Bill 2564

                    Current Status

Bill Number:               2564
Ratification Number:       268
Act Number                 188
Introducing Body:          House
Subject:                   Ad valorem property taxes on motor
                           vehicles

(A188, R268, H2564)

AN ACT TO AMEND SECTIONS 12-37-2610, 12-37-2650, AND 12-37-2730, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AD VALOREM PROPERTY TAXES ON MOTOR VEHICLES, SO AS TO PERMIT MOTOR VEHICLES REGISTERED UNDER THE INTERNATIONAL RECIPROCITY PLAN TO PAY THEIR TAXES SEMIANNUALLY.

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

Tax year for motor vehicles

SECTION 1. Section 12-37-2610 of the 1976 Code is amended to read:

"Section 12-37-2610. The tax year for motor vehicles begins with the last day of the month in which a license required by Section 56-3-110 is issued and ends on the last day of the month in which the license expires or is due to expire. No license may be issued for motor vehicles until the ad valorem tax is paid for the year for which the license is to be issued. Motor vehicles registered under the International Reciprocity Plan may pay ad valorem property taxes on a semiannual basis. The provisions of this section do not apply to sales of motor vehicles by a licensed motor vehicle dealer that do not involve the transfer of a license plate. Notice of the sales must be furnished to the Department along with other documents necessary for the registration and licensing of the vehicle concerned. The notice must be received by the Department as a prerequisite to the registration and licensing of the vehicle and must include the name and address of the purchaser, the vehicle identification number, and the year and model of the vehicle. The notice must be an original and one copy, and the copy must be provided by the Department to the auditor of the county in which the vehicle is taxable. All ad valorem taxes on a vehicle are due and payable one hundred twenty days from the date of purchase. The notice and the time in which to pay the tax applies to motor vehicles that are serviced and delivered by a licensed motor vehicle dealer for the benefit of an out-of-state dealer."

Insurance and tax notices and paid receipts; delegation of collection of motor vehicle taxes

SECTION 2. Section 12-37-2650 of the 1976 Code is amended to read:

"Section 12-37-2650. The auditor shall prepare a tax notice for all vehicles owned by the same person and licensed at the same time. A notice must be in four parts and must describe the motor vehicle by name, model, and identification number. The notice must set forth the assessed value of the vehicle, the millage, the taxes due on each vehicle, and the license period or tax year. The notice must be delivered to the county treasurer and it is the treasurer's responsibility to collect or receive payment of the taxes. One copy of the notice must be in the form of a bill or statement for the taxes due on the motor vehicle and, when practical, the treasurer shall mail that copy to the owner or person having control of the vehicle. When the tax is paid the treasurer shall issue the taxpayer two copies of the paid receipt. One copy must be delivered by the taxpayer to the South Carolina Department of Highways and Public Transportation with the application for the motor vehicle license and the other copy must be retained by the treasurer. The auditor shall maintain a separate duplicate for motor vehicles. No license may be issued without the receipt being attached to the application or a copy of the notification required by Section 12-37-2610. Motor vehicles registered under the International Reciprocity Plan may pay ad valorem property taxes on a semiannual basis, and a proportional receipt must be issued by the treasurer subject to penalties in Section 12-37-2730.

The treasurer, tax collector, or other official charged with the collection of ad valorem property taxes in each county may delegate the collection of motor vehicle 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 12-45-70, must contain the name and office of the treasurer or tax collector of the county and must 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 is authorized to accept certification in lieu of the tax receipt given to the taxpayer if certification contains information required by this section."

Penalties

SECTION 3. Section 12-37-2730 of the 1976 Code is amended to read:

"Section 12-37-2730. It is unlawful for any person to use the treasurer's receipt to obtain motor vehicle license plates unless all municipal personal property taxes due in the county of his residence on any vehicles now or previously owned by the applicant have been paid. Any person who knowingly violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars. Each day's violation constitutes a separate offense.

The above penalty is in addition to any other penalties prescribed by law for failure to pay municipal taxes.

The verbatim text of the first paragraph of this section must be printed or stamped upon the treasurer's receipt. The owner of any motor vehicle registered under the International Reciprocity Plan who opts to pay semiannually and fails to pay semiannual payments as provided in this chapter is not permitted to relicense the vehicle until all taxes are paid and shall forfeit any further privilege to pay semiannually."

Time effective

SECTION 4. This act takes effect upon approval by the Governor.