Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 26, 2000
H. 4852
Introduced by Reps. Neilson, Frye, Gamble, J. Hines, M. Hines, Hosey, Howard, Kelley, Lucas, Scott, Stuart, W. McLeod, Rhoad, Knotts and Whatley
S. Printed 4/26/00--H.
Read the first time March 30, 2000.
REVENUE IMPACT
Section 1 would increase state expenditures for the homestead exemption currently given to taxpayers 65 and over or those totally and permanently disabled or legally blind by $1,250,000 in FY 2001. Expenditures on the $100,000 property tax exemption from property taxes levied for school operations would decrease by $509,656 in FY 2001. The net expenditure increase would amount to $740,343 in FY 2001.
Section 2 would have no impact on state revenues. It would reduce local government revenue by an estimated $31,000,000. Local governments could either absorb this reduction or raise millage and shift this reduction to the other classes of property.
Section 3 would increase state expenditures for the homestead exemption by $6,275,000 in FY 2001. Expenditures on the $100,000 property tax exemption would decrease by $2,510,000 in FY 2001. The net expenditure increase would amount to $3,765,000 in FY 2001.
Explanation
Under current law taxpayers sixty-five and over or those totally and permanently disabled or legally blind receive an exemption of $20,000 off of the fair market value of their home for property tax purposes. The state currently allocates approximately $54 million to fund this exemption.
Section 1 will annually raise the homestead exemption amount by the percentage increase in the prior year's consumer price index for the southeast region. The five year compound growth rate of the consumer price index for the southeast region is 2.3%. Raising the homestead exemption by 2.3% would increase the exemption amount from $20,000 to $20,460 in the first year.
Section 2 exempts any otherwise nonexempt assessed value of a homestead receiving both the $20,000 homestead exemption for persons 65+ and the $100,000 school operations exemption if the household income of the taxpayer eligible for the $20,000 homestead exemption is less than 200% of the federal poverty level. In other words, if you receive the $20,000 homestead exemption and your income is less than 200% of poverty, you would not pay any property taxes on your home.
Section 3 allows you to claim the $20,000 homestead exemption if you have attained the age of 65 or have been classified as totally and permanently disabled, or legally blind before or during the tax year for which the exemption is claimed.
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 12-37-250, AS AMENDED, CODE OF LAWS OF 1976, RELATING TO THE ANNUAL HOMESTEAD EXEMPTION FOR TAXPAYERS SIXTY-FIVE AND OVER OR THOSE WHO ARE TOTALLY AND PERMANENTLY DISABLED OR LEGALLY BLIND, SO AS TO PROVIDE THAT THE DOLLAR AMOUNT OF THE HOMESTEAD EXEMPTION SHALL BE ADJUSTED ANNUALLY BEGINNING IN 2000 BY THE COMPTROLLER GENERAL TO REFLECT ANY PERCENTAGE INCREASE IN THE PRIOR YEAR'S CONSUMER PRICE INDEX FOR THE SOUTHEAST REGION AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-250 of the 1976 Code, as last amended by Act 107 of 1997, is further amended by adding a new paragraph at the end:
"The dollar amount of the homestead exemption provided for herein shall be adjusted annually beginning in 2000 by the Comptroller General to reflect any percentage increase in the prior year's consumer price index for the southeast region as published by the United States Department of Labor."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on Friday, June 26, 2009 at 3:07 P.M.