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Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 24, 2006
S. 723
S. Printed 5/24/06--H.
Read the first time June 2, 2005.
To whom was referred a Bill (S. 723) to amend Sections 12-24-10 and 12-24-70, Code of Laws of South Carolina, 1976, both relating to recording of deeds, so as to provide, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
JAMES H. HARRISON for Committee.
REVENUE IMPACT 1/
This bill is expected to reduce Documentary Stamp Tax revenue by an estimated $5,500,000 in FY2006-07. Of this amount, general fund revenue would be reduced by $4,131,000 and Conservation Bank Trust Fund revenue would be reduced by $1,377,000 in FY2006-07.
Explanation
This bill would eliminate the recording fee of one dollar eighty-five cents for each five hundred dollars, or fractional part of five hundred dollars, of value of real property transferred, assigned, or released to distributees of a decedent's estate. Based upon a survey of Register of Deeds, RMC, Clerk of Court, and Probate offices in multiple South Carolina counties, approximately 6% of total deeds filed are deeds of distribution for estates, or an estimated 18,000 deeds. According to the Multiple Listing Service, released by the SC Association of Realtors, YTD (March 1, 2006) median price of homes in South Carolina is $153,000, or 306 units of $500. Multiplying the 306 units by one dollar allocated to the state general fund per deed equals $306 generated per deed filed. Eighteen thousand deeds of distribution for estates generating $306 each equal $5,500,000. It is, therefore, expected that this bill would reduce Documentary Stamp Tax revenue by an estimated $5,500,000 in FY2006-07. Of this amount, general fund revenue would be reduced by $4,131,000 and Conservation Bank Trust Fund revenue would be reduced by $1,377,000 in FY2006-07.
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 SECTIONS 12-24-10 AND 12-24-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, BOTH RELATING TO RECORDING OF DEEDS, SO AS TO PROVIDE THAT AN INSTRUMENT ALIENATING REALTY TO THE DISTRIBUTEE OF AN ESTATE IS NOT A DEED REQUIRING A RECORDING FEE OR AN AFFIDAVIT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-24-10 of the 1976 Code is amended to read:
"Section 12-24-10. (A) In addition to all other recording fees, a recording fee is imposed for the privilege of recording a deed in which any lands land and all improvements on the land, tenements, or other realty is transferred to another person. The fee is one dollar eighty-five cents for each five hundred dollars, or fractional part of five hundred dollars, of the realty's value as determined by Section 12-24-30.
(B) An instrument or deed of distribution assigning, transferring, or releasing real property to the distributee of a decedent's estate pursuant to Section 62-3-907 as evidence of the distributee's title to the property is not a deed subject to this chapter."
SECTION 2. Section 12-24-70 of the 1976 Code is amended to read:
"Section 12-24-70. (A)(1) The clerk of court or register of deeds shall require an affidavit showing the value of the realty to be filed with a deed. The affidavit required by this section must be signed by a responsible person connected with the transaction, and the affidavit must state that connection. The clerk of court or register of deeds, at his discretion, may waive the affidavit requirement.
(2) For deeds exempt under from the provisions of this chapter, the value is not required to be stated on the affidavit, but the affidavit must state the reason the deed is exempt from the fee. The affidavit required by this section must be signed by a responsible person connected with the transaction, and the affidavit must state that connection. The clerk of court or register of deeds, at his discretion, may waive the affidavit requirement.
(B) The clerk of court or register of deeds shall file these affidavits in his office.
(C) A person required to furnish the affidavit who wilfully furnishes a false or fraudulent affidavit is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than one year, or both.
(D) An affidavit is not required for an instrument or deed of distribution assigning, transferring, or releasing real property to the distributee of an estate pursuant to Section 62-3-907 as evidence of the distributee's title."
SECTION 3. This act takes effect upon approval by the Governor.
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