S 1233 General Bill, By Jackson
 A BILL TO AMEND SECTION 12-36-910, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO SALES TAX ON GOODS AND SERVICES, SO AS TO ENACT A TEMPORARY
 ONE-CENT SALES TAX INCREASE TO LAST ONE YEAR AND TO AMEND SECTION 12-36-2620
 SO AS TO ALLOCATE THE REVENUE TO RESTORE EDUCATION AND HEALTH CARE BUDGET
 REDUCTIONS FOR FISCAL YEAR 2001-2002.

   04/18/02  Senate Introduced and read first time SJ-6
   04/18/02  Senate Referred to Committee on Finance SJ-6

TO AMEND SECTION 12-36-910, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX ON GOODS AND SERVICES, SO AS TO ENACT A TEMPORARY ONE-CENT SALES TAX INCREASE TO LAST ONE YEAR AND TO AMEND SECTION 12-36-2620 SO AS TO ALLOCATE THE REVENUE TO RESTORE EDUCATION AND HEALTH CARE BUDGET REDUCTIONS FOR FISCAL YEAR 2001-2002.

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

SECTION 1. Section 12-36-910 of the 1976 Code is amended to read:

"Section 12-36-910. (A) A sales tax, equal to fivesix percent of the gross proceeds of sales, is imposed upon every person engaged or continuing within this State in the business of selling tangible personal property at retail.

(1) The one percent increase is to have effect for one year only, beginning in the fiscal year 2002-2003 and ending with the ending of that fiscal year, at which point the sales tax will revert back to five percent."

SECTION 2. Section 12-36-2630 of the 1976 Code is amended to read:

"SECTION 12-36-2620.

(A)The taxes imposed by Sections 12-36-910, 12-36-920(B), 12-36-1310, and 12-36-1320 are composed of two taxes as follows:

(1) a four percent tax, which must be credited as provided in Section 59-21-1010(A), and

(2) a one percent tax, which must be credited as provided in Section 59-21-1010(B). The one percent tax specified in this item does not apply to sales to an individual eighty-five years of age or older purchasing tangible personal property for his own personal use, if at the time of sale, the individual requests the one percent exclusion from tax and provides the retailer with proof of age.

(3) The one percent tax temporarily imposed by Sections 12-36-910 for fiscal year 2002-2003 must be used for restoration of fiscal year 2001-2002 budget reductions at the following state agencies:

a) Department of Education, including the general fund and the Education Improvement Act;

b) Department of Health and Human Services;

c) Department of Mental Health; and

d) Department of Disabilities and Special Needs.

Any monies in excess of the amount needed to satisfy these budget restorations shall be carried forward in a reserve account and must be deposited by the State Treasurer in a fund separate and distinct from the general fund of the State. All money not appropriated and earnings on investments in this fund must remain part of the separate fund and must not be deposited in the general fund. Money from this fund may be spent only to offset budget reductions assessed by the Budget and Control Board at the following agencies:

a) Department of Education including the Educational Improvement Act;

b) Department of Health and Human Services;

c) Department of Mental Health; and

d) Department of Disabilities and Special needs

SECTION . This act takes effect upon approval by the Governor.