South Carolina General Assembly
116th Session, 2005-2006

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S. 869

STATUS INFORMATION

General Bill
Sponsors: Senator Grooms
Document Path: l:\s-res\lkg\003milk.kmm.doc

Introduced in the Senate on May 19, 2005
Currently residing in the Senate Committee on Finance

Summary: Milk producer

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   5/19/2005  Senate  Introduced and read first time SJ-4
   5/19/2005  Senate  Referred to Committee on Finance SJ-4

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

5/19/2005

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

A BILL

TO AMEND CHAPTER 6, TITLE 12 OF THE 1976 CODE, BY ADDING SECTION 12-6-3580 TO ALLOW A REFUNDABLE STATE INCOME TAX CREDIT TO A RESIDENT TAXPAYER MILK PRODUCER FOR ANY TAXABLE YEAR IN WHICH THE USDA CLASS I PRICE OF FLUID MILK IN THIS STATE DROPS BELOW A PRODUCTION PRICE SET BY THE DEPARTMENT OF AGRICULTURE FOR MILK SOLD BELOW THAT PRODUCTION PRICE, TO PROVIDE FOR THE AMOUNT OF THE CREDIT, AND TO ESTABLISH FACTORS THE DEPARTMENT OF AGRICULTURE MUST CONSIDER WHEN ESTABLISHING AN PRODUCTION PRICE.

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

SECTION    1.    A.        Chapter 6, Title 12 of the 1976 Code is amended to include:

"Section 12-6-3580.    (A)    A resident taxpayer engaged in the business of producing milk for sale is allowed a refundable income tax credit based on the amount of milk produced and sold. The credit may be claimed against the taxes due pursuant to Section 12-6-510 or 12-6-530. The credit is allowed when the USDA Class I price of fluid milk in South Carolina drops below the production price anytime during the taxable year.

(B)    The Department of Agriculture shall promulgate regulations to implement the provisions of this section, including the establishment of the production price, which must consider the following factors, including but not limited to:

(1)    the average price of milk in the top five states where milk is imported to South Carolina;

(2)    the average transportation cost of importing milk from those five states; and

(3)    the cost of production in South Carolina.

(C)(1)    Each qualifying taxpayer is eligible for a ten thousand dollar tax credit based on the production and sale of the first five hundred thousand pounds of milk sold below the production price over a calendar year. The credit must be prorated on a quarterly basis.

(2)    For each additional five hundred thousand pounds of milk sold below the production price, there is allowed an additional credit of five thousand dollars, also prorated on a quarterly basis.

(D)    If no taxes are due, or the credit exceeds the tax liability of the taxpayer for the taxable year, the amount of the credit or excess over the tax liability must be refunded to the taxpayer. The South Carolina Commissioner of Agriculture shall certify to the Department of Revenue that producers claiming credits have met the eligibility requirements provided in this section."

B.    Notwithstanding the general effective date of this act, this section is effective for taxable years beginning after 2004.

SECTION    2.    This act takes effect upon approval by the Governor.

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