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H. 4608
STATUS INFORMATION
General Bill
Sponsors: Reps. Ballentine, Cotty, Haley, Bingham, Bales, Frye, Clark, Altman, Bailey, Bannister, Ceips, Chellis, Davenport, Delleney, Hagood, Huggins, Jennings, Kirsh, Leach, Limehouse, Mitchell, Neilson, Phillips, E.H. Pitts, Scarborough, Simrill, Sinclair, W.D. Smith, Townsend, Vaughn and Young
Document Path: l:\council\bills\gjk\20750sd06.doc
Introduced in the House on February 7, 2006
Currently residing in the House Committee on Ways and Means
Summary: Fair market value
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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2/7/2006 House Introduced and read first time HJ-4
2/7/2006 House Referred to Committee on Ways and Means HJ-5
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-932 SO AS TO PROVIDE THAT THE FAIR MARKET VALUE OF REAL PROPERTY FOR PURPOSES OF THE PROPERTY TAX IS ITS FAIR MARKET VALUE AS APPRAISED IN THE MANNER PROVIDED BY LAW WHEN OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, INCREASED BY THE FAIR MARKET VALUE OF IMPROVEMENTS MADE TO THE REAL PROPERTY SINCE OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, AND TO PROVIDE THAT THE ABOVE PROVISION IS EFFECTIVE UPON RATIFICATION OF AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF THIS STATE DEFINING FAIR MARKET VALUE OF REAL PROPERTY AS ITS FAIR MARKET VALUE WHEN IT'S OWNERSHIP LAST WAS TRANSFERRED, INCREASED BY THE VALUE OF IMPROVEMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 5, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-932. (A) For determining assessed value of property for purposes of the property tax and notwithstanding any other provision of law, beginning with the year in which this section takes effect the fair market value of real property for purposes of the property tax is its fair market value as appraised in the manner provided by law when ownership of the real property last was transferred, increased by the fair market value, as appraised in the manner provided by law, of improvements made to the real property since ownership of the real property last was transferred.
(B)(1) For purposes of this section, ownership of real property is not considered to have been transferred if transferred in fee simple in a transfer not subject to federal income tax in the following circumstances:
(a) 102, limited to transfer to a spouse or surviving spouse, (Gifts and Inheritances),
(b) 1033 (Conversions--Fire and Insurance Proceeds to Rebuild),
(c) 1041 (Transfers of Property Between Spouses or Incident to Divorce),
(d) 351 (Transfer to a Corporation Controlled by Transferor),
(e) 355 (Distribution by a Controlled Corporation),
(f) 368 (Corporate Reorganizations), and
(g) 721 (Nonrecognition of Gain or Loss on a Contribution to a Partnership).
Number references in the above subitems are to sections of the Internal Revenue Code of 1986, as defined in Section 12-6-40.
(2) In the case of real property classified pursuant to Section 12-43-220(c), ownership is not considered to have been transferred:
(a) if the transferor returns a life estate in the real property and the transferor continues to occupy the real property as his legal residence; and
(b) real property which has been transferred to a trust if the transferor and settler is a life beneficiary of the trust and continues to occupy the real property as his legal residence.
(C) For purposes of determining a 'base year' fair market value pursuant to this section, the fair market value of real property is its appraised value applicable for property tax year 2006 increased by the fair market value of subsequent improvements, or if ownership of the real property has been transferred after 2005, applying the provisions relating to ownership transfer contained in this section, when ownership last was transferred."
SECTION 2. This act takes effect upon ratification of an amendment to Article X of the Constitution of this State defining fair market value of real property as its fair market value when it's ownership last was transferred, increased by the value of improvements.
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