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SECTION 2. For the taxes assessed and required to be paid in accordance with this act, under Section 12-37-2850 of the 1976 Code, credit shall be allowed for motor carrier's vehicle taxes previously paid for the 1998 tax year.

SECTION 3. The first annual property tax return under this act, required to be filed by Section 12-37-2840 of the 1976 Code, is due June 30, 1998.

SECTION 4. A. Section 12-28-310 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-310. Subject to the exemptions provided in this chapter, a tax of sixteen cents a gallon is imposed on all gasoline used or consumed in this State and upon all diesel fuel used or consumed in this State in producing or generating power for propelling motor vehicles. The tax levied on taxable motor fuel pursuant to this chapter is a levy and assessment on the consumer, and the levy and assessment on other persons as specified in this chapter are as agents of the State for the collection of the tax. This section does not affect the method of collecting the tax as provided in this chapter. The tax imposed by this section must be collected and paid at those times, in the manner, and by those persons specified in this chapter. The license tax imposed by this section shall be in lieu of all sales, use, or other excise tax which may otherwise be imposed by any municipality, county, or other local political subdivision of the State."

B. Section 12-28-720 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-720. The exemption for imports exports:

(1) under Section 12-28-710(A)(1) must be perfected by a deduction on the report of the supplier which is otherwise responsible for tax on removal of the product from a terminal or refinery in this State;

(2) under Section 12-28-710(A)(2) and 12-28-710(A)(4) may be perfected at the option of the exporter by a refund claim if the claim in the aggregate month to date exceeds one thousand dollars, by a refund claimed on the licensed exporter report for that month's activity, or under Section 12-28-710(A)(3) if a diversion by an unlicensed exporter upon a refund application is made to the department within three years."

C. Section 12-28-740(2)(a)(iv) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(iv) a list of government tax-exempt purchasers qualifying under subsubitem (iii) (c) of this subitem and estimated volumes for them;"

"Section 12-28-795. If a claim for refund is not issued within thirty days of the filing required by Section 12-28-785, the department shall pay interest at the rate provided for in Section 12-54-30 from the date of filing of the claim for refund until a date, determined by the director, that does not precede by more than thirty days, the date on which the refund is made. Interest on a claim for refund must be paid at the rate and in the manner provided for in Section 12-54-25."

E. Section 12-28-905 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-905. (A) Except as otherwise provided in this chapter, the tax imposed by Section 12-28-310 on taxable motor fuel measured by gallons imported from another state must be paid by the licensed occasional importer who has imported the nonexempt taxable motor fuel within three business days of the earlier of the time the nonexempt taxable motor fuel was entered into the State or the time a valid import verification number required by Section 12-28-1135 12-28-1125 was assigned by the department under regulations the department promulgates. However, if the supplier has made a blanket election to pre-collect tax under Section 12-28-910(B), he is jointly liable with the importer for the tax and shall remit the tax to the department on behalf of the importer under the same terms as a supplier payment under Section 12-28-920 12-28-915, and no import verification number is required.

(B) Except as otherwise provided in this section, the tax imposed by Section 12-28-310 on taxable motor fuel measured by gallons imported from another state must be paid by the licensed bonded importer who has imported the nonexempt taxable motor fuel during a month before the twenty-second day of the following month unless the day falls upon a weekend or state or banking holiday, in which case the liability is due the next succeeding business day, if before the time of import the importer obtains a valid import verification number required by Section 12-28-1135 12-28-1125, assigned by the department under regulations promulgated by the department. However, if the supplier has made a blanket election to pre-collect tax under Section 12-28-910(3) 12-28-910(B), he is jointly liable with the importer for the tax and shall remit the tax to the department on behalf of the importer under the same terms as a supplier payment under Section 12-28-920 12-28-915, and no import verification number is required."

F. Section 12-28-915(D) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

G. Section 12-28-925 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-925. Each supplier and bonded importer who sells taxable motor fuel shall collect from the purchaser the motor fuel tax imposed under Section 12-28-310. At the election of an eligible purchaser evidenced by a written statement from the department as to the purchaser eligibility status as determined under Section 12-28-930, the seller may not require a payment of motor fuel tax on transport truckloads from the purchaser sooner than one business day before the date on which the tax is required to be remitted by the supplier or bonded importer under Section 12-28-915. This election is subject to a condition that the eligible purchaser's remittances of all amounts of tax due the seller must be paid by electronic funds transfer before the third preceding day before the date of the remittance by the supplier to the department. Failure of a supplier or bonded importer to comply with the requirements of this section may result in suspension or revocation of the license in accordance with Section 12-28-1180(B). The eligible purchaser's election under this subsection may be terminated by the seller if the eligible purchaser does not make timely payments to the seller as required by this section."

H. Section 12-28-935 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-935. The department may rescind a purchaser's eligibility and election to defer taxable motor fuel tax remittances after a hearing and upon a showing of good cause, including failure to make timely tax deferred payment to a supplier of tax under Section 12-28-930 12-28-925 by sending written notice to all suppliers or publishing notice of the revocation pursuant to regulations. The department may require further assurance of the purchaser's financial responsibility, may increase the bond requirement for that purchaser, or may take other action to ensure remittance of the taxable motor fuel tax. The department shall follow the revocation procedures under Section 12-28-1180 in rescinding eligible purchaser status."

I. Section 12-28-940 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-940. (A) In computing the amount of motor fuel tax due, the supplier is entitled to a credit against the tax payable in the

(B) The supplier shall provide notice to the department of a failure to collect tax within ten days following the earliest date on which the supplier was entitled to collect the tax from the eligible purchaser under Section 12-28-925.

(C) The department shall promulgate regulations establishing the evidence a supplier shall provide to receive the credit.

(D) The credit must be claimed on the first return following the date of the failure of the eligible purchaser if the payment remains unpaid as of the filing date of that return or the deduction credit is disallowed.

(E) The claim for credit must identify the defaulting eligible purchaser and any tax liability that remains unpaid.

(F) If an eligible purchaser fails to make a timely payment of the amount of tax due, the supplier's credit is limited to the amount due from the purchaser, plus any tax that accrues from that purchaser for a period ending upon the date the supplier receives notice from the department of revocation of eligible purchaser status.

(G) No additional credit is allowed to a supplier under this section until the department authorizes the purchaser to make a new election under Section 12-28-930 12-28-925."

J. Section 12-28-970(A) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(A) A backup tax equal to the tax imposed by Section 12-28-310 is imposed and must be administered in accordance with regulations promulgated by the department on the use on the highways of taxable motor fuel by an end user, including operators of state and local government vehicles, American Red Cross vehicles, and buses, and other persons exempted from the full federal highway tax, unless the person is exempted otherwise under Section 12-28-710(A)(12), upon the delivery in this State into the fuel supply tank of a highway vehicle of:

(1) diesel fuel that contains a dye;

(2) taxable motor fuel on which a claim for refund has been made;

(3) alternative fuels; or

(4) liquid on which tax previously has not been imposed by this chapter."

K. Section 12-28-1130 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1130. Each person who is an importer of taxable motor fuel into this State by a tank wagon operating out of or controlling a bulk plant in another state, if the destination of that tank wagon is within

L. Section 12-28-1135 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1135. (A) Each person who engages in the business of selling taxable motor fuel at wholesale or retail or storing or distributing taxable motor fuel for resale within this State first shall obtain a fuel vendor license which is operative for all locations controlled or operated by that licensee in this State or in any other state from which the person removes fuel for delivery and use in South Carolina.

(B) Each fuel vendor shall maintain detailed records of all purchases and sales for no less than three years.

(C) All fuel vendor records must be maintained in English and Arabic numerals or acceptable to electronic formats.

(D) Each fuel vendor shall make an annual report of taxable gallons sold at retail by county in accordance with Section 12-28-720 12-28-1390.

(E) In its discretion, the department may exempt from subsection (A) persons who possess a valid supplier, terminal operator, carrier transporter, importer, tank wagon operator, or exporter license. The fee for the full fuel vendor license is fifty dollars."

M. The 1976 Code is amended by adding:

"Section 12-28-1139. Each person who is liable for the tax imposed by Sections 12-28-970 and 12-28-990(C) who is not licensed under Sections 12-28-1100 through 12-28-1135 shall obtain a miscellaneous fuel tax license. There is no registration fee for this license."

N. Section 12-28-1150 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1150. Applicants, including corporate officers, partners, and individuals, for a license issued by the commissioner director, may be required to submit their fingerprints to the department at the time of

O. Section 12-28-1155(D) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(D) Fuel vendors defined in Section 12-28-1135, other than persons required to be licensed under provisions other than in that section those sections, and miscellaneous fuel tax licensees defined in Section 12-28-1139, are exempt from the bonding requirements of this section."

P. Section 12-28-1180(B) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(B) The department may suspend or revoke a license for failure to comply with this chapter after at least ten thirty days' notice to the licensee and a hearing, should such be requested, pursuant to the Administrative Procedures Act."

Q. Section 12-28-1300(B) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(B) The reports required by this section article must be filed with respect to information for the preceding calendar month on or before the twenty-second day of the current month."

R. Section 12-28-1300(C)(13) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(13) corrections made by the supplier pursuant to Section 12-28-795 12-28-1525 for changes in destination state which affect the supplier's or his customer's tax liability to this State;"

S. Section 12-28-1320 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1320. Each licensed tank wagon operator importer shall file with the department monthly a verified sworn statement of operations within this State plus other information in respect of the source and means of transportation of nonexempt taxable motor fuel as the department in its discretion may require on forms it prescribes and furnishes. A person

T. Section 12-28-1390(A) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(A) A fuel vendor shall file an annual report of total gallons of gasoline sold at retail through a retail outlet accessible to the general public by that vendor by county before January twenty-first February twenty-eighth annually for the preceding calendar year."

U. The 1976 Code is amended by adding:

"Section 12-28-1395. A person licensed as a miscellaneous fuel tax licensee in this State shall file monthly a sworn statement on forms prescribed by the department and furnish any information the department considers necessary to the enforcement of this chapter."

V. Section 12-28-1505(A)(3)(b) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(b) receives from the Secretary of State Department of Revenue and Taxation or its agent a verification number authorizing the diversion;"

W. Section 12-28-2110 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-2110. (A) The department in its discretion may must collect in lieu of the tax imposed by this chapter on taxable motor fuels consumed on the highways by state and local government diesel and other federally exempt fuel-powered highway vehicles, a fuel replacement tax imposed on the operation and the use on the highways of the vehicles, to be collected and administered in accordance with subsections (B) and (C) Sections 12-28-1139 and 12-28-1395.

(B) The tax imposed by this section must be paid before April first annually by the operator of each state and local government and other federally exempt vehicles used on the highways in this State. The amount of tax must be determined by the department to equate to the amount of motor fuel tax which would have been paid if that tax also is levied on diesel fuel consumed on the highways in the State and local government and other federally exempt diesel-powered highway vehicles by reference to a formula of reasonably expected mileage for that vehicle and fuel consumption for diesel powered vehicles of similar weight, design, and intended use.

(C) No person charged with responsibility for operation of a vehicle covered by this section may permit the operation of any such vehicle on the highways of this State without the affixation of a decal issued annually

X. Section 12-28-2360 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-2360. A person may present to the department proof that he has paid an inspection fee on petroleum products in error or has paid an inspection fee on shipments of petroleum products subsequently diverted from the State, whereupon the department shall refund the amount of the inspection fee to the payee out of the petroleum products inspection fund, if the proof of the claim is submitted within six months from the date shown on the delivery manifest the time period provided for in Section 12-54-85."

Y. Section 12-28-2380 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-2380. All motor fuels placed into motor vehicles for use in their operation or for the operation of their parts or attachments are subject to the tax fees provided in this chapter article. This section does not apply to a seller-user of liquefied petroleum gas."

Z. Section 12-28-2520 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-2520. An oil company A motor fuel licensee may furnish the department with a statement of assets and liabilities, and if in the judgment of the department the property owned by the oil company motor fuel licensee is sufficient to protect the State in the payment of all gasoline motor fuel taxes due, a bond is not required."

AA. Section 12-28-2510 of the 1976 Code is repealed.

BB. Section 12-28-1575 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"Section 12-28-1575. In general, a notice stating: `DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE' must be:

(1) provided by the terminal operator to a person who receives dyed diesel fuel at a terminal rack of that terminal operator;

(2) provided by a seller of dyed diesel fuel to its buyer if the diesel fuel is located outside the bulk transfer/terminal system and is not sold from a retail pump or bulk plant posted in accordance with the requirements of item (3);

(3) posted by a seller on a retail pump or bulk plant where it sells dyed diesel fuel for use by its buyer."

CC. Section 12-28-710(A)(1)(c) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

DD. Section 12-28-710(A)(7) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(7) subject to determination by the department, that portion of diesel fuel taxable motor fuel used to operate equipment attached to a motor vehicle, if the diesel fuel taxable motor fuel was placed into the fuel supply tank of a motor vehicle that has a common fuel reservoir for travel on a highway and for the operation of equipment;"

EE. Notwithstanding any other effective date provided in this act, this section takes effect May 1, 1996.

SECTION 5. Section 56-5-4140 of the 1976 Code, as last amended by Act 459 of 1996, is further amended to read:

"(1)(a) The gross weight of a vehicle or combination of vehicles, operated or moved upon any interstate, highway or section of highway shall not exceed:

(1) Single-unit vehicle with two axles. . . . .35,000 lbs.

(2) Single-unit vehicle with three axles. . . . .46,000 lbs.

(3) Single-unit vehicle with four or more axles. . . . .63,500 lbs.

Except, on the interstate, vehicles must meet axle spacing requirements and corresponding maximum overall gross weights, not to exceed 63,500 lbs., in accordance with the table in (b) plus tolerances.

(4) Single unit vehicle with five or more axles. . . . .65,000 lbs.

Except, on the interstate, vehicles must meet axle spacing requirements and corresponding maximum overall gross weights, not to exceed 65,000 lbs., in accordance with the table in (b) plus tolerances.

(4)(5) Combination of vehicles with three axles. . . . .50,000 lbs.

(5)(6) Combination of vehicles with four axles. . . . .65,000 lbs.

(6)(7) Combination of vehicles with five

or more axles. . . . .73,280 lbs.

The gross weight imposed upon any highway or section of highway other than the interstate by two or more consecutive axles in tandem articulated from a common attachment to the vehicle and spaced not less than forty inches nor more than ninety-six inches apart shall not exceed thirty-six thousand pounds, and no one axle of any such group of two or more consecutive axles shall exceed the load permitted for a single axle. The load imposed on the highway by two consecutive axles, individually attached to the vehicle and spaced not less than forty inches nor more than ninety-six inches apart, shall not exceed thirty-six thousand pounds and no

The ten percent enforcement tolerance specified in Section 56-5-4160 applies to the vehicle weight limits specified in this section except, the gross weight on a single axle operated on the interstate may not exceed 20,000 pounds, including all enforcement tolerances; the gross weight on a tandem axle operated on the interstate may not exceed 35,200 pounds, including all enforcement tolerances; and the overall gross weight for vehicles operated on the interstate may not exceed 75,185 pounds, including all enforcement tolerances except as provided in (b).

(b) Vehicles with an overall maximum gross weight in excess of 75,185 pounds may operate upon any highway or section of highway in the Interstate System up to an overall maximum of 80,000 pounds in accordance with the following:

The weight imposed upon the highway by any group of two or more consecutive axles may not, unless specially permitted by the department exceed an overall gross weight produced by the application of the following formula:

W=500 (LN/N-1 + 12N + 36)

In the formula W equals overall gross weight on any group of two or more consecutive axles to the nearest 500 pounds, L equals distance in feet between the extreme of any group of two or more consecutive axles, and N equals number of axles in the group under consideration.

As an exception, two consecutive sets of tandem axles may carry a gross load of 68,000 pounds if the overall distance between the first and last axles of the consecutive sets of tandem axles is 36 feet or more. The formula is expressed by the following table:

Distance in feet

between the extremes Maximum load in pounds

of any group of 2 or carried on any group of 2

more consecutive axles or more consecutive axles

2 3 4 5 6 7

axles axles axles axles axles axles
4 35,200
5 35,200
6 35,200
7 35,200

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