Prohibits serving on and being employed by a local board or commission – favorable report
Summary of the bill as introduced: Prohibits a person from serving on both the governing body of a state or local political subdivision board or commission and as an employee of the same board or commission.
S394 – Allows part-time masters-in-equity in cities with larger populations – the subcommittee met but did not take action on the bill.
Summary of the bill as introduced: Allows a part-time masters-in-equity in cities and counties with populations of 130,000 or greater. This bill also allows a county with a population more than 30,000 but less than 130,000 to have a part-time or full-time master-in-equity.
Senate Finance Property Tax subcommittee
S389 – Homestead property tax exemption for people residing elsewhere because of medical needs – carried over
Summary of the bill as introduced: Grants the homestead property tax exemption for a person that requires daily medical attention and it is necessary for the person to reside elsewhere.
S476 – Extends motor vehicle property tax exemptions for surviving spouses of disabled veterans – carried over
Summary of the bill as introduced: Extends the exemption for a private passenger motor vehicle owned by or leased to an eligible disabled veteran to such a vehicle owned or leased by the surviving spouse of the veteran.
Senate Finance Sales and Income Taxation subcommittee
S591 – State tax credit for hiring unemployed individuals receiving unemployment benefits – favorable report
Summary of the bill as introduced: Allows a state tax credit for employers hiring an unemployed individual receiving unemployment benefits.
S435 – Requires local governments to file periodic expenditure reports - favorable report with an amendment. The amendment clarifies that this legislation only applies to grant funds and not money paid for services or products.
Summary of the bill as introduced: Requires local governmental entities, agencies, organizations or individuals that receive, collect or spend public funds derived from state or local tax revenue to file periodic expenditure reports with the state or local governmental entity or agency that provided, collected or spent the public funds.
S211 – I-95 Corridor Authority Act – favorable report
Summary of the bill as introduced: Creates the authority to carry out economic development and educational improvement activities which, in the opinion of the authority, will improve the economic conditions in its member counties.
S145 – Limits the SC Department of Revenue's wage garnishment powers – carried over
Summary of the bill as introduced: Limits the Department of Revenue's wage garnishment powers to collection of an outstanding tax liability owed to a governmental entity.
Senate Agriculture and Natural Resources Environmental subcommittee
S497 – Dredging in certain canals by counties and municipalities – subcommittee met but did not take action on the bill.
Summary of the bill as introduced: Adds an exemption for maintenance dredging by counties or municipalities of certain canals if the dredging is authorized by the US Army Corps of Engineers
H3587 – Exempts maintenance dredging by counties and municipalities for certain canals – favorable report
Summary of the bill as introduced: Adds an exemption for maintenance dredging by counties or municipalities of certain canals if the dredging is authorized by the US Army Corps of Engineers.
Senate Transportation subcommittee
S158 – Revises the definition of motor vehicle dealer – carried over
Summary of the bill as introduced: Revises the definition of the term "dealer" or "motor vehicle dealer" in the code section related to motor vehicle manufacturers, distributors and dealers.
Senate Judiciary subcommittee
H3508 – Makes changes to the law relating to government-owned telecommunications service providers – subcommittee met but did not take action on the bill.
Summary of the bill as introduced: Clarifies that governments providing telecommunications services must comply with the 2002 Telecommunications Act and changes the definition of broadband.
Senate Finance Public Education subcommittee
S433 – Revises the index of taxpaying ability calculation - the subcommittee met but did not take action on this bill.
Summary of the bill as introduced: Revises the method of calculating the index of taxpaying ability for FY 2011-2012, FY 2012-2013 and FY 2013-2014 by imputing an index value for owner-occupied residential property assessed at four percent.
Senate Judiciary subcommittee
S14 – Prevents the General Assembly from increasing fines or penalties in the budget bill - subcommittee met but did not take action on the bill.
Summary of the bill as introduced: Prevents the General Assembly from increasing or implementing a fine or penalty in the budget bill. It requires a separate Act.
S372 – State Agency Deficit Prevention and Recognition Act – subcommittee met but did not take action on the bill.
Summary of the bill as introduced: Prohibits a state agency, department or institution from operating in a manner that results in a year-end deficit unless the deficit is recognized by the General Assembly.
Association Legislative Staff is on Twitter
Get the latest news from the State House each day by following the Municipal Association on Twitter - @MuniAssnSC. Staff will post updates on committee meetings and floor action throughout the day using the Association’s Twitter feed. If you are not on Twitter, you can still look at the postings by linking to http://twitter.com/MuniAssnSC.
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