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Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 21, 2004
H. 4735
S. Printed 4/22/04--H. [SEC 4/22/04 3:20 PM]
Read the first time February 11, 2004.
EXPLANATION OF IMPACT:
The Department of Labor, Licensing and Regulations indicates there will be no fiscal impact on the General Fund of the State, nor on federal and/or other funds.
Approved By:
Don Addy
Office of State Budget
REVENUE IMPACT 1/
This bill is expected to increase total sales and use tax revenue by an estimated $482,000 in FY 2004-2005. Of this amount, general fund sales and use tax revenue would be increased by $385,600 and EIA funds would be increased by $96,400 in FY 2004 - 2005.
Explanation
Under current law, thirty five percent of the gross proceeds of the sale of a modular home are exempt from sales tax under Code Section 12-36-2120(34). Also, under current law, most on-frame modular homes are subject to the $300 maximum sales tax cap given to manufactured homes under Code Section 12-36-2110(B). Among other things, this bill, as amended, would increase the current thirty five percent exemption to fifty percent. This bill, as amended, would also remove all modular homes from the $300 maximum sales tax cap thereby increasing the sales tax paid on these modular homes. This bill, as amended, is expected to increase total sales and use tax revenue by an estimated $482,000 in FY 2004 - 2005. Of this amount, general fund sales and use tax revenue would be increased by $385,600 and EIA funds would be increased by $96,400 in FY 2004 - 2005.
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 23-43-85 SO AS TO PROVIDE APPEARANCE, CONSTRUCTION, AND FOUNDATION STANDARDS FOR A MODULAR HOME CERTIFIED FOR PLACEMENT IN SOUTH CAROLINA; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM THE SALES TAX IN THIS STATE, SO AS TO PROVIDE AN EXEMPTION FOR SIXTY PERCENT OF THE GROSS PROCEEDS OF THE SALE OF A MODULAR HOME AND TO DEFINE "GROSS PROCEEDS OF SALE", FOR THIS PURPOSE.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 43, Title 23 of the 1976 Code is amended by adding:
"Section 23-43-85. (A) A single-family modular home manufactured after January 1, 2005, must meet the following standards to be certified for placement in this State:
(1) Roof pitch. For homes with a single predominant roofline, the pitch of the roof must be at least five feet rise for every twelve feet of run;
(2) Eave projections. The eave projections of the roof must be at least ten inches, not including a gutter around the perimeter of the home unless the roof pitch is at least seven feet rise for every twelve feet of run;
(3) Exterior wall. The height of the exterior wall must be at least seven feet six inches for the first story;
(4) Siding and roofing materials. The materials and texture of the exterior materials must be compatible in composition, appearance, and durability to the exterior materials commonly used in standard residential construction.
(B) A single-family modular home placed in the State after January 1, 2005, must meet the foundation requirements provided by the State in this subsection.
(1) A perimeter wall located under the exterior walls of the home, whether load-bearing or non load-bearing, must be constructed of brick, masonry, or other permanent material commonly used in standard residential construction, consistent with surrounding residential structures, and in accordance with the International Residential Code as adopted by the South Carolina Department of Labor, Licensing and Regulation. All modular manufacturers shall submit with the plan set for each building to the department's Modular Buildings Program a minimum foundation design.
(2) A home located in a coastal or flood plain area may require piling or other special foundation designs. These foundations must be designed by a registered professional engineer or architect and are subject to review and approval by the local jurisdiction and not by the Modular Buildings Program. A perimeter wall constructed of brick, masonry, or other materials to enclose the foundation of the home may be a requirement of the design.
(C) An appeal for a variance from a certification standard or a foundation requirement described in this section may be taken in the same manner as provided in Section 23-43-120. "
SECTION 2. Section 12-36-2120(34) of the 1976 Code is amended to read:
"(34) thirty-five fifty percent of the gross proceeds of the sale of a modular homes home as defined in Section 31-17-20 regulated pursuant to Chapter 43 of Title 23, both on-frame and off-frame. For purposes of this item only, 'gross proceeds of sale' equals the manufacturer's net invoice price of the modular home sold, including all accessories built in to the modular home at the time of delivery to the purchaser and not including freight or deposit on returnable materials. The manufacturer shall collect the tax and remit it to the Department of Revenue;"
SECTION 3. Section 12-36-2110(B) of the 1976 Code is amended by adding at the end:
"The maximum tax authorized by this subsection does not apply to a single-family modular home regulated pursuant to Chapter 43, Title 23."
SECTION 4. Section 56-19-510 of the 1976 Code, as added by Act 88 of 2003, is amended to read:
"(A) An owner of a manufactured home may affix the home to real property by:
(1) installing the home in accordance with the required installation standards and removing the wheels, axles, and towing hitch; and
(2) filing with the register of deeds or clerk of court, as appropriate, for the county in which the manufactured home is located the Manufactured Home Affidavit for the Retirement of Title Certificate in the form prescribed in this article together with proof of ownership as evidenced by a copy of the most recent deed of record or other instrument vesting title, the certificate of occupancy from the appropriate building official of the jurisdiction in which the manufactured home is located, and paying the filing fee required for affidavits by Section 8-21-310.
(B) The register of deeds or clerk of court must record the affidavit as if it were a deed to real property with the homeowner being identified as grantor and give notification to the county assessor.
(C) Upon the filing of the affidavit, the manufactured home is to be treated for all purposes except condemnation as real property and title to the manufactured home is thereby vested in the lawful owner of the real property to which it is affixed. A warning notice to those filing the affidavit must be included in the affidavit.
(D) The Manufactured Home Affidavit for the Retirement of Title Certificate must be in the following form:
STATE OF SOUTH CAROLINA )
MANUFACTURED HOME )
AFFIDAVIT FOR RETIREMENT
COUNTY OF ________________ ) OF TITLE CERTIFICATE
(1) Name of Owner
_________________________________________
(2) Description of Manufactured Home:
Date of Manufacture:
Manufacturer:
Model year:
Make:
Width:
Length:
Identification Number (VIN): __________________________
(3) Check whichever is applicable:
_____ The above described manufactured home is not subject to a security lien.
_____ The above described manufactured home is subject to a security lien and a separate affidavit, as required by law, will be filed naming the secured parties.
(4) Check whichever is applicable:
_____ The above described manufactured home is located in a jurisdiction with locally enforced building and safety codes adopted pursuant to Title 6, Chapter 9 of the 1976 Code and attached to this form is written evidence of compliance with the applicable codes as of the date the manufactured home was permanently affixed to the above described real property. Written evidence of compliance includes, but is not limited to, a copy of a certificate of occupancy, a statement from the code enforcement office, an inspection report or any documentation of similar effect from the local code enforcement office having the appropriate jurisdiction. Only one document should be attached to this form.
_____ The above described manufactured home is not located in a jurisdiction with locally enforced building and safety codes adopted pursuant to Title 6, Chapter 9 of the 1976 Code applicable to manufactured homes.
(5) Full legal description of new the property to which manufactured home is currently is, or to be affixed using metes and bounds or reference to recorded plat by book and page. (A separate sheet identified as 'Exhibit A' may be attached.)
(5)(6) Derivation: This being the identical or a portion of property conveyed or leased to the owner by deed or lease from ___________________________________________ and recorded ____________ in Book _____________ at page _________________.
Tax map number
Tax billing address
(6)(7) The above described manufactured home is permanently affixed or is to be permanently affixed to the above described real property and the title certificate is to be retired in accordance with applicable law.
(7)(8) Check if applicable:
______The owner of the manufactured home owns or has a leasehold estate of thirty-five or more years in the real property to which the manufactured home is affixed.
(8)(9) WARNING: the execution and filing of this affidavit transfers ownership of the manufactured home to the lawful owner of the real property to which it is affixed.
The owner certifies that the above information provided by the owner is true and correct to the best information and belief of the owner.
Date:
Signature of owner:
Type or print name of owner
Witness: _____________________________
Witness: _____________________________
STATE OF SOUTH CAROLINA )
COUNTY OF ________________ ) PROBATE
Before me, the undersigned Notary Public, personally appeared ______________________________, who, being duly sworn, deposed and said that (s)he saw ___________________________________, sign, seal, and deliver the foregoing Affidavit and that (s)he, together with ____________________________ witnessed the execution thereof.
___________________________________
SWORN to before me this
___ day of _______________
Notary Public for_________________(L.S.)
My Commission Expires:_____________ "
SECTION 5. This act takes effect upon approval by the Governor.
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