Berkeley County School District v. South Carolina Department of Revenue, 383 S.C. 334

Summary

The South Carolina Supreme Court held that lease-purchase and installment-purchase payments for school capital improvements qualify as expenses for "school operating purposes." Accordingly, the plaintiff school districts were entitled to tier-three reimbursement from the Homestead Exemption Fund for taxes lost under the owner-occupied residential property exemption. The court issued a declaratory judgment for the plaintiffs, while separate opinions included a concurrence and a dissent.

Holdings

1. Payments under lease-purchase and installment-purchase agreements used for school capital construction improvements fall within the phrase "school operating purposes" under the applicable property-tax exemption statutes.
2. The plaintiff school districts are entitled to tier-three reimbursements under S.C. Code section 11-11-156(A)(1) for expenses incurred under lease-purchase and installment-purchase agreements for capital construction improvements during fiscal year 2007-2008.

Questions Presented

1. Whether payments under lease-purchase and installment-purchase agreements used to finance school capital improvements fall within the phrase "school operating purposes" in S.C. Code sections 12-37-220(B)(47)(a) and 11-11-156(A)(1).
2. Whether the plaintiff school districts are entitled to tier-three reimbursement from the Homestead Exemption Fund for those payments.

Disposition

approved