H 4729 Session 111 (1995-1996)
H 4729 General Bill, By Robinson, Kirsh, Koon, C.V. Marchbanks and Trotter
A Bill to amend Title 12, Code of Laws of South Carolina, 1976, relating to
taxation, by adding Chapter 52 so as to establish the procedures which shall
be used by local governments to collect delinquent property taxes except for
delinquent taxes on motor vehicles; and to repeal Chapter 51 of Title 12
relating to the alternate procedure for the collection of property taxes.
03/12/96 House Introduced and read first time HJ-5
03/12/96 House Referred to Committee on Ways and Means HJ-5
A BILL
TO AMEND TITLE 12, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO TAXATION BY ADDING
CHAPTER 52 SO AS TO ESTABLISH THE PROCEDURES
WHICH SHALL BE USED BY LOCAL GOVERNMENTS TO
COLLECT DELINQUENT PROPERTY TAXES EXCEPT FOR
DELINQUENT TAXES ON MOTOR VEHICLES; AND TO
REPEAL CHAPTER 51 OF TITLE 12 RELATING TO THE
ALTERNATE PROCEDURE FOR THE COLLECTION OF
PROPERTY TAXES.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. The General Assembly finds that the current
procedures and laws used to collect delinquent taxes particularly on
real property are inadequate to encourage timely payment of
property taxes. The General Assembly further finds that the failure
of taxpayers to make timely payment of property taxes increases the
tax burden on those taxpayers who make timely payments. It is the
intent and purpose of this act to encourage the payment of property
taxes prior to delinquency and to provide a method for local
governments to collect delinquent taxes in a timely and efficient
manner and thereby reduce the burden placed on taxpayers who
make timely payments. The procedures and methods provided in
this act do not apply to the collection of property taxes on motor
vehicles.
SECTION 2. Title 12 of the 1976 Code is amended by adding:
"CHAPTER 52
Collection of Delinquent Property Taxes
Section 12-52-100. After the county treasurer issues his
execution against a defaulting taxpayer in his jurisdiction, as
provided in Section 12-45-180, signed by him or his agent in his
official capacity, directed to the officer authorized to collect
delinquent taxes, assessments, penalties, and costs, requiring him to
levy the execution by distress and sale of so much of the defaulting
taxpayer's estate, real or personal, or both, as may be sufficient to
satisfy the taxes, assessments, penalties, and costs, the officer to
which the execution is directed shall:
(a) On April first or as soon thereafter as practicable, mail a
notice of delinquent property taxes, penalties, assessments, and costs
to the owner of record at the best address available which is either
the address shown on the deed conveying the property to him, the
property address, or such other corrected or forwarding address that
the owner of record has filed with the appropriate tax authority and
to a known grantee of the delinquent taxpayer of the property on
which the delinquency exists. The notice must specify that if the
taxes, penalties, assessments, and costs are not paid, a tax lien on
each parcel of real property must be sold for the taxes, assessments,
penalties, and costs thereon or, if the property is personal, that the
personal property must be advertised and sold to satisfy the
delinquency.
(b) If the property subject to the execution is real property, and
the taxes remain unpaid after thirty days from the date of mailing of
the delinquent notice, or as soon thereafter as practicable, prepare a
list of all real property upon which taxes are delinquent, describing
the real property by including the delinquent taxpayer's name, the
description of the property, a reference to the county auditor's
map-block-parcel number being sufficient for a description of
realty. The list must be accompanied by a notice stating that a tax
lien on each parcel of real property will, on a day specified, and
succeeding days, be sold by him at public auction at a place to be
designated for the delinquent taxes, assessments, penalties, and
costs.
(c) If the property subject to the execution is real property and
the taxes remain unpaid after thirty days from the mailing of the
delinquent notice, or as soon thereafter as practicable, post a notice
at one or more conspicuous places on the premises reading: `This
property will be sold for delinquent taxes by the person officially
charged with the collection of delinquent taxes of
(name of political subdivision).'
(d) If the property subject to the execution is personal property
and the taxes remain unpaid after thirty days from the date of
mailing of the delinquent notice, or as soon thereafter as
practicable, take exclusive possession of so much of the defaulting
taxpayer's personal property as is necessary to satisfy the payment
of the taxes, assessments, penalties, and costs. Exclusive possession
is taken by mailing the notice of delinquent property taxes,
assessments, penalties, and costs to the person at the address shown
on the tax receipt or to a more correct address known to the officer.
All delinquent notices shall specify that if the taxes, assessments,
penalties, and costs are not paid on or before a subsequent sales
date, the personal property must be advertised and sold for
delinquent property taxes, assessments, penalties, and costs. The
return receipt for the certified mail notice is equivalent to `levying
by distress'.
(e) In the case of personal property, in the event the `certified
mail' notice has been returned, take exclusive physical possession
of the personal property against which the taxes, assessments,
penalties, and costs were assessed. The person officially charged
with the collection of delinquent taxes is not required to move the
personal property from where situated at the time of seizure and
further, the personal property may not be moved after it is seized
by anyone under penalty of conversion unless delinquent taxes,
assessments, penalties, and costs have been paid. Mobile homes are
considered to be personal property for the purposes of this section
unless the owner gives written notice to the auditor of the mobile
homes's annexation to the land on which it is situated.
(f) In the case of real property, mail a notice of the proposed
sale of the tax lien for delinquent property taxes, penalties,
assessments, and costs to the owner of record by certified mail,
return receipt requested -- deliver to addressee only at the best
address available which is either the address shown on the deed
conveying the property to him, the property address, or such other
corrected or forwarding address that the owner of record has filed
with the appropriate tax authority and to a known grantee of the
delinquent taxpayer of the property on which the tax lien and
delinquency exists. The notice must identify the property subject to
tax lien sale and must include the date, time, and place for the
proposed sale.
(g) Advertise the sale at public auction of the real property tax
lien or personal property. The advertisement must be in a
newspaper of general circulation within the county or municipality,
if applicable, and must be entitled `Delinquent Tax Sale'. It shall
include the delinquent taxpayer's name and the description of the
property, a reference to the county auditor's map-block-parcel
number being sufficient for a description of realty. The advertising
must be published once a week prior to the legal sales date for three
consecutive weeks for the sale of real property, and two consecutive
weeks for the sale of personal property. All expense of the levy,
seizure, and sale must be added and collected as additional costs,
and shall include, but not be limited to, the expense of taking
possession of personal property, advertising, storage, identifying the
boundaries of the property, and mailing certified notices.
(h) In the case of real property, partition the property and
furnish a legal description of it when the property is divisible and
the tax assessor, county treasurer, and county auditor ascertain that
portion of the property that is sufficient to realize a sum upon the
sale of the real property tax lien sufficient to satisfy the payment of
the taxes, assessments, penalties, and costs.
Section 12-52-110. (A) The personal property or real property
tax lien duly advertised must be sold by the person officially
charged with the collection of delinquent taxes at public auction at
the courthouse on a legal sales date during regular hours for legal
tender payable in full on the date of the sale.
(B) On the day designated in the list and notice the official
charged with the collection of delinquent taxes shall commence the
sale of all tax liens on real property described in the list and notice
on which the taxes, assessments, penalties, and costs have not been
paid, and shall continue the sale from day to day, Saturdays,
Sundays, and holidays excluded, until the tax lien on each parcel
has been sold. If there is no bid for any real property tax lien
offered, the official shall pass it for the time and shall reoffer it at
the beginning of the sale on the next day until all real property tax
liens are sold or until the official becomes satisfied that no more
sales can be made, at which time the officer shall assign to the
forfeited land commission the real property tax liens remaining
unsold for the amount of taxes, assessments, penalties, and charges,
and issue to the forfeited land commission a certificate of purchase
as provided in other cases. Where two or more lots or parcels are
assessed as one parcel the tax liens on them may be sold as a single
tax lien on one parcel.
(C) The officer charged with the duty to sell real property and
mobile or manufactured housing for nonpayment of ad valorem
property taxes shall submit a bid on behalf of the forfeited land
commission equal to the amount of all unpaid property taxes,
penalties, and costs including taxes levied for the year in which the
redemption period begins.
(D) If for any reason a real property tax lien or personal
property cannot be advertised and sold at the time provided by this
chapter, the official charged with the collection of delinquent taxes
shall make the sale at any subsequent day on which it can be made,
allowing sufficient time for publication and posting of such list and
notice as provided by this chapter.
Section 12-52-120. (A) When a real property tax lien is offered
for sale as provided in this chapter, it shall be sold to the highest
bidder. A certificate of purchase issued to a person pursuant to this
subsection shall cite as consideration the whole amount of the
delinquent tax sale bid.
(B) When personal property is offered for sale as provided in
this chapter, it must be sold to the highest bidder.
(C) The official charged by law with the collection of delinquent
taxes may sell and transfer real property tax liens at public or
private sale at the price and terms determined and approved by the
official charged with the collection of delinquent taxes, in lot blocks
of the aggregate principal amount of not less than twenty thousand
dollars. Prior to the sale of a real property tax lien pursuant to this
subsection, notice shall be provided to the delinquent taxpayer as
provided in Section 12-52-100(f). The transferee of real property
tax liens sold and transferred as provided in this subsection shall
have the same rights, powers, liens, and priorities as do the
transferees of single tax liens purchased in accordance with this
chapter.
(D) Whenever the official charged with the collection of
delinquent taxes determines to sell and transfer real property tax
liens as provided in subsection (C), a schedule shall be prepared of
the tax liens to be so sold and transferred, together with the name
of the person to whom or to which the tax liens are to be
transferred and the price determined and approved by the officer
charged with the collection of delinquent taxes. Upon receipt from
the purchaser so designated of the price for the real property tax
liens, the officer charged with the collection of delinquent taxes
shall transfer and deliver the tax liens to the person making the
payment. The certificate of purchase issued to the person shall
recite as consideration for the transfer of the certificate of purchase
the full amount of the taxes, assessments, penalties, and costs due
on the real property tax liens. A certificate of purchase for each real
property tax lien included in a block shall be issued to the purchaser
of a lot block.
(E) The transfer of a real property tax lien shall vest in the
transferee and his successors and assigns the full priority of the lien
and all of the rights and powers for enforcing the tax lien and for
collecting the full amount of the tax liens including any
assessments, penalties, costs, and interest which were at the time of
the transfer possessed or held by the county by, for, or in the name
of which the executions were issued.
Section 12-52-130. At the time of redemption of a real property
tax lien, the person redeeming the real property shall pay sixteen
percent interest on the whole amount of the delinquent tax sale bid
unless otherwise provided in this chapter.
Section 12-52-140. The successful purchaser of the real property
tax lien or personal property shall pay legal tender to the person
officially charged with the collection of delinquent taxes in the full
amount of the purchase price on the day of the sale. Upon
payment, the person officially charged with the collection of
delinquent taxes shall make, execute, and deliver a certificate of
sale to each purchaser of a tax lien at the sale for delinquent taxes
or to each assignee thereafter. Expenses of the sale must be paid
first and the balance of all delinquent tax sale monies collected
must be turned over to the treasurer. Upon receipt of the funds, the
treasurer shall immediately mark the public tax records regarding
the property sold as follows: Paid by tax sale held on
(insert date). All other monies received, including any
excess due the defaulting taxpayer, after payment of delinquent
taxes, assessments, penalties, and costs, must be retained, paid out,
and accounted for by the delinquent tax collector. In case the tax
sale produced an overage in cash above the full amount due in
taxes, assessments, penalties, and costs, the overage shall belong to
the defaulting taxpayer to be claimed or assigned according to law.
If neither claimed nor assigned within five years of the date of tax
sale, the overage shall escheat to the general fund of the governing
body. Prior to the escheat date unclaimed overages must be kept in
a separate account and must be invested so as not to be idle and the
governing body of the political subdivision is entitled to the
earnings for keeping the overage. On escheat date the overage must
be transferred to the general funds of the governing body.
Section 12-52-150. (A) The certificate of purchase shall describe
the real property on which a tax lien is sold as it is described in the
record of tax lien sales and shall recite the amount of all taxes,
assessments, penalties, and costs for which the tax lien was sold,
together with the rate of interest payable in order to redeem. The
certificate may be in the following form:
`Certificate of Purchase
Delinquent Tax Collector's Office
County of
State of South Carolina
I hereby certify that at a sale of tax liens on real estate situated in
said county and state, for delinquent taxes, held at the county
courthouse in said county on the ________________ day of
____________, 19__, in accordance with law,
__________________ was the purchaser of a tax lien on that
certain property described as follows, to wit:
Delinquent Taxpayer's Name:
Description of Property:
Auditor's Map-Block-Parcel Number:_______________________
Amount Paid:__________________________________________
for which the purchaser paid the amount of money set forth above
for the said real property, on which amount the purchaser shall
receive at redemption sixteen percent interest on the whole amount
set forth above.
_________________________
Delinquent Tax Collector
(Seal) County of ____________
State of South Carolina'.
(B) The certificate of purchase, whether issued to the forfeited
land commission or to a person shall be assignable by endorsement,
and an assignment when noted on the record of tax lien sales shall
vest in the assignee all the right and title of the original purchaser.
Section 12-52-160. In case the successful purchaser fails to remit
in legal tender within the time specified, the person officially
charged with the collection of delinquent taxes shall cancel that
purchase, and proceed to resell the real property tax lien or personal
property if the sale has not been closed or if the sale has been
closed the official shall duly re-advertise the same personal property
or real property tax lien for sale, in the same manner, on a
subsequent delinquent tax sale date. The defaulting purchaser is
liable for no more than three hundred dollars damages upon default,
which may be collected by suit by the person officially charged
with the collection of delinquent taxes in the name of the taxing
authority.
Section 12-52-170. The treasurer shall make full settlement of
tax sale monies, within thirty days after the sale, to the respective
political subdivisions for which the taxes were levied. Proceeds of
the sales in excess thereof must be retained by the treasurer as
otherwise provided by law.
Section 12-52-180. The official charged with the collection of
delinquent taxes shall make and maintain a correct record of all
sales of real property tax liens, which shall be known as the record
of real property tax lien sales, containing:
(1) the date of sale;
(2) description of each parcel on which a tax lien was sold;
(3) auditor's map-block-parcel number;
(4) name of the owner, if known;
(5) name of purchaser;
(6) total amount of taxes, assessments, penalties, and costs for
which each tax lien was sold;
(7) the amount of subsequent taxes and interest paid by the
purchaser;
(8) the name of the assignee and the date of assignment of
certificate;
(9) name of person redeeming and date of redemption;
(10) total amount paid for redemption;
(11) name of person to whom conveyed and date of deed.
Section 12-52-190. When a certificate of purchase is lost,
destroyed, or wrongfully withheld from the rightful owner, the
purchaser of the certificate must file a notarized affidavit with the
official charged with the collection of delinquent taxes attesting to
the loss of the certificate. Upon presentation of the notarized
affidavit, the official charged with the collection of delinquent taxes
shall issue to the holder thereof an exact duplicate of the certificate
of purchase.
Section 12-52-200. On or after the seventeenth day of March of
each year any person desiring to pay subsequent taxes, assessments,
penalties, and costs then due upon the real property for which the
person holds a certificate of purchase shall exhibit the certificate to
the official charged with the collection of delinquent taxes who
shall endorse thereon the amount of the subsequent taxes,
assessments, penalties, and costs paid and the date of payment. The
official charged with the collection of delinquent taxes shall enter
the payment in the record of real property tax lien sales kept by the
official as provided in this chapter.
Section 12-52-210. The certificate of purchase or its certified
copy is prima facia evidence of the correct performance and
regularity of all acts pertaining to the real property tax lien sale and
the validity and enforceability of the tax lien.
Section 12-52-220. The defaulting taxpayer, any grantee from the
owner, or any mortgage or judgment creditor, within twelve months
from the date of the delinquent tax lien sale, may redeem each item
of real property by paying to the person officially charged with the
collection of delinquent taxes, assessments, penalties, and costs, the
amount shown on the certificate of purchase as the `amount paid'
plus sixteen percent interest on the whole amount paid together with
the amount of all taxes accruing on the real property after the sale
and paid by the purchaser and endorsed on the certificate of
purchase, with sixteen percent interest on the whole amount of the
subsequent taxes. If the taxes accruing on the real property after
the sale of the tax lien have not been paid by the purchaser and
endorsed on the certificate of purchase, then the amount of all taxes
accruing on the real property shall be added to the amount
necessary to redeem the property.
Section 12-52-230. (A) Notwithstanding the provisions of
Section 12-52-250, the owner or lienholder of any mobile home or
manufactured home may redeem the property as provided in
Sections 12-52-220, 12-52-240, and 12-52-260. For purposes of
this chapter, `mobile or manufactured home' is defined in Section
12-43-230(b) or 40-29-20(9), as applicable.
(B) In order for the owner of or lienholder on the `mobile
home' or `manufactured home' to redeem his property as permitted
in this section, the mobile or manufactured home subject to
redemption must not be removed from its location at the time of the
delinquent tax sale for a period of twelve months from the date of
the sale unless the owner is required to move it by the person other
than himself who owns the land upon which the mobile or
manufactured home is situated. In this event, the owner of the
mobile or manufactured home must notify the purchaser and the
delinquent tax collector of the new location of the mobile or
manufactured home, which new location also must be in this State.
If the owner moves the mobile or manufactured home in violation
of this section, he is guilty of a misdemeanor and, upon conviction,
must be punished by a fine not exceeding one thousand dollars or
imprisoned not exceeding one year, or both. In addition to the
other requirements and payments necessary for an owner of a
mobile or manufactured home to redeem his property after a
delinquent tax sale, the defaulting taxpayer or lienholder also must
pay rent to the purchaser at the time of redemption an amount not
to exceed one-twelfth of the taxes for the last completed property
tax year, exclusive of penalties, costs, and interest, for each month
between the sale and redemption. However, the monthly rental,
when calculated as provided in this section, must not be less than
ten dollars. For purposes of this rent calculation, more than
one-half of the days in any month counts as a whole month.
Section 12-52-240. Upon the real estate being redeemed, the
person officially charged with the collection of delinquent taxes
shall issue a certificate of redemption to the person redeeming the
property and cancel the sale in the tax sale book and note thereon
the amount paid, by whom and when. The certificate of redemption
shall describe the property on which the real property tax lien is
redeemed, give the date of redemption, the amount paid, and by
whom redeemed. The holder of record of the certificate of
purchase shall promptly be notified by mail to return the certificate
of purchase to the person officially charged with the collection of
delinquent taxes in order to be expeditiously refunded the amount
paid plus interest and costs as provided in this chapter. The official
charged with the collection of delinquent taxes, on demand of any
person entitled to redemption money held by the official, shall pay
the money to that person upon surrender of the certificate of
purchase for the redeemed tax lien.
Section 12-52-250. For personal property, there is no redemption
period subsequent to the time that the property is struck off to the
successful purchaser at the delinquent tax sale. Upon payment by
the successful purchaser and delivery of the duplicate warrant (i.e.,
tax receipt) with description and notation by the person officially
charged with the collection of delinquent taxes, he shall deliver to
the successful purchaser the following form properly executed
which is his bill of sale and right of possession:
`Sold to _____________ at Delinquent Tax Sale on __________,
who is the successful purchaser of personal property sold for
delinquent taxes.
___________________________________
(Officer Charged with Tax Collection)'.
Section 12-52-260. Neither more than forty-five days nor less
than twenty days prior to the end of the redemption period for a
real estate tax lien sold for taxes, the person officially charged with
the collection of delinquent taxes shall mail a notice by certified
mail, return receipt requested -- deliver to addressee only to the
owner of record immediately preceding the end of the redemption
period at the best address of the owner available to the person
officially charged with the collection of delinquent taxes that the tax
lien on real property described on the notice has been sold for taxes
and if not redeemed by paying taxes, assessments, penalties, costs,
and sixteen percent interest on the whole amount paid on or before
twelve months from date of sale, a tax title will be delivered to the
successful purchaser at the tax lien sale. Under this chapter, the
return of the certified mail `undelivered' is not grounds for a tax
title to be withheld or be found defective and ordered set aside or
canceled of record.
Section 12-52-270. Upon failure of the defaulting taxpayer, any
grantee from the owner, or any mortgage or judgment creditor, to
redeem realty within the time period allowed for redemption, the
person officially charged with the collection of delinquent taxes
shall within thirty days or as soon thereafter as possible make a tax
title to the holder of record of the certificate of purchase. Delivery
of the tax title to the clerk of court or register of mesne conveyance
is considered `putting the purchaser (or assignee) in possession'.
The tax title shall include, among other things, the name of the
defaulting taxpayer, the date of the execution, and the dates each
certified notice was mailed to the party or parties of interest, to
whom mailed, and whether or not received by the addressee. The
holder of record of the certificate of purchase is responsible in the
amount of fifteen dollars for the cost of the tax title plus any
documentary stamps necessary to be affixed and recording fees.
The holder of record of the certificate of purchase shall pay the
amounts to the person officially charged with the collection of
delinquent taxes before delivery of the tax title to the clerk of court
or register of mesne conveyances and upon payment the person
officially charged with the collection of delinquent taxes is
responsible for promptly transmitting the tax title to the clerk of
court or register of mesne conveyances for recording and remitting
the recording fee and documentary stamps cost.
Section 12-52-280. If a warrant, which has been filed with the
clerk of court in any county, is determined by the Department of
Revenue and Taxation to have been issued and filed in error, the
clerk of court, upon notification by the Department of Revenue and
Taxation, must remove the warrant from its book.
Section 12-52-290. In case the official in charge of the real
property tax lien sale discovers before a tax title has passed, the
failure of any action required to be properly performed or that by
mistake of the county treasurer, auditor, assessor, or the official
charged with the collection of delinquent taxes or as a result of
double assessment, a real property tax lien has been sold on
property on which no tax was due at the time or when the tax lien
is otherwise determined to be invalid or unenforceable, the official
shall void the tax lien sale and refund the amount paid to the holder
of record of the certificate of purchase. If the full amount of the
taxes, assessments, penalties, and costs have not been paid, the
property must be brought to tax lien sale as soon as practicable.
Section 12-52-300. The provisions of Sections 12-49-210 through
12-49-330, inclusive, relating to notice to mortgagees of proposed
tax sales and of tax sales of property covered by their respective
mortgages are adopted as a part of this chapter.
Section 12-52-310. In all cases of tax sale the deed of
conveyance, whether executed to a private person, a corporation, or
a forfeited land commission, must be held and taken as prima facie
evidence of a good title in the holder, that all proceedings have
been regular and that all legal requirements have been complied
with. No action for the recovery of land sold under the provisions
of this chapter or for the recovery of the possession may be
maintained unless brought within two years from the date of sale.
Section 12-52-320. A county and municipality may contract for
the collection of municipal taxes by the county. When by contract
a tax due a municipality is to be collected by the county, the
provisions of this chapter are exercisable by the county official
charged with the collection of the delinquent taxes. He may
employ, appoint, or designate others to perform or carry out the
provisions of the chapter."
SECTION 3. Chapter 51 of Title 12 of the 1976 Code is
repealed except that this repeal shall in no way affect the validity of
any tax sale conducted pursuant to Chapter 51 of Title 12 and shall
not prevent the continuation of a suit or claim brought before the
effective date of this act.
SECTION 4. This act is effective as of January first of the year
next following its approval by the Governor and must be the
procedure to collect all existing and future delinquent taxes. Any
county that is not able to implement and comply with the provisions
of Chapter 52 of Title 12 by January first of the following year
may be granted an additional year to comply, if approved by the
Comptroller General, upon a request for an extension of time made
jointly by the auditor, treasurer, and tax collector of that county.
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