S*0310(Rat #0151, Act #0099 of 2007)  General Bill, By Hayes, Setzler and 
Gregory
 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 PHASE-IN AN
 EXEMPTION FOR THE GROSS PROCEEDS OF SALES OR SALES PRICE OF DURABLE MEDICAL
 EQUIPMENT AND RELATED SUPPLIES PAID FOR DIRECTLY BY THE MEDICAID OR MEDICARE
 PROGRAM UNDER REGULATIONS PROHIBITING PAYMENT OF SALES TAXES ON THESE ITEMS
 WHEN SOLD BY A PROVIDER WITH A SOUTH CAROLINA RETAIL LICENSE WHOSE PRINCIPAL
 PLACE OF BUSINESS IS IN SOUTH CAROLINA AND TO EXEMPT PRESCRIPTION DRUGS
 DISPENSED TO A MEDICARE PART A PATIENT RESIDING IN A NURSING HOME. - ratified
 title

   01/23/07  Senate Introduced and read first time SJ-4
   01/23/07  Senate Referred to Committee on Finance SJ-4
   05/16/07  Senate Committee report: Favorable with amendment
                     Finance SJ-10
   05/17/07  Senate Amended SJ-21
   05/17/07  Senate Read second time SJ-21
   05/17/07  Senate Unanimous consent for third reading on next
                     legislative day SJ-21
   05/18/07  Senate Read third time and sent to House SJ-1
   05/18/07         Scrivener's error corrected
   05/22/07  House  Introduced and read first time HJ-5
   05/22/07  House  Referred to Committee on Ways and Means HJ-5
   05/23/07  House  Recalled from Committee on Ways and Means HJ-32
   05/24/07  House  Amended HJ-36
   05/24/07  House  Read second time HJ-37
   05/24/07  House  Unanimous consent for third reading on next
                     legislative day HJ-37
   05/25/07  House  Read third time and returned to Senate with amendments
   05/25/07         Scrivener's error corrected
   05/30/07  Senate House amendment amended SJ-22
   05/30/07  Senate Returned to House with amendments SJ-22
   05/31/07         Scrivener's error corrected
   06/05/07  House  Non-concurrence in Senate amendment HJ-67
   06/06/07  Senate Senate insists upon amendment and conference
                     committee appointed Peeler, Setzler, and O'Dell SJ-30
   06/06/07  House  Conference committee appointed Reps. White,
                     Bingham, and Kirsh HJ-18
   06/07/07  House  Conference report received and adopted HJ-53
   06/07/07  Senate Conference report adopted SJ-74
   06/07/07  House  Ordered enrolled for ratification HJ-140
   06/12/07         Ratified R 151
   06/19/07         Became law without Governor's signature
   06/20/07         Copies available
   06/20/07         Effective date 07/01/07
   06/27/07         Act No. 99

(A99, R151, S310)

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 PHASE-IN AN EXEMPTION FOR THE GROSS PROCEEDS OF SALES OR SALES PRICE OF DURABLE MEDICAL EQUIPMENT AND RELATED SUPPLIES PAID FOR DIRECTLY BY THE MEDICAID OR MEDICARE PROGRAM UNDER REGULATIONS PROHIBITING PAYMENT OF SALES TAXES ON THESE ITEMS WHEN SOLD BY A PROVIDER WITH A SOUTH CAROLINA RETAIL LICENSE WHOSE PRINCIPAL PLACE OF BUSINESS IS IN SOUTH CAROLINA AND TO EXEMPT PRESCRIPTION DRUGS DISPENSED TO A MEDICARE PART A PATIENT RESIDING IN A NURSING HOME.

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

Certain durable medical equipment-sales tax exemption phased in

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

"( )    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."

B.    Notwithstanding the sales and use rates 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 of items described in subsection A of this section is five and one-half percent for such sales from July 1, 2007.

C.    Beginning with the February 15, 2008, forecast by the Board of Economic Advisors of annual general fund revenue growth for the upcoming fiscal year, and annually thereafter, if the forecast of that growth equals at least five percent of the most recent estimate by the board of general fund revenues for the current fiscal year, then the applicable state sales and use tax rate imposed on items described in subsection A. of this section is reduced, effective the following July first, by one and one-half percent in the first year and by one percent every year thereafter. That reduced rate applies until a subsequent reduction takes effect. If the February fifteenth forecast meets the requirement for a rate reduction, the board promptly shall certify this result in writing to the Department of Revenue. On the July first that the rate attains zero, the provisions of subsections B. and C. of this section no longer apply.

Sales tax exemption

SECTION    2.    Section 12-36-2120(28) of the 1976 Code is amended by adding a new subitem appropriately lettered to read:

"( )    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."

Time effective

SECTION    3.    This act takes effect July 1, 2007.

Ratified the 12th day of June, 2007.

Became law without the signature of the Governor -- 6/19/07.