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Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
March 26, 2008
S. Printed 3/26/08--S. [SEC 3/27/08 12:32 PM]
Read the first time March 4, 2008.
To whom was referred a Bill (S. 1171) to amend Section 12-37-900 of the 1976 Code, relating to the listing and returning of personal property, to provide that a manufacturer is not required to list, 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, page 2, SECTION 1, by striking lines 7 through 12 and inserting:
/ A manufacturer not under a fee agreement is not required to return personal property for ad valorem tax purposes if the property remains in this State at a manufacturing facility that has not been operational for one fiscal year and the personal property has not been used in operations for one fiscal year. The personal property is not required to be returned until the personal property becomes operational in a manufacturing process or until the property has not been returned for ad valorem tax purposes for four years, whichever is earlier. A manufacturer must continue to list the personal property annually and designate on the listing that the personal property is not subject to tax pursuant to this section." /
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 could decrease by an estimated $1.6 million in FY 2008-09.
This bill provides that a manufacturer is not required to list or return personal property for ad valorem tax purposes if the property remains in South Carolina but has not been used in operations for the entire reporting period of the manufacturer. Under current law, if property is depreciated for income tax purposes, it must show up on the property return. Officials with the Department of Revenue could not readily identify any specific cases where this new exemption would apply but stated there could be some instances now or in the future. Some of the county auditors we spoke with stated this bill could reduce their property tax revenues slightly. They also expressed concern that if a plant had not been operational during the entire preceding year but became operational in February or March of the following year the property may not be taxable that year either because it was not in use as of December 31st of the preceding tax year. Based on conversations with local tax officials, we project this bill could decrease local property tax revenues by an estimated $1.6 million in FY 2008-09.
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 12-37-900 OF THE 1976 CODE, RELATING TO THE LISTING AND RETURNING OF PERSONAL PROPERTY, TO PROVIDE THAT A MANUFACTURER IS NOT REQUIRED TO LIST OR RETURN PERSONAL PROPERTY FOR AD VALOREM TAX PURPOSES IF THE PROPERTY REMAINS IN THIS STATE BUT HAS NOT BEEN USED IN OPERATIONS FOR THE ENTIRE REPORTING PERIOD OF THE MANUFACTURER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-900 of the 1976 Code is amended to read:
"Section 12-37-900. Every person required by law to list property shall, annually, between the first day of January and the first day of March, make out and deliver to the auditor of the county in which the property is by law to be returned for taxation a statement, verified by his oath, of all the real estate which has been sold or transferred since the last listing of property for which he was responsible and to whom, and of all real and personal property possessed by him, or under his control, on the thirty-first day of December next preceding, either as owner, agent, parent, husband, guardian, executor, administrator, trustee, receiver, officer, partner, factor, or holder with the value thereof, on such thirty-first day of December, at the place of return, estimating according to the rules prescribed by law, except that the returns of corn, cotton, wheat, oats, rice, peas, and long forage, made on the day specified by law, shall be the amounts actually on hand in the hands of the producer thereof on the first day of August, immediately preceding the date of such return. But any county upon the written approval of a majority of the county legislative delegation, including the Senator, may waive penalties for failing to make such statement or may provide that such statement shall be made every fourth year. This section shall not repeal or alter any prior law or laws applying to particular counties which allow or provide for returns of real property more frequently than every four years.
A manufacturer is not required to list or return personal property for ad valorem tax purposes if the property remains in this State but has not been used in operations for the entire reporting period of the manufacturer. The personal property is not required to be listed or returned until the reporting period in which the personal property becomes operational in a manufacturing process."
SECTION 2. This act takes effect upon approval by the Governor and applies to tax years beginning on or after January 1, 2008.
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