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H. 4813

STATUS INFORMATION

General Bill
Sponsors: Rep. Kirsh
Document Path: l:\council\bills\swb\6623mm06.doc

Introduced in the House on March 15, 2006
Currently residing in the House Committee on Ways and Means

Summary: Sales tax

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   3/15/2006  House   Introduced and read first time HJ-5
   3/15/2006  House   Referred to Committee on Ways and Means HJ-5

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/15/2006

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-54-196 SO AS TO PROVIDE FOR A PENALTY FOR A RETAILER COLLECTING AN EXCESSIVE STATE OR LOCAL SALES TAX AND TO PROVIDE FOR MITIGATION OF THE PENALTY.

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

SECTION    1.    Chapter 54 of Title 12 of the 1976 Code is amended by adding:

"Section 12-54-196.    (A)    If a retailer collects from the purchaser a state or local sales tax in an amount that exceeds the amount authorized pursuant to Section 12-36-940, or the amount required to be collected pursuant to Section 12-36-1350, the retailer may be held liable for a penalty equal to one hundred fifty percent of the amount of tax collected that exceeds the amount authorized to be collected from the purchaser pursuant to Section 12-36-940 or required to be collected from the purchaser pursuant to Section 12-36-1350. The assessment or remittance of this penalty does not relieve the retailer of an obligation the retailer has to repay the purchaser tax collected that exceeds the amount authorized or required to be collected from the purchaser pursuant to Chapter 36 of this title.

(B)    Notwithstanding the provisions of subsection (A), a retailer is not subject to this penalty if the retailer:

(1)    made a good faith effort to determine the proper tax rate;

(2)    made a good faith effort to determine whether or not an exemption or exclusion was applicable; or

(3)    refunds to the purchaser the amount that exceeded the amount authorized or required to be collected on a particular sale within ninety days of being notified and receiving documentation of the proper tax rate or the applicability of the exemption or exclusion.

(C)    The department, at its discretion, may extend the time for issuing a refund pursuant to subsection (B)(3) to avoid the penalty if the retailer makes a request in writing to the department.

(D)    The imposition of the penalty must be based on the facts and circumstances and is at the sole discretion of the department."

SECTION    2.    This act takes effect upon approval by the Governor and applies to taxes collected beginning in tax year 2006.

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