ORDERS:
FINAL ORDER AND DECISION
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 |