H 3627 General Bill, By Townsend
 A BILL TO AMEND ARTICLE 20, CHAPTER 21, TITLE 12, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO REGULATION OF VIDEO GAME MACHINES, BY ADDING
 SECTION 12-21-2777 SO AS TO IMPOSE A TWENTY PERCENT TAX ON NET INCOME FROM
 LICENSED MACHINES, TO PROVIDE FOR THE PROCESS FOR ENFORCEMENT AND COLLECTION
 OF THE TAX, TO PROVIDE THAT FUNDS RAISED FROM THE TAX BE CREDITED TO A MOTOR
 VEHICLE TAX RELIEF FUND AND USED TO ROLL BACK SCHOOL OPERATING MILLAGE IMPOSED
 ON PERSONAL MOTOR VEHICLES, AND TO PROVIDE THAT THE EXEMPTED PROPERTY IS
 CONSIDERED PROPERTY FOR BONDED INDEBTEDNESS PURPOSES.

   03/02/99  House  Introduced and read first time HJ-12
   03/02/99  House  Referred to Committee on Ways and Means HJ-12

TO AMEND ARTICLE 20, CHAPTER 21, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGULATION OF VIDEO GAME MACHINES, BY ADDING SECTION 12-21-2777 SO AS TO IMPOSE A TWENTY PERCENT TAX ON NET INCOME FROM LICENSED MACHINES, TO PROVIDE FOR THE PROCESS FOR ENFORCEMENT AND COLLECTION OF THE TAX, TO PROVIDE THAT FUNDS RAISED FROM THE TAX BE CREDITED TO A MOTOR VEHICLE TAX RELIEF FUND AND USED TO ROLL BACK SCHOOL OPERATING MILLAGE IMPOSED ON PERSONAL MOTOR VEHICLES, AND TO PROVIDE THAT THE EXEMPTED PROPERTY IS CONSIDERED PROPERTY FOR BONDED INDEBTEDNESS PURPOSES.

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

SECTION 1. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-2777. (A) A tax at the rate of twenty percent is imposed on the net income derived from a machine licensed pursuant to Section 12-21-2720(A).

(B) The tax is due and payable on a monthly basis, on or before the twentieth day of the month, and the person liable for the tax on the due date shall make a return to the department, in a form it prescribes, showing the total cash in, total payout, and net machine income for the previous month, and remit the tax with it.

(C) The person making the report required pursuant to Section 12-21-2776(B) is liable for the tax.

(D) Enforcement and collection of this tax are as provided in Chapter 54 of this title.

(E)(1) The tax must be credited to a Motor Vehicle Tax Relief Fund, which must contain an amount equal to the revenue necessary to fund a property tax exemption of five thousand dollars based on the fair market value of property classified as a personal motor vehicle, including a truck with a gross weight of not more than eight thousand pounds and an empty weight of not more than five thousand pounds and a motorcycle owned and operated for personal use.

(2) The funds from the Motor Vehicle Tax Relief Fund must be distributed to the appropriate taxing district and used to roll back the school operating millage imposed on the personal motor vehicle, excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital construction.

(3) Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this subsection is considered taxable property for purposes of bonded indebtedness."

SECTION 2. Upon approval by the Governor this act is effective for property tax years beginning after 1998.