S 0678 General Bill, By Mescher
 A BILL TO AMEND ARTICLE 3, CHAPTER 37, TITLE 12, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO EXEMPTIONS FROM PROPERTY TAX, BY ADDING SECTION
 12-37-253 SO AS TO EXPAND THE HOMESTEAD TAX EXEMPTION BY PROVIDING THAT
 RESIDENTIAL OWNER-OCCUPIED REAL PROPERTY WHICH IS OWNED BY A PERSON WHO HAS
 REACHED THE AGE OF SIXTY AND HAS BEEN A RESIDENT FOR ONE YEAR, IS EXEMPT FROM
 AD VALOREM TAXATION TO THE EXTENT THE FAIR MARKET VALUE EXCEEDS THE VALUE OF
 THE PROPERTY DETERMINED AT THE REASSESSMENT THAT OCCURRED IMMEDIATELY PRIOR TO
 THE EFFECTIVE DATE OF THIS ACT OR IMMEDIATELY PRIOR TO THE PERSON BECOMING
 ELIGIBLE UNDER THIS SECTION, WHICHEVER IS LATER, AS LONG AS THE PROPERTY
 REMAINS OCCUPIED BY THE SAME OWNER; TO PROVIDE FOR EXCEPTIONS TO THE
 REQUIREMENT OF OWNERSHIP IN FEE FOR ELIGIBILITY; AND TO PROVIDE THAT THE VALUE
 OF PROPERTY EXEMPT FROM TAXATION IN THE MANNER PROVIDED IN THIS SECTION IS
 CONSIDERED TAXABLE FOR PURPOSES OF BONDED INDEBTEDNESS PURSUANT TO SECTIONS 14
 AND 15 OF ARTICLE X OF THE CONSTITUTION OF THIS STATE, AND FOR PURPOSES OF
 COMPUTING THE "INDEX OF TAXPAYING ABILITY" PURSUANT TO SECTION 59-20-20(3).

   04/22/97  Senate Introduced and read first time SJ-9
   04/22/97  Senate Referred to Committee on Finance SJ-9

TO AMEND ARTICLE 3, CHAPTER 37, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM PROPERTY TAX, BY ADDING SECTION 12-37-253 SO AS TO EXPAND THE HOMESTEAD TAX EXEMPTION BY PROVIDING THAT RESIDENTIAL OWNER-OCCUPIED REAL PROPERTY WHICH IS OWNED BY A PERSON WHO HAS REACHED THE AGE OF SIXTY AND HAS BEEN A RESIDENT FOR ONE YEAR, IS EXEMPT FROM AD VALOREM TAXATION TO THE EXTENT THE FAIR MARKET VALUE EXCEEDS THE VALUE OF THE PROPERTY DETERMINED AT THE REASSESSMENT THAT OCCURRED IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS ACT OR IMMEDIATELY PRIOR TO THE PERSON BECOMING ELIGIBLE UNDER THIS SECTION, WHICHEVER IS LATER, AS LONG AS THE PROPERTY REMAINS OCCUPIED BY THE SAME OWNER; TO PROVIDE FOR EXCEPTIONS TO THE REQUIREMENT OF OWNERSHIP IN FEE FOR ELIGIBILITY; AND TO PROVIDE THAT THE VALUE OF PROPERTY EXEMPT FROM TAXATION IN THE MANNER PROVIDED IN THIS SECTION IS CONSIDERED TAXABLE FOR PURPOSES OF BONDED INDEBTEDNESS PURSUANT TO SECTIONS 14 AND 15 OF ARTICLE X OF THE CONSTITUTION OF THIS STATE, AND FOR PURPOSES OF COMPUTING THE "INDEX OF TAXPAYING ABILITY" PURSUANT TO SECTION 59-20-20(3).

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

SECTION 1. This act may be cited as the "Homestead Tax Exemption Expansion Act" of 1997.

SECTION 2. Article 3, Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-253. (A) Real property assessed pursuant to Section 12-43-220(c), which is owned by a person who has been a resident of this State for at least one year and has reached the age of sixty years on or before December thirty-first, is exempt from ad valorem taxation to the extent the fair market value exceeds the value of the property determined at the reassessment that occurred immediately prior to the effective date of this act or immediately prior to the person becoming eligible under this section, whichever is later, as long as the property remains occupied by the same owner. This exemption is in addition to property tax exemptions allowed by any other provision of law.

(B) The assessor's office of each county must determine eligibility for the exemption in subsection (A) and apply the exemption accordingly.

(C) If a person is eligible for the exemption under subsection (A) except that he does not own his property in fee, he may nonetheless receive this exemption for his legal residence, upon application to the assessor's office, if it is:

(1) jointly owned in complete fee simple or life estate by husband and wife, and either meets the age and residency qualifications of this section;

(2) a mobile home owned by him located on property leased from another;

(3) located on leased or rented property, even though at the end of the lease period the lessor becomes owner of the residence;

(4) a life estate created by will or otherwise;

(5) legally owned by a trustee who is holding the property in trust for a beneficiary who is qualified for the exemption under subsection (A); or

(6) owned part in fee or in part for life, provided that the amount of the exemption must be determined by multiplying the percentage of the fee or life estate owned by the person by the full exemption.

(D) The provisions of this section must be liberally construed in favor of the taxpayer and to accomplish the intent of the General Assembly to relieve the hardship on older citizens cause by rising property taxes.

(E) Notwithstanding any other provision of law, the value of property exempt from taxation in the manner provided in this section is considered taxable for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the `index of taxpaying ability' pursuant to Section 59-20-20(3)."

SECTION 3. This act takes effect upon approval by the Governor and applies to property tax years beginning after 1997. No refunds may be paid for property tax years before 1998 as a result of the exemption allowed by this section.