H 4684 Session 110 (1993-1994)
H 4684 General Bill, By Scott, D.W. Beatty, Breeland, J. Brown, A.W. Byrd,
Cobb-Hunter, Inabinett, J.H. Neal, J.M. White and D. Williams
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.
02/08/94 House Introduced and read first time HJ-8
02/08/94 House Referred to Committee on Ways and Means HJ-8
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.
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 the claimant's death, but
the right may be exercised on behalf of a claimant by the claimant's 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 department. If the
claimant was the only member of his household, the claim may be paid
to the claimant's 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 department, 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 department
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 department 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 department 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 department 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 department 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 department 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
department, in support of the 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 department 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 department
finds that the claimant received title to his homestead primarily for the
purpose of receiving benefits under this article."
SECTION 2. Upon approval by the Governor, this act takes effect for
property tax years years beginning after 1994.
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