714 S.E.2d 305
S.C.2011Background
- Tykat, Inc. leased a campground on property owned by the South Carolina Public Service Authority (exempt from taxation).
- The county assessed ad valorem tax on Tykat’s leasehold interest and included it in the tax notice along with other fee simple properties.
- The Board of Assessment Appeals ruled the leasehold was not taxable; the Administrative Law Court (ALC) denied Tykat’s petition and Clarendon County’s request for fees.
- The appeals were consolidated and certified to the South Carolina Supreme Court for review.
- The central issue was whether the leasehold of a tax-exempt owner could be taxed under section 12-37-950, despite use for a public purpose.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the leasehold taxable under 12-37-950? | Tykat contends exemptions apply via Summers-Wasson. | Clarendon County argues leasehold is taxable under the statute. | Leasehold is taxable under 12-37-950. |
| Does Article X, §3 exempt lessees of tax-exempt property? | Tykat seeks exemption for private lessee using property for a public purpose. | County relies on statutory language restricting exemptions to the owner’s property. | Statutory text controls; no exemption for lessee. |
| Does Summers-Wasson extend tax exemption to lessees of exempt property? | Tykat relies on Summers-Wasson to exempt leasehold if used for public purpose. | These cases concern fee owners and not lessees; not applicable to lessees. | Summers-Wasson does not apply to lessees; leasehold taxable. |
| Are attorneys’ fees rightly denied to Clarendon County under the Frivolous Civil Proceedings Sanctions Act? | County contends some of Tykat’s arguments were frivolous. | Court should award fees only if frivolous arguments are present. | ALC did not err; fee denial affirmed. |
Key Cases Cited
- South Carolina Public Service Authority v. Summers, 282 S.C. 148 (1984) (addressed tax status of tax-exempt owners leasing to private entities)
- Charleston County Aviation Authority v. Wasson, 277 S.C. 480 (1982) (public use considerations and taxation of public authority lease arrangements)
- Quirk v. Campbell, 302 S.C. 148 (1990) (public-use and uniformity principles in tax context)
- Wynn ex rel. Wynn v. Doe, 255 S.C. 509 (1971) (plain-language statutory interpretation doctrine)