S*0496(Rat #0154, Act #0087)  General Bill, By Rankin, Drummond, Lander, 
Passailaigue, Short, J.V. Smith and M.B. Williams
 A Bill to amend Section 12-43-220, as amended, Code of Laws of South
 Carolina,1976, relating to classification and valuation of property for
 purposes of property tax, so as to authorize refunds of overpayments resulting
 from the inappropriate classification of a legal residence and to clarify the
 filing requirements for agricultural use classification; and to amend Section
 12-43-305, relating to payment of real property taxes under appeal, so as to
 authorize a taxpayer to pay taxes on property under appeal valued at more than
 eighty percent of the disputed valuation and to provide that no interest is
 due on underpayments or overpayments while the valuation remains under appeal
 for any month beginning after June thirtieth of the year succeeding the
 reassessment year.-amended title

   03/03/93  Senate Introduced and read first time SJ-7
   03/03/93  Senate Referred to Committee on Finance SJ-7
   03/31/93  Senate Committee report: Favorable Finance SJ-7
   04/01/93  Senate Amended SJ-24
   04/01/93  Senate Read second time SJ-25
   04/01/93  Senate Ordered to third reading with notice of
                     amendments SJ-25
   04/07/93  Senate Amended SJ-49
   04/13/93  Senate Read third time and sent to House SJ-18
   04/14/93  House  Introduced and read first time HJ-71
   04/14/93  House  Referred to Committee on Ways and Means HJ-72
   05/05/93  House  Recalled from Committee on Ways and Means HJ-35
   05/19/93  House  Debate adjourned until Thursday, May 20, 1993 HJ-96
   05/20/93  House  Amended HJ-32
   05/20/93  House  Read second time HJ-33
   05/20/93  House  Unanimous consent for third reading on next
                     legislative day HJ-34
   05/21/93  House  Read third time and returned to Senate with
                     amendments HJ-24
   05/25/93  Senate Concurred in House amendment and enrolled SJ-26
   06/10/93         Ratified R 154
   06/15/93         Signed By Governor
   06/15/93         Effective date 06/15/93
   06/24/93         Copies available

AN ACT TO AMEND SECTION 12-43-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CLASSIFICATION AND VALUATION OF PROPERTY FOR PURPOSES OF PROPERTY TAX, SO AS TO AUTHORIZE REFUNDS OF OVERPAYMENTS RESULTING FROM THE INAPPROPRIATE CLASSIFICATION OF A LEGAL RESIDENCE AND TO CLARIFY THE FILING REQUIREMNTS FOR AGRICULTURAL USE CLASSIFICATION; AND TO AMEND SECTION 12-43-305, RELATING TO PAYMENT OF REAL PROPERTY TAXES UNDER APPEAL, SO AS TO AUTHORIZE A TAXPAYER TO PAY TAXES ON PROPERTY UNDER APPEAL VALUED AT MORE THAN EIGHTY PERCENT OF THE DISPUTED VALUATION AND TO PROVIDE THAT NO INTEREST IS DUE ON UNDERPAYMENTS OR OVERPAYMENTS WHILE THE VALUATION REMAINS UNDER APPEAL FOR ANY MONTH BEGINNING AFTER JUNE THIRTIETH OF THE YEAR SUCCEEDING THE REASSESSMENT YEAR.

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

Refunds

SECTION 1. Section 12-43-220(c) of the 1976 Code, as last amended by Act 361 of 1992, is further amended by adding at the end:

"Notwithstanding any other provision of law, a taxpayer may make application for a refund of property taxes paid when the property could have been taxed at the legal residence assessment ratio, as is provided for above. Such application must be made in accordance with Code Sections 12-47-70, 12-47-80, and 12-47-90. The taxpayer must establish that the property in question was in fact his legal residence. A county council may, by ordinance, allow refunds for the county government portion of property taxes for such additional past years as it determines advisable."

Agricultural property

SECTION 2. Section 12-43-220(d)(3) of the 1976 Code, as last amended by Act 404 of 1988, is further amended to read:

"(3) Agricultural real property does not come within the provisions of this section unless the current owners of the real property or their agents make a written application therefor on or before May first of the first tax year in which the special assessment is claimed. The application for the special assessment must be made to the assessor of the county in which the agricultural real property is located, on forms provided by the county and approved by the commission and a failure to apply constitutes a waiver of the special assessment for that year. The governing body may extend the time for filing upon a showing satisfactory to it that the person had reasonable cause for not filing on or before May first. No additional annual filing is required while the use of the property remains bona fide agricultural and the ownership remains the same. The owner shall notify the assessor within six months of a change in use. For failure to notify the assessor of a change in use, in addition to any other penalties provided by law, a penalty of ten percent and interest at the rate of one-half of one percent a month must be paid on the difference between the amount that was paid and the amount that should have been paid, but not less than thirty dollars nor more than the current year's taxes."

Payment under appeal-interest

SECTION 3. Section 12-43-305 of the 1976 Code is amended to read:

"Section 12-43-305. Upon receipt of written notice of appeal of a property valuation and if it is reasonably expected that the appeal may delay the assessment of the property beyond December thirty-first of the tax year, the assessing officer shall prepare immediately an assessment for the property under appeal based upon eighty percent of the assessed value of the property for the current year. The Tax Commission shall notify the auditor of the property under the jurisdiction of the commission which is under appeal. The auditor shall adjust the assessment of property under appeal to eighty percent of the assessed value or any valuation greater than eighty percent agreed to in writing by the taxpayer and enter the adjusted assessment on the tax duplicate and the tax must be paid as in other cases.

After final review of the appeal, if the valuation is greater than the value of the assessment set by the assessing official in accordance with this section, an assessment must be made and entered based on the difference between the value of the assessment determined by this section and the value settled by the appeal.

If the valuation is less than that set as provided in this section, the assessment of the current year must be reduced by the cumulative difference between the assessment as entered and that determined by final review. The tax paid on the difference between the assessment as entered and that determined after final review must be refunded together with interest at the rate of one percent a month on the amount of the overpayment.

Interest at the rate of one percent must be added for each month the tax was unpaid because of the appeal and collected in the same manner as the tax. If the valuation of more than five percent of the parcels of real property in a county is appealed as a result of a reassessment and equalization program, no interest is due on refunds or underpayments for any month the valuation remains under appeal beginning after June thirtieth of the year succeeding the reassessment year."

Time effective

SECTION 4. This act takes effect upon approval by the Governor.

Approved the 15th day of June, 1993.