Current Status Introducing Body:Senate Bill Number:742 Primary Sponsor:Land Type of Legislation:GB Subject:Property tax assessments Residing Body:House Companion Bill Number:4182 Computer Document Number:JIC/5795HC.93 Introduced Date:19930427 Date of Last Amendment:19940330 Last History Body:House Last History Date:19940525 Last History Type:Recalled from Committee Scope of Legislation:Statewide All Sponsors:Land Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved ____ ______ ____________ ______________________________ ___ ____________ 742 House 19940525 Recalled from Committee 30 742 House 19940405 Introduced, read first time, 30 referred to Committee 742 Senate 19940330 Amended, read third time, sent to House 742 Senate 19940120 Amended, read second time 742 Senate 19940119 Committee Report: Favorable 06 with amendment 742 Senate 19930427 Introduced, read first time, 06 referred to CommitteeView additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
RECALLED
May 25, 1994
S. 742
S. Printed 5/25/94--H.
Read the first time April 5, 1994.
TO AMEND SECTION 12-4-540, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES OF THE SOUTH CAROLINA TAX COMMISSION WITH RESPECT TO THE APPRAISAL, ASSESSMENT, AND EQUALIZATION OF CERTAIN BUSINESS PROPERTY FOR PURPOSES OF AD VALOREM TAXATION, SO AS TO PROVIDE THAT THE COMMISSION SHALL PERFORM SUCH FUNCTIONS FOR ONLY THOSE DISTRIBUTION FACILITIES WITH MORE THAN ONE HUNDRED THOUSAND SQUARE FEET OF BUILDING SPACE OR WHICH QUALIFY FOR THE DISTRIBUTION FACILITY EXEMPTION; TO PROVIDE THAT THE COMMISSION SHALL PERFORM THESE FUNCTIONS FOR ENTERPRISES ENGAGED IN RESEARCH AND DEVELOPMENT ACTIVITIES AND TRANSPORTATION COMPANIES FOR HIRE, TO PROVIDE THAT THE VALUE OF PROPERTY ASSESSED BY THE UNIT VALUATION METHOD MUST BE DISTRIBUTED ON THE BASIS OF GROSS INVESTMENT EXCEPT WHERE OTHERWISE STATED, AND TO PROVIDE FOR THE APPRAISAL AND ASSESSMENT OF LEASED PROPERTY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-4-540 of the 1976 Code, as added by Act 50 of 1991, is amended to read:
"Section 12-4-540. (A) The commission department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of corporate headquarters, corporate office facilities, and distribution facilities with over one hundred thousand square feet in building space or when the distribution facility qualifies for exemption under Section 12-37-220(B)(32), and enterprises engaged in research and development activities and of the real and personal property owned, used, or leased by the following businesses in the conduct of their business:
(1) manufacturing;
(2) railway;
(3) private carline;
(4) airline;
(5) water, heat, light, and power;
(6) telephone;
(7) cable television;
(8) sewer;
(9) pipeline;
(10) mining;
(11) transportation companies for hire.
In addition, the commission department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of the personal property of merchants.
(B) Except as otherwise provided, the commission department may use any accepted or recognized valuation method which reflects the property's fair market value, including methods within the unit valuation concept. In assessing railroad transportation property, the commission department shall use the unit valuation concept.
(C) When the unit valuation concept method is used, the value allocated to this State must be distributed to the taxing entities in which the property is situated political subdivisions on a basis of gross investment except as otherwise provided.
(D) Except as otherwise provided, the commission department shall assess all real and personal property, leased or used, to the owner appraise and assess property leased to any taxpayer under its jurisdiction in the name of the lessee, if the lessee has control of the property and is contractually required to pay the tax.
(E) When the commission uses the unit valuation concept, property taxes on all leased and used real and personal property must be paid by the lessee. Whether or not the unit valuation concept is used, an airline or private carlines shall pay property taxes on all leased real and personal property in its control.
(F) If the commission department discovers that property required by law to be returned to the commission department has not been returned, the commission department may value and assess the property. If property has been returned or assessed incorrectly, the commission department may value revalue and assess reassess the property and give notice to the taxpayer of the valuation and assessment. After the expiration of the appeal period, the commission department shall certify the corrected assessment to the county auditor of the county where the property is located.
(F) In assessing electric distribution cooperatives organized pursuant to Title 49 of Chapter 33, the department shall use the following formula to determine fair market value:
(1) Fair market value equals a percentage adjustment times the net adjusted plant value.
(2) The percentage adjustment is one hundred percent, less the sum of the percent kilowatt hours adjustment, the percent idle service adjustment, and the percent density adjustment.
(3) The percent kilowatt hours adjustment is one hundred percent, less the percentage of kilowatt hours sold to the kilowatt hours purchased and generated.
(4) The percent idle service adjustment is the percentage derived by dividing the number of service locations not in service at the end of the calendar year, by the total number of service locations. The percent idle service adjustment is eight percent if the above percentage is ten percent or less, nine percent if the above percentage is more than ten percent but less than twenty percent, and ten percent if the above percentage is more than twenty percent.
(5) The percent density adjustment is derived by dividing the electric distribution cooperative's total number of customers by the distribution cooperative's total number of line miles. The percent density adjustment must not be more than fifteen percent in the case of a density factor of seven or less, and is reduced by one percent for each time the density factor increases by two, up to a maximum density factor of thirty-five or more, in which case the percent density adjustment is zero.
(6) Net adjusted plant value is the historical cost of total utility plant, less the sum of vehicle book value, construction work in progress and accumulated depreciation, plus the cost of materials and supplies."
SECTION 2. Section 12-23-60 of the 1976 Code is amended to read:
"Every person subject to the provisions of this article shall between the first and tenth on or before the twentieth day of each month make a true and correct return to the Commission department in such form as it may prescribe, showing the exact amount of electric power manufactured, generated or sold, expressed in kilowatt hours during the previous month and remit the tax therewith."
SECTION 3. This act takes effect upon approval by the Governor.