S 543 Session 112 (1997-1998)
S 0543 General Bill, By McConnell
A BILL TO AMEND SECTION 12-37-250, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO HOMESTEAD TAX EXEMPTION, SO AS TO PROVIDE FOR TRANSFER OF THE
HOMESTEAD TAX EXEMPTION UPON DISPOSAL OF A DWELLING PLACE AND ACQUISITION OF A
NEW DWELLING PLACE BY A TAXPAYER.
03/18/97 Senate Introduced and read first time SJ-4
03/18/97 Senate Referred to Committee on Finance SJ-4
A BILL
TO AMEND SECTION 12-37-250, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO HOMESTEAD TAX
EXEMPTION, SO AS TO PROVIDE FOR TRANSFER OF THE
HOMESTEAD TAX EXEMPTION UPON DISPOSAL OF A
DWELLING PLACE AND ACQUISITION OF A NEW
DWELLING PLACE BY A TAXPAYER.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 12-37-250 of the 1976 Code is amended to
read:
"Section 12-37-250. The first twenty thousand dollars of the fair
market value of the dwelling place of a person is exempt from
county, municipal, school, and special assessment real estate property
taxes when the person has been a resident of this State for at least one
year and has reached the age of sixty-five years on or before
December thirty-first, the person has been classified as totally and
permanently disabled by a state or federal agency having the function
of classifying persons, or the person is legally blind as defined in
Section 43-25-20, preceding the tax year in which the exemption is
claimed and holds complete fee simple title or a life estate to the
dwelling place. A person claiming to be totally and permanently
disabled, but who has not been classified by one of the agencies,
may apply to the State Agency of Vocational Rehabilitation. The
agency shall make an evaluation of the person using its own
standards. The exemption includes the dwelling place when jointly
owned in complete fee simple or life estate by husband and wife, and
either has reached sixty-five years of age, or is totally and
permanently disabled, or legally blind under this section, before
January first of the tax year in which the exemption is claimed, and
either has been a resident of the State for one year. The exemption
must not be granted for the tax year in which it is claimed unless the
person or his agent makes written application for the exemption
before July sixteenth of that tax year. If the person or his agent makes
written application for the exemption after July fifteenth, the
exemption must not be granted except for the succeeding tax year for
a person qualifying under this section when the application is made.
However, if application is made after July fifteenth of that tax year
but before the first penalty date on property taxes for that tax year by
a person qualifying under this section when the application is made,
the taxes due for that tax year must be reduced to reflect the
exemption provided in this section. The application for the exemption
must be made to the auditor of the county and to the governing body
of the municipality in which the dwelling place is located upon forms
provided by the county and municipality and approved by the
Comptroller General, and a failure to apply constitutes a waiver of
the exemption for that year. Beginning with tax year 1979 the
auditor, as directed by the Comptroller General, shall notify the
municipality of all applications for a homestead exemption within the
municipality and the information necessary to calculate the amount
of the exemption. 'Dwelling place' means the permanent home and
legal residence of the applicant.
When any person would be entitled to a homestead tax exemption
under this section except that he does not own the real property on
which his dwelling place is located and his dwelling place is a mobile
home owned by him located on property leased from another, such
mobile home shall be exempt from personal property taxes to the
same extent and obtained in accordance with the same procedures as
is provided for in this section for an exemption from real property
taxes; provided, however, that no person shall receive such an
exemption from both real and personal property taxes in the same
year.
When a dwelling house and legal residence is located on leased or
rented property and such dwelling house is owned and occupied by
the owner even though at the end of the lease period the lessor
becomes owner of the residence, the owner lessee shall qualify for
and be entitled to a homestead exemption in the same manner as
though he owned a fee simple or life estate interest in the leased
property on which his dwelling house is located.
When any person who was entitled to a homestead tax exemption
under this section dies or any person who was not sixty-five years of
age or older, blind, or disabled on or before December thirty-first
preceding the application period, but was at least sixty-five years of
age, blind, or disabled at the time of his death and was otherwise
entitled dies and the surviving spouse is at least fifty years of age and
acquires complete fee simple title or a life estate to the dwelling place
within nine months after the death of the spouse, the dwelling place
is exempt from real property taxes to the same extent and obtained in
accordance with the same procedures as are provided for in this
section for an exemption from real property taxes so long as the
spouse remains unmarried and the dwelling place is utilized as the
permanent home and legal residence of the spouse. A surviving
spouse who disposes of the dwelling place and acquires another
residence in this State for use as a dwelling place may apply for and
receive a transfer of the exemption on applicable
to the tax year in which the sale is made to the newly acquired
dwelling place. The spouse shall inform the county auditor of the
change in address of the dwelling place.
The term 'permanently and totally disabled' as used herein shall
mean the inability to perform substantial gainful employment by
reason of a medically determinable impairment, either physical or
mental, which has lasted or is expected to last for a continuous period
of twelve months or more or result in death.
The Comptroller General shall reimburse the state agency of
Vocational Rehabilitation for the actual expenses incurred in making
decisions relative to disability from funds appropriated for
homestead reimbursement.
The Comptroller General shall promulgate such rules and
regulations as may be necessary to carry out the provisions herein.
Nothing herein shall be construed as an intent to cause the
reassessment of any person's property.
The provisions of this section shall apply to life estates created by
will and also to life estates otherwise created which were in effect on
or before December 31, 1979.
The homestead tax exemption must be granted in the amount in this
paragraph to those persons who own a dwelling in part in fee or in
part for life when the persons satisfy the other conditions of the
exemption. 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. For purposes of the calculation
required by this paragraph, a percentage of ownership less than five
percent is considered to be five percent. The exemption may not
exceed the value of the interest owned by the person.
Notwithstanding any other provision of law, any person who
has been granted a homestead exemption pursuant to the provisions
of this section may apply for and receive a transfer of the exemption
to a newly acquired dwelling place upon disposal of their former
dwelling place without regard to the date of acquisition of the new
dwelling place."
SECTION 2. This act takes effect upon approval by the Governor.
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