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COMMITTEE REPORT
February 16, 1999
S. 317
S. Printed 2/16/99--S.
Read the first time January 14, 1999.
To whom was referred a Bill (S. 317), to amend Section 12-37-220, as amended, Code of Laws of South Carolina, 1976, relating to property tax exemptions, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass with amendment:
Amend the bill, as and if amended, page 2, by striking SECTION 2 and inserting:
/ SECTION 2. Upon approval by the Governor, this act applies for property tax years beginning after 1997. /
Amend title to conform.
JOHN DRUMMOND, for Committee.
REVENUE IMPACT 1
This bill would have no impact on state revenue and would have a minimal impact on local revenue. This bill would reduce total property tax revenues by a minimal $300,000 statewide in FY 1999-00. This bill has a potential to change the incidence of local property taxes among classes of property as follows:
Category ($ Thousands) FY 99-00
Agriculture 4
Utility 45
Personal Property 72
Manufacturing 65
Business Personal 20
Owner Occupied 94
Commercial/Rental (300)
Explanation
Currently if a church purchases or acquires property during the tax year, the church is responsible for a prorated share of the property tax accrued from the date of purchase. The church is exempt from property taxes in the following tax year. This bill would make the exemption effective immediately at the date of acquisition. This bill would result in a minimal reduction of property tax revenue and a potential change in the incidence of local property tax as shown above.
Approved By:
William C. Gillespie
Board of Economic Advisors
1 This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PROVIDE FOR THE PAYMENT OF ACCRUED PROPERTY TAXES ON REAL PROPERTY TRANSFERRED TO A CHURCH IF THAT PROPERTY IS EXEMPT WHEN OWNED BY THE CHURCH, TO PROVIDE FOR THE PROPERTY'S EXEMPTION IMMEDIATELY UPON TRANSFER TO THE CHURCH, TO PROVIDE FOR THE CESSATION OF TRANSFEROR LIABILITY FOR THE TAX WHEN THE TRANSFER OCCURS, TO PROVIDE THE METHOD OF DETERMINING MILLAGE AND THE DUE DATE FOR THE ACCRUED TAXES, AND TO PROVIDE A LIEN FOR THE COLLECTION OF THE ACCRUED TAX.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. Items (3) and (4) of Section 12-37-220(A) of the 1976 Code are amended to read:
"(3) all property of all public libraries, churches, parsonages, and burying grounds, but this exemption for real property does not extend beyond the buildings and premises actually occupied by the owners of the real property;
(4) all property of all charitable trusts and foundations used exclusively for charitable and public purposes, but this exemption for real property does not extend beyond the buildings and premises actually occupied by the owners of the real property;"
B. Section 12-37-220(A) of the 1976 Code is amended by deleting the last paragraph, which reads:
"The exemptions provided in items (3) and (4) for real property shall not extend beyond the buildings and premises actually occupied by the owners of such real property."
C. That portion of Section 12-37-220(B) of the 1976 Code which precedes item (1) is amended to read:
"In addition to the exemptions provided in subsection (A), the following classes of property shall be are exempt from ad valorem taxation subject to the provisions of Section 12-3-145 12-4-720:"
D. Section 12-37-220 of the 1976 Code is amended by adding an appropriately lettered subsection at the end to read:
"( ) If a church acquires ownership of real property which will be exempt under this section when owned by the church, the transferor's liability for property taxes on the property ceases on the church acquiring the property, and any exemptions provided in this section then apply, subject to the requirements of Section 12-4-720. The property taxes accruing up to the date of the acquisition by the church, if any, must be paid to the county where the property is located within thirty days of the acquisition date. If the millage has not yet been set for the year when the acquisition occurs, the county auditor shall apply the previous year's millage in determining any taxes owed. If the millage has been determined, the auditor shall apply the current year's millage in determining any taxes owed. All taxes, assessments, penalties, and interest on the property acquired by a church are a first lien on the property taxed, the lien attaching December 31 of the year immediately preceding the calendar year during which the tax is levied."
SECTION 2. This act takes effect upon approval by the Governor.
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