A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-37-250, RELATING TO THE HOMESTEAD EXEMPTION, SO AS TO INCREASE THE EXEMPTION TO ONE HUNDRED THOUSAND DOLLARS AND TO REDUCE THE AGE ELIGIBILITY TO SIXTY; BY AMENDING SECTION 12-37-266, RELATING TO THE HOMESTEAD EXEMPTION, SO AS TO MAKE A CONFORMING CHANGE; BY AMENDING SECTION 12-37-280, RELATING TO THE HOMESTEAD EXEMPTION, SO AS TO MAKE A CONFORMING CHANGE; BY AMENDING SECTION 12-37-290, RELATING TO THE HOMESTEAD EXEMPTION, so as to make a conforming change; BY AMENDING SECTION 12-37-220, RELATING TO GENERAL EXEMPTION FROM TAXES, SO AS TO MAKE A CONFORMING CHANGE; BY AMENDING SECTION 11-11-150, RELATING TO DEDUCTIONS FOR THE TRUST FUND FOR TAX RELIEF, SO AS TO MAKE A CONFORMING CHANGE; AND BY REPEALING SECTION 12-37-245 RELATING TO THE HOMESTEAD EXEMPTION.

 

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

 

SECTION 1.  Section 12-37-250(A) and (D) of the S.C. Code is amended to read:

 

    (A)(1) The first fifty one hundred thousand dollars of the fair market value of the dwelling place of a person is exempt from county, municipal, school, and special assessment real estate property taxes when the person:

           (i) has been a resident of this State for at least one year and has reached the age of sixty-fivesixty years on or before December thirty-first;

           (ii) has been classified as totally and permanently disabled by a state or federal agency having the function of classifying persons;  or

           (iii) is legally blind as defined in Section 43-25-20, preceding the tax year in which the exemption is claimed and holds complete fee simple title or a life estate to the dwelling place.  A person claiming to be totally and permanently disabled, but who has not been classified by one of the agencies, may apply to the state agency of Vocational Rehabilitation.  The agency shall make an evaluation of the person using its own standards.

       (2) The exemption includes the dwelling place when jointly owned in complete fee simple or life estate by husband and wife, and either has reached sixty-fivesixty years of age, or is totally and permanently disabled, or legally blind pursuant to this section, before January first of the tax year in which the exemption is claimed, and either has been a resident of the State for one year.

       (3) The exemption must not be granted for the tax year in which it is claimed unless the person or his agent makes written application for the exemption before July sixteenth of that tax year.  If the person or his agent makes written application for the exemption after July fifteenth, the exemption must not be granted except for the succeeding tax year for a person qualifying pursuant to this section when the application is made.   However, if application is made after July fifteenth of that tax year but before the first penalty date on property taxes for that tax year by a person qualifying pursuant to this section when the application is made, the taxes due for that tax year must be reduced to reflect the exemption provided in this section.

       (4)(a) The application for the exemption must be made to the auditor of the county and to the governing body of the municipality in which the dwelling place is located upon forms provided by the county and municipality and approved by the department. A failure to apply constitutes a waiver of the exemption for that year. The auditor, as directed by the department, shall notify the municipality of all applications for a homestead exemption within the municipality and the information necessary to calculate the amount of the exemption.

           (b) The application required may be:

               (i) made in person at the auditor's office;

               (ii) by mail, when accompanied by a copy of documentation of age, or disability, or legal blindness;  or

               (iii) by internet in those instances where the auditor has access to official records documenting the appropriate eligibility standard.

           The department shall assist auditors with compliance with the provisions of this subitem and by means of the approval required pursuant to subitem (a) of this item ensure uniform application procedures.

       (5) "Dwelling place" means the permanent home and legal residence of the applicant.

 

    (D) When a person who was entitled to a homestead tax exemption pursuant to this section dies or any person who was not sixty-fivesixty years of age or older, blind, or disabled on or before December thirty-first preceding the application period, but was at least sixty-fivesixty years of age, blind, or disabled at the time of his death and was otherwise entitled dies and the surviving spouse acquires complete fee simple title or a life estate to the dwelling place within nine months after the death of the spouse, the dwelling place is exempt from real property taxes to the same extent and obtained in accordance with the same procedures as are provided for in this section for an exemption from real property taxes, so long as the spouse remains unmarried and the dwelling place is utilized as the permanent home and legal residence of the spouse.  A surviving spouse who disposes of the dwelling place and acquires another residence in this State for use as a dwelling place may apply for and receive the exemption on the newly acquired dwelling place.  The spouse shall inform the county auditor of the change in address of the dwelling place.

 

SECTION 2.  Section 12-37-266(A) of the S.C. Code is amended to read:

 

    (A) If a trustee holds legal title to a dwelling that is the legal residence of a beneficiary sixty-fivesixty years of age or older, or totally and permanently disabled, or blind, and the beneficiary uses the dwelling, the dwelling is exempt from property taxation in the amount and manner as dwellings are exempt pursuant to Section 12-37-250, if the beneficiary meets the other conditions required for the exemption. A copy of the trust agreement must be provided to certify this exemption. The trustee may apply in person or by mail to the county auditor for the exemption on a form approved by the department. Further application is not necessary while the property for which the initial application was made continues to meet the eligibility requirements. The trustee shall notify the county auditor of a change in classification within six months of the change. If the trustee fails to notify the county auditor within six months, a penalty must be imposed equal to one hundred percent of the tax paid, plus interest on that amount at the rate of one-half of one percent a month. In no case may the penalty be less than thirty dollars or more than the current year's taxes. This penalty and any interest are considered ad valorem taxes due on the property for purposes of collection and enforcement.

 

SECTION 3.  Section 12-37-280(A) of the S.C. Code is amended to read:

 

    (A) A county, municipality, school district, and special district in which a person who has reached the age of sixty-fivesixty years receives a homestead property tax exemption must be reimbursed for the exemption from the Trust Fund for Tax Relief.  The reimbursement must be made by the department on an annual basis on the terms and subject to the conditions as it may prescribe.

 

SECTION 4.  Section 12-37-290 of the S.C. Code is amended to read:

 

    Section 12-37-290. The first fifty one hundred thousand dollars of the fair market value of the dwelling place of persons shall be exempt from county, school and special assessment real estate property taxes when such persons have been residents of this State for at least one year, have each reached the age of sixty-fivesixty years on or before December thirty-first or any person who has been classified as totally and permanently disabled by a state or federal agency having the function of so classifying persons or any person who is legally blind as defined in Section 43-25-20, preceding the tax year in which the exemption herein is claimed and hold complete fee simple title or a life estate to the dwelling place. Any person claiming to be totally and permanently disabled, but who has not been so classified by one of such agencies, may apply to the Vocational Rehabilitation Department. The agency shall make an evaluation of such person using its own standards. The exemption shall include the dwelling place when jointly owned in complete fee simple or life estate by husband and wife and either has reached sixty-fivesixty years of age, or is totally and permanently disabled, on or before December thirty-first preceding the tax year in which the exemption is claimed and either has been a resident of the State for one year. The exemption shall not, however, be granted unless such persons or their agents make written application therefor on or before May first of the tax year in which the exemption is claimed and shall also pay all real property taxes due by such persons before the date prescribed by statute for the imposition thereon of a late penalty or interest charge. The application for the exemption shall be made to the auditor of the county in which the dwelling place is located upon forms, provided by the county and approved by the department, and a failure to so apply shall constitute a waiver of the exemption for that year. The term "dwelling place" as used herein shall mean the permanent home and legal residence of the applicant.

    The term "permanently and totally disabled" as used herein shall mean the inability to perform substantial gainful employment by reason of a medically determinable impairment, either physical or mental, which has lasted or is expected to last for a continuous period of twelve months or more or result in death.

    The department shall reimburse the Vocational Rehabilitation Department for the actual expenses incurred in making decisions relative to disability from funds appropriated for homestead reimbursement.

    The department shall promulgate such rules and regulations as may be necessary to carry out the provisions herein.

    Nothing herein shall be construed as an intent to cause the reassessment of any person's property.

    The provisions of this section shall apply to life estates created by will and also to life estates otherwise created which were in effect on or before December 31, 1971.

 

SECTION 5.  Section 12-37-220(A)(9) of the S.C. Code is amended to read:

 

    (9) a homestead exemption for persons sixty-five years of age and older or another age prescribed by the General Assembly, for persons permanently and totally disabled and for blind persons in an amount to be determined by the General Assembly of the fair market value of the homestead under conditions prescribed by the General Assembly by general law;

 

SECTION 6.  Section 11-11-150(A)(2) of the S.C. Code is amended to read:

 

    (2) Section 12-37-270 for the homestead exemption for persons over age sixty-five sixty or disabled, but not including the portion attributable to school operating millage;

 

SECTION 7.  Section 12-37-245 of the S.C. Code is repealed.

 

SECTION 8.  This act takes effect upon approval by the Governor and applies to property tax years beginning after 2025.

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