S*0674(Rat #0497, Act #0427)  General Bill, By Land

Similar(H 3913)
 A Bill to amend Section 12-36-90, Code of Laws of South Carolina, 1976,
 relating to the definition of gross proceeds of sales for purposes of the
 sales and use tax, so as to provide that gross proceeds do not include that
 portion of a charge subject to and use tax attributable to the cost set by
 statute for a governmental license or permit; to amend Section 12-36-2120, as
 amended, relating to sales and use tax exemptions, so as to exempt gross
 proceeds of sales of solid waste disposal collection bags required by a
 political subdivision's solid waste disposal plan when the plan requires the
 purchase of a specifically designated containment bag; to amend Section
 12-7-1250, as amended, relating to the corporate income tax infrastructure
 credit, so as to provide that the credit applies annually and up to thirty
 thousand dollars of credit may be carried forward and to provide that the
 credit may be claimed on a consolidated basis on a consolidate corporate
 income tax return; and to amend Section 41-44-30, relating to the tax credit
 allowed a qualified investment for purposes of the Palmetto Seed Capital Fund,
 so as to provide that the credit may be claimed on a consolidated basis on a
 consolidated cor

   04/13/93  Senate Introduced and read first time SJ-10
   04/13/93  Senate Referred to Committee on Finance SJ-10
   01/19/94  Senate Committee report: Favorable Finance SJ-14
   01/20/94  Senate Read second time SJ-25
   01/25/94  Senate Read third time and sent to House SJ-10
   01/26/94  House  Introduced and read first time HJ-9
   01/26/94  House  Referred to Committee on Ways and Means HJ-9
   04/21/94  House  Committee report: Favorable Ways and Means HJ-9
   05/10/94  House  Amended HJ-22
   05/10/94  House  Debate adjourned until Wednesday, May 11, 1994 HJ-34
   05/11/94  House  Read second time HJ-74
   05/12/94  House  Reconsider vote whereby read second time HJ-16
   05/12/94  House  Amended HJ-16
   05/12/94  House  Read second time HJ-17
   05/16/94  House  Read third time and returned to Senate with
                     amendments HJ-10
   05/17/94  Senate Concurred in House amendment and enrolled SJ-390
   05/24/94         Ratified R 497
   05/27/94         Signed By Governor
   06/14/94         Effective date 05/27/94
   06/14/94         Copies available

AN ACT TO AMEND SECTION 12-36-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF GROSS PROCEEDS OF SALES FOR PURPOSES OF THE SALES AND USE TAX, SO AS TO PROVIDE THAT GROSS PROCEEDS DO NOT INCLUDE THAT PORTION OF A CHARGE SUBJECT TO AND USE TAX ATTRIBUTABLE TO THE COST SET BY STATUTE FOR A GOVERNMENTAL LICENSE OR PERMIT; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO EXEMPT GROSS PROCEEDS OF SALES OF SOLID WASTE DISPOSAL COLLECTION BAGS REQUIRED BY A POLITICAL SUBDIVISION'S SOLID WASTE DISPOSAL PLAN WHEN THE PLAN REQUIRES THE PURCHASE OF A SPECIFICALLY DESIGNATED CONTAINMENT BAG; TO AMEND SECTION 12-7-1250, AS AMENDED, RELATING TO THE CORPORATE INCOME TAX INFRASTRUCTURE CREDIT, SO AS TO PROVIDE THAT THE CREDIT APPLIES ANNUALLY AND UP TO THIRTY THOUSAND DOLLARS OF CREDIT MAY BE CARRIED FORWARD AND TO PROVIDE THAT THE CREDIT MAY BE CLAIMED ON A CONSOLIDATED BASIS ON A CONSOLIDATED CORPORATE INCOME TAX RETURN; AND TO AMEND SECTION 41-44-30, RELATING TO THE TAX CREDIT ALLOWED A QUALIFIED INVESTMENT FOR PURPOSES OF THE PALMETTO SEED CAPITAL FUND, SO AS TO PROVIDE THAT THE CREDIT MAY BE CLAIMED ON A CONSOLIDATED BASIS ON A CONSOLIDATED CORPORATE INCOME TAX RETURN.

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

Gross proceeds of sales

SECTION 1. Section 12-36-90(2) of the 1976 Code, as added by Act 612 of 1990, is amended by adding at the end:

"(f) that portion of a charge taxed under Section 12-36-910(B)(3) or 12-36-1310(B)(3) attributable to the cost set by statute for a governmental license or permit."

Containment bags exempt

SECTION 2. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered subsection to read:

"( ) solid waste disposal collection bags required pursuant to the solid waste disposal plan of a county or other political subdivision if the plan requires the purchase of a specifically designated containment bag for solid waste disposal;"

Infrastructure credit

SECTION 3. A. Section 12-7-1250(A) of the 1976 Code, as added by Act 488 of 1988, is further amended to read:

"(A) A corporate taxpayer is allowed as a credit against taxes due pursuant to Section 12-7-230 an amount equal to fifty percent, not to exceed ten thousand dollars annually, of expenses paid or accrued by the taxpayer in building or improving any one infrastructure project. Any unused credit, up to a total amount of thirty thousand dollars, may be carried forward three years."

B. Section 12-7-1250 of the 1976 Code, as last amended by Act 181 of 1993, is further amended by adding:

"(F) A corporation which files or is required to file a consolidated return is entitled to the income tax credit allowed by Section 12-7-1250(A) on a consolidated basis. The tax credit may be determined on a consolidated basis regardless of whether or not the corporation entitled to the credit contributed to the tax liability of the consolidated group.

(G) The merger, consolidation, or reorganization of a corporation where tax attributes survive does not create new eligibility in a succeeding corporation but unused credits may be transferred and continued by the succeeding corporation. In addition, a corporation may assign its rights to its unused credit to another corporation if it transfers all, or substantially all, of the assets of the corporation or all, or substantially all, of the assets of a trade or business or operating division of a corporation to another corporation."

C. This section is effective for taxable years beginning after 1987.

Seed capital credit

SECTION 4. A. Section 41-44-30 of the 1976 Code, as added by Act 643 of 1988, is amended by adding at the end:

"A corporation which files or is required to file a consolidated return is entitled to the income tax credit allowed by this section on a consolidated basis. The tax credit may be determined on a consolidated basis regardless of whether or not the corporation entitled to the credit contributed to the tax liability of the consolidated group.

The merger, consolidation, or reorganization of a corporation where tax attributes survive does not create new eligibility in a succeeding corporation but unused credits may be transferred and continued by the succeeding corporation. In addition, a corporation may assign its rights to its unused credit to another corporation if it transfers all, or substantially all, of the assets of the corporation or all, or substantially all, of the assets of a trade or business or operating division of a corporation to another corporation."

B. This section is effective for taxable years beginning after 1987.

Time effective

SECTION 5. This act takes effect upon approval by the Governor.

Approved the 27th day of May, 1994.