Bill 4427

                    Current Status

Bill Number:               4427
Ratification Number:       567
Act Number                 474
Introducing Body:          House
Subject:                   Special tax assessments by counties for
                           certain properties

(A474, R567, H4427)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 4-9-195 AND 5-21-140 SO AS TO AUTHORIZE THE GOVERNING BODIES OF COUNTIES AND MUNICIPALITIES TO GRANT SPECIAL PROPERTY TAX ASSESSMENTS TO "REHABILITATED HISTORIC PROPERTIES" AND "LOW AND MODERATE INCOME RENTAL PROPERTIES".

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

Special tax assessments by counties for certain properties

SECTION 1. The 1976 Code is amended by adding:

"Section 4-9-195. (A) The governing body of any county by ordinance may grant the special property tax assessments authorized by this section to real property which qualifies as either 'rehabilitated historic property' or as 'low and moderate income rental property' in the manner provided in this section. All qualifying property must be certified as such by the county governing body and upon this certification, the property must be assessed as follows:

(1) for rehabilitated historic property an assessment for two years equal to four percent of the appraised value of the property at the time the certification was made, and an assessment for eight years equal to the greater of forty percent of four percent of the appraised value of the property after rehabilitation or the tax originally assessed on the uncertified property;

(2) for low and moderate income rental property an assessment for two years equal to six percent of the appraised value of the property at the time the certification was made, and an assessment for eight years equal to the greater of forty percent of six percent of the appraised value of the property after rehabilitation or the tax originally assessed on the uncertified property; and

(3) the special assessment shall only begin in the current or future tax years as provided for in this section. In no instance may the special assessment be applied retroactively.

(B) 'Rehabilitated historic property' is eligible for certification if the following conditions are met:

(1) the owner of the property applies for and is granted historic designation by the county governing body based on one or more of the following reasons:

(a) the property is listed in the National Register of Historic Places;

(b) the property is designated as an historic property by the county governing body and is at least fifty years old; or

(c) the property is at least fifty years old and is located in an historic district designated by the county governing body;

(2) the rehabilitation work is approved by the Department of Archives and History or its designee as appropriate for the historic building and the historic district in which it is located;

(3) within two years after receiving the approval of the rehabilitation plans, the owner or his estate rehabilitates the building, with expenditures for rehabilitation exceeding fifty percent of the appraised value of the building in the case of owner-occupied property, or with expenditures for rehabilitation exceeding the appraised value of the building in the case of income-producing real property;

(4) the owner or estate of any property certified as 'historic' takes no actions which cause the property to lose the qualities and features which made it eligible for certification. The Department of Archives and History or its designee shall have the authority to rescind approval of the rehabilitation work in these cases, and in this event the property becomes immediately ineligible for the special tax assessments provided for this type of property;

(5) rehabilitation was commenced on the property after January 1, 1987.

(C) 'Low and moderate income rental property' is eligible for certification if:

(1) the property provides accommodations under the Section 8 Program as defined in the United States Housing Act of 1937 and amended by the Housing and Community Act of 1974 for low and moderate income families and persons as defined by Section 31-13-170(p);

(2) in the case of income-producing real property, the expenditures for rehabilitation exceed the appraised value of the property;

(3) the owner or estate of any property certified as 'low and moderate income rental property' takes no actions which cause the property to be unsuitable for such a designation. The county governing body granting the initial certification has the authority to decertify property in these cases, and the property becomes immediately ineligible for the special tax assessments provided for this type of property;

(4) rehabilitation was commenced on the property after January 1, 1987;

(5) if the low and moderate income housing rehabilitation is located in an area designated by the local government as a Low and Moderate Housing Rehabilitation District;

(6) if the property qualifies as 'historic' as defined in subsection (B)(1)(a), (b), or (c), then the rehabilitation work must be approved by the Department of Archives and History as provided in subsections (B) and (D).

(D) The Department of Archives and History, or its designee, has the authority to approve rehabilitation work in the county as qualifying for the special tax assessment provided for 'rehabilitated historic property', and shall provide for procedures for application, consideration, and appeal through appropriate regulations. All requests for approval must be accompanied by a nonrefundable application fee of one hundred dollars. The fee must be deposited in the accounts of the Department of Archives and History, except that in counties where the department has delegated the approval responsibility to a local governmental agency or department, the local governmental agency or department shall receive the application fee.

(E) When property has been certified and assessed as rehabilitated historic property, or low or moderate income rental property, it remains so certified and must be granted the special assessment until the property becomes disqualified by any one of the following:

(1) written notice by the owner to the county to remove the preferential assessment;

(2) sale or transfer of ownership during the ten-year period of special assessment, other than in ordinary course within probate proceedings;

(3) removal of the historic property designation by the county governing body;

(4) decertification of the property by the local governing body as low or moderate income rental property for persons and families of moderate to low income as defined by Section 31-13-170(p);

(5) rescission of the approval of the rehabilitation work by the Department of Archives and History because of alterations or renovations by the owner or his estate which cause the property to no longer possess the qualities and features which made it eligible.

Notification of any change affecting eligibility must be given immediately to the appropriate county taxing and assessing authorities.

(F) If property is certified as 'rehabilitated historic property' or as 'low and moderate income rental property' before the first day of April of a particular year, the special assessment authorized by this section is effective for that year. Otherwise it is effective beginning with the following year, provided the owner of the real property completes the proper application approved by the Department of Archives and History with the appropriate agency by April fifteenth of the particular year. A county governing body may designate an agency or department of the county to perform its functions and duties under this section in its discretion.

(G) Once the governing body has granted the special property tax assessments authorized by this section, the owner of the property shall make application annually to the auditor for the special assessment provided for by this section."

Special tax assessments by municipalities for certain properties

SECTION 2. The 1976 Code is amended by adding:

"Section 5-21-140. The powers and authorities conferred upon county governing bodies by Section 4-9-195 are also conferred upon municipal governing bodies, mutatis mutandi."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Approved the 14th day of May, 1990.