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Sponsors: Senators Knotts, Peeler, Williams, Elliott, Ford, Vaughn, Grooms, Malloy, Cromer, Bryant, Courson, Setzler, McConnell, Ceips, Ritchie, Cleary, Campsen, Short, McGill, Patterson, Reese, Ryberg, Fair, Thomas, Campbell, Anderson, Drummond, Pinckney, Jackson, Alexander, Leatherman, O'Dell, Lourie, Matthews, Martin, Rankin, Hayes and Verdin
Document Path: l:\council\bills\gjk\20656sd08.doc
Introduced in the Senate on April 17, 2008
Introduced in the House on May 20, 2008
Last Amended on June 4, 2008
Currently residing in the Senate
Summary: Property taxes
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 4/17/2008 Senate Introduced and read first time SJ-5 4/17/2008 Senate Referred to Committee on Finance SJ-5 4/30/2008 Senate Committee report: Favorable with amendment Finance SJ-18 5/1/2008 Scrivener's error corrected 5/15/2008 Senate Committee Amendment Amended and Adopted 5/15/2008 Senate Read second time SJ-101 5/15/2008 Senate Unanimous consent for third reading on next legislative day SJ-101 5/16/2008 Senate Read third time and returned to House with amendments SJ-4 5/16/2008 Scrivener's error corrected 5/20/2008 House Introduced and read first time HJ-20 5/20/2008 House Referred to Committee on Judiciary HJ-21 5/29/2008 House Recalled from Committee on Judiciary HJ-21 6/3/2008 House Debate adjourned HJ-28 6/4/2008 House Amended HJ-55 6/4/2008 House Debate adjourned HJ-59 6/4/2008 House Read second time HJ-65 6/4/2008 House Roll call Yeas-108 Nays-1 HJ-67 6/5/2008 House Read third time and returned to Senate with amendments HJ-53
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VERSIONS OF THIS BILL
June 4, 2008
Introduced by Senators Knotts, Peeler, Williams, Elliott, Ford, Vaughn, Grooms, Malloy, Cromer, Bryant, Courson, Setzler, McConnell, Ceips, Ritchie, Cleary, Campsen, Short, McGill, Patterson, Reese, Ryberg, Fair, Thomas, Campbell, Anderson, Drummond, Pinckney, Jackson, Alexander, Leatherman, O'Dell, Lourie, Matthews, Martin, Rankin, Hayes and Verdin
S. Printed 6/4/08--H.
Read the first time May 20, 2008.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-43-223 SO AS TO PROVIDE THAT A PERSON WHO THROUGH A BOND FOR TITLE, LEASE-PURCHASE AGREEMENT, CONTRACT FOR SALE, OR OTHER TYPE OF CONTRACTUAL AGREEMENT OWNS AN EQUITABLE INTEREST IN A PARCEL OF REAL PROPERTY, THE LEGAL TITLE TO WHICH REMAINS IN THE SELLER, WHICH THAT PERSON MAINTAINS AS HIS LEGAL RESIDENCE QUALIFIES FOR A FOUR PERCENT ASSESSMENT RATIO THEREON IF HE MEETS ALL OTHER REQUIREMENTS PROVIDED BY LAW FOR SUCH CLASSIFICATION INCLUDING A REQUIREMENT IN THE CONTRACTUAL AGREEMENT THAT HE IS RESPONSIBLE FOR THE REAL PROPERTY TAXES ON THE PROPERTY.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 43, Title 12 of the 1976 Code is amended by adding:
"Section 12-43-223. (A) A person who through a bond for title, lease-purchase agreement, contract for sale, or other type of contractual agreement owns an equitable interest in a parcel of real property, the legal title to which remains in the seller, which that person maintains as his legal residence qualifies for a four percent assessment ratio thereon if he meets all other requirements provided by law for such classification including a requirement in the contractual agreement that he is responsible for the real property taxes on the property. A lease-purchase agreement must contain an option to purchase the subject property which has been validly exercised by the taxpayer claiming the legal residence assessment ratio. The legal residence assessment ratio applies in the tax year in which the option is exercised.
(B) A county assessor may establish reasonable criteria by July 1st of each property tax year to determine if a bond for title, lease-purchase agreement, contract for sale, or other type of contractual agreement between the purchaser and the seller meets the requirements of subsection (A). The criteria must remain in effect for the property tax year and must apply equally to all applicable property during the property tax year. The assessor must make the criteria available to the public when it is established.
(C) To qualify for the four percent assessment ratio pursuant to this section, a person who owns an equitable interest in a parcel of real property must record the agreement conveying the equitable interest in the office of the register of mesne conveyances or the clerk of court in those counties where the office of the register of mesne conveyances has been abolished."
SECTION 2. Section 12-43-220(c)(2)(i) of the 1976 Code is amended to read:
"(2)(i) To qualify for the special property tax assessment ratio allowed by this item, the owner-occupant must have actually owned and occupied the residence as his legal residence and been domiciled at that address for some period during the applicable tax year. A residence which has been qualified as a legal residence for any part of the year is entitled to the four percent assessment ratio provided in this item for the entire year, for the exemption from property taxes levied for school operations pursuant to Section 12-37-251 for the entire year, and for the homestead exemption under Section 12-37-250, if otherwise eligible, for the entire year. A single-member limited liability company where the single member is an individual and that is not taxed for South Carolina income tax purposes as a corporation shall be considered an owner-occupant for purposes of the special property tax assessment ratio allowed by this item, if the single-member limited liability company is able to meet all the requirements of subsection (c)."
SECTION 3. (1) Section 12-37-3140 of the 1976 Code, as last amended by Act 57 of 2007, is further amended to read:
"Section 12-37-3140. (A)(1) For property tax years beginning after 2006, the fair market value of real property is its fair market value applicable for the later of:
(a) the base year, as defined in subsection (C) of this section;
(b) subject to the provisions of item (3) of this subsection, December thirty-first of the year in which an assessable transfer of interest has occurred;
(c) as determined on appeal; or
(d) as it may be adjusted as determined in a countywide reassessment program conducted pursuant to Section 12-43-217, but limited to increases in such value as provided in subsection (B) of this section.
(2) To the fair market value of real property as determined at the time provided in item (1) of this subsection, there must be added the fair market value of subsequent improvements and additions to the property.
(3) If a parcel of real property which has had no further improvement since the most recent countywide reassessment program was implemented undergoes an assessable transfer of interest, the implementation of the transfer value as determined pursuant to item (1)(b) of this section is postponed until the property tax year of implementation of the next countywide assessment program and that transfer value is the value to which the limit on increases in fair market value provided pursuant to subsection (B) of this section applies.
(B) Any increase in the fair market value of real property attributable to the periodic countywide appraisal and equalization program implemented pursuant to Section 12-43-217 or as implemented pursuant to subsection (A)(3) of this section is limited to fifteen percent within a five-year period to the otherwise applicable fair market value. This limit must be calculated separately on land and improvements. However, this limit does not apply to the fair market value of additions or improvements to real property in the year those additions or improvements are first subject to property tax, nor
do they does the limit apply to the fair market value of real property when an assessable transfer of interest occurred in the year that the transfer value is first subject to tax.
(C) For purposes of determining a 'base year' fair market value pursuant to this section, the fair market value of real property is its appraised value applicable for property tax year 2007.
(D) Real property valued by the unit valuation concept is excluded from the limits provided pursuant to subsection (B) of this section.
(E) Value attributable to additions and improvements, and changes in value resulting from assessable transfers of interest occurring in a property tax year are first subject to property tax in the following tax year except as provided pursuant to subsection (A)(3) of this section and Section 12-37-670(B)."
(2) Section 12-37-3150(A)(8) of the 1976 Code, as added by Act 388 of 2006, is amended to read:
"(8) a transfer of an ownership interest in a single transaction or as a part of a series of related transactions within a twenty-five year period in a corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity if the ownership interest conveyed is more than fifty percent of the corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity. The corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity shall notify the applicable property tax assessor on a form provided by the Department of Revenue not more than forty-five days after a conveyance of an ownership interest that constitutes an assessable transfer of interest or transfer of ownership under this item. Failure to provide this notice or failure to provide accurate information on this notice subjects the property to a civil penalty of not less than one hundred nor more than one thousand dollars as determined by the assessor. This penalty is enforceable and collectible as property tax and is in addition to any other penalties that may apply;"
(3) A. Section 12-43-220(c) of the 1976 Code, as amended by Act 388 of 2006, is further amended by adding at the end:
"(8) Notwithstanding the provisions of subitem (1) of this item, residential real property held in trust does not qualify as a legal residence for purposes of this item unless a named individual beneficiary under the trust occupies the residence as that named beneficiary's legal residence and that individual beneficiary's name appears on the deed to the residential property.
(9) An application for the assessment ratio allowed by this item is not valid unless the application contains the social security number(s) of the owner-occupant(s) making the application or on whose behalf the application is made."
B. Subitems (8) and (9) of Section 12-43-220(c) of the 1976 Code, as added by subsection A of this subsection apply for first applications for the four percent assessment ratio for legal residence made for property tax years beginning after 2008.
(4) Section 40-60-35(A)(2) of the 1976 Code, as added by Act 257 of 2006, is amended to read:
"(2) For renewal of an active license or certification, assessors and other staff responsible for the assessment of property for ad valorem taxation purposes shall receive
nine seven hours of instruction each year in the laws applicable to assessment for ad valorem taxation, methods of valuing property, administration of the assessor's office and records of the assessor's office, and other functions related to the assessor's office. This instruction shall be received from the Department of Revenue or other providers or courses approved by the Department of Revenue Labor, Licensing and Regulation. This instruction shall satisfy eighteen fourteen of the twenty-eight classroom hours required for renewal."
(5) Except as otherwise stated, this section takes effect upon approval by the Governor.
SECTION 4. This act takes effect upon approval by the Governor.
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