Download This Bill in Microsoft Word format
Current Status Bill Number:View additional legislative information at the LPITS web site.4932 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20000413 Primary Sponsor:Robinson All Sponsors:Robinson Drafted Document Number:l:\council\bills\dka\3833mm00.doc Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Real Property Tax Liability Act, Assessments, Delinquent sales, redemption period, real estate mortgagee rights History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 20000413 Introduced, read first time, 30 HWM referred to Committee Versions of This Bill
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ENACT THE REAL PROPERTY TAX LIABILITY ACT; TO AMEND CHAPTER 45, TITLE 12, RELATING TO COUNTY TREASURERS, BY ADDING SECTION 12-45-78 SO AS TO PROVIDE THAT A REFUND OF OVERPAYMENT OF REAL PROPERTY TAX RESULTING FROM THE GRANTING OF THE HOMESTEAD EXEMPTION OR RESIDENTIAL CLASSIFICATION MUST BE PAID TO THE OWNER OF RECORD AT THE TIME OF THE EXEMPTION OR CLASSIFICATION; TO AMEND SECTION 12-37-610, AS AMENDED, RELATING TO LIABILITY FOR TAXES ON REAL ESTATE, SO AS TO PROVIDE FOR LIABILITY OF THE OWNER OR CARETAKER OF RECORD AS OF DECEMBER THIRTY-FIRST PRECEDING THE TAX YEAR; TO AMEND SECTION 12-51-40, AS AMENDED, RELATING TO LEVY OF EXECUTION AND SALE OF PROPERTY FOR DELINQUENT TAXES, SO AS TO PROVIDE FOR EXECUTION AGAINST PROPERTY TRANSFERRED BY THE DEFAULTING TAXPAYER AND NOTICE TO THE GRANTEE OF RECORD; TO AMEND SECTION 12-51-50, AS AMENDED, RELATING TO PROCEDURES FOR THE SALE OF PROPERTY OF A DEFAULTING TAXPAYER, SO AS TO PROVIDE FOR SALE OF PROPERTY OF THE DEFAULTING TAXPAYER AND OF A GRANTEE OF THE DEFAULTING TAXPAYER; TO AMEND SECTION 12-51-55, AS AMENDED, RELATING TO A BID SUBMITTED BY THE FORFEITED LAND COMMISSION, SO AS TO PROVIDE THAT A SALE TO THE COMMISSION IS VOIDABLE BY THE COMMISSION UPON LATER DISCOVERY THAT THE PROPERTY IS CONTAMINATED; TO AMEND SECTION 12-51-60, AS AMENDED, RELATING TO PAYMENT BY THE SUCCESSFUL BIDDER, SO AS TO PROVIDE FOR NOTICE TO THE DEFAULTING TAXPAYER AND THE OWNER OF RECORD OF THE ISSUANCE OF THE TAX DEED; TO AMEND SECTION 12-51-90, AS AMENDED, RELATING TO REDEMPTION OF REAL PROPERTY SOLD FOR DELINQUENT TAXES, SO AS TO PROVIDE FOR REDEMPTION BY A LESSEE OF THE PROPERTY, IN ADDITION TO REDEMPTION BY THE DEFAULTING TAXPAYER, A MORTGAGEE, OR A JUDGMENT CREDITOR; TO AMEND SECTION 12-51-120, AS AMENDED, RELATING TO NOTICE OF THE RUNNING OF THE REDEMPTION PERIOD, SO AS TO PROVIDE FOR NOTICE TO THE DEFAULTING TAXPAYER AND A PUBLICLY RECORDED GRANTEE, MORTGAGEE, OR LESSEE; TO AMEND SECTION 12-51-130, AS AMENDED, RELATING TO EXECUTION AND DELIVERY OF A TAX TITLE, SO AS TO PROVIDE THAT THE TAX TITLE INCLUDE THE NAME OF A GRANTEE OF RECORD OF THE PROPERTY AND THAT AN OVERPAYMENT BE PAID WITHIN NINETY DAYS TO THE OWNER OF RECORD; AND TO REPEAL ARTICLE 3, CHAPTER 49, TITLE 12, RELATING TO RIGHTS OF REAL ESTATE MORTGAGEES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that (1) it is necessary to clarify the law as to the person or entity liable for payment of the ad valorem tax on real property and to provide a specific procedure for both the enforcement of payment of the tax on the property and the protection of the rights of all holders of interest in the property, and (2) this act may be cited as "The Real Property Tax Liability Act".
SECTION 2. Chapter 45, Title 12 of the 1976 Code is amended by adding:
"Section 12-45-78. If a homestead exemption is granted pursuant to Section 12-37-250 or a residential classification is made pursuant to Section 12-43-220(c) after payment of the property tax for that year, a resulting overpayment must be refunded to the owner of record at the time the exemption is granted or the classification is made."
SECTION 3. Section 12-37-610 of the 1976 Code, as last amended by Act 431 of 1996, is further amended to read:
"Section 12-37-610. Every Each person is liable to pay taxes and assessments on the real estate which property that, as of December thirty-first of the year preceding the tax year, he owns in fee, for life, or as trustee, as recorded in the public records for deeds of the county in which the property is located, or on the real property that, as of December thirty-first of the year preceding the tax year, he has care of as guardian, executor, or committee or may have the care of as guardian, executor, trustee, or committee."
SECTION 4. Section 12-51-40 of the 1976 Code, as last amended by Act 285 of 1998, is further amended to read:
"Section 12-51-40. After the county treasurer issues his execution against a defaulting taxpayer in his jurisdiction, as provided in Section 12-45-180, signed by him or his agent in his official capacity, directed to the officer authorized to collect delinquent taxes, assessments, penalties, and costs, requiring him to levy the execution by distress and sale of so much of the defaulting taxpayer's estate, real or personal, or both, as may be sufficient or property transferred by the defaulting taxpayer, the value of which generated all or part of the tax, to satisfy the taxes, assessments, penalties, and costs, the officer to which the execution is directed shall:
(a) On April first or as soon thereafter after that as practicable, mail a notice of delinquent property taxes, penalties, assessments, and costs to the current owner defaulting taxpayer and to a grantee of record at of the property, whose value generated all or part of the tax. The notice must be mailed to the best address available, which is either the address shown on the deed conveying the property to him, the property address, or such other corrected or forwarding address that the current owner of record has filed with the appropriate tax authority, of which corrected or forwarding address the officer authorized to collect delinquent taxes, assessments, penalties, and costs has actual knowledge, or to a known grantee of the delinquent taxpayer of the property on which the delinquency exists of which the officer authorized to collect delinquent taxes, penalties, and costs has actual knowledge. The notice must specify that if the taxes, penalties, assessments, and costs are not paid, the property must be advertised and sold to satisfy the delinquency.
(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 current owner of record's property as is necessary to satisfy the payment of the taxes, assessments, penalties, and costs. In the case of real property, exclusive possession is taken by mailing a notice of delinquent property taxes, assessments, penalties, and costs to the current owner defaulting taxpayer and any grantee of record of the property at the address shown on the tax receipt or to an address of which the officer has actual knowledge, by 'certified mail, return receipt requested-restricted delivery' pursuant to the United States Postal Service 'Domestic Mail Manual Section S912'. If the addressee is an entity instead of an individual, the notice must be mailed to its last known post office address by certified mail, return receipt requested, as described in Section S912. 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 an address of which the officer has actual knowledge. All delinquent notices shall specify that if the taxes, assessments, penalties, and costs are not paid 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'.
(c) In the event If the 'certified mail' notice has been returned, take exclusive physical possession of the property against which the taxes, assessments, penalties, and costs were assessed by posting a notice at one or more conspicuous places on the premises, in the case of real estate, reading: 'Seized by person officially charged with the collection of delinquent taxes of (name of political subdivision) to be sold for delinquent taxes', the posting of the notice is equivalent to levying by distress, seizing, and taking exclusive possession thereof of it, or by taking exclusive possession of personalty. In the case of personal property, the person officially charged with the collection of delinquent taxes is not required to move the personal property from where situated at the time of seizure and further, the personal property may not be moved after seized by anyone under penalty of conversion unless delinquent taxes, assessments, penalties, and costs have been paid. Mobile homes are considered to be personal property for the purposes of this section unless the owner gives written notice to the auditor of the mobile home's annexation to the land on which it is situated.
(d) The property must be advertised for sale at public auction. The advertisement must be in a newspaper of general circulation within the county or municipality, if applicable, and must be entitled 'Delinquent Tax Sale'. It shall include the delinquent taxpayer's name and the description of the property, a reference to the county auditor's map-block-parcel number being sufficient for a description of realty. The advertising must be published once a week prior to before the legal sales date for three consecutive weeks for the sale of real property, and two consecutive weeks for the sale of personal property. All expense of the levy, seizure, and sale must be added and collected as additional costs, and shall include, but not be limited to, the expense of taking possession of real or personal property, advertising, storage, identifying the boundaries of the property, and mailing certified notices. When the real property is divisible, the tax assessor, county treasurer, and county auditor shall ascertain that portion of the property that is sufficient to realize a sum upon sale sufficient to satisfy the payment of the taxes, assessments, penalties, and costs. In such cases, the officer shall partition the property and furnish a legal description of it.
(e) As an alternative, upon approval by the county governing body, a county may use the procedures provided in Chapter 56, Title 12 as the initial step in the collection of delinquent taxes on real and personal property.
(f) For the purpose of enforcing payment and collection of property taxes when the true owner is unknown because of the death of the owner of record and the absence of probate administration of the decedent's estate, the property must be advertised and sold in the name of the deceased owner of record."
SECTION 5. Section 12-51-50 of the 1976 Code, as last amended by Act 146 of 1997, is further amended to read:
"Section 12-51-50. The property duly advertised must be sold, by the person officially charged with the collection of delinquent taxes, at public auction at the courthouse or other convenient place within the county, if designated and advertised, on a legal sales date during regular hours for legal tender payable in full by cash, cashier's check, certified check, or money order on the date of the sale. In case If the defaulting taxpayer or the grantee of record of the property has more than one item advertised to be sold, as soon as sufficient funds have been accrued to cover all of the defaulting taxpayer's delinquent taxes, assessments, penalties, and costs, no further items may not be sold."
SECTION 6. Section 12-51-55 of the 1976 Code, as last amended by Act 431 of 1996, is further 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 is not required to bid on property known or reasonably suspected to be contaminated. If the contamination becomes known after the bid or while the commission holds the title, the title is voidable at the election of the commission. 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 first to the taxes becoming due during the redemption period."
SECTION 7. Section 12-51-60 of the 1976 Code, as last amended by Act 285 of 1998, is further amended to read:
"Section 12-51-60. The successful bidder at the delinquent tax sale shall pay legal tender as provided in Section 12-51-50 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. He must 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 mark 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 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 current defaulting taxpayer and the owner of record immediately before the end of the redemption period must be notified in writing by the delinquent tax collector of any excess due. The notice must be addressed and mailed to the current owner of record 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 8. Section 12-51-90 of the 1976 Code, as last amended by Act 332 of 1996, is further amended to read:
"Section 12-51-90. The defaulting taxpayer, any a grantee from the owner defaulting taxpayer, or any mortgage or a mortgagee, a judgment creditor, or a lessee of the property, may within twelve months from the date of the delinquent tax sale may redeem each item of real estate by paying to the person officially charged with the their collection of the delinquent taxes, assessments, penalties, and costs, together with eight percent interest on the whole amount of the delinquent tax sale bid. In the case of If a redemption occurs in the last six months of the redemption period, for all real property except that classified pursuant to Section 12-43-220(c) at the time of the delinquent sale, the applicable rate of interest is twelve percent. If prior to the expiration of the redemption period, the purchaser assigns his interest in any real property purchased at a delinquent tax sale before the expiration of the redemption period, the grantee from the successful bidder shall furnish the person officially charged with the collection of delinquent taxes a conveyance, witnessed and notarized conveyance. The person officially charged with the collection of delinquent taxes shall replace the successful bidder's name and address with the grantee's name and address in the delinquent tax sale book."
SECTION 9. Section 12-51-120 of the 1976 Code, as last amended by Act 431 of 1996, is further amended to read:
"Section 12-51-120. Neither more than forty-five days nor less than twenty days prior to before the end of the redemption period for real estate sold for taxes, the person officially charged with the collection of delinquent taxes shall mail a notice by 'certified mail, return receipt requested-restricted delivery' to the owner of record immediately preceding the end of the redemption period at as provided in Section 12-51-40(b) to the defaulting taxpayer and to a grantee, mortgagee, or lessee of the property of record in the appropriate public records of the county. The notice must be mailed to the best address of the owner available to the person officially charged with the collection of delinquent taxes that the real property described on the notice has been sold for taxes and if not redeemed by paying taxes, assessments, penalties, costs and interest at the applicable rate on the bid price in the total amount of _____ dollars on or before _____ (twelve months from date of sale) (date) __________, a tax title will must be delivered to the successful purchaser at the tax sale. Under Pursuant to this chapter, the return of the certified mail 'undelivered' is not grounds for a tax title to be withheld or be found defective and ordered set aside or canceled of record."
SECTION 10. Section 12-51-130 of the 1976 Code, as last amended by Act 34 of 1997, is further amended to read:
"Section 12-51-130. Upon failure of the defaulting taxpayer, any a grantee from the owner, or any mortgage a mortgagee, or a judgment creditor, or a lessee of the property to redeem realty within the time period allowed for redemption, the person officially charged with the collection of delinquent taxes, shall within thirty days or as soon thereafter after that as possible, shall make a tax title to the purchaser or the purchaser's assignee. Delivery of the tax title to the clerk of court or register of deeds is considered 'putting the purchaser, (or assignee), in possession'. The tax title shall must include, among other things, the name of the defaulting taxpayer, the name of any grantee of record of the property, the date of the execution, the date the realty was posted and by whom, and the dates each certified notice was mailed to the party or parties of interest, to whom mailed and whether or not received by the addressee. The successful purchaser, (or assignee), is responsible in the amount of fifteen dollars for the cost of the tax title plus any documentary stamps necessary to be affixed and recording fees. The successful purchaser, (or assignee), shall pay the amounts to the person officially charged with the collection of delinquent taxes before delivery of the tax title to the clerk of court or register of deeds and, upon payment, the person officially charged with the collection of delinquent taxes is responsible for promptly transmitting the tax title to the clerk of court or register of deeds for recording and remitting the recording fee and documentary stamps cost. In case If the tax sale of an item produced an overage in more cash above than the full amount due in taxes, assessments, penalties, and costs, the overage shall belong belongs to the defaulting taxpayer owner of record immediately before the end of the redemption period to be claimed or assigned according to law. These sums are payable ninety days after execution of the deed unless a judicial action is instituted during that time by another claimant. If neither claimed nor assigned within five years of date of public auction tax sale, the overage shall escheat to the general fund of the governing body. Prior to Before the escheat date unclaimed overages must be kept in a separate account and must be invested so as not to be idle and the governing body of the political subdivision is entitled to the earnings for keeping the overage. On escheat date the overage must be transferred to the general funds of the governing body."
SECTION 11. Article 3, Chapter 49, Title 12 of the 1976 Code is repealed.
SECTION 12. Upon approval by the Governor this act takes effect January 1, 2001.
This web page was last updated on Wednesday, December 9, 2009 at 9:31 A.M.