Bill 2122

                    Current Status

Bill Number:               2122
Ratification Number:       434
Act Number                 404
Introducing Body:          House
Subject:                   Filing for agricultural use 

(A404, R434, H2122)

AN ACT TO AMEND SECTION 12-43-220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CLASSIFICATION AND ASSESSMENT RATIOS OF PROPERTY FOR PURPOSES OF AD VALOREM TAXATION, SO AS TO PROVIDE THAT AFTER AN INITIAL APPLICATION FOR CLASSIFICATION OF PROPERTY AS "AGRICULTURAL REAL PROPERTY" IS FILED, NO FURTHER APPLICATION IS NECESSARY TO MAINTAIN THAT CLASSIFICATION UNTIL THE USE CLASSIFICATION OF THE PROPERTY CHANGES, TO REQUIRE NOTIFICATION TO THE ASSESSOR WITHIN SIX MONTHS WHEN THE USE CHANGES, AND TO ESTABLISH MINIMUM AND MAXIMUM PENALTIES FOR FAILING TO NOTIFY THE ASSESSOR IN A TIMELY MANNER.

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

Filing for agricultural use

SECTION 1. Section 12-43-220(d)(3) of the 1976 code is amended to read:

"(3) Agricultural real property does not come within the provisions of this section unless the owners of the real property or their agents make a written application therefor on or before May first of the first tax year in which the special assessment is claimed. The application for the special assessment must be made to the assessor of the county in which the agricultural real property is located, on forms provided by the county and approved by the Commission and a failure to apply constitutes a waiver of the special assessment for that year. The Governing body may extend the time for filing upon a showing satisfactory to it that the person had reasonable cause for not filing on or before May first. No additional annual filing is required while the use classification of the property is unchanged. The owner shall notify the assessor within six months of a change in use. For failure to notify the assessor of a change in use, in addition to any other penalties provided by law, a penalty of ten percent and interest at the rate of one-half of one percent a month must be paid on the difference between the amount that was paid and the amount that should have been paid, but not less than thirty dollars nor more than the current year's taxes."

Refiling eliminated SECTION 2. Section 12-43-220(d)(4) of the 1976 Code is amended to read:

"(4) When real property which is in agricultural use and is being valued, assessed, and taxed under the provisions of this article, is applied to a use other than agricultural, it is subject to additional taxes, hereinafter referred to as roll-back taxes, in an amount equal to the difference, if any, between the taxes paid or payable on the basis of the valuation and the assessment authorized hereunder and the taxes that would have been paid or payable had the real property been valued, assessed, and taxed as other real property in the taxing district, in the current tax year (the year of change in use) and each of the five tax years immediately preceding in which the real property was valued, assessed, and taxed as herein provided. If in the tax year in which a change in use of the real property occurs the real property was not valued, assessed, and taxed under this article, then the real property is subject to roll-back taxes for each of the five tax years immediately preceding in which the real property was valued, assessed, and taxed hereunder. In determining the amounts of the roll-back taxes chargeable on real property which has undergone a change in use, the assessor shall for each of the roll-back tax years involved ascertain:

(A) the fair market value of such real property under the valuation standard applicable to other real property in the same classification;

(B) the amount of the real property assessment for the particular tax year by multiplying such fair market value by the appropriate assessment ratio provided in this article;

(C) the amount of the additional assessment on the real property for the particular tax year by deducting the amount of the actual assessment on the real property for that year from the amount of the real property assessment determined under (B) of this section;

(D) the amount of the rollback for that tax year by multiplying the amount of the additional assessment determined under (C) of this section by the property tax rate of the taxing district applicable for that tax year."

Time effective

SECTION 3. This act takes effect January 1, 1989.