South Carolina General Assembly
105th Session, 1983-1984

Bill 2914


                    Current Status

Bill Number:               2914
Ratification Number:       304
Act Number:                286
Introducing Body:          House
Subject:                   Relating to the responsibility of the tax
                           commission for the assessment of certain
                           companies for property taxation
View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A286, R304, H2914)

AN ACT TO AMEND SECTION 12-3-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RESPONSIBILITY OF THE TAX COMMISSION FOR THE ASSESSMENT OF CERTAIN COMPANIES FOR PROPERTY TAXATION, SO AS TO INCLUDE PIPELINE COMPANIES THEREIN, TO PROVIDE THAT THE UNIT VALUE METHOD SHALL BE USED IN ASSESSING TO THE OWNER ALL REAL OR PERSONAL PROPERTY LEASED OR USED, AND TO DISALLOW THE LIFO METHOD OF VALUING MERCHANTS' INVENTORY; AND TO AMEND SECTION 12-37-970, AS AMENDED, RELATING TO ASSESSMENT AND RETURN OF MERCHANTS' INVENTORY, SO AS TO PROVIDE THAT THE ASSESSMENT OF PROPERTY TAXATION OF MERCHANTS' INVENTORIES AND FIXTURES AND MANUFACTURERS' AND OTHER TAXPAYERS' PROPERTY MUST BE DETERMINED BY THE TAX COMMISSION AND TO REQUIRE THE TAXPAYER TO MAKE A RETURN NOT LESS THAN ONCE EACH CALENDAR YEAR.

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

Tax Commission to assess certain utilities

SECTION 1. Item (17) of Section 12-3-140 of the 1976 Code, as last amended by Act 30 of 1977, is further amended to read:

"(17) Has the sole responsibility for the assessment, appraisal, and equalization of taxable values upon the property and franchises of street railway companies, mines, electric railways, telephone companies, water, heat, light and power companies, private car lines, and pipe line companies, and must assess, appraise, and equalize all real and tangible personal property of manufacturers, except as to inventory, only manufactured articles which have been offered for sale at retail or which have been available for sale at retail may be included in the inventory listed in the return. The Commission must also assess to the owner all real or personal property leased to or used by the above-mentioned companies using the Unit Valuation Method or other accepted or recognized methods. When the total value of the utility is estimated and the value apportioned to this State, then the value will be distributed to the taxing jurisdiction in each county where the utility has property on a basis of investment in each jurisdiction. It is the responsibility of each county assessor to determine what portion of the total value in each district is to be assessed as real property. The owner of property leased to or used by the above-mentioned companies must make returns to the Commission on forms prescribed by the Commission."

Tax value of merchants' inventories

SECTION 2. Section 12-3-140 of the 1976 Code, as last amended by Act 30 of 1977, is further amended by adding an appropriately numbered item to read:

"( ) The LIFO method may not be used in determining the value of merchants' inventory for property tax purposes."

Assessment and return of merchants' inventories, etc.

SECTION 3. Section 12-37-970 of the 1976 Code, as last amended by Act 361 of 1982, is further amended to read:

"Section 12-37-970. Notwithstanding any other provision of law, the assessment for property taxation of merchants' inventories, equipment, furniture and fixtures, and manufacturers' real and tangible personal property, and the machinery, equipment, furniture and fixtures of all other taxpayers required to file returns with the South Carolina Tax Commission for purposes of assessment for property taxation, shall be determined by the Commission from property tax returns submitted by the taxpayers to the Commission on or before the fifteenth day of the fourth month after the close of the accounting period regularly employed by the taxpayer for income tax purposes in accordance with Chapter 7, Title 12. The Commission by regulation shall prescribe the form of return required by this section, the information to be contained in it, and the manner in which the returns must be submitted. Every taxpayer required to make return to the Commission of property for assessment for property taxation must make the return to the Commission not less than once each calendar year. Whenever by a change of accounting period or otherwise more than one accounting period ends within any one calendar year, the taxpayer must make one such return within the prescribed time for filing following the end of each of the accounting periods and the Commission shall determine the assessment from the return setting forth the greatest value.

When property required to be returned as herein provided is sold after the end of the seller's accounting year and before January first next ensuing and when the purchaser's accounting year ends after the seller's and before January first next ensuing, the property must be returned by the seller as of the end of his accounting period. The purchaser is not required to list and return the property as of the close of his accounting period during the calendar year of sale. The seller and the purchaser are jointly and singularly liable for the tax that is due and payable by reason of this provision. The provision of this section does not apply to motor vehicles licensed for use on public highways."

Time effective

SECTION 4. This act shall take effect upon approval by the Governor.