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"(c) which is destined for use other than for resale within the destination state for which an exemption has been made available by the destination state subject to procedural regulations promulgated by the department;"

SECTION __. Section 12-28-710(A)(7) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(7) subject to determination by the department, that portion of diesel fuel taxable motor fuel used to operate equipment attached to a motor vehicle, if the diesel fuel taxable motor fuel was placed into the fuel supply tank of a motor vehicle that has a common fuel reservoir for travel on a highway and for the operation of equipment;"/

Renumber sections to conform.

Amend title to conform.

Senator LEATHERMAN explained the amendment.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar with notice of general amendments.

H. 4833 -- Reps. Robinson, Herdklotz, Waldrop, Fulmer, Trotter, Sandifer, Marchbanks, Rice, Haskins and Harrell: A BILL TO AMEND SECTION 12-28-795, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INTEREST DUE ON GASOLINE TAX REFUNDS, SO AS TO CORRECT THE REFERENCE TO THE PROVISIONS ON INTEREST ON TAX OVERPAYMENTS AND UNDERPAYMENTS; TO AMEND SECTION 12-28-2360, RELATING TO REFUNDS OF GASOLINE TAX INSPECTION FEES, SO AS TO EXTEND THE GENERAL LIMITATIONS ON THE ASSESSMENT OF STATE TAXES TO CLAIMS FOR REFUNDS; TO AMEND SECTION 12-37-2680, AS AMENDED, RELATING TO VALUATION OF MOTOR VEHICLES FOR PURPOSES OF PROPERTY TAXES, SO AS TO DELETE AN OBSOLETE REFERENCE WITH RESPECT TO THE AUDITOR'S DUTIES; TO AMEND SECTION 12-43-300, AS AMENDED, RELATING TO APPEALS OF VALUATION FOR PURPOSES OF THE PROPERTY, SO AS TO DELETE REDUNDANT PROVISIONS AND CORRECT A REFERENCE; TO AMEND SECTION 12-54-25,

The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

Senator MARTIN proposed the following amendment (4833R001.LAM), which was adopted:

Amend the bill, as and if amended, by adding at the end an appropriately numbered new SECTION to read:

/SECTION . Section 12-37-220(B)(16)(b) of the 1976 Code is amended to read:

"(b) The property of any religious, charitable, or eleemosynary society, corporation, or other association when the property is acquired for the purpose of building or renovating residential structures on it for not-for-profit sale to economically disadvantaged persons, but this exemption may not be claimed for more than five tax years on a single property. Further, the total properties for which the religious, charitable, or eleemosynary society, corporation, or other association may claim this exemption in accordance with this paragraph may not exceed fifteen fifty acres per county within the State."/.

Renumber sections to conform.

Amend title to conform.

Senator MARTIN explained the amendment.

Senator LEATHERMAN proposed the following amendment (JIC\6003HTC.96), which was adopted:

Amend the bill, as and if amended, page 6, by striking Section 12-60-50, as contained in SECTION 8, and inserting:

/SECTION 8. Section 12-60-50 of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"Section 12-60-50. (A) For purposes of this chapter title and for any other taxes, when the last day of any specified time period is a Saturday,

(B) Except where payment of taxes is required to be made in funds which are immediately available to the State by electronic funds transfer or otherwise, the provisions of Internal Revenue Code Section 7502 relating to timely mailing as timely filing and paying are applicable to returns, other documents, or payment of taxes imposed by this title, or subject to assessment and collection by the department."/

Amend title to conform.

Senator LEATHERMAN explained the amendment.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar with notice of general amendments.

H. 4834 -- Reps. Robinson, Herdklotz, Waldrop, Sandifer, Fulmer, Trotter, Marchbanks, Rice, Haskins and Harrell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-2-75 SO AS TO PROVIDE FOR THE METHOD OF SIGNING INCOME TAX RETURNS; TO AMEND SECTION 12-4-310, AS AMENDED, RELATING TO DUTIES OF THE DEPARTMENT OF REVENUE AND TAXATION, SO AS TO REVISE A REFERENCE TO THE BOND REQUIREMENT FOR DEPARTMENTAL OFFICERS AND EMPLOYEES; TO AMEND SECTION 12-6-50, AS AMENDED, RELATING TO SECTIONS OF THE INTERNAL REVENUE CODE OF 1986 NOT ADOPTED IN THE DETERMINATION OF SOUTH CAROLINA TAXABLE INCOME, SO AS TO DELETE THE EXCLUSION OF PROVISIONS RELATING TO AN INNOCENT SPOUSE; TO AMEND SECTION 12-31-60, RELATING TO PENALTIES PROVIDED UNDER THE INTERNATIONAL FUEL TAX AGREEMENT, SO AS TO MAKE THESE PENALTIES APPLY IN LIEU OF OTHER PENALTIES AND INTEREST OTHERWISE REQUIRED; TO AMEND SECTIONS 12-36-110, AS AMENDED, 12-36-120, AS AMENDED, 12-36-1710, AS AMENDED, 12-36-2110, AS AMENDED, AND 12-36-2120, AS AMENDED, RELATING TO

The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

Amend the bill, as and if amended, by inserting the following SECTIONS appropriately numbered to read:

/SECTION . Section 12-37-220(B)(26), (29), and (38) of the 1976 Code, as last amended by Act 125 of 1995, is further amended to read:

"(26) Two personal motor vehicles owned or leased by recipients of the Medal of Honor for which special license tags have been issued by the Department of Revenue and Taxation under the provisions of Article 16 of Chapter 3 of Title 56.

(29) Two personal motor vehicles or trucks, not exceeding three-quarter ton, owned or leased by and licensed and registered in the name of any member or former member of the armed forces who was a prisoner of war (POW) in World War I, World War II, the Korean Conflict, or the Vietnam Conflict and who is a legal resident of this State, for which motor vehicle or truck a special tag has been issued by the Department of Revenue and Taxation in accordance with the provisions of Sections 56-3-1150 and 56-3-1160. This exemption also extends to the surviving spouse of a qualified former POW for the lifetime or until the remarriage of the surviving spouse.

(38) Boats Watercraft and motors valued below the amount determined by the county auditor necessary to generate a tax bill equal to fifteen dollars which have an assessment of not more than fifty dollars."

SECTION . Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( ) watercraft trailers."

SECTION . Section 12-37-252 of the 1976 Code is amended to read:

"Section 12-37-252. (A) Notwithstanding any other provision of law, property that qualifies for the homestead exemption pursuant to Section 12-37-250 of the 1976 Code is classified and taxed as residential on an assessment equal to four percent of the property's fair market value. Any agriculturally classified lands that are a part of the homestead must be taxed on an assessment equal to four percent of the lands' value for agricultural purposes. The county auditor shall notify the county assessor of the property so qualifying and no further application is required for such classification and taxation.

(B) When a person qualifies for a refund pursuant to Sections 12-60-2560 and 12-43-220(c) for prior years' eligibility for the four percent owner-occupied residential assessment ratio, the person also may be certified for a homestead tax exemption pursuant to Section 12-37-250.

SECTION . Section 12-37-275 of the 1976 Code is amended to read:

"Section 12-37-275. Notwithstanding any other provision of law, requests for reimbursement for taxes not collected the previous year shall must not be received by the Comptroller General prior to before January first. These requests must be for the reimbursement of eligible accounts which accrue before the first penalty date each year. Those eligible accounts that accrue or are discovered on or after the first penalty date of the tax year must be submitted to the Comptroller General in the next year's reimbursement request. These requests do not extend beyond the immediate preceding tax year."

SECTION . Section 12-37-610 of the 1976 Code is amended to read:

"Section 12-37-610. Every person shall be is liable to pay taxes and assessments on the real estate of which he may stand seized in fee or for life, in dower or as husband in right of his wife which he owns or may have the care of as guardian, executor, trustee, or committee."

SECTION . A. The first paragraph immediately preceding the schedule of Section 12-37-930 of the 1976 Code, as last amended by Act 69 of 1995, is further amended to read:

"All property must be valued for taxation at its true value in money which in all cases is the price which the property would bring following reasonable exposure to the market, where both the seller and the buyer are willing, are not acting under compulsion, and are reasonably well informed of the uses and purposes for which it is adapted and for which it is capable of being used. The fair market value for motor vehicles, licensed by the Department of Revenue and Taxation watercraft, and aircraft must be based on values derived from a nationally recognized publication of vehicle valuations, except that the value may not exceed ninety-five percent of the prior year's value. However, acreage allotments or marketing quota allotments for a commodity established under a program of the United States Department of Agriculture is classified as incorporeal hereditaments and the market value of real property to which they are attached may not include the value, if any, of the acreage allotment or marketing quota. Fair market value of manufacturer's machinery and equipment used in the conduct of the manufacturing business, excluding vehicles, licensed by the Department of Transportation, boats and airplanes watercraft, and aircraft required to be

B. This section is effective for tax years beginning after 1996.

SECTION . Section 12-43-217 of the 1976 Code, as added by Section 119(C), Part II, Act 145 of 1995, is amended to read:

"Section 12-43-217. Notwithstanding any other provision of law, once every fourth fifth year each county or the State shall appraise and equalize those properties under its jurisdiction. Upon completion of the reassessment program, Property valuation must be complete at the end of December of the fourth year and the county or State shall notify every taxpayer of any change in value or classification if the change is one thousand dollars or more. In the fifth year, the county or State shall implement the program and assess all property on the newly appraised values."

SECTION . A. Section 12-43-220(c) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"(c)(1) The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, is taxed on an assessment equal to four percent of the fair market value of the property. If residential real property is held in trust and the income beneficiary of the trust occupies the property as a residence, then the assessment ratio allowed by this item applies if the trustee certifies to the assessor that the property is occupied as a residence by the income beneficiary of the trust. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for taxes on the leased property, then the property upon which he is liable for taxes, not to exceed five acres contiguous to his legal residence, must be assessed at the same ratio provided in this item. If this property has located on it any rented mobile homes or residences which are rented or any business for profit, this four percent value does not apply to those businesses or rental properties. For purposes of the assessment ratio allowed pursuant to this item, a residence does not qualify as a legal residence unless the residence is determined to be the domicile of the owner-applicant. A taxpayer may receive the four percent assessment ratio on only one residence for a tax year. This subsection (c) is not applicable unless the owner of the property or his agents apply

The governing body of the county concerned as an alternative may elect, determine, and direct that the tax assessor shall determine and designate the various properties to be subject to the special assessment ratio provided in this subsection. Upon the determination by the governing body of the county concerned, no publication of notice is required and no application or other certification is then required.

(2)(i)To qualify for the special property tax assessment ratio allowed by this item, the owner-occupant must have actually owned and occupied the residence as his legal residence and been domiciled at that address for some period during the applicable tax year and remain in that status at the time of filing the application required by this item.
(ii)This item does not apply unless the owner of the property or the owner's agent applies for the four percent assessment ratio before the first penalty date for the payment of taxes for the tax year for which the

(B) that neither I nor any other member of my household own any other residence in South Carolina which currently receives the owner-occupant four percent assessment ratio.'
(iii)For purposes of subitem (ii)(B) of this item, `a member of my household' means:

(A) the owner-occupant's spouse, except when that spouse is legally separated from the owner-occupant; and

(B) any child of the owner-occupant claimed or eligible to be claimed as a dependent on the owner-occupant's federal income tax return.

(iv)In addition to the certification, the burden of proof for eligibility for the four percent assessment ratio is on the owner-occupant and the applicant must provide proof the assessor requires including, but not limited to:

(A) a copy of the owner-occupant's most recently filed South Carolina individual income tax return;

(B) copies of South Carolina motor vehicle registrations for all motor vehicles registered in the name of the owner-occupant.

(C) other proof required by the assessor necessary to determine eligibility for the assessment ratio allowed by this item.

If the assessor determines the owner-occupant ineligible, the six percent property tax assessment ratio applies and the owner-occupant may appeal the classification as provided in Chapter 60 of this title.

(v)A member of the armed forces of the United States on active duty who is a legal resident of and domiciled in another state is nevertheless deemed a legal resident and domiciled in this State for purposes of this item if the member's permanent duty station is in this State. A copy of the member's orders filed with the assessor is considered proof sufficient of the member's permanent duty station.

(vi)No further applications are necessary from the current owner while the property for which the initial application was made continues to meet the eligibility requirements. If a change in ownership occurs, another application is required. The owner shall notify the assessor of any change in classification within six months of the change.

(vii)If a person signs the certification, obtains the four percent assessment ratio, and is thereafter found not eligible, or thereafter loses eligibility and fails to notify the assessor within six months, a penalty is

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