S 158 Session 112 (1997-1998)
S 0158 General Bill, By Passailaigue
A BILL TO ENACT THE PROPERTY OWNER PROTECTION AND GOVERNMENT WASTE REDUCTION
ACT OF 1976; TO AMEND ARTICLE 3, CHAPTER 37, TITLE 12 OF THE 1976 CODE,
RELATING TO ASSESSMENT OF PROPERTY TAXES, BY ADDING SECTION 12-37-224, SO AS
TO PROVIDE THAT THE VALUE OF REAL PROPERTY FOR THE PURPOSES OF AD VALOREM
TAXATION MAY NOT INCREASE MORE THAN AN AMOUNT EQUAL TO THE INCREASE IN THE
COST OF LIVING SINCE THE LAST REASSESSMENT DATE, AS LONG AS THE PROPERTY
REMAINS OCCUPIED BY THE SAME OWNER OR BY THE OWNER'S SPOUSE.-SHORT TITLE
01/14/97 Senate Introduced and read first time SJ-1441
01/14/97 Senate Referred to Committee on Finance SJ-141
A BILL
TO ENACT THE "PROPERTY OWNER PROTECTION AND
GOVERNMENT WASTE REDUCTION ACT OF 1997"; TO
AMEND ARTICLE 3, CHAPTER 37, TITLE 12 OF THE 1976
CODE, RELATING TO ASSESSMENT OF PROPERTY TAXES,
BY ADDING SECTION 12-37-224, SO AS TO PROVIDE THAT
THE VALUE OF REAL PROPERTY FOR THE PURPOSES OF
AD VALOREM TAXATION MAY NOT INCREASE MORE
THAN AN AMOUNT EQUAL TO THE INCREASE IN THE COST
OF LIVING SINCE THE LAST REASSESSMENT DATE, AS
LONG AS THE PROPERTY REMAINS OCCUPIED BY THE
SAME OWNER OR BY THE OWNER'S SPOUSE; TO PROVIDE
THAT WHEN THE PROPERTY IS TRANSFERRED THE
PROPERTY MAY BE ASSESSED AT THE FAIR MARKET
VALUE; TO PROVIDE THAT THE VALUE OF PROPERTY
OWNED BY PERSONS ELIGIBLE FOR THE HOMESTEAD
EXEMPTION MUST NOT INCREASE AS LONG AS THE
PROPERTY REMAINS OCCUPIED BY THE SAME OWNER OR
BY THE OWNER'S SPOUSE; AND TO PROVIDE THAT THE
VALUE OF PROPERTY THAT HAS BEEN OWNED AND
OCCUPIED BY THE SAME OWNER OR THE OWNER'S
SPOUSE CONTINUOUSLY SINCE 1992 MAY NOT BE
GREATER THAN ONE HUNDRED PERCENT (100%) HIGHER
THAN THE VALUE OF THE PROPERTY IN 1992; TO AMEND
CHAPTER 20, TITLE 59, RELATING TO THE EDUCATION
FINANCE ACT, BY ADDING SECTION 59-20-85, SO AS TO
HOLD DISTRICTS HARMLESS FOR CHANGES IN WEALTH
OR PUPIL NUMBERS FOR THE PURPOSE OF COMPUTING
STATE AID; TO PROVIDE FOR A REFERENDUM IN EACH
COUNTY TO DECIDE UPON THE ELIMINATION OF THE
OFFICE OF COUNTY ASSESSOR; AND TO AMEND CHAPTER
37, TITLE 12 BY ADDING ARTICLE 2, SO AS TO PROVIDE
THAT IN COUNTIES WHERE THE ASSESSOR'S OFFICE IS
ELIMINATED, THE DUTIES ARE TRANSFERRED TO THE
DEPARTMENT OF REVENUE AND THE COUNTY
TREASURER, AND TO PROVIDE THAT THE COST SAVINGS
WILL BE USED FOR PROPERTY TAX RELIEF.
Whereas, explosive growth has caused property values in this State
to increase dramatically in the last twenty years, causing property
owners to be unduly burdened with increased property taxes based on
the escalating property values; and
Whereas, property owners of modest means who have struggled for
years to provide a home or business for themselves and their families
are forced to sell their property, even if the property has been in the
family for generations; and
Whereas, it is the belief of the General Assembly that the policy of
this State should be to encourage citizens of modest means to own
property; and
Whereas, limiting the value for property tax purposes to the inflation
rate as long as it belongs to the same owners and limiting the value
to the fair market value if the property is sold will help contain
burdensome reassessments; and
Whereas, the resulting sharp decrease in demand for reassessment
appeals by property owners will eliminate the need for the taxpayers
to fund the assessor's office; and
Whereas, these limitations will eliminate the need for a county
assessor since reassessment will be easily determined by the inflation
factor or by the sale price of the property; and
Whereas, the taxpayers will benefit from the shrinking of government
that would result from the elimination of the assessment bureaucracy
and increased efficiency. Now, therefore,
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. This act is known as and may be cited as the
"Property Owner Protection and Government Waste Reduction Act
of 1997."
SECTION 2. Article 3, Chapter 37, Title 12 of the 1976 Code is
amended by adding:
"Section 12-37-224. (A) For the purposes of ad valorem
taxation, the value of real property assessed pursuant to Section
12-43-220 may not increase more than an amount equal to the
increase in the cost of living in the situs county, as determined by the
department, since the last reassessment date, as long as the property
remains occupied by the same owner or by the owner's spouse.
When the property is transferred, other than between spouses, the
property may be assessed at the fair market value.
(B) For the purposes of ad valorem taxation, the value of property
owned by persons eligible for the Section 12-37-250 homestead
exemption may not increase as long as the property remains occupied
by the same owner or by the owner's spouse. When the property is
transferred, the property may be assessed at the fair market value.
(C) If property assessed pursuant to subsection (A) of this section
is permanently improved, the improvements must be assessed at the
fair market value.
(D) If the property assessed pursuant to subsections (A) and (B) of
this section has been owned and occupied by the same owner or the
owner's spouse continuously since 1992, the value, for the purposes
of ad valorem taxation, may not be greater than one hundred percent
(100%) higher than the value of the property in 1992, for the
purposes of ad valorem taxation.
(E) A property taxpayer who disputes the determination of the fair
market value of his property, or a property taxpayer who can show
the value of his property has substantially declined, may file an
appeal pursuant to Article 9, Chapter 60, Title 12.
(F) The Department of Revenue may promulgate regulations to
enact the provisions of this section.
(G) Notwithstanding any other provision of law, refunds may not
be paid for property tax years before the effective date of this act as
a result of the limits on assessments required by this section."
SECTION 2. Chapter 20, Title 59 of the 1976 Code is amended by
adding:
"Section 59-20-85. Notwithstanding the computations
prescribed in Section 59-20-40, the level of state contributions to
each district may not be reduced to a per-pupil level of foundation
program funds below that per-pupil level of state funding of
programs for the Education Finance Act.
A district may not receive annually an increase in state funds less
than the full rate of the inflationary adjustment in the base student
cost specified in Section 59-20-40(1)(b). This increase must be
computed annually over and above the amount actually received from
the State for the foundation program in the prior fiscal year."
SECTION 3. The entity authorized to hold elections in each
county must conduct a referendum on the question contained herein
on November 3, 1998. The state election laws apply to this
referendum, mutatis mutandis. The entity authorized to hold
elections shall publish the results of the referendum and certify them
to the county governing body. The referendum question must read
substantially as follows:
"Do you favor eliminating the office of assessor in
County and giving the South Carolina Department of
Revenue the power to assess real property provided the net savings
will be used to reduce property taxes?
[] Yes
[] No
Those voting in favor of the question shall deposit a ballot with a
check or cross mark in the square after the word `Yes', and those
voting against the question shall deposit a ballot with a check or cross
mark in the square after the word `No'."
SECTION 4. Chapter 37, Title 12 of the 1976 Code is amended by
adding:
"Article 2
Section 12-37-150. Notwithstanding Section 12-37-90 or any
other provision of law, in a county that has approved by referendum
to eliminate the office of county assessor, the office of assessor is
eliminated upon expiration of the current term of the assessor in
office on the date of the referendum. The assessor's duties, except as
provided herein, are the responsibility of the Department of Revenue
as provided in this article. The county treasurer is responsible for
maintaining records of recorded deed sales transactions, building
permits, tax maps, and other records formerly maintained by the
assessor's office for research by the public. The county treasurer
must provide this information to the department. The county assessor
shall transfer all documents and records of his office to the
department or county treasurer, as appropriate, immediately upon
expiration of his term of office. This article applies only to those
counties that have approved the referendum to eliminate the
assessor's office.
Section 12-37-160. The Department of Revenue shall:
(1) appraise all real property in a county governed by this
article;
(2) reappraise all real property as required by Section
12-43-217;
(3) assume all duties formerly required by the county assessor;
and
(4) promulgate regulations to implement the purposes of this
article.
Section 12-37-170. A person who applies for a building permit
under Section 4-25-220 of the 1976 Code, as amended, shall remit a
user fee, in addition to other fees which are assessed by the local
government. The governmental agency responsible for issuing the
permit shall remit the user fee provided for in this section to the
department. The department shall establish the amount of the fee,
which must be used to pay for the costs to the department and which
may not exceed the amount necessary to pay for the cost to the
department of reappraising property that has been permanently
improved.
Section 12-37-180. Each year, the difference between the amount
of the county assessor's annual budget, in the last full fiscal year of
operation, and the net cost to the Department of Revenue to manage
his former duties must be distributed to the county to be used
exclusively for property tax relief. To estimate the amount the
assessor's annual budget would have been in succeeding years, the
department must apply the Southern Average of the Consumer Price
Index to calculate the net distribution to counties each year after the
first year."
SECTION 5. Unless otherwise specifically provided, this act takes
effect upon approval by the Governor, except that SECTIONS 1 and
2 take effect January 1, 1998. The provisions of SECTION 4 are
effective only upon certification of a majority "yes" vote
in the referendum provided by SECTION 3 of this act.
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