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COMMITTEE REPORT
May 17, 2005
S. 473
Introduced by Senators Lourie, J. Verne Smith, Short, Bryant, Reese, Rankin, Ford, Matthews, Verdin, Malloy, Leventis, Pinckney, O'Dell, Setzler, Cleary, Jackson, Anderson, Mescher, Hutto, Sheheen, McGill, Alexander, Thomas, Ryberg, Patterson, Leatherman, Elliott, Land and Hayes
S. Printed 5/17/05--S.
Read the first time February 10, 2005.
To whom was referred a Bill (S. 473) 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 certain, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:
/ SECTION __. Section 12-37-220(29) of the 1976 Code is amended to read:
"(29) Two private passenger vehicles or trucks, not exceeding three-quarter ton, owned or leased by and licensed and registered in the name of any member or former member of the armed forces who was a prisoner of war (POW) in World War I, World War II, the Korean Conflict, or the Vietnam Conflict, as certified by the county office of Veterans Affairs, and who is a legal resident of this State. This exemption also extends to the surviving spouse of a qualified former POW for the lifetime or until the remarriage of the surviving spouse."
SECTION __. Section 12-37-2204(43) of the 1976 Code is amended to read:
"(43) The dwelling home and a lot not to exceed one acre of land owned in fee or for life or jointly with a spouse by a resident of this State who is a recipient of the Medal of Honor or who was a prisoner of war in World War I, World War II, the Korean Conflict, or the Vietnam Conflict, as certified by the county office of Veterans Affairs. The exemption is allowed to the surviving spouse under the same terms and conditions governing the exemption for surviving spouses pursuant to item (1) of this subsection. A person applying for this exemption must provide the evidence of eligibility the department requires." /
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
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 $61,200 in FY 2006.
Explanation
Under current law, two passenger vehicles and the dwelling home and lot owned by a veteran who is disabled, a Medal of Honor recipient, or a prisoner of war in Word War I, World War II, the Korean Conflict, or the Vietnam Conflict and is a resident of this State are exempt from ad valorem taxes. The exemption is allowed to the surviving spouse under the same terms and conditions governing the exemption. This bill would extend the exemption to a veteran's surviving spouse, who has not remarried and who establishes residency in this state subsequent to the death of the veteran, provided the veteran could have qualified for the exemption but for the residency requirements.
Data from the Department of Revenue show that 157 homes and 10,838 cars belonging to qualified veterans or their surviving spouses are exempt from property taxes for 2005 under current law. The 157 homes exempt represent .00013% of all homes and the 10,838 vehicles exempt represent .0033% of total vehicles registered in South Carolina. Applying these percentages to an estimated migration figure of 91,000 in FY 2005, we estimate 300 cars and 12 homes would be exempt under this bill as a result of new veteran's spouses receiving this exemption. Using an average car tax rate of $180 and an average home property tax rate of $600, expanding this exemption to include the surviving spouses of qualified veterans relocating to the State is expected to reduce local property tax revenue by an estimated $61,200 in FY 2006.
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 SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PROVIDE THAT CERTAIN PROPERTY TAX EXEMPTIONS PROVIDED TO VETERANS MUST BE EXTENDED TO A VETERAN'S SURVIVING SPOUSE WHO ESTABLISHES RESIDENCY IN THIS STATE SUBSEQUENT TO THE DEATH OF THE VETERAN, IF THE VETERAN, BUT FOR RESIDENCY REQUIREMENTS, COULD HAVE QUALIFIED FOR THE EXEMPTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) the exemptions provided for in items (3), (29), and (43) must be extended to a veteran's surviving spouse, who has not remarried and who establishes residency in this State subsequent to the death of the veteran if the veteran, but for residency requirements, could have qualified for the exemption."
SECTION 2. This act takes effect upon approval by the Governor.
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