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Bill 4871

                    Current Status

Bill Number:                      4871
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  20000405
Primary Sponsor:                  Robinson
All Sponsors:                     Robinson
Drafted Document Number:          l:\council\bills\swb\5143mm00.doc
Residing Body:                    House
Current Committee:                Ways and Means Committee 30 HWM
Subject:                          Property tax assessments, jeopardy; 
                                  contested case before Administrative Law 
                                  Judge, Courts; Taxation, Revenue


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
House   20000405  Introduced, read first time,           30 HWM
                  referred to Committee


              Versions of This Bill

TO AMEND SECTION 12-60-920, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DETERMINATION OF THE APPROPRIATENESS OF A JEOPARDY ASSESSMENT, SO AS TO PROVIDE FOR THE REQUEST FOR A CONTESTED CASE BY THE TAXPAYER BEFORE THE ADMINISTRATIVE LAW JUDGE DIVISION THROUGH THE DEPARTMENT OF REVENUE, TO ASSIGN BURDENS OF PROOF FOR DETERMINATION OF THE APPROPRIATENESS OF THE JEOPARDY ASSESSMENT AND ITS AMOUNT, TO PROVIDE FOR CONSEQUENCES OF VARIOUS DETERMINATIONS BY THE ADMINISTRATIVE LAW JUDGE, AND TO LIMIT JUDICIAL REVIEW TO APPEAL OF A FINAL AGENCY DETERMINATION OF THE APPROPRIATE AMOUNT FOR COLLECTION.

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

SECTION 1. Section 12-60-920 of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"Section 12-60-920. (A) Within five days after the day on which a jeopardy assessment is made, the department shall provide the taxpayer with a written statement of the information the department relied on in making the assessment.

(B) Within thirty days after the day on which the taxpayer is furnished the written statement described in subsection (A), or within thirty days after the last day of the period within which the statement is required to be furnished, the taxpayer may request a contested case hearing before the Administrative Law Judge Division, by filing the request with the department. Requests The request for a contested case hearing before the Administrative Law Judge Division also must be made in accordance with its rules include a statement of the taxpayer's grounds for relief. The only issue for determination under this subsection is whether the jeopardy assessment is reasonable and appropriate.

(C) Within ten days after an action is commenced under subsection (B), a request for a contested case is received by the department, it shall file the request for a contested case and its response with the Administrative Law Judge Division. Within twenty days after the department's response contested case is requested or as soon thereafter as practicable, an administrative law judge shall hold the contested case hearing and determine whether or not the making of the jeopardy assessment is reasonable under the circumstances, collection of the tax assessed is in jeopardy and whether the amount so assessed or demanded as a result of the action taken under pursuant to Section 12-60-910 is appropriate under the circumstances. The running of the ten-day and twenty-day periods begins on the day on which service is made on the department.

(D) If the Administrative Law Judge determines that the making of the jeopardy assessment is unreasonable or that the amount assessed or demanded is inappropriate, he may order the department to abate the assessment, to redetermine, in whole or in part, the amount assessed or demanded, or to take other action as the judge finds appropriate. In a contested case hearing pursuant to subsection (C) the:

(1) department has the burden of proof of showing the collection of the tax assessed is in jeopardy; and

(2) taxpayer has the burden of proof of showing the tax assessed as a result of the action taken pursuant to Section 12-60-910 is not appropriate.

(E)(1) The decision made by the Administrative Law Judge under this section is final and conclusive and may not be reviewed by any court. If the administrative law judge determines the collection of the tax assessed is in jeopardy and the tax assessed is appropriate, the department may continue with its jeopardy collection procedures.

(2) If the administrative law judge determines the collection of the tax assessed:

(a) is not in jeopardy, the department may not proceed with its jeopardy collection, but it may issue a department determination as provided in Section 12-60-450(E).

(b) is in jeopardy but the amount of the jeopardy assessment is not appropriate, the judge shall determine the amount that the department may collect through its jeopardy collection procedures.

(3) The decision by the administrative law judge pursuant to this subsection may not be reviewed by any court. Judicial review may be sought from a decision rendered by an administrative law judge made pursuant to subsection (F).

(F)(1) In an action under subsection (B) involving the issue of whether the making of an assessment under Section 12-60-910 is reasonable under the circumstances, the burden of proof in respect to the issue is on the department.

(2) In an action under subsection (B) involving the issue of whether an amount assessed or demanded as a result of action taken under Section 12-60-910 is appropriate under the circumstances, the department shall provide a written statement containing any information on which its determination of the amount assessed was based, but the burden of proof in respect to the issue is on the taxpayer. If the administrative law judge determines the collection of the tax assessed is in jeopardy, he shall remand the case to the department to issue a final agency determination within a time period determined by the judge. The department's final agency determination is not limited by the administrative law judge's finding of the appropriate amount to collect as a jeopardy assessment pursuant to subsection (E)(2)(b). The taxpayer may appeal this final agency determination in accordance with Section 12-60-460. At the hearing on this final agency determination, the parties may raise issues and arguments previously presented at the contested case hearing."

SECTION 2. This act takes effect upon approval by the Governor and applies to jeopardy assessments made after that date.

This web page was last updated on Wednesday, December 9, 2009 at 9:31 A.M.