H 4325 Session 110 (1993-1994)
H 4325 General Bill, By J.J. Bailey, R.S. Corning, Harvin, Inabinett and
L.S. Whipper
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
12-37-224 so as to provide for an exemption equal to an amount of the fair
market value of residential and commercial real property sufficient to limit
any property tax increase on the property in one year to the lesser of the
Consumer Price Index or five percent and provide a transition year limitation
and to impose a transfer tax on property receiving the benefit of this
exemption and provide for the rate, time of payment, and method of collection
and distribution of the tax.
12/01/93 House Prefiled
12/01/93 House Referred to Committee on Ways and Means
01/11/94 House Introduced and read first time HJ-19
01/11/94 House Referred to Committee on Ways and Means HJ-19
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING SECTION 12-37-224 SO AS TO PROVIDE FOR AN
EXEMPTION EQUAL TO AN AMOUNT OF THE FAIR MARKET
VALUE OF RESIDENTIAL AND COMMERCIAL REAL PROPERTY
SUFFICIENT TO LIMIT ANY PROPERTY TAX INCREASE ON
THE PROPERTY IN ONE YEAR TO THE LESSER OF THE
CONSUMER PRICE INDEX OR FIVE PERCENT AND PROVIDE A
TRANSITION YEAR LIMITATION AND TO IMPOSE A TRANSFER
TAX ON PROPERTY RECEIVING THE BENEFIT OF THIS
EXEMPTION AND PROVIDE FOR THE RATE, TIME OF
PAYMENT, AND METHOD OF COLLECTION AND
DISTRIBUTION OF THE TAX.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 3, Chapter 37, Title 12 of the 1976 Code is
amended by adding:
"Section 12-37-224. (A) In addition to the exemptions
allowed pursuant to Section 12-37-220B of this article, there is allowed
as an exemption an amount of the fair market value of residential and
commercial real property and improvements thereon assessed
respectively at four and six percent of fair market value or any successor
assessment ratio applicable to such property sufficient to provide a limit
on annual ad valorem tax increases on such property equal to the lesser
of five percent or the increase in the consumer price index in the twelve
months ending on March 31 of the applicable tax year. This exemption
does not apply to tax increases attributable to improvements or
reclassification.
(B) When ownership of property receiving the exemption allowed
pursuant to subsection (a) of this section is transferred, there is imposed
on the transferor a real property transfer tax equal to the difference
between the tax due on the property for the last tax year before the
transfer and the tax that would have been due for that year without the
benefit of the exemption. The transfer tax is due and payable to the
county treasurer of the county where the property is located at the time
of closing. A penalty equal to five percent of the tax must be added to
the tax due for each thirty days or portion of thirty days the tax remains
unpaid but the total penalty may not exceed twenty percent. The transfer
tax liability is personal to the transferor and may be enforced and
collected by the county treasurer in the same manner that state income
taxes are enforced and collected, mutatis mutandis. When ownership of
a portion of property receiving the exemption is transferred, the transfer
tax must be allocated proportionately in the manner that the Department
of Revenue and Taxation shall prescribe. Proceeds of the transfer tax
are considered property taxes and must be distributed to taxing entities
in the same proportion that an equal amount of property tax would have
been distributed for the applicable tax year.
(C) The exemption allowed by this section first applies for taxes due
for the 1994 property tax year and the real property transfer tax first
applies to transactions occurring after 1994. Notwithstanding the
provisions of subsection (A) of this section, the exemption amount of
fair market value for property tax year 1994 must be adjusted so as to
limit property tax increases on a parcel to no more than a ten percent
increase over taxes due on the parcel for property tax year 1992 or the
increase in the consumer price index in the twenty-four months ending
March 31, 1994, whichever is less."
SECTION 2. This act takes effect upon approval by the Governor.
-----XX----- |