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PROPOSING AN AMENDMENT TO SECTION 29, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE LEGISLATIVE DEPARTMENT, SO AS TO PROVIDE THAT TAXES UPON REAL PROPERTY MUST BE ASSESSED IN ACCORDANCE WITH THE METHODS AS PROVIDED BY THE GENERAL ASSEMBLY IN ARTICLE X OF THE STATE CONSTITUTION; TO AMEND SECTIONS 1 AND 3 OF ARTICLE X, RELATING TO FINANCE AND TAXATION, SO AS TO PROVIDE THAT THE REQUIREMENT THAT TAXATION OF REAL PROPERTY MUST BE UNIFORM APPLIES TO PROPERTY WITHIN A TAXING JURISDICTION RATHER THAN STATEWIDE; AND BY AMENDING SECTION 6 OF ARTICLE X, SO AS TO PROVIDE THAT THE BASE TAX VALUE FOR REAL PROPERTY IS ROLLED BACK TO THE TAXABLE VALUE OF THE 2004 TAX YEAR OR THE TAX YEAR IN WHICH THE MOST RECENT REASSESSMENT OCCURRED PRIOR TO 2004, TO REQUIRE THAT THE GENERAL ASSEMBLY ESTABLISH A STATEWIDE SYSTEM FOR ASSESSMENT OF REAL PROPERTY BASED ON REASSESSMENTS AT THE TIME OF ASSESSABLE TRANSFERS OF INTEREST, TO PROVIDE FOR COUNTIES TO SELECT FROM SEVERAL METHODS OF ASSESSMENT AS ESTABLISHED BY THE GENERAL ASSEMBLY, AND TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW SHALL PROVIDE FOR THE TERMS, CONDITIONS, AND PROCEDURES TO IMPLEMENT THE ABOVE PROVISIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. It is proposed that Section 29 of Article III of the Constitution of this State be amended to read:
"Section 29. All taxes upon property, real and personal, shall be laid upon the actual value of the property taxed, as the same shall be ascertained by an assessment made for the purpose of laying such tax. Taxes on personal property must be laid upon the actual value of the property taxed, as the same shall be ascertained by an assessment made for the purpose of laying such tax. Taxes on real property must be ascertained by the methods provided by the General Assembly as prescribed in Article X of this Constitution."
B. It is proposed that the first paragraph of Section 1 of Article X of the Constitution of this State be amended to read:
"Section 1. The General Assembly may provide for the ad valorem taxation by the State or any of its subdivisions of all real and personal property. The assessment of all property shall be equal and uniform within the class of property being taxed and within its taxing jurisdiction in the following classifications:"
C. It is proposed that the penultimate paragraph of Section 3 of Article X of the Constitution of this State be amended to read:
"The exemptions provided in subitems (c) and (d) for real property shall not extend beyond the buildings and premises actually occupied by the owners of such real property. Homestead exemptions from ad valorem taxation not specifically provided for in this section may be provided for by the General Assembly by general law. In addition to the exemptions listed in this section, the General Assembly may provide for exemptions from the property tax, by general laws applicable uniformly to property throughout the State and in all political subdivisions, but only with the approval of two-thirds of the members of each House. All exemptions not specifically provided for or authorized in this article shall be repealed March 1, 1978. The General Assembly shall provide for methods and procedures in applying for the exemption of any property as is described in this section."
D. It is proposed that Section 6 of Article X of the Constitution of this State be amended to read:
"Section 6. The Except as otherwise provided in this section, the General Assembly may vest the power of assessing and collecting taxes in all of the political subdivisions of the State, including counties, municipalities, special purpose districts, public service districts, and school districts. Property tax levies shall be uniform in respect to persons and property within the jurisdiction of the body imposing such taxes; provided, that on properties located in an area receiving special benefits from the taxes collected, special levies may be permitted by general law applicable to the same type of political subdivision throughout the State, and the General Assembly shall specify the precise condition under which such special levies shall be assessed. For the tax year beginning 2007, each parcel of real property in this State shall have a maximum assessed value for ad valorem tax purposes that does not exceed its fair market value for a base tax year. Effective upon ratification of this amendment, the base tax year is to be the tax year 2004 or the tax year in which the most recent reassessment occurred prior to 2004. The maximum assessed value for the base tax year may be increased by the lesser of: (1) the amount that the fair market value of the property was increased by all improvements completed after the base tax year, excluding ordinary repairs and maintenance; or (2) the actual cost of all improvements completed after the base tax year, excluding ordinary repairs and maintenance. Notwithstanding any other provision of law, the reduction of these taxable values does not alter or amend the valuation of the taxable property as it was calculated prior to tax year 2007 for purposes of bonded indebtedness pursuant to Section 14 and Section 15 of this Article of the Constitution of this State and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3) as these provisions applied prior to the ratification of this amendment. The General Assembly is authorized, by general law, to define 'fair market value', to define when property has been improved or when losses have occurred to decrease the value of the real property, and to change the tax year used to determine the base of the maximum assessed value of real property for ad valorem tax purposes. Through the enactment of general law, the General Assembly must establish a system for assessment of real property, based on the fair market value of the real property at the time an assessable transfer of interest has occurred, to define when an assessable transfer of interest occurs, and to provide, through general law, that the taxable value of each parcel of real property, adjusted for improvements and losses, must not increase each year unless an assessable transfer of interest has occurred. The General Assembly may provide, by general law, an annual percentage increase of the taxable value of real property for inflationary purposes. A county is considered to have adopted the aforementioned system of assessing real property at the time an assessable transfer of interest has occurred, as provided by the General Assembly, unless (1) the governing body of a county, through enactment of an ordinance or pursuant to a majority vote of the qualified electors voting in a referendum held at the time of the November general election, or (2) the qualified electors of a county, by initiating an ordinance pursuant to the requirements of Section 4-9-1210, et seq., elect, in the current tax year or a future tax year, to assess real property at fair market value on an annual basis, or adopt an alternate method of assessing real property from the methods provided by the General Assembly. Neither the governing body of a county nor the qualified electors of a county are prohibited from choosing in subsequent tax years a different method of reassessment from the methods provided by the General Assembly.
Whenever there is a merger of governments authorized under Section 12 of Article VIII, tax districts may be created, based upon the services rendered in each district, but tax levies must be uniform in respect to persons and property within each such district."
SECTION 2. The proposed amendments must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Article III and Article X of the Constitution of this State be amended so as to provide that taxation of real property must be in accordance with procedures provided by the General Assembly, to provide the requirement that ad valorem taxes be applied uniformly to property is applicable within a taxing jurisdiction rather than statewide, to add that the base tax value for real property is rolled back to the tax year 2004 or a tax year in which the most recent reassessment has occurred prior to 2004, to require that the General Assembly establish a system for assessment of real property based on the fair marker value of the real property at the time an assessable transfer of interest occurs, as defined by the General Assembly, to provide that a county, through ordinance or general referendum or qualified electors through an initiative ordinance, may utilize annual reassessments of property at fair market value or a different method of assessment established by the General Assembly, to provide that different reassessment methods may be chosen in subsequent tax years, and to provide that the General Assembly by law shall provide for the terms, conditions, and procedures to implement the above provisions?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after 'Yes', and those voting against the questions shall deposit a ballot with a check or cross mark in the square after the word 'No'."
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