South Carolina General Assembly
117th Session, 2007-2008

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Bill 139

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COMMITTEE REPORT

January 31, 2007

S. 139

Introduced by Senators Knotts and Elliott

S. Printed 1/31/07--S.

Read the first time January 9, 2007.

            

THE COMMITTEE ON FINANCE

To whom was referred a Bill (S. 139) to amend Section 12-37-224, Code of Laws of South Carolina, 1976, relating to motor homes which qualify as a primary or secondary residence for purposes, 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 trailers by $2.6 million in FY 2007-08 and shifting this amount among the other classes of property.

Explanation

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 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 $2.6 million in FY 2007-08 and shifts 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.

A BILL

TO AMEND SECTION 12-37-224, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTOR HOMES WHICH QUALIFY AS A PRIMARY OR SECONDARY RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAX, SO AS TO INCLUDE TRAILERS USED FOR CAMPING AND RECREATIONAL TRAVEL PULLED BY A MOTOR VEHICLE.

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

SECTION    1.    Section 12-37-224 of the 1976 Code, as last amended by Act 386 of 2006, is further 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. 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 pursuant to this section."

SECTION    2.    This act takes effect upon approval by the Governor and is applicable for travel trailer property tax years beginning after 2006.

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