South Carolina General Assembly
114th Session, 2001-2002

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Bill 559


Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)


Indicates Matter Stricken

Indicates New Matter

HOUSE AMENDMENTS AMENDED-SECOND TIME

June 21, 2001

    S. 559

Introduced by Finance Committee

S. Printed 6/21/01--S.

Read the first time April 17, 2001.

            

A BILL

TO AMEND SECTION 12-36-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "GROSS PROCEEDS OF SALES" FOR PURPOSES OF THE SOUTH CAROLINA SALES TAX ACT, SO AS TO PROVIDE THAT GROSS PROCEEDS OF SALES DO NOT INCLUDE INTEREST, FEES, OR CHARGES IMPOSED ON A CUSTOMER FOR LATE PAYMENT OF A BILL FOR ELECTRICITY OR NATURAL GAS, OR BOTH, WHETHER OR NOT SALES TAX IS REQUIRED TO BE PAID ON THE UNDERLYING BILL.

    Amend Title To Conform

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

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

    "( )    effective July 1, 2006, food items eligible for purchase with United States Department of Agriculture food coupons. The exemption allowed by this item does not extend to a local sales and use tax imposed pursuant to a referendum held before July 1, 2001, except where a local sales and use tax specifically exempts these items. The exemption allowed by this item applies to a local sales and use tax imposed pursuant to a referendum held after June 30, 2001. An amount of general fund revenue not derived from the state sales and use tax equal to the amount of state sales and use tax revenue not collected because of the exemption allowed by this item is deemed state sales and use tax revenue and must be used as provided in Section 59-21-1010(A) and (B), including the appropriate amount required to be credited to the Education Act Improvement Fund;"

B.    Notwithstanding the rates of tax imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons, is four percent for sales from July 1, 2001, through June 30, 2003, three percent for such sales from July 1, 2003, through June 30, 2004, two percent for such sales from July 1, 2004, through June 30, 2005, and one percent for such sales from July 1, 2005, through June 30, 2006. An amount of general fund revenue not derived from the state sales and use tax equal to the state sales and use tax not collected because of the reduced state sales tax rate allowed by this section is deemed state sales and use tax revenue and must be used as provided in Section 59-21-1010(A) and (B) of the 1976 Code, including whatever amount is necessary to be credited to the Education Act Improvement Fund so that the total in that fund is not reduced by the reduced rates allowed by this section. Except where otherwise exempt, the local sales and use taxes authorized by law continue to apply to those sales subject to the reduced state rate of tax provided in this section, but such a tax imposed pursuant to a referendum held after June 30, 2001, does not apply to those sales subject to the reduced state rate of tax provided in this section.

SECTION    2.    This act takes effect July 1, 2001.

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