Bill 3652

                    Current Status

Bill Number:               3652
Ratification Number:       456
Act Number                 419
Introducing Body:          House
Subject:                   Collection of delinquent taxes

(A419, R456, H3652)

AN ACT TO AMEND SECTION 5-7-300, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE COLLECTION OF DELINQUENT AD VALOREM PROPERTY TAXES BY MUNICIPALITIES, SO AS TO DELETE THE PROVISIONS RELATING TO THE COLLECTION OF REASONABLE EXPENSES NOT TO EXCEED FIVE PERCENT OF THE DELINQUENT TAXES AND PENALTIES INCURRED IN CONNECTION WITH EXECUTIONS AND ADD A PROVISION WHICH ALLOWS A MUNICIPALITY TO ADD THE EXPENSE OF THE LEVY, SEIZURE, AND SALE AND COLLECTED AS ADDITIONAL EXECUTION COSTS TO INCLUDE THE EXPENSE OF TAKING POSSESSION OF REAL OR PERSONAL PROPERTY, ADVERTISING, STORAGE, IDENTIFYING THE BOUNDARIES OF THE PROPERTY, AND MAILING CERTIFIED NOTICES.

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

Collection of delinquent taxes

SECTION 1. Section 5-7-300 of the 1976 Code, as added by Act 19 of 1987, is amended to read:

"Section 5-7-300. All municipalities of the State may by ordinance provide a procedure for the collection of delinquent real and personal property taxes, except taxes on motor vehicles. The municipal governing body may provide for a penalty for nonpayment of these taxes payable when the taxes become delinquent not exceeding fifteen percent of the taxes levied. The property taxes levied, with any penalty added for nonpayment when due and costs of execution, constitute a lien upon the property upon which the tax is levied until paid, paramount to all other liens, except the lien for county and state taxes. For the purpose of collecting delinquent real and personal property taxes, the municipal governing body may enforce payment against the property of delinquent property taxpayers to the same extent, and substantially in the same manner, as is provided by law for the collection of county property taxes and penalties, except that a municipal governing body may determine the municipality's tax year, penalty dates, and the amount of penalty to be added on the penalty dates. Executions to enforce the payment of the taxes and penalties must be issued under the seal of the municipality and directed to the person designated by the municipal governing body for that purpose and all sales under and by virtue of that execution must take place at a public place designated by ordinance in the municipality. All expense of the levy, seizure, and sale must be added and collected as additional execution costs, and includes, but is not limited to, the expense of taking possession of real or personal property, advertising, storage, identifying the boundaries of the property, and mailing certified notices. A municipality may contract with the county for the collection of municipal taxes or for the collection of delinquent municipal taxes upon such terms and conditions as may be mutually agreeable to both the municipality and the county. If a municipality contracts with a county for collection of municipal taxes or delinquent municipal taxes, then the provisions of state law which prescribe the procedure for collection of property taxes by counties must be followed. A municipality may by ordinance contract with an individual, firm, or organization to assist the municipality in collecting property or business license taxes."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.