Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
April 20, 2006
H. 4307
S. Printed 4/20/06--H.
Read the first time January 10, 2006.
To whom was referred a Bill (H. 4307) to amend the Code of Laws of South Carolina, 1976, by adding Section 12-37-2645, so as to incorporate by reference for property tax purposes the definition, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
DANIEL T. COOPER for Committee.
REVENUE IMPACT 1/
This bill is not expected to impact state or local revenue. Although the amount of assessed value used to calculate property taxes would be decreased from the assessed value that would be used under current law, local governments are expected to adjust their millages to make up for the lower assessed values in order to keep revenue growth at its historical rate. This change of the assessment ratio is expected to reduce property taxes by $6,102,000 of which $62,365 will be shifted to properties within the category and the "net impact" on all classes is shown below.
Category Property Tax Shift to Properties Net Impact
Change from Within Class on All Classes
Rollback
Owner-
Occupied 1,480,846
Agricultural 34,810
Commercial/
Rental 2,623,815
Personal
Property
(Vehicles) 834,111
Other Personal
Property -6,102,000 62,365 -6,039,635
Manufacturing 313,562
Utility 489,657
Business
Personal 239,313
Motor Carrier 23,521
TOTAL -6,102,000 62,365 0
Explanation
Under current law Section 56-3-360 defines passenger motor vehicles. This current definition excludes motorcycles. Trucks are included in the current definition if they have an empty weight of seven thousand pounds or less and a gross weight of nine thousand pounds or less. This bill adds motorcycles to the definition and changes the empty weight of trucks to nine thousand pounds or less and the gross weight to eleven thousand pounds or less. This effectively changes the assessment ratio on these motorcycles and trucks from 10.5% to 6.0%. We estimate this bill would change the incidence of local property taxes by shifting $6,102,000 among and within the classes of property in FY 2006-07.
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 by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-2645, SO AS TO INCORPORATE BY REFERENCE FOR PROPERTY TAX PURPOSES THE DEFINITION OF PRIVATE PASSENGER MOTOR VEHICLE USED IN THE MOTOR VEHICLE LICENSING AND REGISTRATION LAW, INCREASE THE WEIGHT LIMIT FOR PICKUP TRUCKS FOR PURPOSES OF THIS DEFINITION, AND INCLUDE MOTORCYCLES WITHIN THIS INCORPORATED DEFINITION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 21, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-2645. For purposes of determining the appropriate assessment ratio used in the calculation of the assessed value of a motor vehicle and for defining those motor vehicles subject to the assessment ratios provided in Section 1(8)(B)(a) of Article X of the Constitution of this State, the definition of 'private passenger motor vehicle' provided in Section 56-3-630 applies except that in the case of pickup trucks, the empty weight and gross weight limits provided in that definition are increased respectively to nine thousand pounds or less and eleven thousand pounds or less and the definition is deemed to include motorcycles."
SECTION 2. This act takes effect upon approval by the Governor and applies with respect to motor vehicle tax years beginning after the last day of the second month following the month in which this act was approved by the Governor.
This web page was last updated on Tuesday, June 23, 2009 at 2:35 P.M.