Current Status Introducing Body:House Bill Number:4307 Primary Sponsor:J. Bailey Committee Number:30 Type of Legislation:GB Subject:Property tax exemptions, assessments Residing Body:House Current Committee:Ways and Means Computer Document Number:JIC/5080HC.94 Introduced Date:19940111 Last History Body:House Last History Date:19940111 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:J. Bailey Inabinett Richardson Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
____ ______ ____________ ______________________________ ___ ____________
4307 House 19940111 Introduced, read first time, 30
referred to Committee
4307 House 19931201 Prefiled, referred to 30
Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO EXEMPT FROM AD VALOREM TAXES AN AMOUNT OF THE FAIR MARKET VALUE OF RESIDENTIAL REAL PROPERTY ASSESSED AT FOUR PERCENT OF FAIR MARKET VALUE AND REAL PROPERTY ASSESSED AT SIX PERCENT OF FAIR MARKET VALUE THAT REPRESENTS INCREASES IN FAIR MARKET VALUE OCCURRING AFTER THE YEAR OWNERSHIP OF THE PROPERTY WAS LAST TRANSFERRED AND PROVIDE EXCEPTIONS AND TO IMPOSE A PROPERTY TRANSFER TAX ON THE TRANSFERORS OF PROPERTY BENEFITTING FROM THE EXEMPTION ALLOWED BY THIS SECTION AND PROVIDE FOR THE RATE, TIME OF PAYMENT, AND METHOD OF COLLECTION AND DISTRIBUTION.
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) In addition to property tax exemptions allowed pursuant to Section 12-37-220(b), there is allowed as an exemption from ad valorem taxation an amount of the fair market value of residential real property assessed pursuant to Section 12-43-220(c) and real property and improvements thereon assessed pursuant to Section 12-43-220(e) equal to increases in fair market value resulting from reassessments occurring after the year the present owner acquired ownership. When the property is transferred, its value for purposes of ad valorem taxation is its fair market value at that time. This exemption does not extend to increases in fair market value attributable to permanent improvements made to the property. For purposes of this exemption, the acquisition of residential property assessed pursuant to Section 12-43-220(c) by a spouse by gift or by a surviving spouse by devise or operation of law is not considered a change of ownership.
(B) When ownership of property receiving the exemption allowed pursuant to subsection (A) of this section is transferred and has a higher valuation on the date of the transfer, there is imposed on the transferor a real property transfer tax equal to the difference between the tax due on the property for the last tax year before the transfer and the tax that would have been due for that year without the benefit of the exemption. The transfer tax is due and payable to the county treasurer of the county where the property is located at the time of closing. A penalty equal to five percent of the tax must be added to the tax due for each thirty days or portion of thirty days the tax remains unpaid but the total penalty may not exceed twenty percent. The transfer tax liability is personal to the transferor and may be enforced and collected by the county treasurer in the same manner that state income taxes are enforced and collected, mutatis mutandis. When ownership of a portion of property receiving the exemption is transferred, the transfer tax must be allocated proportionately in the manner that the Department of Revenue and Taxation shall prescribe. Proceeds of the transfer tax are considered property taxes and must be distributed to taxing entities in the same proportion that an equal amount of property tax would have been distributed for the applicable tax year."
SECTION 2. This act takes effect January 1, 1994, and applies only with respect to increases in fair market value resulting from reassessments occurring after 1992. No refunds must be paid for the 1993 property tax year as a result of the exemption established by this act.