S 1300 General Bill, By Passailaigue

Similar(H 4872)
 A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO EXEMPTIONS FROM THE SALES AND USE TAX, SO AS TO
 REQUIRE THE TAXPAYER TO GIVE NOTICE TO THE DEPARTMENT OF REVENUE THAT IT
 QUALIFIES FOR THE EXEMPTION BY INVESTING AT LEAST THIRTY-FIVE MILLION DOLLARS
 AND TO PROVIDE FOR THE TOLLING OF THE TIME LIMIT FOR ASSESSMENT OF TAXES; AND
 TO AMEND SECTION 12-36-2680, AS AMENDED, RELATING TO ISSUANCE OF AN EXEMPTION
 CERTIFICATE, SO AS TO ELIMINATE A CERTIFICATE ISSUED PURSUANT TO THE EXEMPTION
 OF CERTAIN FARM, GROVE, VINEYARD, AND GARDEN PRODUCTS.

   04/04/00  Senate Introduced and read first time SJ-8
   04/04/00  Senate Referred to Committee on Finance SJ-8

TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM THE SALES AND USE TAX, SO AS TO REQUIRE THE TAXPAYER TO GIVE NOTICE TO THE DEPARTMENT OF REVENUE THAT IT QUALIFIES FOR THE EXEMPTION BY INVESTING AT LEAST THIRTY-FIVE MILLION DOLLARS AND TO PROVIDE FOR THE TOLLING OF THE TIME LIMIT FOR ASSESSMENT OF TAXES; AND TO AMEND SECTION 12-36-2680, AS AMENDED, RELATING TO ISSUANCE OF AN EXEMPTION CERTIFICATE, SO AS TO ELIMINATE A CERTIFICATE ISSUED PURSUANT TO THE EXEMPTION OF CERTAIN FARM, GROVE, VINEYARD, AND GARDEN PRODUCTS.

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

SECTION 1. Section 12-36-2120(51) of the 1976 Code, as last amended by Act 151 of 1997, is further amended to read:

"(51) material handling systems and material handling equipment including, but not limited to, racks, whether or not the racks are used in the operation of a distribution facility or a manufacturing facility and either used or not used to support a facility structure or part thereof, used in the operation of a distribution facility or a manufacturing facility of it. In order To qualify for this exemption, the taxpayer shall notify the department before the first month it uses the exemption and shall invest at least thirty-five million dollars in any real or personal property in this State over the five-year period beginning on the date provided by the taxpayer to the department in its notices. The taxpayer shall notify the department in writing that it has met the thirty-five million dollar investment requirement or, after the expiration of the five years, that it has not met the thirty-five million dollar investment requirement. The department may assess any tax due on material handling systems and material handling equipment purchased tax-free pursuant to this item but due the State as a result of the taxpayer's failure to meet the thirty-five million dollar investment requirement. The running of the periods of limitations for assessment of taxes provided in Section 12-54-85 is suspended for the time period beginning with notice to the department before the taxpayer uses the exemption and ending with notice to the department that the taxpayer either has met or has not met the thirty-five million dollar investment requirement."

SECTION 2. Section 12-36-2680 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"Section 12-36-2680. The department shall prescribe an exemption certificate for use by persons purchasing items exempt pursuant to items (5), (6), (7), (16), (18), (23), (32), and (44) of Section 12-36-2120. This exemption certificate may be presented upon each purchase by the holder, or the retailer may keep on file a copy of the certificate on file. When an exempt sale is made pursuant to a certificate on file, the purchaser must note on the purchase invoice the exempt items, and state that the items are to be used for exempt purposes. When the purchase order meets the requirements of this section, the liability for any tax determined to be due is solely on the purchaser purchaser's."

SECTION 3. This act takes effect upon approval by the Governor and applies to sales occurring after that date.