H 3891 Session 112 (1997-1998)
H 3891 General Bill, By Robinson and Cooper
A BILL TO AMEND SECTIONS 12-24-20, 12-24-30, 12-24-40, AND 12-24-70, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO A DEED RECORDING FEES, SO AS TO
PROVIDE THAT THE FEE IS OWED BY THE GRANTEES IN THE CASE OF A DEED FROM A
MASTER-IN-EQUITY, FROM A GOVERNMENT OR ITS SUBDIVISIONS, OR FROM AN INTERNAL
REVENUE CODE TAX-EXEMPT RETIREMENT PLAN; TO CLARIFY THE MEANING OF "VALUE" AND
TO PROVIDE FOR THE ELECTION TO USE THE PROPERTY TAX ASSESSMENT OF FAIR MARKET
VALUE FOR PURPOSES OF CHAPTER 24; TO DELETE AND CLARIFY CERTAIN EXEMPTIONS
FROM THE RECORDING FEE ON DEEDS AND TO REDEFINE "FAMILY"; AND TO PROVIDE TO
CONTENTS OR AFFIDAVITS FILED IN CONNECTION WITH EXEMPT DEEDS.
04/09/97 House Introduced and read first time HJ-50
04/09/97 House Referred to Committee on Judiciary HJ-51
05/07/97 House Committee report: Favorable Judiciary HJ-31
05/13/97 House Debate adjourned until Wednesday, May 14, 1997 HJ-22
05/14/97 House Read second time HJ-15
05/15/97 House Debate adjourned HJ-17
05/20/97 House Read third time and sent to Senate HJ-18
05/20/97 Senate Introduced and read first time SJ-12
05/20/97 Senate Referred to Committee on Finance SJ-12
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 7, 1997
H. 3891
Introduced by Reps. Robinson and Cooper
S. Printed 5/7/97--H.
Read the first time April 9, 1997.
THE COMMITTEE ON JUDICIARY
To whom was referred a Bill (H. 3891), to amend Sections
12-24-20, 12-24-30, 12-24-40, and 12-24-70, Code of Laws of South
Carolina, 1976, relating to a deed recording fee, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and
recommend that the same do pass:
DOUG SMITH, for Committee.
A BILL
TO AMEND SECTIONS 12-24-20, 12-24-30, 12-24-40, AND
12-24-70, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO A DEED RECORDING FEE, SO AS TO
PROVIDE THAT THE FEE IS OWED BY THE GRANTEES
IN THE CASE OF A DEED FROM A MASTER-IN-EQUITY,
FROM A GOVERNMENT OR ITS SUBDIVISIONS, OR
FROM AN INTERNAL REVENUE CODE TAX-EXEMPT
RETIREMENT PLAN; TO CLARIFY THE MEANING OF
"VALUE" AND TO PROVIDE FOR THE ELECTION TO
USE THE PROPERTY TAX ASSESSMENT OF FAIR
MARKET VALUE FOR PURPOSES OF CHAPTER 24; TO
DELETE AND CLARIFY CERTAIN EXEMPTIONS FROM
THE RECORDING FEE ON DEEDS AND TO REDEFINE
"FAMILY"; AND TO PROVIDE FOR CONTENTS OF
AFFIDAVITS FILED IN CONNECTION WITH EXEMPT
DEEDS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 12-24-20 of the 1976 Code, as added
by Part II, Act 458 of 1996, is amended to read:
"Section 12-24-20. (A) Except as provided in subsection (B),
the fee imposed by this chapter is the liability of the
grantor, or the joint or and several
liability of the grantors, but the grantee is secondarily liable for
the payment of the fee.
(B) In the case of a master-in-equity deed, the liability
for a deed from the federal government, a state or any
of a state's political subdivisions, or a qualified retirement plan
exempt from income taxes under the Internal Revenue Code to
another person, the fee imposed by this chapter is on
the grantee or grantees the liability of the grantee, or
the joint and several liability of the grantees, and not the
grantor."
SECTION 2. Section 12-24-30 of the 1976 Code, as added
by Part II, Act 458 of 1996, is amended to read:
"Section 12-24-30. (A) For purposes of this chapter, the term
'value' means the realty's fair market value. In arm's-length
real property transactions, this value is the sales price
consideration paid or to be paid in money or money's
worth for the realty including other realty, personal
property, stocks, bonds, partnership interests and other
intangible property, the forgiveness or cancellation of a debt,
the assumption of a debt, and the surrendering of a right.
The fair market value of the consideration must be used in
calculating the consideration paid in money's worth.
Taxpayers may elect to use the fair market value of the realty
being transferred in determining fair market value of the
consideration under the provisions of this section. However, in
the case of realty transferred between a corporation, a
partnership, or other entity and its stockholder, partner, or
owner, and in the case of realty transferred to a trust or as a
distribution to a trust beneficiary, 'value' means the realty's fair
market value.
(B) A deduction from value is allowed for the amount of any
lien or encumbrance existing on the land, tenement, or realty
before the transfer and remaining on the land, tenement, or
realty after the transfer.
(C) Taxpayers may elect to use the fair market value as
determined for property tax purposes in determining fair market
value under the provisions of this section."
SECTION 3. Section 12-24-40 of the 1976 Code, as added
by Part II, Act 458 of 1996, is amended to read:
"Section 12-24-40. Exempted from the fee imposed by this
chapter are deeds:
(1) transferring realty to the federal government
in which the value of the realty, as defined in Section
12-24-30, is equal to or less than one hundred dollars;
(2) transferring realty to the federal government or to
a state, its agencies and departments, and its political
subdivisions, including school districts;
(3) that are otherwise exempted under the laws and
Constitution of this State or of the United States;
(4) transferring realty in which no gain or loss is
recognized by reason of Section 1041 of the Internal Revenue
Code as defined in Section 12-6-40(A);
(5) transferring realty from an agent to the agent's
principal in which the realty was purchased with the funds of
the principal in order to partition one contiguous piece
of realty, so long as no consideration is paid for the transfer
other than the interests in the realty that are exchanged in order
to effect the partition;
(6) transferring an individual grave space at a cemetery
owned by a cemetery company licensed under Chapter 55 of
Title 39;
(7) transferring realty to a member of the family or to
a family trust or to a family partnership. "Family"
means spouse, parents, sisters, brothers, grandparents,
grandchildren, and lineal descendants. A "family
trust" is a trust whose beneficiaries are all members of the
family of the transferor. A "family partnership" is
a partnership whose partners are all members of the family of
the transferor that constitute a contract for the sale of
timber to be cut;
(8) transferring realty to a legal heir or devisee
corporation, a partnership, or a trust as a stockholder,
partner, or trust beneficiary of the entity or so as to become a
stockholder, partner, or trust beneficiary of the entity so long as
no consideration is paid for the transfer other than stock in the
corporation, interest in the partnership, beneficiary interest in
the trust, or the increase in value in such stock or interest held
by the grantor. However, the transfer of realty from a
corporation, a partnership, or a trust to a stockholder, partner,
or trust beneficiary of the entity is subject to the fee, even if the
realty is transferred to another corporation, a partnership, or
trust;
(9) that constitute a contract for the sale of timber to be
cut transferring realty from a family partnership to a
partner or from a family trust to a beneficiary, so long as no
consideration is paid for the transfer other than a reduction in
the grantee's interest in the partnership or trust. A 'family
partnership' is a partnership whose partners are all members of
the same family. A 'family trust' is a trust in which the
beneficiaries are all members of the same family. The
beneficiaries of a family trust also may include charitable
entities. 'Family' means the grantor, the grantor's spouse,
parents, grandparents, sisters, brothers, children, stepchildren,
grandchildren, and the spouses and lineal descendant of any of
them. A family partnership or family trust also includes
charitable entities, other family partnerships and family trusts
of the grantor, and charitable remainder and charitable lead
trusts, if all the beneficiaries are charitable entities or members
of the grantor's family. A 'charitable entity' means an entity
which may receive deductible contributions under Section 170
of the Internal Revenue Code as defined in Section
12-6-40(A);
(10) transferring realty from an individual to a
partnership, limited liability company, or corporation upon the
formation of the entity if the individual is transferring the realty
in order to become a partner, member, or shareholder in the
entity. All other transfers of realty to or from the partnership,
limited liability company, or corporation, not otherwise
exempt, are subject to the fee;
(11) transferring realty in a statutory merger or
consolidation from a constituent corporation to the continuing
or new corporation;
(11) transferring realty in a merger or consolidation
from a constituent partnership to the continuing or new
partnership;
(12) transferring realty between a parent
corporation and its subsidiary corporation, provided that no
consideration of any kind is paid or is to be paid for the
transfer;
(13) transferring realty to a nonprofit corporation
organized and operated exclusively for either a religious,
scientific, charitable, or educational purpose, and provided that
no consideration of any kind is paid or is to be paid for the
transfer;
(14)(12) that constitute a corrective deed
or a quitclaim deed used to confirm title already vested in the
grantee, provided that so long as no
consideration of any kind is paid or is to be paid under
the corrective or quitclaim deed;
(15) transferring realty from an individual to a
partnership or limited liability company of which the individual
is a partner or a member, provided that the transfer is subject to
the fee to the extent that the transfer is a transfer of an
undivided interest in the realty to partners or members other
than the transferor. The determination as to the portion of the
realty's value upon which the fee must be paid must be based on
the percentage interest in the partnership or limited liability
company of the partners or members other than the
transferor."
SECTION 4. Section 12-24-70 of the 1976 Code, as added
by Part II, Act 458 of 1996, is amended to read:
"Section 12-24-70. (A) An affidavit must accompany
every deed presented for recording and must set forth the true,
full, and complete value of the realty as defined in Section
12-24-30. In addition, the clerk or register of mesne
conveyances may require any other information considered
necessary. However, the clerk or register of mesne
conveyances, at his discretion, may waive the affidavit
requirement.
If the deed is exempt under Section 12-24-40, the
affidavit must state that the deed is exempt and state the reason
for the exemption. This affidavit must be signed by a
responsible person connected with the transaction and the
affidavit must state that connection. The clerk of court
or register of mesne conveyances shall require an affidavit
showing the value of the realty to be filed with a deed.
For deeds exempt under the provisions of this chapter, the
value need not be stated on the affidavit, but the affidavit must
state the reason the deed is exempt from the fee. The affidavit
required by this section must be signed by a responsible person
connected with the transaction and the affidavit must state that
connection. The clerk of court or register of mesne
conveyances, at his discretion, may waive the affidavit
requirement.
(B) The clerk of court or register of mesne conveyances shall
file these affidavits in his office.
(C) A person required to furnish the affidavit who
wilfully furnishes a false or fraudulent affidavit is guilty of a
misdemeanor and, upon conviction, must be fined not more
than one thousand dollars or imprisoned not more than one
year, or both."
SECTION 5. This act takes effect upon approval by the
Governor.
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