South Carolina General Assembly
116th Session, 2005-2006

Download This Version in Microsoft Word format

Bill 4426

Indicates Matter Stricken
Indicates New Matter

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

COMMITTEE REPORT

April 20, 2006

H. 4426

Introduced by Reps. Thompson and Martin

S. Printed 4/20/06--H.

Read the first time January 12, 2006.

            

THE COMMITTEE ON WAYS AND MEANS

To whom was referred a Bill (H. 4426) to amend Section 12-37-220, as amended, Code of Laws of South Carolina, 1976, relating to property tax exemptions, so as to provide that when, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

DANIEL T. COOPER for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT 1/

This bill is not expected to have an impact on state revenues. Local property tax revenues are expected to decrease by an estimated $150,000 in FY 2006-07.

Explanation

Under current law Section 12-37-220 (A) (4) exempts all property of all charitable trusts and foundations used exclusively for charitable and public purposes, but this exemption for real property does not extend beyond the buildings and premises actually occupied by the owners of the real property. Section 12-37-220 (B) (16) (a) exempts the property of any religious, charitable, eleemosynary, educational, or literary society, corporation, or other association, when the property is used by it primarily for the holding of its meetings and the conduct of the business of the society, corporation, or association and no profit or benefit therefrom inures to the benefit of any private stockholder or individual. This bill would extend a property tax exemption to otherwise exempt organizations leasing property from an exempt organization currently qualifying under 12-37-220 (A) (4) or 12-37-220 (B) (16) (a). Based on conversations with county officials, we estimate this bill would decrease local property tax revenues by $150,000 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.

A BILL

TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PROVIDE THAT WHEN AN ENTITY EXEMPT FROM PROPERTY TAX AS A NONPROFIT CORPORATION FUNDED BY FEDERAL OR STATE LOANS OR AS A RELIGIOUS, CHARITABLE, A ELEEMOSYNARY, EDUCATIONAL, OR LITERACY ORGANIZATION LEASES PROPERTY OWNED BY IT TO SIMILARLY PROPERTY TAX EXEMPT ENTITIES, THE LEASED PORTION OF THE PROPERTY IS EXEMPT FROM PROPERTY TAX.

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

SECTION    1.    Section 12-37-220 of the 1976 Code, as last amended by Act 161 of 2005, is further amended by adding an appropriately lettered subsection at the end to read:

"(E)    If an entity owns property a portion of which qualifies for an exemption under subsections (A)(4) or (B)(16)(a) of this section and a portion of which is leased to one or more separate entities and that property would be exempt under subsections (A)(4) or (B)(16) of this section if the entity leasing the property owned the property, then any portion of the property that is leased to such entity is exempt from property taxes."

SECTION    2.    This act takes effect upon approval by the Governor and applies for property tax years beginning after 2005.

----XX----

This web page was last updated on Tuesday, June 23, 2009 at 2:36 P.M.