H 3932 Session 112 (1997-1998)
H 3932 General Bill, By Wilkins, Altman, Bailey, Boan, H. Brown, Cato, Cooper,
Easterday, Harrell, Haskins, Klauber, Knotts, Robinson, Sandifer, Sharpe,
Whatley, W.J. Young and Young-Brickell
Similar(S 239)
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, AS AMENDED, 12-36-70, AS AMENDED, 12-36-110, AS AMENDED,
12-36-120, AS AMENDED, 12-36-910, AS AMENDED, AND 12-36-1310, RELATING TO
TAXING PROCEEDS OF RETAIL AND WHOLESALE SALES OF TANGIBLE PERSONAL PROPERTY,
SO AS TO IMPOSE A FIVE PERCENT SALES AND USE TAX ON LOCAL TELECOMMUNICATION
SERVICES, CABLE TELEVISION SUBSCRIBER SERVICES, AND PAGING SERVICES; TO AMEND
SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM SALES TAX, SO AS
TO DELETE THE EXEMPTION FOR TOLL CHARGES FOR VOICE OR MESSAGE TRANSMISSION,
CHARGES FOR TELEGRAPH MESSAGES AND CARRIER AND CUSTOMER ACCESS LINE CHARGES;
AND TO REPEAL SECTION 12-36-2645 RELATING TO TAXES ON THE PROCEEDS OF 900-976
TELEPHONE SERVICES.
04/10/97 House Introduced and read first time HJ-75
04/10/97 House Referred to Committee on Ways and Means HJ-75
04/08/98 House Committee report: Favorable with amendment Ways
and Means HJ-12
04/15/98 House Amended HJ-41
04/15/98 House Read second time HJ-41
04/16/98 House Read third time and sent to Senate HJ-12
04/21/98 Senate Introduced and read first time SJ-15
04/21/98 Senate Referred to Committee on Finance SJ-15
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 15, 1998
H. 3932
Introduced by Reps. Wilkins, H. Brown, Easterday, Klauber,
Haskins, Young-Brickell, Cato, Cooper, Sharpe, Sandifer, Bailey,
Robinson, Harrell, Boan, Knotts, Whatley, Young and Altman
S. Printed 4/15/98--H.
Read the first time April 10, 1997.
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, AS AMENDED, 12-36-70, AS AMENDED, 12-36-110,
AS AMENDED, 12-36-120, AS AMENDED, 12-36-910, AS
AMENDED, AND 12-36-1310, RELATING TO TAXING
PROCEEDS OF RETAIL AND WHOLESALE SALES OF
TANGIBLE PERSONAL PROPERTY, SO AS TO IMPOSE A FIVE
PERCENT SALES AND USE TAX ON LOCAL
TELECOMMUNICATION SERVICES, CABLE TELEVISION
SUBSCRIBER SERVICES, AND PAGING SERVICES; TO
AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO
EXEMPTIONS FROM SALES TAX, SO AS TO DELETE THE
EXEMPTION FOR TOLL CHARGES FOR VOICE OR MESSAGE
TRANSMISSION, CHARGES FOR TELEGRAPH MESSAGES
AND CARRIER AND CUSTOMER ACCESS LINE CHARGES;
AND TO REPEAL SECTION 12-36-2645 RELATING TO TAXES
ON THE PROCEEDS OF 900/976 TELEPHONE SERVICES.
Amend Title To Conform
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
access to a service for the transmission of voice, data, video signals,
or other information by and through a medium including, but not
limited to, wires, cables, microwaves, light waves, satellites, or a
combination of them or similar media, and includes all services as are
subject to taxation pursuant to 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 in which 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 a medium including, but not
limited to, wires, cables, microwaves, light waves, satellites, or a
combination of them or similar media."
SECTION 2. Section 12-36-60 of the 1976 Code, as last amended
by Act 145 of 1995, is further amended to read:
"Section 12-36-60. 'Tangible personal property' means
personal property which may be is seen, weighed,
measured, felt, touched, or which is in any other
another 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 a 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
individual individual's 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
a 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, as last
amended by Act 431 of 1996, is further 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 considered
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 only 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, as last
amended by Act 361 of 1992, is further 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, as
added by Act 612 of 1990, 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, as added
by Act 612 of 1990, 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 July 1, 1999.
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