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COMMITTEE REPORT
April 23, 2003
H. 3963
Introduced by Reps. Clemmons, Wilkins, Harrell, Harrison, Barfield, J. Brown, Cato, Edge, Keegan, Townsend, Viers and Witherspoon
S. Printed 4/23/03--H.
Read the first time April 9, 2003.
To whom was referred a Bill (H. 3963) to amend the Code of Laws of South Carolina, 1976, by adding Section 12-37-680 so as to allow a county by ordinance to require the listing of improvements to real property, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking Section 12-36-680(A) as contained in SECTION 1, and inserting:
/ (A) Notwithstanding any other provisions of law, the governing body of a county by ordinance may require changes in the appraised value and use of real property attributable to structural improvements on the real property to be listed for taxation with the auditor within thirty days following the day upon which the improvements are completed and fit for the intended use. /
Renumber sections to conform.
Amend title to conform.
Majority favorable. Minority unfavorable.
ROBERT W. HARRELL, JR. HERB KIRSH
For Majority. REX F. RICE
For Minority.
REVENUE IMPACT 1/
This bill is not expected to have any impact on state revenues. Local property tax collections could experience a $ 15 million one-time windfall in the first year and an additional $ 4.4 million one-time windfall in the second year if all counties adopted an ordinance allowed pursuant to this bill.
Explanation
Under current law, Section 12-37-610 essentially states each person is liable for property taxes on real property that was on the public records as of December thirty-first of the preceding tax year. Section 12-37-670 states no new structure shall be listed or assessed until it is completed and fit for the use for which it is intended. This bill gives counties the option of requiring changes in the appraised or use value of real property attributable to improvements on the real property to be listed for taxation with the auditor within thirty days following the day upon which the improvements are completed and fit for the intended use. The property taxes for the year the improvements are listed would be prorated based on the value and use of the property for part of the year before the listing date and the value and use of the property on and after the listing date. This bill would change the schedule of how property taxes are paid and could generate a $15 million one-time windfall of property taxes in the first year and an additional $4.4 million one-time windfall of property taxes in the second year if all counties adopted an ordinance allowed pursuant to this bill. However, the counties could experience additional costs in collecting these revenues.
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 12-37-680 SO AS TO ALLOW A COUNTY BY ORDINANCE TO REQUIRE THE LISTING OF IMPROVEMENTS TO REAL PROPERTY WITH THE COUNTY AUDITOR WITHIN THIRTY DAYS FOLLOWING THE DAY ON WHICH THE IMPROVEMENTS ARE COMPLETED AND FIT FOR THE INTENDED USE AND PROVIDE EXCEPTIONS, TO PROVIDE FOR THE PRORATION OF PROPERTY TAXES ON THE IMPROVED REAL PROPERTY FOR THE PROPERTY TAX YEAR THE PROPERTY IS LISTED, AND TO MAKE TAXES ATTRIBUTABLE TO IMPROVEMENTS LISTED AFTER JUNE 30 OF THE PROPERTY TAX YEAR DUE AND PAYABLE WHEN TAXES ARE DUE AND PAYABLE ON THE REAL PROPERTY FOR THE SUCCEEDING PROPERTY TAX YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 5, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-680. (A) Notwithstanding any other provisions of law, the governing body of a county by ordinance may require changes in the appraised value and use of real property attributable to improvements on the real property to be listed for taxation with the auditor within thirty days following the day upon which the improvements are completed and fit for the intended use. If such an ordinance is adopted, the property taxes for the year the improvements are listed must be prorated based on the value and use of the property for part of the year before the listing date and the value and use of the property on and after the listing date.
(B) In a county in which the ordinance allowed by this section is in effect, any additional property tax attributable to improvements listed with the county auditor after June 30 of the property tax year is due and payable when taxes are due on the property for the succeeding property tax year.
(C) The provisions of this section do not apply to real property assessed as manufacturing or utility property pursuant to Section 12-43-220(a)."
SECTION 2. This act takes effect upon approval by the Governor.
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