Current Status Bill Number:View additional legislative information at the LPITS web site.397 Ratification Number:254 Act Number:166 Introducing Body:Senate Subject:Collection of delinquent taxes
(A166, R254, S397)
AN ACT TO AMEND SECTION 12-45-70, AS AMENDED, AND SECTIONS 12-45-180, 12-51-40, 12-51-50, 12-51-60, 12-51-70, 12-51-80, 12-51-90, 12-51-100, 12-51-110, 12-51-120, 12-51-130, 12-51-150, 12-51-160, 12-51-170, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE COLLECTION OF PROPERTY TAXES, SO AS TO PROVIDE AN EXCLUSIVE PROCEDURE FOR THE COLLECTION OF DELINQUENT TAXES, ASSESSMENTS, INCLUDING INCREASING PENALTIES, AND COSTS, AND FOR THE DISTRESS AND SALE OF PROPERTY TO SATISFY TAX LIENS; AND TO REPEAL ARTICLE 5 OF CHAPTER 49 OF TITLE 12 AND SECTIONS 12-51-10, 12-51-20, AND 12-51-30, WHICH PROVIDE ALTERNATE METHODS FOR THE COLLECTION OF DELINQUENT TAXES AND DISTRESS AND SALE OF PROPERTY TO SATISFY TAX LIENS.
Be it enacted by the General Assembly of the State of South Carolina:
Legislative findings
SECTION 1. The General Assembly finds that the procedure used to collect property taxes varies among counties. Different due dates, different penalties and other variances exist that should be made uniform. The intent and purpose of this act is to provide a procedure to be used exclusively for the collection of property taxes by counties. The procedure does not apply to the collection of taxes on motor vehicles.
Taxes due and payable
SECTION 2. Section 12-45-70, as last amended by Act 23 of 1983, is further amended to read:
"Section 12-45-70. All taxes are due and payable between the thirtieth day of September and the fifteenth day of January after their assessment in each year. The several county treasurers under the direction and supervision of the Comptroller General shall collect the taxes in the manner prescribed by law and give receipts therefor to the persons paying them. In the receipts and tax notices the real estate paid on must be briefly described including tax map number and an identifiable description and the value and a description of the personal property paid on must be stated, together with the time the taxes are paid, the amount paid, and the township where the property is located.
The treasurer, tax collector, or other official charged with the collection of ad valorem property taxes in each county may delegate the collection of the property taxes to banks or banking institutions, if each institution assigns, hypothecates, or pledges to the county, as security for the collection, federal funds or federal, state, or municipal securities in an amount adequate to prevent any loss to the county from any cause. Each institution shall remit the taxes collected daily to the county official charged with the collections. The receipt given to the taxpayer, in addition to the information required in this section and by Section 12-37-2650, shall contain the name and office of the treasurer or tax collector of the county and shall also show the name of the banking institution to which payment was made.
The county official charged with the collection of taxes shall send a list of the institutions collecting the taxes to the South Carolina Department of Highways and Public Transportation. Each institution shall certify to the Department that the taxes have been paid, and the Department may accept certification in lieu of the tax receipt given to the taxpayer if that certification contains the information required in Section 12-37-2650."
When taxes and assessments not paid
SECTION 3. Section 12-45-180 of the 1976 Code is amended to read: "Section 12-45-180. When the taxes and assessments or any portion thereof charged against any property or person on the duplicate for the current fiscal year are not paid before the sixteenth day of January or thirty days after the mailing of tax notices, whichever occurs later, the county auditor shall add a penalty of three percent on the county duplicate and the county treasurer shall collect the penalty; and if the taxes, assessments, and penalty are not paid before the second day of the next February, an additional penalty of seven percent must be added by the county auditor on the county duplicate and collected by the county treasurer; and if the taxes, assessments, and penalties are not paid before the seventeenth day of the next March, an additional penalty of five percent must be added by the county auditor on the county duplicate and collected by the county treasurer; and if taxes, assessments, and penalties are not paid before the seventeenth day of March, the county treasurer shall issue his tax execution to the officer authorized and directed to collect delinquent taxes, assessments, penalties and costs for their collection as provided in Chapter 51 of this Title and they must be collected as required by that chapter. The United States postmark is the determining date for mailed payments."
Execution against defaulting taxpayer
SECTION 4. Section 12-51-40 of the 1976 Code is amended to read:
"Section 12-51-40. After the county treasurer issues his execution against a defaulting taxpayer in his jurisdiction, as provided in Section 12-45-180, signed by him or his agent in his official capacity, directed to the officer authorized to collect delinquent taxes, assessments, penalties, and costs, requiring him to levy the execution by distress and sale of so much of the defaulting taxpayer's estate, real or personal, or both, as may be sufficient to satisfy the taxes, assessments, penalties, and costs, the officer to which the execution is directed shall:
(a) On April first or as soon thereafter as practicable, mail a notice of delinquent property taxes, penalties, assessments, and costs, to the person at the address shown on the tax receipt or at a more correct address if it is known. The notice shall specify that if the taxes, penalties, assessments, and costs are not paid, the property must be duly advertised and sold to satisfy the delinquency.
(b) If the taxes remain unpaid after thirty days from the date of mailing of the delinquent notice, or as soon thereafter as practicable, take exclusive possession of so much of the defaulting taxpayer's property as is necessary to satisfy the payment of the taxes, assessments, penalties, and costs may be taken. In the case of real property, exclusive possession is taken by mailing a notice of delinquent property taxes, assessments, penalties, and costs to the defaulting taxpayer at the address shown on the tax receipt or to a more correct address known to the officer, by 'Certified Mail, return receipt requested--deliver to addressee only'. In the case of personal property, exclusive possession is taken by mailing the notice of delinquent property taxes, assessments, penalties, and costs to the person at the address shown on the tax receipt or to a more correct address known to the officer. All delinquent notices shall specify that if the taxes, assessments, penalties, and costs are not paid on or before a subsequent sales date, the property must be duly advertised and sold for delinquent property taxes, assessments, penalties, and costs. The return receipt of the 'Certified Mail' notice is equivalent to 'levying by distress'. (c) In the event the 'Certified Mail' notice has been returned, take exclusive physical possession of the property against which the taxes, assessments, penalties, and costs were assessed by posting a notice at one or more conspicuous places on the premises, in the case of real estate, reading: 'Seized by person officially charged with the collection of delinquent taxes of (name of political subdivision) to be sold for delinquent taxes', the posting of the notice is equivalent to levying by distress, seizing, and taking exclusive possession thereof, or by taking exclusive possession of personalty. In the case of personal property, the person officially charged with the collection of delinquent taxes is not required to move the personal property from where situated at the time of seizure and further, the personal property may not be moved after seized by anyone under penalty of conversion unless delinquent taxes, assessments, penalties, and costs have been paid. Mobile homes are considered to be personal property for the purposes of this section unless the owner gives written notice to the auditor of the mobile home's annexation to the land on which it is situated.
(d) The property must be advertised for sale at public auction. The advertisement must be in a newspaper of general circulation within the county or municipality, if applicable, and must be entitled 'Delinquent Tax Sale'. It shall include the delinquent taxpayer's name and the description of the property, a reference to the county auditor's map-block-parcel number being sufficient for a description of realty. The advertising must be published once a week prior to the legal sales date for three consecutive weeks for the sale of real property, and two consecutive weeks for the sale of personal property. All expense of the levy, seizure, and sale must be added and collected as additional costs, and shall include, but not be limited to, the expense of taking possession of real or personal property, advertising, storage, identifying the boundaries of the property, and mailing certified notices. When the real property is divisible, the tax assessor, county treasurer, and county auditor shall ascertain that portion of the property that is sufficient to realize a sum upon sale sufficient to satisfy the payment of the taxes, assessments, penalties, and costs. In such cases, the officer shall partition the property and furnish a legal description of it."
Advertised property must be sold
SECTION 5. Section 12-51-50 of the 1976 Code is amended to read: "Section 12-51-50. The property duly advertised must be sold by the person officially charged with the collection of delinquent taxes at public auction at the courthouse on a legal sales date during regular hours for legal tender payable in full on the date of the sale. In case the defaulting taxpayer has more than one item advertised to be sold, as soon as sufficient funds have been accrued to cover all of the defaulting taxpayer's delinquent taxes, assessments, penalties, and costs, no further items may be sold."
Successful bidder at delinquent tax sale
SECTION 6. Section 12-51-60 of the 1976 Code is amended to read: "Section 12-51-60. The successful bidder at the delinquent tax sale shall pay legal tender to the person officially charged with the collection of delinquent taxes in the full amount of the bid on the day of the sale. Upon payment, the person officially charged with the collection of delinquent taxes shall furnish the purchaser a receipt for the purchase money and attach a copy of the receipt to the execution with the endorsement of his actions which must be retained by him. Expenses of the sale must be paid first and the balance of all delinquent tax sale monies collected must be turned over to the treasurer. All other monies received, including any excess due the defaulting taxpayer after payment of delinquent taxes, assessments, penalties, and costs, must be retained, paid out, and accounted for by the delinquent tax collector."
Failure to remit
SECTION 7. Section 12-51-70 of the 1976 Code is amended to read:
"Section 12-51-70. In case the successful bidder fails to remit in legal tender within the time specified, the person officially charged with the collection of delinquent taxes shall cancel that bid and duly readvertise the same property for sale, in the same manner, on a subsequent delinquent tax sale date. The defaulting bidder is liable for no more than three hundred dollars damages upon default, which may be collected by suit by the person officially charged with the collection of delinquent taxes in the name of the taxing authority."
Settlement of tax sale monies
SECTION 8. Section 12-51-80 of the 1976 Code is amended to read: "Section 12-51-80. The treasurer shall make full settlement of tax sale monies, within thirty days after the sale, to the respective political subdivisions for which the taxes were levied. Proceeds of the sales in excess thereof must be retained by the treasurer as otherwise provided by law."
Redemption of items of real estate
SECTION 9. Section 12-51-90 of the 1976 Code is amended to read: "Section 12-51-90. The defaulting taxpayer, any grantee from the owner, or any mortgage or judgment creditor may within twelve months from the date of the delinquent tax sale redeem each item of real estate by paying to the person officially charged with the collection of delinquent taxes, assessments, penalties, and costs, together with eight percent interest on the whole amount of the delinquent tax sale bid. If prior to the expiration of the redemption period, the purchaser assigns his interest in any real property purchased at a delinquent tax sale, the grantee from the successful bidder shall furnish the person officially charged with the collection of delinquent taxes a conveyance, witnessed, and notarized. The person officially charged with the collection of delinquent taxes shall replace the successful bidder's name and address with the grantee's name and address in the delinquent tax sale book."
Cancellation of sale
SECTION 10. Section 12-51-100 of the 1976 Code is amended to read: "Section 12-51-100. Upon the real estate being redeemed, the person officially charged with the collection of delinquent taxes shall cancel the sale in the tax sale book and note thereon the amount paid, by whom and when. The successful purchaser, at the delinquent tax sale, shall promptly be notified by mail to return the tax sale receipt to the person officially charged with the collection of delinquent taxes in order to be expeditiously refunded the purchase price plus the eight percent interest provided in Section 12-51-90."
No redemption period for personal property
SECTION 11. Section 12-51-110 of the 1976 Code is amended to read: "Section 12-51-110. For personal property, there is no redemption period subsequent to the time that the property is struck off to the successful purchaser at the delinquent tax sale. Upon payment by the successful purchaser and delivery of the duplicate warrant (i.e. tax receipt) with description and notation by the person officially charged with the collection of delinquent taxes, he shall deliver to the successful purchaser the following form properly executed which is his bill of sale and right of possession:
'Sold to _________ at Delinquent Tax Sale on________ ,
who is the successful purchaser of personal property sold for
delinquent taxes.
______________________
(Officer Charged with Tax Collection).'"
Notice
SECTION 12. Section 12-51-120 of the 1976 Code is amended to read: "Section 12-51-120. Neither more than forty-five days nor less than twenty days prior to the end of the redemption period for real estate sold for taxes, the person officially charged with the collection of delinquent taxes shall mail a notice by 'Certified Mail, return receipt requested--deliver to addressee only' to the owner of record immediately preceding the end of the redemption period at the best address of the owner available to the person officially charged with the collection of delinquent taxes that the real property described on the notice has been sold for taxes and if not redeemed by paying taxes, assessments, penalties, costs and eight percent interest on the bid price in the total amount of________ dollars on or before_______________
(twelve months from date of sale)
(date) ___________ ,
a tax title will be delivered to the successful purchaser at the tax sale. Under this chapter, the return of the certified mail 'undelivered' is not grounds for a tax title to be withheld or be found defective and ordered set aside or canceled of record."
Tax title
SECTION 13. Section 12-51-130 of the 1976 Code is amended to read: "Section 12-51-130. Upon failure of the defaulting taxpayer, any grantee from the owner, or any mortgage or judgment creditor, to redeem realty within the time period allowed for redemption, the person officially charged with the collection of delinquent taxes shall within thirty days or as soon thereafter as possible make a tax title to the purchaser or the purchaser's assignee. Delivery of the tax title to the clerk of court or register of mesne conveyances (RMC) is considered 'putting the purchaser (or assignee) in possession.' The tax title shall include, among other things, the name of the defaulting taxpayer, the date of the execution, the date the realty was posted and by whom, and the dates each certified notice was mailed to the party or parties of interest, to whom mailed and whether or not received by the addressee. The successful purchaser (or assignee) is responsible in the amount of fifteen dollars for the cost of the tax title plus any documentary stamps necessary to be affixed and recording fees. The successful purchaser (or assignee) shall pay the amounts to the person officially charged with the collection of delinquent taxes before delivery of the tax title to the clerk of court or RMC and upon payment the person officially charged with the collection of delinquent taxes is responsible for promptly transmitting the tax title to the clerk of court or RMC for recording and remitting the recording fee and documentary stamps cost. In case the tax sale of an item produced an overage in cash above the full amount due in taxes, assessments, penalties, and costs, the overage shall belong to the defaulting taxpayer to be claimed or assigned according to law. If neither claimed nor assigned within five years of date of public auction tax sale, the overage shall escheat to the general fund of the governing body. Prior to the escheat date unclaimed overages must be kept in a separate account and must be invested so as not to be idle and the governing body of the political subdivision is entitled to the earnings for keeping the overage. On escheat date the overage must be transferred to the general funds of the governing body."
Official may void tax sales
SECTION 14. Section 12-51-150 of the 1976 Code is amended to read: "Section 12-51-150. In the case that the official in charge of the tax sale discovers before a tax title has passed, the failure of any action required to be properly performed, the official may void the tax sale and refund the amount paid to the successful bidder. If the full amount of the taxes, assessments, penalties, and costs have not been paid, the property must be brought to tax sale as soon as practicable."
Evidence of good title
SECTION 15. Section 12-51-160 of the 1976 Code is amended to read: "Section 12-51-160. In all cases of tax sale the deed of conveyance, whether executed to a private person, a corporation, or a forfeited land commission, must be held and taken as prima facie evidence of a good title in the holder, that all proceedings have been regular and that all legal requirements have been complied with. No action for the recovery of land sold under the provisions of this chapter or for the recovery of the possession may be maintained unless brought within two years from the date of sale."
Contract for collection of taxes
SECTION 16. Section 12-51-170 of the 1976 Code is amended to read: "Section 12-51-170. A county and municipality may contract for the collection of municipal taxes by the county. When by contract a tax due a municipality is to be collected by the county, the provisions of this chapter are exercisable by the county official charged with the collection of the delinquent taxes. He may employ, appoint, or designate others to perform or carry out the provisions of the chapter."
Repeal
SECTION 17. Article 5 of Chapter 49 of Title 12 and Sections 12-51-10, 12-51-20, and 12-51-30 are repealed.
Time effective
SECTION 18. This act is effective as of January first of the year next following its approval by the Governor and must be the procedure to collect all existing and future delinquent taxes. Any county that is not able to adopt the provisions of this act by the following year may be granted an additional year to comply, if approved by the Comptroller General, upon a request for an extension of time made jointly by the auditor, treasurer, and tax collector of that county.