Current Status Introducing Body:House Bill Number:3905 Primary Sponsor:Kirsh Committee Number:30 Type of Legislation:GB Subject:Telecommunications Residing Body:House Current Committee:Ways and Means Computer Document Number:JIC/5742HC.93 Introduced Date:19930413 Last History Body:House Last History Date:19930413 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Kirsh Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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3905 House 19930413 Introduced, read first time, 30
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-36-65 SO AS TO DEFINE "TELECOMMUNICATIONS" AND "INFORMATION SERVICES" FOR PURPOSES OF THE SALES AND USE TAX AND TO PROVIDE FOR THE APPLICATION OF THE SALES TAX TO SUCH SERVICES; AND TO AMEND SECTIONS 12-36-60, 12-36-70, 12-36-110, 12-36-120, AS AMENDED, 12-36-910, AS AMENDED, 12-36-1310, AND 12-36-2120, AS AMENDED, ALL RELATING TO THE SALES AND USE TAX, SO AS TO CONFORM THEM TO THE REVISED APPLICATION OF THE SALES AND USE TAX TO TELECOMMUNICATIONS AND INFORMATION SERVICES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 36, Title 12 of the 1976 Code is amended by adding:
"Section 12-36-65. (A) `Telecommunications' means:
(1) the right to access or use a two-way audio, video, data, or similar communication system or service, including, but not limited to, telephone, radio, or telegraph systems or services; and
(2) paging or faxing services.
(B) `Information services' means the right to access or use a service that provides entertainment or information that is transmitted or received electronically or by similar means, including, but not limited to, computer database services or cable television system services. The provisions of this subsection do not include the broadcasting or transmitting of advertising or promotional commercials or 900/976 telephone services taxed at the rate of ten percent under Section 12-36-2645.
(C) For telecommunications or information services to be subject to the sales or use tax, the telecommnications or information services must: (1) originate or terminate in this State; and (2) be charged to a location in this State, regardless of where the amount is billed or paid.
If the location from which telecommunications or information services originates or terminates is not a specific location. such as mobile telephones, paging services, or air-to-ground systems, the telecommunications or information services are taxed if the user's principal place of business is in this State, if charged to a telephone number or authorization code in this State, or if billed to a location in this State."
SECTION 2. Section 12-36-60 of the 1976 Code, as added by Act 612 of 1990, is amended to read:
"Section 12-36-60. `Tangible personal property' means personal property which may be seen, weighed, measured, felt, touched, or which is in any other manner perceptible to the senses. It also includes services and intangibles, including communications telecommunications or information services, laundry and related services, furnishing of accommodations and sales of electricity, the sale or use of which is subject to tax under this chapter and does not include stocks, notes, bonds, mortgages, or other evidences of debt."
SECTION 3. Section 12-36-70(1)(f) of the 1976 Code, as added by Act 612 of 1990, is amended to read:
"(f) selling or furnishing the ways or means for the transmission of the voice or of messages between persons in this State for a consideration telecommunications or information services. A person engaged in the business of selling or furnishing the ways or means for the transmission of the voice or messages as used in this subitem (f) telecommunications and information services is not considered a processor or manufacturer;"
SECTION 4. Section 12-36-110(1) of the 1976 Code is amended by adding:
"(k) sales of all telecommunications or information services as defined in Section 12-36-65, except for carrier access charges and customer access line charges approved by the Federal Communications Commission or the South Carolina Public Service Comission."
SECTION 5. Section 12-36-120(1) of the 1976 Code, as amended by Act 361 of 1992, is further amended to read:
"(1) tangible personal property to licensed retail merchants, jobbers, dealers, or wholesalers for resale, and do not include sales to users or consumers not for resale, and do not include sales of telecommunications or information services, except for carrier access charges and customer access line charges approved by the Federal Communications Commission or the South Carolina Public Service Commission;"
SECTION 6. Section 12-36-910(B)(3) of the 1976 Code, as amended by Act 361 of 1992, is further amended to read:
"(3) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages telecommunications or information services;"
SECTION 7. Section 12-36-1310(B)(3) of the 1976 Code, as added by Act 612 of 1992, is amended to read:
"(3) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages telecommunications or information services;"
SECTION 8. Section 12-36-2120(11) of the 1976 Code is amended to read:
"(11) toll charges for the transmission of voice or messages between telephone exchanges the following telecommunications as defined in Section 12-36-65(A)(1):
(a) charges for long distance telephone services;
(b) charges for telegraph messages; and
(c) carrier access charges and customer access line charges established by the Federal Communications Commission or the South Carolina Public Service Commission;"
SECTION 9. This act takes effect upon approval by the Governor.