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COMMITTEE REPORT
April 20, 2006
H. 4504
S. Printed 4/20/06--H. [SEC 4/24/06 4:11 PM]
Read the first time January 24, 2006.
To whom was referred a Bill (H. 4504) to amend Sections 12-2-60, 12-4-520, 12-37-250, as amended, 12-37-251, 12-37-255, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
DANIEL T. COOPER for Committee.
EXPLANATION OF IMPACT:
The Comptroller General's Office and the Department of Revenue report this bill will have no impact on the General Fund of the State or on federal and/or other funds.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTIONS 12-2-60, 12-4-520, 12-37-250, AS AMENDED, 12-37-251, 12-37-255, 12-37-266, 12-37-270, 12-37-275, 12-37-280, 12-37-450, 12-39-15, 12-39-150, 12-39-180, 12-39-190, 12-39-200, 12-39-270, 12-39-310, 12-45-15, 12-45-35, 12-45-70, AND 12-49-85, ALL RELATING TO CERTAIN POWERS AND RESPONSIBILITIES OF THE COMPTROLLER GENERAL IN CONNECTION WITH THE OPERATIONS OF A COUNTY TREASURER AND A COUNTY AUDITOR, SO AS TO DEVOLVE THOSE POWERS AND RESPONSIBILITIES ONTO THE DEPARTMENT OF REVENUE, AND TO REPEAL SECTIONS 11-3-60, 11-3-200, 11-3-220, AND 12-39-320 ALL RELATING TO CERTAIN POWERS AND RESPONSIBILITIES OF THE COMPTROLLER GENERAL IN CONNECTION WITH THE OPERATIONS OF A COUNTY TREASURER OR COUNTY AUDITOR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-2-60 of the 1976 Code is amended to read:
"Section 12-2-60. The Comptroller General, with the approval of the Governor, department may extend the time for the performance of the duties imposed upon the county auditors for the preparation of the duplicate and upon the county treasurer and delinquent tax collector for the collection of taxes."
SECTION 2. Section 12-4-520 of the 1976 Code is amended to read:
"Section 12-4-520. The department:
(1) shall call meetings of all county assessors, to provide instruction as to the law governing the assessment and taxation of all classes of property, and the department shall formulate and prescribe rules to govern assessors and county boards of tax appeals in the discharge of their duties;
(2) shall confer with, advise, and direct assessors and county boards of tax appeals as to their duties under pursuant to the laws of the State: ;
(3) may visit any of the counties in the State to investigate the assessment, equalization, and taxation of all property subject to taxation and take any action necessary to insure ensure the proper assessment, equalization, and taxation of the property;
(4) as often as annually, shall examine all the books, papers, and accounts of assessors, auditors, treasurers, and tax collectors, with a view to protecting protect the interests of the State, counties, and other political subdivisions and rendering to render these officers aid or instruction. The department does not have jurisdiction over personnel or equipment purchases of political subdivisions;
(5) shall require county auditors to place upon the assessment rolls omitted property which that may have escaped assessment and taxation in whole or in part, in the current or previous years; and
(6) may extend the time for the performance of the duties imposed upon the county assessors or auditors for the valuation of property for tax purposes, and, when if the Comptroller General department extends the time for the collection of taxes, the department may postpone the time for the imposition of penalties."
SECTION 3. Section 12-37-250 of the 1976 Code, as last amended by Act 18 of 2001, is further amended to read:
"Section 12-37-250. (A)(1) The first fifty thousand dollars of the fair market value of the dwelling place of a person is exempt from county, municipal, school, and special assessment real estate property taxes when the person:
(i) has been a resident of this State for at least one year and has reached the age of sixty-five years on or before December thirty-first,;
(ii) the person has been classified as totally and permanently disabled by a state or federal agency having the function of classifying persons, ; or
(iii) the person is legally blind as defined in Section 43-25-20, preceding the tax year in which the exemption is claimed and holds complete fee simple title or a life estate to the dwelling place. A person claiming to be totally and permanently disabled, but who has not been classified by one of the agencies, may apply to the state agency of Vocational Rehabilitation. The agency shall make an evaluation of the person using its own standards.
(2) The exemption includes the dwelling place when jointly owned in complete fee simple or life estate by husband and wife, and either has reached sixty-five years of age, or is totally and permanently disabled, or legally blind under pursuant to this section, before January first of the tax year in which the exemption is claimed, and either has been a resident of the State for one year. (3) The exemption must not be granted for the tax year in which it is claimed unless the person or his agent makes written application for the exemption before July sixteenth of that tax year. If the person or his agent makes written application for the exemption after July fifteenth, the exemption must not be granted except for the succeeding tax year for a person qualifying under pursuant to this section when the application is made. However, if application is made after July fifteenth of that tax year but before the first penalty date on property taxes for that tax year by a person qualifying under pursuant to this section when the application is made, the taxes due for that tax year must be reduced to reflect the exemption provided in this section.
(4) The application for the exemption must be made to the auditor of the county and to the governing body of the municipality in which the dwelling place is located upon forms provided by the county and municipality and approved by the Comptroller General, department. and a A failure to apply constitutes a waiver of the exemption for that year. The auditor, as directed by the Comptroller General department, shall notify the municipality of all applications for a homestead exemption within the municipality and the information necessary to calculate the amount of the exemption.
(5) 'Dwelling place' means the permanent home and legal residence of the applicant.
(B) When any If a person would be entitled to a homestead tax exemption under pursuant to this section except that he does not own the real property on which his dwelling place is located and his dwelling place is a mobile home owned by him but located on property leased from another, such the mobile home shall be is exempt from personal property taxes to the same extent and obtained in accordance with the same procedures as is provided for in this section for an exemption from real property taxes; provided, however, that no a person shall may not receive such an the exemption from both real and personal property taxes in the same year.
(C) When If a dwelling house and legal residence is located on leased or rented property and such the dwelling house is owned and occupied by the owner even though at the end of the lease period the lessor becomes owner of the residence, the owner lessee shall qualify qualifies for and be is entitled to a homestead exemption in the same manner as though he owned a fee simple or life estate interest in the leased property on which his dwelling house is located.
(D) When any a person who was entitled to a homestead tax exemption under pursuant to this section dies or any person who was not sixty-five years of age or older, blind, or disabled on or before December thirty-first preceding the application period, but was at least sixty-five years of age, blind, or disabled at the time of his death and was otherwise entitled dies and the surviving spouse is at least fifty years of age and acquires complete fee simple title or a life estate to the dwelling place within nine months after the death of the spouse, the dwelling place is exempt from real property taxes to the same extent and obtained in accordance with the same procedures as are provided for in this section for an exemption from real property taxes, so long as the spouse remains unmarried and the dwelling place is utilized as the permanent home and legal residence of the spouse. A surviving spouse who disposes of the dwelling place and acquires another residence in this State for use as a dwelling place may apply for and receive the exemption on the newly acquired dwelling place. The spouse shall inform the county auditor of the change in address of the dwelling place.
(E) The term 'permanently and totally disabled' as used herein shall mean in this section means the inability to perform substantial gainful employment by reason of a medically determinable impairment, either physical or mental, which that has lasted or is expected to last for a continuous period of twelve months or more or result in death.
(F) The Comptroller General department shall reimburse from funds appropriated for homestead reimbursement the state agency of Vocational Rehabilitation for the actual expenses incurred in making decisions relative to disability from funds appropriated for homestead reimbursement.
(G) The Comptroller General department shall promulgate such rules and regulations develop advisory opinions as may be necessary to carry out the provisions herein of this section.
(H) Nothing herein shall be construed as an intent in this section intends to cause the reassessment of any a person's property.
(I) The provisions of this section apply to life estates created by will and also to life estates otherwise created.
(J) The homestead tax exemption must be granted in the amount in this paragraph to those persons a person who own owns a dwelling in part in fee or in part for life when the persons satisfy person satisfies the other conditions of the exemption. The amount of the exemption must be determined by multiplying the percentage of the fee or life estate owned by the person by the full exemption. For purposes of the calculation required by this paragraph, a percentage of ownership less than five percent is considered to be five percent. The exemption may not exceed the value of the interest owned by the person."
SECTION 4. Section 12-37-251(B)(1) of the 1976 Code is amended to read:
"(B)(1) School districts A school district must be reimbursed from revenues credited to the Trust Fund for Tax Relief for a fiscal year, in the manner provided in Section 12-37-270, for the revenue lost as a result of the homestead exemption provided in this section. Ninety percent of the reimbursement must be paid in the last quarter of the calendar year on December first. From funds appropriated to in the Office of the Comptroller General in the annual general appropriations act Trust Fund for Tax Relief, the Comptroller department shall make the calculations and distributions required pursuant to this subsection. If amounts received by a school district pursuant to this subsection are insufficient to reimburse fully for the base year operating millage, the local school board, within its authority, shall decide how to make up the shortfall, if necessary. Amounts received by a district in excess of the amount necessary to reimburse the district for the base year operating millage must first be used to reduce any operating millage imposed since the 1995 base year, and must next be used for school debt service purposes,. and any Any funds remaining may then be retained by the district."
SECTION 5. Section 12-37-255 of the 1976 Code is amended to read:
"Section 12-37-255. (a)(A) When the The homestead exemption is initially granted pursuant to Section 12-37-250 of the 1976 Code it shall continue continues to be effective for successive years in which the ownership of the homestead or the other qualifications for the exemption remain unchanged. Notification of any a change affecting eligibility shall must be given immediately to the county auditor.
(b)(B) The notification shall must be given by the person liable for payment of the taxes on the homestead in the year of change and in each successive year that the exemption is improperly granted. The amount of any a tax exemption granted by reason of the failure to give the notification and a penalty equal to twenty-five percent of the amount thereof of the exemption shall be is due and payable for each year in which the exemption is granted by reason of the failure to give notice. The penalty and the amount of tax shall must be added to the current year's duplicate and shall be collected in the same manner as other taxes. A lien is hereby created for the tax and penalty upon the property exempted by reason of the failure to give notification, which shall have lien has priority over all other liens.
(c)(C) The Comptroller General shall department must be notified by the county auditor of the amount of tax and penalty payable by reason of the failure to give the notification. The amount of such the tax and penalty shall must be withheld by the Comptroller General department from the next disbursement of state funds to such that county and, if it is a municipal tax, to the municipality."
SECTION 6. Section 12-37-266 of the 1976 Code is amended to read:
"Section 12-37-266. (1)(A) When If a trustee holds legal title to a dwelling that is the legal residence of a beneficiary sixty-five years of age or older, or totally and permanently disabled, or blind, and the beneficiary uses the dwelling, the dwelling is exempt from property taxation in the amount and manner as dwellings are exempt under pursuant to Section 12-37-250 if the beneficiary meets the other conditions required for the exemption. The trustee may apply in person or by mail to the county auditor for the exemption on a form approved by the Comptroller General department. No further Further application is not necessary while the property for which the initial application was made continues to meet the eligibility requirements. The trustee shall notify the county auditor of any a change in classification within six months of the change. If the trustee fails to notify the county auditor within six months, a penalty must be imposed equal to one hundred percent of the tax paid, plus interest on that amount at the rate of one-half of one percent a month,. but in In no case may the penalty be less than thirty dollars nor or more than the current year's taxes. This penalty and any interest are considered ad valorem taxes due on the property for purposes of collection and enforcement.
(2)(B) The Comptroller General department shall reimburse the taxing entity for the taxes not collected by reason of the exemption in the same manner and under the same conditions as reimbursement is provided for the exemption allowed pursuant to Section 12-37-250."
SECTION 7. Section 12-37-270 of the 1976 Code is amended to read:
"Section 12-37-270. (A) As provided in Section 11-11-150, there must be credited to the Trust Fund for Tax Relief in a fiscal year an amount sufficient to pay the reimbursement provided by this section. From the trust fund, The Comptroller General, from the Trust Fund, the department annually shall pay to the county treasurer of the county in which the dwelling is situate for the account of each county, school district, or special district therein in it a sum equal to the amount of taxes that was not collected for such the county, school district, or special district by reason of the exemption provided for in Section 12-37-250. and The department also annually, from the trust fund, shall pay to the governing body of the municipality in which the dwelling is situate a sum equal to the amount of taxes that was not collected for such the municipality by reason of the exemption provided for in Section 12-37-250. The county treasurer and municipal governing body shall furnish the Comptroller General department on or before April first following the tax year, or during an extension authorized by the Comptroller General department not to exceed sixty days, an accounting or statement as prescribed by the Comptroller General department that reflects the amount of county, municipal, school district, or special district taxes that was not collected because of the exemption. Any funds Funds paid by the Comptroller General department as the result of an erroneous or improper application must be returned to the Comptroller General department for deposit in the general fund of the State.
(B) Notwithstanding any other provisions another provision of law, the Comptroller General department shall purchase and distribute the applications for the homestead exemption and the costs must be paid from the trust fund.
(C) The Comptroller General department shall promulgate regulations as necessary to carry out the provisions of this section."
SECTION 8. Section 12-37-275 of the 1976 Code is amended to read:
"Section 12-37-275. Notwithstanding any other another provision of law, requests for reimbursement for taxes not collected the previous year must not be received by the Comptroller General department before January first. These requests must be for the reimbursement of eligible accounts which that accrue before the first penalty date each year. Those eligible accounts that accrue or are discovered on or after the first penalty date of the tax year must be submitted to the Comptroller General department in the next year's reimbursement request. These requests do not extend beyond the immediate preceding tax year."
SECTION 9. Section 12-37-280 of the 1976 Code is amended to read:
"Section 12-37-280. (A) Any A county, municipality, school district, and special district in which a person who has reached the age of sixty-five years receives a homestead property tax exemption must be reimbursed for the exemption from the Trust Fund for Tax Relief. The reimbursement must be made by the Comptroller General department on an annual basis on the terms and subject to the conditions as he may prescribe.
(B) Nothing contained in this This section may be construed as authority to grant does not authorize property tax exemption other than as provided for by the laws and Constitution of this State."
SECTION 10. Section 12-37-450 of the 1976 Code is amended to read:
"Section 12-37-450. (A) Counties A county and municipalities municipality must be reimbursed for the revenue lost as a result of the business inventory tax exemption based on the 1987 tax year millage and 1987 tax year assessed value of inventories in the counties county and municipalities municipality. If an amount of reimbursement to a political subdivision within a county is attributable to a separate millage for debt service for any purpose, when that debt is paid, the appropriate reimbursement amount must be redistributed proportionately when the debt is paid to the other separate millages levied by the political subdivision within the county for the 1987 tax year. There is credited annually, as provided in Section 11-11-150, to the Trust Fund for Tax Relief whatever amount is necessary to reimburse fully all counties and municipalities the required amount. The Comptroller General department shall make remittances of this reimbursement to counties a county and municipalities municipality in four equal payments.
(B) Notwithstanding any other another provision of law, business inventory exempted from property taxation in the manner provided in this section is considered taxable property in an amount equal to the 1987 tax year assessed valuation for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State and for purposes of computing the 'index of taxpaying ability' pursuant to item (3) of Section 59-20-20.
(C) Where If a portion of a special purpose district is annexed to a municipality, and its service functions in the annexed area are assumed by the municipality, the total amount remitted to the county and municipality under pursuant to this section shall may not exceed the total amount which would be remitted to the two entities separately. However, the assessed valuation and special purpose district tax levy for tax year 1987 with respect to the annexed portion of the special purpose district must be taken into consideration in determining the proportionate share of the total allocation due to the county and the municipality."
SECTION 11. Section 12-39-15 of the 1976 Code is amended to read:
"Section 12-39-15. (A) County auditors A county auditor annually shall complete satisfactorily a minimum of eighteen hours of continuing education courses which that the Comptroller General department establishes or causes to be established. Failure to complete satisfactorily these courses in any year results in the auditor forfeiting one thousand dollars of his state salary supplement for that year as this supplement is provided in the annual general appropriations act. The content, cost, and dates of the courses must be determined by the Comptroller General department.
(B) The Comptroller General department, for reasonable cause, may excuse a county auditor from attending these courses for any year. If excused, the auditor does not forfeit one thousand dollars of his state salary supplement for that year."
SECTION 12. Section 12-39-150 of the 1976 Code is amended to read:
"Section 12-39-150. The auditor shall make out enter, in into a book to be prepared for that purpose, in such a manner as the Comptroller General shall department prescribe prescribes, a complete list or schedule of all taxable property in his county and the value thereof of it as equalized,. The list or schedule must be so arranged so that each separate parcel of real property in each district, other than city, village, and town property, shall be is contained in a line or lines opposite the names of the owners, arranged in numerical or alphabetical order, and so that each lot or parcel of real property in cities, villages, and towns shall be is contained in a line or lines opposite the names name of the owners thereof owner of it, respectively, arranged in alphabetical order. And the The value of all personal property shall must be set down opposite the names name of the owners thereof owner of it, respectively, and, if listed by any other another person for and in the name of representing the owner, the name of such that person and the character in which he acted shall also be stated in such list. Such The list or schedule shall must be retained in his office and another made for the county treasurer, delivered to him annually on or before the thirtieth day of September thirtieth, annually, as his warrant for the collection of the taxes, assessments, and penalties charged thereon on it. Each and both of such lists list shall must be denominated the county duplicate."
SECTION 13. Section 12-39-180 of the 1976 Code is amended to read:
"Section 12-39-180. Each A county auditor, after receiving statements of the rates and sums to be levied for the current year from the Comptroller General department and from such other officers and authorities as are legally empowered to determine the rate or amount of taxes to be levied for the various purposes authorized by law statements of the rates and sums to be levied for the current year, shall forthwith immediately proceed to determine the sums to be levied upon each tract and lot of real property and upon the amount of personal property, monies, and credits listed in his county in the name of each person,. which The assessment must be assessed made equally on all real and personal property subject to such the taxes and set down entered in one or more columns in the manner and form as the Comptroller General department shall prescribe. The Department of Revenue department or the county auditor shall place a minimum assessment of at least twenty dollars on all personal property that generates a tax bill, unless a higher minimum assessment is otherwise required by law."
SECTION 14. Section 12-39-190 of the 1976 Code is amended to read:
"Section 12-39-190. The county auditor shall enter the taxes on the duplicate, to be retained in his own office, in such the number of columns as the Comptroller General shall, from time to time, direct; department directs. but on On the duplicate for the county treasurer, he shall enter the taxes against each parcel of real and personal property on one or more lines, opposite the name of the owner or owners."
SECTION 15. Section 12-39-200 of the 1976 Code is amended to read:
"Section 12-39-200. In all respects except as otherwise prescribed by Section 12-39-190, the Comptroller General department may prescribe forms for county duplicates as may seem to him most conducive to the interest and convenience of convenient for the public, and county auditors shall conform thereto to those forms."
SECTION 16. Section 12-39-270 of the 1976 Code is amended to read:
"Section 12-39-270. The county auditor shall keep as a permanent record in his office a book to be known as the 'Abatement Book,' to be furnished to him by the Comptroller General, wherein ', in which the county auditor shall enter enters separately each and every abatement of taxes granted and allowed. Such The abatement book shall must be so kept so as to show in each case, under appropriate columns, the number of the page and the number of the line of the tax duplicate where on which the item abated appears, the name of the taxpayer, the amount and kind of tax charged on the duplicate and for what year, the amount abated and date of abatement, in each case, . if If the tax be is on property, the entry must include a description of property and the reason why the abatement was applied for and allowed. After the abatement papers are so entered, they shall must be filed in the auditor's office by consecutive numbering of each and the number on the abatement paper shall must be entered in the abatement book where in which the paper is entered so there may be for easy reference thereto. Such The abatement book shall must be kept by townships and summed up separately for each fiscal year, with a recapitulation showing at the end of the year the amount of state, county, school, poll, and other tax abated during the fiscal year in the whole county. The abatement allowed in annual settlements between county auditor and treasurer shall must be according to the record in such the abatement book."
SECTION 17. Section 12-39-310 of the 1976 Code is amended to read:
"Section 12-39-310. Each A county auditor shall respond to all inquiries to of him by the Comptroller General department regarding the value of real estate of the county and the valuations of the different classes of personal property for taxation, and other matters which the Comptroller General department considers of interest to the public or of value to him it in the discharge of the duties of his office the department. These responses must be made in the form and must contain the details the Comptroller General may prescribe department prescribes."
SECTION 18. Section 12-45-15 of the 1976 Code is amended to read:
"Section 12-45-15. (A) County treasurers A county treasurer annually shall complete satisfactorily a minimum of eighteen hours of continuing education courses which that the Comptroller General department establishes or causes to be established. Failure to satisfactorily complete satisfactorily these courses in any year results in the treasurer forfeiting one thousand dollars of his state salary supplement for the year as this supplement is provided in the annual general appropriations act. The content, cost, and dates of the courses must be determined by the Comptroller General department.
(B) The Comptroller General department, for reasonable cause, may excuse a county treasurer from attending these courses for any year. If excused, the treasurer does not forfeit one thousand dollars of his state salary supplement for that year."
SECTION 19. Section 12-45-35 of the 1976 Code, as added by Act 89 of 2001, is amended to read:
"Section 12-45-35. (A) A county treasurer may appoint an employee in his office to be his deputy. The appointment must be filed with the Comptroller General department and the governing body of that county. When the appointment is filed, the deputy may act for and on behalf of the county treasurer when the treasurer is incapacitated by reason of a physical or mental disability or during a temporary absence.
(B) If there is a vacancy in the office of county treasurer by reason of death, resignation, or disqualification, the appointed deputy shall carry out the duties of the office until a successor is appointed or elected or qualified."
SECTION 20. Section 12-45-70 of the 1976 Code is amended to read:
"Section 12-45-70. (A) All taxes are due and payable between the thirtieth day of September and the fifteenth day of January after their assessment in each year. The several county treasurers treasurer, acting under the direction and supervision of the Comptroller General department, shall collect the taxes in the manner prescribed by law and give receipts therefor for them to the persons paying them. In the receipts and tax notices the real estate paid on must be briefly described including tax map number and an identifiable description. and the The value and a description of the personal property paid on must be stated, together with the time the taxes are paid, the amount paid, and the township where in which the property is located.
(B) The treasurer, tax collector, or other official charged with the collection of ad valorem property taxes in each a county may delegate the collection of the property taxes to banks a bank or a banking institutions institution, if each the institution assigns, hypothecates, or pledges to the county, as security for the collection, federal funds or federal, state, or municipal securities in an amount adequate to prevent any loss to the county from any cause. Each The institution shall must remit the taxes collected daily to the county official charged with the collections. The receipt given to the taxpayer, in addition to the information required in this section and by Section 12-37-2650, shall must contain the name and office of the treasurer or tax collector of the county and shall also show the name of the banking institution to which payment was made.
(C) The county official charged with the collection of taxes shall send a list of the institutions collecting the taxes to the Department of Public Safety. Each institution shall certify to the Department of Public Safety that the taxes have been paid, and the Department of Public Safety may accept certification in lieu instead of the tax receipt given to the taxpayer if that certification contains the information required in Section 12-37-2650."
SECTION 21. Section 12-49-85 of the 1976 Code is amended to read:
"Section 12-49-85. (A) If the person officially charged with the collection of ad valorem taxes on real or personal property for a county determines that the tax, assessment, or penalty is uncollectible, he shall record that determination and the reason for it on a list he maintains. At least annually he shall provide the list to the county auditor, who may remove a particular determination from the duplicate list, but the auditor shall record the removal and the reason for it as prescribed by the Comptroller General department.
(B) The reasons for removal of a tax, assessment, or penalty from the duplicate list may include, but are not limited to:
(1) insufficient property of the person charged with the uncollectible tax, assessment, or penalty to collect it;
(2) collection of the tax, assessment, or penalty has been enjoined by a competent court.
(C) Subject to the provisions of Section 12-54-85(E), the auditor and the person officially charged with the collection of ad valorem taxes shall review the list annually. If it is later determined that the tax, assessment, or penalty was improperly removed from the duplicate list or is collectible, it must be returned to the duplicate list for collection, with all penalties and interest accruing."
SECTION 22. Sections 11-3-60, 11-3-200, 11-3-220, and 12-39-320 are repealed.
SECTION 23. This act takes effect upon approval by the Governor.
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