Current Status Bill Number:4729 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960312 Primary Sponsor:Robinson All Sponsors:Robinson, Kirsh, Koon, Marchbanks and Trotter Drafted Document Number:gjk\22455sd.96 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Delinquent property taxes, collection of
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19960312 Introduced, read first time, 30 HWM
referred to Committee
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TO AMEND TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION BY ADDING CHAPTER 52 SO AS TO ESTABLISH THE PROCEDURES WHICH SHALL BE USED BY LOCAL GOVERNMENTS TO COLLECT DELINQUENT PROPERTY TAXES EXCEPT FOR DELINQUENT TAXES ON MOTOR VEHICLES; AND TO REPEAL CHAPTER 51 OF TITLE 12 RELATING TO THE ALTERNATE PROCEDURE FOR THE COLLECTION OF PROPERTY TAXES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that the current procedures and laws used to collect delinquent taxes particularly on real property are inadequate to encourage timely payment of property taxes. The General Assembly further finds that the failure of taxpayers to make timely payment of property taxes increases the tax burden on those taxpayers who make timely payments. It is the intent and purpose of this act to encourage the payment of property taxes prior to delinquency and to provide a method for local governments to collect delinquent taxes in a timely and efficient manner and thereby reduce the burden placed on taxpayers who make timely payments. The procedures and methods provided in this act do not apply to the collection of property taxes on motor vehicles.
SECTION 2. Title 12 of the 1976 Code is amended by adding:
Section 12-52-100. 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 owner of record at the best address available which is either the address shown on the deed conveying the property to him, the property address, or such other corrected or forwarding address that the owner of record has filed with the appropriate tax authority and to a known grantee of the delinquent taxpayer of the property on which the delinquency exists. The notice must specify that if the taxes, penalties, assessments, and costs are not paid, a tax lien on each parcel of real property must be sold for the taxes, assessments, penalties, and costs thereon or, if the property is personal, that the personal property must be advertised and sold to satisfy the delinquency.
(b) If the property subject to the execution is real property, and the taxes remain unpaid after thirty days from the date of mailing of the delinquent notice, or as soon thereafter as practicable, prepare a list of all real property upon which taxes are delinquent, describing the real property by including the delinquent taxpayer's name, the description of the property, a reference to the county auditor's map-block-parcel number being sufficient for a description of realty. The list must be accompanied by a notice stating that a tax lien on each parcel of real property will, on a day specified, and succeeding days, be sold by him at public auction at a place to be designated for the delinquent taxes, assessments, penalties, and costs.
(c) If the property subject to the execution is real property and the taxes remain unpaid after thirty days from the mailing of the delinquent notice, or as soon thereafter as practicable, post a notice at one or more conspicuous places on the premises reading: `This property will be sold for delinquent taxes by the person officially charged with the collection of delinquent taxes of (name of political subdivision).'
(d) If the property subject to the execution is personal property and 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 personal property as is necessary to satisfy the payment of the taxes, assessments, penalties, and costs. 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 personal property must be advertised and sold for delinquent property taxes, assessments, penalties, and costs. The return receipt for the certified mail notice is equivalent to `levying by distress'.
(e) In the case of personal property, in the event the `certified mail' notice has been returned, take exclusive physical possession of the personal property against which the taxes, assessments, penalties, and costs were assessed. 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 it is 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 homes's annexation to the land on which it is situated.
(f) In the case of real property, mail a notice of the proposed sale of the tax lien for delinquent property taxes, penalties, assessments, and costs to the owner of record by certified mail, return receipt requested -- deliver to addressee only at the best address available which is either the address shown on the deed conveying the property to him, the property address, or such other corrected or forwarding address that the owner of record has filed with the appropriate tax authority and to a known grantee of the delinquent taxpayer of the property on which the tax lien and delinquency exists. The notice must identify the property subject to tax lien sale and must include the date, time, and place for the proposed sale.
(g) Advertise the sale at public auction of the real property tax lien or personal property. 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 personal property, advertising, storage, identifying the boundaries of the property, and mailing certified notices.
(h) In the case of real property, partition the property and furnish a legal description of it when the property is divisible and the tax assessor, county treasurer, and county auditor ascertain that portion of the property that is sufficient to realize a sum upon the sale of the real property tax lien sufficient to satisfy the payment of the taxes, assessments, penalties, and costs.
Section 12-52-110. (A) The personal property or real property tax lien 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.
(B) On the day designated in the list and notice the official charged with the collection of delinquent taxes shall commence the sale of all tax liens on real property described in the list and notice on which the taxes, assessments, penalties, and costs have not been paid, and shall continue the sale from day to day, Saturdays, Sundays, and holidays excluded, until the tax lien on each parcel has been sold. If there is no bid for any real property tax lien offered, the official shall pass it for the time and shall reoffer it at the beginning of the sale on the next day until all real property tax liens are sold or until the official becomes satisfied that no more sales can be made, at which time the officer shall assign to the forfeited land commission the real property tax liens remaining unsold for the amount of taxes, assessments, penalties, and charges, and issue to the forfeited land commission a certificate of purchase as provided in other cases. Where two or more lots or parcels are assessed as one parcel the tax liens on them may be sold as a single tax lien on one parcel.
(C) The officer charged with the duty to sell real property and mobile or manufactured housing for nonpayment of ad valorem property taxes shall submit a bid on behalf of the forfeited land commission equal to the amount of all unpaid property taxes, penalties, and costs including taxes levied for the year in which the redemption period begins.
(D) If for any reason a real property tax lien or personal property cannot be advertised and sold at the time provided by this chapter, the official charged with the collection of delinquent taxes shall make the sale at any subsequent day on which it can be made, allowing sufficient time for publication and posting of such list and notice as provided by this chapter.
Section 12-52-120. (A) When a real property tax lien is offered for sale as provided in this chapter, it shall be sold to the highest bidder. A certificate of purchase issued to a person pursuant to this subsection shall cite as consideration the whole amount of the delinquent tax sale bid.
(B) When personal property is offered for sale as provided in this chapter, it must be sold to the highest bidder.
(C) The official charged by law with the collection of delinquent taxes may sell and transfer real property tax liens at public or private sale at the price and terms determined and approved by the official charged with the collection of delinquent taxes, in lot blocks of the aggregate principal amount of not less than twenty thousand dollars. Prior to the sale of a real property tax lien pursuant to this subsection, notice shall be provided to the delinquent taxpayer as provided in Section 12-52-100(f). The transferee of real property tax liens sold and transferred as provided in this subsection shall have the same rights, powers, liens, and priorities as do the transferees of single tax liens purchased in accordance with this chapter.
(D) Whenever the official charged with the collection of delinquent taxes determines to sell and transfer real property tax liens as provided in subsection (C), a schedule shall be prepared of the tax liens to be so sold and transferred, together with the name of the person to whom or to which the tax liens are to be transferred and the price determined and approved by the officer charged with the collection of delinquent taxes. Upon receipt from the purchaser so designated of the price for the real property tax liens, the officer charged with the collection of delinquent taxes shall transfer and deliver the tax liens to the person making the payment. The certificate of purchase issued to the person shall recite as consideration for the transfer of the certificate of purchase the full amount of the taxes, assessments, penalties, and costs due on the real property tax liens. A certificate of purchase for each real property tax lien included in a block shall be issued to the purchaser of a lot block.
(E) The transfer of a real property tax lien shall vest in the transferee and his successors and assigns the full priority of the lien and all of the rights and powers for enforcing the tax lien and for collecting the full amount of the tax liens including any assessments, penalties, costs, and interest which were at the time of the transfer possessed or held by the county by, for, or in the name of which the executions were issued.
Section 12-52-130. At the time of redemption of a real property tax lien, the person redeeming the real property shall pay sixteen percent interest on the whole amount of the delinquent tax sale bid unless otherwise provided in this chapter.
Section 12-52-140. The successful purchaser of the real property tax lien or personal property shall pay legal tender to the person officially charged with the collection of delinquent taxes in the full amount of the purchase price on the day of the sale. Upon payment, the person officially charged with the collection of delinquent taxes shall make, execute, and deliver a certificate of sale to each purchaser of a tax lien at the sale for delinquent taxes or to each assignee thereafter. 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. Upon receipt of the funds, the treasurer shall immediately mark the public tax records regarding the property sold as follows: Paid by tax sale held on (insert date). 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. In case the tax sale 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 the date of 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.
Section 12-52-150. (A) The certificate of purchase shall describe the real property on which a tax lien is sold as it is described in the record of tax lien sales and shall recite the amount of all taxes, assessments, penalties, and costs for which the tax lien was sold, together with the rate of interest payable in order to redeem. The certificate may be in the following form:
I hereby certify that at a sale of tax liens on real estate situated in said county and state, for delinquent taxes, held at the county courthouse in said county on the ________________ day of ____________, 19__, in accordance with law, __________________ was the purchaser of a tax lien on that certain property described as follows, to wit:
Delinquent Taxpayer's Name:
Description of Property:
Auditor's Map-Block-Parcel Number:_______________________
Amount Paid:__________________________________________
for which the purchaser paid the amount of money set forth above for the said real property, on which amount the purchaser shall receive at redemption sixteen percent interest on the whole amount set forth above.
_________________________
Delinquent Tax Collector
(Seal) County of ____________
State of South Carolina'.
(B) The certificate of purchase, whether issued to the forfeited land commission or to a person shall be assignable by endorsement, and an assignment when noted on the record of tax lien sales shall vest in the assignee all the right and title of the original purchaser.
Section 12-52-160. In case the successful purchaser fails to remit in legal tender within the time specified, the person officially charged with the collection of delinquent taxes shall cancel that purchase, and proceed to resell the real property tax lien or personal property if the sale has not been closed or if the sale has been closed the official shall duly re-advertise the same personal property or real property tax lien for sale, in the same manner, on a subsequent delinquent tax sale date. The defaulting purchaser 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.
Section 12-52-170. 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.
Section 12-52-180. The official charged with the collection of delinquent taxes shall make and maintain a correct record of all sales of real property tax liens, which shall be known as the record of real property tax lien sales, containing:
(1) the date of sale;
(2) description of each parcel on which a tax lien was sold;
(3) auditor's map-block-parcel number;
(4) name of the owner, if known;
(5) name of purchaser;
(6) total amount of taxes, assessments, penalties, and costs for which each tax lien was sold;
(7) the amount of subsequent taxes and interest paid by the purchaser;
(8) the name of the assignee and the date of assignment of certificate;
(9) name of person redeeming and date of redemption;
(10) total amount paid for redemption;
(11) name of person to whom conveyed and date of deed.
Section 12-52-190. When a certificate of purchase is lost, destroyed, or wrongfully withheld from the rightful owner, the purchaser of the certificate must file a notarized affidavit with the official charged with the collection of delinquent taxes attesting to the loss of the certificate. Upon presentation of the notarized affidavit, the official charged with the collection of delinquent taxes shall issue to the holder thereof an exact duplicate of the certificate of purchase.
Section 12-52-200. On or after the seventeenth day of March of each year any person desiring to pay subsequent taxes, assessments, penalties, and costs then due upon the real property for which the person holds a certificate of purchase shall exhibit the certificate to the official charged with the collection of delinquent taxes who shall endorse thereon the amount of the subsequent taxes, assessments, penalties, and costs paid and the date of payment. The official charged with the collection of delinquent taxes shall enter the payment in the record of real property tax lien sales kept by the official as provided in this chapter.
Section 12-52-210. The certificate of purchase or its certified copy is prima facia evidence of the correct performance and regularity of all acts pertaining to the real property tax lien sale and the validity and enforceability of the tax lien.
Section 12-52-220. The defaulting taxpayer, any grantee from the owner, or any mortgage or judgment creditor, within twelve months from the date of the delinquent tax lien sale, may redeem each item of real property by paying to the person officially charged with the collection of delinquent taxes, assessments, penalties, and costs, the amount shown on the certificate of purchase as the `amount paid' plus sixteen percent interest on the whole amount paid together with the amount of all taxes accruing on the real property after the sale and paid by the purchaser and endorsed on the certificate of purchase, with sixteen percent interest on the whole amount of the subsequent taxes. If the taxes accruing on the real property after the sale of the tax lien have not been paid by the purchaser and endorsed on the certificate of purchase, then the amount of all taxes accruing on the real property shall be added to the amount necessary to redeem the property.
Section 12-52-230. (A) Notwithstanding the provisions of Section 12-52-250, the owner or lienholder of any mobile home or manufactured home may redeem the property as provided in Sections 12-52-220, 12-52-240, and 12-52-260. For purposes of this chapter, `mobile or manufactured home' is defined in Section 12-43-230(b) or 40-29-20(9), as applicable.
(B) In order for the owner of or lienholder on the `mobile home' or `manufactured home' to redeem his property as permitted in this section, the mobile or manufactured home subject to redemption must not be removed from its location at the time of the delinquent tax sale for a period of twelve months from the date of the sale unless the owner is required to move it by the person other than himself who owns the land upon which the mobile or manufactured home is situated. In this event, the owner of the mobile or manufactured home must notify the purchaser and the delinquent tax collector of the new location of the mobile or manufactured home, which new location also must be in this State. If the owner moves the mobile or manufactured home in violation of this section, he is guilty of a misdemeanor and, upon conviction, must be punished by a fine not exceeding one thousand dollars or imprisoned not exceeding one year, or both. In addition to the other requirements and payments necessary for an owner of a mobile or manufactured home to redeem his property after a delinquent tax sale, the defaulting taxpayer or lienholder also must pay rent to the purchaser at the time of redemption an amount not to exceed one-twelfth of the taxes for the last completed property tax year, exclusive of penalties, costs, and interest, for each month between the sale and redemption. However, the monthly rental, when calculated as provided in this section, must not be less than ten dollars. For purposes of this rent calculation, more than one-half of the days in any month counts as a whole month.
Section 12-52-240. Upon the real estate being redeemed, the person officially charged with the collection of delinquent taxes shall issue a certificate of redemption to the person redeeming the property and cancel the sale in the tax sale book and note thereon the amount paid, by whom and when. The certificate of redemption shall describe the property on which the real property tax lien is redeemed, give the date of redemption, the amount paid, and by whom redeemed. The holder of record of the certificate of purchase shall promptly be notified by mail to return the certificate of purchase to the person officially charged with the collection of delinquent taxes in order to be expeditiously refunded the amount paid plus interest and costs as provided in this chapter. The official charged with the collection of delinquent taxes, on demand of any person entitled to redemption money held by the official, shall pay the money to that person upon surrender of the certificate of purchase for the redeemed tax lien.
Section 12-52-250. 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)'.
Section 12-52-260. Neither more than forty-five days nor less than twenty days prior to the end of the redemption period for a real estate tax lien 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 tax lien on real property described on the notice has been sold for taxes and if not redeemed by paying taxes, assessments, penalties, costs, and sixteen percent interest on the whole amount paid on or before twelve months from date of sale, a tax title will be delivered to the successful purchaser at the tax lien 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.
Section 12-52-270. 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 holder of record of the certificate of purchase. Delivery of the tax title to the clerk of court or register of mesne conveyance 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, 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 holder of record of the certificate of purchase 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 holder of record of the certificate of purchase 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 register of mesne conveyances 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 register of mesne conveyances for recording and remitting the recording fee and documentary stamps cost.
Section 12-52-280. If a warrant, which has been filed with the clerk of court in any county, is determined by the Department of Revenue and Taxation to have been issued and filed in error, the clerk of court, upon notification by the Department of Revenue and Taxation, must remove the warrant from its book.
Section 12-52-290. In case the official in charge of the real property tax lien sale discovers before a tax title has passed, the failure of any action required to be properly performed or that by mistake of the county treasurer, auditor, assessor, or the official charged with the collection of delinquent taxes or as a result of double assessment, a real property tax lien has been sold on property on which no tax was due at the time or when the tax lien is otherwise determined to be invalid or unenforceable, the official shall void the tax lien sale and refund the amount paid to the holder of record of the certificate of purchase. If the full amount of the taxes, assessments, penalties, and costs have not been paid, the property must be brought to tax lien sale as soon as practicable.
Section 12-52-300. The provisions of Sections 12-49-210 through 12-49-330, inclusive, relating to notice to mortgagees of proposed tax sales and of tax sales of property covered by their respective mortgages are adopted as a part of this chapter.
Section 12-52-310. 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.
Section 12-52-320. 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."
SECTION 3. Chapter 51 of Title 12 of the 1976 Code is repealed except that this repeal shall in no way affect the validity of any tax sale conducted pursuant to Chapter 51 of Title 12 and shall not prevent the continuation of a suit or claim brought before the effective date of this act.
SECTION 4. 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 implement and comply with the provisions of Chapter 52 of Title 12 by January first of 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.