Current Status Bill Number:4774 Ratification Number:492 Act Number:403 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960319 Primary Sponsor:Fulmer All Sponsors:Fulmer Drafted Document Number:bbm\10694sd.96 Date Bill Passed both Bodies:19960523 Governor's Action:S Date of Governor's Action:19960604 Subject:Homeowner's Association, property tax assessments
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19960613 Act No. A403
------ 19960604 Signed by Governor
------ 19960530 Ratified R492
Senate 19960523 Read third time, enrolled for
ratification
Senate 19960521 Read second time, ordered to
third reading with notice of
general amendments, carrying
over all amendments to third
reading
Senate 19960508 Recalled from Committee, 06 SF
placed on the Calendar
Senate 19960423 Introduced, read first time, 06 SF
referred to Committee
House 19960418 Read third time, sent to Senate
House 19960418 Objection withdrawn by Representative Scott
House 19960417 Read second time
House 19960403 Objection by Representative Scott
Canty
Neal
Lloyd
House 19960403 Objection withdrawn by Representative Cave
Breeland
Inabinett
House 19960403 Objection by Representative Kirsh
Cave
Moody- Lawrence
Inabinett
Kennedy
Breeland
House 19960402 Debate adjourned until
Wednesday, 19960403
House 19960328 Debate adjourned until
Tuesday, 19960402
House 19960328 Reconsidered vote whereby debate
was adjourned until Wednesday,
19960403
House 19960327 Debate adjourned until
Wednesday, 19960403
House 19960321 Committee report: Favorable 30 HWM
House 19960319 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
(A403, R492, H4774)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-43-227 SO AS TO PROVIDE A METHOD FOR VALUING HOMEOWNERS' ASSOCIATION PROPERTY FOR AD VALOREM TAX PURPOSES; AND TO AMEND SECTION 12-43-230, RELATING TO THE DEFINITIONS OF CERTAIN TYPES OF PROPERTY FOR AD VALOREM TAX PURPOSES SO AS TO DEFINE HOMEOWNERS' ASSOCIATION PROPERTY.
Be it enacted by the General Assembly of the State of South Carolina:
Valuation of Homeowners' Association property
SECTION 1. Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:
"Section 12-43-227. The fair market value of homeowners' association property, as defined in Section 12-43-230, for ad valorem tax purposes is defined as the nonqualified earnings value to be determined by the capitalization of the property's nonqualified gross receipts. For purposes of this section, `nonqualified gross receipts', means the gross receipts from the use of the property other than:
(1) amounts received as membership dues, fees, or assessments from the members of the homeowners' association; and
(2) amounts received from the developer of the property owned by the homeowners' association as reported on the most recently filed application submitted pursuant to Section 12-43-230. If additional reporting is required pursuant to Section 12-43-230, nonqualified gross receipts shall be determined utilizing gross receipts from the most recent completed tax year. After a piece of property's nonqualified gross receipts have been established, they must be capitalized to determine nonqualified earnings value by utilizing a capitalization rate of twenty percent. Notwithstanding any other provision of this section, in the event of real property with zero or de minimus nonqualified gross receipts, the special valuation of homeowners' association property shall not result in any homeowners' association property being valued at a rate less than five hundred dollars an acre."
Definition of Homeowners' Association property
SECTION 2. Section 12-43-230 of the 1976 Code is amended by adding a new subitem (d) to read:
"(d) For purposes of this article, `homeowners' association property' means real and personal property owned by a homeowners' association if:
(1) property owned by the homeowners' association is held for the use, benefit, and enjoyment of members of the homeowners' association;
(2) each member of the homeowners' association has an irrevocable right to use and enjoy on an equal basis, property owned by the homeowners' association, subject to any restrictions imposed by the instruments conveying the right or the rules, regulations, or bylaws of the homeowners' association; and
(3) each irrevocable right to use and enjoy property owned by the homeowners' association is appurtenant to taxable real property owned by a member of the homeowners' association.
Notwithstanding any other provision of this subsection, homeowners' association property shall not be construed so as to include a golf course.
As used in this subsection, `homeowners' association' means an organization which is organized and operated to provide for the acquisition, construction, management, and maintenance of property.
Homeowners' association property does not come within the provisions of this subsection unless the owners of the real property or their agents make a written application therefor on or before the first penalty date for taxes due for the first tax year in which the special valuation is claimed. The application for the special valuation must be made to the assessor of the county in which the special valuation property is located, on forms provided by the county and approved by the department which includes the reporting of nonqualified gross receipts, and failure to apply constitutes a waiver of the special valuation for that year. No additional annual filing is required while the property remains homeowners' association property and the ownership remains the same, unless the nonqualified gross receipts within the meaning of Section 12-43-227 for the most recent completed tax year either (i) exceed the amount of nonqualified gross receipts with respect to the property reported on the most recently filed application by ten percent or more or (ii) are less than ninety percent of the amount of nonqualified gross receipts with respect to the property reported on the most recently filed application. In such a case, the owners of the real property or their agents must make additional written application with respect to the property and report the change in nonqualified gross receipts."
Time effective
SECTION 3. This act takes effect upon approval by the Governor and applies to property tax years beginning after 1995.
Approved the 4th day of June, 1996.