S 0389 General Bill, By I.E. Lourie and R.C. Shealy
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 12-35-551, so as to reduce the sales tax on food upon the passage of a
 constitutional amendment allowing state lotteries to be conducted.

   12/10/90  Senate Prefiled
   12/10/90  Senate Referred to Committee on Finance
   01/08/91  Senate Introduced and read first time SJ-129
   01/08/91  Senate Referred to Committee on Finance SJ-129

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-36-2125, SO AS TO REDUCE THE SALES TAX ON FOOD UPON THE PASSAGE OF A CONSTITUTIONAL AMENDMENT ALLOWING STATE LOTTERIES TO BE CONDUCTED.

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

SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:

"Section 12-36-2125. The sales tax on food and beverages must be an amount equal to four percent of the gross proceeds of sales of the commodities. Any reduction in tax revenue caused by this section must not affect the amount of revenue generated by Section 12-36-2620 to fund the South Carolina Education Improvement Act of 1984 in the manner provided by Section 59-21-1010(B). The General Assembly shall, if there is a reduction in revenue which is not offset by the revenue generated by state lotteries, determine how to distribute state revenue to cover the shortfall. The sales tax on beer, wine, liquor, and tobacco products is not affected by this section."

SECTION 2. This act takes effect ninety days after the ratification of amendments to Section 7, Article XVII of the Constitution of South Carolina, 1895, allowing the State to conduct lotteries.