South Carolina General Assembly
116th Session, 2005-2006

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Indicates Matter Stricken
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S. 1007

STATUS INFORMATION

General Bill
Sponsors: Senator Ford
Document Path: l:\s-jud\bills\ford\jud0036.rf.doc

Introduced in the Senate on January 10, 2006
Last Amended on April 6, 2006
Currently residing in the House

Summary: Property tax payments

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   1/10/2006  Senate  Introduced and read first time SJ-39
   1/10/2006  Senate  Referred to Committee on Finance SJ-39
   1/12/2006  Senate  Referred to Subcommittee: Hayes (ch), Land, Courson, 
                        Matthews, Grooms, Richardson
    4/5/2006  Senate  Committee report: Favorable with amendment Finance SJ-16
    4/6/2006  Senate  Amended SJ-16
    4/6/2006  Senate  Read second time SJ-16
   4/11/2006  Senate  Read third time and sent to House SJ-26
   4/11/2006  Senate  Reconsider vote whereby read third time and sent to 
                        House SJ-26

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

1/10/2006
4/5/2006
4/6/2006

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

COMMITTEE AMENDMENT ADOPTED

April 6, 2006

S. 1007

Introduced by Senator Ford

S. Printed 4/6/06--S.

Read the first time January 10, 2006.

            

A BILL

TO AMEND SECTION 12-45-75, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORITY OF A COUNTY BY ORDINANCE TO ALLOW QUARTERLY OR MONTHLY INSTALLMENT PAYMENTS OF TAXES ON REAL PROPERTY, SO AS TO REQUIRE THE PAYMENT OF ESTIMATED PROPERTY TAXES ON REAL PROPERTY IN BI-MONTHLY INSTALLMENTS, EACH DUE ON FEBRUARY 15, APRIL 15, JUNE 15, AUGUST 15, OCTOBER 15, AND DECEMBER 15 OF EACH YEAR, TO DEFINE ESTIMATED PROPERTY TAX LIABILITY, TO PROVIDE THAT THE TOTAL OF ESTIMATED PROPERTY TAXES PAID IS A CREDIT AGAINST THE TOTAL PROPERTY DUE ON THE PROPERTY, TO PROVIDE FOR INTEREST ON UNDERPAYMENTS AND OVERPAYMENTS OF ESTIMATED PROPERTY TAX, TO REQUIRE PROPERTY TAX NOTICES TO CONTAIN A CALCULATION OF AN ESTIMATED PROPERTY TAX LIABILITY AND RETURN ENVELOPES FOR PAYING THE ESTIMATED PROPERTY TAX, AND TO PROVIDE THAT THE PAYMENT OF ESTIMATED PROPERTY TAXES AND THE CREDIT ALLOWED AGAINST PROPERTY TAXES FOR ESTIMATED PROPERTY TAXES DOES NOT ALTER THE DUE DATE, PENALTY SCHEDULE, AND ENFORCED COLLECTION OF PROPERTY TAXES EXCEPT WITH RESPECT TO INTEREST ADDED TO PROPERTY TAX FOR UNDERPAYMENT OF ESTIMATED PROPERTY TAX.

Amend Title To Conform

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

SECTION    1.    Section 12-45-75 of the 1976 Code is amended to read:

"Section 12-45-75.    (A)(1)    The governing body of a county may by ordinance must allow a each taxpayer owning a parcel of taxable real property within the county the option to elect to pay property taxes in installments as provided in this section. pay all ad valorem taxes on real property located in the county in quarterly or monthly installments. An installment election is not allowed for taxes paid through an escrow account.

(2)    The ordinance must specify the installment due dates and it may provide for installments due and payable before January fifteenth, but the final installment due date must be January fifteenth. The ordinance may provide for a service charge of not more than two dollars on installment payments. For purposes of payment and collection, these service charges are deemed property taxes. The ordinance may not provide penalties for late installments. A taxpayer electing to pay ad valorem taxes in installments or electing to opt-out of paying in installments, must notify the county treasurer in writing no later than January 15th of the tax year for which the installment payments are applicable, and no earlier than December 1st of the preceding tax year. If the treasurer does not receive written notification from December 1st to January 15th, the taxpayer must pay ad valorem taxes in the same manner as the previous taxable year.

(3)    The treasurer must notify the county auditor and county assessor of each taxpayer electing the installment payment option or electing to opt-out of paying in installments. If the county assessor determines the property has diminished in value, an estimated property tax obligation must be adjusted to reflect the reduced value. Upon being notified of an adjustment for reduced value from the assessor, the county treasurer must notify the property owner of the adjusted estimated property tax obligation.

(B)    The governing body of a county may by ordinance provide a discount in all ad valorem taxes on real property located in the county paid in advance of the January fifteenth due date. The ordinance may provide a range of discounts that vary according to the length of the prepayment period. An installment payment is based on the total property tax due for the previous property tax year, after applying all applicable credits and adjustments reflecting reduced value as determined by the county assessor. An amount equal to sixteen and two-thirds percent of the estimated property tax obligation must be paid to the county treasurer in each of five installments according to the following schedule:

In the case of the following estimates, the due date is on or before:

First                February 15

Second            April 15

Third            June 15

Fourth            August 15

Fifth                October 15

The remaining balance is due on or before January 15th of the following taxable year in accordance with Section 12-45-70. The treasurer must notify the county auditor of the amount of a property owner's payments received no earlier than October 15th and no later than November 15th. A notice of the remaining tax due and other authorized charges and information must then be prepared and mailed to the property owner.

(C)    If a taxpayer electing to pay in installments does not timely make each payment pursuant to the schedule in subsection (B), the county may refuse to accept all other installment payments. If the county refuses to accept other installment payments, the remaining balance is due in accordance with Section 12-45-70.

(D)    Estimated property taxes paid in installments during a property tax year are a credit against the total property tax due on the real property for the property tax year. The estimated property taxes paid in installments during a property tax year must be deposited by the county treasurer in an interest bearing account. The interest is to be retained by the treasurer to offset the administrative expenses of installment payments. Once final payment is made, and no later than January 15th of the following taxable year, the installment payments must be credited to the accounts of property taxing entities in the county in the same proportion that millage was imposed by such entities in the previous tax year with the necessary adjustments made to reflect current tax year millage impositions when property taxes for the current year are paid.

(E)    If the credit allowed for estimated property tax paid during the property tax year results in an overpayment of property tax, the overpayment must be refunded to the taxpayer together with the actual interest earned by the county treasurer, running from the later of the due date of the installment resulting in the overpayment, without regard to additional amounts paid, or the actual date the overpayment was received by the county treasurer, to the date the refund is issued. Except that if the overpayment is issued to the taxpayer within forty-five days of the installment payment that resulted in the overpayment, the treasurer may retain the interest earned.

(F)    Every tax notice for real property, for which the installment payment option has been elected, must contain a calculation of any estimated property tax due and a payment schedule and return envelopes for these payments.

(G)    The payment of estimated property tax as provided in this section and the credit allowed arising from these payments in no way alters the due date, penalty schedule, and enforced collection of property taxes as provided by law."

SECTION    2.    Each county treasurer shall report to the General Assembly on the impact and implementation of this act no later than sixty days after January 15, 2009. The report shall include, but is not limited to, the costs incurred, the interest retained, and the number of individuals electing to pay ad valorem taxes in installments.

SECTION    3.    This act takes effect upon approval by the Governor and applies for real property tax years beginning after 2006.

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