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Columbia, S.C., June 13, 1996

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:

H. 4472 -- Reps. Klauber, Hallman, Seithel, H. Brown, Sandifer, Cain, Kirsh, Richardson, R. Smith, Bailey, Fulmer, Wofford, Young-Brickell, Dantzler, Koon, Wilkins, J. Young, Cato, Limbaugh, Carnell, J. Harris, Wells, Allison, Spearman, Waldrop and Phillips: A BILL TO AMEND TITLE 24, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CORRECTIONS AND PRISONERS, BY ADDING CHAPTER 27 SO AS TO REQUIRE SPECIFIED PAYMENTS OF FILING FEES AND COURT COSTS REGARDING INMATE LITIGATION, TO PROVIDE FOR THE LOSS OF EARNED WORK, EDUCATION, AND GOOD-TIME CREDITS BY A PRISONER IF THE COURT FINDS HE ENGAGED IN CERTAIN IMPROPER ACTIONS REGARDING LEGAL OR ADMINISTRATIVE PROCEEDINGS, AND TO PREVENT A PRISONER FROM BRINGING CERTAIN CIVIL ACTIONS OR APPEALS IF HE HAS BEEN FOUND ON THREE OR MORE PRIOR OCCASIONS OF HAVING INSTITUTED FRIVOLOUS LITIGATION.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 13, 1996

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on the following Bill:

H. 4796 -- Reps. Fulmer, Koon, Harvin, Carnell, Robinson, Stuart, Seithel, Shissias, Limehouse, Hallman, Harrell and Cotty: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY

The Report of the Committee of Free Conference having been adopted by both Houses, ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

A message was sent to the House accordingly.

H. 4796 -- Reps. Fulmer, Koon, Harvin, Carnell, Robinson, Stuart, Seithel, Shissias, Limehouse, Hallman, Harrell and Cotty: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-37-2810, 12-37-2820, 12-37-2830, 12-37-2840, 12-37-2850, 12-37-2860, 12-37-2870, AND 12-37-2880 SO AS TO PROVIDE CERTAIN DEFINITIONS, THAT THE DEPARTMENT OF PUBLIC SAFETY ANNUALLY SHALL ASSESS, EQUALIZE, AND APPORTION THE VALUATION OF ALL MOTOR CARRIER VEHICLES, THAT THE VALUE OF MOTOR CARRIER VEHICLES SUBJECT TO PROPERTY TAX MUST BE DETERMINED BY THE DEPARTMENT OF PUBLIC SAFETY AND THAT THIS PROPERTY TAX MUST BE PAID TO THE DEPARTMENT ANNUALLY, THE

On motion of Senator MOORE, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.

Senator MOORE spoke on the report.

On motion of Senator MOORE, with unanimous consent, Free Conference Powers were granted.

Whereupon, the PRESIDENT appointed Senators MOORE, RANKIN and ALEXANDER to the Committee of Free Conference on the part of the Senate and a message was sent to the House accordingly.

On motion of Senator MOORE, the Report of the Committee of Free Conference to H. 4796 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:

H. 4796 -- Reps. Fulmer, Koon, Harvin, Carnell, Robinson, Stuart, Seithel, Shissias, Limehouse, Hallman, Harrell and Cotty: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-37-2810, 12-37-2820, 12-37-2830, 12-37-2840, 12-37-2850, 12-37-2860, 12-37-2870, AND 12-37-2880 SO AS TO PROVIDE CERTAIN DEFINITIONS, THAT THE DEPARTMENT OF PUBLIC SAFETY ANNUALLY SHALL ASSESS, EQUALIZE, AND APPORTION THE VALUATION OF ALL MOTOR CARRIER VEHICLES, THAT THE VALUE OF MOTOR CARRIER VEHICLES SUBJECT TO PROPERTY TAX MUST BE DETERMINED BY THE DEPARTMENT OF PUBLIC SAFETY AND THAT THIS PROPERTY TAX MUST BE PAID TO THE DEPARTMENT ANNUALLY, THE METHOD THAT THE TAXES MUST BE DISBURSED, THAT IN LIEU OF THE PROPERTY TAX AND REGISTRATION REQUIREMENTS, A

That the same do pass with the following amendments:

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Chapter 37, Title 12 of the 1976 Code is amended by adding:

Section 12-37-2810. As used in this article, unless the context requires otherwise:

(A) `Motor carrier' means a person who owns, controls, operates, manages, or leases a motor vehicle for the transportation of property in intrastate or interstate commerce. Motor carriers are further defined as being a South Carolina based International Registration Plan registrant or owning or leasing real property within this State used directly in the transportation of freight.

(B) `Motor vehicle' means a motor propelled vehicle used for the transportation of property on a public highway with a gross vehicle weight of greater than twenty-six thousand pounds.

(C) `Highway' means all public roads, highways, streets, and ways in this State, whether within a municipality or outside of a municipality.

(D) `Person' means any individual, corporation, firm, partnership, company or association, and includes a guardian, trustee, executor, administrator, receiver, conservator, or a person acting in a fiduciary capacity.

(E) `Semitrailers' means every vehicle with or without motive power, other than a pole trailer, designed for carrying property and for being drawn by a motor vehicle and constructed so that a part of its weight and of its load rests upon or is carried by another vehicle.

(F) `Trailers' means every vehicle with or without motive power, other than a pole trailer, designed for carrying property and for being drawn by a motor vehicle and constructed so that no part of its weight rests upon the towing vehicle.

Section 12-37-2820. The Department of Public Safety annually shall assess, equalize, and apportion the valuation of all motor vehicles of motor carriers. The valuation must be based on fair market value for the motor

(1) Year One-.90

(2) Year Two-.80

(3) Year Three-.65

(4) Year Four-.50

(5) Year Five-.35

(6) Year Six-.25

(7) Year Seven-.20

(8) Year Eight-.15

(9) Year Nine-.10

Section 12-37-2830. The value of motor carrier's vehicles subject to property taxes in this State must be determined by the Department of Public Safety based on the ratio of total mileage operated within this State during the preceding calendar year to the total mileage of its entire fleet operated within and without this State during the same preceding calendar year.

Section 12-37-2840. Motor carriers must file an annual property tax return with the Department of Public Safety no later than the thirtieth day of June for the preceding calendar year with one-half or the entire tax due.

Section 12-37-2850. The Department of Public Safety shall assess annually the taxes due based on the value determined in Section 12-28-2820 and an average millage for all purposes statewide for the current year. The average millage may be increased to cover any loss of revenue from not licensing trailers incurred by the Department of Public Safety. The taxes assessed must be paid to the Department of Public Safety no later than December thirty-first of each year and may be made in two equal installments. Distribution of the taxes must be made by the Treasurer's Office based on the distribution formula contained in Section 12-37-2870.

Section 12-37-2860. In lieu of the property taxes and registration requirements after the initial registration on semitrailers and trailers, a one-time fee of eighty-seven dollars is due on all semitrailers and trailers currently registered and subsequently on each semitrailer and trailer before being placed in service. Twelve dollars of the one-time fee must be distributed to the Department of Public Safety. The remaining seventy-five dollars of the fee must be distributed based on the distribution formula contained in Section 12-37-2870.

Section 12-37-2880. Motor vehicles, as defined in Section 12-37-2810, owned, operated, managed, or leased by a motor carrier are exempt from property tax except as provided in this article."

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

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;"

D. Section 12-28-795 of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"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

(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:

"(D) A supplier shall remit give notification of late taxes remitted to the supplier by an eligible purchaser and give timely notification to the department of late remittances if that supplier previously gave notice to the department of an uncollectible tax amount pursuant to Section 12-28-940(B)."

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

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 amount of tax paid by the supplier that is uncollectible from an eligible purchaser.

(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."

"(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 twenty-five miles of the borders of South Carolina, shall make application for and obtain a license from the department before engaging in import activities. However, registration as a tank wagon operator-importer does not constitute authorization of the persons to acquire nonexempt motor fuel free of the tax imposed by this chapter at a terminal either within or outside this State for direct delivery to a location in South Carolina. A person who possesses a valid importer's license is eligible as a tank wagon operator-importer without issuance of a separate license if the importer also operates one or more bulk plants outside this State. The fee for a tank wagon operator-importer license is fifty dollars. Operators of tank wagon delivery product wagons delivering products into this State more than twenty-five miles from the border shall apply for an importer's license under Section 12-28-1125."

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.

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