Current Status Bill Number:3332 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970129 Primary Sponsor:Witherspoon All Sponsors:Witherspoon, H. Brown, Sandifer, Barfield, Barrett, Lee, Walker, Askins, Seithel, Battle, Whatley, Edge, Tripp, Keegan, Stille, Loftis, Kelley, Trotter, Cooper, Rhoad, Miller, Riser, Knotts, Mason, Limehouse, T. Brown, Harrell, Altman, Felder, Davenport, Phillips, McCraw, Kinon, Stoddard, Hawkins and Sharpe Drafted Document Number:gjk\23115sd.97 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Property tax exemption, boat, primary or secondary residence, interest expense; Taxation, Watercraft
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ Senate 19970501 Introduced, read first time, 06 SF referred to Committee House 19970501 Read third time, sent to Senate House 19970430 Read second time House 19970429 Objection by Representative Moody- Lawrence Neal House 19970429 Request for debate withdrawn by Representative Whipper Mack House 19970429 Request for debate by Representative Simrill Young Kirsh Whipper Mack House 19970417 Committee report: Favorable 30 HWM House 19970129 Introduced, read first time, 30 HWM referred to CommitteeView additional legislative information at the LPITS web site.
COMMITTEE REPORT
April 17, 1997
H. 3332
Introduced by Reps. Witherspoon, H. Brown, Sandifer, Barfield, Barrett, Lee, Walker, Askins, Seithel, Battle, Whatley, Edge, Tripp, Keegan, Stille, Loftis, Kelley, Trotter, Cooper, Rhoad, Miller, Riser, Knotts, Mason, Limehouse, T. Brown, Harrell, Altman, Felder, Davenport, Phillips, McCraw, Kinon, Stoddard, Hawkins and Sharpe
S. Printed 4/17/97--H.
Read the first time January 29, 1997.
To whom was referred a Bill (H. 3332), to amend the Code of Laws of South Carolina, 1976, by adding Section 12-37-224 so as to provide that a boat, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass:
HENRY E. BROWN, JR., for Committee.
This bill would shift approximately $1,100,000 in local property tax revenue to other classes of taxpayers. This shift would be reduced in future years as more boat owners register their property in the state.
This legislation would reduce the assessment ratio for boats that qualify for an interest deduction under the Internal Revenue Code. From date provided by the Department of Natural Resources, we estimate that approximately 6,100 boats would qualify for the tax reduction. We further assume that the fair market value of these boats average $15,000 and the average statewide millage rate is 225 mills. The revenue loss would therefore total approximately $1,000,000. Finally we assume that the maximum tax of $1,500 per boat would increase the revenue loss by 10 percent.
Approved By:
Burnet R. Maybank, III
S.C. Department of Revenue
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A BOAT ON WHICH THE INTEREST PORTION OF ANY INDEBTEDNESS THEREON IS OR WOULD BE DEDUCTIBLE UNDER THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND RESIDENCE IS ALSO DEEMED TO BE A PRIMARY OR SECOND RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAXATION IN THIS STATE AND AS SUCH IS CONSIDERED REAL RATHER THAN PERSONAL PROPERTY FOR THESE PURPOSES, AND TO PROVIDE A CAP ON THE MAXIMUM AD VALOREM TAXATION WHICH MAY BE LEVIED ON SUCH A BOAT FOR ANY YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 12-37-224. A boat on which the interest portion of any indebtedness thereon is or would be deductible under the Internal Revenue Code as an interest expense on a qualified primary or second residence is also deemed to be a primary or second residence for purposes of ad valorem property taxation in this State and as such is considered real rather than personal property for these purposes. Additionally, the maximum ad valorem taxation on such a boat for any year is one thousand five hundred dollars."
SECTION 2. This act takes effect upon approval by the Governor.