Committee Report

April 21, 2026

 

H. 4477

 

Introduced by Reps. Landing, Cobb-Hunter, Rivers, Williams, Luck, King, Gilliard, Waters, Henderson-Myers, Collins, Schuessler, Herbkersman and M. M. Smith

 

S. Printed 4/21/26--H.

Read the first time May 1, 2025

 

________

 

The committee on House Ways and Means

To whom was referred a Bill (H. 4477) to amend the South Carolina Code of Laws by enacting the "Heirs' Property Tax Relief Act" by amending Section 12-37-3150, relating to determining when an assessible, etc., respectfully

Report:

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 all after the enacting words and inserting:

SECTION 1.  This act may be cited as the "Heirs' Property Tax Relief Act".

 

SECTION 2.  Chapter 1, Title 4 of the S.C. Code is amended by adding:

 

    Section 4-1-190. (A) A county may not treat a qualifying transfer of heirs' property, as defined in this section, as a transfer requiring reassessment of property to fair market value pursuant to Section 12-37-3150.

    (B) For purposes of this section:

       (1) "Heirs' property" means real property owned by two or more individuals as tenants in common, which was inherited from a relative and for which no formal probate or recorded conveyance transferred clear title to the current owners.

       (2) "Qualified family member" means a person related to a prior owner by blood, marriage, or adoption including, but not limited to, a spouse, child, grandchild, sibling, niece, nephew, aunt, uncle, cousin, or those identified as heir owners by a court of competent jurisdiction.

       (3) "Qualifying transfer" means a conveyance, via judicial action, or recorded instrument undertaken solely for the purpose of clearing or consolidating title to heirs' property among qualified family members, provided that both the grantor and grantee owned an undivided interest in the property prior to the transfer, through a:

           (a) quiet title action order;

           (b) partition in kind order; or

           (c) master-in-equity.

    (C) If heirs' property is partitioned pursuant to a qualifying transfer:

       (1) each resulting partitioned parcel must retain its assessed value as a pro rata share of the existing or original parcel and be taxed at its corresponding proportional amount and property classification; and

       (2) each partitioned parcel maintains its eligibility for any statutory caps or limitations on assessed value increases, including the fifteen percent reassessment limitation.

    (D) The limitation provided by this section applies only if the qualified family members submit an application to the county assessor, on a form developed by the South Carolina Department of Revenue, including an affidavit certifying under penalty of perjury that:

       (1) the property qualifies as heirs' property;

       (2) the transfer was made pursuant to a judicial order described in subsection (B)(3);

       (3) the transfer is between qualified family members; and

       (4) the transfer is for the purpose of clearing title.

    (E) Once title is cleared, the property is no longer considered heirs' property for purposes of this section and is not eligible for the limitation provided herein, as verified by tax map number or other parcel identifier at the time of the qualifying transfer.

    (F) This section does not apply to:

       (1) transfers not part of a judicial action described in subsection (B)(3); or

       (2) transfers to a person who is not a qualified family member.

 

SECTION 3.  This act takes effect upon approval by the Governor and applies to property tax years beginning after 2025.

Renumber sections to conform.

Amend title to conform.

 

B.W. BANNISTER for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill adds transfers made amongst related descendants who have legal claim to heirs' property to clear the title of the heirs' property to the list of property transfers that are not an ATI for property tax purposes beginning in tax year 2026. This bill will have no expenditure impact for DOR as the agency anticipates updating forms and training materials within the normal course of agency business.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

_______

 

 

 

 

 

 

 

 

A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS by ENACTing THE "HEIRS' PROPERTY TAX RELIEF ACT" BY AMENDING SECTION 12-37-3150, RELATING TO DETERMINING WHEN An ASSESSIBLE TRANSFER OF INTEREST OCCURS, SO AS TO EXCLUDE TRANSFERS MADE AMONG FAMILY MEMBERS TO CLEAR THE TITLE OF HEIRS' PROPERTy.

 

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

 

SECTION 1.  This act may be cited as the "Heirs' Property Tax Relief Act."

 

SECTION 2.  Section 12-37-3150(B) of the S.C. Code is amended by adding:

 

    (16) transfers made among related descendants who have legal claim to heirs' property to clear the title of the heirs' property, whereby both the grantor and grantee owned an interest in the property prior to the transfer.

 

SECTION 3.  This act takes effect upon approval by the Governor and applies to property tax years beginning after 2024.

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