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COMMITTEE REPORT
January 30, 2019
H. 3411
Introduced by Reps. G.R. Smith, W. Newton, Funderburk, Willis, Anderson, Weeks, Erickson, Elliott, R. Williams and Wheeler
S. Printed 1/30/19--H.
Read the first time January 8, 2019.
To whom was referred a Bill (H. 3411) to amend Section 12-54-122, Code of Laws of South Carolina, 1976, relating to tax liens, so as to allow the Department of Revenue to implement, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
G. MURRELL SMITH, JR. for Committee.
Explanation of Fiscal Impact
Introduced on January 8, 2019
State Expenditure
This bill allows the Department of Revenue (DOR) to implement a system of filing and indexing tax liens for public access through the internet or other means as the department considers appropriate. This system would replace the practice of tax lien notices being filed with the county clerks of court. A lien, once filed, is effective statewide from the date and time it is recorded and encumbers all the taxpayer's property and rights to property regardless of the property's location.
Currently, DOR files tax lien notices with the county in which the warrant for distraint applies. Each time a lien notice is filed, DOR remits a $10 filing fee to the county. DOR indicates that 56,213 lien notices were filed in FY 2017-18. This bill allows DOR to be the repository for liens, rather than the respective counties. As such, the bill could reduce DOR expenditures by $562,130 in FY 2019-20.
Further, the bill allows DOR to implement a new system for filing and indexing tax liens for public access. The implementation of a new system would increase general fund expenditures. DOR indicates that additional expenditures associated with a new system can be managed within existing appropriations, and would not exceed $562,130 saved from not filing the liens with the county clerks of court. The amount of expenditures required to implement a new filing and indexing system is not known. As such, the expenditure impact of this bill on the general fund, other funds, or federal funds is undetermined.
Local Revenue
This bill will result in a loss of revenue to counties in South Carolina. Currently, DOR remits a $10 fee to the county clerk of court for each lien notice filed. The bill allows DOR to act as the repository for all tax liens. As such, counties would no longer receive revenue from filing fees. DOR paid counties a total of $562,130 in FY 2017-18. Therefore, the bill could decrease local revenue by $562,130 in FY 2019-20.
Frank A. Rainwater, Executive Director
Revenue and Fiscal Affairs Office
TO AMEND SECTION 12-54-122, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAX LIENS, SO AS TO ALLOW THE DEPARTMENT OF REVENUE TO IMPLEMENT A SYSTEM OF FILING AND INDEXING LIENS WHICH IS ACCESSIBLE TO THE PUBLIC OVER THE INTERNET OR THROUGH OTHER MEANS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-54-122(G) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) Instead of filing a tax lien notice pursuant to item (1), the department may implement a system of filing and indexing liens which must be accessible to the public over the Internet or through other means as the department considers appropriate. A lien filed pursuant to this item is effective statewide from the date and time it is recorded and encumbers all the taxpayer's property and rights to property as provided in Section 12-54-120, regardless of the property's location. A lien filed pursuant to item (1) remains effective from the date and time it was recorded. Nothing in this item may be construed so as to extend the effectiveness of a lien beyond ten years from the date of filing, as provided in Section 12-54-120."
SECTION 2. This act takes effect July 1, 2019.
This web page was last updated on January 30, 2019 at 7:56 PM