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COMMITTEE REPORT
February 11, 2004
S. 769
S. Printed 2/11/04--S.
Read the first time January 13, 2004.
To whom was referred a Bill (S. 769) to amend Section 12-37-220, Code of Laws of South Carolina, 1976, relating to general exemptions from property taxes including the exemption of a dwelling house of a veteran, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, SR. for Committee.
REVENUE IMPACT 1/
This bill is not expected to have any impact on state revenues. Local property tax revenues could be reduced by an estimated $40,000 in FY 05 and each year thereafter.
Explanation
This bill defines what 'permanently and totally disabled' means for the purposes of this exemption. Under current law, a surviving spouse who disposes of the exempt dwelling and acquires another residence in this State for use as a house may apply for and receive this exemption on the new house as long as it does not have a value greater than one and one-half times the fair market value of the original exempt dwelling. This bill removes the requirement that the new dwelling be less than one and one-half times the fair market value of the original exempt dwelling. Also, under current law, any subsequent dwellings of a surviving spouse would not be eligible for this exemption. This bill would allow the exemption to continue on any subsequent dwellings the surviving spouse uses as his or her home. According to data from the Department of Revenue, approximately 5,300 houses are currently receiving this exemption. This bill would allow some individuals to continue receiving this exemption who would otherwise have lost their eligibility for this exemption under current law. We estimate this could impact about 40 persons per year. The continuation of this exemption is expected to reduce local property tax revenue by an estimated $40,000 per year.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND SECTION 12-37-220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL EXEMPTIONS FROM PROPERTY TAXES INCLUDING THE EXEMPTION OF A DWELLING HOUSE OF A VETERAN WHO IS DISABLED FROM A SERVICE-CONNECTED DISABILITY, SO AS TO DEFINE THE TERM "PERMANENTLY AND TOTALLY DISABLED" AND TO ALLOW THE SURVIVING SPOUSE OF A DISABLED VETERAN TO RECEIVE THE EXEMPTION FOR ANY SUBSEQUENT DWELLING.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-220(B)(1)(a) of the 1976 Code is amended to read:
"(a) The dwelling house in which he resides and a lot not to exceed one acre of land owned in fee or for life, or jointly with a spouse, by a veteran who is one hundred percent permanently and totally disabled from a service-connected disability, if the veteran or qualifying surviving spouse files a certificate, signed by the county service officer, of the total and permanent disability with the Department of Revenue. The term 'permanently and totally disabled' means the inability to perform substantial gainful employment by reason of a medically determinable impairment, either physical or mental, that has lasted or is expected to last for a continuous period of twelve months or more or result in death. The exemption is allowed the surviving spouse of the veteran and also is allowed to the surviving spouse of a serviceman or law enforcement officer as defined in Section 23-6-400(D)(1) killed in action in the line of duty who owned the lot and dwelling house in fee or for life, or jointly with his spouse, so long as the spouse does not remarry, resides in the dwelling, and obtains the fee or a life estate in the dwelling. A surviving spouse who disposes of the exempt dwelling and acquires another residence in this State for use as a dwelling house with a value no greater than one and one-half times the fair market value of the exempt dwelling may apply for and receive the exemption on the newly acquired dwelling, but a and any subsequent dwelling of a surviving spouse is not eligible for exemption pursuant to this item. The spouse shall inform the Department of Revenue of the change in address of the dwelling. To qualify for the exemption, the dwelling house must be the domicile of the person who qualifies for the exemption."
SECTION 2. This act takes effect upon approval by the Governor and applies to property tax years beginning January 1, 2003.
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