H 4394 General Bill, By Kirsh
 A BILL TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PHASE IN OVER TEN YEARS AN
 EXEMPTION FOR PRIVATE PASSENGER MOTOR VEHICLES, MOTORCYCLES, AND TRUCKS WITH
 AN EMPTY WEIGHT OF NOT MORE THAN FIVE THOUSAND POUNDS, TO EXCLUDE FROM THE
 EXEMPTION VEHICLES USED IN A TRADE OR BUSINESS, TO PROVIDE FOR LOCAL
 GOVERNMENTS TO BE REIMBURSED FOR THE TAXES NOT COLLECTED BECAUSE OF THIS
 EXEMPTION, AND TO PROVIDE THAT THIS EXEMPT PROPERTY IS NEVERTHELESS CONSIDERED
 TAXABLE PROPERTY FOR PURPOSES OF BONDED INDEBTEDNESS AND CALCULATING THE INDEX
 OF TAXPAYING ABILITY.

   01/13/98  House  Introduced and read first time HJ-52
   01/13/98  House  Referred to Committee on Ways and Means HJ-53

A BILL

TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PHASE IN OVER TEN YEARS AN EXEMPTION FOR PRIVATE PASSENGER MOTOR VEHICLES, MOTORCYCLES, AND TRUCKS WITH AN EMPTY WEIGHT OF NOT MORE THAN FIVE THOUSAND POUNDS, TO EXCLUDE FROM THE EXEMPTION VEHICLES USED IN A TRADE OR BUSINESS, TO PROVIDE FOR LOCAL GOVERNMENTS TO BE REIMBURSED FOR THE TAXES NOT COLLECTED BECAUSE OF THIS EXEMPTION, AND TO PROVIDE THAT THIS EXEMPT PROPERTY IS NEVERTHELESS CONSIDERED TAXABLE PROPERTY FOR PURPOSES OF BONDED INDEBTEDNESS AND CALCULATING THE INDEX OF TAXPAYING ABILITY.

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

SECTION 1. Sections 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( )(a) A percentage of the fair market value as provided in subsection (b) of a private passenger motor vehicle which may be registered upon payment of the fees provided in Section 56-3-620, a motorcycle or motor-driven cycle and a truck with an empty weight of not more than five thousand pounds.

(b) The exemption amounts allowed by this item are as follows:

Motor Vehicle Property Tax Year Percentage of Fair

Beginning After Market Exempt

June, 1998 10 percent

June, 1999 20 percent

June, 2000 30 percent

June, 2001 40 percent

June, 2002 50 percent

June, 2003 60 percent

June, 2004 70 percent

June, 2005 80 percent

June 2006 90 percent

June 2007 100 percent.

(c) The exemption allowed by this item does not include private passenger cars, motorcycles, motor-driven cycles, or trucks used in a trade or business.

(d) The exemption allowed by this item cannot reduce fair market value below the minimum assessed value provided pursuant to Section 12-37-2640 until the exemption percentage equals one hundred percent. Thereafter, no minimum assessment applies.

(e) Property taxing entities must be reimbursed for taxes not collected because of the exemption allowed by this item in the manner provided in Section 12-37-270, mutatis mutandis, except that the reimbursement must be paid not less than monthly and in advance and in a manner that substantially matches the stream of revenue that would be generated if the exempt portion of the property's value were fully taxable.

(f) Property exempted for property taxation in the manner provided in this item is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15, Article X of the Constitution of this State and for purposes of computing the index of taxpaying ability pursuant to Section 59-20-20(3)."

SECTION 2. This act takes effect upon approval by the Governor.