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H. 3013
STATUS INFORMATION
General Bill
Sponsors: Reps. Kirsh, Sandifer and Cotty
Document Path: l:\council\bills\bbm\9604htc07.doc
Introduced in the House on January 9, 2007
Currently residing in the House Committee on Ways and Means
Summary: Tangible personal property
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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12/13/2006 House Prefiled
12/13/2006 House Referred to Committee on Ways and Means
1/9/2007 House Introduced and read first time HJ-22
1/9/2007 House Referred to Committee on Ways and Means HJ-22
1/11/2007 House Member(s) request name added as sponsor: Cotty
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-36-570 SO AS TO REQUIRE PROCUREMENTS BY GOVERNMENTAL BODIES OF TANGIBLE PERSONAL PROPERTY TO BE MADE FROM VENDORS WHO ARE LICENSED BY THE SOUTH CAROLINA DEPARTMENT OF REVENUE AND WHO AGREE TO REMIT SOUTH CAROLINA SALES AND USE TAX, TO PROVIDE FOR EXCEPTIONS TO THIS REQUIREMENT, AND TO PROVIDE FOR THE ENFORCEMENT OF THIS REQUIREMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 35, Title 11 of the 1976 Code is amended by adding:
Section 12-36-570. (A) A governmental body may not contract to purchase tangible personal property, and a person may not contract to sell tangible personal property to a governmental body unless, before or upon entering into the contract, and during the term of the contract, the person contracting to sell the tangible personal property is licensed pursuant to this article with the South Carolina Department of Revenue and agrees to remit sales and use tax pursuant to this chapter. The provisions of this section apply to all sellers, including nonresident sellers who may not be legally obligated to collect and remit the sales and use tax.
(B) The licensing requirement of subsection (A) does not apply:
(1) if all sales of tangible personal property by the person to governmental bodies or residents or businesses in this state are exempt from the sales and use tax pursuant to Section 12-36-2120; or,
(2) to an affiliate of the person contracting with a governmental body if that affiliate is not selling tangible personal property to a governmental body or a resident or business in this state.
(C) The provisions of this section do not apply:
(1) if the State Budget and Control Board finds that it is in the best interest of the State not to enforce the provisions of this section with respect to a specific contract; or
(2) if the Governor, after declaring a state of emergency, finds that it is in the best interest of the State not to enforce the provisions of this section in order directly to provide timely assistance with respect to the declared emergency.
(D) As used in this section:
(1) 'governmental body' means a state government department, commission, council, board, bureau, committee, institution, college, university, technical school, agency, government corporation, or other establishment or official of the executive or judicial branch and all political subdivisions including, but not limited to, counties, municipalities, school districts, and public service or special purpose districts;
(2) 'person' has the meaning provided in Section 12-36-30 and includes every affiliate of the person contracting with a governmental body;
(3) 'affiliate' includes any person that bears a relationship, as set forth in Internal Revenue Code Section 267, to the person entering into a contract, or under contract, with the governmental body; and
(4) 'tangible personal property' has the meaning provided in Section 12-36-60.
(E) The State Budget and Control Board shall enforce the provisions of this section and may require governmental bodies to incorporate within all contracts to purchase tangible personal property penalties that must be imposed upon the person contracting with the governmental body for failure to comply with this section.
(F) Failure of the person contracting with a governmental body to comply with the provisions of this section allows the governmental body, at its discretion, immediately to void the contract, and impose any penalties established under this chapter or by contract for failure of the person to comply with the law. Any penalties imposed pursuant to this section must not be passed on to the governmental body."
SECTION 2. This act takes effect upon approval by the Governor and applies for procurements beginning on or after that date.
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