H 3095 General Bill, By Inabinett, Altman, Bauer, Clyburn and Knotts

Similar(H 4695)
 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.

   01/08/97  House  Prefiled
   01/08/97  House  Referred to Committee on Ways and Means
   01/14/97  House  Introduced and read first time HJ-45
   01/14/97  House  Referred to Committee on Ways and Means HJ-45

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 section as a result of the limits on assessments required by this section."

SECTION 2. This act takes effect January 1, 1998.