Current Status Bill Number:651 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950321 Primary Sponsor:McGill All Sponsors:McGill Drafted Document Number:jic\5650htc.95 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Property tax exemption, five-year
Body Date Action Description Com Leg Involved
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Senate 19950321 Introduced, read first time, 06 SF
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-223 SO AS TO PROVIDE THAT A NEW FIVE-YEAR PROPERTY TAX EXEMPTION PERIOD FOR PURPOSES OF THE VARIOUS FIVE-YEAR EXEMPTIONS BEGINS FOLLOWING AN ARMS LENGTH SALE OF ASSETS BETWEEN UNRELATED PARTIES AND TO PROVIDE THOSE TRANSACTIONS THAT ARE CONSIDERED TO BE BETWEEN RELATED PARTIES.
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 12-37-223. (A) For purposes of the exemptions allowed pursuant to Section 12-37-220(A)(7) and (B)(32) and (34), an arms length sale of assets between unrelated parties qualifies the purchaser for a new five-year exemption.
(B) For purposes of this section, a sale between the following individuals or entities is considered a sale to a related party:
(1) a sale between an individual and the individual's child, grandchild, or parent;
(2) a sale between an estate and a beneficiary of the estate;
(3) a sale between a partnership and any partner who holds a twenty-five percent or greater interest in the partnership;
(4) a corporation and any shareholder of the corporation owning twenty-five percent or more of the stock of the corporation;
(5) a limited liability company or a limited liability partnership and any member who owns a twenty-five percent or greater interest in the entity;
(6) a sale between entities, including a corporation, partnership, limited liability company, or limited liability partnership where a shareholder, partner, or member owns a twenty-five percent or greater interest in both entities."
SECTION 2. Upon approval by the Governor, this act is effective for property tax years beginning after 1994.