Vol. 11, No. 2, Pg. 24. An Overview of Real Property Tax Sales in South Carolina.

• Author: By the Hon. Roger M. Young

South Carolina Lawyer

1999.

Vol. 11, No. 2, Pg. 24.

An Overview of Real Property Tax Sales in South Carolina

24An Overview of Real Property Tax Sales in South CarolinaBy the Hon. Roger M. YoungMrs. Jones has a sad story. She and her husband live in the house they built after they got married 30 years ago. Mr. Jones hurt his back a few years ago working the garden they have near their house. He hasn't been able to work regularly since, and money has been tight. Mrs. Jones pays all the bills. Three years ago she didn't pay the county tax bill when it came because medical bills were starting to overwhelm them. They barely avoided bankruptcy. Mrs. Jones remembers getting some kind of notice in the mail a while back from the county threatening to sell their property because the taxes weren't paid, but she says she figured she would scrape together the money before a sale. She says she never heard anything more from the county and forgot about it. That is until she received a letter from someone stating they had purchased the property at a tax sale a year and a half earlier. They are giving the Joneses 30 days to vacate the property unless they want to buy it back. Is there anything she can do?

26This scenario is increasingly likely because government officials who wish to remain in office constantly look for alternative means of increasing revenue without raising taxes. One way to accomplish this is by efficiently collecting already existing taxes. This scenario is increasingly likely because government officials who wish to remain in office constantly look for alternative means of increasing revenue without raising taxes. One way to accomplish this is by efficiently collecting already existing taxes. At the same time, counties are also doing a better job of complying with the legislative requirements of tax sales.

This article explores the various aspects of county ad valorem real property tax sales to quickly aid practitioners who have clients like the Jones walk through their doors. This article will briefly review the statutory framework of real property tax sales and look more closely at some of the issues lawyers should consider.

AUTHORITY

There is no common law authority for tax sales in South Carolina. The government's authority to sell real property derives from the state constitution and statutes. The sale of real property for the satisfaction of ad valorem taxes is governed generally by S.C. Code §§ 12-49-10 to 330 and §§ 12-51-40 to 170.

WHO MUST PAY AND WHEN ARE TAXES DUE?

A person is liable for the payment of taxes assessed by counties and municipalities. § 1237-610. On December 31, a statutory lien attaches to all real property owned by a taxpayer for all the taxes assessed during the following year. § 12-49-20. For example, on December 31, 1998, a lien attaches for the taxes that are assessed during 1999. Tax bills are normally mailed in the fall or early winter and are due by January 15 of the next year.

Penalties are added beginning January 16, and additional penalties are added every 30 days. If the delinquent taxes are not paid by March 17, the treasurer issues an execution to the delinquent tax collector. § 12-45-180(a). This begins a series of requirements that at least four, and as many as six, notices must be sent before the property can be sold and conveyed for the nonpayment of delinquent taxes. Most of these notices must be given before the sale; some are given afterwards.

WHAT ARE THE NOTICES AND WHEN ARE THEY DUE?

No sooner than April 1, the delinquent tax collector must mail the first notice, called a notice of delinquent tax, to the taxpayer. § 12-51-40(a). This notifies the taxpayer that his or her real property will be sold if the taxes remain unpaid. If the taxes remain unpaid after 30 days from the date of the first notice, the delinquent tax collector must levy on the execution, the second notice requirement. § 12-51 40(b).

The third notice requirement is not always...