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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-225 SO AS TO EXEMPT FROM PROPERTY TAX INCREASES IN VALUE ATTRIBUTABLE TO PERIODIC REASSESSMENT OF OWNER-OCCUPIED RESIDENTIAL PROPERTY ALLOWED THE HOMESTEAD EXEMPTION FOR PERSONS OVER AGE SIXTY-FIVE YEARS OF AGE OR WHO ARE TOTALLY AND PERMANENTLY DISABLED, AND TO PROVIDE FOR THE DURATION OF THIS EXEMPTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 3, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-225. (A) For purposes of this section, real property means real property classified for property tax purposes pursuant to Section 12-43-220(c) qualifying for the exemption allowed under Section 12-37-250 pursuant to an application filed for that exemption by the current owner or qualifying for that exemption when owned by the surviving spouse of the original applicant.
(B) In addition to all other exemptions that may apply, there is exempted from property tax an amount of fair market value of real property located in the county equal to an increase in fair market value attributable to a countywide appraisal and equalization program conducted pursuant to Section 12-43-217. An exemption allowed by this item does not apply to:
(1) value attributable to property or improvements not previously taxed, such as new construction, and for renovation of existing structures; and
(2) real property transferred after the year in which the most recent countywide equalization program was implemented pursuant to Section 12-43-217.
(C) Notwithstanding subsection (B)(2), the exemption provided in subsection (B) applies to property which has been transferred in fee simple in a transfer that is not subject to income tax pursuant to Sections 102, limited to transfer to a spouse or surviving spouse, (Gifts and Inheritances), 1033 (Conversions--Fire and Insurance Proceeds to Rebuild), and 1041 (Transfers of Property Between Spouses or Incident to Divorce), 351.
(D) Once the taxable value of a property is reduced because of the exemption provided in subsection (B), that reduced value remains in effect, except as otherwise provided in subsection (B)(1) and (2), until the implementation of the next equalization and reassessment program. The effect of this exemption is, that upon the implementation of each subsequent equalization and reassessment program, the value of the property as determined under Section 12-37-930, reduced by the amount of any exemption granted under this section, may not increase except in the year following a disqualifying transfer in ownership.
When a property is transferred such that the property is no longer eligible for the exemption provided for in subsection (B), the property is subject to being taxed in the tax year following the transfer at its value, as determined under Section 12-37-930, at market value based on the sale or transfer of ownership or at the appraised value determined by the county assessor."
SECTION 2. This act takes effect upon approval by the Governor and applies for increases in fair market value attributed to countywide reassessment and equalization programs implemented after 2004.
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