Current Status Bill Number:3762 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970401 Primary Sponsor:Klauber All Sponsors:Klauber, Barrett, Campsen, Sandifer, McKay, Mullen, Edge, Robinson, Meacham, Carnell and Quinn Drafted Document Number:dka\4235mm.97 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Property tax assessments, homeowners' association property; special valuation provisions; Taxation, Property
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19970501 Introduced, read first time, 06 SF
referred to Committee
House 19970430 Read third time, sent to Senate
House 19970429 Read second time
House 19970417 Committee report: Favorable 30 HWM
House 19970401 Introduced, read first time, 30 HWM
referred to Committee
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COMMITTEE REPORT
April 17, 1997
H. 3762
Introduced by Reps. Klauber, Barrett, Campsen, Sandifer, McKay, Mullen, Edge, Robinson, Meacham, Carnell and Quinn
S. Printed 4/17/97--H.
Read the first time April 1, 1997.
To whom was referred a Bill (H. 3762), to amend Section 12-43-230, as amended, Code of Laws of South Carolina, 1976, relating to homeowners' association property, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass:
HENRY E. BROWN, JR., for Committee.
This bill would have no effect on local property tax revenue assuming that local governments adjusted for the lost assessed values when calculating their millage rates in future years. However, we estimate that approximately $2,400,000 in tax burden would be shifted from homeowners' association property to other classes of property beginning in FY 1997-98.
This estimate is based on a survey of the counties. The counties listed below were able to provide the department with estimates of their revenue impact. From this data, we estimate the statewide impact at $2,400,000.
County Revenue Loss
Aiken 0
Anderson 0
Bamberg 0
Barnwell 0
Beaufort (2,000,000)
Berkeley 0
Calhoun 0
Chester 0
Clarendon (7,500)
Dillon 0
Dorchester 0
Edgefield (33,000)
Florence (130,000)
Greenville 0
Greenwood 0
Horry 0
Kershaw 0
Lexington 0
McCormick (16,000)
Newberry 0
Oconee (20,200)
Orangeburg (76,000)
Pickens 0
Richland 0
Spartanburg 0
Sumter 0
Union 0
Williamsburg 0
York 0
Total 2,282,700
Approved By:
Burnet R. Maybank, III
S.C. Department of Revenue
TO AMEND SECTION 12-43-230, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HOMEOWNERS' ASSOCIATION PROPERTY FOR PURPOSES OF EQUALIZATION AND REASSESSMENT, SO AS TO PROVIDE FOR DESIGNATION BY THE HOMEOWNERS' ASSOCIATION AND APPLICATION FOR SPECIAL VALUATION OF ONE OR MORE TRACTS OR PARCELS OF LAND.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-43-230(d) of the 1976 Code, as last amended by Act 403 of 1996, is further amended to read:
"(d) For purposes of this article, 'homeowners' association property' means real and personal property owned by a homeowners' association if:
(1) property owned by the homeowners' association is held for the use, benefit, and enjoyment of members of the homeowners' association;
(2) each member of the homeowners' association has an irrevocable right to use and enjoy on an equal basis, property owned by the homeowners' association, subject to any restrictions imposed by the instruments conveying the right or the rules, regulations, or bylaws of the homeowners' association; and
(3) each irrevocable right to use and enjoy property owned by the homeowners' association is appurtenant to taxable real property owned by a member of the homeowners' association.
Notwithstanding any other provision of this subsection, homeowners' association property shall not be construed so as to include a golf course. Subject to making the appropriate application pursuant to this subsection, a homeowners' association may designate one or any number of its qualifying tracts or parcels as homeowners' association property for purposes of the special valuation contained in Section 12-43-227.
As used in this subsection, 'homeowners' association' means an organization which is organized and operated to provide for the acquisition, construction, management, and maintenance of property.
Homeowners' association property does not come within the provisions of this subsection unless the owners of the real property or their agents make a written application therefor for it on or before the first penalty date for taxes due for the first tax year in which the special valuation is claimed. The application may be with respect to one or any number of tracts or parcels owned by the homeowners' association. The application for the special valuation must be made to the assessor of the county in which the special valuation property is located, on forms provided by the county and approved by the department which includes the reporting of nonqualified gross receipts, and failure to apply constitutes a waiver of the special valuation for that year. No additional annual filing is required while the property remains homeowners' association property and the ownership remains the same, unless the nonqualified gross receipts within the meaning of Section 12-43-227 for the most recent completed tax year either (i) exceed the amount of nonqualified gross receipts with respect to the property reported on the most recently filed application by ten percent or more or (ii) are less than ninety percent of the amount of nonqualified gross receipts with respect to the property reported on the most recently filed application. In such a that case, the owners of the real property or their agents must make additional written application with respect to the property and report the change in nonqualified gross receipts."
SECTION 2. This act takes effect upon approval by the Governor and applies to property tax years beginning after 1996.