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COMMITTEE REPORT
April 30, 2008
S. 1313
Introduced by Senators Knotts, Peeler, Williams, Elliott, Ford, Vaughn, Grooms, Malloy, Cromer, Bryant, Courson, Setzler, McConnell, Ceips, Ritchie, Cleary, Campsen, Short, McGill, Patterson, Reese, Ryberg, Fair, Thomas, Campbell, Anderson, Drummond, Pinckney, Jackson, Alexander, Leatherman, O'Dell, Lourie, Matthews, Martin and Rankin
S. Printed 4/30/08--S.
Read the first time April 17, 2008.
To whom was referred a Bill (S. 1313) to amend the Code of Laws of South Carolina, 1976, by adding Section 12-43-223 so as to provide that a person who through a bond for title, 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 striking SECTION 1 and inserting:
SECTION 1. Chapter 43, Title 12 of the 1976 Code is amended by adding:
"Section 12-43-223. (A) A person who through a bond for title, lease-purchase agreement, contract for sale, or other type of contractual agreement owns an equitable interest in a parcel of real property, the legal title to which remains in the seller, which that person maintains as his legal residence qualifies for a four percent assessment ratio thereon if he meets all other requirements provided by law for such classification including a requirement in the contractual agreement that he is responsible for the real property taxes on the property.
(B) A county assessor may establish reasonable criteria by July 1st of each property tax year to determine if a contractual agreement between the purchaser and the seller meets the requirements of subsection (A). The criteria must remain in effect for the property tax year and must apply equally to all applicable property during the property tax year. The assessor must make the criteria available to the public when it is established.
(C) To qualify for the four percent assessment ratio pursuant to this section, a person who owns an equitable interest in a parcel of real property must record the agreement conveying the equitable interest in the office of the register of mesne conveyances or the clerk of court in those counties where the office of the register of mesne conveyances has been abolished."
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
REVENUE IMPACT 1/
This bill is not expected to impact state revenues. Local property tax revenues could be impacted based on the criteria established by each county assessor.
Explanation
Current law already allows most lease purchase property to qualify for the 4.0% assessment ratio under certain conditions when a person owns an equitable interest in the parcel of real property and maintains the property as his legal residence. However, there are no uniform statewide standards for granting the 4.0% assessment ratio on these types of property. This bill allows the county assessor to establish reasonable criteria by July 1 of each property tax year to determine if a contractual agreement between the purchaser and the seller meet the requirements for receiving the 4.0% assessment ratio in Section 12-43-223(A). These criteria must be made available to the public when it is established. This bill also adds language stating that in order to qualify for the 4.0% assessment ratio pursuant to this section, a person who owns an equitable interest in the office of the register of mesne conveyances or the clerk of court in those counties where the office of the register of mesne conveyances has been abolished.
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 THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-43-223 SO AS TO PROVIDE THAT A PERSON WHO THROUGH A BOND FOR TITLE, LEASE-PURCHASE AGREEMENT, CONTRACT FOR SALE, OR OTHER TYPE OF CONTRACTUAL AGREEMENT OWNS AN EQUITABLE INTEREST IN A PARCEL OF REAL PROPERTY, THE LEGAL TITLE TO WHICH REMAINS IN THE SELLER, WHICH THAT PERSON MAINTAINS AS HIS LEGAL RESIDENCE QUALIFIES FOR A FOUR PERCENT ASSESSMENT RATIO THEREON IF HE MEETS ALL OTHER REQUIREMENTS PROVIDED BY LAW FOR SUCH CLASSIFICATION INCLUDING A REQUIREMENT IN THE CONTRACTUAL AGREEMENT THAT HE IS RESPONSIBLE FOR THE REAL PROPERTY TAXES ON THE PROPERTY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 43, Title 12 of the 1976 Code is amended by adding:
"Section 12-43-223. A person who through a bond for title, lease-purchase agreement, contract for sale, or other type of contractual agreement owns an equitable interest in a parcel of real property, the legal title to which remains in the seller, which that person maintains as his legal residence qualifies for a four percent assessment ratio thereon if he meets all other requirements provided by law for such classification including a requirement in the contractual agreement that he is responsible for the real property taxes on the property."
SECTION 2. This act takes effect upon approval by the Governor.
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