How were South Carolina’s one-percent fire-insurance tax proceeds divided among fire departments?

Plain-English summary

Sumter County's treasurer asked how to distribute money from South Carolina's additional one-percent tax on fire insurers. The Attorney General pointed to the then-current statutory formula: each qualifying designated fire department received an amount based on the assessed value of improvements to real estate within its service area.

The letter conditioned application of that formula on an organized fire department meeting the requirements in the related statutory provisions. It did not calculate any department's share or resolve a dispute over service boundaries. For implementing the statutory plan, the AG suggested contacting the county attorney.

Currency note

This opinion was issued in 1998. 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 one-percent fund divided equally among fire departments? A: The opinion quoted a formula based on assessed real-estate improvements in each designated department's service area, subject to the statutory qualifications.

Did every fire department automatically qualify?
A: The AG conditioned use of the distribution formula on organized fire departments meeting the requirements in the cited provisions. It did not decide any department's eligibility.

Did the AG calculate Sumter County's actual distributions? A: No. The letter identified the statutory method and referred the treasurer to the county attorney for implementation.

Background and statutory framework

The request concerned funds raised by the additional premium tax on fire insurers. The opinion quoted part of §23-9-420 and referred to the related definition of organized fire departments in §23-9-310 et seq. It gave a narrow answer about the governing distribution method.

Citations and references

The opinion cited the fire-insurance premium-tax provisions and quoted §23-9-420. The official PDF contains the text it relied on.

Official title

Regarding the distribution of the funds received as part of the one percent additional premium tax on fire insurers.

Requester

The Honorable Elizabeth C. Hair, Sumter County Treasurer

Source

• Landing page: https://www.scag.gov/opinions/opinions-archive/november-4-1998/
• Original PDF: https://www.scag.gov/wp-content/uploads/2013/12/98nov4hair.pdf

Original opinion text

The State of South Carolina

OFFICE OF THE ATTORNEY GENERAL
November 4, 1998

CHARLES M. CONDON
ATTORNEY GENERAL

I
I

The Honorable Elizabeth C. Hair
Sumter County Treasurer
Administration Building
13 East Canal Street
Sumter, SC 29150
Re:

One Percent Firemen's Fund

Dear Ms. Hair:
You have asked this Office for an opinion regarding the distribution of the funds received as part of the one percent additional premium tax on fire insurers. See §§38-7-40, 38-7-70, and 38-7-170. As you stated in your correspondence, §23-9-420 sets forth the guidelines for distribution of these funds. §23-9-420 states in part:

f

Each designated fire department shall receive an amount of the tax computed on the basis of the assessed value of improvements to real estate within the service areas of the fire department, ...

L

I

Therefore, if the organized fire departments, as defined in §23-9-310, et seq., have met the requirements as specified in those sections, then §23-9-420 addresses the appropriate method of distribution of the one percent fund. As to the implementation of the statutory plan of distribution of the referenced funds, I suggest that the County Attorney be contacted. This is an informal opinion. It has been written by the designated Senior Assistant Attorney General and represents the opinion of the undersigned attorney as to the specific question asked. It has not, however, been personally reviewed by the Attorney General nor has it been officially published in the manner of a formal opinion.

REMBERT C. DENNIS BU1l..D!NG

~CJ~ c5(U;tt;t

•

POST OFFICE Box 11549

•

COLUMBIA,

s.c. 29211-1549

•

TELEPH0°~E: 803-734-3970 •

FACSIM!LE: 803-253-6283

The Honorable Elizabeth C. Hair
Page2
November 4, 1998

If you have further questions, please do not hesitate to contact me. Very truly yours,

f.viiones, Jr.

C.
Senior Assistant Attorney General

I
I
CHJJr/rho

L