Current Status Introducing Body:House Bill Number:3852 Primary Sponsor:Baxley Committee Number:30 Type of Legislation:GB Subject:Income taxes, nonprofit organizations Residing Body:House Current Committee:Ways and Means Computer Document Number:JIC/5577.HC Introduced Date:Apr 11, 1991 Last History Body:House Last History Date:Apr 11, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Baxley Type of Legislation:General Bill
Bill Body Date Action Description CMN
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3852 House Apr 11, 1991 Introduced, read first time, 30
referred to Committee
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TO AMEND SECTIONS 12-7-455, 12-7-1510, 12-7-1640, ALL AS AMENDED, AND 12-19-150, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION OF TAX EXEMPT ENTITIES, SO AS TO IMPOSE A TAX EQUAL TO FIVE PERCENT ON THE SOUTH CAROLINA TAXABLE INCOME OF ALL ENTITIES OTHER THAN INDIVIDUALS, ESTATES, TRUSTS, AND CORPORATIONS, TO REQUIRE TAX EXEMPT ENTITIES WITH UNRELATED BUSINESS INCOME TO FILE INCOME TAX RETURNS, TO ESTABLISH A FILING DATE FOR RETURNS OF CERTAIN TAX EXEMPT ORGANIZATIONS ON OR BEFORE THE FIFTEENTH DAY OF THE FIFTH MONTH FOLLOWING THE TAXABLE YEAR, TO EXEMPT CERTAIN TAX EXEMPT ORGANIZATIONS FROM THE CORPORATE LICENSE TAX; AND TO AMEND SECTIONS 33-31-50 AND 33-35-50, RELATING TO THE INCORPORATION OF NONPROFIT CORPORATIONS AND FEES REQUIRED TO FILE VARIOUS PAPERS FOR FEDERALLY FINANCED NONPROFIT CORPORATIONS, SO AS TO EXEMPT THEM FROM THE INITIAL LICENSE FEE AND FEE FOR FILING THE Aannual REPORT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-7-455(q) of the 1976 Code is amended to read:
"(q) Any organization described in Internal Revenue Code Sections 501 through 528 and 1381 having taxable income shall compute its tax using the rates set forth in Section 12-7-230. An income tax is imposed annually at the rate of five percent on the South Carolina taxable income of an organization described in Internal Revenue Code Sections 501 through 528 (Exempt Organizations) and 1381 (Cooperatives) and an entity other than those described in Sections 12-7-210 or 12-7-230 with South Carolina taxable income."
SECTION 2. Section 12-7-1510 of the 1976 Code is amended by adding an appropriately numbered item to read:
"( ) Every exempt organization operating in this State described in Internal Revenue Code Sections 501 through 528 (Exempt Organizations) and 1381 (Cooperatives) with taxable income in South Carolina under Internal Revenue Code Section 501(b) (Unrelated Business Income), or Sections 1382 and 1383 (Taxable Income of Cooperatives)."
SECTION 3. Section 12-7-1640 of the 1976 Code, as last amended by Act 345 of 1988, is further amended to read:
"Section 12-7-1640. Returns must be in the form as the commission may prescribe prescribes and must be filed with the commission on or before the fifteenth day of the fourth month next after the preceding income year, except returns of corporations, which shall file returns on or before the fifteenth day of the third month next after the preceding income year. Returns of organizations exempt under Internal Revenue Code Section 501 must be filed on or before the fifteenth day of the fifth month following the taxable year. Returns of information provided for by Section 12-7-1590 must be filed before March fifteenth of each year and shall set forth the information required by Section 12-7-1590 for the calendar year next preceding. Returns required to be filed by organizations exempt under Internal Revenue Code Section 501 must be filed in accordance with Internal Revenue Code Section 6033."
SECTION 4. Section 12-19-150 of the 1976 Code is amended to read:
"Section 12-19-150. The provisions of this chapter shall do not apply to any a nonprofit corporation organized under Article 1 of Chapter 31 of Title 33 for religious purposes, organized under Article 1 of Chapter 31 of Title 33 for religious purposes, any a volunteer fire departments department and rescue squads squad, any a cooperative organized under Chapter 45 or 47 of Title 33, any a building and loan association or any a credit union doing a strictly mutual business, or to any an insurance, fraternal, beneficial, or mutual protection companies
company or associations association, or to any a foreign corporation whose entire income is not included in gross income for federal income tax purposes due to any a treaty obligation of the United States, a tax exempt organization described in Internal Revenue Code Sections 501 through 528, or a cooperative as provided in Internal Revenue Code Section 1381."
SECTION 5. Section 33-31-50 of the 1976 Code is amended to read:
"Section 33-31-50. Upon the filing of the above declaration , accompanied by the First Report of Corporations and the initial license fee of ten dollars, and the payment of a charter fee of fifteen dollars the Secretary of State shall issue to the proposed corporation a certificate of incorporation for the term that may be fixed in the declaration, on the absence of the limitation, in perpetuity. Provided, that churches Churches, religious organizations, religious societies, religious institutions, and volunteer fire departments shall pay a charter fee of three dollars."
SECTION 6. Section 33-35-50 of the 1976 Code is amended by deleting item (4) which reads:
"(4) A fee of ten dollars for filing the annual report."
SECTION 7. This act, upon approval by the Governor, is effective for taxable years beginning after 1991.