S*0774(Rat #0362, Act #0333 of 1996)  General Bill, By Land

Similar(H 4848)
 A Bill to amend Section 56-31-50, as amended, Code of Laws of South Carolina,
 1976, relating to the collection and use of surcharges imposed upon the
 private passenger motor vehicles rented for thirty-one days or less, and to
 certain reports, violations, penalties, regulations, and forms pertaining to
 the collection of the surcharges, so as to provide that the surcharges are a
 sales tax that belongs to the State which must be placed in a segregated
 account, the surcharges are not subject to certain creditor liens, and are not
 gross receipts or revenue, and a person or entity may not impose a fee,
 penalty, or expense on individuals complying with this provision, and to
 provide that certain rental companies are not liable for certain
 surcharges.-amended title

   04/25/95  Senate Introduced and read first time SJ-6
   04/25/95  Senate Referred to Committee on Finance SJ-6
   04/24/96  Senate Committee report: Favorable Finance SJ-10
   04/25/96  Senate Read second time SJ-36
   04/25/96  Senate Ordered to third reading with notice of
                     amendments SJ-36
   04/29/96  Senate Read third time and sent to House SJ-23
   04/30/96  House  Introduced, read first time, placed on calendar
                     without reference HJ-15
   05/01/96  House  Amended HJ-59
   05/01/96  House  Read second time HJ-60
   05/02/96  House  Read third time and returned to Senate with
                     amendments HJ-14
   05/02/96  Senate Concurred in House amendment and enrolled SJ-46
   05/14/96         Ratified R 362
   05/20/96         Signed By Governor
   05/20/96         Effective date 05/20/96
   05/31/96         Copies available
   05/31/96         Act No. 333

AN ACT TO AMEND SECTION 56-31-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE COLLECTION AND USE OF SURCHARGES IMPOSED UPON THE PRIVATE PASSENGER MOTOR VEHICLES RENTED FOR THIRTY-ONE DAYS OR LESS, AND TO CERTAIN REPORTS, VIOLATIONS, PENALTIES, REGULATIONS, AND FORMS PERTAINING TO THE COLLECTION OF THE SURCHARGES, SO AS TO PROVIDE THAT THE SURCHARGES ARE A SALES TAX THAT BELONGS TO THE STATE WHICH MUST BE PLACED IN A SEGREGATED ACCOUNT, THE SURCHARGES ARE NOT SUBJECT TO CERTAIN CREDITOR LIENS, AND ARE NOT GROSS RECEIPTS OR REVENUE, AND A PERSON OR ENTITY MAY NOT IMPOSE A FEE, PENALTY, OR EXPENSE ON INDIVIDUALS COMPLYING WITH THIS PROVISION, AND TO PROVIDE THAT CERTAIN RENTAL COMPANIES ARE NOT LIABLE FOR CERTAIN SURCHARGES.

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

Rental vehicle surcharge

SECTION 1. Section 56-31-50 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 56-31-50. (A) Rental companies engaged in the business of renting private passenger motor vehicles for periods of thirty-one days or less shall collect, at the time the vehicle is rented in South Carolina, a five percent surcharge in each rental contract. For purposes of this section, a vehicle is rented in South Carolina if it is picked up by the renter in South Carolina. The surcharge is a sales tax subject to the provisions of this chapter, and must be computed on the total amount stated in the rental agreement, except that taxes imposed by Chapter 36 of Title 12 must not be used in computing the surcharge, and the surcharge is not subject to the taxes imposed by Chapter 36 of Title 12.

(B) The surcharge must be noted in the rental contract and collected in accordance with the terms of the contract. The surcharges must be retained by the vehicle owner or the rental company engaged in the business of renting private passenger motor vehicles. The surcharges must be placed in a segregated account by the vehicle owner or rental company once they are collected. Surcharges collected belong to the State and are not subject to creditor liens of the vehicle owner or rental company. Surcharges collected pursuant to this section may be used only by the vehicle owner or the rental company for reimbursement of the amount of personal property taxes imposed and paid upon these vehicles by the vehicle owner or rental company as provided by law. The collection and use of the surcharges are not gross receipts or revenue to the vehicle owner or rental company. A person or entity may not impose a fee, penalty, or expense on a vehicle owner or rental company for complying with the provisions contained in this chapter.

(C) On February fifteenth of each year all rental companies engaged in the business of renting private passenger motor vehicles which collect surcharges pursuant to this section shall file a report with the Department of Revenue and Taxation stating the total amount of South Carolina personal property taxes on private passenger motor vehicles paid in the previous calendar year, the total amount of private passenger motor vehicle rental revenues earned on rentals in South Carolina for the previous calendar year, and the amount by which the total amount of the surcharges for the previous year exceeds the total amount of personal property taxes on private passenger motor vehicles paid for the previous calendar year. All surcharge revenues collected in excess of the total amount of personal property taxes on private passenger motor vehicles must be remitted to the Department of Revenue and Taxation for deposit in the state general fund.

(D) A rental company which makes a false report to the Department of Revenue and Taxation with the intent to misrepresent the amount of personal property taxes on private passenger motor vehicles paid or the amount of surcharges collected is guilty of a misdemeanor and, upon conviction, must be punished by a fine not exceeding one thousand dollars or by a term of imprisonment not exceeding one year, or both. Each violation constitutes a separate offense.

(E) The Department of Revenue and Taxation shall promulgate regulations necessary to implement the provisions of this section and shall provide the necessary forms to meet the filing requirements of this section."

Rental vehicle surcharge exemption

SECTION 2. Notwithstanding any other provision of law, for the purposes of audits conducted by the South Carolina Department of Revenue and Taxation, a rental company engaged in the business of renting private passenger motor vehicles for periods of thirty-one days or less is not liable for monies paid, relating to surcharges, to an airport or other authority between June 30, 1993 and the effective date of this act.

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Approved the 20th day of May, 1996.