Download This Bill in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
H. 3453
STATUS INFORMATION
General Bill
Sponsors: Reps. Limehouse, Altman, Barfield, Bailey, Rice, Scarborough, Wilkins, Owens, Clemmons, Hagood and Mahaffey
Document Path: l:\council\bills\ggs\22904htc05.doc
Companion/Similar bill(s): 366, 3919
Introduced in the House on February 3, 2005
Introduced in the Senate on April 28, 2005
Last Amended on April 26, 2005
Currently residing in the Senate Committee on Finance
Summary: Provisions for property tax cap/exemption for watercraft
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
-------------------------------------------------------------------------------
2/3/2005 House Introduced and read first time HJ-12
2/3/2005 House Referred to Committee on Ways and Means HJ-13
2/15/2005 House Member(s) request name added as sponsor: Altman
2/16/2005 House Member(s) request name added as sponsor: Barfield
3/2/2005 House Member(s) request name added as sponsor: Bailey, Rice
3/3/2005 House Member(s) request name added as sponsor: Scarborough
3/8/2005 House Member(s) request name added as sponsor: Wilkins
3/9/2005 House Member(s) request name added as sponsor: Owens
3/16/2005 House Member(s) request name added as sponsor: Clemmons
4/19/2005 House Member(s) request name added as sponsor: Hagood
4/19/2005 House Committee report: Favorable with amendment Ways and
Means HJ-52
4/20/2005 House Member(s) request name added as sponsor: Mahaffey
4/26/2005 House Debate interrupted HJ-66
4/26/2005 House Amended HJ-74
4/26/2005 House Read second time HJ-82
4/26/2005 House Roll call Yeas-67 Nays-34 HJ-82
4/27/2005 House Read third time and sent to Senate HJ-18
4/28/2005 Senate Introduced and read first time SJ-10
4/28/2005 Senate Referred to Committee on Finance SJ-10
5/17/2005 Senate Committee report: Favorable with amendment Finance SJ-12
5/18/2005 Scrivener's error corrected
1/10/2006 Senate Retaining place on calendar recommitted to Committee on
Finance SJ-52
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
2/3/2005
4/19/2005
4/26/2005
5/17/2005
5/18/2005
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 17, 2005
H. 3453
Introduced by Reps. Limehouse, Altman, Barfield, Bailey, Rice, Scarborough, Wilkins, Owens, Clemmons, Hagood and Mahaffey
S. Printed 5/17/05--S. [SEC 5/18/05 3:56 PM]
Read the first time April 28, 2005.
To whom was referred a Bill (H. 3453) to amend Section 12-37-224, Code of Laws of South Carolina, 1976, relating to the classification of a motor home as real property for purposes of, 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 12-37-224 of the 1976 Code, as added by Act 114 of 1999, is amended to read:
"Section 12-37-224. A motor home and a trailer used for camping and recreational travel that is pulled by a motor vehicle on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation in this State and is considered real property rather than personal property for property tax purposes. By ordinance, the governing body of a county may extend the provisions of this section to a boat that meets the same qualifications required for motor homes and trailers pursuant to this section."
SECTION 2. Article 5, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-712. In addition to any other provisions of law subjecting boats and boat motors to property tax in this State:
(1) A boat, including its motor if separately taxed, used in interstate commerce having a tax situs in this State and at least one other state is subject to property tax in this State. The value of such a boat must be determined based on the fair market value of the boat multiplied by a fraction representing the number of days present in this State. The fraction is determined by dividing the number of days the boat was present in this State by three hundred and sixty-five days. A boat used in interstate commerce must be physically present in this State for thirty days in the aggregate in a property tax year to become subject to ad valorem taxation.
(2) A boat, including its motor if the motor is separately taxed, which is not currently taxed in this State and is not used exclusively in interstate commerce, is subject to property tax in this State if it is present within this State for sixty consecutive days or on ninety days in the aggregate in a property tax year. Upon written request by a tax official, the owner must provide documentation or logs relating to the whereabouts of the boat in question. Failure to produce requested documents creates a rebuttable presumption that the boat in question is taxable within this State."
SECTION 3. This act takes effect upon approval by the Governor and applies for property tax years beginning after 2005. //
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
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 these boats and trailers by $7,750,000 in FY 2006 and shifting this amount among and within the other classes of property.
Under current law, a motor home on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation, and is considered real property rather than personal property for property tax purposes. These units are commonly known as recreation vehicles. This bill adds boats to this classification if the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence. In order to qualify for the federal interest deduction, a boat would have to meet the same requirements to claim interest on a home. This basically means a boat must have living/eating quarters, sleeping quarters, and bathroom facilities. This effectively changes the assessment ratio on these boats from 10.5% to 6.0%, reduces the amount of revenue collected on these boats by $2,830,000 and shifts this amount among the other classes of property. This bill also caps the total taxes levied on any boat at $1,500. We estimate that the $1,500 maximum ad valorem tax cap on boats will increase the revenue shift by $2,720,000, bringing the total shift to $5,550,000 in FY 2006.
House Amendment
Under current law, a motor home on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation and is considered real property rather than personal property for property tax purposes. This bill as amended adds trailers used for camping and recreational travel that are pulled by a motor vehicle to this definition. This effectively changes the assessment ratio on these trailers from 10.5% to 6.0%, reduces the amount of revenue collected on these trailers by $2.2 million and shifts this amount among and within the other classes of property. In total, this bill would change the incidence of local property taxes by reducing the property taxes collected from these boats and trailers by $7,750,000 in FY 2006 and shifting this amount among and within 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 by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO AMEND SECTION 12-37-224, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CLASSIFICATION OF A MOTOR HOME AS REAL PROPERTY FOR PURPOSES OF AD VALOREM TAXES AND THE REQUIREMENTS NECESSARY FOR THAT CLASSIFICATION, SO AS TO INCLUDE BOATS WITHIN THE CLASSIFICATION IF THEY MEET THE SAME REQUIREMENTS, AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT A SUFFICIENT AMOUNT OF THE FAIR MARKET VALUE OF A WATERCRAFT AND OF THE COMBINED VALUE OF A WATERCRAFT AND ITS MOTOR, IF TAXED SEPARATELY, TO LIMIT TO ONE THOUSAND FIVE HUNDRED DOLLARS THE PROPERTY TAX DUE ON THE WATERCRAFT OR BOTH THE WATERCRAFT AND THE MOTOR, FOR ONE PROPERTY-TAX YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-224 of the 1976 Code, as added by Act 114 of 1999, is amended to read:
"Section 12-37-224. A motor home or boat on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation in this State and is considered real property rather than personal property for property tax purposes."
SECTION 2. Section 12-37-220(B)(38) of the 1976 Code is amended to read:
"(38)(a) Watercraft and motors which that have an assessment of not more than fifty dollars.
(b) an amount of the fair market value of any watercraft, including those assessed pursuant to Section 12-37-224, sufficient to limit to one thousand five hundred dollars the total property tax on the watercraft for a property-tax year."
SECTION 3. A. Section 12-37-224 of the 1976 Code is amended to read:
"Section 12-37-224. A motor home, or trailer used for camping and recreational travel that is pulled by a motor vehicle, on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation in this State and is considered real property rather than personal property for property tax purposes."
B. This SECTION takes effect upon approval by the Governor and is applicable for travel trailer property tax years beginning after 2005.
SECTION 4. This act takes effect upon approval by the Governor and applies for property tax years beginning after 2004.
This web page was last updated on Friday, December 4, 2009 at 3:41 P.M.