H 3762 Session 112 (1997-1998)
H 3762 General Bill, By Klauber, Barrett, Campsen, Carnell, Edge, McKay,
Meacham, V.T. Mullen, Quinn, Robinson and Sandifer
A BILL TO AMEND SECTION 12-43-230, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO HOMEOWNERS' ASSOCIATION PROPERTY FOR PURPOSES OF
EQUALIZATION AND REASSESSMENT, SO AS TO PROVIDE FOR DESIGNATION BY THE
HOMEOWNERS' ASSOCIATION AND APPLICATION FOR SPECIAL VALUATION OF ONE OR MORE
TRACTS OR PARCELS OF LAND.
04/01/97 House Introduced and read first time HJ-15
04/01/97 House Referred to Committee on Ways and Means HJ-15
04/17/97 House Committee report: Favorable Ways and Means HJ-15
04/29/97 House Read second time HJ-24
04/30/97 House Read third time and sent to Senate HJ-16
05/01/97 Senate Introduced and read first time SJ-12
05/01/97 Senate Referred to Committee on Finance SJ-12
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
April 17, 1997
H. 3762
Introduced by Reps. Klauber, Barrett, Campsen, Sandifer, McKay,
Mullen, Edge, Robinson, Meacham, Carnell and Quinn
S. Printed 4/17/97--H.
Read the first time April 1, 1997.
THE COMMITTEE ON WAYS AND MEANS
To whom was referred a Bill (H. 3762), to amend Section
12-43-230, as amended, Code of Laws of South Carolina, 1976,
relating to homeowners' association property, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and
recommend that the same do pass:
HENRY E. BROWN, JR., for Committee.
STATEMENT OF ESTIMATED FISCAL
IMPACT
This bill would have no effect on local property tax revenue
assuming that local governments adjusted for the lost assessed values
when calculating their millage rates in future years. However, we
estimate that approximately $2,400,000 in tax burden would be
shifted from homeowners' association property to other classes of
property beginning in FY 1997-98.
This estimate is based on a survey of the counties. The counties
listed below were able to provide the department with estimates of
their revenue impact. From this data, we estimate the statewide
impact at $2,400,000.
County Revenue Loss
Aiken 0
Anderson 0
Bamberg 0
Barnwell 0
Beaufort (2,000,000)
Berkeley 0
Calhoun 0
Chester 0
Clarendon (7,500)
Dillon 0
Dorchester 0
Edgefield (33,000)
Florence (130,000)
Greenville 0
Greenwood 0
Horry 0
Kershaw 0
Lexington 0
McCormick (16,000)
Newberry 0
Oconee (20,200)
Orangeburg (76,000)
Pickens 0
Richland 0
Spartanburg 0
Sumter 0
Union 0
Williamsburg 0
York 0
Total 2,282,700
Approved By:
Burnet R. Maybank, III
S.C. Department of Revenue
A BILL
TO AMEND SECTION 12-43-230, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO
HOMEOWNERS' ASSOCIATION PROPERTY FOR PURPOSES
OF EQUALIZATION AND REASSESSMENT, SO AS TO
PROVIDE FOR DESIGNATION BY THE HOMEOWNERS'
ASSOCIATION AND APPLICATION FOR SPECIAL
VALUATION OF ONE OR MORE TRACTS OR PARCELS OF
LAND.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 12-43-230(d) of the 1976 Code, as last
amended by Act 403 of 1996, is further amended to read:
"(d) For purposes of this article, 'homeowners' association
property' means real and personal property owned by a homeowners'
association if:
(1) property owned by the homeowners' association is held for
the use, benefit, and enjoyment of members of the homeowners'
association;
(2) each member of the homeowners' association has an
irrevocable right to use and enjoy on an equal basis, property owned
by the homeowners' association, subject to any restrictions imposed
by the instruments conveying the right or the rules, regulations, or
bylaws of the homeowners' association; and
(3) each irrevocable right to use and enjoy property owned by
the homeowners' association is appurtenant to taxable real property
owned by a member of the homeowners' association.
Notwithstanding any other provision of this subsection,
homeowners' association property shall not be construed so as to
include a golf course. Subject to making the appropriate
application pursuant to this subsection, a homeowners' association
may designate one or any number of its qualifying tracts or parcels
as homeowners' association property for purposes of the special
valuation contained in Section 12-43-227.
As used in this subsection, 'homeowners' association' means an
organization which is organized and operated to provide for the
acquisition, construction, management, and maintenance of property.
Homeowners' association property does not come within the
provisions of this subsection unless the owners of the real property
or their agents make a written application therefor for
it on or before the first penalty date for taxes due for the first tax
year in which the special valuation is claimed. The application
may be with respect to one or any number of tracts or parcels owned
by the homeowners' association. The application for the special
valuation must be made to the assessor of the county in which the
special valuation property is located, on forms provided by the
county and approved by the department which includes the reporting
of nonqualified gross receipts, and failure to apply constitutes a
waiver of the special valuation for that year. No additional annual
filing is required while the property remains homeowners'
association property and the ownership remains the same, unless the
nonqualified gross receipts within the meaning of Section 12-43-227
for the most recent completed tax year either (i) exceed the amount
of nonqualified gross receipts with respect to the property reported on
the most recently filed application by ten percent or more or (ii) are
less than ninety percent of the amount of nonqualified gross receipts
with respect to the property reported on the most recently filed
application. In such a that case, the owners of the
real property or their agents must make additional written application
with respect to the property and report the change in nonqualified
gross receipts."
SECTION 2. This act takes effect upon approval by the Governor
and applies to property tax years beginning after 1996.
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