H 4849 Session 112 (1997-1998)
H 4849 General Bill, By Boan
A BILL TO AMEND ARTICLE 5, CHAPTER 21, TITLE 12, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO TAXATION OF TOBACCO, AMMUNITION, AND PLAYING
CARDS, BY ADDING SECTION 12-21-830 SO AS TO PROVIDE FOR REGULAR REPORTING AND
PAYMENT OF TAXES ON CIGARETTES AND TOBACCO PRODUCTS; TO AMEND SECTION
12-21-660, AS AMENDED, RELATING TO LICENSING REQUIREMENTS FOR ENGAGING IN THE
TOBACCO BUSINESS, SO AS TO INCLUDE CIGARETTES AND TOBACCO PRODUCTS; TO AMEND
SECTION 12-21-735, AS AMENDED, RELATING TO PAYMENT OF LICENSE TAX ON
CIGARETTES, SO AS TO INCLUDE TOBACCO PRODUCTS AND TO INCLUDE PAYMENT BY
PERSONS WHO SELL OR POSSESS FOR SALE CIGARETTES AND TOBACCO PRODUCTS FOR USE
OR CONSUMPTION; TO AMEND SECTION 12-21-760, RELATING TO THE INTENT OF THE
STAMP AND BUSINESS TAX, SO AS TO PROVIDE THAT ONCE SUCH TAXES HAVE BEEN PAID
ON CIGARETTES AND TOBACCO PRODUCTS, NO FURTHER TAX IS REQUIRED; TO AMEND
SECTION 12-21-780, AS AMENDED, RELATING TO TAX ON TOBACCO PRODUCTS SO AS TO
EXPRESSLY INCLUDE CIGARETTES; TO AMEND SECTION 12-21-800, AS AMENDED, RELATING
TO THE DEFINITION OF TOBACCO PRODUCTS, SO AS TO DELETE CERTAIN CROSS
REFERENCES; AND TO REPEAL SECTION 12-21-610, RELATING TO LIABILITY FOR TAX ON
THE SALE OF TOBACCO, AMMUNITION, AND PLAYING CARDS; TO REPEAL SECTION
12-21-750, RELATING TO CERTAIN RETAIL DEALERS FURNISHING DUPLICATE INVOICES;
TO REPEAL SECTION 12-21-770, RELATING TO LIABILITY FOR TAX ON THE SALE AND
DISTRIBUTION OF CERTAIN ITEMS; TO REPEAL SECTION 12-21-810, RELATING TO THE
DEFINITION OF DISTRIBUTOR OF TOBACCO PRODUCTS.
03/19/98 House Introduced and read first time HJ-56
03/19/98 House Referred to Committee on Ways and Means HJ-57
A BILL
TO AMEND ARTICLE 5, CHAPTER 21, TITLE 12, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO
TAXATION OF TOBACCO, AMMUNITION, AND PLAYING
CARDS, BY ADDING SECTION 12-21-830 SO AS TO PROVIDE
FOR REGULAR REPORTING AND PAYMENT OF TAXES ON
CIGARETTES AND TOBACCO PRODUCTS; TO AMEND
SECTION 12-21-660, AS AMENDED, RELATING TO
LICENSING REQUIREMENTS FOR ENGAGING IN THE
TOBACCO BUSINESS, SO AS TO INCLUDE CIGARETTES AND
TOBACCO PRODUCTS; TO AMEND SECTION 12-21-735, AS
AMENDED, RELATING TO PAYMENT OF LICENSE TAX ON
CIGARETTES, SO AS TO INCLUDE TOBACCO PRODUCTS
AND TO INCLUDE PAYMENT BY PERSONS WHO SELL OR
POSSESS FOR SALE CIGARETTES AND TOBACCO
PRODUCTS FOR USE OR CONSUMPTION; TO AMEND
SECTION 12-21-760, RELATING TO THE INTENT OF THE
STAMP AND BUSINESS TAX, SO AS TO PROVIDE THAT
ONCE SUCH TAXES HAVE BEEN PAID ON CIGARETTES AND
TOBACCO PRODUCTS, NO FURTHER TAX IS REQUIRED; TO
AMEND SECTION 12-21-780, AS AMENDED, RELATING TO
TAX ON TOBACCO PRODUCTS SO AS TO EXPRESSLY
INCLUDE CIGARETTES; TO AMEND SECTION 12-21-800, AS
AMENDED, RELATING TO THE DEFINITION OF TOBACCO
PRODUCTS, SO AS TO DELETE CERTAIN CROSS
REFERENCES; AND TO REPEAL SECTION 12-21-610,
RELATING TO LIABILITY FOR TAX ON THE SALE OF
TOBACCO, AMMUNITION, AND PLAYING CARDS; TO
REPEAL SECTION 12-21-750, RELATING TO CERTAIN
RETAIL DEALERS FURNISHING DUPLICATE INVOICES; TO
REPEAL SECTION 12-21-770, RELATING TO LIABILITY FOR
TAX ON THE SALE AND DISTRIBUTION OF CERTAIN ITEMS;
TO REPEAL SECTION 12-21-810, RELATING TO THE
DEFINITION OF DISTRIBUTOR OF TOBACCO PRODUCTS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Article 5, Chapter 21, Title 12 of the 1976 Code is
amended by adding:
"Section 12-21-830. (A) The taxes imposed by the
provisions of this article, except as otherwise provided, are due and
payable in monthly installments by the twentieth day of the month
following the month in which the tax accrues. The department may
permit the filing of returns every twenty-eight days. These returns
must be filed within twenty days following the period covered by the
return. A return is filed timely if it is mailed and has a postmark
dated on or before the date the return is required by law to be filed.
(B) By the twentieth day of each month, a person liable for taxes
pursuant to this article shall render to the department, on a form
prescribed by it, a true and correct statement showing, by location,
the quantity of all cigarettes and the quantity and wholesale price of
all tobacco products.
(C) At the time of making the monthly report, the person shall
compute the taxes due and pay to the department that amount.
(D) Sales invoices of resident or nonresident persons liable for the
tax must indicate payment of the tax on cigarettes or other tobacco
products with the wording 'South Carolina Tax Paid'."
SECTION 2. Section 12-21-660 of the 1976 Code, as last amended
by act 181 of 1993, is further amended to read:
"Section 12-21-660. (A) Every A
person engaged in the business of purchasing, selling, or
distributing cigars, cheroots, stogies, cigarettes, snuff or
smoking or chewing or tobacco products at
wholesale, retail, or through vending machines within the
State, and all a cigarette, cigar and
tobacco product manufacturers' products
manufacturer's sales representatives
representative who conduct conducts
business in this State shall file with the Department of Revenue an
application for a license permitting him to engage in or
conduct such the business. When such
the business is conducted at two or more than
one separate places place, a separate license for
each place of business shall be is required. A
,except that a person whose business is conducted through
vending machines needs to need obtain only one
license, but shall maintain an up-to-date list of the location
of each vending machine operated under this the
license, and each manufacturer's sales representative
needs to need obtain only one license. The
provisions of this section shall do not apply to
persons who own and stock vending machines for use on their own
premises.
(B) Nothing in this section shall be construed as
requiring requires a license for the privilege of buying,
selling, or distributing leaf tobacco nor shall this section
apply applies to churches, schools, or charitable
organizations operating booths at state, county, or community fairs
or to school or church entertainments."
SECTION 3. Section 12-21-735 of the 1976 Code, as last amended
by Act 239 of 1996, is further amended to read:
"Section 12-21-735. (A) Each person or
distributor of cigarettes A person purchasing, selling, or
distributing cigarettes or tobacco products taxable under this
article, first upon receiving untaxed cigarettes or
tobacco products for sale or distribution in this State, is subject
to the tax imposed in Section 12-21-620. Each distributor
person required to pay the tax shall make a report to the
department, in the form the department prescribes, of all cigarettes
or tobacco products sold or disposed of in this State, and pay
taxes due thereon not later than the twentieth day of the
month next succeeding after the month of the sale or
disposition. However, any a person or
distributor making shipments of cigarettes or tobacco
products to retail locations in and out of this State shall apply to
the department for a license which enables them him
to purchase cigarettes or tobacco products free of tax, and
report and pay tax as provided in this section on sales of cigarettes
and tobacco products sold to locations in this State.
(B) A tax is levied upon the sale or possession for sale of
cigarettes or tobacco products for use or consumption by a person,
and upon receiving cigarettes or tobacco products for use or
consumption within this State the person is subject to the tax at the
rate set in Section 12-21-620. This tax does not apply to cigarettes
and tobacco products upon which the tax has been paid.
(C) The department shall require bonds or statements of
financial stability satisfactory to the department to cover
possible losses resulting from failure to remit taxes due.
(D) When the return required by this section is timely
filed and the taxes shown to be due are paid by the date specified in
this section, the person or distributor may deduct three and
one-half percent of the tax due."
SECTION 4. Section 12-21-760 of the 1976 Code is amended to
read:
"Section 12-21-760. It is the intent of this article to require all
manufacturers within this State, wholesale dealers, jobbers,
distributors, and retail dealers to affix the stamps
provided for in this article to taxable commodities, but when the
stamps have been affixed as required in this article no further or other
stamp shall be required under the provisions of this chapter regardless
of how often such articles may be sold or resold within this State
to remit the tax in this article, except that when the tax in this
article has been paid once on cigarettes or tobacco products, no
further tax is required."
SECTION 5. Section 12-21-780 of the 1976 Code, as last amended
by Act 239 of 1996, is further amended to read:
"Section 12-21-780. Every distributor A person
required to remit the tax on cigarettes and tobacco products,
on or before shall file, by the twentieth day of each
month, shall file with the South Carolina Department of
Revenue a return on forms to be prescribed and furnished by the
department showing the quantity of cigarettes and the
quantity and wholesale price of all tobacco products transported or
caused to be transported into the State by him or manufactured or
fabricated in the State for sale in this State. Every distributor
A person authorized by the department to make returns and
pay the tax on cigarettes and tobacco products sold, shipped,
or delivered by him to any a person in the State shall
file a return showing the quantity and wholesale price of all products
so sold, shipped, or delivered during the preceding calendar
month. These returns must contain such further information
as the department may require requires.
Every distributor The person shall pay to the
department, with the filing of the return, the tax
imposed under this article on cigarettes and tobacco
products for the month imposed under this article. When the
distributor or dealer person files the return and pays
the tax within the time specified in this section, he may deduct
therefrom three and one-half percent of the tax due."
SECTION 6. Section 12-21-800 of the 1976 Code, as last amended
by act 239 of 1996, is further amended to read:
"Section 12-21-800. As used in Sections 12-21-620 and
12-21-780 this article, 'tobacco products' means cigars,
cheroots, stogies, periques, granulated, plug cut, crimp cut, ready
rubbed, and other smoking tobacco, snuff, snuff flour, cavendish,
plug and twist tobacco, fine-cut, and other chewing tobacco, shorts,
refuse scraps, clippings, cuttings and sweepings of tobacco, and other
kinds and forms of tobacco, prepared in a manner to be suitable for
chewing or smoking in a pipe or otherwise, or both for chewing or
smoking, but does not include cigarettes."
SECTION 7. Sections 12-21-610, 12-21-750, 12-21-770, and
12-21-810 of the 1976 Code are repealed.
SECTION 8. This act is effective with respect to sales made on
and after the first day of the month following the month in which the
act is approved by the Governor.
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