Bill 2448

                    Current Status

Bill Number:               2448
Ratification Number:       471
Act Number                 405
Introducing Body:          House
Subject:                   Assessment date and the payment of ad
                           valorem taxes on motor vehicles

(A405, R471, H2448)

AN ACT TO PROVIDE FOR THE TAX YEAR, THE ASSESSMENT DATE AND THE PAYMENT OF AD VALOREM TAXES ON MOTOR VEHICLES WHICH ARE REQUIRED TO BE LICENSED BY SECTION 56-3-110, CODE OF LAWS OF SOUTH CAROLINA, 1976; TO PROVIDE FOR THE ELIMINATION OF FILING PERSONAL PROPERTY TAX RETURNS WITH A COUNTY WHEN THE PROPERTY IS REGISTERED WITH AN AGENCY OF THE STATE; TO PROVIDE PENALTIES; AND TO REPEAL SECTIONS 56-3-260 THROUGH 56-3-340, RELATING TO STATEMENTS AND RECEIPTS CONCERNING PERSONAL PROPERTY TAXES ON MOTOR VEHICLES.

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

Findings

Section 1. The General Assembly finds that an excessive amount of taxes assessed by counties, municipalities and other political sub-divisions of the State upon motor vehicles is not collected. Because of the mobility of motor vehicles they are frequently no longer within the taxing jurisdiction when taxes are payable. The result is that the taxes are not paid and it is necessary that other property owners pay higher taxes to offset the uncollected taxes. In order to correct this situation, the General Assembly prescribes the following method and procedure regarding the ad valorem taxation of such property.

Tax year

Section 2. Notwithstanding any other provisions of law, the tax year for motor vehicles shall begin with the last day of the month in which a license required by Section 56-3-110 of the 1976 Code is issued and shall end on the last day of the month in which the license expires or is due to expire. No license shall be issued for such motor vehicles until the ad valorem tax is paid for the year for which the license is to be issued.

Twelve-month licensing period

Section 3. The tax payable on motor vehicles required to be licensed by Section 56-3-110 of the 1976 Code shall be determined for a twelve-month licensing period. If the actual licensing period is less than twelve months, the tax payable shall be that proportion of the above described tax that is equal to the proportion of the number of months that the licensing period is to the twelve-month period.

Property tax return

Section 4. When a motor vehicle is first taxable in a county the owner or person having control of the vehicle shall make a property tax return of it prior to applying for a license. The return shall be made to the auditor of the county in which the owner or person having control of the motor vehicles resides. If the motor vehicle is used in a business the return shall be made to the auditor of the county in which the motor vehicle is situated, that being the county and city of principal use of the vehicle. The return shall be signed under oath and shall set forth the county, school district, special or tax district and municipality in which the vehicle is principally used.

Auditor to determine assessed value

Section 5. The auditor shall determine the assessed value of the motor vehicle and shall calculate the amount of taxes thereon. The millage to be applied to motor vehicles licensed during January through December of each year shall be that applied to other taxable property within the county, school district, special or tax district and, if applicable, the municipality for the preceding regular tax year.

Auditor to prepare tax notice

Section 6. The auditor shall prepare a tax notice for all vehicles owned by the same person and licensed at the same time. A notice shall be in four parts and shall describe the motor vehicle by name, model and identification number. The notice shall set forth the assessed value of the vehicle, the millage, the taxes due on each vehicle and the license period or tax year. The notice shall be delivered to the county treasurer and it shall be the treasurer's responsibility to collect or receive payment of the taxes. One copy of the notice shall be in the form of a bill or statement for the taxes due on the motor vehicle and, when practical, the treasurer shall mail that copy to the owner or person having control of the vehicle. When the tax is paid the treasurer shall issue the taxpayer two copies of the paid receipt. One copy shall be delivered by the taxpayer to the South Carolina Department of Highways and Public Transportation with the application for the motor vehicle license and the other copy shall be retained by the treasurer. The auditor shall maintain a separate duplicate for motor vehicles. No license shall be issued without such receipt being attached to the application.

Listing to be furnished by department

Section 7. The Department of Highways and Public Transportation shall furnish the auditor of each county a listing of license registration applications to be mailed to the owners of motor vehicles in the respective counties. The listings shall be furnished the auditor as soon as possible but no later than sixty days before the applications are mailed by the department to vehicle owners. Listings shall be in the form of computer tapes or printouts.

Licensing period

Section 8. No license shall be issued by the Department of Highways and Public Transportation for a period in excess of twelve months. If a license is transferred by the department from one vehicle to another, no tax shall be levied upon the vehicle to which the license is transferred until the license has expired.

Determination of assessed value of vehicle

Section 9. The assessed value of the vehicle shall be determined as of the first day of the month preceding that in which the license is issued. The assessed values shall be published in guides or manuals by the South Carolina Tax Commission and provided to the auditor of each county as often as may be necessary to provide for current values. When the value of any vehicle is not set forth in the guide or manual the auditor shall determine the value from other available information. Any person aggrieved by the valuation of his motor vehicle may appeal to the South Carolina Tax Commission and the Commission may increase, decrease or affirm the value so determined.

Municipality may contract for collection and assessment of tax

Section 10. A municipality may by contract authorize the county to assess and collect the municipal tax on motor vehicles. When so contracted, the provisions hereof shall be applicable to the municipal tax on vehicles. In such cases the duplicate and receipt above provided for shall also reflect the amount of municipal tax. A municipality that does not contract shall by ordinance provide for the date that taxes due on motor vehicles for each tax year are to be paid. All statutes providing for the collection of taxes shall be applicable to such municipal tax.

Commencement of 1981 tax year

Section 11. The 1981 tax year for motor vehicles required to be licensed by Section 56-3-110 of the 1976 Code shall begin with the license renewals due on and after January 1, 1981. Notwithstanding the provisions of Section 2 of this act, for the tax year 1981 only the tax that would, under provisions of this act, be paid between January 1 and August 31 shall be due and payable not later than September 30, 1981. The Department of Highways and Public Transportation shall not require the receipt as a condition of issuing the license for such a period. Failure to pay the tax on or before the date herein prescribed shall cause the revocation of the license. The revocation shall be by the department upon notice by the county treasurer that the tax was not paid.

Exceptions

Section 12. Except as provided in Section 4 of this act, no return shall be required for personal property which is required by state law to be registered with an agency of the State. The provisions of this section shall be effective for tax years beginning after December 31, 1980.

Exceptions

Section 13. The provisions of this act shall not apply to motor vehicles which are a part of the inventory held for sale by licensed motor vehicle dealers and which are operated on the highways under a dealer tag.

Penalties

Section 14. It shall be unlawful for any person to use the treasurer's receipt to obtain motor vehicle license plates unless all municipal personal property taxes due in the county of his residence on any vehicles now or previously owned by the applicant have been paid. Any person who knowingly violates the provisions of this section shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined not more than two hundred dollars. Each day shall constitute a separate offense.

The above penalty shall be in addition to any other penalties prescribed by law for failure to pay municipal taxes.

The verbatim text of the first paragraph of this section shall be printed or stamped upon the treasurer's receipt.

Repeal

Section 5. Sections 56-3-260, 56-3-270, 56-3-280, 56-3-290, 56- 3-300, 56-3-310, 56-3-320, 56-3-330 and 56-3-340 of the 1976 Code are repealed.

Time effective

Section 16. This act shall take effect January 1, 1981.