Current Status Introducing Body:
HouseBill Number: 4184Primary Sponsor: KirshCommittee Number: 30Type of Legislation: GBSubject: Property tax appeals and assessmentsResiding Body: HouseCurrent Committee: Ways and MeansCompanion Bill Number: 743Computer Document Number: JIC/5825HC.93Introduced Date: 19930512Last History Body: HouseLast History Date: 19930512Last History Type: Introduced, read first time, referred to CommitteeScope of Legislation: StatewideAll Sponsors: KirshType of Legislation: General Bill
Bill Body Date Action Description CMN Leg Involved ____ ______ ____________ ______________________________ ___ ____________ 4184 House 19930512 Introduced, read first time, 30 referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-4-755 AND 12-4-770 SO AS TO PROVIDE FOR THE APPEAL OF A PROPERTY TAX EXEMPTION DENIAL TO THE SOUTH CAROLINA TAX COMMISSION AND PROVIDE THE APPEAL PROCEDURE AND PROVIDE FOR THE APPEAL PROCEDURE FOR AN APPEAL OF A PROPOSED PROPERTY TAX ASSESSMENT TO THE COMMISSION FOR PROPERTY ORIGINALLY ASSESSED BY THE COMMISSION; TO AMEND THE 1976 CODE BY ADDING SECTION 12-39-65 SO AS TO PROVIDE THE METHOD OF APPRAISING CERTAIN PERSONAL PROPERTY OF BUSINESSES AND OTHER ENTITIES UNDER THE JURISDICTION OF THE COUNTY AUDITOR; TO AMEND THE 1976 CODE BY ADDING SECTION 12-37-120 SO AS TO REQUIRE THE ASSESSED VALUE OF PROPERTY TO BE ROUNDED TO THE NEAREST TEN DOLLARS; TO AMEND SECTION 12-4-310, AS AMENDED, RELATING TO THE DUTIES OF THE TAX COMMISSION, SO AS TO REQUIRE IT TO REMIT REVENUES COLLECTED TO THE STATE TREASURER AT LEAST ONCE A WEEK OR AS SOON AFTER RECEIPT AS PRACTICABLE; TO AMEND SECTION 12-4-320, RELATING TO THE POWERS OF THE TAX COMMISSION, SO AS TO AUTHORIZE IT TO PRESCRIBE TEMPORARY RULES FOR FILING, PAYMENT, AND EXTENSIONS IN CASE OF DAMAGE BY OPERATION BY NATURAL FORCES; TO AMEND SECTION 12-4-330, RELATING TO WITNESSES BEFORE THE TAX COMMISSION, SO AS TO PROVIDE THAT OUT-OF-STATE APPRAISERS APPEARING BEFORE THE COMMISSION DO NOT HAVE TO BE LICENSED OR CERTIFIED IN THIS STATE; TO AMEND SECTION 12-4-720, RELATING TO FILING PROPERTY TAX EXEMPTION APPLICATIONS, SO AS TO REVISE CERTAIN APPLICATIONS; TO AMEND SECTION 12-37-220, OF THE 1976 CODE, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO STANDARDIZE AT TWO VEHICLES THE MOTOR VEHICLE EXEMPTION FOR DISABLED VETERANS, MEDAL OF HONOR RECIPIENTS, PERSONS CONFINED TO WHEELCHAIRS, AND FORMER POW'S, TO DELETE AN OBSOLETE PROVISION RELATING TO NO SITUS PERSONAL PROPERTY AND TO EXEMPT FURNISHINGS AND FIXTURES IN TIME-SHARE UNITS; TO AMEND SECTION 12-37-800, AS AMENDED, RELATING TO THE PENALTY FOR FAILURE TO MAKE A PROPERTY TAX RETURN, SO AS TO PROVIDE A PENALTY EQUAL TO TWENTY-FIVE PERCENT OF THE TAX DUE FOR MAKING A FALSE RETURN; TO AMEND SECTION 12-37-930, RELATING TO VALUATION OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO PROVIDE THAT "GROSS CAPITALIZED COST" INCLUDES PROPERTY EXPENSED UNDER SECTION 179 OF THE INTERNAL REVENUE CODE OF 1986; TO AMEND SECTION 12-37-2725, RELATING TO REFUNDS OF PERSONAL PROPERTY TAXES PAID ON LICENSED MOTOR VEHICLES, SO AS TO ALLOW A REFUND WHEN A VEHICLE OWNER BECOMES A LEGAL RESIDENT OF ANOTHER STATE AND REGISTERS THE VEHICLE IN THE NEW STATE; TO AMEND SECTION 12-43-335, RELATING TO THE CLASSIFICATION OF MERCHANTS' PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO REVISE THE CLASSIFICATIONS AND ADD CLASSIFICATIONS FOR PROPERTY OF MANUFACTURERS, RAILROADS, PRIVATE CARLINES, AIRLINES, WATER, POWER, TELEPHONE, CABLE TELEVISION, SEWER, AND PIPELINE COMPANIES; AND TO AMEND ACT 168 OF 1991, RELATING TO TAXATION, SO AS TO DEFINE "CORPORATION" FOR THE PURPOSES OF THE ALLOWANCE OF THE FIVE-YEAR PROPERTY TAX ABATEMENT ALLOWED A CORPORATION WHICH ACQUIRED EIGHT OR MORE EXISTING TEXTILE MANUFACTURING FACILITIES, AND DELETE A REFERENCE TO COUNTY IN CALCULATING THE REQUIRED NUMBER OF EMPLOYEES TO OBTAIN THE ABATEMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 7, Chapter 4, Title 12 of the 1976 Code is amended by adding:
"Section 12-4-755. (A) A taxpayer or his representative may appeal an exemption denial on property owned by the taxpayer. The taxpayer or his representative must give written notice of the appeal to the commission within thirty days from the date of the mailing of the proposed denial. All grounds for appeal must be set forth in the notice. Upon receipt of the taxpayer's written notice of appeal, the commission shall schedule a hearing for the appeal. No issue or ground may be considered by the commission which is not set out in the appeal notice.
(B) After hearing the appeal, the commission shall issue a written finding and send copies of the finding to the taxpayer or his representative and the county auditor. The finding to the county auditor is the order for entry upon the assessment rolls of the county as exempt or taxable property.
Section 12-4-770. A taxpayer who disagrees with a proposed assessment of his property made by the commission may appeal to the commission by giving written notice of the appeal within thirty days of the date of the mailing of the proposed assessment. The original of the notice of appeal must be delivered to the commission chairman and must contain all issues and grounds for the appeal. Any issues and grounds that are not published or contained in the notice of appeal may not be considered by the commission in hearing the appeal. The notice of appeal must contain the valuation and assessment which the owner considers to be the fair market value and assessment of the property."
SECTION 2. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-120. In the calculation of the assessed value of property subject to property tax, the result must be rounded to the nearest ten dollars and this rounded amount is deemed the assessed value of the property."
SECTION 3. Chapter 39, Title 12 of the 1976 Code is amended by adding:
"Section 12-39-65. For the purpose of appraising and assessing personal property of businesses and other entities under the jurisdiction of the county auditor, the county auditor shall follow the classification of the Standard Industrial Classification Manual, Bureau of The Budget, 1987 as follows:
(1) Division A - Major Groups, 01, 02, 07, 08, 09, unless exempt;
(2) Division H - Major Groups, 60, 61, 62, 63, 64, 65, 66, 67, unless exempt;
(3) Division 1 - Major Group, 70, 80, 81, 82, 83, 84, 86, 87, 88, 89, unless exempt."
SECTION 4. Section 12-4-310 of the 1976 Code, as last amended by Act 361 of 1992, is further amended by adding:
"(11) remit all revenues to the State Treasurer at least once a week or as soon as possible or practicable upon receipt of the commission."
SECTION 5. Section 12-4-320 of the 1976 Code, as added by Act 50 of 1991, is amended by adding:
"(6) if damage by natural forces occurs as defined in Section 12-9-310, prescribe temporary rules including, but not limited to, the filing of returns, payment of taxes, and extensions of due dates."
SECTION 6. Section 12-4-330 of the 1976 Code, as added by Act 50 of 1991, is amended by adding a new subsection to read:
"(E) Out-of-state appraisers serving as witnesses are not required to be licensed or certified in this State. For purposes of this section, out-of-state appraisers are defined as appraisers with a business address outside of this State."
SECTION 7. Section 12-4-720(A) of the 1976 Code, as added by Act 50 of 1991, is amended to read:
"(A) Applications for property exemptions must be filed as follows:
(1) Except as otherwise provided in items (2) and (3) of this subsection, any tax-exempt property owner or property owner whose property may qualify for property exemption shall file an application for exemption with the commission between January first and April fifteenth of the first year for which the exemption is claimed.
(2) Owners of property exempt under Section 12-37-220A(7) and (8), and B(17) B(32), (33), and (34) shall file an annual application for exemption before the sixteenth last day of the fourth month after the close of the accounting period regularly employed by the taxpayer for income tax purposes in accordance with Chapter 7 of this title.
(3) Owners of property exempt under Section 12-37-220B(26) and (27) and churches which own motor vehicles shall file an application for exemption within sixty days before or within thirty days after the date on which the motor vehicle was registered or the registration renewal date.
Thereafter, except as provided in item (2), the owner is not required to file an additional application, unless there is a change in the status of the property as reported on the initial application or unless requesting an exemption for property which was not included on the initial or subsequent application."
SECTION 8. (A) Items (3), (17), (26), (27), and (29) of Section 12-37-220B of the 1976 Code are amended to read:
"(3) One Two personal motor vehicle vehicles owned or leased by any disabled veteran designated by the veteran for which special license tags have been issued by the Department of Highways and Public Transportation under the provisions of Sections 56-3-1110 to 56-3-1130 or, in lieu of the license, if the veteran has a certificate signed by the county service officer or the Veterans Administration of the total and permanent disability which must be filed with the Tax commission.
(17) Personal property in transit with "no situs" status as defined in Article 7 of Chapter 37 of Title 12 and subject to the record keeping requirements and penalties prescribed in that article shall not be subject to ad valorem taxation. Reserved.
(26) All Two personal motor vehicles owned by recipients of the Medal of Honor for which special license tags have been issued by the Department of Highways and Public Transportation under the provisions of Article 16 of Chapter 3 of Title 56 shall be exempt from state, county and municipal taxes.
(27) All Two personal motor vehicles, owned or issued either solely or jointly by persons required to use wheelchairs, for which special license tags have been issued by the Department of Highways and Public Transportation under the provisions of Section 56-3-1910, are exempt from state, county, and municipal taxes.
(29) One Two personal motor vehicle vehicles or truck trucks, not exceeding three-quarter ton, owned or leased by and licensed and registered in the name of any member or former member of the armed forces who was a prisoner of war (POW) in World War I, World War II, the Korean Conflict, or the Vietnam Conflict and who is a legal resident of this State, for which motor vehicle or truck a special tag has been issued by the Department of Highways and Public Transportation in accordance with the provisions of Sections 56-3-1150 and 56-3-1160, is exempt from state, county, and municipal taxes. This exemption also extends to the surviving spouse of a qualified former POW for the lifetime or until the remarriage of the surviving spouse."
(B) Section 12-37-220B of the 1976 Code is amended by adding an appropriately numbered item to read:
"( ) Property exempt under subsection A(5) of this section when located in a time-share unit."
SECTION 9. Section 12-37-800 of the 1976 Code, as last amended by Act 344 of 1988, is further amended to read:
"Section 12-37-800. (A) If a person fails to list the real or personal property he is required by law to list listed in any one year, the value of the property may be charged against him the person for taxation with a ten percent penalty added, and the taxes and penalty collected as in other cases. Upon good cause shown, the commission may waive or reduce the penalty charged in this section on property required to be listed with the commission.
(B) In lieu of any other penalty, a person who intentionally makes a false return, wilfully attempts to understate tax liability, or recklessly or intentionally disregards applicable rules or regulations must be assessed a penalty equal to twenty-five percent of the taxes due.
(C) Upon good cause shown, the commission may waive or reduce the penalty imposed pursuant to this section."
SECTION 10. The penultimate paragraph of Section 12-37-930 of the 1976 Code is amended to read:
"In no event should may the original cost be reduced more than eighty percent. In the year of acquisition, depreciation shall be is allowed as if the property were owned for the full year. The term `original cost' shall mean means gross capitalized cost, including property on which the taxpayer made the election allowed pursuant to Section 179 of the Internal Revenue Code of 1986, as shown by the taxpayer's records for income tax purposes."
SECTION 11. Section 12-37-2725 of the 1976 Code is amended to read:
"Section 12-37-2725. When the title to a licensed vehicle is transferred, or the owner of the vehicle becomes a legal resident of another state and registers the vehicle in the new state of residence, the license plate and registration certificate issued the transferor may be returned for cancellation. The license plate and registration certificate must be delivered to the auditor of the county of the vehicle's registration and tax payment. A request for cancellation must be made in writing to the auditor upon forms approved by the Department of Highways and Public Transportation. The auditor, upon receipt of the license plate, registration certificate, and the request for cancellation, shall order and the treasurer shall issue a refund of property taxes paid by the transferor on the vehicle. The amount of the refund is that proportion of the tax paid that is equal to that proportion of the complete months remaining on the license plate and registration certificate that is being canceled to its whole license and registration period. The auditor shall, within five days thereafter, deliver the license plate, registration certificate, and the written request for cancellation to the Department of Highways and Public Transportation. Upon receipt thereof, the department shall cancel the license plate and registration certificate and may not reissue the same."
SECTION 12. Section 12-43-335 of the 1976 Code, as added by Act 361 of 1992, is amended to read:
"Section 12-43-335. For the purpose of assessing property of merchants and related businesses, as provided by Section 12-37-970, the Tax Commission shall follow the classifications of the Standard Industrial Classification Manual, Bureau of the Budget, 1987 edition, as set out below:
1. Division C;
2. Division E, Major Group 48, except numbers 481 and 482;
3. Division F;
4. Division G;
5. Division I, Major Groups 72, 73, 75, 76, 78, and 79.
(A) For the purpose of assessing property of merchants and related businesses, as provided by Section 12-37-970, the commission shall follow the classifications of the Standard Industrial Classification Manual, Bureau of the Budget, 1987 edition, as follows:
(1) Division C;
(2) Division E, Major Group 41, except number 414
Major Group 42, Except number 4213
Major Group 44, except number 444
Major Group 45, except number 451
Major Group 47
Major Group 48, except numbers 481, 482, 484
Major Group 49, except numbers 491, 493, 494, 4952;
(3) Division F;
(4) Division G;
(5) Division I; Major Groups 72, 73, 75, 76, 78, and 79;
(6) Division K.
(B) For the purpose of assessing property of manufacturers as provided in Section 12-4-540(A), the commission shall follow the classifications set out in Division B and Division D of the Standard Industrial Classification Manual, Bureau of the Budget, 1987 edition. However, establishments which publish newspapers, books, and periodicals which do not have facilities for printing or which do not actually print their publications are not classified as manufacturers, notwithstanding the provisions of Division D, Major Group 27, relating to printing, publishing, and allied industries.
(C) For the purpose of assessing property of railroads, private carlines, airlines, water, power, telephone, cable television, sewer and pipeline companies as provided in Section 12-4-540(A), the commission shall follow the Division E classification of the Standard Industrial Classification Manual, Bureau of the Budget, 1987 edition, as follows:
(1) Major Group 40;
(2) Major Group 41, except numbers 411, 412, 413, 415, and 417;
(3) Major Group 42, except numbers 4212, 4214, 4215, 422, and 423;
(4) Major Group 44, except numbers 441, 442, 443, 448, and 449;
(5) Major Group 45, except numbers 452 and 458;
(6) Major Group 46;
(7) Major Group 48, except numbers 483 and 489;
(8) Major Group 49, except numbers 492, 4953, 4959, 496, and 497."
SECTION 13. Section 17(A) of Act 168 of 1991 is amended to read:
"(A) A corporation which acquires eight or more existing textile manufacturing facilities in South Carolina which employed at the time of acquisition a total of three thousand, five hundred or more employees located in a county of this State may receive the five-year abatement pursuant to Section 12-37-220A(7) of the 1976 Code from the time of acquisition. For purposes of this item acquisition means asset transactions which are arms-length and includes new capital. For purposes of this section `corporation' means a single corporation or an `affiliated group' of corporations as defined in Section 1504 of the Internal Revenue Code of 1986, as amended, which may acquire such facilities pursuant to a single transaction. This section also applies to wholly-owned subsidiaries of the corporation which may have acquired any of the eight textile manufacturing facilities from the corporation in a tax-free transaction pursuant to Section 351 of the Internal Revenue Code of 1986, as amended."
SECTION 14. This act takes effect upon approval by the Governor.