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AMENDED
April 17, 2002
H. 4386
Introduced by Reps. Witherspoon, Littlejohn, W.D. Smith, Vaughn, Altman, Walker and Knotts
S. Printed 4/17/02--H.
Read the first time January 8, 2002.
REVENUE IMPACT 1/
This bill is expected to decrease general fund revenues by an estimated $86,200 in FY 2003 and $172,400 in FY 2004 because of increased state expenditures for the homestead exemption and decrease general fund revenues by another $44,000 in FY 2003 and $88,000 in FY 2004 because of increased state expenditures for the $100,000 school operations exemption for a total reduction of general fund revenues of $130,200 in FY 2003 and $260,400 in FY 2004. Local property tax revenue would also decrease by an estimated $87,600 in FY 2003 and $175,200 in FY 2004 for homes getting the 4% assessment ratio as opposed to the 6% assessment ratio.
Explanation
If a deceased taxpayer failed to claim the assessment ratio allowed pursuant to Section 12-43-220(c) (the four percent assessment ratio for owner-occupied homes) or the exemption allowed pursuant to Section 12-37-250 (the $50,000 homestead exemption), or both, before the date of the taxpayer's death, then the personal representative of the deceased taxpayer's estate is deemed the agent of the deceased taxpayer for purposes of the applications required pursuant to these sections and any claim for refund arising pursuant to resulting overpayments. We estimate that this would affect no more than 200 people in a given year. Current law allows refunds for the current tax year and the immediate preceding tax year. The average amount of the homestead exemption is $431. The average amount of the $100,000 school operations exemption is $220. Multiplying 200 times $431 times 2 years yields $172,400 of increased state expenditures for the homestead exemption. Multiplying 200 times $220 times 2 years yields $88,000 of increased state expenditures for the $100,000 school operations exemption. If these same 200 people were assessed at 6% instead of 4% they would have overpaid an average of $438 on property taxes. Multiplying 200 times $438 times 2 years yields $175,200 of local property tax revenue that could be refunded.
The original bill applied to property tax years beginning after 2000. The amendment applies to property tax years beginning after 2002. Because of this new date, we estimate that no more than 100 people would be affected by this bill in FY 2003.
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 12-37-252, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REAL PROPERTY ELIGIBLE FOR THE HOMESTEAD EXEMPTION ALLOWED PROPERTY OWNERS SIXTY-FIVE YEARS OF AGE AND OLDER OR PERMANENTLY AND TOTALLY DISABLED, OR LEGALLY BLIND, AND THE ACCOMPANYING FOUR PERCENT ASSESSMENT RATIO APPLICABLE TO SUCH A HOMESTEAD FOR PROPERTY TAX PURPOSES, SO AS TO PROVIDE THAT THE PERSONAL REPRESENTATIVE OF THE ESTATE OF A DECEASED TAXPAYER IS DEEMED THE AGENT OF THE DECEASED TAXPAYER FOR ALL PURPOSES OF APPLYING FOR THE ASSESSMENT RATIO AND EXEMPTION AND ANY CLAIM FOR REFUND ARISING THEREUNDER AND TO ALLOW THESE APPLICATIONS AND CLAIMS FOR REFUND FOR PROPERTY TAX YEARS BEGINNING AFTER 2000.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-252 of the 1976 Code is amended by adding at the end:
"(C) Notwithstanding any other provision of law, if a deceased taxpayer failed to claim the assessment ratio allowed pursuant to Section 12-43-220(c) or the exemption allowed pursuant to Section 12-37-250, or both, before the date of the taxpayer's death, then the personal representative of the deceased taxpayer's estate is deemed the agent of the deceased taxpayer for purposes of the applications required pursuant to these sections and any claim for refund arising pursuant to resulting overpayments. The timeliness of the filing by a personal representative of applications or claims for refund under this subsection and the property tax years to which they apply are determined by those property tax years open to the deceased taxpayer immediately before the taxpayer's death."
SECTION 2. This act takes effect upon approval by the Governor and applies for property tax years beginning after 2000. The deadline for filing an application for the four percent assessment ratio and the homestead exemption, or both, and any claims for refund arising thereunder, for property tax year 2001 is extended through the sixtieth day following the approval of this act by the Governor.
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