Current Status Introducing Body:
SenateBill Number: 565Primary Sponsor: WaddellCommittee Number: 06Type of Legislation: GBSubject: Income Tax Credit for Property Tax Relief ActResiding Body: SenateCurrent Committee: FinanceComputer Document Number: JIC/5267.HCIntroduced Date: Jan 30, 1991Last History Body: SenateLast History Date: Jan 30, 1991Last History Type: Introduced, read first time, referred to CommitteeScope of Legislation: StatewideAll Sponsors: WaddellType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 565 Senate Jan 30, 1991 Introduced, read first time, 06 referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND CHAPTER 37, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAXES, BY ADDING ARTICLE 23 SO AS TO ENACT THE INCOME TAX CREDIT FOR PROPERTY TAX RELIEF ACT; AND TO AMEND SECTION 12-37-250, AS AMENDED, RELATING TO THE HOMESTEAD EXEMPTION, SO AS TO REDUCE THE EXEMPTION FROM THE FIRST TWENTY THOUSAND DOLLARS OF FAIR MARKET VALUE OF A DWELLING PLACE TO THE FIRST TEN THOUSAND DOLLARS OF THE FAIR MARKET VALUE OF A DWELLING PLACE.
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:
Section 12-37-3310. As used in this article:
(1) `Gross household income' means all income, for all individuals residing within the household, from whatever source derived in a taxable year including, but not limited to:
(a) compensation for services including fees, commissions, and similar items;
(b) gross income derived from dealings in property;
(c) gains derived from dealings in property;
(i) income from life insurance and endowment contracts;
(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) `Claimant' means a person who files a claim for property tax relief under this article who is eligible to claim the homestead exemption allowed pursuant to Section 12-37-250 and who meets the gross household income requirements of Section 12-37-3360.
(4) `Property taxes accrued' means property taxes, exclusive of special assessments, penalties, and charges for service, levied on a claimant's homestead in this State in a year.
Section 12-37-3320. The right to file a claim under this article is personal to the claimant and does not survive his death, but the right may be exercised on behalf of a claimant by his legal guardian or attorney-in-fact. If a claimant dies after having filed a timely claim, the amount of the claim must be disbursed to another member of the household as determined by the commission. If the claimant was the only member of his household, the claim may be paid to his personal representative.
Section 12-37-3330. Subject to limitations provided in this article, a claimant may claim in a year as a credit against South Carolina individual income taxes due on his income, a percentage of property taxes accrued in the preceding calendar year. If the allowable amount of the claim exceeds the income taxes due on claimant's income, the amount of the claim not used as an offset against income taxes, after certification by the commission, must be paid to the claimant. No interest is allowed on a payment made to a claimant pursuant to this article.
Section 12-37-3340. No claim with respect to property taxes accrued may be paid or is allowed, unless the claim is filed with the Tax Commission on or before the due date, without regard to any extension, for filing the South Carolina individual income tax return for the year with respect to which the claim for credit is made. In case of sickness, absence, or other disability, or for other good cause shown, the commission may extend for not more than six months the time for filing a claim.
Section 12-37-3350. The amount of a claim otherwise payable under this article may be applied by the commission against a liability outstanding against the claimant, or against the claimant's spouse who was a member of the claimant's household in the year to which the claim relates.
Section 12-37-3360. Only one claimant a household a year is entitled to the credit allowed by this article.
Section 12-37-3370. (A) The amount of a claim made pursuant to this article is determined as provided in subsection (B) of this section except that the total credit may not exceed two hundred fifty dollars.
(B) For a taxable year a claimant is allowed a credit in the amount by which the property tax on the homestead exceeds a percentage of the claimant's gross household income for the taxable year determined according to the following schedule:
If Gross Household Then the Taxpayer is Entitled Income (Rounded to to Credit for Property Tax
the Nearest Income) paid in Excess of this is: Percent of that Income.
$ O - 9,999 1.0%
25,000 or more no credit
(C) The South Carolina Tax Commission shall prepare a table under which claims under this article must be determined. The amount of claim as shown in this table for each bracket must be computed only to the nearest dollar.
Section 12-37-3380. The commission shall prescribe and make available suitable forms with instructions for claimants, including a form which may be included with or separate from the individual income tax return. The form must include the table required pursuant to Section 12-37-3370(C).
The claim must be in the form the commission prescribes. Those claimants who certify on the prescribed form that there is no income tax liability are not required to file an individual income tax return.
Section 12-37-3390. Every claimant under this article shall supply the commission, in support of his claim, a receipt of property taxes paid for purposes of this article and any changes of homestead.
Section 12-37-3400. If on the audit of a claim filed under this article the commission determines the amount to have been incorrectly determined, the claim must be corrected. If the claim has been refunded or allowed as a credit against income taxes otherwise payable, the amount of the credit disallowed or refunded in error may be recovered by assessment as income taxes are assessed with applicable interest allowed by Section 12-54-20.
Section 12-37-3410. No claim for relief under this article is allowed to a person who is a recipient of public funds for the payment of the property taxes accrued during the period for which the claim is filed.
Section 12-37-3420. A claim must be disallowed if the commission finds that the claimant received title to his homestead primarily for the purpose of receiving benefits under this article."
SECTION 2. The first paragraph of Section 12-37-250 of the 1976 Code, as last amended by Act 530 of 1990, is further amended to read:
"The first twenty ten 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."
SECTION 3. Upon approval by the Governor, this act takes effect for taxable years beginning after 1990.