Download This Bill in Microsoft Word format
A238, R238, S490
Sponsors: Senator Land
Document Path: l:\council\bills\dka\3190dw05.doc
Introduced in the Senate on February 15, 2005
Introduced in the House on March 15, 2005
Last Amended on February 15, 2006
Passed by the General Assembly on February 21, 2006
Governor's Action: March 15, 2006, Signed
Summary: Collection of delinquent ad valorem property tax by municipalities
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/15/2005 Senate Introduced and read first time SJ-5 2/15/2005 Senate Referred to Committee on Finance SJ-5 3/9/2005 Senate Committee report: Favorable Finance SJ-24 3/10/2005 Senate Read second time SJ-19 3/10/2005 Scrivener's error corrected 3/15/2005 Senate Read third time and sent to House SJ-19 3/15/2005 House Introduced and read first time HJ-106 3/15/2005 House Referred to Committee on Ways and Means HJ-106 5/26/2005 House Recalled from Committee on Ways and Means HJ-45 6/1/2005 House Requests for debate-Rep(s). Sandifer, Tripp, Loftis, GR Smith, Whitmire, J Brown, Clemmons, and Kirsh HJ-22 1/11/2006 House Debate adjourned until Tuesday, January 24, 2006 HJ-24 1/24/2006 House Debate adjourned until Wednesday, January 25, 2006 HJ-24 1/25/2006 House Debate adjourned until Tuesday, January 31, 2006 HJ-43 1/31/2006 House Amended HJ-25 1/31/2006 House Read second time HJ-27 1/31/2006 House Roll call Yeas-102 Nays-6 HJ-27 2/1/2006 House Reconsider vote whereby read second time HJ-48 2/1/2006 House Amended HJ-52 2/1/2006 House Read second time HJ-56 2/1/2006 House Roll call Yeas-100 Nays-7 HJ-56 2/1/2006 Scrivener's error corrected 2/2/2006 House Debate adjourned until Tuesday, February 7, 2006 HJ-37 2/9/2006 House Amended HJ-29 2/9/2006 House Read third time and returned to Senate with amendments HJ-31 2/15/2006 Senate House amendment amended SJ-38 2/15/2006 Senate Returned to House with amendments SJ-38 2/16/2006 Scrivener's error corrected 2/21/2006 House Concurred in Senate amendment and enrolled HJ-123 3/14/2006 Ratified R 238 3/15/2006 Signed By Governor 3/21/2006 Copies available 3/21/2006 Effective date 03/15/06 4/5/2006 Act No. 238
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
(A238, R238, S490)
AN ACT TO AMEND SECTION 5-7-300, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE COLLECTION OF DELINQUENT AD VALOREM PROPERTY TAX BY A MUNICIPALITY, SO AS TO MAKE THE LIEN FOR MUNICIPAL TAXES IN A MUNICIPALITY WHICH SEPARATELY COLLECTS PROPERTY TAX A FIRST LIEN ON THE PROPERTY CONTINUING UNTIL THE DEBT IS DISCHARGED IN FULL; TO AMEND SECTION 12-51-130, AS AMENDED, RELATING TO THE EXECUTION AND DELIVERY OF A TAX TITLE, SO AS TO PROVIDE THAT, IF THE TAX SALE OF AN ITEM PRODUCES MORE CASH THAN THE FULL AMOUNT DUE, THE OVERAGE MUST BE APPLIED TO ANY OUTSTANDING MUNICIPAL TAX LIENS ON THE PROPERTY; TO AMEND SECTION 12-51-90, AS AMENDED, RELATING TO REDEMPTION OF REAL PROPERTY FOLLOWING ITS SALE FOR DELINQUENT TAXES, SO AS TO PROVIDE THAT THE TAX DEED IS INCONTESTABLE TWELVE MONTHS AFTER ISSUE; TO AMEND SECTION 12-51-160, RELATING TO TAX DEEDS, SO AS TO CONFORM THE TIME AFTER WHICH THE DEED IS INCONTESTABLE TO THE TIME PROVIDED IN THE AMENDMENT TO SECTION 12-51-90 CONTAINED IN THIS ACT; AND BY ADDING ARTICLE 9 TO CHAPTER 49 OF TITLE 12 SO AS TO PROVIDE THE RIGHTS OF REAL PROPERTY MORTGAGES IN THE ENFORCED COLLECTION OF PROPERTY TAXES ON THE MORTGAGED REAL PROPERTY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 5-7-300(A) of the 1976 Code is amended to read:
"(A) All municipalities of the State may provide by ordinance a procedure for the collection of delinquent real and personal property taxes, except taxes on motor vehicles. The municipal governing body may provide for a penalty not exceeding fifteen percent of the taxes levied for nonpayment of these taxes payable when the taxes become delinquent. The property taxes levied, with any penalty added for nonpayment when due and costs of execution, are a lien upon the property upon which the tax is levied until paid. The lien is paramount to all other liens except the lien for county and state taxes. Payment of a lien for state or county taxes, without payment of a lien for municipal taxes, does not extinguish a lien for municipal taxes. For those municipalities that, as of the effective date of this sentence collect their delinquent municipal taxes without an agreement as to collection with a county, such payment makes the municipal lien a first lien on the property which shall continue in full force and effect until legally discharged."
Application of tax sale proceeds
SECTION 2. Section 12-51-130 of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"Section 12-51-130. Upon failure of the defaulting taxpayer, a grantee from the owner, a mortgagee, a judgment creditor, or a lessee of the property to redeem realty within the time period allowed for redemption, the person officially charged with the collection of delinquent taxes, within thirty days or as soon after that as possible, shall make a tax title to the purchaser or the purchaser's assignee. Delivery of the tax title to the clerk of court or register of deeds is considered 'putting the purchaser, or assignee, in possession'. The tax title must include, among other things, the name of the defaulting taxpayer, the name of any grantee of record of the property, the date of execution, the date the realty was posted and by whom, and the dates each certified notice was mailed to the party or parties of interest, to whom mailed and whether or not received by the addressee. The successful purchaser, or assignee, is responsible in the amount of fifteen dollars for the cost of the tax title plus documentary stamps necessary to be affixed and recording fees. The successful purchaser, or assignee, shall pay the amounts to the person officially charged with the collection of delinquent taxes before delivery of the tax title to the clerk of court or register of deeds and, upon payment, the person officially charged with the collection of delinquent taxes is responsible for promptly transmitting the tax title to the clerk of court or register of deeds for recording and remitting the recording fee and documentary stamps cost. If the tax sale of an item produced more cash than the full amount due in taxes, assessments, penalties, and costs, the overage must be applied to any outstanding municipal tax liens on the property. Any remaining overage belongs to the owner of record immediately before the end of the redemption period to be claimed or assigned according to law. These sums are payable ninety days after execution of the deed unless a judicial action is instituted during that time by another claimant. If neither claimed nor assigned within five years of date of public auction tax sale, the overage shall escheat to the general fund of the governing body. Before the escheat date unclaimed overages must be kept in a separate account and must be invested so as not to be idle and the governing body of the political subdivision is entitled to the earnings for keeping the overage. On escheat date the overage must be transferred to the general funds of the governing body."
Tax deeds, time after which incontestable
SECTION 3. A. Section 12-51-90 of the 1976 Code, as last amended by Act 89 of 2001, is further amended by adding at the end:
"(C) If the defaulting taxpayer, grantee from the owner, or mortgage or judgment creditor fails to redeem the item of real estate sold at the delinquent tax sale within the twelve months provided in subsection (A) and after the passing of an additional twelve months, the tax deed issued is incontestable on procedural or other grounds."
B. Section 12-51-160 of the 1976 Code is amended to read:
"Section 12-51-160. In all cases of tax sale the deed of conveyance, whether executed to a private person, a corporation, or a forfeited land commission, is prima facie evidence of a good title in the holder, that all proceedings have been regular and that all legal requirements have been complied with. An action for the recovery of land sold pursuant to this chapter or for the recovery of the possession must not be maintained unless brought within two years from the date of sale as provided in Section 12-51-90(C)."
Rights of real property mortgages in enforced collection
SECTION 4. Chapter 49, Title 12 of the 1976 Code is amended by adding:
Section 12-49-1110. As used in this article:
(1) 'Mortgage' means a mortgage, deed of trust, or other written instrument covering or affecting real property as security for the payment of money.
(2) 'Mortgagee' means the mortgagee identified in a mortgage of record or any holder or assignee of the mortgage.
(3) 'Mortgagee list' means a written list, including all supplements, that a mortgagee provides to a tax collector pursuant to this article, showing the current name and address of the mortgagee/holder of the mortgages listed thereon within a county of this State.
(4) 'Tax collector' means the officer charged by law with the collection of delinquent ad valorem taxes, assessments, penalties, and costs.
(5) 'The most current' means the latest in time.
Section 12-49-1120. When real property is levied upon for taxes by the tax collector, the tax collector shall give at least forty-five days' written notice prior to the sale of the real property to a mortgagee contained on the mortgagee list filed with the tax collector as provided in Section 12-49-1150. The period of forty-five days shall begin to run from the time the notice is personally delivered or from the date of its mailing when delivered by certified mail as provided in this article. The notice must contain a description of the real property levied upon, including the tax map number assigned by the county, the name of the owner, the year or years for which the taxes were assessed, and a statement of the amount of the taxes with the accrued costs. The notice must be delivered to the mortgagees either personally or by certified mail with return receipt requested at the address(es) shown on the most current mortgagee list for a particular mortgagee. If delivered personally, the tax collector shall obtain a signed receipt from the mortgagee. Although a separate notice must be prepared for each parcel of real property to be sold, a tax collector may enclose in the same package or envelope multiple notices to be given to the same mortgagee at the same address.
Section 12-49-1130. The form of notice required pursuant to Section 12-49-1120 must be substantially as follows:
Notice to Holder of Mortgage
Notice is given to ____________________ as the holder of a certain mortgage recorded in the office of the_____________ in Book _______ at Page _______, of the County of __________, State of South Carolina, that there are now due and unpaid taxes for the year 20___ amounting to $__________, with accrued cost of $__________, for which a tax execution has been issued and levy made upon the following described real property owned by ____________________ and embraced within the mortgage, and that the real property will be sold unless such taxes are paid within forty-five (45) days from the delivery of this notice as provided by law.
Description of the Real Property Levied Upon
Tax Map No. ________________________________
Section 12-49-1140. The tax collector shall keep a record of each notice given under Section 12-49-1120 that contains the date the notice was delivered, the method of delivery, the address where the notice was delivered, and the name of the addressee of the notice.
Section 12-49-1150. To entitle a mortgagee to the notice required by Section 12-49-1120, a list of each mortgage located in the county as to which the notice is desired must be filed by the mortgagee with the tax collector of the county in which the real property covered by a mortgage lies on or before the fifteenth day of March of each year, on which must be shown the name and address of the mortgagee, the name of each mortgagor, and the book and page of the record where each mortgage listed is recorded.
Section 12-49-1160. The form of the mortgagee list for real property must be substantially as follows:
Mortgagee List For __________________________ County
Address for Notice: __________________________
Name of Owner(s) Tax Map Book Page
or Mortgagor(s) Number of Record Number
Section 12-49-1170. The mortgagee list may be provided to the tax collector through any medium acceptable to the sender and the receiver. This medium may include, but not be limited to: United States mail, hand delivery, express delivery, or e-mail. The sender shall maintain sufficient proof that the mortgagee list and any supplement were provided to the tax collector.
Section 12-49-1180. (A) The rights, interest, and security of a mortgagee complying with the provisions of Section 12-49-1150 are not affected by a tax sale and a deed of conveyance, unless the provisions of Section 12-49-1120 are complied with.
(B) Except as specifically provided in this article, the rights and remedies of a mortgagee granted elsewhere in this title are not affected by whether or not the mortgagee provides a mortgagee list of real property pursuant to Section 12-49-1150."
SECTION 5. This act takes effect upon approval by the Governor.
Ratified the 14th day of March, 2006.
Approved the 15th day of March, 2006.
This web page was last updated on Friday, December 4, 2009 at 3:29 P.M.