Who owed property tax that accrued while a tax-sale buyer waited through South Carolina's redemption period?

Plain-English summary

In 2010, Representative Murrell Smith asked who owed property tax that accrued after a December 2008 tax sale but before the buyer received a deed after the redemption period. The South Carolina Attorney General said the defaulting taxpayer, not the buyer, owed the tax during that period. The former owner retained title and possession until redemption time expired, while the buyer's ownership depended on the owner's failure to redeem.

The AG reaffirmed a 1984 opinion despite amendments to the cited statutes. It explained that the applicable redemption period had changed from eighteen months to twelve months, but the rule about title, possession, and tax responsibility remained the same in its analysis.

Currency note

This opinion was issued in 2010. Subsequent statutory amendments, court decisions, or later
AG opinions may have changed the analysis. Treat this page as historical context, not current
legal advice. Verify current law before relying on any specific rule, deadline, or remedy
mentioned here.

Common questions

Was the tax-sale buyer liable for new property taxes during redemption? A: The AG said no. The defaulting taxpayer still held title and possession during that period and owed the tax.

When could the buyer receive title under the opinion's analysis? A: The opinion said the buyer could not receive title before the redemption period expired.

Did amendments after the AG's 1984 opinion change its answer? A: The AG said no. It found the amended statutes still supported the earlier allocation of tax responsibility.

Background and statutory framework

The tax-sale statute allowed the defaulting taxpayer to redeem within twelve months. The AG read that provision with the statute delaying the purchaser's title and the property-tax rule placing liability on the fee owner. That combination left the defaulting owner responsible for taxes arising before the redemption period ended.

Citations and references

The opinion discussed Sections 12-51-90, 12-51-130, and 12-37-610 of the South Carolina Code and a March 8, 1984 AG opinion.

Official title

Property tax liability during tax-sale redemption

Requester

The Honorable Murrell Smith, South Carolina House of Representatives

Source

• Landing page: https://www.scag.gov/opinions/opinions-archive/november-23-2010-1/
• Original PDF: https://www.scag.gov/wp-content/uploads/2011/03/smith-m-os-9116-11-23-10-tax-incurred-during-redemption-period-of-tax-sale1.pdf

Original opinion text

HENRY MCMASTER
A TIORNEY GENERAL

November 23, 2010

The Honorable Murrell Smith
Member, House of Representatives
Post Office Box 580
Sumter, South Carolina 29151
Dear Representative Smith:
We understand from your letter to Attorney General Henry McMaster that you seek advice on behalf of a constituent as to who is responsible for the payment qf property taxes during the redemption period of property purchased during a tax sale. In your letter, you explained: My constituent purchased property at a Tax Sale in December of 2008. He waited for the owner to come forth and pay the taxes to which the owner of the land never redeemed the property during this Redemption Period. When the Redemption Period had expired, Sumter County sent him a letter stating that his deed was now ready for pick up. He also received a bill in the letter for property taxes for the calendar year 2009. Law/Analysis

Chapter 51 of title 12 ofthe South Carolina Code (2000 & Supp. 2009) governs distress sales of property for failure to pay property taxes. As you alluded to in your letter, section 12-51-90 of the South Carolina Code (Supp. 2009) allows defaulting taxpayers to redeem their property "within twelve months from the date of the delinquent tax sale .. . by paying to the person officially charged with the collection of delinquent taxes, assessments, penalties, and costs, together with interest as

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COLUMBIA, SC 29211-1549

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The Honorable Murrell Smith
Page2
November 23, 2010

provided in subsection (B) of this section." We understand your constituent wishes to know who is responsible for the property taxes accruing on such property during this twelve-month period. In our examination of chapter 51 of title 12, we did not find a provision particularly addressing who is responsible for property taxes during the redemption period. However, we issued an opinion in 1984 addressing this question. Op. S.C. Atty. Gen., March 8, 1984. We presented the following analysis: The defaulting property owner is not dispossessed of the property during the eighteen month redemption period provided by § 12-51-90. Section 12-51-130 precludes giving the purchaser title or possession until the period expires. Under§ 12-3 7-610 the person seized in fee or for life is the person liable for payment of the tax. The estate of the defaulting taxpayer is thus not ended until the redemption period expires. The ownership by the purchaser is contingent upon a failure to redeem. The purchaser's interest in the contingency is protected by § 12-49-540 when a threatened waste or damage to the property may be enjoined. Id. Based on this analysis, we concluded: "When property is sold for nonpayment of property taxes pursuant to the provisions of Chapter 51 of Title 12, the taxes accruing during the eighteen-month redemption period are the liability of the owner, the defaulting taxpayer." Id. The Legislature made several amendments to the statutes cited as support in our 1984 opinion. However, we believe that as amended these statutes continue to support our analysis in the 1984 opinion and cause us to reach the same conclusion today. First, section 12-51-90 of the South Carolina Code continues to allow the defaulting taxpayer to remain in possession of the sold property. Second, section 12-51-130 (Supp. 2009) does not allow the purchaser of the property to receive title to the property prior to the expiration of the redemption period. Third, section 12-37610 ofthe South Carolina Code (Supp. 2009) continues to provide that the fee owner of real property is responsible for payment of the associated property tax. Therefore, the provisions contained in chapter 51 indicate that the defaulting taxpayer continues to have title and possession of the sold property during the redemption period. As such, pursuant to section 12-37-610, the defaulting taxpayer is responsible for property taxes owed on the property. Conclusion

The defaulting taxpayer, not the purchaser of property sold at a distress sale, holds both title and possession of the subject property during the redemption period. Therefore, pursuant to section 12-37-610 of the South Carolina Code, we are of the opinion that the defaulting taxpayer, not the

The Honorable Murrell Smith
Page 3
November 23, 2010

purchaser of such property, is responsible for property taxes during the redemption period following the sale. Very truly yours, Henry McMaster Attorney General

REVIEWED AND APPROVED BY:

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Robert D. Cook
Deputy Attorney General