S 239 Session 112 (1997-1998)
S 0239 General Bill, By Passailaigue, Alexander, Ford, Hutto, Leventis,
McConnell and Wilson
Similar(H 3932)
A BILL TO AMEND CHAPTER 36 OF TITLE 12, RELATING TO SALES AND USE TAX, BY
ADDING SECTION 12-36-160, SO AS TO ADD APPROPRIATE DEFINITIONS; TO AMEND
SECTIONS 12-36-60, 12-36-70, AS AMENDED, 12-36-110, 12-36-120, 12-36-910,
12-36-1310, AND 12-36-2120, SO AS TO IMPOSE A FIVE PERCENT SALES AND USE TAX
ON LOCAL TELECOMMUNICATION SERVICES, CABLE TELEVISION SUBSCRIBER SERVICES, AND
PAGING SERVICES; TO REPEAL SUBSECTION II OF SECTION 12-36-2120, RELATING TO
EXEMPTIONS FROM SALES TAX, SO AS TO CREATE AN EXCLUSION FOR GROSS PROCEEDS OR
SALES PRICE DERIVED FROM TOLL CHARGES FOR VOICE OR MESSAGE TRANSMISSION,
CHARGES FOR TELEGRAPH MESSAGES AND CARRIER AND CUSTOMER ACCESS LINE CHARGES
FROM SALES TAX; AND TO REPEAL SECTION 12-36-2645, RELATING TO TAXES ON THE
PROCEEDS OF 900/976 TELEPHONE SERVICES, SO AS TO REPEAL THE TEN PERCENT SALES
TAX IMPOSED UPON THE PROCEEDS OF 900/976 TELEPHONE SERVICES.
01/22/97 Senate Introduced and read first time SJ-10
01/22/97 Senate Referred to Committee on Finance SJ-10
A BILL
TO AMEND CHAPTER 36 OF TITLE 12, RELATING TO SALES
AND USE TAX, BY ADDING SECTION 12-36-160, SO AS TO
ADD APPROPRIATE DEFINITIONS; TO AMEND SECTIONS
12-36-60, 12-36-70, AS AMENDED, 12-36-110, 12-36-120,
12-36-910, 12-36-1310, AND 12-36-2120, SO AS TO IMPOSE A
FIVE PERCENT SALES AND USE TAX ON LOCAL
TELECOMMUNICATION SERVICES, CABLE TELEVISION
SUBSCRIBER SERVICES, AND PAGING SERVICES; TO
REPEAL SUBSECTION II OF SECTION 12-36-2120, RELATING
TO EXEMPTIONS FROM SALES TAX, SO AS TO CREATE AN
EXCLUSION FOR GROSS PROCEEDS OR SALES PRICE
DERIVED FROM TOLL CHARGES FOR VOICE OR MESSAGE
TRANSMISSION, CHARGES FOR TELEGRAPH MESSAGES
AND CARRIER AND CUSTOMER ACCESS LINE CHARGES
FROM SALES TAX; AND TO REPEAL SECTION 12-36-2645,
RELATING TO TAXES ON THE PROCEEDS OF 900/976
TELEPHONE SERVICES, SO AS TO REPEAL THE TEN
PERCENT SALES TAX IMPOSED UPON THE PROCEEDS OF
900/976 TELEPHONE SERVICES.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 12-36-160. (A) `Telecommunication service' means
the access to a service for the transmission of voice, data, video
signals, or other information by and through any media including, but
not limited to, wires, cables, microwaves, light waves, satellites, or
any combination of them or similar media, and includes all services
as are subject to taxation under Sections 12-36-910(B)(3) and
12-36-1310(B)(3). This term does not include:
(1) services which are ancillary to the providing of
telecommunication service but are not directly related to the
transmission of voice, data, video signals, or other information
including, but not limited to, directory advertising and listings,
detailed billing services, bad check charges, and nonrecurring charges
for installation, move, change, or termination services;
(2) the right to access and retrieve computer database or on-line
information, or both, by and through a telecommunication service;
and
(3) the use by a business engaged in providing
telecommunication services of its own telecommunication services.
However, sales of telecommunication services between related
entities are subject to the tax unless otherwise exempt or excluded
from the tax.
(B) `Local telecommunication service' means access to a basic
local service or a local private line service and enhancements to these
services including, but not limited to, call waiting, call forwarding,
and three-way calling. This term does not include:
(1) toll charges for the transmission of voice, data video, or
other information between telephone exchanges;
(2) carrier access and interconnection charges and customer or
subscriber access line charges, or both, approved or established by
the Federal Communications Commission or the South Carolina
Public Service Commission; or
(3) interstate services.
(C) `Basic local service' means access to a local telephone or other
local telecommunication system and the privilege of communication
with substantially all persons having telephone stations or other
telecommunication stations constituting a part of this local system.
(D) `Local private line service' means access to a
telecommunication service whereby the subscriber is entitled to
exclusive or priority use of a communications channel or group of
communications channels wholly within a local calling area.
(E) `Cable television subscriber services' and `similar video
programming services' mean access to video programming that is
transmitted to subscribers through any media including, but not
limited to, wires, cables, microwaves, light waves, satellites, or any
combination of them or similar media."
SECTION 2. Section 12-36-60 of the 1976 Code is amended to
read:
"Section 12-36-60. `Tangible personal property' means
personal property which may be seen, weighed, measured, felt,
touched, or which is in any other manner perceptible to the senses.
It also includes services and intangibles, including
communications services subject to tax under Sections
12-36-910(B)(3) and 12-36-1310(B)(3), laundry and related
services, furnishing of accommodations and sales of electricity, the
sale or use of which is subject to tax under this chapter and does not
include stocks, notes, bonds, mortgages, or other evidences of debt.
Tangible personal property does not include the transmission of
computer database information by a cooperative service when the
database information has been assembled by and for the exclusive use
of the members of the cooperative service."
SECTION 3. Section 12-36-70 of the 1976 Code, as amended by
Act 458 of 1996, is further amended to read:
"Section 12-36-70. "Retailer" and
"seller" include every person:
(1) (a) selling or auctioning tangible personal property whether
owned by the person or others;
(b) furnishing accommodations to transients for a
consideration, except an individual furnishing accommodations of
less than six sleeping rooms on the same premises, which is the
individuals place of abode;
(c) renting, leasing, or otherwise furnishing tangible personal
property for a consideration;
(d) operating a laundry, cleaning, dyeing, or pressing
establishment for a consideration;
(e) selling electric power or energy;
(f) selling or otherwise furnishing the ways or
means for the transmission of the voice or of messages
between persons in this State for a consideration the services
subject to taxation under Sections 12-36-910(B)(3) and
12-36-1310(B)(3). A person engaged in the business of selling
or otherwise furnishing the ways or means for the
transmission of the voice or messages as used in this subitem (f)
consideration telecommunication services is not considered
a processor or manufacturer;
(2) (a) maintaining a place of business or qualifying to do
business in this State; or
(b) not maintaining an office or location in this State but
soliciting business by direct or indirect representatives,
manufacturers agents, distribution of catalogs, or other advertising
matter or by any other means, and by reason thereof receives orders
for tangible personal property or for storage, use, consumption, or
distribution in this State.
The commission department, when necessary for
the efficient administration of this chapter, may treat any salesman,
representative, trucker, peddler, or canvasser as the agent of the
dealer, distributor, supervisor, employer, or other person under whom
they operate or from whom they obtain the tangible personal property
sold by them, regardless of whether they are making sales on their
own behalf or on behalf of the dealer, distributor, supervisor,
employer, or other person. The commission
department may also treat the dealer, distributor, supervisor,
employer, or other person as a retailer for purposes of this chapter.
SECTION 4. Section 12-36-110(1) of the 1976 Code is amended
by adding at the end :
"(l) sales, not otherwise exempt or excluded, of local
telecommunication services to persons selling faxing services, 900 or
976 telephone services, or both, and computer database or on-line
information services, or both. A person selling faxing services, 900
or 976 telephone services, or both, and computer database or on-line
information services, or both, is deemed to be the user or consumer
of the telephone services and is not subject to the sales and use tax for
the subsequent sale of faxing services, 900 or 976 telephone services,
or both, and computer database or on-line information services, or
both."
SECTION 5. Section 12-36-120 of the 1976 Code, as last amended
by Act 431 of 1996, is further amended by adding at the end:
"(6) telecommunication services subject to tax under
Section 12-36-910(B)(3) or 12-36-1310(B)(3) to the providers of
these services for the purpose of resale and do not include sales to
these persons as users or consumers not for resale. This item only is
applicable if the seller obtains a resale certificate, on a form provided
by the department, from the purchaser before the sale of these
services certifying that the services are being purchased for the
purpose of resale."
SECTION 6. Section 12-36-910(B)(3) of the 1976 Code is
amended to read:
"(3) gross proceeds accruing or proceeding from the
charges for the ways or means for the transmission of the voice or
messages, including the charges for use of equipment furnished by
the seller or supplier of the ways or means for the transmission of the
voice or messages; these telecommunication services:
(a) local telecommunication services;
(b) cable television subscriber services or similar video
programming subscriber services;
(c) paging services; or
(d) telephone answering services and voice mail
services;"
SECTION 7. Section 12-36-1310(B)(3) of the 1976 Code is
amended to read:
"(3) gross proceeds accruing or proceeding from the
charges for the ways or means for the transmission of the voice or
messages, including the charges for use of equipment furnished by
the seller or supplier of the ways or means for the transmission of the
voice or messages; these telecommunication services:
(a) local telecommunication services;
(b) cable television subscriber services or similar video
programming subscriber services;
(c) paging services; or
(d) telephone answering services and voice mail
services;"
SECTION 8. Section 12-36-1310(C) of the 1976 Code is amended
to read:
"(C) When a taxpayer is liable for the use tax imposed by
this section on tangible personal property purchased in another state,
upon which a sales or use tax was due and paid in the other state, the
amount of the sales or use tax due and paid in the other state is
allowed as a credit against the use tax due this State, upon proof of
payment of the sales or use tax. The provisions of this section do not
apply if the state in which the property was purchased does not allow
substantially similar tax credits for tangible personal property
purchased in this State. If the amount of the sales or use tax paid in
the other state is less than the amount of use tax imposed by this
article, the user shall pay the difference to the commission
department."
SECTION 9. Section 12-36-2120(11) of the 1976 Code is
amended to read:
"(11) (a) toll charges for the transmission of
voice or messages between telephone exchanges;
(b) charges for telegraph messages; and
(c) carrier access charges and customer
access line charges established by the Federal Communications
Commission or the South Carolina Public Service Commission
(Reserved);"
SECTION 10. Section 12-36-2645 of the 1976 Code is repealed.
SECTION 11. This act takes effect September 1, 1997.
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