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Indicates Matter Stricken
Indicates New Matter
RECALLED
March 22, 2000
S. 518
Introduced by Senators Land, McGill, Saleeby, Hayes, Moore, Rankin, Gregory, Peeler and Reese
S. Printed 3/22/00--S.
Read the first time February 23, 1999.
REVENUE IMPACT
This bill has no impact on state revenues. The impact on local revenues, if any, would be negligible.
Explanation
This bill changes the interest rate on the redemption of property sold for delinquent taxes. Under current law the interest rate is eight percent on the whole amount of the delinquent tax sale bid if the property is redeemed in the first six months of the redemption period. If the property is redeemed in the last six months of the redemption period, the interest rate is twelve percent on the whole amount of the delinquent tax sale bid. This bill would change the interest rate to three percent if the property is redeemed in the first three months of the redemption period, six percent if the property is redeemed in months four, five, or six of the redemption period, nine percent if the property is redeemed in months seven, eight, or nine of the redemption period, twelve percent if the property is redeemed in the last three months of the redemption period. If the property is redeemed and the sale is cancelled, Section 12-51-100 states that the successful purchaser at the delinquent tax sale will be refunded the purchase price plus the interest provided in Section 12-51-90. In other words, the interest that is charged in this section does not go to the counties. It goes to the successful bidder from the delinquent tax sale.
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 SECTION 12-51-90, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDEMPTION OF PROPERTY SOLD FOR DELINQUENT TAXES, SO AS TO PROVIDE THAT INTEREST ON THE WHOLE AMOUNT OF THE TAX SALE BID IS AT THE RATE OF THREE, SIX, NINE, OR TWELVE PERCENT, RISING FOR EACH THREE MONTHS OF THE REDEMPTION PERIOD RATHER THAN A RATE OF EIGHT OR TWELVE PERCENT ON THE WHOLE AMOUNT REGARDLESS OF WHEN THE PROPERTY IS REDEEMED, AND TO PROVIDE THAT INTEREST DUE MUST NOT EXCEED THE BID ON THE PROPERTY SUBMITTED BY THE FORFEITED LAND COMMISSION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-51-90 of the 1976 Code, as last amended by Act 332 of 1996, is further amended to read:
"Section 12-51-90. (A) The defaulting taxpayer, any grantee from the owner, or any mortgage or judgment creditor may within twelve months from the date of the delinquent tax sale redeem each item of real estate by paying to the person officially charged with the collection of delinquent taxes, assessments, penalties, and costs, together with eight percent interest as provided in subsection (B) of this section on the whole amount of the delinquent tax sale bid. In the case of a redemption in the last six months of the redemption period, for all real property except that classified pursuant to Section 12-43-220(c) at the time of the delinquent sale, the applicable rate of interest is twelve percent. If prior to the expiration of the redemption period, the purchaser assigns his interest in any real property purchased at a delinquent tax sale, the grantee from the successful bidder shall furnish the person officially charged with the collection of delinquent taxes a conveyance, witnessed and notarized. The person officially charged with the collection of delinquent taxes shall replace the successful bidder's name and address with the grantee's name and address in the delinquent tax sale book.
(B) Interest is due on the whole amount of the delinquent tax sale based on the month during the redemption period the property is redeemed according to the following schedule:
Month of Redemption Period Interest Imposed
Property Redeemed
First three months three percent
Months four, five, and six six percent
Months seven, eight, and nine nine percent
Last three months twelve percent
However, in every redemption, the amount of interest due must not exceed the amount of the bid on the property submitted on behalf of the forfeited land commission pursuant to Section 12-51-55."
SECTION 2. This act takes effect upon approval by the Governor and applies to redemptions of property sold for delinquent taxes at sales held on or after that date.
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