South Carolina General Assembly
116th Session, 2005-2006

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A149, R167, S589

STATUS INFORMATION

General Bill
Sponsors: Senators McConnell, Drummond, Rankin, Land, McGill, Thomas, Moore, Fair, Ryberg, Setzler, Peeler, Reese and Verdin
Document Path: l:\s-jud\bills\mcconnell\jud0067.gfm.doc

Introduced in the Senate on March 3, 2005
Introduced in the House on April 6, 2005
Last Amended on May 26, 2005
Passed by the General Assembly on June 1, 2005
Became law without Governor's signature, June 9, 2005

Summary: Golf course real property

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
    3/3/2005  Senate  Introduced and read first time SJ-18
    3/3/2005  Senate  Referred to Committee on Finance SJ-18
   3/30/2005  Senate  Committee report: Favorable with amendment Finance SJ-19
   3/31/2005  Senate  Amended SJ-28
   3/31/2005  Senate  Read second time SJ-28
   3/31/2005          Scrivener's error corrected
    4/5/2005  Senate  Read third time and sent to House SJ-14
    4/6/2005  House   Introduced and read first time HJ-14
    4/6/2005  House   Referred to Committee on Ways and Means HJ-15
   5/11/2005  House   Committee report: Favorable with amendment Ways and 
                        Means HJ-16
   5/18/2005  House   Debate adjourned until Thursday, May 19, 2005 HJ-66
   5/19/2005  House   Debate adjourned HJ-40
   5/19/2005  House   Debate adjourned until Tuesday, May 24, 2005 HJ-71
   5/24/2005  House   Debate adjourned until Wednesday, May 25, 2005 HJ-20
   5/25/2005  House   Amended HJ-30
   5/25/2005  House   Read second time HJ-77
   5/26/2005  House   Read third time and returned to Senate with amendments 
                        HJ-8
   5/26/2005  Senate  House amendment amended SJ-345
   5/26/2005  Senate  Returned to House with amendments SJ-345
   5/27/2005          Scrivener's error corrected
   5/31/2005          Scrivener's error corrected
    6/1/2005  House   Concurred in Senate amendment and enrolled HJ-42
    6/2/2005          Ratified R 167
    6/9/2005          Became law without Governor's signature
   6/14/2005          Copies available
   6/14/2005          Effective date See Act for Effective Date
   6/16/2005          Act No. 149

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/3/2005
3/30/2005
3/31/2005
3/31/2005-A
5/11/2005
5/25/2005
5/26/2005
5/27/2005
5/31/2005


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A149, R167, S589)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-43-365 SO AS TO PROVIDE THAT THE VALUE OF TANGIBLE AND INTANGIBLE PERSONAL PROPERTY AND ANY INCOME DERIVED THEREFROM, WHETHER DIRECTLY OR INDIRECTLY, MUST NOT BE INCLUDED IN THE DETERMINATION OF FAIR MARKET VALUE OF GOLF COURSE REAL PROPERTY FOR AD VALOREM TAX PURPOSES, TO PROVIDE A DEFINITION FOR "INTANGIBLE PERSONAL PROPERTY" AND TO PROVIDE FOR INCOME AND EXPENSE REPORTING BY GOLF COURSE OWNERS WHEN GOLF COURSES ARE VALUED FOR AD VALOREM TAX PURPOSES USING THE CAPITALIZED INCOME APPROACH.

Be it enacted by the General Assembly of the State of South Carolina:

Findings

SECTION    1.        The General Assembly finds that:

(1)    The golf industry contributes significantly to the economic well-being of this State, particularly in the tourism sector of its economy, and brings with it a much needed infusion of capital and employment, as well as property tax revenues into local governments.

(2)    Real and personal property for golf courses is taxable as provided in Article X, Section 1 of the Constitution of South Carolina, 1895.

(3)    Pursuant to Article X, Section 2 of the South Carolina Constitution, the General Assembly may prescribe the methods of assessment of property for ad valorem taxation.

(4)    Section 12-37-220(A)(10) of the 1976 Code provides that pursuant to Article X, Section 3 of the State Constitution, and subject to Section 12-4-720, "intangible personal property" is exempt from ad valorem taxation.

(5)    In arriving at a fair market value determination for golf course real property, the Administrative Law Court in Sea Pines Plantation Co., Inc. v. Beaufort Co., 01-ALJ-17-0018-CC, S.C. A.L.J.D. 2002, and The Ocean Course v. Charleston County Assessor, 03-ALJ17-0471-CC, S.C. A.L.C. 2005, clearly states that personal property and the income derived therefrom must be excluded from real estate valuation for ad valorem tax purposes, as in the case of Minnetonka Country Club Association v. County of Hennepin, 1989 Minn. Tax LEXIS 44 (Minn. Tax Ct. April 7, 1989).

(6)    The inclusion of personal property and any income derived therefrom in the valuation of golf course real property for ad valorem tax purposes results in double taxation.

(7)    Current valuation methods utilized by some assessing entities in South Carolina result in the inclusion of personal property and the income derived therefrom in the valuation of golf course real property for ad valorem tax purposes.

(8)    The inclusion of personal property and the income derived therefrom in the valuation of golf course real property for ad valorem tax purposes has been a recurring matter of dispute between golf course owners and assessing entities and has resulted in numerous appeals and increased litigation costs for both the public and private sector.

(9)    It is desirable to promote uniformity among the counties and within the industry in the valuation of golf course real property for ad valorem tax purposes.

(10)    It is desirable to prevent double taxation in the valuation of personal property.

(11)    It is desirable to prevent duplicative litigation.

(12)    In order to address these concerns, it is necessary to enact this legislation to clearly state that it is the law of South Carolina that the value of certain personal property, and the income derived therefrom, whether directly or indirectly, is to be excluded from the valuation of golf course real property.

Property tax, golf course valuation

SECTION    2.    Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:

"Section 12-43-365.    (A)    The value of tangible personal property and intangible personal property and any income or expense derived from such property, whether directly or indirectly, must not be included in the determination of fair market value of golf course real property for ad valorem tax purposes.

(B)    For purposes of this section 'intangible personal property' has the same meaning as 'intangible personal property' as contained in Article X, Section 3(j) of the Constitution of this State.

(C)    If the fair market value of golf course real property for ad valorem tax purposes is determined pursuant to the capitalized income approach, the taxpayer shall provide income and expense data for the entire golf course operation, golf cart rentals, food and beverage services, and pro shop sales on a form designed by the county assessors and golf course owners and approved by the South Carolina Department of Revenue. Any data provided by the taxpayer for this purpose is not public data and may not be disclosed except in the process of a formal appeal involving the subject real property."

Time effective

SECTION    3.    This act takes effect upon approval by the Governor and the provisions of Section 12-43-365 of the 1976 Code as added by this act apply for the valuation of golf courses for purposes of property tax as golf courses are valued in countywide assessment and equalization programs implemented after 2005.

Ratified the 2nd day of June, 2005.

Became law without the signature of the Governor -- 6/9/05.

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