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Bill 144

                    Current Status

Bill Number:                      144
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  19990112
Primary Sponsor:                  Wilson
All Sponsors:                     Wilson, Russell
Drafted Document Number:          l:\council\bills\kgh\15143htc99.doc
Residing Body:                    Senate
Current Committee:                Finance Committee 06 SF
Subject:                          Sales tax exemption for food purchased 
                                  with Agriculture Department food coupons; 
                                  Taxation


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  19990112  Introduced, read first time,           06 SF
                  referred to Committee
Senate  19981216  Prefiled, referred to Committee        06 SF


                             Versions of This Bill

TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO EXEMPT FROM THE SALES TAX FOOD ITEMS WHICH MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE THAT A CUMULATIVE THIRTY PERCENT OF ESTIMATED RECURRING GENERAL FUND REVENUE GROWTH FOR EACH YEAR, NOT TO EXCEED THE REQUIRED AMOUNT, IS DEEMED SALES TAX REVENUE FOR PURPOSES OF OFFSETTING THE REVENUE LOSS OF THE EXEMPTION, TO PHASE IN THE EXEMPTION OVER A NUMBER OF FISCAL YEARS UNTIL IT IS A ONE HUNDRED PERCENT PERMANENT EXEMPTION AND PROVIDE THE METHOD OF CALCULATION OF THE EXEMPTION PERCENTAGE AMOUNT FOR THE FISCAL YEARS BEFORE THE EXEMPTION BECOMES A COMPLETE EXEMPTION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( )(a) A percentage as determined in subitem (c) of this item of the gross proceeds of sales, or sales price of food items which may be purchased with United States Department of Agriculture food coupons, not including restaurant meals.

(b) A cumulative amount equal to thirty percent of estimated annual recurring general fund revenue growth for a fiscal year, not derived from the sales tax, is deemed state sales tax revenue, but this amount for any fiscal year must not exceed the revenue not collected, assuming food is completely exempt from the sales tax.

(c) The Director of the Department of Revenue shall calculate and prescribe a percentage of the gross proceeds of sales or sales price that is exempt from tax and this percentage exclusion applies to such sales during the applicable fiscal year. The percentage for any fiscal year is the proportion that the cumulative sums of the thirty percent of estimated revenue growth determined under subitem (b) is of the estimated sales tax revenues not collected for that fiscal year because of the exemption allowed by this item, assuming a total exemption. When this percentage first reaches one hundred percent, then for that and subsequent fiscal years, the exemption is complete and permanent.

(d) The exemption allowed by this item applies in the same percentage to all local option sales and use taxes collected by the State."

SECTION 2. This act takes effect upon approval by the Governor and applies to sales made after June 30, 1999.

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