H*4262(Rat #0432, Act #0375 of 1992)  General Bill, By J.J. Bailey
 A Bill to amend Section 4-9-195, Code of Laws of South Carolina, 1976,
 relating to special property tax assessments for rehabilitated historic
 properties and low and moderate income rental properties, so as to revise the
 special eight-year assessment to the greater of forty percent of the
 applicable percent of the appraisal value after rehabilitation or
 certification or the original assessment on the property and to provide that
 only owner-occupied rehabilitated property qualifies for the special four
 percent assessment ratio, to make ineligible for the assessment property
 rehabilitated as a result of natural disaster, catastrophe, accident, or force
 majeure, to revise the eligibility requirements applicable to low and moderate
 income rental property, and to provide definitions.-amended title

   01/23/92  House  Introduced, read first time, placed on calendar
                     without reference HJ-11
   01/28/92  House  Read second time HJ-14
   01/29/92  House  Read third time and sent to Senate HJ-12
   02/04/92  Senate Introduced and read first time SJ-13
   02/04/92  Senate Referred to Committee on Finance SJ-13
   04/22/92  Senate Committee report: Favorable with amendment Finance SJ-8
   04/28/92  Senate Amended SJ-58
   04/28/92  Senate Read second time SJ-58
   04/29/92  Senate Read third time and returned to House with
                     amendments SJ-283
   05/05/92  House  Concurred in Senate amendment and enrolled HJ-41
   05/13/92         Ratified R 432
   05/19/92         Signed By Governor
   05/19/92         Effective date 05/19/92
   05/19/92         Act No. 375
   06/17/92         Copies available

AN ACT TO AMEND SECTION 4-9-195, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SPECIAL PROPERTY TAX ASSESSMENTS FOR REHABILITATED HISTORIC PROPERTIES AND LOW AND MODERATE INCOME RENTAL PROPERTIES, SO AS TO REVISE THE SPECIAL EIGHT-YEAR ASSESSMENT TO THE GREATER OF FORTY PERCENT OF THE APPLICABLE PERCENT OF THE APPRAISAL VALUE AFTER REHABILITATION OR CERTIFICATION OR THE ORIGINAL ASSESSMENT ON THE PROPERTY AND TO PROVIDE THAT ONLY OWNER-OCCUPIED REHABILITATED PROPERTY QUALIFIES FOR THE SPECIAL FOUR PERCENT ASSESSMENT RATIO, TO MAKE INELIGIBLE FOR THE ASSESSMENT PROPERTY REHABILITATED AS A RESULT OF NATURAL DISASTER, CATASTROPHE, ACCIDENT, OR FORCE MAJEURE, TO REVISE THE ELIGIBILITY REQUIREMENTS APPLICABLE TO LOW AND MODERATE INCOME RENTAL PROPERTY, AND TO PROVIDE DEFINITIONS.

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

Special assessment

SECTION 1. Items (1) and (2) of subsection (A) of Section 4-9-195 of the 1976 Code, as added by Act 474 of 1990, are amended to read:

"(1) for owner-occupied rehabilitated historic property an assessment for two years equal to four percent of the appraised value of the property at the time the certification was made, and an assessment for eight years equal to the greater of forty percent of four percent of the appraised value of the property after rehabilitation or the assessment originally assessed on the uncertified property;

(2) for income-producing rehabilitated historic property and for low and moderate income rental property an assessment for two years equal to six percent of the appraised value of the property at the time the certification was made, and an assessment for eight years equal to the greater of forty percent of six percent of the appraised value of the property after rehabilitation or the assessment originally assessed on the uncertified property; and"

Nonqualifying rehabilitation

SECTION 2. Items (4) and (5) of Section 4-9-195(B) of the 1976 Code, as added by Act 474 of 1990, are amended to read:

"(4) the owner or estate of any property certified as `historic' takes no actions which cause the property to lose the qualities and features which made it eligible for certification. The Department of Archives and History or its designee shall have the authority to rescind approval of the rehabilitation work in these cases, and in this event the property becomes immediately ineligible for the special tax assessments provided for this type of property; and

(5) rehabilitation was commenced on the property after January 1, 1987, and the rehabilitation was not commenced or undertaken as a result of a natural disaster, catastrophe, accident, or force majeure."

Eligibility

SECTION 3. Section 4-9-195(c) of the 1976 Code, as added by Act 474 of 1990, is amended to read:

"(C) `Low and moderate income rental property' is eligible for certification if:

(1) the property provides accommodations under the Section 8 Program as defined in the United States Housing Act of 1937 and amended by the Housing and Community Act of 1974 for low and moderate income families and persons as defined by Section 31-13-170(p); or

(2) in the case of income-producing real property, the expenditures for rehabilitation exceed the appraised value of the property; and

(3) if the low and moderate income housing rehabilitation is located in an area designated by the local government as a Low and Moderate Housing Rehabilitation District; and

(4) the owner or estate of any property certified as `low and moderate income rental property' takes no actions which cause the property to be unsuitable for such a designation. The county governing body granting the initial certification has the authority to decertify property in these cases, and the property becomes immediately ineligible for the special tax assessments provided for this type of property; and

(5) rehabilitation was commenced on the property after January 1, 1987; and the rehabilitation was not commenced or undertaken as a result of a natural disaster, catastrophe, accident, or force majeure; and

(6) if the property qualifies as `historic' as defined in subsection (B)(1)(a), (b), or (c), then the rehabilitation work must be approved by the Department of Archives and History as provided in subsections (B) and (D)."

Definitions

SECTION 4. Section 4-9-195 of the 1976 Code, as added by Act 474 of 1990, is amended by adding:

"(H) As used in this section:

(1) `appraised value of the property at the time certification was made' means, as to rehabilitated historic property, the appraised value of the building as certified to the governing body by a real estate appraiser licensed by this State, or the sales price delineated in a bona fide contract of sale executed within six months of the time it is submitted to the governing body; and, as to low and moderate income rental property, the appraised value of the property as certified to the governing body by a real estate appraiser licensed by this State or the sales price delineated in a bona fide contract of sale executed within six months of the time it is submitted to the governing body.

(2) `appraised value of the property after rehabilitation' means, as to rehabilitated historic property, the appraised value of the rehabilitated building, after rehabilitation has been completed, as certified to the governing body by a real estate appraiser licensed by this State; and, as to low and moderate income rental property, the appraised value of the property, after rehabilitation has been completed, as certified to the governing body by a real estate appraiser licensed by this State."

Time effective

SECTION 5. This act takes effect upon approval by the Governor.

Approved the 19th day of May, 1992.