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Indicates New Matter
COMMITTEE REPORT
April 23, 2003
S. 497
S. Printed 4/23/03--H.
Read the first time April 16, 2003.
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 to reduce the assessment ratio applicable to general aviation, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT 1/
This bill is not expected to have any impact on state or local revenues. Counties are only expected to lower assessment ratios if they can encourage enough planes to locate in their counties to offset the lower assessment ratio.
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%. With current assessment ratios, taxes on airplanes located in South Carolina are approximately two and one-half times higher than those in North Carolina and Georgia. Over recent years there has been an exodus of planes from the border counties to North Carolina and Georgia. The lower assessment ratio is expected to cause the return of some of those planes to the border counties, offsetting revenue reductions from the lowering of the assessment ratio in those counties. The same experience is not expected in the non-border counties, but those counties can choose to keep current assessment ratios. Since each county is expected to choose the option that will maintain its revenues, this bill is not expected to impact local revenues.
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, 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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