South Carolina General Assembly
116th Session, 2005-2006

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Bill 3718

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COMMITTEE REPORT

April 20, 2006

H. 3718

Introduced by Reps. Huggins, Frye, Clark, Haley, Ballentine, Bingham, Toole and E.H. Pitts

S. Printed 4/20/06--H.

Read the first time March 8, 2005.

            

THE COMMITTEE ON WAYS AND MEANS

To whom was referred a Bill (H. 3718) to amend Section 12-37-220, as amended, Code of Laws of South Carolina, 1976, relating to general exemptions from ad valorem property taxes, etc., respectfully

REPORT:

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 all after the enacting words and inserting:

/SECTION    1.    Section 12-37-220(B)(11)(e) of the 1976 Code, as added by Act 334 of 2002, is amended to read:

"(e)    All property of nonprofit housing corporations or solely-owned nonprofit instrumentalities of these corporations which is devoted to providing housing to low or very low income residents. A nonprofit housing corporation must satisfy the safe harbor provisions of Revenue Procedure 96-32 issued by the Internal Revenue Service to qualify for this exemption.

SECTION    2.    The provisions of Section 1 of this act apply for calendar years beginning after December 31, 2005.

SECTION    3.    This act takes effect upon approval by the Governor.     /

Renumber sections to conform.

Amend title to conform.

DANIEL T. COOPER for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT 1/

This bill is not expected to impact state revenues. Local property tax revenues are estimated to increase by $170,000 in FY 2006-07.

Explanation

Under current law all property of nonprofit housing corporations or solely-owned instrumentalities of these corporations which is devoted to providing housing to low or very low income residents is exempt from property taxes. According to data from the Department of Revenue there are 150 properties exempt from property taxes under this current exemption in 2006. This bill would require the solely-owned instrumentalities of these corporations to be non-profits to be eligible for the property tax exemption. Based on conversations with the Department of Revenue and county officials, we estimate this bill will remove this exemption from very few properties. We estimate removing this exemption from 3 properties will result in an increase of $170,000 of local property tax 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 by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.

A BILL

TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL EXEMPTIONS FROM AD VALOREM PROPERTY TAXES, SO AS TO DELETE THE EXEMPTION OF PROPERTY OF NONPROFIT HOUSING CORPORATIONS WHICH ARE DEVOTED TO PROVIDING HOUSING TO LOW AND VERY LOW INCOME RESIDENTS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 12-37-220(B)(11)(e) of the 1976 Code is deleted.

SECTION    2.    The provisions of Section 1 of this act apply for calendar years beginning after December 31, 2004.

SECTION    3.    This act takes effect upon approval by the Governor.

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