Current Status Introducing Body:Senate Bill Number:752 Primary Sponsor:Reese Committee Number:06 Type of Legislation:GB Subject:Property tax classifications, unsold subdivision lots Residing Body:Senate Current Committee:Finance Computer Document Number:JIC/5692HC.93 Introduced Date:19930504 Last History Body:Senate Last History Date:19930504 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Reese Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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752 Senate 19930504 Introduced, read first time, 06
referred to Committee
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TO AMEND SECTION 12-43-224, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MULTIPLE LOT DISCOUNT ALLOWED ON THE APPRAISED VALUE OF UNSOLD SUBDIVISION LOTS, SO AS TO PROVIDE THAT THE DISCOUNT APPLIES TO AS FEW AS TWO LOTS AND THE SELLOUT PERIOD MAY BE AS LONG AS SIXTEEN YEARS WHEN THE OWNER OF REAL PROPERTY CLASSIFIED AS AGRICULTURAL REAL PROPERTY FOR AT LEAST ONE CALENDAR YEAR LOSES THAT CLASSIFICATION AS A RESULT OF HIS DEVELOPING AND SUBDIVIDING THE PROPERTY INTO INDIVIDUAL LOTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-43-224 of the 1976 Code is amended to read:
"Section 12-43-224. (A) Notwithstanding the requirement that real property is required by law to be appraised at fair market value for ad valorem tax purposes, when undeveloped acreage is surveyed into subdivision lots and the conditional or final plat is recorded with the appropriate county official, the county assessor shall appraise each lot as an individual property and then discount his gross actual market value estimate of the developer's lot holdings under the following conditions:
1. (1) The discount rate shall include only:
(a) typical interest rate as charged by developers within the county to purchasers of lots when the purchase is financed by the developer or, in the absence of financing by the developer, the typical interest rate charged by local savings and loan institutions for mortgages on new homes.
(b) the effective tax rate for the tax district that the lots are located in.
2. (2) The developer has ten or more unsold lots within the homogeneous area on the December 31 tax control date.
3. (3) The assessor shall determine a reasonable number of years for the developer to sell the platted lots, however the estimate shall not exceed seven years.
Each of these components shall must be based on identifiable factors in determining `The Present Worth of Future Benefits' based on the discounting process.
(B) Platted lots shall do not come within the provisions of this section unless the owners of such the real property or their agents make written application therefore apply in writing for the discount on or before May first of the tax year in which the multiple lot ownership discounted value is claimed.
The application for the discounted value shall must be made to the assessor of the county in which the real property is located, upon forms provided by the county and approved by the commission and a failure to so apply shall constitute constitutes a waiver of the discounted value for that year.
(C) If the applicant under this section owned the real property which is the subject of the application for at least one calendar year in which the property was properly classified as agricultural real property and the actions of the owner in developing and subdividing the property have subsequently resulted in the loss of the agricultural real property classification, then for that applicant the limit on the minimum number of lots provided in subsection (A)(2) is two and the maximum sellout period provided in subsection (A)(3) is sixteen."
SECTION 2. This act takes effect January 1, 1994, and for tax years beginning after 1993.