South Carolina Constitution Article X - Finance, Taxation & Bonded Debt
South Carolina Constitution – Article X: Finance, Taxation and Bonded Debt
Article X of the South Carolina Constitution governs how the state manages its public finances, taxation policies, and public debt (bonds). It sets legal and procedural limits on state and local financial activity to ensure accountability, fiscal responsibility, and transparency.
🔹 Key Sections and Provisions of Article X:
Here’s a summary of the major themes and provisions in Article X:
Section 1: Uniformity of Taxation
Requires uniform and equal taxation.
All property must be taxed based on fair market value, except for exempted types.
Section 2: Tax Exemptions
Lists types of property exempt from taxation, such as:
Public property
Churches
Charitable institutions
Schools
Cemeteries
Section 3: Assessment and Taxation
Mandates regular assessment of property.
Overseen by state or local tax authorities.
Section 4: Taxation of Corporations
Corporations are subject to taxation like individuals unless otherwise exempt.
Section 5: Levy of Taxes
Taxes can only be levied by law and must be used for public purposes only.
Section 6: Public Debt Limitation
The state may not incur public debt exceeding 5% of total revenue unless approved by:
A two-thirds vote of both houses of the General Assembly, or
A public referendum.
Section 7: Sinking Funds and Bond Issuance
Requires creation of sinking funds to repay bonds.
Sets rules on how and when bonds can be issued and repaid.
Section 11: Credit of State
The state may not lend its credit or guarantee private debts, except in narrow public-interest cases.
Section 14: Balanced Budget Requirement
Requires the state to pass a balanced budget each fiscal year.
Section 15: Reserve Funds
Establishes budget stabilization or “rainy day” funds to cover budget shortfalls.
Sections 16–18: Debt Limits for Counties, Cities, and School Districts
Local governments must follow strict limits on borrowing.
Additional debt can only be incurred through voter approval.
Section 20: Pension and Retirement Funds
Rules for managing state employee retirement systems.
Protects pension funds and requires proper actuarial standards.
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