Download This Bill in Microsoft Word format

Bill 3228

                    Current Status

Bill Number:                      3228
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  19990112
Primary Sponsor:                  Bowers
All Sponsors:                     Bowers
Drafted Document Number:          l:\council\bills\kgh\15167htc99.doc
Residing Body:                    House
Current Committee:                Ways and Means Committee 30 HWM
Subject:                          Property tax exemption, residence of four 
                                  or fewer units, four percent ratio assessment; 
                                  school operating millage


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
House   19990112  Introduced, read first time,           30 HWM
                  referred to Committee
House   19990106  Prefiled, referred to Committee        30 HWM


                             Versions of This Bill

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-462 SO AS TO PROVIDE FOR AN EXEMPTION FROM THE PROPERTY TAX ON RESIDENTIAL PROPERTY CONSISTING OF FOUR OR FEWER UNITS IN AMOUNTS OF FAIR MARKET VALUE SUFFICIENT TO EQUAL AN ASSESSMENT RATIO OF FOUR PERCENT ON SUCH PROPERTY AND TO EXTEND THE RESIDENTIAL EXEMPTION FROM SCHOOL OPERATING MILLAGE TO SUCH PROPERTY, TO ESTABLISH THE RESIDENTIAL PROPERTY TAX RELIEF TRUST FUND AND REQUIRE A CUMULATIVE FIFTEEN PERCENT OF RECURRING GENERAL FUND REVENUE GROWTH TO BE CREDITED TO THE FUND TO REIMBURSE LOCAL TAXING ENTITIES FOR PROPERTY TAXES NOT COLLECTED BECAUSE OF THE EXEMPTION PROVIDED BY THIS SECTION, TO PRESCRIBE THE ORDER OF THE TAX LIABILITIES TO WHICH THE EXEMPTION APPLIES, TO PROVIDE THAT PROPERTY EXEMPTED FROM PROPERTY TAX BY THIS SECTION NEVERTHELESS IS CONSIDERED TAXABLE PROPERTY FOR PURPOSES OF BONDED INDEBTEDNESS AND THE INDEX OF TAXPAYING ABILITY, AND TO PROVIDE APPROPRIATE DEFINITIONS.

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 12-37-462. (A) As used in this section:

(1) 'Local residential property base payment' means an amount equal to the revenues actually collected in the most recently completed calendar year by a taxing entity from property tax on all residential property.

(2) 'Residential property' means that property subject to the assessment provided pursuant to Section 1(5), Article X of the Constitution of this State and Section 12-43-220(e) used for residential purposes if the property has no more than four individual units. Regardless of ownership or configuration, all units in a structure or complex of structures must be aggregated for purposes of determining eligibility for the exemption allowed by this section.

(3) 'Taxing entity' means a county, municipality, school district, or special purpose or public service district.

(4) 'Total residential property base payment' means an amount equal to the total revenues actually collected in the most recently completed calendar year by all taxing entities in this State from property tax on residential property.

(5) 'Trust fund' means the Residential Property Tax Relief Trust Fund established pursuant to subsection (B) of this section.

(6) 'State Residential Property Tax Reimbursement' means the reimbursement allocated monthly to a county for its taxing entities to reimburse for the exemptions allowed by this section. The allocation to a county is determined by the Director of the Department of Revenue for each fiscal year by multiplying trust fund revenues by the proportion that the local residential property base payment of all county taxing entities is of the total residential property base payment.

(B) There is established in the State Treasury the Residential Property Tax Relief Trust Fund, separate and distinct from all other funds, to which must be credited amounts provided in subsection (C) of this section. Revenues in this trust fund must be used to provide taxing entities the reimbursement required pursuant to this section for property tax not collected because of the exemptions allowed by this section. The trust fund is administered by the Comptroller General. Earnings on the trust fund must be credited to the general fund of the State.

(C) Annually, the Board of Economic Advisors shall remove from its estimated revenue projection for the succeeding fiscal year an amount equal to fifteen percent of projected year-to-year recurring general fund growth plus the total of all amounts previously credited to the trust fund, but not more than the total residential property base payment. This amount is automatically credited to the trust fund for the applicable fiscal year, is not available for appropriation, and is not considered part of the general fund of the State except for the purpose of calculating amounts which annually must be credited to the trust fund. Amounts credited must be earmarked from state income tax revenues.

(D) From revenue credited to the trust fund for a fiscal year, each county must be allocated monthly its state residential property tax reimbursement.

(E) Based on the State Residential Property Tax Reimbursement, the county auditor shall calculate and prescribe a percentage reduction on each residential property tax bill falling due in the applicable fiscal year, reducing liabilities in the following order:

(1) amounts required to equal a four percent assessment ratio on such property;

(2) amounts required to extend the exemption allowed pursuant to Section 12-37-251 to each individual unit of residential property.

Liability in item (1) must be eliminated before reductions are applied to item (2).

From the State Residential Property Tax Reimbursement, each taxing entity in the county must be reimbursed monthly for revenues not collected by it because of the percentage reduction on the residential property tax it otherwise would receive.

(F) Notwithstanding any other provision of law, the value of property exempted from property tax as provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15, Article X of the Constitution of this State and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3)."

SECTION 2. This act takes effect July 1, 1999, and first applies for the 2000-01 budget process. The exemptions allowed pursuant to this section apply for property tax years beginning after 1999.

This web page was last updated on Wednesday, December 9, 2009 at 9:13 A.M.