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COMMITTEE REPORT
March 7, 2001
H. 3227
S. Printed 3/7/01--S.
Read the first time February 6, 2001.
To whom was referred a Bill (H. 3227) to amend Section 12-37-220, as amended, Code of Laws of South Carolina, 1976, relating to property tax exemptions, so as to exempt the dwelling home, 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 the unnumbered item in Section 12-37-220(B) as contained in SECTION 1, page 1, and inserting:
/ "( ) The dwelling home and a lot not to exceed one acre of land owned in fee or for life or jointly with a spouse by a resident of this State who is a recipient of the Medal of Honor or who was a prisoner of war in World War I, World War II, the Korean Conflict, or the Vietnam Conflict. The exemption is allowed to the surviving spouse under the same terms and conditions governing the exemption for surviving spouses pursuant to item (1) of this subsection. A person applying for this exemption must provide the evidence of eligibility the department requires." /
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR., for Committee.
REVENUE IMPACT1
This bill would have no impact on state revenue collections. Local revenues would decrease by an estimated $106,500 in FY 2001-2002 if local governments do not adjust millage to make up the lost revenue.
Explanation
This bill would exempt the homes of former prisoners of war and Medal of Honor recipients from property taxes. Data from the Department of Revenue and the Department of Public Safely show that roughly 200 POWs and Medal of Honor recipients receive the property tax exemption for their personal automobiles. If these 200 POWs and Medal of Honor recipients received this exemption for their homes, it is estimated to cost local governments $106,500 in property tax revenue. These POWs and Medal of Honor recipients, as well as all South Carolinians, already receive the $100,000 property tax exemption on their homes for the school operating portion of their tax bill. Most of these POWs and Medal of Honor recipients would also receive the $50,000 homestead exemption on their home as well. Estimating that half of these 200 POWs and Medal of Honor recipients already receive the homestead exemption would mean that the state is already reimbursing the local governments $56,700 for these people's homes. These calculations are based on a median home price of $96,000. If no exemptions existed, it is estimated that these 200 POWs and Medal of Honor recipients would pay $218,000 in home property taxes. However, they already get an estimated $54,600 in property tax relief for the $100,000 property tax exemption on their homes for the school operating portion of their tax bill. They also get another estimated $56,700 for the $50,000 homestead exemption. The net loss to local governments would be $106,500 if local governments do not adjust millage to make up the lost revenue.
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 EXEMPT THE DWELLING HOME AND LOT OF A FORMER PRISONER OF WAR OR MEDAL OF HONOR WINNER AND TO PROVIDE THE CONDITIONS UNDER WHICH THE EXEMPTION CONTINUES FOR A SURVIVING SPOUSE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-220(B) of the 1976 Code, as last amended by Act 387 of 2000, is further amended by adding an appropriately numbered item at the end to read:
"( ) The dwelling home and a lot not to exceed one acre of land owned in fee or for life or jointly with a spouse by a resident of this State who is a recipient of the Medal of Honor or who was a prisoner of war in World War I, World War II, the Korean Conflict, or the Vietnam Conflict. The exemption is allowed to the surviving spouse under the same terms and conditions governing the exemption for surviving spouses pursuant to item (1) of this subsection."
SECTION 2. Upon approval by the Governor, this act is effective for property tax years beginning after 2001.
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