H 5144 {Rat #229, Act #203 of 2022} General Bill, By G.M.Smith, Wheeler, Lowe, 
Kirby, Weeks, R.Williams, Jefferson and Yow
 AN ACT TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO FURTHER SPECIFY THE
 APPLICATION OF THE EXEMPTION OF PROPERTY OF TELEPHONE COMPANIES AND RURAL
 TELEPHONE COOPERATIVES. - ratified title

   03/29/22  House  Introduced and read first time (House Journal-page 27)
   03/29/22  House  Referred to Committee on Ways and Means
                     (House Journal-page 27)
   03/30/22  House  Member(s) request name added as sponsor: Wheeler
   03/31/22  House  Member(s) request name added as sponsor: Lowe, Kirby
   03/31/22  House  Committee report: Favorable Ways and Means
                     (House Journal-page 30)
   04/05/22  House  Member(s) request name added as sponsor: Weeks
   04/06/22  House  Member(s) request name added as sponsor:
                     R.Williams, Jefferson, Yow
   04/06/22  House  Requests for debate-Rep(s).  Dabney, Gatch, May,
                     McCravy, Bennett, Wooten, Jones
                     (House Journal-page 74)
   04/06/22  House  Requests for debate removed-Rep(s).  McCravy,
                     Jones, Dabney, May, Wooten, Gatch, Bennett
                     (House Journal-page 140)
   04/06/22  House  Read second time (House Journal-page 143)
   04/06/22  House  Roll call Yeas-108  Nays-0 (House Journal-page 143)
   04/07/22  House  Read third time and sent to Senate
   04/07/22  Senate Introduced and read first time (Senate Journal-page 12)
   04/07/22  Senate Referred to Committee on Finance
                     (Senate Journal-page 12)
   05/03/22  Senate Committee report: Favorable with amendment
                     Finance (Senate Journal-page 10)
   05/05/22  Senate Committee Amendment Adopted (Senate Journal-page 30)
   05/05/22  Senate Read second time (Senate Journal-page 30)
   05/05/22  Senate Roll call Ayes-39  Nays-0 (Senate Journal-page 30)
   05/10/22  Senate Read third time and returned to House with
                     amendments (Senate Journal-page 45)
   05/11/22  House  Senate amendment amended (House Journal-page 82)
   05/11/22  House  Roll call Yeas-106  Nays-0 (House Journal-page 83)
   05/11/22  House  Returned to Senate with amendments
                     (House Journal-page 84)
   05/12/22  Senate Concurred in House amendment and enrolled
                     (Senate Journal-page 96)
   05/12/22         Ratified R  229
   05/16/22         Signed By Governor
   05/31/22         Effective date  05/16/22
   05/31/22         Act No.  203

(A203, R229, H5144)

AN ACT TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO FURTHER SPECIFY THE APPLICATION OF THE EXEMPTION OF PROPERTY OF TELEPHONE COMPANIES AND RURAL TELEPHONE COOPERATIVES.

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

Findings

SECTION    1.    The General Assembly finds:

(1)    the rural telephone exemption found in Section 12-37-220(B)(10) of the 1976 Code provides an exemption from property taxation for property "used in providing rural telephone service";

(2)    the General Assembly intends to clarify existing law by passage of this act to provide that the exemption for property "used in providing telephone service" applies to all property used for such purposes, regardless of technology or whether it also may be used for other purposes;

(3)    there are various other existing exemptions in the 1976 Code where the General Assembly qualifies the term "use" or "used" by including "exclusively", "primarily", "solely", or "substantially", or where the General Assembly limits the exemption for "dual purpose" property by requiring an allocation; and

(4)    the exemption found in Section 12-37-220(B)(10) has never been and is not qualified or limited in any manner.

Property tax exemption, rural telephone cooperatives

SECTION    2.    Section 12-37-220(B)(10) of the 1976 Code is amended to read:

"(10)(a)    notwithstanding any other provisions of law, the property of telephone companies and rural telephone cooperatives operating in this State used in providing rural telephone service, which was exempt from property taxation as of December 31, 1973, shall be exempt from such property taxation; provided, however, that the amount of property subject to ad valorem taxation of any such company or cooperative in any tax district shall not be less than the net amount to which the tax millage was applied for the year ending December 31, 1973. Any property in any tax district added after December 31, 1973, shall likewise be exempt from property taxation in the proportion that the exempt property of such company or cooperative as of December 31, 1973, in that tax district was to the total property of such company or cooperative as of December 31, 1973, in that tax district;

(b)    property qualifying for the exemption authorized by subitem (a) includes property used in providing telephone service, as defined in Section 33-46-20, in rural areas, including mixed-use property, without regard to:

(i)     the extent to which such property is used in providing services in addition to telephone service in rural areas; and

(ii)    the technology used including, but not limited to, the provision of broadband over a high-speed Internet connection that allows the customer to access basic voice grade local service from the voice provider of the customer's choice;"

Time effective

SECTION    3.    This act takes effect upon approval by the Governor and applies to property tax years beginning after 2021.

Ratified the 12th day of May, 2022.

Approved the 16th day of May, 2022.