Current Status Bill Number:4835 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960327 Primary Sponsor:Robinson All Sponsors:Robinson, Herdklotz, Waldrop, Fulmer, Sandifer, Marchbanks, Rice, Haskins, Trotter and Harrell Drafted Document Number:dka\3623cm.96 Residing Body:Senate Current Committee:Finance Committee 06 SF Date of Last Amendment:19960416 Subject:Taxation provisions, property assessments
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19960418 Introduced, read first time, 06 SF
referred to Committee
House 19960417 Read third time, sent to Senate
House 19960416 Amended, read second time
House 19960411 Debate adjourned until
Tuesday, 19960416
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.
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 16, 1996
H. 4835
Introduced by REPS. Robinson, Herdklotz, Waldrop, Fulmer, Sandifer, Marchbanks, Rice, Haskins, Trotter and Harrell
S. Printed 4/16/96--H.
Read the first time March 27, 1996.
TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, 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, AND TO PROVIDE AN AD VALOREM TAX EXEMPTION FOR WATERCRAFT TRAILERS; 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, THAT A TAXPAYER MAY RECEIVE THE FOUR PERCENT ASSESSMENT ON ONE RESIDENCE FOR ANY TAX YEAR, 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.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. 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 for which special license tags have been issued by the Department of Revenue and Taxation under the provisions of Article 16 of Chapter 3 of Title 56.
(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, for which motor vehicle or truck a special tag has been issued by the Department of Revenue and Taxation in accordance with the provisions of Sections 56-3-1150 and 56-3-1160. 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) Boats Watercraft and motors valued below the amount determined by the county auditor necessary to generate a tax bill equal to fifteen dollars which have an assessment of not more than fifty dollars."
SECTION 2. Section 12-37-220(B) of the 1976 Code, as last amended by Act 125 of 1995, is further amended by adding:
"(40) watercraft trailers."
SECTION 3. 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 of the 1976 Code 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."
SECTION 4. 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 shall must not be received by the Comptroller General prior to 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."
SECTION 5. Section 12-37-610 of the 1976 Code is amended to read:
"Section 12-37-610. Every person shall be is liable to pay taxes and assessments on the real estate of which he may stand seized in fee or for life, in dower or as husband in right of his wife which he owns or may have the care of as guardian, executor, trustee or committee."
SECTION 6. 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 motor vehicles, licensed by the Department of Revenue and Taxation 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, licensed by the Department of Transportation, boats and airplanes 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.
SECTION 7. 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 fourth fifth year each county or the State shall appraise and equalize those properties under its jurisdiction. Upon completion of the reassessment program, 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."
SECTION 8. 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. This subsection (c) is not applicable unless the owner of the property or his agents apply therefor to the county assessor on or before the first penalty date for taxes due for the first tax year in which the assessment under this article is made and certify to the following statement: "Under the penalty of perjury I certify that I meet the qualifications for the special assessment ratio for a legal residence for the appropriate tax year".
To qualify for this special assessment ratio, the owner-occupant must have actually occupied the residence, prior to the date of application, for some period during the tax year and remain an owner-occupant at the time of application.
The assessor shall have printed in the local newspaper during the period January through December at least five notices calling to public attention the provisions of filing the application as a prerequisite for claiming this classification. 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 on or before the first penalty date.
No further applications are necessary while the property for which the initial application was made continues to meet the eligibility requirements of this item. The owner shall notify the assessor of any change in use within six months of the change.
If a person signs the certification and is not eligible or thereafter loses eligibility and fails to notify the county assessor within the allotted time, a penalty of ten percent and interest at the rate of one-half of one percent a month must be paid on the difference between the amount that was paid and the amount that should have been paid, but not less than thirty dollars nor more than the current year's taxes.
The governing body of the county concerned as an alternative may elect, determine, and direct that the tax assessor shall determine and designate the various properties to be subject to the special assessment ratio provided in this subsection. Upon the determination by the governing body of the county concerned, no publication of notice is required and no application or other certification is then required.
(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 paid overpaid when because the property could have been taxed at was eligible for the legal residence assessment ratio, as is provided for above. 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 may, 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.
SECTION 9. 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;"
SECTION 10. 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 on or 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'."
SECTION 11. 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."
SECTION 12. 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 July February first of the implementation year. In these reassessment years, if substantially all of the tax assessment notices are not mailed by July 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)(f) the location of the property;
(h)(g) the tax map number; and
(i)(h) the appeal procedure."
SECTION 13. 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 within thirty days after the tax notice is mailed at any time on or before the last day the tax levied upon the assessment can be timely paid."
SECTION 14. A. Section 12-37-220(B)(2) of the 1976 Code, as last amended by Act 90 of 1991, is further amended to read:
"(2) The dwelling house in which he a person resides and a lot not to exceed one acre of land owned in fee or for life, or jointly with his the person or her the person's spouse, by a paraplegic or hemiplegic person or a person who is blind and permanently and totally disabled, is exempt from all property taxation provided the person furnishes satisfactory proof of his the disability to the State Department of Revenue and Taxation. The exemption is allowed to the surviving spouse of the person so long as the spouse does not remarry, resides in the dwelling, and obtains by devise the fee or a life estate in the dwelling. The dwelling house is defined as the person's legal residence. For purposes of this item, a hemiplegic person is a person who has paralysis of one lateral half of the body resulting from injury to the motor centers of the brain."
B. This section takes effect upon approval by the Governor and applies to taxable years after 1995.
SECTION 15. Section 12-51-60 of the 1976 Code is 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."
SECTION 16. Except where otherwise provided, this act takes effect upon approval by the Governor.