Clarendon County ex rel. Clarendon County Assessor v. Tykat, Inc., 394 S.C. 21

Summary

The Supreme Court of South Carolina held that a private lessee's leasehold interest in tax-exempt property was subject to ad valorem taxation under South Carolina Code section 12-37-950. The court rejected the lessee's argument that the property was exempt because it was leased from the South Carolina Public Service Authority and used for a public purpose. The court also affirmed the denial of the county's request for attorneys' fees and costs.

Holdings

1. A leasehold estate conveyed for a definite term by a tax-exempt grantor to a nonexempt grantee must be valued for property-tax purposes as real estate under South Carolina Code section 12-37-950; the leasehold is not exempt merely because the lessee uses it for a public purpose.
2. Clarendon County was not entitled to attorney's fees and costs under the Frivolous Civil Proceedings Sanctions Act.

Questions Presented

1. Whether a private, for-profit lessee's leasehold interest in property owned by a tax-exempt political subdivision is exempt from ad valorem taxation under article X, section 3 of the South Carolina Constitution when the property is used for a public purpose.
2. Whether South Carolina Code section 12-37-950 requires the leasehold interest to be valued as real estate for property-tax purposes despite the tax-exempt status of the fee owner.
3. Whether Clarendon County was entitled to attorney's fees and costs under the Frivolous Civil Proceedings Sanctions Act.

Disposition

affirmed