S 451 Session 109 (1991-1992)
S 0451 General Bill, By J.M. Waddell
A Bill to amend Chapter 37, Title 12, Code of Laws of South Carolina, 1976,
relating to property taxes, by adding Article 4 so as to enact the Homestead
Property Tax Deferral For the Elderly Act.
01/10/91 Senate Introduced and read first time SJ-5
01/10/91 Senate Referred to Committee on Finance SJ-5
02/14/91 Senate Committee report: Favorable with amendment
Finance SJ-16
02/19/91 Senate Amended SJ-14
02/19/91 Senate Read second time SJ-15
02/19/91 Senate Unanimous consent for third reading on next
legislative day SJ-15
02/20/91 Senate Read third time and sent to House SJ-12
02/20/91 House Introduced and read first time HJ-18
02/20/91 House Referred to Committee on Ways and Means HJ-18
COMMITTEE AMENDMENT ADOPTED
February 19, 1991
S. 451
Introduced by SENATOR Waddell
S. Printed 2/19/91--S.
Read the first time January 10, 1991.
A BILL
TO AMEND CHAPTER 37, TITLE 12, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO PROPERTY TAXES, BY
ADDING ARTICLE 4 SO AS TO ENACT THE HOMESTEAD
PROPERTY TAX DEFERRAL FOR THE ELDERLY ACT.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 37, Title 12 of the 1976 Code is amended by
adding:
"Article 4
The Homestead Property
Tax Deferral for the Elderly Act
Section 12-37-505. This act may be cited as the Homestead
Property Tax Deferral for the Elderly Act.
Section 12-37-510. As used in this article:
(1) `Gross household income' means all income, for all
individuals residing within the household, from whatever source derived
including, but not limited to, the following sources:
(a) compensation for services including fees, commissions,
and similar items;
(b) gross income derived from business;
(c) gains derived from dealings in property;
(d) interest;
(e) rents;
(f) royalties;
(g) dividends;
(h) alimony and separate maintenance payments;
(i) income from life insurance and endowment contracts;
(j) annuities;
(k) pensions;
(l) income from discharge of indebtedness;
(m) distributive share of partnership gross income;
(n) income from an interest in an estate or trust; and
(o) federal old-age, survivor, or disability benefits.
(2) `Household' means an individual or group of individuals
living together in a room or group of rooms as a housing unit.
(3) `Tax collector' means the county treasurer or municipal officer
authorized by law to receive property tax payments.
Section 12-37-515. (A) Any individual who is entitled to
claim a homestead exemption pursuant to Section 12-37-250 may elect
to defer payment of all or part of the ad valorem taxes levied on his
homestead by filing an annual application for tax deferral with the tax
collector before May first of the year for which the deferral is sought.
If the homestead for which a deferral is requested has an assessed value
for purposes of ad valorem taxation of two thousand dollars or more, the
deferral may apply only to the taxes on that portion of the assessed value
which is two thousand dollars or less.
(B) It is the duty of each applicant for a deferral to demonstrate
affirmatively his compliance with the requirements of this article.
Section 12-37-520. (A) As an alternative to the tax deferral
authorized by Section 12-37-515, an individual who is entitled to claim
a homestead exemption pursuant to Section 12-37-250 may elect to defer
payment of all or any part of that portion of the ad valorem taxes levied
on the individual's homestead which exceeds four percent of the
individual's gross household income for the immediately preceding
calendar year. An application for tax deferral under this section must be
filed annually with the tax collector before May first of the year for
which the deferral is sought. If an individual files for a tax deferral
under this section, he may not file for a tax deferral under Section 12-37-515.
(B) The amount of the assessed value of the homestead does not
limit the tax deferral authorized by this section.
(C) It is the duty of each applicant for a deferral under this section
to demonstrate affirmatively the applicant's compliance with this section
and other provisions of this article.
Section 12-37-522. No tax deferral in any one year may be granted
pursuant to Section 12-37-515 or Section 12-37-520:
(1) if the total amount of deferred taxes and interest plus the
total amount of all other unsatisfied liens on the homestead exceeds
eighty-five percent of the fair market value of the homestead as shown
on the county tax duplicate for the immediately preceding tax year;
(2) if the applicant's gross household income for the immediately
preceding calendar year exceeds fifteen thousand dollars;
(3) if the homestead for which the deferral is sought is subject to
any lien, the terms of which are dictated by federal law, rule, or
regulation prohibiting deferral of taxes; or
(4) with respect to taxes levied to retire bonded indebtedness or
for special assessments.
Section 12-37-525. (A) The application for deferral must be made
upon a form prescribed by the Tax Commission and furnished by the tax
collector. The application form must advise the applicant of the manner
in which interest is computed. Each application form must contain an
explanation of the conditions to be met for approval and the conditions
under which deferred taxes and interest become due, payable, and
delinquent. Each application form must clearly state that all deferrals
pursuant to this article constitute a lien on the applicant's homestead.
(B) A form of oath must be provided and administered to the
individual seeking the deferral. The oath may be administered by the tax
collector or any individual authorized by law to administer oaths.
(C) (1) The tax collector shall consider each annual application
for homestead tax deferral within thirty days of the date the application
is filed or as soon as practicable thereafter. If the tax collector finds that
the applicant is entitled to the tax deferral, he shall approve the
application and file the application in the permanent records. If the tax
collector finds that the applicant is not entitled to the deferral, he shall
send a notice of disapproval to the applicant giving his reasons for the
disapproval within thirty days of the filing of the application either by
personal delivery or by certified mail to the mailing address given by the
applicant, and he shall make a return on the original notice of the
manner in which the notice was served on the applicant and shall file the
return among the permanent records of his office. The original notice
of disapproval sent to the applicant must advise the applicant of his right
to appeal the decision of the tax collector to the Tax Commission and
must inform the applicant of the procedure for filing an appeal.
(2) An appeal of the decision of the tax collector to the
commission must be in writing on a form prescribed by the commission
and furnished by the tax collector. The appeal must be filed with the
commission within twenty days after the applicant's receipt of the notice
of disapproval. The commission shall review the application and
evidence presented to the tax collector upon which the applicant based
his claim for a tax deferral and, at the election of the applicant, shall hear
the applicant in person or by agent in his behalf on his right to a
homestead tax deferral. The commission shall reverse the decision of
the tax collector or tax commissioner and shall grant a homestead tax
deferral to the applicant if in its judgment the applicant is entitled to the
deferral, or it shall affirm the decision of the tax collector. The action
by the commission is final unless the applicant, tax collector, or other
lienholder files an appeal with the court of common pleas of the county
in which the property lies within thirty days from the date the taxpayer
receives written notification of the decision of the commission.
(D) Each application must contain a list and the current value of
all outstanding liens on the applicant's homestead.
(E) If proof of fire and extended coverage insurance has not been
furnished with a prior application, each applicant shall furnish proof of
this insurance in an amount which is in excess of the sum of all
outstanding liens and deferred taxes and interest with a loss payable
clause to the tax collector.
Section 12-37-530. (A) The amount of taxes deferred pursuant to
this article accrues interest until paid at the rate of eight percent a year.
(B) Interest on taxes deferred pursuant to this article in any year
begins accruing on the date the taxes were due.
Section 12-37-535. The taxes and interest deferred pursuant to this
article constitute a prior lien and attach as of the date and in the same
manner and must be collected as are other liens for taxes, as provided for
under this title, but the deferred taxes and interest are due, payable, and
delinquent as provided in this article. Notwithstanding any other
provision of law, the lien established by this section continues on the
property until the deferred taxes and interest are paid in full.
Section 12-37-540. Each year, at the time the tax notices are mailed,
the tax collector shall notify each property owner to whom a homestead
tax deferral has been previously granted of the accumulated sum of
deferred taxes and interest outstanding.
Section 12-37-545. (A) If there is a change in tax-deferred
property so that the owner is no longer entitled to a homestead
exemption for the property pursuant to Section 12-37-250, or if the
owner fails to maintain the required fire and extended insurance
coverage, the total amount of deferred taxes and interest for all previous
years are due and payable either on the date on which the change occurs
or on the date failure to maintain insurance occurs.
(B) If there is a change in ownership of tax-deferred property, the
total amount of deferred taxes and interest for all previous years is due
and payable on the date the change in ownership occurs. When,
however, the change in ownership is to a surviving spouse and the
spouse is eligible for a homestead exemption on the property pursuant
to Section 12-37-250, the surviving spouse may continue the deferral of
previously deferred taxes and interest pursuant to this article.
(C) During any year in which the total amount of deferred taxes,
interest, and all other unsatisfied liens on a homestead exceeds eighty-five percent of the fair market value of the homestead, the tax collector
shall immediately notify the owner of the homestead that the portion of
taxes and interest which exceeds eighty-five percent of the value of the
homestead is due and payable within thirty days of receipt of the notice.
Failure to pay the amount due shall cause the total amount of deferred
taxes and interest also to become due and payable at the end of the thirty
days.
(D) Each year, upon notification, each owner of property on which
taxes and interest have been deferred shall submit to the tax collector a
list, and the current value, of all outstanding liens on the owner's
homestead. Failure to respond to the notification within thirty days of
its receipt shall cause the total amount of deferred taxes and interest to
become due and payable at the end of the thirty days.
(E) All deferred taxes which are made due and payable by this
section are delinquent and subject to interest in accordance with Section
12-54-20 at the end of one hundred twenty days following the date the
deferred taxes become due and payable.
Section 12-37-550. (A) All or part of the deferred taxes and
accrued interest may be paid at any time to the tax collector by:
(1) the owner of the property or the spouse of the owner, or
(2) the next of kin of the owner, heir of the owner, child of the
owner, or any person having or claiming a legal or equitable interest in
the property, provided that no objection is made by the owner within
thirty days after the tax collector notifies the owner of the fact that the
payment has been tendered. Any payment made under this item must be
deposited in a special escrow account for the thirty-day period; and the
tax collector may not make distribution of the amount while the funds
are held in escrow.
(B) Any partial payment made pursuant to this section must be
applied first to accrued interest. By ordinance of the governing body of
the county or municipality, a minimum amount of partial payment which
may be accepted pursuant to this part may be established, but required
minimum payment may not exceed twenty-five dollars.
Section 12-37-555. When deferred taxes or interest is collected,
the tax collector shall maintain a record of the payment, which record
must contain a description of the property and the amount of taxes or
interest collected for the property. The tax collector shall distribute
payments received to the local taxing entities to whom the taxes are
owed and the interest must be distributed as taxes are distributed.
Section 12-37-560. If any holder of a deed to secure debt or any
mortgagee elects to pay the taxes of an applicant who qualifies for and
receives a tax deferral, the election does not give the holder of the deed
or the mortgagee the right to foreclose.
Section 12-37-565. Except with respect to requirements dictated by
federal law, rule, or regulation, no mortgage, deed to secure debt, or
other agreement may contain a provision, clause, or statement which
prohibits the owner from claiming a real property tax deferral on his
homestead. Any provision, clause, or statement executed after
December 31, 1991, is void and unenforceable.
Section 12-37-570. (A) The following penalties are imposed on
a person who wilfully files information required under this article which
is incorrect:
(1) The person shall pay the total amount of taxes and interest
deferred, which is immediately due;
(2) The person is disqualified from filing a homestead tax
deferral application for the next three years; and
(3) The person shall pay a penalty of twenty-five percent of
the total amount of taxes and interest deferred.
(B) A person against whom the penalties prescribed in this section
have been imposed may appeal the penalties imposed to the Tax
Commission within thirty days after the penalties are imposed."
SECTION 2. This act takes effect January 1, 1992, and first applies with
respect to property taxes due for the 1992 tax year.
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