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COMMITTEE REPORT
April 28, 1999
H. 3359
Introduced by Reps. Dantzler, Bailey, R. Smith, Hinson, Rodgers, Witherspoon, Chellis, McKay, McGee, Law, Simrill, Rhoad, Littlejohn and Bowers
S. Printed 4/28/99--H.
Read the first time January 26, 1999.
To whom was referred a Bill (H. 3359), to amend the Code of Laws of South Carolina, 1976, by adding Section 12-37-224 so as to provide that a motor home, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass:
HENRY E. BROWN, JR., for Committee.
REVENUE IMPACT1
This bill would have no impact on state revenues. Local revenues would decrease by an estimated $1,400,000 in FY 1999-2000 if local governments do not adjust their millage to make up the lost property tax revenue.
Explanation
This bill would reduce the assessment ratio for motor homes that qualify for an interest deduction under the Internal Revenue Code. As defined in the South Carolina Code of Laws 56-15-10(q) motor home means a vehicular unit designed to provide temporary living quarters built into an integral part of or permanently attached to a self-propelled motor vehicle chassis or van which unit contains permanently installed independent life support systems other than low voltage meeting the American National Standards Institute (ANSI) A119.2 Standard for Recreational Vehicles and provides at least four of the following facilities: cooking with onboard power source; gas or electric refrigerator; toilet with exterior evacuation; heating or air conditioning with onboard power source separate from the vehicle engine; a potable water supply system including a faucet, sink, and water tank with an exterior service connection; separate 110-125 volt electric power supply. Based on data from the Department of Public Safety and motor home dealers, we estimate that there are approximately 3,200 motor homes that would qualify for this deduction. Based on data from motor home dealers in the state, we estimate the average fair market value of these motor homes to be $35,000. Changing the assessment ratio of these motor homes would result in an estimated property tax revenue loss of $1,400,000 for local governments.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A MOTOR HOME ON WHICH THE INTEREST PORTION OF INDEBTEDNESS IS DEDUCTIBLE PURSUANT TO THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND RESIDENCE IS ALSO A PRIMARY OR SECOND RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAXATION IN THIS STATE AND IS CONSIDERED REAL PROPERTY RATHER THAN PERSONAL PROPERTY FOR PROPERTY TAX PURPOSES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 12-37-224. A motor home on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation in this State and is considered real property rather than personal property for property tax purposes."
SECTION 2. Upon approval by the Governor this act is effective for property tax years beginning after 1998.
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