Current Status Bill Number:158 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970114 Primary Sponsor:Passailaigue All Sponsors:Passailaigue Drafted Document Number:s-res\passaila\res1179.elp Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Taxation, Property, Assessments, Assessor, Elections, Property Owner Protection and Government Waste Reduction Act
Body Date Action Description Com Leg Involved
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Senate 19970114 Introduced, read first time, 06 SF
referred to Committee
View additional legislative information at the LPITS web site.
TO ENACT THE "PROPERTY OWNER PROTECTION AND GOVERNMENT WASTE REDUCTION ACT OF 1997"; TO AMEND ARTICLE 3, CHAPTER 37, TITLE 12 OF THE 1976 CODE, RELATING TO ASSESSMENT OF PROPERTY TAXES, BY ADDING SECTION 12-37-224, SO AS TO PROVIDE THAT THE VALUE OF REAL PROPERTY FOR THE PURPOSES OF AD VALOREM TAXATION MAY NOT INCREASE MORE THAN AN AMOUNT EQUAL TO THE INCREASE IN THE COST OF LIVING SINCE THE LAST REASSESSMENT DATE, AS LONG AS THE PROPERTY REMAINS OCCUPIED BY THE SAME OWNER OR BY THE OWNER'S SPOUSE; TO PROVIDE THAT WHEN THE PROPERTY IS TRANSFERRED THE PROPERTY MAY BE ASSESSED AT THE FAIR MARKET VALUE; TO PROVIDE THAT THE VALUE OF PROPERTY OWNED BY PERSONS ELIGIBLE FOR THE HOMESTEAD EXEMPTION MUST NOT INCREASE AS LONG AS THE PROPERTY REMAINS OCCUPIED BY THE SAME OWNER OR BY THE OWNER'S SPOUSE; AND TO PROVIDE THAT THE VALUE OF PROPERTY THAT HAS BEEN OWNED AND OCCUPIED BY THE SAME OWNER OR THE OWNER'S SPOUSE CONTINUOUSLY SINCE 1992 MAY NOT BE GREATER THAN ONE HUNDRED PERCENT (100%) HIGHER THAN THE VALUE OF THE PROPERTY IN 1992; TO AMEND CHAPTER 20, TITLE 59, RELATING TO THE EDUCATION FINANCE ACT, BY ADDING SECTION 59-20-85, SO AS TO HOLD DISTRICTS HARMLESS FOR CHANGES IN WEALTH OR PUPIL NUMBERS FOR THE PURPOSE OF COMPUTING STATE AID; TO PROVIDE FOR A REFERENDUM IN EACH COUNTY TO DECIDE UPON THE ELIMINATION OF THE OFFICE OF COUNTY ASSESSOR; AND TO AMEND CHAPTER 37, TITLE 12 BY ADDING ARTICLE 2, SO AS TO PROVIDE THAT IN COUNTIES WHERE THE ASSESSOR'S OFFICE IS ELIMINATED, THE DUTIES ARE TRANSFERRED TO THE DEPARTMENT OF REVENUE AND THE COUNTY TREASURER, AND TO PROVIDE THAT THE COST SAVINGS WILL BE USED FOR PROPERTY TAX RELIEF.
Whereas, explosive growth has caused property values in this State to increase dramatically in the last twenty years, causing property owners to be unduly burdened with increased property taxes based on the escalating property values; and
Whereas, property owners of modest means who have struggled for years to provide a home or business for themselves and their families are forced to sell their property, even if the property has been in the family for generations; and
Whereas, it is the belief of the General Assembly that the policy of this State should be to encourage citizens of modest means to own property; and
Whereas, limiting the value for property tax purposes to the inflation rate as long as it belongs to the same owners and limiting the value to the fair market value if the property is sold will help contain burdensome reassessments; and
Whereas, the resulting sharp decrease in demand for reassessment appeals by property owners will eliminate the need for the taxpayers to fund the assessor's office; and
Whereas, these limitations will eliminate the need for a county assessor since reassessment will be easily determined by the inflation factor or by the sale price of the property; and
Whereas, the taxpayers will benefit from the shrinking of government that would result from the elimination of the assessment bureaucracy and increased efficiency. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act is known as and may be cited as the "Property Owner Protection and Government Waste Reduction Act of 1997."
SECTION 2. Article 3, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-224. (A) For the purposes of ad valorem taxation, the value of real property assessed pursuant to Section 12-43-220 may not increase more than an amount equal to the increase in the cost of living in the situs county, as determined by the department, since the last reassessment date, as long as the property remains occupied by the same owner or by the owner's spouse. When the property is transferred, other than between spouses, the property may be assessed at the fair market value.
(B) For the purposes of ad valorem taxation, the value of property owned by persons eligible for the Section 12-37-250 homestead exemption may not increase as long as the property remains occupied by the same owner or by the owner's spouse. When the property is transferred, the property may be assessed at the fair market value.
(C) If property assessed pursuant to subsection (A) of this section is permanently improved, the improvements must be assessed at the fair market value.
(D) If the property assessed pursuant to subsections (A) and (B) of this section has been owned and occupied by the same owner or the owner's spouse continuously since 1992, the value, for the purposes of ad valorem taxation, may not be greater than one hundred percent (100%) higher than the value of the property in 1992, for the purposes of ad valorem taxation.
(E) A property taxpayer who disputes the determination of the fair market value of his property, or a property taxpayer who can show the value of his property has substantially declined, may file an appeal pursuant to Article 9, Chapter 60, Title 12.
(F) The Department of Revenue may promulgate regulations to enact the provisions of this section.
(G) Notwithstanding any other provision of law, refunds may not be paid for property tax years before the effective date of this act as a result of the limits on assessments required by this section."
SECTION 2. Chapter 20, Title 59 of the 1976 Code is amended by adding:
"Section 59-20-85. Notwithstanding the computations prescribed in Section 59-20-40, the level of state contributions to each district may not be reduced to a per-pupil level of foundation program funds below that per-pupil level of state funding of programs for the Education Finance Act.
A district may not receive annually an increase in state funds less than the full rate of the inflationary adjustment in the base student cost specified in Section 59-20-40(1)(b). This increase must be computed annually over and above the amount actually received from the State for the foundation program in the prior fiscal year."
SECTION 3. The entity authorized to hold elections in each county must conduct a referendum on the question contained herein on November 3, 1998. The state election laws apply to this referendum, mutatis mutandis. The entity authorized to hold elections shall publish the results of the referendum and certify them to the county governing body. The referendum question must read substantially as follows:
"Do you favor eliminating the office of assessor in County and giving the South Carolina Department of Revenue the power to assess real property provided the net savings will be used to reduce property taxes?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word `Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word `No'."
SECTION 4. Chapter 37, Title 12 of the 1976 Code is amended by adding:
Section 12-37-150. Notwithstanding Section 12-37-90 or any other provision of law, in a county that has approved by referendum to eliminate the office of county assessor, the office of assessor is eliminated upon expiration of the current term of the assessor in office on the date of the referendum. The assessor's duties, except as provided herein, are the responsibility of the Department of Revenue as provided in this article. The county treasurer is responsible for maintaining records of recorded deed sales transactions, building permits, tax maps, and other records formerly maintained by the assessor's office for research by the public. The county treasurer must provide this information to the department. The county assessor shall transfer all documents and records of his office to the department or county treasurer, as appropriate, immediately upon expiration of his term of office. This article applies only to those counties that have approved the referendum to eliminate the assessor's office.
Section 12-37-160. The Department of Revenue shall:
(1) appraise all real property in a county governed by this article;
(2) reappraise all real property as required by Section 12-43-217;
(3) assume all duties formerly required by the county assessor; and
(4) promulgate regulations to implement the purposes of this article.
Section 12-37-170. A person who applies for a building permit under Section 4-25-220 of the 1976 Code, as amended, shall remit a user fee, in addition to other fees which are assessed by the local government. The governmental agency responsible for issuing the permit shall remit the user fee provided for in this section to the department. The department shall establish the amount of the fee, which must be used to pay for the costs to the department and which may not exceed the amount necessary to pay for the cost to the department of reappraising property that has been permanently improved.
Section 12-37-180. Each year, the difference between the amount of the county assessor's annual budget, in the last full fiscal year of operation, and the net cost to the Department of Revenue to manage his former duties must be distributed to the county to be used exclusively for property tax relief. To estimate the amount the assessor's annual budget would have been in succeeding years, the department must apply the Southern Average of the Consumer Price Index to calculate the net distribution to counties each year after the first year."
SECTION 5. Unless otherwise specifically provided, this act takes effect upon approval by the Governor, except that SECTIONS 1 and 2 take effect January 1, 1998. The provisions of SECTION 4 are effective only upon certification of a majority "yes" vote in the referendum provided by SECTION 3 of this act.