S 565 Session 109 (1991-1992)
S 0565 General Bill, By J.M. Waddell
A Bill to amend Chapter 37, Title 12, Code of Laws of South Carolina, 1976,
relating to property taxes, by adding Article 23 so as to enact the Income Tax
Credit for Property Tax Relief Act; and to amend Section 12-37-250, as
amended, relating to the homestead exemption, so as to reduce the exemption
from the first twenty thousand dollars of fair market value of a dwelling
place to the first ten thousand dollars of the fair market value of a dwelling
place.
01/30/91 Senate Introduced and read first time SJ-4
01/30/91 Senate Referred to Committee on Finance SJ-4
A BILL
TO AMEND CHAPTER 37, TITLE 12, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO PROPERTY TAXES, BY
ADDING ARTICLE 23 SO AS TO ENACT THE INCOME TAX
CREDIT FOR PROPERTY TAX RELIEF ACT; AND TO AMEND
SECTION 12-37-250, AS AMENDED, RELATING TO THE
HOMESTEAD EXEMPTION, SO AS TO REDUCE THE
EXEMPTION FROM THE FIRST TWENTY THOUSAND DOLLARS
OF FAIR MARKET VALUE OF A DWELLING PLACE TO THE
FIRST TEN THOUSAND DOLLARS OF THE FAIR MARKET
VALUE OF A DWELLING PLACE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 37, Title 12 of the 1976 Code is amended by
adding:
"Article 23
Income Tax Credit
for
Property Tax Relief Act
Section 12-37-3310. As used in this article:
(1) `Gross household income' means all income, for all
individuals residing within the household, from whatever source derived
in a taxable year including, but not limited to:
(a) compensation for services including fees, commissions, and
similar items;
(b) gross income derived from dealings in property;
(c) gains derived from dealings in property;
(d) interest;
(e) rents;
(f) royalties;
(g) dividends;
(h) alimony;
(i) income from life insurance and endowment contracts;
(j) annuities;
(k) pensions;
(l) income from discharge of indebtedness;
(m) distributive share of partnership gross income;
(n) income from an interest in an estate or trust; and
(o) federal old age, survivor, or disability benefits.
(2) `Household' means an individual or group of individuals
living together in a room or group of rooms as a housing unit.
(3) `Claimant' means a person who files a claim for property tax
relief under this article who is eligible to claim the homestead exemption
allowed pursuant to Section 12-37-250 and who meets the gross
household income requirements of Section 12-37-3360.
(4) `Property taxes accrued' means property taxes, exclusive of
special assessments, penalties, and charges for service, levied on a
claimant's homestead in this State in a year.
Section 12-37-3320. The right to file a claim under this article is
personal to the claimant and does not survive his death, but the right
may be exercised on behalf of a claimant by his legal guardian or
attorney-in-fact. If a claimant dies after having filed a timely claim, the
amount of the claim must be disbursed to another member of the
household as determined by the commission. If the claimant was the
only member of his household, the claim may be paid to his personal
representative.
Section 12-37-3330. Subject to limitations provided in this article,
a claimant may claim in a year as a credit against South Carolina
individual income taxes due on his income, a percentage of property
taxes accrued in the preceding calendar year. If the allowable amount
of the claim exceeds the income taxes due on claimant's income, the
amount of the claim not used as an offset against income taxes, after
certification by the commission, must be paid to the claimant. No
interest is allowed on a payment made to a claimant pursuant to this
article.
Section 12-37-3340. No claim with respect to property taxes
accrued may be paid or is allowed, unless the claim is filed with the Tax
Commission on or before the due date, without regard to any extension,
for filing the South Carolina individual income tax return for the year
with respect to which the claim for credit is made. In case of sickness,
absence, or other disability, or for other good cause shown, the
commission may extend for not more than six months the time for filing
a claim.
Section 12-37-3350. The amount of a claim otherwise payable
under this article may be applied by the commission against a liability
outstanding against the claimant, or against the claimant's spouse who
was a member of the claimant's household in the year to which the claim
relates.
Section 12-37-3360. Only one claimant a household a year is
entitled to the credit allowed by this article.
Section 12-37-3370. (A) The amount of a claim made pursuant
to this article is determined as provided in subsection (B) of this section
except that the total credit may not exceed two hundred fifty dollars.
(B) For a taxable year a claimant is allowed a credit in the amount
by which the property tax on the homestead exceeds a percentage of the
claimant's gross household income for the taxable year determined
according to the following schedule:
If Gross Household Then the Taxpayer is Entitled Income (Rounded
to to Credit for Property Tax
the Nearest Income) paid in Excess of this is: Percent of that
Income.
$ O - 9,999 1.0%
10,000-14,999 1.5%
15,000-19,999 2.0%
20,000-24,999 2.25%
25,000 or more no credit
(C) The South Carolina Tax Commission shall prepare a table
under which claims under this article must be determined. The amount
of claim as shown in this table for each bracket must be computed only
to the nearest dollar.
Section 12-37-3380. The commission shall prescribe and make
available suitable forms with instructions for claimants, including a form
which may be included with or separate from the individual income tax
return. The form must include the table required pursuant to Section
12-37-3370(C).
The claim must be in the form the commission prescribes. Those
claimants who certify on the prescribed form that there is no income tax
liability are not required to file an individual income tax return.
Section 12-37-3390. Every claimant under this article shall supply
the commission, in support of his claim, a receipt of property taxes paid
for purposes of this article and any changes of homestead.
Section 12-37-3400. If on the audit of a claim filed under this
article the commission determines the amount to have been incorrectly
determined, the claim must be corrected. If the claim has been refunded
or allowed as a credit against income taxes otherwise payable, the
amount of the credit disallowed or refunded in error may be recovered
by assessment as income taxes are assessed with applicable interest
allowed by Section 12-54-20.
Section 12-37-3410. No claim for relief under this article is
allowed to a person who is a recipient of public funds for the payment
of the property taxes accrued during the period for which the claim is
filed.
Section 12-37-3420. A claim must be disallowed if the
commission finds that the claimant received title to his homestead
primarily for the purpose of receiving benefits under this article."
SECTION 2. The first paragraph of Section 12-37-250 of the 1976
Code, as last amended by Act 530 of 1990, is further amended to read:
"The first twenty ten thousand dollars of the
fair market value of the dwelling place of a person is exempt from
county, municipal, school, and special assessment real estate property
taxes when the person has been a resident of this State for at least one
year and has reached the age of sixty-five years on or before December
thirty-first, the person has been classified as totally and permanently
disabled by a state or federal agency having the function of classifying
persons, or the person is legally blind as defined in Section 43-25-20,
preceding the tax year in which the exemption is claimed and holds
complete fee simple title or a life estate to the dwelling place. A person
claiming to be totally and permanently disabled, but who has not been
classified by one of the agencies, may apply to the State Agency of
Vocational Rehabilitation. The agency shall make an evaluation of the
person using its own standards. The exemption includes the dwelling
place when jointly owned in complete fee simple or life estate by
husband and wife, and either has reached sixty-five years of age, or is
totally and permanently disabled, or legally blind under this section,
before January first of the tax year in which the exemption is claimed,
and either has been a resident of the State for one year. The exemption
must not be granted for the tax year in which it is claimed unless the
person or his agent makes written application for the exemption before
July sixteenth of that tax year. If the person or his agent makes written
application for the exemption after July fifteenth, the exemption must
not be granted except for the succeeding tax year for a person qualifying
under this section when the application is made. However, if application
is made after July fifteenth of that tax year but before the first penalty
date on property taxes for that tax year by a person qualifying under this
section when the application is made, the taxes due for that tax year
must be reduced to reflect the exemption provided in this section. The
application for the exemption must be made to the auditor of the county
and to the governing body of the municipality in which the dwelling
place is located upon forms provided by the county and municipality and
approved by the Comptroller General, and a failure to apply constitutes
a waiver of the exemption for that year. Beginning with tax year 1979
the auditor, as directed by the Comptroller General, shall notify the
municipality of all applications for a homestead exemption within the
municipality and the information necessary to calculate the amount of
the exemption. `Dwelling place' means the permanent home and legal
residence of the applicant."
SECTION 3. Upon approval by the Governor, this act takes effect for
taxable years beginning after 1990.
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