H*3551(Rat #0228, Act #0106 of 1997)  General Bill, By Boan

Similar(S 444)
 A BILL TO AMEND SECTION 11-27-110, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO LEASE PURCHASE OR FINANCING AGREEMENTS SUBJECT TO THE
 CONSTITUTIONAL DEBT LIMIT, SO AS TO REFINE DEFINITIONS, INCLUDING "ENTERPRISE
 CHARGE" AND "REFINANCING AGREEMENT"; TO AMEND SECTION 12-37-251, AS AMENDED,
 RELATING TO THE STATE PROPERTY TAX RELIEF FUND, SO AS TO PROVIDE FOR
 CALCULATION OF THE PROPERTY TAX EXEMPTION USING THE LOWER OF THE SCHOOL
 OPERATING MILLAGE IMPOSED FOR TAX YEAR 1995 OR FOR THE CURRENT TAX YEAR; TO
 AMEND SECTION 12-37-750, RELATING TO THE ASSESSMENT AND COLLECTION OF PROPERTY
 NOT RETURNED, SO AS TO INCLUDE BUSINESS PERSONAL RETURNS FILED WITH THE
 DEPARTMENT OF REVENUE; TO AMEND SECTION 12-43-220, AS AMENDED, RELATING TO THE
 EQUALIZATION AND ASSESSMENT OF PROPERTY, SO AS TO PROVIDE A REVISED FORMULA
 FOR CALCULATION OF FAIR MARKET VALUE FOR AGRICULTURAL PURPOSES; TO AMEND
 SECTION 12-45-180, AS AMENDED, RELATING TO PENALTIES ON COLLECTION OF AND
 EXECUTION ON DELINQUENT TAXES, SO AS TO REQUIRE WAIVER OF THE PENALTY IF THE
 CURRENT OWNER DID NOT RECEIVE NOTICE BECAUSE OF A TRANSFER DURING THE TAX
 YEAR; TO AMEND SECTION 12-51-40, AS AMENDED, RELATING TO LEVY AND EXECUTION BY
 DISTRESS AND SALE OF PROPERTY TO SATISFY DELINQUENT COUNTY TAXES, SO AS TO
 PROVIDE COUNTIES THE ALTERNATIVE COLLECTION PROCEDURES PROVIDED FOR IN CHAPTER
 56, TITLE 12; AND TO AMEND SECTION 12-60-2150, RELATING TO THE RIGHT OF A
 CONTESTED HEARING IN REFUND DETERMINATIONS, SO AS TO REPLACE "COUNTY ASSESSOR"
 WITH "LOCAL GOVERNING BODY".-AMENDED TITLE

   02/27/97  House  Introduced and read first time HJ-5
   02/27/97  House  Referred to Committee on Ways and Means HJ-6
   04/22/97  House  Committee report: Favorable with amendment Ways
                     and Means HJ-5
   04/29/97  House  Amended HJ-55
   04/29/97  House  Read second time HJ-57
   04/30/97  House  Read third time and sent to Senate HJ-19
   05/01/97  Senate Introduced and read first time SJ-22
   05/01/97  Senate Referred to Committee on Finance SJ-22
   05/21/97  Senate Committee report: Favorable with amendment
                     Finance SJ-22
   05/22/97  Senate Amended SJ-58
   05/22/97  Senate Read second time SJ-58
   05/22/97  Senate Ordered to third reading with notice of
                     amendments SJ-58
   05/28/97  Senate Read third time and returned to House with
                     amendments SJ-21
   06/04/97  House  Concurred in Senate amendment and enrolled HJ-21
   06/09/97         Ratified R 228
   06/13/97         Signed By Governor
   06/13/97         Effective date 06/13/97
   06/24/97         Copies available
   06/24/97         Act No. 106

AN ACT TO AMEND SECTION 11-27-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEASE PURCHASE OR FINANCING AGREEMENTS SUBJECT TO THE CONSTITUTIONAL DEBT LIMIT, SO AS TO REFINE DEFINITIONS, INCLUDING "ENTERPRISE CHARGE" AND "REFINANCING AGREEMENT"; TO AMEND SECTION 12-37-251, AS AMENDED, RELATING TO THE STATE PROPERTY TAX RELIEF FUND, SO AS TO PROVIDE FOR CALCULATION OF THE PROPERTY TAX EXEMPTION USING THE LOWER OF THE SCHOOL OPERATING MILLAGE IMPOSED FOR TAX YEAR 1995 OR FOR THE CURRENT TAX YEAR; TO AMEND SECTION 12-37-750, RELATING TO THE ASSESSMENT AND COLLECTION OF PROPERTY NOT RETURNED, SO AS TO INCLUDE BUSINESS PERSONAL RETURNS FILED WITH THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-43-220, AS AMENDED, RELATING TO THE EQUALIZATION AND ASSESSMENT OF PROPERTY, SO AS TO PROVIDE A REVISED FORMULA FOR CALCULATION OF FAIR MARKET VALUE FOR AGRICULTURAL PURPOSES; TO AMEND SECTION 12-45-180, AS AMENDED, RELATING TO PENALTIES ON COLLECTION OF AND EXECUTION ON DELINQUENT TAXES, SO AS TO REQUIRE WAIVER OF THE PENALTY IF THE CURRENT OWNER DID NOT RECEIVE NOTICE BECAUSE OF A TRANSFER DURING THE TAX YEAR; TO AMEND SECTION 12-51-40, AS AMENDED, RELATING TO LEVY AND EXECUTION BY DISTRESS AND SALE OF PROPERTY TO SATISFY DELINQUENT COUNTY TAXES, SO AS TO PROVIDE COUNTIES THE ALTERNATIVE COLLECTION PROCEDURES PROVIDED FOR IN CHAPTER 56, TITLE 12; AND TO AMEND SECTION 12-60-2150, RELATING TO THE RIGHT OF A CONTESTED HEARING IN REFUND DETERMINATIONS, SO AS TO REPLACE "COUNTY ASSESSOR" WITH "LOCAL GOVERNING BODY".

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

Establishes the property tax exemption calculation

SECTION 1. Section 12-37-251(A) of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:

"(A)(1) The State Property Tax Relief Fund is established at an amount equal to the revenue necessary to fund a property tax exemption of one hundred thousand dollars based on the fair market value of property classified pursuant to Section 12-43-220(c) calculated on the school operating millage imposed for tax year 1995 or the current school operating millage, whichever is lower, excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital construction. The 1995 tax year school operating millage or the current school operating millage, whichever is lower, is the base year millage for purposes of calculating the amount necessary to fund the State Property Tax Relief Fund in accordance with this section. However, in years in which the values resulting from a county-wide reassessment and equalization program are implemented, the base year millage must be adjusted to an equivalent millage rate in the manner that the Department of Revenue shall prescribe. Funds distributed to a taxing district as provided in subsection (B) of this section must be used to provide a uniform property tax exemption for all property in the taxing district which is classified pursuant to Section 12-43-220(c), excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital construction.

(2) Notwithstanding the provisions of this subsection, a school district whose operating millage falls below the 1995 school year operating millage may request to receive tax relief based on the 1995 operating millage, or equivalent millage rate, if one of the following conditions are met:

(a) the current operating millage per pupil plus the current debt service millage is equal to or less than the total millage per pupil for 1995;

(b) the operating millage per pupil for the 1995 tax year reduced by the amount by which the total millage per pupil for all purposes in the current year exceeds the total millage per pupil for the 1995 tax year but not below the actual operating millage per pupil for the current year.

The Department of Revenue is responsible for certifying that the conditions are met based on the latest completed fiscal year data of the requesting district.

Any funds received by an eligible school district in excess of its current millage under this subsection may be used by the district to pay bonded indebtedness."

Includes business personal returns

SECTION 2. Section 12-37-750 of the 1976 Code is amended to read:

"Section 12-37-750. When a taxpayer has omitted or neglected to make a return of his property for taxation or has made a false return for or in any year, including business personal returns filed with the Department of Revenue, and the county auditor of the county in which the return should have been made is informed of that fact within the period of time within which the State may bring suit for the collection of the taxes, the auditor shall notify the defaulting taxpayer, or, if he is dead, his personal or legal representative, to appear before him at his office at a time set in the notice and shall assess the property not returned as prescribed in Sections 12-37-760 to 12-37-780. If notice must be given to a nonresident, the notice must be served by publication in some newspaper and by mailing a copy of it to the nonresident as prescribed for service of nonresidents by Title 15, and taxes must be assessed and collected as provided by statute."

Calculates fair market value for agricultural purposes

SECTION 3. Section 12-43-220(d)(2)(B)(i) of the 1976 Code, as last amended by Act 558 of 1988, is further amended to read:

"(i) For tax year 1988 and subsequent tax years, fair market value for agricultural purposes must be determined by adjusting the applicable base year value by an amount equal to the product of multiplying the applicable base year value by a percentage factor obtained through the formula provided in this item. For tax year 1988, the applicable base year is 1981. The fair market value for agricultural purposes determined for the 1991 tax year is effective for all subsequent years."

Provides for collection procedures

SECTION 4. Section 12-51-40 of the 1976 Code, as last amended by Act 431 of 1996, is further amended by adding:

"(e) As an alternative, upon approval by the county governing body, a county may use the procedures provided in Chapter 56, Title 12 as the initial step in the collection of delinquent taxes on real and personal property."

Replaces "county assessor" with "local governing body"

SECTION 5. The first paragraph of Section 12-60-2150(H) of the 1976 Code, as added by Act 60 of 1995, is further amended to read:

"A property taxpayer or the local governing body who disagrees with the department determination may request a contested case hearing before the Administrative Law Judge Division by filing the request in accordance with the Administrative Law Judge Division rules within thirty days of the date of the department determination."

Defines "enterprise charge" and "refinancing agreement"

SECTION 6. Section 11-27-110(A) of the 1976 Code, as added by Act 55 of 1995, is amended to read:

"(A) As used in this section:

(1) 'asset' means any real property and permanent improvements thereon including structures, buildings, and fixtures;

(2) 'bond act' means:

(a) the county bond act, as contained in Chapter 15 of Title 4;

(b) the municipal bond act, as contained in Article 5, Chapter 21 of Title 5;

(c) the school bond act as contained in Article 1, Chapter 71 of Title 59;

(d) the provisions contained in Articles 3 and 5 of Chapter 11 of Title 6 pertaining to special purpose districts;

(e) any provision of law by which the State may issue obligations secured in whole or in part by the full faith, credit, and taxing power of the State; and

(f) any other law, general or special, providing for the issuance of general obligation bonds by the State or any of its political subdivisions;

(3) 'constitutional debt limit' for the State or any political subdivision of the State which has the power to incur general obligation bonded indebtedness, means the limitation of the principal amount of general obligation bonded indebtedness specified in Article X of the Constitution;

(4) 'enterprise charge' means a local accomodations tax or a local hospitality tax, or both of them, imposed by one or more governmental entities, the proceeds from which may be used only for limited purposes which either (i) has been imposed within the two fiscal years prior to the date of an enterprise financing agreement, or (ii) to the extent a governmental entity pledges such a charge in connection with an enterprise financing agreement, the governmental entity covenants and agrees not to increase disbursements from its general fund to pay for costs which could have been paid from the charge for a period of two fiscal years after the date of the acquisition or completion of the asset provided by the enterprise financing agreement;

(5) 'enterprise financing agreement' means a financing agreement entered into to provide an asset for a governmental enterprise (i) the revenues from which are expected to be sufficient to pay the amounts due under the financing agreement, or (ii) for which an enterprise charge has been imposed in an amount expected to be sufficient to pay the amounts due under the financing agreement, or (iii) a combination of revenues described under (i) and (ii) are expected to produce an amount sufficient to pay the amounts due under the financing agreement;

(6) 'financing agreement' means any contract entered into after December 31, 1995, under the terms of which a governmental entity acquires the use of an asset which provides:

(a) for payments to be made in more than one fiscal year, whether by the stated term of the contract or under any renewal provisions, optional or otherwise;

(b) that the payments thereunder are divided into principal and interest components or which contain any reference to any portion of any payment under the agreement being treated as interest; and

(c) that title to the asset will be in the name of or be transferred to the governmental entity if all payments scheduled or provided for in the financing agreement are made, but the term excludes any refinancing agreement and contracts entered into in connection with issues of general obligation bonds or revenue bonds issued pursuant to authorization provided in Article X of the Constitution;

(7) 'governmental enterprise' means any activity undertaken by a governmental entity which either (i) derives revenues from or because of an activity on a basis other than the exercise of the power of taxation by that governmental entity, or (ii) is entitled to be paid or supported from an enterprise charge;

(8) 'governmental entity' means:

(a) the State, whose general obligation debt service payments are limited pursuant to Section 13, Article X of the Constitution; or

(b) any political subdivision of the State including a municipality, county, school district, special purpose district, or similar entity, whose general obligation debt is limited as provided in Sections 14 and 15, in Article X of the Constitution;

(9) 'limited bonded indebtedness' means the amount of bonded indebtedness that may be incurred by a governmental entity without a referendum or, where the context requires, the amount of such indebtedness then outstanding;

(10) 'principal balance' means the total amount, excluding any amount characterized as interest, payable as of any time of consideration under any financing agreement, including any renewals or extensions of the agreement; and

(11) 'refinancing agreement' means an agreement or agreements that would be a financing agreement except that (i) it refinances an asset acquired under the terms of a contract or contracts that is not a financing agreement solely by virtue of being dated prior to January 1, 1996, and (ii) the sum of all payments to be made under such agreement is less than the sum of the payments under the contract or contracts it refinances."

Waives penalty under certain conditions

SECTION 7. Section 12-45-180 of the 1976 Code, as last amended by Act 60 of 1995, is further amended to read:

"Section 12-45-180. (A) When the taxes and assessments or any portion of the taxes and assessments charged against any property or person on the duplicate for the current fiscal year are not paid before the sixteenth day of January or thirty days after the mailing of tax notices, whichever occurs later, the county auditor shall add a penalty of three percent on the county duplicate and the county treasurer shall collect the penalty. If the taxes, assessments, and penalty are not paid before the second day of the next February, an additional penalty of seven percent must be added by the county auditor on the county duplicate and collected by the county treasurer. If the taxes, assessments, and penalties are not paid before the seventeenth day of the next March, an additional penalty of five percent must be added by the county auditor on the county duplicate and collected by the county treasurer. If the taxes, assessments, and penalties are not paid before the seventeenth day of March, the county treasurer shall issue his tax execution to the officer authorized and directed to collect delinquent taxes, assessments, penalties, and costs for their collection as provided in Chapter 51 of this title and they must be collected as required by that chapter. The United States postmark is the determining date for mailed payments. If the county treasurer determines by proper evidence that the mailing of a tax payment was improperly postmarked, and this error results in the imposition of a penalty provided in this subsection, then the penalty imposed may be waived by the county treasurer.

(B) If title to real property is transferred during a tax year and the records of the county indicate that the tax notice was mailed or otherwise forwarded to the prior owner and the current owner received no timely notice of the tax due on the property, the treasurer shall waive any penalties imposed pursuant to subsection (A) of this section."

Time effective

SECTION 8. This act takes effect upon approval by the Governor.

Approved the 13th day of June, 1997.