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S. 917
STATUS INFORMATION
General Bill
Sponsors: Senators McConnell, Moore, Land, Rankin, Richardson, McGill, Kuhn and Knotts
Document Path: l:\council\bills\gjk\20926sd04.doc
Companion/Similar bill(s): 5027
Introduced in the Senate on February 5, 2004
Currently residing in the Senate
Summary: Uniform and Fair Golf Course Violation Act of 2004
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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2/5/2004 Senate Introduced and read first time SJ-3
2/5/2004 Senate Referred to Committee on Finance SJ-3
4/7/2004 Senate Committee report: Majority favorable with amend.,
minority unfavorable Finance SJ-8
4/8/2004 Scrivener's error corrected
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
COMMITTEE REPORT
April 7, 2004
S. 917
Introduced by Senators McConnell, Moore, Land, Rankin, Richardson, Elliott, McGill, Kuhn and Knotts
S. Printed 4/7/04--S. [SEC 4/8/04 3:55 PM]
Read the first time February 5, 2004.
To whom was referred a Bill (S. 917) to amend the Code of Laws of South Carolina, 1976, so as to enact the "Uniform and Fair Golf Course Valuation Act of 2004" by adding Section 12-43-365, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Section 2 of this act may be cited as the "Uniform and Fair Golf Course Valuation Act of 2004".
SECTION 2. Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:
"Section 12-43-365. (A) As used in this section, unless the context clearly indicates otherwise:
(1) 'Golf course real property' means all parcels owned by a golf course owner constituting in the aggregate the golf operation which includes the golf course, clubhouse, tennis facilities, swimming pools, maintenance facilities, cart storage facilities, driving range, wetlands, drainage areas, pumping stations, parking lots, golf course entry roadways from public highways, and irrigation and effluent disposal areas associated with a golf operation. For purposes of this section, golf course real property has a value of five hundred dollars an acre.
(2) 'Gross revenue' means revenue from dues, green fees, guest fees, tournament fees, outing fees, cart rentals to members and guests on the golf course real property, rents from lease of facilities, merchandise sales, food and beverage sales, driving range, lessons, club rentals, club repairs, locker rentals, swimming fees, tennis fees, athletic fees, handicap fees, and any other miscellaneous fees received as a result of the operation of the golf course real property. Excluded from 'gross revenues' are refundable membership deposits or initiation fees, interest income, and revenue payable directly to golf course personnel for lessons.
(3) 'Gross revenue multiplier' means a factor equal to one and two-tenths.
(B) The fair market value of golf course real property for ad valorem tax purposes is the value of the golf course real property to which is added the product of gross revenue multiplied by the gross revenue multiplier.
(C)(1) The department shall develop a form for the golf course owner to use to certify and attest golf course gross revenue to the assessor of the county in which the golf course is located. The assessor shall provide the form to the golf course owner or the owner's agent. The assessor of the county in which the golf course real property is located may audit the submission of golf course gross revenue for purposes of determining compliance with this section. The assessor may obtain access to records, including tax returns, held by the Department of Revenue for the purpose of confirming gross revenues.
(2) The form developed by the department shall provide for the sole proprietor, the corporate president or chief financial officer, the managing member of a limited liability company or the partner in a partnership, or an officer of a lessee of the golf course real property, if the lease requires the lessee to pay the ad valorem taxes of a golf course or club operation to attest, under penalties of perjury, the golf course gross revenue.
(D) For purposes of Section 12-43-217 and subsection (B) of this section, the assessor shall determine the fair market value of golf course real property for ad valorem tax purposes for the applicable time period by taking the average of the golf course gross revenues for the immediately preceding three calendar years. If there is less than three years of golf course gross revenue records available, then the assessor shall use the golf course gross revenues that are available from the specific golf course to determine the golf course gross revenues that must be used for purposes of subsection (B). A golf course owner may appeal the valuation of the golf course real property in the same manner and time as other property owners may appeal.
(E) Nothing in this section affects the right of a homeowner's association to elect the special valuation of homeowner's association property pursuant to Section 12-43-227."
SECTION 3. Notwithstanding the provisions of Section 12-43-217 of the 19767 Code, the provisions of this act apply beginning with the taxable year in which this act takes affect.
SECTION 4. Section 12-54-240(B) of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding an appropriately numbered item at the end to read:
"( ) disclosure of information on any returns filed with the department to a county assessor pursuant to Section 12-43-365(C)."
SECTION 5. This act takes effect upon approval by the Governor. /
Amend title to conform.
Majority favorable. Minority unfavorable.
HUGH K. LEATHERMAN, SR. CLEMENTA C. PINCKNEY
For Majority. For Minority.
REVENUE IMPACT 1/
This bill is not expected to have any impact on state or local revenues. Although the amount of assessed value of some golf courses would be decreased, local governments are expected to adjust their millages to make up for the shortfalls. This bill would change the incidence of local property taxes by reducing the property taxes collected from golf courses by $5.6 million and shifting this amount among the other classes of property. Those changes from the levels that would occur in the absence of this bill are as follows:
Category ($ Million)
Owner Occupied . 8
Agricultural . 1
Commercial/Rental -3.9
Personal Property (Vehicles) 1.0
Manufacturing .9
Utility .7
Business Personal .3
Explanation
Under current law, most golf courses are assessed using a comparable sales method, cost or replacement method or income capitalization method. Once a value is established, it is multiplied by a 6.0% assessment ratio and then multiplied by the millage rate. This bill would value golf course real property at $500 per acre and add this to the golf course gross multiple revenue to establish a value. This value would then be multiplied by a 6.0% assessment ratio and then multiplied by the millage rate. Golf course gross multiple revenue is calculated by multiplying the gross revenue generated pursuant to the operation of the golf course by a factor of 1.2. Based on responses from various counties and information in Parks, Recreation and Tourism's Economic Impact of Golf in South Carolina, we estimate this bill will shift $5.6 million of property tax revenue currently received from golf courses to the other classes of property.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ENACT THE "UNIFORM AND FAIR GOLF COURSE VALUATION ACT OF 2004" BY ADDING SECTION 12-43-365 SO AS TO PROVIDE FOR THE MANNER IN WHICH THE FAIR MARKET VALUE OF GOLF COURSE REAL PROPERTY IS DETERMINED FOR AD VALOREM TAX PURPOSES AND THE PROCEDURES WHICH APPLY WITH RESPECT TO THIS DETERMINATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act is known and may be cited as the "Uniform and Fair Golf Course Valuation Act of 2004".
SECTION 2. Chapter 43, Title 12 of the 1976 Code is amended by adding:
"Section 12-43-365. (A) The fair market value of golf course real property for ad valorem tax purposes is defined as the sum of the value of the golf course real property and the golf course gross multiple revenue. For purposes of this section:
(1) the value of the golf course real property shall be five hundred dollars per acre; and,
(2) the golf course gross multiple revenue shall be the gross revenue generated pursuant to the operation of the golf course, excluding refundable initiation deposits, from the calendar year prior to assessment multiplied by a factor of one and one-tenths.
(B) Golf course real property does not come within the provisions of this section unless the owner of the golf course real property or its agent makes a written application for it on or before the first penalty date for taxes due for the first tax year in which the special valuation is claimed. The application must be made with respect to all real property dedicated to the operation of the golf course. 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 the golf course gross revenue, and failure to apply constitutes a waiver of the special valuation for that year. The assessor of the county in which the special valuation property is located may audit the submission of gross revenue by the owner of the golf course for purposes of determining compliance with this section.
(C) Nothing in this section shall affect the right of a homeowner's association to elect the special valuation of homeowner's association property pursuant to Section 12-43-227."
SECTION 3. Notwithstanding the provisions of Section 12-43-217 of the 1976 Code, the provisions of this act apply beginning with the taxable year in which this act takes effect.
SECTION 4. This act takes effect upon approval by the Governor.
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