SC Administrative Law Court Decisions

This matter comes before me pursuant to S.C. Code Ann.  12-60-2510, et seq., and  12-43-220(d) upon a request for a contested case hearing involving Petitioner's request for consolidation of five lots on Jack Rowe Island, Beaufort County, assessment of the consolidated lot under the agricultural use classification, and a partial refund of real property taxes paid on the subdivided lots for tax year 1994. The Assessor asserts that Petitioner did not timely file applications for the subject lots to receive the agricultural classification for tax year 1994. A hearing before the Administrative Law Judge Division was held at the Beaufort County Courthouse, on September 10, 1996. Upon review of the relevant and probative evidence and the applicable law, Petitioner's request is denied.

FINDINGS OF FACT

By a preponderance of the evidence, I find:

1. The subject property consists of five lots on Jack Rowe Island, Beaufort County, delineated on the 1994 Beaufort County Tax Maps as TMS #600-059-00A-0001-0000, #R600-059-00A-0006-0000, #R600-059-00A-0007-0000, #R600-059-00A-0008-0000, and #R600-059-00A-0011-0000.
2. TMS #600-059-00A-0001-0000 contains approximately 3.96 unimproved acres.
3. TMS #600-059-00A-0006-0000 contains approximately 0.76 unimproved acres.
4. TMS #600-059-00A-0007-0000 contains approximately 0.71 unimproved acres.
5. TMS #600-059-00A-0008-0000 contains approximately 3.1 unimproved acres.
6. TMS #600-059-00A-0011-0000 contains approximately 5.07 unimproved acres.
7. By plat recorded in or about 1989, Jack Rowe Island was subdivided into several lots for development.
8. Petitioner purchased the subject property, totaling approximately 13.6 acres, together with an additional and contiguous 39 acres on Jack Rowe Island, in February, 1994.
9. Prior to Petitioner's purchase of the subject property, a plat of Jack Rowe Island dated December 1, 1993, was approved by the Beaufort County Development Review Committee on December 3, 1993, and recorded by Don Guscio in the Beaufort County RMC Office on December 23, 1993, at Plat Book 48, at page 46, (Respondent's Exhibit #2) incorporated herein by reference.
10. With the recordation of the above plat, it was Guscio's intention to have the County consolidate the lots on Jack Rowe Island into one tract of approximately 52 acres and have it classified for agricultural use; however, the December 1, 1993 plat shows six separate and distinct lots.
11. For tax year 1994, the Beaufort County Assessor assessed the subject property as separate lots and at the normal ratio rather than the ratio for property classified for agricultural use.
12. Beaufort County mailed 1994 tax notices to real property owners in October, 1994.
13. Petitioner timely received a 1994 tax bill for the 39-acre tract on Jack Rowe Island, but because of a clerical error, no 1994 tax bills were sent for the subject lots.
14. Petitioner timely paid the 1994 taxes due on the 39-acre tract on Jack Rowe Island, but not on the subject lots.
15. In 1995, Petitioner received notice that the subject lots had been sold at public auction because of delinquent taxes.
16. Petitioner notified the County Assessor about the error, requested the subject lots be consolidated, and filed applications for special assessment of the subject lots as agricultural real property.
17. Petitioner filed the written applications for special assessment of the subject lots as agricultural real property for tax year 1995 on December 14, 1995.
18. Upon finding its error, the County rescinded the tax sales and issued tax notices to the Petitioner for the subject lots for the 1995 taxes due and 1994 past due taxes.
19. In the new tax notices, the County assessed the subject lots under the agricultural use classification for tax year 1995 but not for tax year 1994.
20. Petitioner paid all taxes due on the subject lots, without penalty, for 1994 and 1995 on February 12, 1996.
21. By letter to the Beaufort County Tax Equalization Board dated February 16, 1996, Petitioner objected to the Assessor's 1994 assessment of the subject lots and requested consolidation of the lots, reclassification of the consolidated tract for agricultural use effective for the 1994 tax year, and refund of 1994 taxes paid for the subject lots.
22. By decision dated May 3, 1996, the Beaufort County Tax Equalization Board denied Petitioner's request for consolidation and agricultural use classification for the subject property for tax year 1994, on the basis that neither Petitioner nor its agent timely or appropriately filed for such action.
23. Upon receiving the Board's decision, Petitioner timely sent a request for a contested case hearing on the matter to the Administrative Law Judge Division on or about May 16, 1996.
24. A contested case hearing was held in this matter on September 10, 1996, at the Beaufort County Courthouse.

CONCLUSIONS OF LAW

Based upon the foregoing Findings of Fact, I conclude as a matter of law the following:

1. All real property in the State of South Carolina is subject to taxation, S.C. Code Ann.
 12-37-210 (Supp. 1995).
2. The Administrative Law Judge Division has jurisdiction in this property tax assessment case pursuant to S.C. Code Ann.  1-23-600 and 12-60-2510, et seq. (as amended).
3. S.C. Code Ann.  12-43-220(d) sets forth the criteria and procedure for classification of a property eligible for the agricultural use special assessment ratio.
4. S.C. Code Ann.  12-43-220(d) has been amended numerous times by the legislature in recent years. For tax year 1994, the applicable version of  12-43-220(d) is contained in the 1993 supplement to the Code.
5. S.C. Code Ann.  12-43-220(d)(3) (Supp. 1993) provides, in part: Agricultural real property does not come within the provisions of this section unless the current owners of the real property or their agents make a written application therefor on or before May first of the first tax year in which the special assessment is claimed.... [F]ailure to apply constitutes a waiver of the special assessment for that year. The governing body may extend the time for filing upon showing to it that the person had reasonable cause for not filing on or before May first.
6. Petitioner did not timely file applications for agricultural use assessment classification of the subject lots for tax year 1994. Failure to do so constitutes a waiver of the special assessment for 1994.
7. Because 1994 tax notices were not mailed out by the County until October, 1994, the County's error of not sending notices to Petitioner for the subject lots cannot be blamed for Petitioner's failure to file applications for agricultural use assessment classification of the lots by May 1, 1994.
8. In this situation, only the Beaufort County Council, as the County's governing body, may extend the filing period for the applications, and only upon formal request by Petitioner and upon showing of reasonable cause for failure to timely file.

ORDER

IT IS THEREFORE ORDERED that Petitioner's request for consolidation of Beaufort County TMS #600-059-00A-0001-0000, #R600-059-00A-0006-0000, #R600-059-00A-0007-0000, #R600-059-00A-0008-0000, and #R600-059-00A-0011-0000, and classification of those lots for agricultural use for tax year 1994, is denied.

AND IT IS SO ORDERED.

_____________________________
STEPHEN P. BATES
ADMINISTRATIVE LAW JUDGE

October 25, 1996
Columbia, South Carolina