H 3022 Session 111 (1995-1996)
H 3022 General Bill, By Scott
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.
12/14/94 House Prefiled
12/14/94 House Referred to Committee on Ways and Means
01/10/95 House Introduced and read first time HJ-12
01/10/95 House Referred to Committee on Ways and Means HJ-12
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 12-37-3370.
(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.
$ 0 - 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 moreno 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 1995.
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