H*4851 Session 112 (1997-1998)
H*4851(Rat #0540, Act #0432 of 1998) General Bill, By Boan
A BILL TO AMEND ARTICLE 3, CHAPTER 4, TITLE 12, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO GENERAL POWERS AND DUTIES OF THE STATE TAX
COMMISSION BY ADDING SECTION 12-4-325 SO AS TO REQUIRE THE STATE TO DEFEND
EMPLOYEES AND OFFICERS OF THE DEPARTMENT OF REVENUE AGAINST LIABILITY ARISING
OUT OF THEIR EMPLOYMENT AND INDEMNIFY THEM FROM RESULTING LOSS; TO AMEND
SECTION 12-4-330, AS AMENDED, RELATING TO A WITNESS APPEARING BEFORE THE
DEPARTMENT OF REVENUE, SO AS TO PROVIDE THAT THE COMPENSATION OR FEE OF THE
WITNESS, OR THAT OF AN OFFICER SERVING PROCESS, BE PAID FROM INCOME TAX
REVENUES.-AMENDED TITLE
03/19/98 House Introduced and read first time HJ-58
03/19/98 House Referred to Committee on Ways and Means HJ-59
04/08/98 House Committee report: Favorable with amendment Ways
and Means HJ-16
04/14/98 House Amended HJ-45
04/14/98 House Read second time HJ-46
04/15/98 House Read third time and sent to Senate HJ-22
04/21/98 Senate Introduced and read first time SJ-25
04/21/98 Senate Referred to Committee on Finance SJ-25
05/20/98 Senate Recalled from Committee on Finance SJ-18
05/26/98 Senate Amended SJ-63
05/26/98 Senate Read second time SJ-63
05/26/98 Senate Ordered to third reading with notice of
amendments SJ-63
06/04/98 Senate Amended SJ-32
06/04/98 Senate Read third time and returned to House with
amendments SJ-32
06/04/98 House Concurred in Senate amendment and enrolled HJ-108
06/04/98 House Reconsider vote whereby concurred in Senate
amendment and enrolled HJ-208
06/04/98 House Non-concurrence in Senate amendment HJ-208
06/04/98 Senate Senate insists upon amendment and conference
committee appointed Sens. Drummond, Land,
McConnell SJ-223
06/04/98 House Conference committee appointed Reps. H. Brown,
Boan & Young-Brickell HJ-211
06/16/98 House Conference report received and adopted HJ-66
06/16/98 Senate Conference report received and adopted
06/16/98 House Ordered enrolled for ratification HJ-154
06/17/98 Ratified R 540
06/23/98 Signed By Governor
06/23/98 Effective date 06/23/98
07/07/98 Copies available
07/07/98 Act No. 432
(A432, R540, H4851)
AN ACT TO AMEND ARTICLE 3, CHAPTER 4, TITLE 12, CODE
OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL
POWERS AND DUTIES OF THE STATE TAX COMMISSION BY
ADDING SECTION 12-4-325 SO AS TO REQUIRE THE STATE TO
DEFEND EMPLOYEES AND OFFICERS OF THE DEPARTMENT OF
REVENUE AGAINST LIABILITY ARISING OUT OF THEIR
EMPLOYMENT AND INDEMNIFY THEM FROM RESULTING
LOSS; TO AMEND SECTION 12-4-330, AS AMENDED, RELATING
TO A WITNESS APPEARING BEFORE THE DEPARTMENT OF
REVENUE, SO AS TO PROVIDE THAT THE COMPENSATION OR
FEE OF THE WITNESS, OR THAT OF AN OFFICER SERVING
PROCESS, BE PAID FROM INCOME TAX REVENUES; TO AMEND
SECTION 12-6-3360, AS AMENDED, RELATING TO JOB TAX
CREDIT, SO AS TO REDEFINE CORPORATE OFFICE FACILITY
AND "QUALIFYING SERVICE-RELATED FACILITY", EFFECTIVE
FOR PROPERTY TAX YEARS BEGINNING AFTER 1998; TO
AMEND SECTION 12-6-3370, RELATING TO A STATE INCOME
TAX CREDIT IN CONNECTION WITH A WATER CONTROL
SYSTEM, SO AS TO FURTHER PROVIDE FOR THE
REQUIREMENTS IN ORDER TO QUALIFY FOR THE CREDIT; TO
AMEND SECTION 12-6-4970, RELATING TO TIME FOR FILING OF
TAX RETURN, SO AS TO ESTABLISH TIMES FOR FILING BY A
FOREIGN CORPORATION WITHOUT A PLACE OF BUSINESS IN
THE UNITED STATES AND BY ELECTRONIC FILING; TO AMEND
SECTION 12-6-5550, RELATING TO INCOME TAX REFUNDS, SO
AS TO PROVIDE THAT FEDERAL AND STATE REFUNDS ARE
PAYABLE TO THE SURVIVING SPOUSE OF A DECEASED
TAXPAYER; TO AMEND SECTION 12-11-30, RELATING TO THE
INCOME TAX REPLACING MOST OTHER TAXES AGAINST
BANKS, SO AS TO CHANGE REFERENCES IN THE SECTION
FROM "DOCUMENTARY STAMP TAX" TO "DEED RECORDING
FEE"; TO ADD SECTION 12-20-175 SO AS TO ALLOW
CORPORATION LICENSE FEES TO BE REDUCED BY CERTAIN
INCOME TAX CREDITS; TO AMEND SECTION 12-21-2550,
RELATING TO STAMP AND BUSINESS LICENSE TAXES, SO AS
TO DELETE THE TEN PERCENT PENALTIES FOR FAILURE TO
MAKE A RETURN OR TO TIMELY PAY THE TAX DUE; TO
AMEND SECTION 12-21-6580, RELATING TO CALCULATION OF
ADMISSIONS TAX ON EXPANDED FACILITIES, SO AS TO
UPDATE CROSS REFERENCES; TO AMEND SECTION 12-36-1340,
RELATING TO COLLECTION OF SALES AND USE TAX BY A
RETAIL SELLER, SO AS TO REVISE THE CIRCUMSTANCES
WHEN A SELLER MUST COLLECT AND REMIT TAX AND
OBTAIN A RETAIL LICENSE FROM THE DEPARTMENT; TO
AMEND SECTION 12-37-2860, AS AMENDED, RELATING TO
ONE-TIME FEES ON SEMITRAILERS AND TRAILERS OF MOTOR
CARRIERS, SO AS TO ALLOW THE DEPARTMENT TO KEEP AND
SPEND THE FEE REVENUE FOR ADMINISTRATION OF THE FEE
AND PROVIDE THAT THE DEPARTMENT OF PUBLIC SAFETY
DESIGN A PERMANENT TAG FOR DISPLAY ON THE REAR
EXTERIOR OF THE TRAILER OR SEMITRAILER; TO AMEND
SECTION 12-54-25, AS AMENDED, RELATING TO INTEREST DUE
ON REFUNDED OR CREDITED TAX, SO AS TO PROVIDE THE
INTEREST BE PAID FROM REVENUE RAISED BY THE SAME
TYPE TAX AS THAT BEING REFUNDED OR CREDITED; TO
AMEND SECTION 12-54-55, AS AMENDED, RELATING TO
PENALTIES FOR THE UNDERPAYMENT OF DECLARATION OF
INCOME TAX, SO AS TO FURTHER PROVIDE FOR APPLICATION
OF THE PENALTY; TO AMEND SECTION 12-54-160, RELATING
TO WAIVER BY THE DEPARTMENT OF REVENUE OF
PENALTIES ON PAST DUE TAXES, SO AS TO ALLOW THE
WAIVER, DISMISSAL, OR REDUCTION OF PENALTIES UNLESS
SPECIFICALLY PROHIBITED OTHERWISE; TO AMEND SECTION
12-56-90, RELATING TO SET-OFF DEBT COLLECTION, SO AS TO
PROVIDE THAT THE EXCHANGE OF INFORMATION AMONG
THE DEPARTMENT OF REVENUE, THE DEBTOR, AND THE
CLAIMANT AGENCY IS LAWFUL; TO AMEND SECTION
44-96-170, AS AMENDED, RELATING TO SOLID WASTE
REGULATION AND DISPOSAL, SO AS TO PROVIDE FOR A
REFUND OF THE NEW TIRE FEE FOR EACH WASTE TIRE TAKEN
TO A WASTE TIRE DISPOSAL FACILITY AND DELETE
REQUIREMENTS THAT CERTAIN REFUNDS MUST BE CHARGED
AGAINST A COUNTY'S DISTRIBUTION; TO AMEND SECTION
4-10-90, AS AMENDED, RELATING TO ALLOCATIONS TO LOCAL
GOVERNING BODIES FROM THE PROPERTY TAX CREDIT FUND
AND COUNTY/MUNICIPAL REVENUE FUND, SO AS TO REQUIRE
PROSPECTIVE CORRECTION OF MISALLOCATIONS DUE TO
CITY OR COUNTY CODE ERRORS, FOR TAX YEARS AFTER 1998;
AND TO AMEND SECTION 4-12-20, RELATING TO LEASE
PROVISIONS FOR FEES IN LIEU OF PROPERTY TAXES, SO AS TO
ALLOW THE PARTIES TO THE LEASE AGREEMENTS TO BE
OTHER THAN A COUNTY AND OTHER THAN AN INDUSTRY.
Be it enacted by the General Assembly of the State of South Carolina:
Defense and indemnification of department employees
SECTION 1. Article 3, Chapter 4, Title 12 of the 1976 Code is
amended by adding:
"Section 12-4-325. (A) The State shall defend employees and
officers of the Department of Revenue against liability arising out of their
actions within the scope of their employment and indemnify them from
resulting loss when they are sued in their official or individual capacities,
or both.
(B) Department of Revenue employees and officers are acting within
the scope of their employment when administering any South Carolina
statute which has not been held to be unconstitutional or unlawful by a
final decision of a court of competent jurisdiction. For purposes of this
section, a final decision is the decision of a court declaring the South
Carolina statute unconstitutional or otherwise unlawful and from which
the appropriate officials of this State may not or do not take an appeal or
request a rehearing."
Witness and service fees
SECTION 2. Section 12-4-330(D) of the 1976 Code is amended to
read:
"(D) An officer who serves summons or subpoenas and a witness
appearing before the Department of Revenue receive the same
compensation as an officer and a witness in the circuit court. The
department may incur and pay the expense of obtaining expert witnesses
or of other evidence for use by the department in a judicial or
administrative proceeding. This compensation and expert witness
expense must be paid upon certificate of the department by the State
Treasurer, by drawing upon funds from the tax on income as provided by
Section 12-6-510."
Job tax credit
SECTION 3. A. Section 12-6-3360(M)(2), (10), and (13) of the 1976
Code, as last amended by Act 143 of 1997, is further amended to read:
"(2) 'Appropriate agency' means the Department of Revenue, except
that for taxpayers subject to the premium tax imposed by Chapter 7 of
Title 38, it means the Department of Insurance.
(10) 'Corporate office facility' means a corporate headquarters that
meets the definition of a 'corporate headquarters' contained in Section
12-6-3410(J)(1).
(13) 'Qualifying service-related facility' means:
(a) an establishment engaged in an activity or activities listed under
the Standard Industrial Classification (SIC) Code 80 according to the
Federal Office of Management and Budget Standard Industrial
Classification Manual, 1987 edition; or
(b) a business, other than a business engaged in legal, accounting,
or investment services or retail sales, which has a net increase of at least:
(i) two hundred fifty jobs at a single location;
(ii) one hundred twenty-five jobs at a single location and the jobs
have an average cash compensation level of more than one and one-half
times the per capita income in the county where the jobs are located at the
time the jobs are filled;
(iii) seventy-five jobs at a single location and the jobs have an
average cash compensation level of more than twice the per capita income
in the county where the jobs are located at the time the jobs are filled; or
(iv) thirty jobs at a single location and the jobs have an average
cash compensation level of more than two and one-half times the per
capita income in the county where the jobs are located at the time the jobs
are filled.
The per capita income for each county is determined by using the most
recent data available from the Board of Economic Advisors.
Determination of the required number of jobs is in accordance with the
monthly average described in subsection (F)."
B. Notwithstanding any general effective date provided in this act, this
section is effective for property tax years beginning after 1998.
Tax credits for water control systems
SECTION 4. Section 12-6-3370(D) of the 1976 Code, as added by Act
76 of 1995, is amended to read:
"(D) To qualify for the credit the taxpayer must obtain a construction
permit issued by the Department of Health and Environmental Control or
proof of exemption from permit requirements issued by the department,
the Natural Resources Conservation Service, or a local Soil and Water
Conservation District."
Time to file returns
SECTION 5. Section 12-6-4970 of the 1976 Code, as added by Act 76
of 1995, is amended to read:
"Section 12-6-4970. (A) Returns of taxpayers, except as otherwise
provided, must be filed on or before the fifteenth day of the fourth month
following the taxable year.
(B) Returns of corporations must be filed on or before the fifteenth day
of the third month following the taxable year. Returns for foreign
corporations that do not maintain an office or place of business in the
United States must be filed on or before the fifteenth day of the sixth
month following the taxable year.
(C) Returns of organizations exempt under Internal Revenue Code
Section 501 reporting unrelated business income pursuant to Section
12-6-4910(8), must be filed on or before the fifteenth day of the fifth
month following the taxable year.
(D) Information returns provided in Section 12-6-4950 must be filed
on or before March 15 of each year.
(E) Returns filed electronically have the same due dates as provided
in this section."
Income tax refunds belonging to surviving spouse
SECTION 6. Section 12-6-5550 of the 1976 Code, as added by Act 76
of 1995, is amended to read:
"Section 12-6-5550. (A) A federal or state income tax overpayment
due to a person who is deceased at the time of the refund is the sole and
separate property of the surviving spouse irrespective of the deceased's
filing status on the return.
(B) A refund by the United States or any state directly to the surviving
spouse operates as a complete acquittal and discharge of liability from
suit, claim, or demand of any nature by any heir, distributee, or creditor
of the decedent, or by any other person."
Tax on income of banks replaces other taxes
SECTION 7. Section 12-11-30 of the 1976 Code is amended to read:
"Section 12-11-30. The income tax provided for in this chapter is
instead of all other taxes on banks, except the use tax, the deed recording
fee, and taxes on real property. The real property of a bank is taxed in the
place where it is located."
Reduction of license fees
SECTION 8. The 1976 Code is amended by adding:
"Section 12-20-175. License fees may be reduced by credits provided
in Section 12-6-3410 or Section 12-6-3480, or both of them."
Stamp and business license tax payable monthly
SECTION 9. Section 12-21-2550 of the 1976 Code is amended to
read:
"Section 12-21-2550. (A) The license tax imposed by this article is
due and payable in monthly installments on or before the twentieth day
of each month. A person liable to the tax shall make a true and correct
return to the department, in such form as it prescribes, showing the
number and prices of admissions during the previous month, and remit the
tax with the return.
(B) If a person fails to make a true and correct return or fails to file the
return, the department shall make a return upon the information it is able
to obtain."
Calculation of admissions tax on expanded facilities
SECTION 10. Section 12-21-6580 of the 1976 Code, as added by Act
109 of 1997, is amended to read:
"Section 12-21-6580. If a major tourism or recreation facility or a
major tourism and recreation area is expanded or improved with an
additional twenty million dollar investment being made within an
investment period, the amount of admissions tax revenues subject to
Sections 12-21-6530 and 12-21-6540 for the benefit period is the amount
in excess of the annual admissions tax revenues previously generated by
the major tourism or recreation facility, or by all of the tourism or
recreation facilities within the major tourism or recreation area, as
appropriate. This amount is determined by using the average of the
admissions tax revenues generated during the twenty-four months
preceding the date of the filing of the certification application."
Collection of tax by retail sellers
SECTION 11. Section 12-36-1340 of the 1976 Code, as added by Act
612 of 1990, is amended to read:
"Section 12-36-1340. Each seller making retail sales of tangible
personal property for storage, use, or other consumption in this State shall
collect and remit the tax in accordance with this chapter and shall obtain
from the department a retail license as provided in this chapter, if the
retail seller:
(1) maintains a place of business;
(2) qualifies to do business;
(3) solicits and receives purchases or orders by an agent or salesman;
or
(4) distributes catalogs, or other advertising matter, and by reason of
that distribution receives and accepts orders from residents within the
State."
One-time fees
SECTION 12. Section 12-37-2860 of the 1976 Code, as last amended
by Act 125 of 1997, is further amended to read:
"Section 12-37-2860. (A) Instead of the property taxes and
registration requirements contained in Sections 56-3-110 and 56-3-700 on
semitrailers and trailers of motor carriers as defined in Section
12-37-2810, a one-time fee payable to the Department of Public Safety in
the amount of eighty-seven dollars is due on all semitrailers and trailers
currently registered and subsequently on each semitrailer and trailer
before being placed in service.
(B) Twelve dollars of the one-time fee must be distributed to the
Department of Revenue and may be retained by the Department of
Revenue and expended in budgeted operations to record and administer
the fee. The remaining seventy-five dollars of the fee must be distributed
based on the distribution formula contained in Section 12-37-2870 and
must occur by the fifteenth day of the month following the month in
which the fees are collected.
(C) The fee required by this section is due on or before March 31,
1998, for the initial registration.
(D) The Department of Public Safety shall design a permanent tag for
display on the exterior of the rear of the trailer or semitrailer in a
conspicuous place."
Interest due on late taxes
SECTION 13. Section 12-54-25(C) of the 1976 Code is amended to
read:
"(C)(1) Any tax refunded or credited must include interest on the
amount of the credit or refund from the later of either the date the tax was
paid or the original due date of the return to either the date the refund was
sent or delivered to the taxpayer or the credit made.
(2) This interest must be paid by drawing upon funds from the type
of tax being refunded or credited. The funds withdrawn may be expended
by the department in the payment of interest on refunds.
(3) Interest is not allowed pursuant to this subsection on an
overpayment if it is refunded:
(a) within seventy-five days after the last day prescribed for
filing the tax return, without regard to an extension of time for filing;
(b) within seventy-five days after the return is filed, in the case
of a return filed after the last date; or
(c) within seventy-five days after the taxpayer files a claim for
a credit or refund for the overpayment of tax for the period between the
filing of the claim to the payment of the refund."
Interest on underpayment of declaration of estimated tax
SECTION 14. Section 12-54-55 of the 1976 Code, as last amended by
Act 76 of 1995, is further amended to read:
"Section 12-54-55. In the case of an underpayment of declaration of
estimated tax by an individual, estate, trust, or corporate taxpayer, instead
of all other penalties provided by law, there must be added to the tax for
the taxable year a penalty to be determined as follows:
(1) In the case of an individual taxpayer, estate, or trust in the same
manner as prescribed by the provisions of Internal Revenue Code Section
6654. No interest or penalty is due under this item for underpayments
attributable to personal service income earned in another state on which
income tax due the other state was withheld.
(2) In the case of a corporate taxpayer, in the same manner as
prescribed by the provisions of Internal Revenue Code Section 6655 and
applicable regulations, except that:
(a) the small amount provisions are one hundred dollars rather than
five hundred dollars;
(b) the first installment payment for corporations is due on March
15, or in the case of a taxable year beginning on any date other than
January 1, there is substituted the month which corresponds to that date;
and
(c) for the annualized installment method, income for the first
installment is annualized using the first two months of the taxable year."
Waiver, dismissal, or reduction of penalties
SECTION 15. Section 12-54-160 of the 1976 Code is amended to read:
"Section 12-54-160. Unless otherwise specifically prohibited, the
department may waive, dismiss, or reduce penalties provided for in this
chapter."
Disclosure of information from department
SECTION 16. Section 12-56-90 of the 1976 Code, as added by Act 76
of 1995, is amended to read:
"Section 12-56-90. (A) The exchange of information among the
department, claimant agency, and the debtor pursuant to this chapter is
lawful.
(B) The information obtained by a claimant agency from the
department in accordance with the exemption allowed by subsection (A)
may be used by the agency only in the pursuit of its debt collection duties
and practices. A person employed by or formerly employed by the agency
who discloses the information for another purpose is subject to the
penalties provided in Section 12-54-240."
Waste tires
SECTION 17. Section 44-96-170(L) and (M) of the 1976 Code, as last
amended by Act 181 of 1993, is further amended to read:
"(L)(1) For sales made on or after November 1, 1991, there is
imposed a fee of two dollars for each new tire sold to the ultimate
consumer, whether or not the tire is mounted by the seller. The
wholesaler or retailer receiving new tires from unlicensed wholesalers is
responsible for paying the fee imposed by this subsection.
(2) The Department of Revenue shall administer, collect, and
enforce the tire disposal fee in the same manner that the sales and use
taxes are collected pursuant to Chapter 36 of Title 12. The fee imposed
by this subsection must be remitted on a monthly basis. Instead of the
discount allowed pursuant to Section 12-36-2610, the taxpayer may retain
three percent of the total fees collected as an administrative collection
allowance. This allowance applies whether or not the return is timely
filed.
(3) The department shall deposit all fees collected to the credit of
the State Treasurer who shall establish a separate and distinct account
from the state general fund.
(a) The State Treasurer shall distribute one and one-half dollars
for each tire sold, less applicable credit, refund, and discount, to each
county based upon the population in each county according to the most
recent United States Census. The county shall use these funds for
collection and disposal of waste tires generated within that county.
(b) The remaining portion of the tire disposal fee is to be credited
to the Solid Waste Management Trust Fund by the State Treasurer for the
Waste Tire Grant Trust Fund, established under the administration of the
South Carolina Department of Health and Environmental Control.
(c) The General Assembly shall review the waste tire disposal fee
every five years.
(M) A wholesaler or retailer required to submit a fee pursuant to
subsection (L) who delivers or arranges delivery of waste tires to a
permitted waste tire disposal facility may apply for a refund of one dollar
for each tire delivered. A refund may not be approved for a number of
tires delivered in excess of the number of new tires sold by the individual
wholesaler or retailer. Verification must be provided as required by the
South Carolina State Department of Revenue."
Department administers and collects local sales and use tax
SECTION 18. A. Section 4-10-90(C) of the 1976 Code, as last
amended by Act 181 of 1993, is further amended to read:
"(C) The Department of Revenue shall furnish data to the State
Treasurer and to the governing bodies of the counties and municipalities
receiving revenues for the purpose of calculating distributions and
estimating revenues. The information which may be supplied to counties
and municipalities includes, but is not limited to, gross receipts, net
taxable sales, and tax liability by taxpayers. Information by taxpayer
received by appropriate county or municipal officials is considered
confidential and is governed by the provisions of Section 12-54-240. A
person violating this section is subject to the penalties provided in Section
12-54-240. The State Treasurer may correct misallocations from the
Property Tax Credit Fund and County/Municipal Revenue Fund by
adjusting subsequent allocations, but these adjustments may be made only
in allocations made in the same fiscal year as the misallocation. However,
allocations made as a result of city or county code errors must be
corrected prospectively."
B. This section is effective for tax years beginning after December 31,
1998.
Lease agreements for fees in lieu of taxes
SECTION 19. A. Section 4-12-20 of the 1976 Code, as added by Act
125 of 1995, is amended to read:
"Section 4-12-20. Every agreement between a county, municipality,
school district, water and sewer authority, or other political subdivision
and another party in the form of a lease must contain a provision requiring
the other party to make payments to the county, municipality, school
district, water and sewer authority, and other political subdivisions in
which the project is located in lieu of taxes, in the amounts that would
result from taxes levied on the project by a county, municipality, school
district, water and sewer authority, and other political subdivisions, if the
project were owned by the other party, but with appropriate reductions
similar to the tax exemptions, if any, which would be afforded to the other
party if it were owner of the project."
B. This section is effective for leases entered into after the approval by
the Governor.
Time effective
SECTION 20. This act takes effect upon approval by the Governor.
Approved the 23rd day of June, 1998. |