S 0559(Rat #0146)  General Bill, By Senate Finance
 A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT, EFFECTIVE
 JULY 1, 2006, THE GROSS PROCEEDS OF SALES OF FOOD ITEMS ELIGIBLE FOR PURCHASE
 WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE FOR
 PHASING DOWN THE RATE OF THE SALES TAX ON THESE ITEMS IN INCREMENTS OF ONE
 PERCENT, TO PROVIDE FOR THE APPLICATION OF THIS EXEMPTION TO LOCAL SALES AND
 USE TAXES, AND TO PROVIDE GENERAL FUND ACCOUNTING CHANGES TO HOLD HARMLESS
 STATE REVENUES FOR PUBLIC EDUCATION.-AMENDED TITLE

   04/05/01  Senate Introduced, read first time, placed on calendar
                     without reference SJ-4
   04/10/01  Senate Read second time SJ-18
   04/10/01  Senate Ordered to third reading with notice of
                     amendments SJ-18
   04/17/01  Senate Read third time and sent to House SJ-22
   04/17/01  House  Introduced and read first time HJ-18
   04/17/01  House  Referred to Committee on Ways and Means HJ-18
   05/16/01  House  Committee report: Favorable with amendment Ways
                     and Means HJ-10
   05/17/01  House  Amended HJ-35
   05/17/01  House  Read second time HJ-38
   05/17/01  House  Unanimous consent for third reading on next
                     legislative day HJ-38
   05/18/01  House  Read third time and returned to Senate with
                     amendments HJ-6
   05/22/01  Senate House amendment amended SJ-8
   05/22/01  Senate  Carried over SJ-8
   06/21/01  Senate House amendment amended SJ-22
   06/21/01  Senate Returned to House with amendments SJ-22
   06/21/01  House  Concurred in Senate amendment and enrolled HJ-12
   06/21/01  House  Roll call Yeas-84 Nays-15 HJ-13
   06/21/01  House   Reconsider vote whereby House concurred in
                     Senate amendments HJ-14
   06/21/01  House  Concurred in Senate amendment and enrolled HJ-14
   06/21/01  House  Roll call Yeas-86  Nays-12 HJ-15
   06/21/01         Ratified R 146
   06/27/01         Vetoed by Governor
   06/28/01  Senate Veto sustained Yeas-xxx  Nays-xxx SJ-31

(R146, S559)

AN ACT TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT, EFFECTIVE JULY 1, 2006, THE GROSS PROCEEDS OF SALES OF FOOD ITEMS ELIGIBLE FOR PURCHASE WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE FOR PHASING DOWN THE RATE OF THE SALES TAX ON THESE ITEMS IN INCREMENTS OF ONE PERCENT, TO PROVIDE FOR THE APPLICATION OF THIS EXEMPTION TO LOCAL SALES AND USE TAXES, AND TO PROVIDE GENERAL FUND ACCOUNTING CHANGES TO HOLD HARMLESS STATE REVENUES FOR PUBLIC EDUCATION.

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

Exemption allowed, tax rate reduced

SECTION 1. A. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( ) effective July 1, 2006, food items eligible for purchase with United States Department of Agriculture food coupons. The exemption allowed by this item does not extend to a local sales and use tax imposed pursuant to a referendum held before July 1, 2001, except where a local sales and use tax specifically exempts these items. The exemption allowed by this item applies to a local sales and use tax imposed pursuant to a referendum held after June 30, 2001. An amount of general fund revenue not derived from the state sales and use tax equal to the amount of state sales and use tax revenue not collected because of the exemption allowed by this item is deemed state sales and use tax revenue and must be used as provided in Section 59-21-1010(A) and (B), including the appropriate amount required to be credited to the Education Act Improvement Fund;"

B. Notwithstanding the rates of tax imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons, is four percent for sales from July 1, 2001, through June 30, 2003, three percent for such sales from July 1, 2003, through June 30, 2004, two percent for such sales from July 1, 2004, through June 30, 2005, and one percent for such sales from July 1, 2005, through June 30, 2006. An amount of general fund revenue not derived from the state sales and use tax equal to the state sales and use tax not collected because of the reduced state sales tax rate allowed by this section is deemed state sales and use tax revenue and must be used as provided in Section 59-21-1010(A) and (B) of the 1976 Code, including whatever amount is necessary to be credited to the Education Act Improvement Fund so that the total in that fund is not reduced by the reduced rates allowed by this section. Except where otherwise exempt, the local sales and use taxes authorized by law continue to apply to those sales subject to the reduced state rate of tax provided in this section, but such a tax imposed pursuant to a referendum held after June 30, 2001, does not apply to those sales subject to the reduced state rate of tax provided in this section.

Time effective

SECTION 2. This act takes effect July 1, 2001.

Ratified the 21st day of June, 2001.

__________________________________________

President of the Senate

___________________________________________

Speaker of the House of Representatives

Approved the ____________ day of _____________________2001.

___________________________________________

Governor

----XX----hird reading on next legislative day HJ-38 05/18/01 House Read third time and returned to Senate with amendments HJ-6 05/22/01 Senate House amendment amended SJ-8 05/22/01 Senate Carried over SJ-8 06/21/01 Senate House amendment amended SJ-22 06/21/01 Senate Returned to House with amendments SJ-22 06/21/01 House Concurred in Senate amendment and enrolled HJ-12 06/21/01 House Roll call Yeas-84 Nays-15 HJ-13 06/21/01 House Reconsider vote whereby House concurred in Senate amendments HJ-14 06/21/01 House Concurred in Senate amendment and enrolled HJ-14 06/21/01 House Roll call Yeas-86 Nays-12 HJ-15 06/21/01 Ratified R 146 06/27/01 Vetoed by Governor 06/28/01 Senate Veto sustained Yeas-xxx Nays-xxx SJ-31

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NOTE: THIS COPY IS A TEMPORARY VERSION. THIS IS NOT THE FINAL VERSION.

(R146, S559)

AN ACT TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT, EFFECTIVE JULY 1, 2006, THE GROSS PROCEEDS OF SALES OF FOOD ITEMS ELIGIBLE FOR PURCHASE WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE FOR PHASING DOWN THE RATE OF THE SALES TAX ON THESE ITEMS IN INCREMENTS OF ONE PERCENT, TO PROVIDE FOR THE APPLICATION OF THIS EXEMPTION TO LOCAL SALES AND USE TAXES, AND TO PROVIDE GENERAL FUND ACCOUNTING CHANGES TO HOLD HARMLESS STATE REVENUES FOR PUBLIC EDUCATION.

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

Exemption allowed, tax rate reduced

SECTION 1. A. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( ) effective July 1, 2006, food items eligible for purchase with United States Department of Agriculture food coupons. The exemption allowed by this item does not extend to a local sales and use tax imposed pursuant to a referendum held before July 1, 2001, except where a local sales and use tax specifically exempts these items. The exemption allowed by this item applies to a local sales and use tax imposed pursuant to a referendum held after June 30, 2001. An amount of general fund revenue not derived from the state sales and use tax equal to the amount of state sales and use tax revenue not collected because of the exemption allowed by this item is deemed state sales and use tax revenue and must be used as provided in Section 59-21-1010(A) and (B), including the appropriate amount required to be credited to the Education Act Improvement Fund;"

B. Notwithstanding the rates of tax imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons, is four percent for sales from July 1, 2001, through June 30, 2003, three percent for such sales from July 1, 2003, through June 30, 2004, two percent for such sales from July 1, 2004, through June 30, 2005, and one percent for such sales from July 1, 2005, through June 30, 2006. An amount of general fund revenue not derived from the state sales and use tax equal to the state sales and use tax not collected because of the reduced state sales tax rate allowed by this section is deemed state sales and use tax revenue and must be used as provided in Section 59-21-1010(A) and (B) of the 1976 Code, including whatever amount is necessary to be credited to the Education Act Improvement Fund so that the total in that fund is not reduced by the reduced rates allowed by this section. Except where otherwise exempt, the local sales and use taxes authorized by law continue to apply to those sales subject to the reduced state rate of tax provided in this section, but such a tax imposed pursuant to a referendum held after June 30, 2001, does not apply to those sales subject to the reduced state rate of tax provided in this section.

Time effective

SECTION 2. This act takes effect July 1, 2001.

Ratified the 21st day of June, 2001.

__________________________________________

President of the Senate

___________________________________________

Speaker of the House of Representatives

Approved the ____________ day of _____________________2001.

___________________________________________

Governor

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