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Current Status Bill Number:View additional legislative information at the LPITS web site.4451 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20000118 Primary Sponsor:Harrison All Sponsors:Harrison, Campsen, Dantzler, Loftis, Riser, Rodgers, Sandifer, Vaughn and Young-Brickell Drafted Document Number:l:\council\bills\bbm\9099htc00.doc Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Homestead Property Tax Deferral for the Elderly Act; Taxation, Aging History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 20000118 Introduced, read first time, 30 HWM referred to Committee Versions of This Bill
TO AMEND CHAPTER 37, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAXES, BY ADDING ARTICLE 4 SO AS TO ENACT THE "HOMESTEAD PROPERTY TAX DEFERRAL FOR THE ELDERLY ACT" AND PROVIDE FOR ITS OPERATION AND TO AMEND SECTION 12-45-70, AS AMENDED, RELATING TO THE DUE DATE FOR PROPERTY TAXES, SO AS TO EXCLUDE FROM THAT DATE TAXES DEFERRED UNDER THIS ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 37, Title 12 of the 1976 Code is amended by adding:
Section 12-37-505. This article may be cited as the Homestead Property Tax Deferral for the Elderly Act.
Section 12-37-510. As used in this article, 'tax collector' means the county treasurer or municipal officer authorized by law to receive property tax payments.
Section 12-37-515. (A) An individual who is entitled to claim a homestead exemption pursuant to Section 12-37-250 or the agent of such an individual may elect to defer payment of all or part of the ad valorem taxes levied on the homestead that exceed by more than fifty dollars the ad valorem taxes due on that homestead in the prior property tax year by filing an annual application for tax deferral with the tax collector within thirty days after tax notices for the year are mailed. Taxes attributable to improvements to the homestead may not be deferred.
(B) It is the duty of each applicant for a deferral to demonstrate affirmatively compliance with the requirements of this article.
Section 12-37-520. A tax deferral in any one year may not be granted pursuant to Section 12-37-515 if:
(1) the total amount of deferred taxes and interest plus the total amount of all other unsatisfied liens on the homestead exceeds eighty-five percent of the fair market value of the homestead as shown on the county tax duplicate for the immediately preceding tax year;
(2) the homestead for which the deferral is sought is subject to any lien, the terms of which are dictated by federal law, rule, or regulation prohibiting deferral of taxes;
(3) any nondeferred taxes on the homestead are delinquent;
(4) proof of fire and extended coverage insurance is not included in the application.
Section 12-37-525. (A)(1) The application for deferral must be made upon a form prescribed by the Department of Revenue and furnished by the tax collector. The application form must advise the applicant of the manner in which interest is computed. Each application form must contain an explanation of the conditions to be met for approval and the conditions under which deferred taxes and interest become due, payable, and delinquent. Each application form must clearly state that all deferrals pursuant to this article constitute a lien on the applicant's homestead.
(2) If the tax collector finds that the applicant is entitled to the tax deferral, he shall approve the application and file the application in the permanent records. If the tax collector finds that the applicant is not entitled to the deferral, he shall send a notice of disapproval to the applicant giving his reasons for the disapproval within thirty days of the filing of the application either by personal delivery or by certified mail to the mailing address given by the applicant, and he shall make a return on the original notice of the manner in which the notice was served on the applicant and shall file the return among the permanent records of his office. The original notice of disapproval sent to the applicant must advise the applicant of his right to appeal the decision of the tax collector to the Administrative Law Judge Division and must inform the applicant of the procedure for filing an appeal.
(3) The action by the Administrative Law Judge Division is final unless the applicant, tax collector, or other lienholder files an appeal with the court of common pleas of the county in which the property lies within thirty days from the date the taxpayer receives written notification of the decision of the Administrative Law Judge Division. A deferral is not allowed pursuant to a rejected application unless the rejection is overturned on appeal, at which time the tax collector shall return to the taxpayer, without interest, the amount requested to be deferred. Interest on this deferral begins on payment to the taxpayer.
(C) Each applicant shall furnish proof in the application of fire and extended coverage insurance on the homestead in an amount which is in excess of the sum of all outstanding liens and deferred taxes and interest with a loss payable clause to the tax collector.
(D) Each applicant shall provide a list and the amount of all outstanding liens on the applicant's homestead.
Section 12-37-530. (A) The amount of taxes deferred pursuant to this article accrues interest until paid at the rate of eight percent a year.
(B) Except as provided in Section 12-37-525(A)(3), interest on taxes deferred pursuant to this article in any year begins accruing on the date the taxes were due.
Section 12-37-535. The taxes and interest deferred pursuant to this article constitute a first lien and attach as of the date and in the same manner as the lien provided pursuant to Section 12-49-10 and must be collected as are other liens for taxes, as provided for under this title, but the deferred taxes and interest are due, payable, and delinquent as provided in this article. Notwithstanding any other provision of law, the lien established by this section continues on the property until the deferred taxes and accrued interest are paid in full.
Section 12-37-540. Each year, at the time the tax notices are mailed, the tax collector shall notify each property owner to whom a homestead tax deferral has been previously granted of the accumulated sum of deferred taxes and interest outstanding.
Section 12-37-545. (A) If there is a change in tax-deferred property so that the owner is no longer entitled to a homestead exemption for the property pursuant to Section 12-37-250, or if the owner fails to maintain the required fire and extended insurance coverage, the total amount of deferred taxes and interest for all previous years are due and payable either on the date on which the change occurs or on the date failure to maintain insurance occurs.
(B) If there is a change in ownership of tax-deferred property, the total amount of deferred taxes and interest for all previous years is due and payable on the date the change in ownership occurs. However, when the change in ownership is to a surviving spouse and the spouse is eligible for a homestead exemption on the property pursuant to Section 12-37-250, the surviving spouse may continue the deferral of previously deferred taxes and interest pursuant to this article.
(C) During any year in which the total amount of deferred taxes, accrued interest, and all other unsatisfied liens on a homestead exceeds eighty-five percent of the fair market value of the homestead as shown on the tax duplicate, the tax collector shall immediately notify the owner of the homestead that the portion of taxes and interest which exceeds eighty-five percent of the value of the homestead is due and payable within thirty days of receipt of the notice. Failure to pay the amount due shall cause the total amount of deferred taxes and interest also to become due and payable at the end of the thirty days.
(D) All deferred taxes and accrued interest which are made due and payable by this section are delinquent and subject to interest in accordance with Section 12-54-25 at the end of one hundred twenty days following the date the deferred taxes become due and payable.
Section 12-37-550. (A) All or part of the deferred taxes and accrued interest may be paid at any time to the tax collector.
(B) Any partial payment made pursuant to this section must be applied first to accrued interest. The minimum partial payment allowed is twenty-five dollars.
Section 12-37-555. When deferred taxes and accrued interest is collected, the tax collector shall maintain a record of the payment, which record must contain a description of the property and the amount of taxes and accrued interest collected for the property. The tax collector shall distribute payments received to the local taxing entities to whom the taxes are owed and the interest must be distributed as taxes are distributed.
Section 12-37-560. If any holder of a deed to secure debt or any mortgagee elects to pay the taxes of an applicant who qualifies for and receives a tax deferral, the election does not give the holder of the deed or the mortgagee the right to foreclose.
Section 12-37-565. Except with respect to requirements dictated by federal law, rule, or regulation, no mortgage, deed to secure debt, or other agreement may contain a provision, clause, or statement which prohibits the owner from claiming a real property tax deferral on his homestead. Any such provision, clause, or statement executed after December 31, 2000, is void and unenforceable.
Section 12-37-570. The following penalties are imposed on a person who wilfully files information required under this article which is incorrect:
(1) The person shall pay the total amount of taxes and interest deferred, which is immediately due;
(2) The person is disqualified from filing a homestead tax deferral application for the next three years; and
(3) The person shall pay a penalty of twenty-five percent of the total amount of taxes and interest deferred."
SECTION 2. The first paragraph of Section 12-45-70 of the 1976 Code is amended to read:
"Except as provided in Article 4 of Chapter 37 of this title, all taxes are due and payable between the thirtieth day of September and the fifteenth day of January after their assessment in each year. The several county treasurers under the direction and supervision of the Comptroller General shall collect the taxes in the manner prescribed by law and give receipts therefor to the persons paying them. In the receipts and tax notices the real estate paid on must be briefly described including tax map number and an identifiable description and the value and a description of the personal property paid on must be stated, together with the time the taxes are paid, the amount paid, and the township where the property is located."
SECTION 3. This act takes effect January 1, 2001, and first applies with respect to property taxes due for the 2001 tax year.
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