H 4672 Session 111 (1995-1996)
H 4672 General Bill, By Inabinett, Breeland, J. Brown, A.W. Byrd, Clyburn,
Cobb-Hunter, Govan, Haskins, R.J. Herdklotz, J. Hines, M.F. Jaskwhich,
Littlejohn, Lloyd, Loftis, J.H. Neal, Meacham, Scott, Simrill, Tripp, Vaughn,
D.C. Waldrop, Whipper, L.S. Whipper, J.M. White and D. Williams
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
12-37-224 so as to provide a limit on increased in fair market value of
owner-occupied residential property due to countywide reassessment programs
while the property is occupied by the same owner or that owner's spouse, to
provide exceptions, and to give this provision retroactive effect in certain
instances without any provision for refunds in these limited cases.
02/26/96 House Introduced and read first time HJ-4
02/26/96 House Referred to Committee on Ways and Means HJ-4
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE A
LIMIT ON INCREASES IN FAIR MARKET VALUE OF
OWNER-OCCUPIED RESIDENTIAL PROPERTY DUE TO
COUNTYWIDE REASSESSMENT PROGRAMS WHILE THE
PROPERTY IS OCCUPIED BY THE SAME OWNER OR THAT
OWNER'S SPOUSE, TO PROVIDE EXCEPTIONS, AND TO
GIVE THIS PROVISION RETROACTIVE EFFECT IN CERTAIN
INSTANCES WITHOUT ANY PROVISION FOR REFUNDS IN
THESE LIMITED CASES.
Whereas, local government meets the cost of many of its public
services through imposition and collection of ad valorem property
taxes; and
Whereas, Article X of the South Carolina Constitution, as
implemented by the provisions of Act 208 of 1975, requires that
reassessments be undertaken with some frequency; and
Whereas, as a consequence of the explosive growth in residential
property values, the required reassessment process often results in
increased values being assigned to primary residences of our state's
citizens resulting in increased property taxes becoming an unfair
burden to our homeowners in contravention of the philosophy
underlying Act 208; and
Whereas, the existing required reassessment process jeopardizes the
ability of our state's homeowners to remain in their principal
residence; and
Whereas, the General Assembly has repeatedly recognized the value
of homeownership as evidenced by the four percent assessment
ratio, the homestead exemption, the creation of the South Carolina
Housing Authority, as well as other pieces of state legislation; and
Whereas, the General Assembly finds it necessary to further protect
homeownership by adopting legislation addressing the reassessment
process to ensure that those who purchase their homes or those who
have worked for generations to provide a home for themselves and
their families shall continue to enjoy their homesteads undisturbed;
and
Whereas, the General Assembly has determined that such
protections should be provided our state's homeowners. Now,
therefore,
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. 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 assessed value of owner-occupied residential property
assessed pursuant to Section 12-43-220(c) 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 must be
assessed at fair market value.
(B) For the purposes of ad valorem taxation, the assessed 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 must be assessed at
fair market value.
(C) If property assessed pursuant to subsection (A) of this
section is permanently improved, the improvements must be
assessed at 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 assessed value may
not be more than one hundred percent higher than the assessed
value of the property in 1992.
(E) 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. This act takes effect January 1, 1997.
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