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COMMITTEE REPORT
May 2, 2002
S. 1005
Introduced by Senators J. Verne Smith, Ryberg, Ravenel, Peeler, Grooms, Thomas, Giese, Ritchie, Anderson, Branton, Courson, Alexander, Fair, Mescher, Martin, Hawkins, Hayes, Kuhn, Leatherman, O'Dell, Bauer, Drummond, Elliott, Ford, Glover, Gregory, Holland, Hutto, Jackson, Land, Leventis, Matthews, McConnell, McGill, Moore, Patterson, Pinckney, Rankin, Reese, Richardson, Saleeby, Setzler, Short, Verdin and Waldrep
S. Printed 5/2/02--H. [SEC 5/6/02 11:18 AM]
Read the first time April 2, 2002.
To whom was referred a Bill (S. 1005) to amend Section 12-60-2510, as amended, Code of Laws of South Carolina, 1976, relating to property tax assessment notices issued by county assessors, 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, by striking SECTION 1 and inserting:
/ SECTION 1. Items (1) and (3) of Section 12-60-2510(A), as last amended by Act 283 of 2000, are further amended to read:
"(1) In the case of property tax assessments made by the county assessor, whenever the assessor increases the fair market value or special use value in making a property tax assessment by one thousand dollars or more, or whenever the first property tax assessment is made on the property by a county assessor, the assessor, by July first in the year in which the property tax assessment is made, or as soon after as is practical, shall send the taxpayer a property tax assessment notice. In years when real property is appraised and assessed under a county countywide
equalization program, substantially all property tax assessment notices must be mailed by February October first of the implementation year. In these reassessment years, if substantially all of the tax assessment notices are not mailed by February October first, the prior year's property tax assessment must be the basis for all property tax assessments for the current tax year. A property tax assessment notice under this subsection must be in writing and must include:
(a) the fair market value;
(b) value as limited by Section 12-37-223A, if applicable;
(c) the special use value, if applicable;
(d) the assessment ratio;
(e) the property tax assessment;
(f) the number of acres or lots;
(g) the location of the property;
(h) the tax map number; and
(i) the appeal procedure.
(3) In years when there is a notice of property tax assessment, the property taxpayer must, within thirty ninety days after the assessor mails the property tax assessment notice, must give the assessor written notice of objection to one or more of the following: the fair market value, the special use value, the assessment ratio, and the property tax assessment." /
Amend title to conform
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT 1/
This bill is not expected to have any impact on state revenues. Local property tax revenue would be reduced because of refunds given on accepted appeals. Local governments would have to refund over $16,500,000 in property taxes for one year. This figure could double to $33,000,000 if the refunds had to cover a two year period.
Explanation
Under current law, taxpayers have 30 days from the date of the property tax assessment notice to appeal the fair market value, the special use value, the assessment ratio, and the property tax assessment. This bill would allow an appeal to occur up to two years after the property taxes had been paid. The taxpayer could receive a refund of property taxes for up to two years back. In many cases this refund would be on money that the local government had already spent in prior years. This does not mean that the claims for refunds by the taxpayer are not valid. However, many of the refunds could be coming out of the current year budget to pay refunds on taxes paid up to two years earlier. Based on conversations with assessors throughout the state, there will be additional refunds as a result of this bill, but it is difficult to estimate how many people will file appeals or how many of these appeals would result in reduced values. In a typical reassessment cycle, about 5% - 10% of the people file appeals. It is reasonable to expect that at least one-half of one percent of the property tax base will be reduced because of these additional appeals. Therefore, we estimate, the property tax base will be reduced $16,500,000 for one year. This figure could double to $33,000,000 if the refunds had to cover a two year period.
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 12-60-2510, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX ASSESSMENT NOTICES ISSUED BY COUNTY ASSESSORS AND THE TIME ALLOWED FOR APPEALS OF THE VALUES PROVIDED IN THESE NOTICES, SO AS TO PROVIDE THAT A NOTICE OF OBJECTION TO A PROPOSED VALUE IN A PROPERTY TAX ASSESSMENT NOTICE MAY BE TIMELY FILED AT ANY TIME AND THIS NOTICE OF OBJECTION APPLIES FOR ALL OPEN PROPERTY TAX YEARS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Items (3) and (4) of Section 12-60-2510 of the 1976 Code are amended to read:
"(3) In years when there is a notice of property tax assessment, The property taxpayer must, within thirty days after the assessor mails the property tax assessment notice, may give the assessor written notice of objection to one or more of the following: the fair market value, the special use value, the assessment ratio, and the property tax assessment and that notice of objection applies to all property tax years open pursuant to Section 12-54-85(D).
(4) In years when there is no notice of property tax assessment, the property taxpayer must, by March first, give the assessor written notice of objection to one or more of the following: the fair market value, the special use value, the assessment ratio, and the property tax assessment. The failure to serve written notice of objection by March first is a waiver of the taxpayer's right of protest for that tax year, and the assessor may not review any request filed after March first. RESERVED"
SECTION 2. This act takes effect upon approval by the Governor.
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