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S. 189
STATUS INFORMATION
General Bill
Sponsors: Senator Gregory
Document Path: l:\council\bills\bbm\9641htc07.doc
Introduced in the Senate on January 9, 2007
Currently residing in the Senate Committee on Finance
Summary: Outstanding Tax Liability Garnishment Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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12/13/2006 Senate Prefiled
12/13/2006 Senate Referred to Committee on Finance
1/9/2007 Senate Introduced and read first time SJ-111
1/9/2007 Senate Referred to Committee on Finance SJ-111
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION, BY ADDING CHAPTER 63 ENACTING THE SOUTH CAROLINA OUTSTANDING TAX LIABILITY GARNISHMENT ACT SO AS TO PROVIDE FOR GARNISHMENT ON A TAXPAYER'S SALARY OR WAGES TO SATISFY A JUDGMENT FOR AN OUTSTANDING TAX LIABILITY, AND TO PROVIDE PROCEDURES AND DEFINITIONS APPLICABLE FOR THIS GARNISHMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 12 of the 1976 Code is amended by adding:
Section 12-63-10. This chapter may be cited as the 'South Carolina Outstanding Tax Liability Garnishment Act'.
Section 12-63-20. As used in this chapter, 'outstanding tax liability owed the governmental entity' means every tax imposed by the governmental entity, and all increases, interest, fees, and penalties on the tax from the time it is due and payable which has not been paid, and for which all rights of administrative or judicial appeal have been exhausted or all time limits for these appeals have expired.
Section 12-63-30. Every person who has recovered judgment in any court against another person to collect an outstanding tax liability has a right to a writ of garnishment, as provided pursuant to this chapter, to satisfy the judgment he has obtained by subjecting to garnishment salary or wages of the judgment debtor. Other types of personal property of the debtor are not subject to garnishment, and the term 'property' of the debtor or any other similar term, as used in this chapter in regard to garnishment, must be construed as provided in this section.
Section 12-63-40. If the amount of the judgment is five thousand dollars or less, jurisdiction over the garnishment action is solely in magistrate's court. When the amount of the judgment is more than five thousand dollars, jurisdiction over garnishment action is in circuit court.
Section 12-63-50. After judgment has been obtained against a defendant, the judgment creditor shall serve notice of intent to apply for a writ of garnishment. Before the writ of garnishment is issued, the judgment creditor also shall file with the notice a declaration stating the amount of the judgment and that the plaintiff does not believe that the defendant has in his possession property on which a levy may be made sufficient to satisfy the judgment. The declaration may be filed and the writ issued either before or after the return of execution. The notice shall give the judgment debtor thirty days to respond, which response must be in writing and served upon the judgment creditor.
Section 12-63-60. (A) Thirty days after service of the notice, the judgment creditor may file with the appropriate court the original notice, declaration, affidavit of service, any response, and a motion for writ of garnishment together with a filing fee of twenty-five dollars. If the judgment debtor serves an answer to the notice, the court shall set the motion for hearing and notify all parties of the hearing.
(B) If the judgment debtor fails to answer as required, the judgment creditor shall file with the appropriate court the original notice, declaration, affidavit of service, affidavit of default, and a motion for writ of garnishment. If the judgment debtor fails to answer, the court shall issue a writ of garnishment against the judgment debtor for the amount of the judgment.
(C) Upon receipt of the writ of garnishment, the judgment creditor shall forward a copy to the employer of the judgment debtor which writ shall provide for the periodic payments of a stated portion of the salary or wages of the judgment debtor.
(D) Until the judgment is satisfied or until otherwise provided by court order, the court shall allow the judgment debtor's employer to collect up to five dollars against the salary or wages of the judgment debtor to reimburse the employer for administrative costs for the first deduction from the judgment debtor's salary or wages and up to one dollar for each deduction thereafter. The employer shall remit the funds withheld to the judgment creditor within fifteen days after withholding.
Section 12-63-70. The provisions of this chapter are in addition to and not in lieu of Sections 12-54-130 and 12-54-135 and any other provisions of law allowing the collection of delinquent taxes by means of requiring an employer to withhold a portion of an employee's wages or salary."
SECTION 2. This act takes effect upon approval by the Governor.
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