Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
April 18, 2007
H. 3544
Introduced by Reps. Dantzler, Umphlett, McLeod, Bedingfield, Bowers, Harrell, Jefferson, E.H. Pitts, G.R. Smith and Williams
S. Printed 4/18/07--H.
Read the first time February 15, 2007.
To whom was referred a Bill (H. 3544) to amend Section 12-37-224, as amended, Code of Laws of South Carolina, 1976, relating to property tax on motor homes, so as to provide, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
DANIEL T. COOPER for Committee.
REVENUE IMPACT 1/
This bill is not expected to impact state revenues. Local property tax revenues are expected to decrease by $220,000 in FY 2007-08.
Explanation
Under current law a motor home is considered real property rather than personal property for property tax purposes if it qualifies as a primary or second residence pursuant to the Internal Revenue Code. As a result, the value of motor homes for property tax purposes is changed only every five years during reassessment. The bill would tax motor homes as real property but value them the same way motor vehicles are valued for property tax purposes. Section 12-37-930 states that the fair market value for vehicles, watercraft, and aircraft must be based on values derived from a nationally recognized publication of vehicle valuations, except that the value may not exceed ninety-five percent of the prior year's value. Determining the fair market value of motor homes in the same manner, as motor vehicles would require the fair marker value of motor homes to depreciate at least 5.0% per year. Depreciating the value of motor homes by at least 5.0% per year is expected to reduce local property tax revenues by $220,000 in FY 2007-08.
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 SECTION 12-37-224, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX ON MOTOR HOMES, SO AS TO PROVIDE THAT THE FAIR MARKET VALUE OF A MOTOR HOME SUBJECT TO PROPERTY TAX AS A PRIMARY OR SECOND RESIDENCE, THE MOTOR HOME MUST BE VALUED IN THE MANNER THAT MOTOR VEHICLES ARE VALUED FOR PROPERTY TAX PURPOSES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-224 of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:
"Section 12-37-224. A motor home on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation in this State and is considered real property rather than personal property for property tax purposes. By ordinance, the governing body of a county may extend the provisions of this section to a boat that meets the same qualifications required for motor homes pursuant to this section.
The fair market value of a motor home classified for property tax purposes as a primary or second residence pursuant to this section must be determined in the manner that motor vehicles are valued for property tax purposes."
SECTION 2. This act takes effect upon approval by the Governor and applies for real property tax years beginning after 2006.
This web page was last updated on Monday, June 22, 2009 at 2:40 P.M.