H 3913 General Bill, By Cato, Bailey, Riser, Cooper, Quinn, Tripp, G. Brown, 
Wilkins, Kirsh and H. Brown
 A BILL TO AMEND SECTION 12-36-140, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE DEFINITIONS OF "STORAGE" AND "USE" FOR PURPOSES OF THE SOUTH
 CAROLINA SALES AND USE TAX ACT AND SECTION 12-36-2120, AS AMENDED, RELATING TO
 EXEMPTIONS FROM SALES TAX, SO AS TO CLARIFY THAT THE SOUTH CAROLINA SALES AND
 USE TAX DOES NOT APPLY TO THE DISTRIBUTION OF DIRECT MAIL ADVERTISING
 MATERIALS WHICH ARE DISTRIBUTED IN THIS STATE BY ANY PERSON ENGAGED IN THE
 BUSINESS OF PROVIDING COOPERATIVE DIRECT MAIL ADVERTISING.

   04/14/99  House  Introduced and read first time HJ-9
   04/14/99  House  Referred to Committee on Ways and Means HJ-10

TO AMEND SECTION 12-36-140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITIONS OF "STORAGE" AND "USE" FOR PURPOSES OF THE SOUTH CAROLINA SALES AND USE TAX ACT AND SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM SALES TAX, SO AS TO CLARIFY THAT THE SOUTH CAROLINA SALES AND USE TAX DOES NOT APPLY TO THE DISTRIBUTION OF DIRECT MAIL ADVERTISING MATERIALS WHICH ARE DISTRIBUTED IN THIS STATE BY ANY PERSON ENGAGED IN THE BUSINESS OF PROVIDING COOPERATIVE DIRECT MAIL ADVERTISING.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 12-36-140(C) of the 1976 Code, as added by Section 74A, Part II, Act 612 of 1990, is amended to read:

"(C) 'Storage' and 'use' do not include the keeping, retaining, or exercising of any right or power over tangible personal property:

(1) for the exclusive purpose of subsequently transporting it outside the State for first use,; or

(2) for the purpose of first being manufactured, processed, or compounded into other tangible personal property to be transported and used solely outside the State; or

(3) for the purpose of being distributed as cooperative direct mail promotional advertising materials 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.

SECTION 2. Section 12-36-2120 of the 1976 Code, is amended by adding an appropriately numbered item to read:

"() cooperative direct mail promotional advertising materials delivered 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."

SECTION 3. This act takes effect upon approval by the Governor and applies to any legal or administrative proceeding, whether commenced before, on, or after the effective date of this act.