South Carolina General Assembly
120th Session, 2013-2014

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Bill 511


Indicates Matter Stricken
Indicates New Matter


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A BILL

TO AMEND SECTION 12-43-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FOUR PERCENT SPECIAL ASSESSMENT RATIO, SO AS TO PROVIDE THAT AN ELIGIBILITY PROVISION REQUIRING A CERTAIN OWNERSHIP PERCENTAGE DOES NOT APPLY IF THE PROPERTY IS HELD BY A TRUST, FAMILY LIMITED PARTNERSHIP, OR LIMITED LIABILITY COMPANY UNDER CERTAIN SITUATIONS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 12-43-220(c)(8) of the 1976 Code, as added by Act 179 of 2012, is amended to read:

"(8)(i)    For ownership interests in residential property created by deed if the interest in the property has not already transferred by operation of law, when the individual claiming the special four percent assessment ratio allowed by this item has an ownership interest in the residence that is less than fifty percent ownership in fee simple, then the value of the residence allowed the special four percent assessment ratio is a percentage of that value equal to the individual's ownership interest in the residence, but not less than the amount provided pursuant to subitem (4) of this item. This subitem (8) does not apply in the case of a residence otherwise eligible for the special four percent assessment ratio when occupied jointly by a married couple or which remains occupied by a spouse legally separated from a spouse who has abandoned the residence. If the special four percent assessment ratio allowed by this item applies to only a fraction of the value of residence, then the exemption allowed pursuant to Section 12-37-220(B)(47) applies only to value attributable to the taxpayer's ownership interest.

(ii)    Notwithstanding subitem subsubitem (i), for ownership interests in residential property created by deed if the interest in the property has not already transferred by operation of law, an applicant may qualify for the four percent assessment ratio on the entire value of the property if the applicant:

(A)    owns at least a twenty-five percent interest in the subject property with immediate family members;

(B)    is not a member of a household currently receiving the four percent assessment ratio on another property; and

(C)    otherwise qualifies for the four percent assessment ratio.

(iii)    This subitem (8) does not apply to property held exclusively:

(A)    by an applicant, or the applicant and the applicant's spouse;

(B)    by an irrevocable trust if the person claiming the special four percent assessment ratio is the grantor or settlor of the irrevocable trust, and the only beneficiaries of the trust are the grantor or settlor and immediate family members;  

(C)    by a family limited partnership if the person claiming the special four percent assessment ratio transferred the subject property to the partnership, and the only members of the partnership are the person and the person's immediate family members;  

(D)    by a limited liability company if the person claiming the special four percent assessment ratio transferred the subject property to the limited liability company, and the only members of the limited liability company are the person and the person's immediate family members; or

(E)    by any combination thereof.

The exception contained in this subsubitem (iii) does not apply if the applicant does not otherwise qualify for the four percent assessment ratio, including the requirement that the applicant, nor any member of the applicant's household, claim the four percent assessment ratio on another residence.

For purposes of this subitem, 'immediate family member' means a parent, spouse, child, or sibling."

SECTION    2.    This act takes effect upon approval by the Governor and applies to property tax years beginning after 2011. If the property tax assessor determines that a person denied the four percent special assessment ratio in property tax year 2012, now qualifies for in property tax year 2012 pursuant to this act, the person must be refunded any property taxes paid in excess of the amount owed.

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