H 4852 General Bill, By Neilson, Frye, Gamble, J. Hines, M. Hines, Hosey, 
Howard, Kelley, Lucas, Scott, Stuart, W. McLeod, Rhoad, Knotts and Whatley
 A BILL TO AMEND SECTION 12-37-250, AS AMENDED, CODE OF LAWS OF 1976, RELATING
 TO THE ANNUAL HOMESTEAD EXEMPTION FOR TAXPAYERS SIXTY-FIVE AND OVER OR THOSE
 WHO ARE TOTALLY AND PERMANENTLY DISABLED OR LEGALLY BLIND, SO AS TO PROVIDE
 THAT THE DOLLAR AMOUNT OF THE HOMESTEAD EXEMPTION SHALL BE ADJUSTED ANNUALLY
 BEGINNING IN 2000 BY THE COMPTROLLER GENERAL TO REFLECT ANY PERCENTAGE
 INCREASE IN THE PRIOR YEAR'S CONSUMER PRICE INDEX FOR THE SOUTHEAST REGION AS
 PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR.

   03/30/00  House  Introduced, read first time, placed on calendar
                     without reference HJ-48
   04/05/00  House  Amended HJ-32
   04/05/00  House  Debate adjourned until Thursday, April 6, 2000 HJ-34
   04/06/00  House  Requests for debate-Rep(s). Harrell, Sandifer,
                     Hinson, Woodrum, Young-Brickell, Witherspoon,
                     Bales, Ott, Knotts, Riser, Clyburn, Kelley,
                     Martin, W. McLeod, Rhoad, Wilder, Allison,
                     Moody-Lawrence, R. Smith, Davenport, Neilson and
                     J. Hines HJ-18
   04/26/00  House  Amended HJ-106
   04/26/00  House  Read second time HJ-108
   04/26/00  House  Roll call Yeas-99  Nays-0 HJ-108
   04/27/00  House  Read third time and sent to Senate HJ-25
   05/02/00  Senate Introduced and read first time SJ-13
   05/02/00  Senate Referred to Committee on Finance SJ-13

Indicates New Matter

AMENDED

April 26, 2000

H. 4852

Introduced by Reps. Neilson, Frye, Gamble, J. Hines, M. Hines, Hosey, Howard, Kelley, Lucas, Scott, Stuart, W. McLeod, Rhoad, Knotts and Whatley

S. Printed 4/26/00--H.

Read the first time March 30, 2000.

REVENUE IMPACT

Section 1 would increase state expenditures for the homestead exemption currently given to taxpayers 65 and over or those totally and permanently disabled or legally blind by $1,250,000 in FY 2001. Expenditures on the $100,000 property tax exemption from property taxes levied for school operations would decrease by $509,656 in FY 2001. The net expenditure increase would amount to $740,343 in FY 2001.

Section 2 would have no impact on state revenues. It would reduce local government revenue by an estimated $31,000,000. Local governments could either absorb this reduction or raise millage and shift this reduction to the other classes of property.

Section 3 would increase state expenditures for the homestead exemption by $6,275,000 in FY 2001. Expenditures on the $100,000 property tax exemption would decrease by $2,510,000 in FY 2001. The net expenditure increase would amount to $3,765,000 in FY 2001.

Explanation

Under current law taxpayers sixty-five and over or those totally and permanently disabled or legally blind receive an exemption of $20,000 off of the fair market value of their home for property tax purposes. The state currently allocates approximately $54 million to fund this exemption.

Section 1 will annually raise the homestead exemption amount by the percentage increase in the prior year's consumer price index for the southeast region. The five year compound growth rate of the consumer price index for the southeast region is 2.3%. Raising the homestead exemption by 2.3% would increase the exemption amount from $20,000 to $20,460 in the first year.

Section 2 exempts any otherwise nonexempt assessed value of a homestead receiving both the $20,000 homestead exemption for persons 65+ and the $100,000 school operations exemption if the household income of the taxpayer eligible for the $20,000 homestead exemption is less than 200% of the federal poverty level. In other words, if you receive the $20,000 homestead exemption and your income is less than 200% of poverty, you would not pay any property taxes on your home.

Section 3 allows you to claim the $20,000 homestead exemption if you have attained the age of 65 or have been classified as totally and permanently disabled, or legally blind before or during the tax year for which the exemption is claimed.

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 12-37-250, AS AMENDED, CODE OF LAWS OF 1976, RELATING TO THE ANNUAL HOMESTEAD EXEMPTION FOR TAXPAYERS SIXTY-FIVE AND OVER OR THOSE WHO ARE TOTALLY AND PERMANENTLY DISABLED OR LEGALLY BLIND, SO AS TO PROVIDE THAT THE DOLLAR AMOUNT OF THE HOMESTEAD EXEMPTION SHALL BE ADJUSTED ANNUALLY BEGINNING IN 2000 BY THE COMPTROLLER GENERAL TO REFLECT ANY PERCENTAGE INCREASE IN THE PRIOR YEAR'S CONSUMER PRICE INDEX FOR THE SOUTHEAST REGION AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR.

Amend Title To Conform

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

SECTION 1. Section 12-37-250 of the 1976 Code, as last amended by Act 107 of 1997, is further amended by adding a new paragraph at the end:

"The dollar amount of the homestead exemption provided for herein shall be adjusted annually beginning in 2000 by the Comptroller General to reflect any percentage increase in the prior year's consumer price index for the southeast region as published by the United States Department of Labor."

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