AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "HEIRS' PROPERTY TAX RELIEF ACT" BY AMENDING SECTION 12-37-3150, RELATING TO DETERMINING WHEN AN ASSESSABLE TRANSFER OF INTEREST OCCURS, SO AS TO EXCLUDE TRANSFERS MADE TO QUALIFIED FAMILY MEMBERS TO CLEAR THE TITLE OF HEIRS' PROPERTY.
Summary
H4477 creates the “Heirs’ Property Tax Relief Act” and amends South Carolina’s property tax law to exclude certain family-to-family transfers of heirs’ property from being treated as an assessable transfer of interest. The bill is aimed at situations where inherited real property is held by multiple family members as tenants in common and title has not been formally cleared through probate or recorded conveyance. Under the bill, a transfer among qualified family members to clear title would not trigger reassessment if both parties already held an interest in the property before the transfer.
The bill defines “heirs’ property” and “qualified family member,” and it also provides that a partition of heirs’ property, whether voluntary or court-ordered in a title-clearing proceeding, does not disqualify the resulting parcels from the exclusion. Each partitioned parcel must be assessed at its proportional value. To use the exclusion, the family members must submit affidavits to the county assessor certifying the property’s status, the family relationship, and that the transfer is for title-clearing purposes. Once title is cleared, the property no longer qualifies as heirs’ property for this special treatment.
Impact
The bill would amend Section 12-37-3150 of the South Carolina Code, which governs when a transfer of interest is considered assessable for property tax purposes. Its practical effect is to protect families trying to resolve unclear title in inherited property from an unintended property tax reassessment when ownership interests are transferred among relatives to clear title. The change applies to property tax years beginning after 2025 and would affect county assessors, heirs’ property owners, and families engaged in probate, partition, or title-curative proceedings.
Sentiment
The available voting history suggests broad bipartisan support and little opposition. The House passed the bill 104-0, and the Senate gave it second reading 43-0, indicating strong agreement that the measure addresses a practical problem for families with inherited property. No committee transcript is available, but the unanimous votes suggest the bill was viewed favorably as a targeted tax relief and title-clearing measure rather than a controversial tax policy change.
Contention
No major points of contention are reflected in the available record. The main policy issue embedded in the bill is how to define and verify heirs’ property and ensure the exclusion is limited to genuine title-clearing transfers among family members. The affidavit requirement and the rule that the exclusion ends once title is cleared appear designed to prevent misuse, while still helping families avoid reassessment during the process of resolving ownership.
Similar To
A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-37-3150, RELATING TO DETERMINING WHEN AN ASSESSABLE TRANSFER OF INTEREST OCCURS, SO AS TO EXCLUDE TRANSFERS MADE AMONGST RELATED DESCENDANTS TO CLEAR THE TITLE OF THE HEIRS' PROPERTY.