South Carolina Legislature MobileReference is to the bill as introduced.
Amend the bill, as and if amended, by striking SECTION 1 in its entirety and inserting:
/SECTION 1. A. Section 12-36-2120 of the 1976 Code, as last amended by Act 32 of 2011, is further amended to read:
"Section 12-36-2120.
Exempted from the taxes imposed by
this chapter are the gross proceeds of sales, or sales price of:
(1) tangible personal
property or receipts of any business which the State is
prohibited from taxing by the Constitution or laws of the United
States of America or by the Constitution or laws of this State;
(2) tangible personal
property sold to the federal government;
(3)(a) textbooks,
books, magazines, periodicals, newspapers, and access to on-line
information systems used in a course of study in primary and
secondary schools and institutions of higher learning or for
students' use in the school library of these schools and
institutions;
Items in this category may be in any form,
including microfilm, microfiche, and CD ROM; however,
transactions subject to tax under Sections 12-36-910(B)(3) and
12-36-1310(B)(3) do not fall within this exemption;
(4) livestock.
'Livestock' is defined as domesticated animals customarily
raised on South Carolina farms for use primarily as beasts of
burden, or food, and certain mammals when raised for their pelts
or fur. Animals such as dogs, cats, reptiles, fowls (except
baby chicks and poults), and animals of a wild nature, are not
considered livestock;
(5) feed used for the
production and maintenance of poultry and livestock;
(6) insecticides,
chemicals, fertilizers, soil conditioners, seeds, or seedlings,
or nursery stock, used solely in the production for sale of
farm, dairy, grove, vineyard, or garden products or in the
cultivation of poultry or livestock feed;
(7) containers and
labels used in:
(a)
preparing agricultural, dairy, grove, or garden products
for sale; or
(b)
preparing turpentine gum, gum spirits of turpentine, and
gum resin for sale.
For purposes of this exemption, containers
mean boxes, crates, bags, bagging, ties, barrels, and other
containers;
(8) newsprint paper,
newspapers, and religious publications, including the Holy Bible
and the South Carolina Department of Agriculture's The Market
Bulletin;
(9) coal, or coke or
other fuel sold to manufacturers, electric power companies, and
transportation companies for:
(a)
use or consumption in the production of by-products;
(b)
the generation of heat or power used in manufacturing
tangible personal property for sale. For purposes of this item,
'manufacturer' or 'manufacturing' includes the activities of a
processor;
(c)
the generation of electric power or energy for use in
manufacturing tangible personal property for sale;
(d)
the generation of motive power for transportation. For
the purposes of this exemption, 'manufacturer' or
'manufacturing' includes the activities of mining and quarrying;
(e)
the generation of motive power for test flights of
aircraft by the manufacturer of the aircraft where:
(i)
the taxpayer invests at least seven hundred fifty million
dollars in real or personal property or both comprising or
located at a single manufacturing facility over a seven-year
period; and
(ii)
the taxpayer creates at least three thousand eight hundred
full-time new jobs at the single manufacturing facility during
that seven-year period; or
(f)
the transportation of an aircraft prior to its completion
from one facility of the manufacturer of the aircraft to another
facility of the manufacturer of the aircraft, not including the
transportation of major component parts for construction or
assembly, or the transportation of personnel. This exemption
only applies when:
(i)
the taxpayer invests at least seven hundred fifty million
dollars in real or personal property or both comprising or
located at a single manufacturing facility over a seven-year
period; and
(ii)
the taxpayer creates at least three thousand eight hundred
full-time new jobs at the single manufacturing facility during
that seven-year period.
To qualify for the exemptions provided for
in subitems (e) and (f), the taxpayer shall notify the
department before the first month it uses the exemption and
shall make the required investment and create the required
number of full-time new jobs over the seven-year period
beginning on the date provided by the taxpayer to the department
in its notices. The taxpayer shall notify the department in
writing that it has met the seven hundred fifty million dollar
investment requirement and has created the three thousand eight
hundred full-time new jobs or, after the expiration of the
seven-year period, that it has not met the seven hundred fifty
million dollar investment requirement and created the three
thousand eight hundred full-time new jobs. The department may
assess any tax due on fuel purchased tax free pursuant to
subitems (e) and (f) but due the State as a result of the
taxpayer's failure to meet the seven hundred fifty million
dollar investment requirement and create the three thousand
eight hundred full-time new jobs. The running of the periods of
limitations for assessment of taxes provided in Section 12-54-85
is suspended for the time period beginning with notice to the
department before the taxpayer uses the exemption and ending
with notice to the department that the taxpayer either has met
or has not met the seven hundred fifty million dollar investment
requirement and created the three thousand eight hundred
full-time new jobs.
As used in subitems (e) and (f), 'taxpayer'
includes a person who bears a relationship to the taxpayer as
described in Section 267(b) of the Internal Revenue Code.
(10)(a) meals or
foodstuffs used in furnishing meals to school children, if the
sales or use are within school buildings and are not for profit;
(b)
meals or foodstuffs provided to elderly or disabled
persons at home by nonprofit organizations that receive only
charitable contributions in addition to sale proceeds from the
meals;
(c)
food stuffs, either prepared or packaged for the homeless
or needy that are sold to nonprofit organizations, or food
stuffs that are subsequently sold or donated by a nonprofit
organization to another nonprofit organization. This subitem is
only applicable to food stuffs which are eligible for purchase
under the USDA food stamp program;
(d)
meals or foodstuffs prepared or packaged that are sold to
public or nonprofit organizations for congregate or in-home
service to the homeless or needy or disabled adults over
eighteen years of age or individuals over sixty years of age.
This subitem only applies to meals and foodstuffs eligible for
purchase under the USDA food stamp program.
(11)(a) toll charges
for the transmission of voice or messages between telephone
exchanges;
(b)
charges for telegraph messages;
(c)
carrier access charges and customer access line charges
established by the Federal Communications department or the
South Carolina Public Service department; and
(d)
transactions involving automatic teller machines;
(12) water sold by
public utilities, if rates and charges are of the kind
determined by the Public Service Commission, or water sold by
nonprofit corporations organized pursuant to Chapter 36
of, Title 33;
(13) fuel, lubricants,
and supplies for use or consumption aboard ships in intercoastal
trade or foreign commerce. This exemption does not exempt or
exclude from the tax the sale of materials and supplies used in
fulfilling a contract for the painting, repair, or
reconditioning of ships and other watercraft;
(14) wrapping paper,
wrapping twine, paper bags, and containers, used incident to the
sale and delivery of tangible personal property;
(15)(a) motor fuel,
blended fuel, and alternative fuel subject to tax under Chapter
28 of Title 12; however, gasoline used in aircraft is not
exempt from the sales and use tax;
(b)
if the fuel tax is subsequently refunded under Section
12-28-710, the sales or use tax is due unless otherwise exempt,
and the person receiving the refund is liable for the sales or
use tax;
(c)
fuels used in farm machinery and farm tractors; and
(d)
fuels used in commercial fishing vessels.
(16) farm machinery and
their replacement parts and attachments, used in planting,
cultivating or harvesting farm crops, including bulk coolers
(farm dairy tanks) used in the production and preservation of
milk on dairy farms, and machines used in the production of
poultry and poultry products on poultry farms, when such
products are sold in the original state of production or
preparation for sale. This exemption does not include
automobiles or trucks;
(17) machines used in
manufacturing, processing, recycling, compounding, mining, or
quarrying tangible personal property for sale. 'Machines'
include the parts of machines, attachments, and replacements
used, or manufactured for use, on or in the operation of the
machines and which (a) are necessary to the operation of the
machines and are customarily so used, or (b) are necessary to
comply with the order of an agency of the United States or of
this State for the prevention or abatement of pollution of air,
water, or noise that is caused or threatened by any machine used
as provided in this section. This exemption does not include
automobiles or trucks. As used in this item 'recycling' means a
process by which materials that otherwise would become solid
waste are collected, separated, or processed and reused, or
returned to use in the form of raw materials or products,
including composting, for sale. In applying this exemption to
machines used in recycling, the following percentage of the
gross proceeds of sale, or sales price of, machines used in
recycling are exempt from the taxes imposed by this chapter:
Fiscal Year of Sale
Percentage
Fiscal year 1997-98
fifty percent
After June 30, 1998
one hundred percent;
(18) fuel used
exclusively to cure agricultural products;
(19) electricity used
by cotton gins, manufacturers, miners, or quarriers to
manufacture, mine, or quarry tangible personal property for
sale. For purposes of this item, 'manufacture' or 'manufacture'
includes the activities of processors;
(20) railroad
cars, locomotives, and their parts, monorail cars, and the
engines or motors that propel them, and their parts;
Reserved
(21) vessels
and barges of more than fifty tons burden;
Reserved
(22) materials
necessary to assemble missiles to be used by the Armed Forces of
the United States;
(23) farm, grove,
vineyard, and garden products, if sold in the original state of
production or preparation for sale, when sold by the producer or
by members of the producers immediate family;
(24) supplies
and machinery used by laundries, cleaning, dyeing, pressing, or
garment or other textile rental establishments in the direct
performance of their primary function, but not sales of supplies
and machinery used by coin-operated Laundromats;
Reserved
(25) motor
vehicles (excluding trucks) or motorcycles, which are required
to be licensed to be used on the highways, sold to a resident of
another state, but who is located in South Carolina by reason of
orders of the United States Armed Forces. This exemption is
allowed only if within ten days of the sale the vendor is
furnished a statement from a commissioned officer of the Armed
Forces of a higher rank than the purchaser certifying that the
buyer is a member of the Armed Forces on active duty and a
resident of another state or if the buyer furnishes a leave and
earnings statement from the appropriate department of the armed
services which designates the state of residence of the
buyer; Reserved
(26) all supplies,
technical equipment, machinery, and electricity sold to radio
and television stations, and cable television systems, for use
in producing, broadcasting, or distributing programs. For the
purpose of this exemption, radio stations, television stations,
and cable television systems are deemed to be manufacturers;
(27) all plants
and animals sold to any publicly supported zoological park or
garden or to any of its nonprofit support corporations;
Reserved
(28)(a) medicine and
prosthetic devices sold by prescription, prescription medicines
used to prevent respiratory syncytial virus, prescription
medicines and therapeutic radiopharmaceuticals used in the
treatment of rheumatoid arthritis, cancer, lymphoma, leukemia,
or related diseases, including prescription medicines used to
relieve the effects of any such treatment, free samples of
prescription medicine distributed by its manufacturer and any
use of these free samples;
(b)
hypodermic needles, insulin, alcohol swabs, blood sugar
testing strips, monolet lancets, dextrometer supplies, blood
glucose meters, and other similar diabetic supplies sold to
diabetics under the authorization and direction of a physician;
(c)
disposable medical supplies such as bags, tubing, needles,
and syringes, which are dispensed by a licensed pharmacist in
accordance with an individual prescription written for the use
of a human being by a licensed health care provider, which are
used for the intravenous administration of a prescription drug
or medicine, and which come into direct contact with the
prescription drug or medicine. This exemption applies only to
supplies used in the treatment of a patient outside of a
hospital, skilled nursing facility, or ambulatory surgical
treatment center;
(d)
medicine donated by its manufacturer to a public
institution of higher education for research or for the
treatment of indigent patients; and
(e)
dental prosthetic devices;
(f)
prescription drugs dispensed to Medicare Part A patients
residing in a nursing home are not considered sales to the
nursing home and are not subject to the sales tax.
(g)
respiratory syncytial virus medicines; and
(h)
visosupplementaion therapies sales.
(29) tangible personal
property purchased by persons under a written contract with the
federal government when the contract necessitating the purchase
provides that title and possession of the property is to
transfer from the contractor to the federal government at the
time of purchase or after the time of purchase. This exemption
also applies to purchases of tangible personal property which
becomes part of real or personal property owned by the federal
government or, as provided in the written contract, is to
transfer to the federal government. This exemption does not
apply to purchases of tangible personal property used or
consumed by the purchaser;
(30) office
supplies, or other commodities, and services resold by the
Division of General Services of the State Budget and Control
Board to departments and agencies of the state government, if
the tax was paid on the divisions original purchase;
Reserved
(31) vacation time
sharing plans, vacation multiple ownership interests, and
exchanges of interests in vacation time sharing plans and
vacation multiple ownership interests as provided by Chapter 32
of, Title 27, and any other exchange of
accommodations in which the accommodations to be exchanged are
the primary consideration;
(32) natural and
liquefied petroleum gas and electricity used exclusively in the
production of poultry, livestock, swine, and milk;
(33) electricity,
natural gas, fuel oil, kerosene, LP gas, coal, or any other
combustible heating material or substance used for residential
purposes. Individual sales of kerosene or LP gas of twenty
gallons or less by retailers are considered used for residential
heating purposes;
(34) fifty percent of
the gross proceeds of the sale of a modular home regulated
pursuant to Chapter 43 of Title 23, both on-frame and off-frame.
For purposes of this item only, 'gross proceeds of sale' equals
the manufacturer's net invoice price of the modular home sold,
including all accessories built in to the modular home at the
time of delivery to the purchaser and not including freight or
deposit on returnable materials. The manufacturer shall collect
the tax and remit it to the Department of Revenue;
(35) motion picture
film sold or rented to or by theaters;
(36) tangible personal
property where the seller, by contract of sale, is obligated to
deliver to the buyer, or to an agent or donee of the buyer, at a
point outside this State or to deliver it to a carrier or to the
mails for transportation to the buyer, or to an agent or donee
of the buyer, at a point outside this State;
(37) petroleum
asphalt products, commonly used in paving, purchased in this
State, which are transported and consumed out of this
State; Reserved
(38) hearing aids, as
defined by Section 40-25-20(5);
(39) concession sales
at a festival by an organization devoted exclusively to public
or charitable purposes, if:
(a)
all the net proceeds are used for those purposes;
(b)
in advance of the festival, its organizers provide the
department, on a form it prescribes, information necessary to
ensure compliance with this item.
For purposes of this item, a 'festival'
does not include a recognized state or county fair;
(40) containers and
chassis, including all parts, components, and attachments, sold
to international shipping lines which have a contractual
relationship with the South Carolina State Ports Authority and
which are used in the import or export of goods to and from this
State;
(41) items sold by
organizations exempt under Section 12-37-220A(3) and (4) and
B(5), (6), (7), (8), (12), (16), (19), (22), and (24), if the
net proceeds are used exclusively for exempt purposes and no
benefit inures to any individual. An organization whose sales
are exempted by this item is also exempt from the retail license
tax provided in Article 5 of this chapter;
(42)
depreciable assets, used in the operation of a
business, pursuant to the sale of the business. This exemption
only applies when the entire business is sold by the owner of
it, pursuant to a written contract and the purchaser continues
operation of the business; Reserved
(43) all supplies,
technical equipment, machinery, and electricity sold to motion
picture companies for use in filming or producing motion
pictures. For the purposes of this item, 'motion picture' means
any audiovisual work with a series of related images either on
film, tape, or other embodiment, where the images shown in
succession impart an impression of motion together with
accompanying sound, if any, which is produced, adapted, or
altered for exploitation as entertainment, advertising,
promotional, industrial, or educational media; and a 'motion
picture company' means a company generally engaged in the
business of filming or producing motion pictures;
(44) electricity used
to irrigate crops;
(45) building
materials, supplies, fixtures, and equipment for the
construction, repair, or improvement of or that become a part of
a self-contained enclosure or structure specifically designed,
constructed, and used for the commercial housing of poultry or
livestock.
(46) War memorials or
monuments honoring units or contingents of the Armed Forces of
the United States or of the National Guard, including United
States military vessels, which memorials or monuments are
affixed to public property;
(47) tangible personal
property sold to charitable hospitals predominantly serving
children exempt under Section 12-37-220, where care is provided
without charge to the patient.
(48) solid
waste disposal collection bags required pursuant to the solid
waste disposal plan of a county or other political subdivision
if the plan requires the purchase of a specifically designated
containment bag for solid waste disposal;
Reserved
(49) postage
purchased by a person engaged in the business of selling
advertising services for clients consisting of mailing, or
directing the mailing of, printed advertising material through
the United States mail directly to the client's customers or
potential customers or by a person to mail or direct the mailing
of printed advertising material through the United States mail
to a potential customer; Reserved
(50)(a) recycling
property;
(b)
electricity, natural gas, propane, or fuels of any type,
oxygen, hydrogen, nitrogen, or gasses of any type, and fluids
and lubricants used by a qualified recycling facility;
(c)
tangible personal property which becomes, or will become,
an ingredient or component part of products manufactured for
sale by a qualified recycling facility;
(d)
tangible personal property of or for a qualified recycling
facility which is or will be used (1) for the handling or
transfer of postconsumer waste material, (2) in or for the
manufacturing process, or (3) in or for the handling or transfer
of manufactured products;
(e)
machinery and equipment foundations used or to be used by
a qualified recycling facility;
(f)
as used in this item, 'recycling property', 'qualified
recycling facility', and 'postconsumer waste material' have the
meanings provided in Section 12-6-3460;
(51) material handling
systems and material handling equipment used in the operation of
a distribution facility or a manufacturing facility including,
but not limited to, racks used in the operation of a
distribution facility or a manufacturing facility and either
used or not used to support a facility structure or part of it.
To qualify for this exemption, the taxpayer shall notify the
department before the first month it uses the exemption and
shall invest at least thirty-five million dollars in real or
personal property in this State over the five-year period
beginning on the date provided by the taxpayer to the department
in its notices. The taxpayer shall notify the department in
writing that it has met the thirty-five million dollar
investment requirement or, after the expiration of the five
years, that it has not met the thirty-five million dollar
investment requirement. The department may assess any tax due
on material handling systems and material handling equipment
purchased tax-free pursuant to this item but due the State as a
result of the taxpayer's failure to meet the thirty-five million
dollar investment requirement. The running of the periods of
limitations for assessment of taxes provided in Section 12-54-85
is suspended for the time period beginning with notice to the
department before the taxpayer uses the exemption and ending
with notice to the department that the taxpayer either has met
or has not met the thirty-five million dollar investment
requirement.
(52) Parts and
supplies used by persons engaged in the business of repairing or
reconditioning aircraft owned by or leased to the federal
government or commercial air carriers. This exemption does not
extend to tools and other equipment not attached to or that do
not become a part of the aircraft. Reserved
(53) motor
vehicle extended service contracts and motor vehicle extended
warranty contracts. Reserved
(54) clothing
and other attire required for working in a Class 100 or better
as defined in Federal Standard 209E clean room
environment. Reserved
(55)
audiovisual masters made or used by a production
company in making visual and audio images for first generation
reproduction. For purposes of this item:
(a)
'Audiovisual master' means an audio or video film,
tape, or disk, or another audio or video storage device from
which all other copies are made.
(b)
'Production company' means a person or entity
engaged in the business of making motion picture, television, or
radio images for theatrical, commercial, advertising, or
education purposes. Reserved
(56) Machines used in
research and development. 'Machines' includes machines and
parts of machines, attachments, and replacements which are used
or manufactured for use on or in the operation of the machines,
which are necessary to the operation of the machines, and which
are customarily used in that way. 'Machines used in research
and development' means machines used directly and primarily in
research and development, in the experimental or laboratory
sense, of new products, new uses for existing products, or
improvement of existing products.
(i)
clothing;
(ii)
clothing accessories including, but not limited to, hats,
scarves, hosiery, and handbags;
(iii)
footwear;
(iv)
school supplies including, but not limited to, pens,
pencils, paper, binders, notebooks, books, bookbags, lunchboxes,
and calculators;
(v)
computers, printers and printer supplies, and computer
software;
(vi)
bath wash clothes, blankets, bed spreads, bed linens,
sheet sets, comforter sets, bath towels, shower curtains, bath
rugs and mats, pillows, and pillow cases.
(b)
The exemption allowed by this item does not apply to:
(i)
sales of jewelry, cosmetics, eyewear, wallets, watches;
(ii)
sales of furniture;
(iii)
a sale of an item placed on layaway or similar deferred
payment and delivery plan however described;
(iv)
rental of clothing or footwear;
(v)
a sale or lease of an item for use in a trade or business.
(c)
Before July tenth of each year, the department shall
publish and make available to the public and retailers a list of
those articles qualifying for the exemption allowed by this
item.
(58)
cooperative direct mail promotional advertising
materials and promotional maps, brochures, pamphlets, or
discount coupons by nonprofit chambers of commerce or convention
and visitor bureaus who are exempt from income taxation pursuant
to Internal Revenue Code Section 501(c) delivered at no charge
by means of interstate carrier, a mailing house, or a United
States Post Office to residents of this State from locations
both inside and outside the State. For purposes of this item,
'cooperative direct mail promotional advertising materials'
means discount coupons, advertising leaflets, and similar
printed advertising, including any accompanying envelopes and
labels which are distributed with promotional advertising
materials of more than one business in a single package to
potential customers, at no charge to the potential customer, of
the businesses paying for the delivery of the material.
Reserved
(59) facilities for
transmitting electricity that is transferred, sold, or exchanged
by electrical utilities, municipalities, electric cooperatives,
or political subdivisions to a limited liability company which
is subject to regulation under the Federal Power Act (16 U.S.C.
Section 791(a)) and which is formed to operate or to take
functional control of electric transmission assets as defined in
the Federal Power Act;
(61) copies of
or access to legislation or other informational documents
provided to the general public or any other person by a
legislative agency when a charge for these copies is made
reflecting the agency's cost of the copies. Funds received as
revenue from the sale of materials or as reimbursements for the
cost of providing certain supplies or services or refunds must
be remitted to the State Treasurer as collected, but in no event
later than twelve working days from the date of the receipt of
any such funds. Reserved
(62) seventy
percent of the gross proceeds of the rental or lease of portable
toilets. Reserved
(63) prescription and
over-the-counter medicines and medical supplies, including
diabetic supplies, diabetic diagnostic equipment, and diabetic
testing equipment, sold to a health care clinic that provides
medical and dental care without charge to all of its patients.
(64) Sweetgrass
baskets made by artists of South Carolina using locally grown
sweetgrass. Reserved
(65)(a) computer
equipment, as defined in subitem (c) of this item, used in
connection with a technology intensive facility as defined in
Section 12-6-3360(M)(14)(b), where:
(i)
the taxpayer invests at least three hundred million
dollars in real or personal property or both comprising or
located at the facility over a five-year period;
(ii)
the taxpayer creates at least one hundred new full-time
jobs at the facility during that five-year period, and the
average cash compensation of at least one hundred of the new
full-time jobs is one hundred fifty percent of the per capita
income of the State according to the most recently published
data available at the time the facility's construction starts;
and
(iii)
at least sixty percent of the three hundred million
dollars minimum investment consists of computer equipment;
(b)
computer equipment, as defined in subitem (c) of this
item, used in connection with a manufacturing facility, where:
(i)
the taxpayer invests at least seven hundred fifty million
dollars in real or personal property or both comprising or
located at the facility over a seven-year period; and
(ii)
the taxpayer creates at least three thousand eight hundred
full-time new jobs at the facility during that seven-year
period.
As used in this subitem, 'taxpayer'
includes a person who bears a relationship to the taxpayer as
described in Section 267(b) of the Internal Revenue Code.
(c)
For the purposes of this item, 'computer equipment' means
original or replacement servers, routers, switches, power units,
network devices, hard drives, processors, memory modules,
motherboards, racks, other computer hardware and components,
cabling, cooling apparatus, and related or ancillary equipment,
machinery, and components, the primary purpose of which is to
store, retrieve, aggregate, search, organize, process, analyze,
or transfer data or any combination of these, or to support
related computer engineering or computer science research.
(d)
These exemptions apply from the start of the investment in
or construction of the technology intensive facility or the
manufacturing facility. The taxpayer shall notify the
Department of Revenue of its use of the exemption provided in
this item on or before the first sales tax return filed with the
department after the first such use. Upon receipt of the
notification, the department shall issue an appropriate
exemption certificate to the taxpayer to be used for qualifying
purposes under this item. Within six months after the fifth
anniversary of the taxpayer's first use of this exemption, the
taxpayer shall notify the department in writing that it has or
has not met the investment and job requirements of this item by
the end of that five-year period. Once the department certifies
that the taxpayer has met the investment and job requirements,
all subsequent purchases of or investments in computer
equipment, including to replace originally deployed computer
equipment or to implement future expansions, likewise shall
qualify for the exemption described above, regardless of when
the taxpayer makes the investments.
(e)
The department may assess any tax due on property
purchased tax free pursuant to this item but due the State if
the taxpayer subsequently fails timely to meet the investment
and job requirements of this item after being granted the
exemption; for purposes of determining whether the taxpayer has
timely satisfied the investment requirement, replacement
computer equipment counts toward the investment requirement to
the extent that the value of the replacement computer equipment
exceeds the cost of the computer equipment so replaced, but,
provided the taxpayer otherwise qualifies for the exemption, the
full value of the replacement computer equipment is exempt from
sales and use tax. The running of the periods of limitation
within which the department may assess taxes provided pursuant
to Section 12-54-85 is suspended during the time period
beginning with the taxpayer's first use of this exemption and
ending with the later of the fifth anniversary of first use or
notice to the department that the taxpayer either has met or has
not met the investment and job requirements of this item;
(66) electricity used
by a technology intensive facility as defined in Section
12-6-3360(M)(14)(b) and qualifying for the sales tax exemption
provided pursuant to item (65) of this section, and the
equipment and raw materials including, without limitation, fuel
used by such qualifying facility to generate, transform,
transmit, distribute, or manage electricity for use in such a
facility. The running of the periods of limitation within which
the department may assess taxes pursuant to Section 12-54-85 is
suspended during the same time period it is suspended in item
(65)(d) of this section.
(67) effective July 1,
2011, construction materials used in the construction of a new
or expanded single manufacturing or distribution facility, or
one that serves both purposes, with a capital investment of at
least one hundred million dollars in real and personal property
at a single site in the State over an eighteen-month period, or
effective November 1, 2009, construction materials used in the
construction of a new or expanded single manufacturing facility
where:
(i)
the taxpayer invests at least seven hundred fifty million
dollars in real or personal property or both comprising or
located at the facility over a seven-year period; and
(ii)
the taxpayer creates at least three thousand eight hundred
full-time new jobs at the facility during that seven-year
period.
To qualify for this exemption, the taxpayer
shall notify the department before the first month it uses the
exemption and shall make the required investment over the
applicable time period beginning on the date provided by the
taxpayer to the department in its notices. The taxpayer shall
notify the department in writing that it has met the investment
requirement or, after the expiration of the applicable time
period, that it has not met the investment requirement. The
department may assess any tax due on construction materials
purchased tax free pursuant to this subitem but due the State as
a result of the taxpayer's failure to meet the investment
requirement. The running of the periods of limitations for
assessment of taxes provided in Section 12-54-85 is suspended
for the time period beginning with notice to the department
before the taxpayer uses the exemption and ending with notice to
the department that the taxpayer either has met or has not met
the investment requirement.
As used in this subitem, 'taxpayer'
includes a person who bears a relationship to the taxpayer as
described in Section 267(b) of the Internal Revenue Code.
(68) any
property sold to the public through a sheriff's sale as provided
by law. Reserved
(69) [Reserved]
(70)(a) gold, silver,
or platinum bullion, or any combination of this bullion;
(c) currency.
The department shall prescribe
documentation that must be maintained by retailers claiming the
exemption allowed by this item. This documentation must be
sufficient to identify each individual sale for which the
exemption is claimed.
(71) any device,
equipment, or machinery operated by hydrogen or fuel cells, any
device, equipment, or machinery used to generate, produce, or
distribute hydrogen and designated specifically for hydrogen
applications or for fuel cell applications, and any device,
equipment, or machinery used predominantly for the manufacturing
of, or research and development involving hydrogen or fuel cell
technologies. For purposes of this item:
(a)
'fuel cells' means a device that directly or indirectly
creates electricity using hydrogen (or hydrocarbon-rich fuel)
and oxygen through an electro-chemical process; and
(b)
'research and development' means laboratory, scientific,
or experimental testing and development of hydrogen or fuel cell
technologies. Research and development does not include
efficiency surveys, management studies, consumer surveys,
economic surveys, advertising, or promotion, or research in
connection with literary, historical, or similar projects.
(72) any building
materials used to construct a new or renovated building or any
machinery or equipment located in a research district. However,
the amount of the sales tax that would be assessed without the
exemption provided by this section must be invested by the
taxpayer in hydrogen or fuel cell machinery or equipment located
in the same research district within twenty-four months of the
purchase of an exempt item.
'Research district' means land owned by
the State, a county, or other public entity that is designated
as a research district by the University of South Carolina,
Clemson University, the Medical University of South Carolina,
South Carolina State University, or the Savannah River National
Laboratory.
(73) an
amusement park ride and any parts, machinery, and equipment used
to assemble, operate, and make up an amusement park ride or
performance venue facility located in a qualifying amusement
park or theme park and any related or required machinery,
equipment, and fixtures located in the same qualifying amusement
park or theme park.
(a) To
qualify for the exemption, the taxpayer shall meet the
investment and job requirements provided in subsubitem (i) of
subitem (b) over a five-year period beginning on the date of the
taxpayer's first use of this exemption. The taxpayer shall
notify the Department of Revenue of its intent to qualify and
use this exemption and upon receipt of the notification, the
department shall issue an appropriate exemption certificate to
the taxpayer to be used for qualifying purposes under this item.
Within six months after the fifth anniversary of the taxpayer's
first use of this exemption, the taxpayer shall notify the
department, in writing, that it has or has not met the
investment and job requirements of this item. If the taxpayer
fails to meet the investment and job requirements, the taxpayer
shall pay to the State the amount of the tax that would have
been paid but for this exemption. The running of the periods of
limitations for assessment of taxes provided in Section 12-54-85
is suspended for this time period beginning with the taxpayer's
first use of this exemption and ending with notice to the
department that the taxpayer has or has not met the investment
and job requirements of this item.
(b) For
purposes of this item:
(i)
'Qualifying amusement park
or theme park' means a park that is constructed and operated by
a taxpayer who makes a capital investment of at least two
hundred fifty million dollars at a single site and creates at
least two hundred fifty full-time jobs and five hundred
part-time or seasonal jobs.
(ii) 'Related
or required machinery, equipment, and fixtures' means an
ancillary apparatus used for or in conjunction with an amusement
park ride or performance venue facility, or both, including, but
not limited to, any foundation, safety fencing and equipment,
ticketing, monitoring device, computer equipment, lighting,
music equipment, stage, queue area, housing for a ride,
electrical equipment, power transformers, and signage.
(iii)
'Performance venue facility' means a facility for
a live performance, nonlive performance, including any
animatronics and computer-generated performance, and firework,
laser, or other pyrotechnic show.
(iv)
'Taxpayer' means a single taxpayer or,
collectively, a group of one or more affiliated taxpayers. An
'affiliated taxpayer' means a person or entity related to the
taxpayer that is subject to common operating control and that is
operated as part of the same system or enterprise. The taxpayer
is not required to own a majority of the voting stock of the
affiliate. Reserved
(74) durable medical
equipment and related supplies:
(a)
as defined under federal and state Medicaid and Medicare
laws;
(b)
which is paid directly by funds of this State or the
United States under the Medicaid or Medicare programs, where
state or federal law or regulation authorizing the payment
prohibits the payment of the sale or use tax; and
(c)
sold by a provider who holds a South Carolina retail sales
license and whose principal place of business is located in this
State.
(75) unprepared food
that lawfully may be purchased with United States Department of
Agriculture food coupons. However, the exemption allowed by
this item applies only to the state sales and use tax imposed
pursuant to this chapter.
(76) sales of handguns
as defined pursuant to Section 16-23-10(1), rifles, and shotguns
during the forty-eight hours of the Second Amendment Weekend.
For purposes of this item, the 'Second Amendment Weekend' begins
at 12:01 a.m. on the Friday after Thanksgiving and ends at
twelve midnight the following Saturday.
(77) Energy
efficient products purchased for noncommercial home or personal
use with a sales price of two thousand five hundred dollars per
product or less.
(a) For the
purposes of this exemption, an 'energy efficient product' is any
energy efficient product for noncommercial home or personal use
consisting of any dishwasher, clothes washer, air conditioner,
ceiling fan, fluorescent light bulb, dehumidifier, programmable
thermostat, refrigerator, door, or window, the energy efficiency
of which has been designated by the United States Environmental
Protection Agency and the United States Department of Energy as
meeting or exceeding each agency's energy-saving efficiency
requirements or which have been designated as meeting or
exceeding such requirements under each agency's ENERGY STAR
program, and gas, oil, or propane water heaters with an energy
factor of 0.80 or greater and electric water heaters with an
energy factor of 2.0 or greater.
(b) This
exemption shall not apply to purchases of energy efficient
products purchased for trade, business, or resale.
(c) The
exemption provided in this item applies only to sales occurring
during a period commencing at 12:01 a.m. on October 1, 2009, and
concluding at 12:00 midnight on October 31, 2009, (National
'Energy Efficiency Month') and every year thereafter until 2019.
(d) Each year
until 2019, the State Energy Office shall prepare an annual
report on the fiscal and energy impacts of the October first
through October thirty-first exemption and submit the report to
the General Assembly no later than January first of the
following year.
(e) Beginning
with the February 15, 2009, forecast by the Board of Economic
Advisors of annual general fund revenue growth for the upcoming
fiscal year, and annually after that, if the forecast of that
growth then and in any adjusted forecast made before the
beginning of the fiscal year equals at least five percent of the
most recent estimate by the board of general fund revenues for
the current fiscal year, then the exemption allowed by this item
shall be allowed for the applicable year. If the February
fifteenth forecast or adjusted forecast annual general fund
revenue growth for the upcoming fiscal year meets the
requirement for the credit, the board promptly shall certify
this result in writing to the department.
Reserved
(78) machinery
and equipment, building and other raw materials, and electricity
used in the operation of a facility owned by an organization
which qualifies as a tax exempt organization pursuant to the
Internal Revenue Code Section 501(c)(3) when the facility is
principally used for researching and testing the impact of such
natural hazards as wind, fire, water, earthquake, and hail on
building materials used in residential, commercial, and
agricultural buildings. To qualify for this exemption, the
taxpayer shall notify the department of its intent to qualify
and shall invest at least twenty million dollars in real or
personal property at a single site in this State over the
three-year period beginning on the date provided by the taxpayer
to the department in its notices. After the taxpayer notifies
the department of its intent to qualify and use the exemption,
the department shall issue an appropriate exemption certificate
to the taxpayer to be used for qualifying purposes. Within six
months of the third anniversary of the taxpayer's first use of
the exemption, the taxpayer shall notify the department in
writing that it has met the twenty million dollar investment
requirement or, that it has not met the twenty million dollar
investment requirement. The department may assess any tax due
on the machinery and equipment purchased tax free pursuant to
this item but due the State as a result of the taxpayer's
failure to meet the twenty million dollar investment
requirement. The running of the periods of limitations for
assessment of taxes provided in Section 12-54-85 is suspended
for the time period beginning with notice to the department
before the taxpayer uses the exemption and ending with notice to
the department that the taxpayer either has met or has not met
the twenty million dollar investment requirement.
Reserved"
B. This section takes effect July 1, 2012. /
Amend the bill further, by deleting SECTION 2.
Amend the bill further, by striking SECTION 3 in its entirety and inserting:
/ SECTION 3. Section 12-36-2130 of the 1976 Code is repealed. /
Renumber sections to conform.
Amend title to conform.