Current Status Bill Number:View additional legislative information at the LPITS web site.1009 Ratification Number:347 Act Number:550 Introducing Body:Senate Subject:Provide for a three-hundred-dollar limit on sales and use taxes on the gross proceeds of the sale of each item of machinery for research and development
(A550, R347, S1009)
A JOINT RESOLUTION TO PROVIDE FOR A THREE-HUNDRED-DOLLAR LIMIT ON SALES AND USE TAXES ON THE GROSS PROCEEDS OF THE SALE OF EACH ITEM OF MACHINERY FOR RESEARCH AND DEVELOPMENT DURING THE PERIOD BEGINNING JULY 1, 1986, AND ENDING JUNE 30, 1991, AND PROVIDE DEFINITIONS RELATING TO THE LIMITATION AND TO EXEMPT FROM COUNTY AD VALOREM TAXES FOR FIVE YEARS FACILITIES OF NEW ENTERPRISES ENGAGED IN RESEARCH AND DEVELOPMENT LOCATED IN THIS STATE DURING THE PERIOD BEGINNING JULY 1, 1986, AND ENDING JUNE 30, 1991, AND TO PROVIDE DEFINITIONS RELATING TO THE EXEMPTION.
Be it enacted by the General Assembly of the State of South Carolina:
Sales, use tax limit on research machinery
SECTION 1. For the period beginning July 1, 1986, and ending June 30, 1991, the maximum tax levied pursuant to Chapter 35 of Title 12 of the 1976 Code on the sale or use of each item of machinery for research and development is three hundred dollars. As used in this section, "machinery for research and development" means machinery used directly and exclusively in research and development in the experimental or laboratory sense for new products, new uses for existing products, or for improving existing products. To be eligible for the limitation imposed by this section, the machinery must be located in a separate facility devoted exclusively to research and development as defined in this section. The limitation does not extend to machinery used in connection with efficiency surveys, management studies, consumer
surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects.
Ad valorem tax exemption on facilities in
research
SECTION 2. The facilities of all new enterprises engaged in research and development activities located in any of the counties of this State during the period beginning July 1, 1986, and ending June 30, 1991, and all additions valued at fifty thousand dollars or more to existing facilities of enterprises engaged in research and development during the same period are exempt from ad valorem taxation in the same manner and to the same extent as the exemption allowed pursuant to item (7) of subsection A of Section 12-37-220 of the 1976 Code. For purposes of this section, facilities of enterprises engaged in research and development activities are facilities devoted directly and exclusively to research and development in the experimental or laboratory sense for new products, new uses for existing products, or for improving existing products. To be eligible for the exemption allowed by this section, the facility must be a separate facility devoted exclusively to research and development as defined in this section. The exemption does not include facilities used in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects.
Time effective
SECTION 3. This act shall take effect upon approval by the Governor.