Current Status Bill Number:4834 Ratification Number:528 Act Number:431 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960327 Primary Sponsor:Robinson All Sponsors:Robinson, Herdklotz, Waldrop, Sandifer, Fulmer, Trotter, Marchbanks, Rice, Haskins and Harrell Drafted Document Number:pt\2357dw.96 Date Bill Passed both Bodies:19960530 Date of Last Amendment:19960528 Governor's Action:S Date of Governor's Action:19960619 Subject:Taxation provisions, collection and payment of
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19960626 Act No. A431
------ 19960619 Signed by Governor
------ 19960613 Ratified R528
Senate 19960530 Concurred in House amendment,
enrolled for ratification
House 19960528 Senate amendments amended,
returned to Senate with amendment
House 19960528 Reconsidered vote whereby adjourned
debate on Senate amendments
House 19960528 Debate adjourned on Senate
amendments until Wednesday,
19960529
House 19960523 Debate adjourned on Senate
amendments until Tuesday,
19960528
Senate 19960521 Amended, read third time,
returned to House with amendment
Senate 19960516 Amended, read second time,
ordered to third reading
with notice of general amendments
Senate 19960509 Recalled from Committee, 06 SF
placed on the Calendar
Senate 19960417 Introduced, read first time, 06 SF
referred to Committee
House 19960416 Read third time, sent to Senate
House 19960411 Read second time
House 19960411 Amended
House 19960409 Committee report: Favorable with 30 HWM
amendment
House 19960327 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
(A431, R528, H4834)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-2-75 SO AS TO PROVIDE FOR THE METHOD OF SIGNING INCOME TAX RETURNS; TO AMEND SECTION 12-4-310, AS AMENDED, RELATING TO DUTIES OF THE DEPARTMENT OF REVENUE AND TAXATION, SO AS TO REVISE A REFERENCE TO THE BOND REQUIREMENT FOR DEPARTMENTAL OFFICERS AND EMPLOYEES; TO AMEND SECTION 12-6-50, AS AMENDED, RELATING TO SECTIONS OF THE INTERNAL REVENUE CODE OF 1986 NOT ADOPTED IN THE DETERMINATION OF SOUTH CAROLINA TAXABLE INCOME, SO AS TO DELETE THE EXCLUSION OF PROVISIONS RELATING TO AN INNOCENT SPOUSE; TO AMEND SECTION 12-31-60, RELATING TO PENALTIES PROVIDED UNDER THE INTERNATIONAL FUEL TAX AGREEMENT, SO AS TO MAKE THESE PENALTIES APPLY IN LIEU OF OTHER PENALTIES AND INTEREST OTHERWISE REQUIRED; TO AMEND SECTIONS 12-36-110, 12-36-120, 12-36-1710, 12-36-2110, AND 12-36-2120, ALL AS AMENDED, RELATING TO THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO REVISE THE DEFINITIONS OF "RETAIL SALE" AND "WHOLESALE SALE", CLARIFY A REFERENCE IN AN EXEMPTION UNDER THE CASUAL EXCISE TAX, REQUIRE LEASES TO BE IN WRITING FOR PURPOSES OF OBTAINING THE THREE HUNDRED DOLLARS MAXIMUM SALES TAX ON CERTAIN ITEMS, CLARIFY THE SALES TAX EXEMPTION FOR SUPPLIES REQUIRED BY DIABETICS, AND TO EXEMPT GOODS PROVIDED TO THE FEDERAL GOVERNMENT WHEN CERTAIN CONDITIONS ARE MET; TO AMEND SECTION 12-39-260, RELATING TO THE DUTIES OF THE COUNTY AUDITOR, SO AS TO AUTHORIZE THE DEPARTMENT OF REVENUE AND TAXATION TO APPROVE OTHER MEANS OF ACCOUNTING FOR AND REPORTING OF REAL ESTATE SALES; TO AMEND SECTION 12-54-35, RELATING TO THE INNOCENT SPOUSE RULE, SO AS TO PROVIDE THOSE INSTANCES WHEN THE RULE DOES NOT APPLY; TO AMEND SECTION 12-54-50, AS AMENDED, RELATING TO THE PENALTY ON A RETURNED CHECK FOR TAXES, SO AS TO EXTEND THE PENALTY TO ELECTRONIC PAYMENTS AND CLARIFY THIS PENALTY AS AN ADDITION TO ALL OTHER PENALTIES; TO AMEND SECTION 12-54-90, AS AMENDED, RELATING TO THE AUTHORITY OF THE DEPARTMENT TO REVOKE LICENSES ISSUED TAXPAYERS FOR VIOLATIONS OR OMISSIONS, SO AS TO CHANGE REFERENCES FROM "COMMISSION" TO "DEPARTMENT"; TO AMEND SECTION 12-54-210, AS AMENDED, RELATING TO THE REQUIREMENT TO MAINTAIN RECORDS FOR TAX PURPOSES, SO AS TO EXTEND THE REQUIREMENT TO LICENSES, FEES, AND SURCHARGES AND TO PROVIDE THE CIRCUMSTANCES UNDER WHICH MICROFILM RECORDS ARE ADEQUATE; TO REPEAL SECTION 12-6-5040, RELATING TO THE AUTHORITY OF THE DEPARTMENT TO REQUIRE COPIES OF FEDERAL TAX RETURNS; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO GENERAL EXEMPTION FROM AD VALOREM TAXES, SO AS TO PROVIDE TECHNICAL CHANGES, SUBSTITUTE "WATERCRAFT" FOR "BOATS", TO PROVIDE THE MAXIMUM ASSESSMENT FOR WATERCRAFT THAT ARE EXEMPT FROM AD VALOREM TAXES, TO PROVIDE AN AD VALOREM TAX EXEMPTION FOR WATERCRAFT TRAILERS AND TO REVISE THE APPLICATION OF THE EXEMPTION FOR POLLUTION CONTROL EQUIPMENT IN GREIGE MILLS; TO AMEND SECTION 12-37-252, RELATING TO THE CLASSIFICATION AND ASSESSMENT OF PROPERTY QUALIFYING FOR EXEMPTION UNDER SECTION 12-37-250, SO AS TO PROVIDE THAT A PERSON QUALIFYING FOR THIS EXEMPTION ALSO MAY QUALIFY FOR A HOMESTEAD EXEMPT TAX REFUND; TO AMEND SECTION 12-37-275, RELATING TO THE DATE FOR SUBMISSION FOR REQUESTS FOR REIMBURSEMENT FOR CERTAIN UNCOLLECTED TAXES, SO AS TO PROVIDE FOR THE TREATMENT OF ACCOUNTS COVERED BY THIS PROVISION; TO AMEND SECTION 12-37-610, RELATING TO LIABILITY FOR PAYMENT OF PROPERTY TAXES, SO AS TO DELETE OBSOLETE LANGUAGE; TO AMEND SECTION 12-37-930, AS AMENDED, RELATING TO THE VALUATION OF PROPERTY, DEPRECIATION ALLOWANCES FOR MANUFACTURER'S MACHINERY AND EQUIPMENT, AND ADJUSTMENTS IN CERTAIN ALLOWANCES, SO AS TO PROVIDE TECHNICAL CHANGES, SUBSTITUTE "WATERCRAFT AND AIRCRAFT" FOR "BOATS AND AIRPLANES" AND TO PROVIDE THAT THIS PROVISION APPLIES TO CERTAIN WATERCRAFT AND AIRCRAFT; TO AMEND SECTION 12-43-217, AS AMENDED, RELATING TO THE CONDUCTING OF CERTAIN PROPERTY REASSESSMENTS, SO AS TO REVISE THE REASSESSMENT PERIOD; TO AMEND SECTION 12-43-220, AS AMENDED, RELATING TO CERTAIN ASSESSMENT RATIOS FOR PROPERTY SUBJECT TO AD VALOREM TAXATION, PROCEDURES FOR CLAIMING CERTAIN AD VALOREM TAXATION CLASSIFICATIONS AND THE ROLL-BACK OF CERTAIN TAXES, SO AS TO PROVIDE CERTAIN TECHNICAL CHANGES, ESTABLISH ADDITIONAL REQUIREMENTS TO QUALIFY FOR THE FOUR PERCENT OWNER-OCCUPIED RESIDENTIAL PROPERTY ASSESSMENT RATIO AND VARIOUS METHODS OF PROVIDING DOCUMENTATION TO THE ASSESSOR OF ELIGIBILITY AND TO PROVIDE EXCEPTIONS, AND THAT STANDING TIMBER WILL NOT BE USED IN DETERMINING FAIR MARKET VALUE FOR CERTAIN REAL PROPERTY; TO AMEND SECTION 12-51-40, AS AMENDED, RELATING TO EXECUTION COSTS, THE LEVY OF A WARRANT OR EXECUTION, A NOTICE OF DELINQUENT TAXES, SEIZURE OF PROPERTY, AND AN ADVERTISEMENT OF SALE, SO AS TO MAKE A TECHNICAL CHANGE; TO AMEND SECTION 12-51-55, RELATING TO THE REQUIRED BID ON BEHALF OF FORFEITED LAND COMMISSION WHEN PROPERTY IS SOLD FOR NONPAYMENT OF AD VALOREM TAXES, SO AS TO PROVIDE THE PROCEDURE FOR DISPOSING OF CONTAMINATED REAL PROPERTY; TO AMEND SECTION 12-60-2510, RELATING TO PROPERTY TAX ASSESSMENT NOTICES, SO AS TO REVISE THE DATE WHEN TAX ASSESSMENT NOTICES MUST BE MAILED, AND TO ELIMINATE CERTAIN INFORMATION FROM A PROPERTY TAX ASSESSMENT NOTICE; TO AMEND SECTION 12-60-2910, RELATING TO A REQUEST TO MEET WITH AN AUDITOR REGARDING A PERSONAL PROPERTY TAX ASSESSMENT, AND A WRITTEN PROTEST FOLLOWING THE MEETING, SO AS TO REVISE THE PERIOD WHEN A PERSON MAY MEET WITH AN AUDITOR; TO AMEND SECTION 12-51-60, AS AMENDED, RELATING TO TAX SALES, SO AS TO PROVIDE FOR NOTICE OF ANY EXCESS FOR THE SALE DUE THE DEFAULTING TAXPAYER; TO AMEND SECTION 12-51-120, AS AMENDED, RELATING TO REDEMPTION OF PROPERTY, SO AS TO REVISE NOTICE REQUIREMENTS AND CONFORM THE REFERENCE TO AN INTEREST RATE TO CURRENT LAW; TO AMEND SECTION 12-54-250, AS AMENDED, RELATING TO PAYMENT OF TAXES IN FUNDS IMMEDIATELY AVAILABLE, SO AS TO AUTHORIZE THE DEPARTMENT OF REVENUE TO PRESCRIBE ALTERNATIVE MEANS FOR FILING TAX RETURNS AND REPORTS AND PROVIDE FOR THE TIME INTEREST AND PENALTIES MAY APPLY TO SUCH PAYMENTS; TO ADD SECTIONS 12-21-3920, 12-21-3940, 12-21-3950, AND 12-21-4060 SO AS TO PROVIDE DEFINITIONS AND LICENSING REQUIREMENTS FOR THE GAME OF BINGO; TO AMEND SECTION 12-6-1140, AS AMENDED, RELATING TO SOUTH CAROLINA INDIVIDUAL INCOME TAX DEDUCTIONS, SO AS TO DELETE THE DEDUCTIONS FOR BINGO PRIZES; TO ADD SECTION 12-21-3955 SO AS TO PROVIDE FOR THE DESIGNATION OF A PROMOTER FOR PURPOSES OF BINGO REGULATION; TO AMEND SECTIONS 12-21-4000 AND 12-21-4030, RELATING TO BINGO, SO AS TO DELETE CERTAIN REQUIREMENTS OF THE CALLER AND LIMIT CHARGES FOR CARDS; AND TO AMEND SECTION 12-36-90, AS AMENDED, RELATING TO THE DEFINITION OF GROSS PROCEEDS OF SALES FOR PURPOSES OF THE SALES AND USE TAX, SO AS TO EXCLUDE FROM THE DEFINITION CERTAIN SOLID WASTE FEES.
Be it enacted by the General Assembly of the State of South Carolina:
Tax returns
SECTION 1. A. The 1976 Code is amended by adding:
"Section 12-2-75. (A) Returns filed by taxpayers under Section 12-6-4910 must be signed by the following:
(1) corporate returns by an authorized officer of the corporation;
(2) partnership returns by a general partner;
(3) trust and estate returns by the trustee, personal representative, executor, or administrator, whichever is applicable;
(4)(a) except as provided in subsections (b) and (c), individual returns must be signed by the individual;
(b) deceased individual returns for individuals who would have been required to file a state tax return while living by the personal representative, administrator, or executor of the decedent's estate and the tax must be levied upon and collected from the estate;
(c) if an individual is unable to make a return or payment, including an estimated tax payment, it must be made by an authorized agent, a guardian, or other person charged with the conduct of the business of the taxpayer.
(B) The department may authorize taxpayers to sign returns by other means, including electronically."
B. This section is effective for tax years beginning after 1995.
Bond
SECTION 2. Section 12-4-310(7) of the 1976 Code, as last amended by Act 168 of 1991, is further amended to read:
"(7) require those of its officers, agents, and employees it designates to give bond for the honest performance of their duties in the sum and with the sureties it determines; and all premiums on the bonds must be paid by the commission;"
Innocent spouse
SECTION 3. A. Section 12-6-50(14) of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"(14) Sections 2001 through 7655, 7801 through 7871, and 8001 through 9602, except for Sections 6654 and 6655 which are adopted as provided in Section 12-6-3910."
B. This section is effective for tax years beginning after 1995.
Penalties
SECTION 4. Section 12-31-60 of the 1976 Code, as added by Part II, Act 145 of 1995, is amended to read:
"Section 12-31-60. Penalties and interest provided under the International Fuel Tax Agreement apply to all reports filed with the State as a result of the International Fuel Tax Agreement. These penalties are in lieu of the penalties imposed under Section 12-54-40(b)(1), (b)(2)(a), or (b)(2)(6) and the interest imposed under Section 12-54-25."
Retail sale
SECTION 5. Section 12-36-110(1)(f) of the 1976 Code is amended to read:
"(f) (Reserved);"
Wholesale sale
SECTION 6. Section 12-36-120 of the 1976 Code, as last amended by Act 361 of 1992, is further amended by adding:
"(5) food or drink products to licensed retail merchants for use as ingredients in preparing ready-to-eat food or drink sold at retail. These products include cooking oil used as an ingredient. However, items used or consumed by licensed retail merchants to prepare ready-to-eat food or drink, such as hickory chips, barbecue briquettes, gas, or electricity are subject to tax."
Casual excise tax
SECTION 7. Section 12-36-1710(B)(1)(d) of the 1976 Code is amended to read:
"(d) transferred to a licensed motor vehicle or motorcycle dealer for the purpose of resale;"
Sales tax cap
SECTION 8. The second paragraph of Section 12-36-2110(A) of the 1976 Code is amended to read:
"In the case of a lease, the total tax rate required by law applies on each payment until the total tax paid equals three hundred dollars. Nothing in this section prohibits a taxpayer from paying the total tax due at the time of execution of the lease, or with any payment under the lease. To qualify for the tax limitation provided by this section, a lease must be in writing and specifically state the term of, and remain in force for, a period in excess of ninety continuous days."
Sales tax exemptions
SECTION 9. Section 12-36-2120(28)(b) of the 1976 Code is amended to read:
"(b) hypodermic needles, insulin, alcohol swabs, blood sugar testing strips, monolet lancets, dextrometer supplies, blood glucose meters, and other similar diabetic supplies sold to diabetics under the authorization and direction of a physician;"
Sales tax exemptions
SECTION 10. Section 12-36-2120(29) of the 1976 Code is amended to read:
"(29) tangible personal property purchased by persons under a written contract with the federal government when the contract necessitating the purchase provides that title and possession of the property is to transfer from the contractor to the federal government at the time of purchase or subsequent to the time of purchase. This exemption also applies to purchases or tangible personal property used to fabricate, assemble, construct, or modify personal or real property when title and possession of the property fabricated, assembled, constructed, or modified is transferred to the federal government as required by a written contract necessitating the purchase;"
Real estate sales
SECTION 11. Section 12-39-260 of the 1976 Code is amended to read:
"Section 12-39-260. (A) Each county auditor shall keep a record of all sales or conveyances of real property made in the county, in which he shall enter, in columns, the names of the purchaser and seller, the quantity of land conveyed and the location and price of such land, and from such record he shall correct the county duplicates annually. For the purpose of carrying out this provision, the clerk of courts or register of mesne conveyances of each county shall have the endorsement of the county auditor on each deed of conveyance for real property that the conveyance has been entered in his office before such deed can be placed on record in the recording office, and the county auditor shall be entitled to a fee of twenty-five cents, for his own use, for making such entry and endorsement.
(B) The Department of Revenue and Taxation may approve other means and methods of processing and accounting for the accurate and timely recording of sales, transfers, and other conveyances of real property."
Innocent spouse
SECTION 12. Section 12-54-35 of the 1976 Code, as added by Act 349 of 1988, is amended to read:
"Section 12-54-35. A. Section 6013(e) of the Internal Revenue Code as defined in Section 12-6-40, applies in the determination of the liabilities of a spouse, except as follows:
(1) a `substantial understatement' is any understatement regardless of amount; and
(2) there is no requirement that the liability for tax exceed a specified percentage of the spouse's income."
B. This section is effective for tax years beginning after 1995.
Penalties
SECTION 13. Section 12-54-50 of the 1976 Code, as last amended by Act 168 of 1991, is further amended to read:
"Section 12-54-50. When the bank on which an uncertified check or electronic payment tendered to the department in payment of an obligation due to the department refuses payment of the check or electronic payment on account of insufficient funds of the drawer in the bank and the check or electronic payment is returned to the department, a penalty of fifteen dollars must be imposed. This penalty is in addition to and separate from any other penalty that may be imposed by the department. This section applies to all taxes or license fees levied or assessed by the department."
Name revised
SECTION 14. Section 12-54-90(A) of the 1976 Code, as amended by Act 188 of 1989, is further amended to read:
"(A) When a person fails, neglects, violates, or refuses to comply with a provision of law or regulation administered by the department, the department, in its discretion, may revoke one or more licenses held by the taxpayer within ten days of notification in writing of the taxpayer's failure to comply. The notification may be served by certified mail or personally."
Records
SECTION 15. Section 12-54-210 of the 1976 Code, as last amended by Act 76 of 1995, is further amended to read:
"Section 12-54-210. (A) A person liable for a tax, license, fee, or surcharge administered by the department or for the filing of a return, including information returns, required by this title shall keep books, papers, memoranda, records, render statements, make returns, and comply with regulations as the department prescribes. Persons failing to comply with the provisions of this section must be penalized in an amount to be assessed by the department not to exceed five hundred dollars for the period covered by the return in addition to other penalties provided by law.
(B) Microfilm reproductions of supporting record of details including, but not limited to, documents of original entry, purchase orders, invoices, checks, vouchers, and payroll records may be retained in lieu of actual documents only when the following conditions are met:
(1) the taxpayer retains the microfilm copies as long as the contents may become material in the administration of any law administered by the department;
(2) the taxpayer provides appropriate facilities for preservation of the films and for the ready inspection and location of the particular records, including a projector for viewing the records if inspection is necessary; and
(3) the taxpayer is ready to make transcripts of the information contained on the microfilm."
Repeal
SECTION 16. Section 12-6-5040 of the 1976 Code is repealed.
Property tax exemptions
SECTION 17. Section 12-37-220(B)(26), (29), and (38) of the 1976 Code, as last amended by Act 125 of 1995, is further amended to read:
"(26) Two personal motor vehicles owned or leased by recipients of the Medal of Honor.
(29) Two personal motor vehicles or 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. This exemption also extends to the surviving spouse of a qualified former POW for the lifetime or until the remarriage of the surviving spouse.
(38) Watercraft and motors which have an assessment of not more than fifty dollars."
Watercraft trailers exempt
SECTION 18. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) watercraft trailers."
Refunds
SECTION 19. Section 12-37-252 of the 1976 Code is amended to read:
"Section 12-37-252. (A) Notwithstanding any other provision of law, property that qualifies for the homestead exemption pursuant to Section 12-37-250 is classified and taxed as residential on an assessment equal to four percent of the property's fair market value. Any agriculturally classified lands that are a part of the homestead must be taxed on an assessment equal to four percent of the lands' value for agricultural purposes. The county auditor shall notify the county assessor of the property so qualifying and no further application is required for such classification and taxation.
(B) When a person qualifies for a refund pursuant to Sections 12-60-2560 and 12-43-220(c) for prior years' eligibility for the four percent owner-occupied residential assessment ratio, the person also may be certified for a homestead tax exemption pursuant to Section 12-37-250. This refund does not extend beyond the immediate preceding tax year. The refund is an exception to the limitations imposed by Section 12-60-1750."
Reimbursements
SECTION 20. Section 12-37-275 of the 1976 Code is amended to read:
"Section 12-37-275. Notwithstanding any other provision of law, requests for reimbursement for taxes not collected the previous year must not be received by the Comptroller General before January first. These requests must be for the reimbursement of eligible accounts which accrue before the first penalty date each year. Those eligible accounts that accrue or are discovered on or after the first penalty date of the tax year must be submitted to the Comptroller General in the next year's reimbursement request. These requests do not extend beyond the immediate preceding tax year."
Liability for tax
SECTION 21. Section 12-37-610 of the 1976 Code is amended to read:
"Section 12-37-610. Every person is liable to pay taxes and assessments on the real estate which he owns or may have the care of as guardian, executor, trustee, or committee."
Value
SECTION 22. A. The first paragraph immediately preceding the Schedule of Section 12-37-930 of the 1976 Code, as last amended by Act 69 of 1995, is further amended to read:
"All property must be valued for taxation at its true value in money which in all cases is the price which the property would bring following reasonable exposure to the market, where both the seller and the buyer are willing, are not acting under compulsion, and are reasonably well informed of the uses and purposes for which it is adapted and for which it is capable of being used. The fair market value for vehicles, watercraft, and aircraft must be based on values derived from a nationally recognized publication of vehicle valuations, except that the value may not exceed ninety-five percent of the prior year's value. However, acreage allotments or marketing quota allotments for a commodity established under a program of the United States Department of Agriculture is classified as incorporeal hereditaments and the market value of real property to which they are attached may not include the value, if any, of the acreage allotment or marketing quota. Fair market value of manufacturer's machinery and equipment used in the conduct of the manufacturing business, excluding vehicles, watercraft, and aircraft required to be registered or licensed by a state or federal agency, must be determined by reducing the original cost by an annual allowance for depreciation as stated in the following schedule."
B. This section is effective for tax years beginning after 1996.
Reassessment
SECTION 23. Section 12-43-217 of the 1976 Code, as added by Section 119(C), Part II, Act 145 of 1995, is amended to read:
"Section 12-43-217. Notwithstanding any other provision of law, once every fifth year each county or the State shall appraise and equalize those properties under its jurisdiction. Property valuation must be complete at the end of December of the fourth year and the county or State shall notify every taxpayer of any change in value or classification if the change is one thousand dollars or more. In the fifth year, the county or State shall implement the program and assess all property on the newly appraised values."
Legal residence
SECTION 24. A. Section 12-43-220(c) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
"(c)(1) The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, is taxed on an assessment equal to four percent of the fair market value of the property. If residential real property is held in trust and the income beneficiary of the trust occupies the property as a residence, then the assessment ratio allowed by this item applies if the trustee certifies to the assessor that the property is occupied as a residence by the income beneficiary of the trust. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for taxes on the leased property, then the property upon which he is liable for taxes, not to exceed five acres contiguous to his legal residence, must be assessed at the same ratio provided in this item. If this property has located on it any rented mobile homes or residences which are rented or any business for profit, this four percent value does not apply to those businesses or rental properties. For purposes of the assessment ratio allowed pursuant to this item, a residence does not qualify as a legal residence unless the residence is determined to be the domicile of the owner-applicant. A taxpayer may receive the four percent assessment ratio on only one residence for a tax year.
(2)(i) To qualify for the special property tax assessment ratio allowed by this item, the owner-occupant must have actually owned and occupied the residence as his legal residence and been domiciled at that address for some period during the applicable tax year and remain in that status at the time of filing the application required by this item.
(ii) This item does not apply unless the owner of the property or the owner's agent applies for the four percent assessment ratio before the first penalty date for the payment of taxes for the tax year for which the owner first claims eligibility for this assessment ratio. In the application the owner or his agent must certify to the following statement:
`Under penalty of perjury I certify that:
(A) the residence which is the subject of this application is my legal residence and where I am domiciled; and
(B) that neither I nor any other member of my household own any other residence in South Carolina which currently receives the owner-occupant four percent assessment ratio.'
(iii) For purposes of subitem (ii)(B) of this item, `a member of my household' means:
(A) the owner-occupant's spouse, except when that spouse is legally separated from the owner-occupant; and
(B) any child of the owner-occupant claimed or eligible to be claimed as a dependent on the owner-occupant's federal income tax return.
(iv) In addition to the certification, the burden of proof for eligibility for the four percent assessment ratio is on the owner-occupant and the applicant must provide proof the assessor requires including, but not limited to:
(A) a copy of the owner-occupant's most recently filed South Carolina individual income tax return;
(B) copies of South Carolina motor vehicle registrations for all motor vehicles registered in the name of the owner-occupant.
(C) other proof required by the assessor necessary to determine eligibility for the assessment ratio allowed by this item.
If the assessor determines the owner-occupant ineligible, the six percent property tax assessment ratio applies and the owner-occupant may appeal the classification as provided in Chapter 60 of this title.
(v) A member of the armed forces of the United States on active duty who is a legal resident of and domiciled in another state is nevertheless deemed a legal resident and domiciled in this State for purposes of this item if the member's permanent duty station is in this State. A copy of the member's orders filed with the assessor is considered proof sufficient of the member's permanent duty station.
(vi) No further applications are necessary from the current owner while the property for which the initial application was made continues to meet the eligibility requirements. If a change in ownership occurs, another application is required. The owner shall notify the assessor of any change in classification within six months of the change.
(vii) If a person signs the certification, obtains the four percent assessment ratio, and is thereafter found not eligible, or thereafter loses eligibility and fails to notify the assessor within six months, a penalty is imposed equal to one hundred percent of the tax paid, plus interest on that amount at the rate of one-half of one percent a month, but in no case less than thirty dollars nor more than the current year's taxes. This penalty and any interest are considered ad valorem taxes due on the property for purposes of collection and enforcement.
(viii) Failure to file within the prescribed time constitutes abandonment of the owner's right for this classification for the current tax year, but the local taxing authority may extend the time for filing upon a showing satisfactory to it that the person had reasonable cause for not filing before the first penalty date.
(3) Notwithstanding any other provision of law, a taxpayer may apply for a refund of property taxes overpaid because the property was eligible for the legal residence assessment ratio. The application must be made in accordance with Section 12-60-2560. The taxpayer must establish that the property in question was in fact his legal residence and where he was domiciled. A county council, by ordinance, may allow refunds for the county government portion of property taxes for such additional past years as it determines advisable.
(4) A legal residence qualifying for the four percent assessment ratio provided by this item must have an assessed value of not less than one hundred dollars."
B. Subsection A of this section is effective for tax years beginning after 1996 and applies for changes in ownership or classification occurring after 1996.
Value
SECTION 25. Section 12-43-220(d)(4)(A) of the 1976 Code is amended to read:
"(A) the fair market value without consideration of the standing timber of such real property under the valuation standard applicable to other real property in the same classification;"
Delinquent taxes
SECTION 26. Section 12-51-40(b) of the 1976 Code is amended to read:
"(b) If 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 property as is necessary to satisfy the payment of the taxes, assessments, penalties, and costs may be taken. In the case of real property, exclusive possession is taken by mailing a notice of delinquent property taxes, assessments, penalties, and costs to the defaulting taxpayer at the address shown on the tax receipt or to a more correct address known to the officer, by `certified mail, return receipt requested-deliver to addressee only'. In the case of personal property, 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 before a subsequent sales date, the property must be duly advertised and sold for delinquent property taxes, assessments, penalties, and costs. The return receipt of the `certified mail' notice is equivalent to `levying by distress'."
Bids
SECTION 27. Section 12-51-55 of the 1976 Code, as added by Act 90 of 1995, is amended to read:
"Section 12-51-55. 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. If the forfeited land commission determines real property on which delinquent taxes are due may be contaminated, the commission must annually notify the delinquent tax collector in writing before ordering a tax sale. A bid is not required on behalf of the forfeited land commission on this property. If the property is not redeemed, the excess above the amount of taxes, penalties, and costs for the year in which the property was sold must first be applied to the taxes becoming due during the redemption period."
Reassessment
SECTION 28. Section 12-60-2510(A)(1) of the 1976 Code, as added by Act 60 of 1995, is amended to read:
"(1) In the case of property tax assessments made by the county assessor, (a) whenever the assessor increases the fair market or special use value in making a property tax assessment by one thousand dollars or more, or (b) whenever the first property tax assessment is made on the property by a county assessor, the assessor, on or before July first in the year in which the property tax assessment is made, or as soon thereafter as practical, shall send the taxpayer a property tax assessment notice. In years when real property is appraised and assessed under a county equalization program, substantially all property tax assessment notices must be mailed by February first of the implementation year. In these reassessment years, if substantially all of the tax assessment notices are not mailed by February first, the prior year's property tax assessment must be the basis for all property tax assessments for the current tax year. A property tax assessment notice under this subsection must be in writing and must include:
(a) the fair market value;
(b) the special use value, if applicable;
(c) the assessment ratio;
(d) the property tax assessment;
(e) the percentage change over the prior market value, if there is no change in use or physical characteristics of the property;
(f) the number of acres or lots;
(g) the location of the property;
(h) the tax map number; and
(i) the appeal procedure."
Appeals
SECTION 29. Section 12-60-2910(A) of the 1976 Code, as added by Act 60 of 1995, is amended to read:
"(A) A property taxpayer may object to a personal property tax assessment or a denial of a homestead exemption made by the county auditor by requesting in writing to meet with the auditor at any time on or before the last day the tax levied upon the assessment can be timely paid."
Notice of excess
SECTION 30. Section 12-51-60 of the 1976 Code, as last amended by Act 296 of 1994, is further amended to read:
"Section 12-51-60. The successful bidder at the delinquent tax sale shall pay legal tender to the person officially charged with the collection of delinquent taxes in the full amount of the bid on the day of the sale. Upon payment, the person officially charged with the collection of delinquent taxes shall furnish the purchaser a receipt for the purchase money and attach a copy of the receipt to the execution with the endorsement of his actions which must be retained by him. 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. Once a tax deed has been issued, the defaulting taxpayer must be notified in writing by the delinquent tax collector of any excess due the taxpayer. The notice must be addressed and mailed to the defaulting taxpayer in the manner provided in Section 12-51-40(b) for taking exclusive possession of real property. Expenses of providing this notice are considered costs of the sale for purposes of determining the amount, if any, of the excess."
Notice
SECTION 31. Section 12-51-120 of the 1976 Code is amended to read:
"Section 12-51-120. Neither more than forty-five days nor less than twenty days prior to the end of the redemption period for real estate sold for taxes, the person officially charged with the collection of delinquent taxes shall mail a notice by `certified mail, return receipt requested- restricted delivery' 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 real property described on the notice has been sold for taxes and if not redeemed by paying taxes, assessments, penalties, costs and interest at the applicable rate on the bid price in the total amount of --- dollars on or before ---- (twelve months from date of sale)
(date) -----,
a tax title will be delivered to the successful purchaser at the tax 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."
Exemption
SECTION 32. A. Section 12-37-220(A)(8) of the 1976 Code, as last amended by Section 100A, Part II, Act 497 of 1994, is further amended to read:
"(8) all facilities or equipment of industrial plants which are designed for the elimination, mitigation, prevention, treatment, abatement, or control of water, air, or noise pollution, both internal and external, required by the state or federal government and used in the conduct of their business. At the request of the Department of Revenue and Taxation, the Department of Health and Environmental Control shall investigate the property of any manufacturer or company, eligible for the exemption to determine the portion of the property that qualifies as pollution control property. Upon investigation of the property, the Department of Health and Environmental Control shall furnish the Department of Revenue and Taxation with a detailed listing of the property that qualifies as pollution control property. For equipment that serves a dual purpose of production and pollution control, the value eligible for the ad valorem exemption is the difference in cost between this equipment and equipment of similar production capacity or capability without the ability to control pollution. For the purposes of this item, twenty percent of the cost of any piece of machinery and equipment placed in service in a greige mill qualifies as internal air and noise pollution control property and is exempt from property taxes. `Greige mill' means all textile processes from opening through fabric formation before dyeing and finishing;"
B. This section takes effect upon approval by the Governor and applies for property for tax years beginning after 1993.
Tax returns
SECTION 33. Section 12-54-250(D) of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"(D) The department may prescribe alternative means other than paper to file returns and reporting documents necessary for the administration of this section.
(E) Payment by immediately available funds and filing of the return are considered simultaneous acts with respect to penalties and interest for failure to file and failure to pay. Penalties and interest must be calculated based on the later of the return postmark date or payment date."
Bingo
SECTION 34. A. The 1976 Code is amended by adding:
"Section 12-21-3920. As used in this article:
(1) `Bingo' or `game' means a specific game of chance, commonly known as bingo, in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers and symbols selected at random.
(2) `Department' means the South Carolina Department of Revenue and Taxation.
(3) `Card' means a printed or nonprinted design on which there are arranged five horizontal rows and five vertical columns forming twenty-five squares. Numbers are printed in twenty-four of the squares, and the term `free', `free square', or `free space' is printed in the square or space located in the center of the card. The five columns are denominated from left to right by the respective letters of the word `B-I-N-G-O'. Each square in the `B' column contains a number from one through fifteen inclusive; each square in the `I' column contains a number from sixteen through thirty inclusive; except for the center space which is marked as free, each square in the `N' column contains a number from thirty-one through forty-five inclusive; each square in the `G' column contains a number from forty-six through sixty inclusive; and each square in the `O' column contains a number from sixty-one through seventy-five inclusive. No number may appear twice on the same card.
(4) `Promoter' means an individual, corporation, partnership, or organization who is hired by a nonprofit organization to manage, operate, or conduct the licensee's bingo game. The person hired under written contract is considered the promoter.
(5) `Nonprofit organization' means an entity which is organized and operated exclusively for charitable, religious, or fraternal purposes which is exempt from federal income taxes pursuant to Internal Revenue Code Section 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19).
(6) `Session' means a consecutive series of games which must occur only between one o'clock p.m. and one o'clock a.m. No more than one session may occur during the permitted twelve-hour period. These limitations do not apply to games operated by state or county fairs.
(7) `Fair' means a recognized annual state or county fair. The fair must be recognized by the governing body of the county in which it is held, or in the case of the State, by the South Carolina Agricultural and Mechanical Society.
(8) `Ball' means a ball, disk, square, or other object upon which is printed a letter and number which corresponds to the letter and number of a square on a bingo card.
(9) `Cage' means a device, whether operated manually or by air blower, in which bingo balls are placed before the bingo game begins.
(10) `Caller' means the house representative who is responsible for drawing bingo balls and announcing the configuration and the result of each drawing to the players.
(11) `Drawing' means the indiscriminate selection of a single ball from the cage.
(12) `House' means the nonprofit organization and promoter licensed with the department.
(13) `Marker' means a device which indicates the number called.
(14) `Master-board' means the receptacle used by the house to display balls which are drawn during the bingo game.
(15) `Player' means one who participates in a game of bingo other than as an agent, promoter, or representative of the house.
(16) `Fund' means the Parks and Recreation Development Fund.
(17) `Building' means a structure surrounded by exterior walls or permanent firewalls.
(18) `Manufacturer' means a person who manufactures bingo cards for use in this State and who is approved by the department.
(19) `Distributor' means a person who brings or sells bingo cards in this State and who is approved by the department.
Section 12-21-3940. (A) Before conducting a game of bingo, a nonprofit organization shall file with the department a written application in a form prescribed by the department, executed, and notarized which must include:
(1) the name, address, and telephone number of the applicant and sufficient facts relating to its incorporation and organization to enable the department to determine whether it is an authorized organization;
(2) a copy of the organization's corporate charter and the Internal Revenue Service's statement exempting the applicant from federal income taxes;
(3) the names, addresses, and telephone numbers of the organization's officers;
(4) the place and time the applicant intends to conduct bingo under the license for which it applied;
(5) the specific purpose to which the bingo net proceeds are to be devoted;
(6) the designation of a `promoter' as defined by this article;
(7) a copy of any contract or lease between a promoter and the nonprofit organization;
(8) the name, address, telephone number, birth date, and Social Security number of each person who will work at the proposed bingo games and receive compensation for the work, the nature of the work to be performed, and a statement as to whether or not the person has been convicted within the last twenty years of a state or federal felony, gambling offense, criminal fraud, or a crime that has a sentence of two or more years;
(9) other information considered necessary by the department.
(B) Upon application for a license, the department has thirty days to approve or reject the application based on the requirements of this article.
(C) The nonprofit organization does not need to apply for renewal of the license as long as there are no changes in the operation or location of the game. Changes in information supplied on the original application must be forwarded to the department, in writing, within thirty days of the change. In the case of a change in the place and time, notice must be given thirty days before the change.
Section 12-21-3950. (A) A promoter under contract with a licensed nonprofit organization to manage, operate, or conduct a game shall file a written application for a promoter's license in a form prescribed by the department, executed, and notarized, which must include:
(1) the name, address, telephone number, and Social Security number of the promoter or of each officer if the promoter is a corporation;
(2) a copy of the promoter's contract or lease with the nonprofit organization. A contract must exist between the sponsoring organization and the promoter detailing all expenses;
(3) the name, address, telephone numbers, and Social Security number of any person working for the promoter at the bingo game and receiving compensation for the work;
(4) a notarized statement as to whether or not the applicant for a promoter's license or any of his employees have been convicted within the last twenty years of a state or federal felony, gambling offense, criminal fraud, or a crime that has a sentence of two or more years.
(B) Upon application for a license, the department has thirty days to approve or reject the application based on the requirements of this article.
(C) A promoter shall file a renewal application each year submitting any changes in information and documentation previously submitted as required by this section. The promoter is required to notify the department, in writing, of any changes in the information supplied on the application within thirty days of the change.
(D) The license authorized by this section is for the privilege of engaging in business as a bingo promoter and must be purchased from the department at a cost of one thousand dollars a year.
A promoter shall obtain a promoter's license for each organization for which he operates bingo games.
Section 12-21-4060. A person who has been convicted within the last twenty years of violating a state or federal criminal statute relating to gaming or gambling, or who has been convicted of any other crime that has a sentence of two or more years, or where applicable, whose promoter's license has been revoked by the department is not permitted to manage or conduct a game or assist in any manner with the bingo operation.
B. It is the intent of the General Assembly that the provisions of Sections 12-21-3920, 12-21-3940, 12-21-3950, and 12-21-4060 of the 1976 Code, as added by this section, supersede the provisions of those sections of the 1976 Code as they may be added by any other enactment in the 1996 session of the General Assembly.
C. This section takes effect October 1, 1997.
Bingo
SECTION 35. A. Section 12-6-1140 of the 1976 Code, as last amended by an act of 1996 bearing ratification number 382, is further amended by deleting the unnumbered item added by Section 2 of that act, which reads:
"( ) Bingo prizes and winnings as allowed under the game of bingo provided in Article 24, Chapter 21 of this title."
B. Article 24, Chapter 21, Title 12 of the 1976 Code, as added by an act of 1996 bearing ratification number 382, is amended by adding:
"Section 12-21-3955. If a nonprofit organization intending to operate a Class AA or B license does not contract with an outside promoter, the organization shall designate a member as the promoter."
C. Section 12-21-4000(5) of the 1976 Code, as added by an act of 1996 bearing ratification number 382, is amended to read:
"(5) Reserved"
D. Section 12-21-4030(A) of the 1976 Code, as added by an act of 1996 bearing ratification number 382, is amended to read:
"(A) A promoter or organization may not impose a charge, other than as provided in subsection (B), on a player of more than the face value of each card sold to play bingo."
E. Subsection A of this section takes effect upon approval by the Governor. The remaining subsections take effect October 1, 1997.
Gross proceeds
SECTION 36. A. Section 12-36-90(2) of the 1976 Code, as last amended by Act 497 of 1994, is further amended by adding an appropriately lettered subitem to read:
"( ) fees imposed on the sale of motor oil, new tires, lead-acid batteries, and white goods pursuant to Article 1, Chapter 96 of Title 44, including the refundable deposit when a lead-acid battery core is not returned to a retailer."
B. This section takes effect July 1, 1996.
Time effective
SECTION 37. Except where otherwise provided, this act takes effect upon approval by the Governor.
Approved the 19th day of June, 1996.