South Carolina General Assembly
115th Session, 2003-2004

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Bill 497

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COMMITTEE REPORT

April 9, 2003

S. 497

Introduced by Senators Hayes, Peeler and Thomas

S. Printed 4/9/03--S.

Read the first time March 19, 2003.

            

THE COMMITTEE ON FINANCE

To whom was referred a Bill (S. 497) to amend the Code of Laws of South Carolina, 1976, by adding Section 12-43-360 so as to allow the governing body of a county by ordinance, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

HUGH K. LEATHERMAN, SR. for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT 1/

This bill is not expected to have any impact on state or local revenues. Although the amount of assessed value 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 airplanes by $3.7 million and shifting this amount among the other classes of property.

Explanation

Under current law, the assessment ratio used for general aviation aircrafts is 10.5%. This bill would give counties the option of lowering this assessment ratio to as low as 4.0%. We estimate total property tax collections in South Carolina on general aviation aircrafts to be approximately $6,000,000 for FY 2004 . If every county in the State lowered the assessment ratio to 4.0%, it would shift approximately $3,700,000 in property taxes currently collected on general aviation aircrafts to the other classes of property taxes in the first year of implementation. Over time, the lower assessment ratio could bring in additional planes and slow the exodus of planes from South Carolina.

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.

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-43-360 SO AS TO ALLOW THE GOVERNING BODY OF A COUNTY BY ORDINANCE TO REDUCE THE ASSESSMENT RATIO APPLICABLE TO GENERAL AVIATION AIRCRAFT SUBJECT TO PROPERTY TAX IN THE COUNTY TO AN AMOUNT NOT LESS THAN FOUR PERCENT OF THE FAIR-MARKET VALUE OF THE AIRCRAFT.

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

SECTION    1.    Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:

"Section 12-43-360.    The governing body of a county by ordinance may reduce the assessment ratio otherwise applicable in determining the assessed value of general aviation aircraft subject to property tax in the county to a ratio not less than four percent of the fair-market value of the general aviation aircraft. The ordinance must apply uniformly to all general aviation aircraft subject to property tax in the county."

SECTION    2.    This act takes effect upon approval by the Governor.

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