H 3726 General Bill, By Moody-Lawrence, Bailey, T. Brown, A.W. Byrd, Canty, 
Cave, Cobb-Hunter, Govan, J.L. Harris, Howard, Inabinett, Kirsh, Klauber, Lloyd, 
Meacham, J.H. Neal, Scott, Simrill, Stille, Stuart, Walker, Whipper, J.M. White, 
W.J. Young and Young-Brickell
 A Bill to amend Section 12-45-75, Code of Laws of South Carolina, 1976,
 relating to the authority of counties to allow property tax installment
 payments, so as to allow a taxpayer to elect to pay ad valorem taxes on the
 taxpayer's residence in three installments, to provide the time the
 installments are due and payable, and the amounts due, and to provide a
 penalty for late installments.

   03/02/95  House  Introduced and read first time HJ-7
   03/02/95  House  Referred to Committee on Ways and Means HJ-7

A BILL

TO AMEND SECTION 12-45-75, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORITY OF COUNTIES TO ALLOW PROPERTY TAX INSTALLMENT PAYMENTS SO AS TO ALLOW A TAXPAYER TO ELECT TO PAY AD VALOREM TAXES ON THE TAXPAYER'S RESIDENCE IN THREE INSTALLMENTS, TO PROVIDE THE TIME THE INSTALLMENTS ARE DUE AND PAYABLE, AND THE AMOUNTS DUE, AND TO PROVIDE A PENALTY FOR LATE INSTALLMENTS.

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

SECTION 1. Section 12-45-75 of the 1976 Code, as added by Act 443 of 1994, is amended to read:

"Section 12-45-75. (A) (A) The governing body of a county may by ordinance allow a taxpayer to elect to pay all ad valorem taxes on real property located in the county in installments. No installment election is allowed for taxes paid through an escrow account.

The ordinance must specify the installment due dates and it may provide for installments due and payable before January fifteenth, but the final installment due date must be January fifteenth. The ordinance may provide for a service charge of not more than two dollars on installment payments. For purposes of payment and collection, these service charges are deemed property taxes. The ordinance may not provide penalties for late installments.

(B) The governing body of a county may by ordinance provide a discount in all ad valorem taxes on real property located in the county paid in advance of the January fifteenth due date. The ordinance may provide a range of discounts that vary according to the length of the prepayment period.

The owner of property assessed for ad valorem taxes pursuant to Section 12-43-220(c) whose taxes are not paid by the mortgagee by escrow may elect to pay property taxes on the property in three installments. The election is made by filing a written notice of election with the county treasurer before March first of the tax year. Once made, an election cannot be revoked by the electing taxpayer before the succeeding tax year and any revocation must be in writing and filed in the manner as the original election. A change in ownership of the property is an immediate automatic revocation of the election. A taxpayer electing installment payments shall pay the installments in the manner provided in subsection (B) of this section.

(B) (1) An initial and second installment of ad valorem taxes on real property are due and payable respectively on May first and September first of each year and these installments must each equal one-third of the total property tax due on the property for the prior tax year. The balance due must be paid as provided in Section 12-45-70. The tax notice for this final installment shall state the total tax due for the year, including in the total any penalties for late payment of the first two installments, with the amount paid in installments shown as a credit against the total due. Any overpayment shown on the tax notice as a result of the installments credit must be refunded promptly by the county treasurer.

(2) When an installment is not timely received, there must be added to the tax due for the tax year a penalty equal to one percent of the tax due on the property for the tax year for each month or part of a month the installment remains unpaid. This penalty:

(a) may not exceed five percent of the tax due for the year;

(b) is considered for all purposes part of the tax due on the property; and

(c) must be paid when the unpaid balance of the tax is paid as provided in Section 12-45-70.

(3) The provisions relating to the determination of the timeliness of payments provided in Section 12-45-180 apply with respect to the timeliness of the initial installment required pursuant to this section, mutatis mutandis.

The county treasurer shall mail an installment tax notice to electing taxpayers at least thirty days in advance of the May first and September first due dates."

SECTION 2. Upon approval by the Governor, this act is effective for tax years beginning after 1995.