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COMMITTEE REPORT
February 19, 2003
S. 45
S. Printed 2/19/03--S.
Read the first time January 14, 2003.
To whom was referred a Bill (S. 45) to amend Section 12-37-2725, Code of Laws of South Carolina, 1976, relating to the cancellation of a motor vehicle license plate and registration for a refund, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, SR. for Committee.
REVENUE IMPACT 1/
This bill is not expected to have any impact on state revenues. The impact on local revenues, if any, would be negligible.
Explanation
This bill adds language that allows the lessee of a vehicle to receive a credit or refund on property taxes paid when they assign the lease or surrender the leased vehicle to the lessor. Based on
conversations with leasing companies and county auditors across the state, these taxpayers already receive credits or refunds on property taxes paid when the leased vehicle is surrendered to the lessor. This bill would clarify what is already a common administrative practice and would therefore have no impact on state revenues. The impact on local revenues, if any, would be negligible.
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 12-37-2725, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CANCELLATION OF A MOTOR VEHICLE LICENSE PLATE AND REGISTRATION FOR A REFUND OR CREDIT OF PROPERTY TAXES PAID ON THE VEHICLE TO ANOTHER, SO AS TO PROVIDE THAT THE LESSEE OF A MOTOR VEHICLE WHO ASSIGNS THE LEASE OR SURRENDERS THE LEASED VEHICLE TO THE LESSOR IS ELIGIBLE FOR A CREDIT OR REFUND ON PROPERTY TAXES PAID IF THE TERMS OF THE LEASE MADE THE LESSEE PRIMARILY LIABLE FOR THE PROPERTY TAX AND THE LESSEE IN FACT PAID THE TAX.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-2725 of the 1976 Code is amended to read:
"Section 12-37-2725. When (a) the title to a licensed vehicle is transferred, or, (b) the owner of the vehicle becomes a legal resident of another state and registers the vehicle in the new state of residence, or, (c) the lessee of a licensed vehicle assigns the lease or surrenders the leased vehicle to the lessor and under the terms of the lease the lessee was primarily liable for property taxes on the vehicle and the lessee in fact paid these taxes, the license plate and registration certificate may be returned for cancellation. The license plate and registration certificate must be delivered to the auditor of the county of the vehicle's registration and tax payment. A request for cancellation must be made in writing to the auditor upon forms approved by the Department of Public Safety. The auditor, upon receipt of the license plate, registration certificate, and the request for cancellation, shall order and the treasurer shall issue a credit or refund of property taxes paid by the transferor on the vehicle. The amount of the refund or credit is that proportion of the tax paid that is equal to that proportion of the complete months remaining in that tax year. The auditor, within five days thereafter, shall deliver the license plate, registration certificate, and the written request for cancellation to the Department of Public Safety. Upon receipt, the Department of Public Safety shall cancel the license plate and registration certificate and may not reissue the same."
SECTION 2. This act takes effect on the first day of the first month following approval by the Governor.
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