H*4853 Session 112 (1997-1998)
H*4853(Rat #0541, Act #0442 of 1998) General Bill, By Boan
A BILL TO AMEND SECTION 12-28-710, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO EXEMPTIONS FROM TAX ON MOTOR FUEL, SO AS TO SET PERCENTAGES
OF REFUND FOR TAXABLE MOTOR FUEL USED TO OPERATE CERTAIN POWER TAKE-OFF
EQUIPMENT, AND TO EXEMPT KEROSENE IN CERTAIN INSTANCES AND MOTOR FUEL USED TO
TRANSPORT STUDENTS FOR STATE-FUNDED INSTITUTIONS OF HIGHER LEARNING; TO AMEND
SECTION 12-28-1730, RELATING TO PENALTIES IN CONNECTION WITH TAX ON MOTORFUEL,
SO AS TO FURTHER PROVIDE FOR THE CIVIL PENALTIES WHICH MAY BE IMPOSED
REGARDING THE SALE OR USE OF DYED FUEL; AND TO REPEAL SECTION 12-31-220 AND
12-31-250 RELATING TO TEMPORARY AND BIENNIAL REGISTRATION CARDS AND
IDENTIFICATION MARKERS FOR MOTOR CARRIERS.
03/19/98 House Introduced and read first time HJ-60
03/19/98 House Referred to Committee on Ways and Means HJ-60
04/23/98 House Committee report: Favorable with amendment Ways
and Means HJ-45
04/29/98 House Amended HJ-26
04/29/98 House Read second time HJ-26
04/30/98 House Read third time and sent to Senate HJ-10
05/05/98 Senate Introduced and read first time SJ-11
05/05/98 Senate Referred to Committee on Finance SJ-11
05/20/98 Senate Recalled from Committee on Finance SJ-19
05/26/98 Senate Read second time SJ-48
05/26/98 Senate Ordered to third reading with notice of
amendments SJ-48
06/03/98 Senate Amended
06/04/98 Senate Amended SJ-165
06/04/98 Senate Read third time and returned to House with
amendments SJ-165
06/04/98 House Non-concurrence in Senate amendment HJ-185
06/16/98 Senate Senate insists upon amendment and conference
committee appointed Senators Drummond, Land, McConnell
06/16/98 House Conference committee appointed Reps. H. Brown,
Young-Brickell & Boan HJ-21
06/16/98 House Free conference powers granted HJ-93
06/16/98 House Free conference committee appointed Reps. H.
Brown, Young-Brickell & Boan HJ-95
06/16/98 House Free conference report received and adopted HJ-95
06/16/98 Senate Free conference powers granted
06/16/98 Senate Free conference committee appointed Senators
Drummond, Land, McConnell
06/16/98 Senate Free conference report received and adopted
06/16/98 House Ordered enrolled for ratification HJ-156
06/17/98 Ratified R 541
08/31/98 Signed By Governor
09/14/98 Act No. 442
(A442, R541, H4853)
AN ACT TO AMEND SECTION 12-28-710, AS AMENDED,
CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
EXEMPTIONS FROM TAX ON MOTOR FUEL, SO AS TO EXEMPT
KEROSENE IN CERTAIN INSTANCES AND MOTOR FUEL USED
TO TRANSPORT STUDENTS BY STATE-FUNDED INSTITUTIONS
OF HIGHER LEARNING; TO AMEND SECTION 12-28-1730,
RELATING TO PENALTIES IN CONNECTION WITH TAX ON
MOTOR FUEL, SO AS TO FURTHER PROVIDE FOR THE CIVIL
PENALTIES WHICH MAY BE IMPOSED REGARDING THE SALE
OR USE OF DYED FUEL; TO REPEAL SECTIONS 12-31-220 AND
12-31-250 RELATING TO TEMPORARY AND BIENNIAL
REGISTRATION CARDS AND IDENTIFICATION MARKERS FOR
MOTOR CARRIERS; TO AMEND ARTICLE 1, CHAPTER 49, TITLE
12, RELATING TO LIENS AND SUITS FOR THE ENFORCED
COLLECTION OF TAXES, BY ADDING SECTION 12-49-85 SO AS
TO PROVIDE FOR THE REMOVAL OF A TAX, ASSESSMENT, OR
PENALTY WHICH PROVES TO BE UNCOLLECTIBLE; TO AMEND
SECTION 12-37-251, AS AMENDED, RELATING TO THE
HOMESTEAD EXEMPTION FROM PROPERTY TAXES LEVIED
FOR SCHOOL OPERATIONS, SO AS TO DELETE LANGUAGE
REFERRING TO THE CALCULATION OF THE ROLLBACK
MILLAGE IN A YEAR OF REASSESSMENT; TO AMEND SECTION
12-43-220, AS AMENDED, RELATING TO ASSESSMENT RATIOS
FOR PROPERTY TAXES, SO AS TO REQUIRE THE
OWNER-OCCUPANT OF A LEGAL RESIDENCE THAT IS BEING
PURCHASED BY CONTRACT OF SALE TO RECORD THE
CONTRACT IN ORDER TO QUALIFY FOR THE FOUR PERCENT
ASSESSMENT RATIO; TO AMEND SECTION 12-54-85, RELATING
TO TIME LIMITATIONS FOR ASSESSMENT OF TAXES, SO AS TO
PROVIDE THAT THE ASSESSMENT OF THE TAX OCCURS ON
THE LATER OF THE LAST DAY THE TAX MAY BE PAID
WITHOUT PENALTY OR THE DATE OF THE TAX NOTICE; TO
AMEND SECTION 12-60-2520, RELATING TO TAXPAYER
OBJECTION TO A PROPERTY TAX ASSESSMENT, SO AS TO
PROVIDE FOR AGREEMENT WITH THE OBJECTION WITHOUT
A CONFERENCE; TO AMEND SECTION 12-60-2910, AS
AMENDED, RELATING TO TAXPAYER OBJECTION TO A
PERSONAL PROPERTY TAX ASSESSMENT OR A DENIAL OF A
HOMESTEAD EXEMPTION, SO AS TO CONFORM THE
DEFINITION OF WHEN THE ASSESSMENT OF THE TAX OCCURS;
TO REPEAL SECTION 12-43-225, RELATING TO SPECIAL
ASSESSMENT RATIOS, AND SECTION 12-49-80, RELATING TO
LAWSUITS BY THE STATE TO COLLECT BACK TAXES; TO
AMEND SECTION 61-2-100, RELATING TO PERSONS ALLOWED
TO BE LICENSEES OR PERMITTEES OF THE DEPARTMENT OF
REVENUE FOR PURPOSES OF SELLING ALCOHOLIC LIQUORS,
BEER, AND WINE, SO AS TO PROVIDE FOR THE ISSUANCE OF
A LICENSE OR PERMIT TO AN INDIVIDUAL OR TO A BUSINESS
OR OTHER ENTITY AND TO ESTABLISH REQUIREMENTS FOR
BEING ISSUED THE LICENSE OR PERMIT; TO AMEND SECTION
61-6-505, RELATING TO THE ISSUANCE OF A TEMPORARY
LICENSE TO THE PURCHASER OF A RETAIL BUSINESS WHICH
SELLS ALCOHOLIC BEVERAGES, SO AS TO INCLUDE ONE WHO
ACQUIRES THE BUSINESS BY TRANSFER OTHER THAN
PURCHASE; TO AMEND SECTION 61-6-2005, RELATING TO THE
ISSUANCE OF A TEMPORARY LICENSE TO THE PURCHASER OF
A RETAIL BUSINESS WHICH SELLS ALCOHOLIC LIQUORS IN
MINIBOTTLES, SO AS TO INCLUDE ONE WHO ACQUIRES THE
BUSINESS BY TRANSFER OTHER THAN PURCHASE; TO AMEND
SECTION 61-4-210, RELATING TO THE ISSUANCE OF A
TEMPORARY LICENSE TO THE PURCHASER OF A RETAIL
BUSINESS WHICH SELLS BEER OR WINE, SO AS TO INCLUDE
ONE WHO ACQUIRES THE BUSINESS BY TRANSFER OTHER
THAN PURCHASE; TO AMEND SECTION 61-6-2890, RELATING
TO STORAGE OF ALCOHOLIC LIQUORS IN A WAREHOUSE, SO
AS TO DELETE THE REQUIREMENT OF A BOND; TO REPEAL
SECTIONS 61-6-300, 61-6-310, 61-6-320, 61-6-330, 61-6-340, AND
61-6-350, ALL RELATING TO LICENSE BONDS FOR
MANUFACTURERS, RETAILERS, AND WHOLESALERS OF
ALCOHOLIC BEVERAGES; TO AMEND SECTION 33-44-801,
RELATING TO THE DISSOLUTION OF A LIMITED LIABILITY
COMPANY, SO AS TO DELETE THE DISSOCIATION OF A
MEMBER AS A DISSOLVING EVENT; TO AMEND SECTION
33-44-103, RELATING TO THE OPERATING AGREEMENT OF A
LIMITED LIABILITY COMPANY, AND SECTION 33-44-404,
RELATING TO MANAGEMENT OF A LIMITED LIABILITY
COMPANY, BOTH SO AS TO REFLECT THE DELETION OF THE
DISSOCIATION OF A MEMBER AS A DISSOLVING EVENT; TO
AMEND SECTION 33-44-503, RELATING TO RIGHTS OF A
TRANSFEREE OF AN INTEREST IN A LIMITED LIABILITY
COMPANY, SO AS TO RENUMBER A CROSS REFERENCE TO
SECTION 33-44-801; TO AMEND SECTION 33-44-603, RELATING
TO THE EFFECT OF A MEMBER'S DISSOCIATION FROM A
LIMITED LIABILITY COMPANY, AND SECTION 33-44-701,
RELATING TO COMPANY PURCHASE OF AN INTEREST IN A
LIMITED LIABILITY COMPANY, BOTH SO AS TO REFLECT THE
DELETION OF THE DISSOCIATION OF A MEMBER AS A
DISSOLVING EVENT; TO AMEND SECTION 12-37-2810,
RELATING TO MOTOR CARRIERS FOR PURPOSES OF
ASSESSMENT OF PROPERTY TAXES, SO AS TO INCLUDE
"BUS" IN THE DEFINITIONS OF A MOTOR VEHICLE
OF MOTOR CARRIER; TO AMEND SECTION 12-37-2820, AS
AMENDED, RELATING TO THE VALUATION OF MOTOR
VEHICLES OF MOTOR CARRIERS, SO AS TO DEFINE
"GROSS CAPITALIZED COST"; TO AMEND SECTION
12-37-2830, AS AMENDED, RELATING TO THE VALUATION OF
MOTOR VEHICLES OF MOTOR CARRIERS, SO AS TO DELETE
REFERENCE TO THE DEPARTMENT OF REVENUE; TO AMEND
SECTION 12-37-2840, AS AMENDED, RELATING TO THE
FAILURE OF A MOTOR CARRIER TO FILE AN ANNUAL
PROPERTY TAX RETURN, SO AS TO PROVIDE FOR A PROPOSED
ASSESSMENT BY THE DEPARTMENT OF REVENUE WHICH
ASSUMES ALL MILEAGE WAS WITHIN THIS STATE; TO AMEND
SECTION 12-37-2850, AS AMENDED, RELATING TO THE
ESTABLISHMENT OF A STATEWIDE AVERAGE MILLAGE FOR
ASSESSMENT OF TAXES ON MOTOR VEHICLES OF MOTOR
CARRIERS, SO AS TO REQUIRE THE PUBLISHING OF THE
AVERAGE MILLAGE BY JUNE 1; TO AMEND SECTION 4-10-40,
AS AMENDED, RELATING TO THE CREDIT OF REVENUES FROM
THE PROPERTY TAX CREDIT FUND TO PROPERTY TAX
LIABILITY, SO AS TO INCLUDE LIABILITY FOR FEES IN LIEU OF
TAXES ARISING OUT OF LOCATION IN A MULTI-COUNTY
INDUSTRIAL OR BUSINESS PARK; TO AMEND SECTION
12-14-40, RELATING TO THE DESIGNATION OF AN ECONOMIC
IMPACT ZONE, SO AS TO DELETE THE FIFTEEN-YEAR
"SUNSET" ON SUCH ZONES; TO AMEND SECTION
12-14-60, AS AMENDED, RELATING TO THE STATE INCOME TAX
INVESTMENT CREDIT ALLOWED FOR CERTAIN INVESTMENTS
IN ECONOMIC IMPACT ZONES, SO AS TO DELETE THE FIVE
PERCENT CREDIT AND REPLACE IT WITH A GRADUATED
PERCENTAGE FROM ONE TO FIVE PERCENT BASED ON THE
INVESTMENT'S USEFUL LIFE AND TO LIMIT THE TOTAL
CREDIT ALLOWED A UTILITY FOR INVESTMENTS MADE
AFTER JUNE 30, 1998, TO FIVE MILLION DOLLARS, LIMIT ALL
CREDITS FOR INVESTMENTS MADE BEFORE JULY 1, 1998, TO
NO MORE THAN FIFTY PERCENT OF THE TAX LIABILITY, AND
TO MAKE OTHER TECHNICAL CHANGES; AND TO PROVIDE
VARIOUS EFFECTIVE DATES.
Be it enacted by the General Assembly of the State of South Carolina:
Exemptions from tax on motor fuel
SECTION 1. Section 12-28-710(9) and (12) of the 1976 Code, as
last amended by Act 461 of 1996, is further amended to read:
"(9) kerosene and diesel fuel used as heating oil or in trains
or used in equipment not licensed as a motor vehicle other than as
expressly exempted under another provision;
(12) taxable motor fuel used in state-owned school buses and in
state-owned administration and service vehicles used in the pupil
transportation program and transportation of students by state-funded
institutions of higher learning;"
Penalties
SECTION 2. Section 12-28-1730(F) of the 1976 Code, as added
by Act 136 of 1995, is amended to read:
"(F) The department shall impose a civil penalty in an amount
equivalent to that imposed by Section 6715 of the Internal Revenue Code
on the operator of a vehicle who knowingly violates the prohibition on the
sale or use of dyed fuel upon public highways of this State."
Repeal
SECTION 3. Sections 12-31-220 and 12-31-250 of the 1976
Code are repealed.
Uncollectible property tax, assessment, or penalty; rollback
millage; assessment ratio; "assessment of the tax"; written
objection to assessment; objection to denial of homestead exemption;
repeal
SECTION 4. A. Article 1, Chapter 49, Title 12 of the 1976
Code is amended by adding:
"Section 12-49-85. (A) If the person officially charged with
the collection of ad valorem taxes on real or personal property for a
county determines that the tax, assessment, or penalty is uncollectible, he
shall record that determination and the reason for it on a list he maintains.
At least annually he shall provide the list to the county auditor, who may
remove a particular determination from the duplicate list, but the auditor
shall record the removal and the reason for it as prescribed by the
Comptroller General.
(B) The reasons for removal of a tax, assessment, or penalty from
the duplicate list may include, but are not limited to:
(1) insufficient property of the person charged with the
uncollectible tax, assessment, or penalty to collect it;
(2) collection of the tax, assessment, or penalty has been enjoined
by a competent court.
(C) Subject to the provisions of Section 12-54-85(E), the auditor
and the person officially charged with the collection of ad valorem taxes
shall review the list annually. If it is later determined that the tax,
assessment, or penalty was improperly removed from the duplicate list or
is collectible, it must be returned to the duplicate list for collection, with
all penalties and interest accruing."
B. Section 12-37-251(E) of the 1976 Code, as last amended by Act
401 of 1996, is further amended to read:
"(E) Rollback millage is calculated by dividing the prior year
property tax revenues by the adjusted total assessed value applicable in
the year the values derived from a countywide equalization and
reassessment program are implemented. This amount of assessed value
must be adjusted by deducting assessments added for property or
improvements not previously taxed, for new construction, and for
renovation of existing structures."
C. Section 12-43-220(c) of the 1976 Code, as last amended by Act
431 of 1996, is further amended by adding:
"(5) To qualify for the four percent assessment ratio, the
owner-occupant of a legal residence that is being purchased under a
contract for sale or a bond for title must record the contract for sale or the
bond for title in the office of the register of mesne conveyances or the
clerk of court in those counties where the office of the register of mesne
conveyances has been abolished.
For purposes of this subsection, a contract for sale or a bond for title
is the sale of real property by a seller, who finances the sale and retains
title to the property solely as security for the debt."
D. Section 12-54-85(E) of the 1976 Code is amended to read:
"(E) A tax may not be collected by levy, warrant for distraint,
or proceedings in court, unless the:
(1) levy, warrant for distraint, or proceedings in court were begun
within ten years after the assessment of the tax;
(2) taxpayer has agreed to extend this period; or
(3) running of this period is suspended in accordance with this
section.
For property tax purposes, the 'assessment of the tax' occurs on the
later of the last day the tax may be paid without penalty or the date of the
tax notice."
E. Section 12-60-2520(B) of the 1976 Code, as added by Act 60 of
1995, is amended to read:
"(B) If, upon examination of the property taxpayer's written
objection, the county assessor agrees with the taxpayer, the county
assessor must correct the error. If, upon the examination, the county
assessor does not agree with the taxpayer, the assessor shall schedule a
conference with the property taxpayer within thirty days of the date of the
request for a meeting or as soon after that as practical. If the matter is not
resolved at the conference, the assessor shall advise the property taxpayer
of the right to protest and provide the taxpayer a form on which to file the
protest. The property taxpayer has thirty days after the date of the
conference to file a written protest with the assessor. The protest must
contain:
(1) the name, address, and telephone number of the property
taxpayer;
(2) a description of the property in issue;
(3) a statement of facts supporting the taxpayer's position;
(4) a statement outlining the reasons for the appeal, including any
law or other authority, upon which the taxpayer relies; and
(5) the value and classification which the property taxpayer
considers the fair market value, special use value, if applicable, and the
proper classification.
The taxpayer may use the form prepared by the department, but use
of the form is not mandatory."
F. Section 12-60-2910(A) of the 1976 Code, as last amended by Act
431 of 1996, is further amended to read:
"(A) A property taxpayer may object to a personal property
tax assessment or a denial of a homestead exemption made by the county
auditor by requesting, in writing, to meet with the auditor at any time on
or before the later of:
(1) thirty days after the tax notice is mailed; or
(2) last day the tax levied upon the assessment may be timely
paid."
G. Sections 12-43-225 and 12-49-80 of the 1976 Code are repealed.
H. Notwithstanding the general effective date of this act, this section
is effective for property tax years beginning after 1998.
Issuance of licenses and permits; temporary licenses for
transferees of licensed businesses; warehouse storage; repeal
SECTION 5. A. Section 61-2-100 of the 1976 Code, as added
by Act 415 of 1996, is amended to read:
"Section 61-2-100. (A) The department may issue licenses
and permits authorized under this title to qualifying persons. Licenses and
permits may be issued only to the person who is the owner of the
business seeking the permit or license.
(B) The department shall initiate action to revoke any permit or
license that is issued to any person who is not the owner of the licensed
business or when the licensed individual or an individual principal of the
licensed business is under twenty-one years of age.
(C) If application is made for a license or permit under this title by
a person other than an individual, all principals are deemed to be the
applicant under Section 61-2-160.
(D) The department may not issue a license or permit under this title
to any person unless the person and all principals are of good moral
character.
(E) The department may not issue a license or permit under this title
to an individual under twenty-one years of age or a business with an
individual principal under twenty-one years of age.
(F) Businesses licensed or permitted by the department under this
title must designate with the department an agent and mailing address for
service of notices. Any required notice may be given by handing it to the
agent in person or leaving the notice at his office with a clerk or other
person in charge of the office, or if there is no one in charge, leaving it in
a conspicuous place in the office; or, if the office is closed or the person
to be served has no office, leaving a copy at his dwelling place with a
person of suitable age and discretion residing in the dwelling place; or by
serving it on an employee at the licensed place of business; or by mailing
it by first class mail to the agent at his last known address, postage
prepaid. No person may act as agent for more than one business entity
unless the person has an ownership interest in the business entities.
(G) Nothing in this section may be construed to alter the effect of
Sections 61-6-140 and 61-6-150.
(H) As used in this title and unless otherwise required by the
context:
(1) 'Person' includes an individual, a trust, estate, partnership,
limited liability company, receiver, association, company, corporation, or
any other group.
(2) 'Principal' of a business or entity means a person who is
described in any one or more of the following terms:
(a) an officer of the business or entity which owns the
business;
(b) a partner other than a limited partner who cannot exercise
any management control;
(c) a manager of the limited liability company which is
managed by managers;
(d) a member of the limited liability company which is not
managed by managers;
(e) a fiduciary, including personal representatives, trustees,
guardians, committees, and receivers, who manage, hold, or control title
to or who is otherwise in direct or indirect control of the business;
(f) a person who owns twenty-five percent or more of the
combined voting power of the business or entity;
(g) a person who owns twenty-five percent or more of the
value of the business entity; or
(h) an employee who has day-to-day operational management
responsibilities for the business or entity.
(i) a license or permit may be issued to a publicly held
corporation, which is deemed the applicant under Section 61-2-160 and
the corporation shall designate an officer or other employee of good moral
character, over the age of twenty-one and a resident of this State in whose
name the permit or license must be held on behalf of the corporation and
the corporation may substitute an officer or employee if the individual is
of good moral character, over the age of twenty-one, and a resident of this
State, and upon notice in writing of the substitution to the
department."
B. Section 61-6-505 of the 1976 Code, as added by Act 458 of 1996,
is amended to read:
"Section 61-6-505. (A) A person who purchases or acquires
by lease, inheritance, divorce decree, eviction, or otherwise a retail
business which sells alcoholic beverages from a holder of a retail liquor
license at the business, upon initiating the application process for a
permanent retail liquor license, may be issued a temporary retail liquor
license by the department at the time of the purchase or acquisition if the
location for which the temporary license is sought is not considered by the
department to be a public nuisance and:
(1) the applicant currently holds a valid retail liquor license; or
(2) the applicant has had a criminal history background check
conducted by the State Law Enforcement Division within the past thirty
days.
(B) A temporary license issued pursuant to subsection (A) is valid
until a permanent license is approved or disapproved by the department,
but in no case is it valid for more than one hundred twenty days from the
date of issuance.
(C) Notwithstanding subsection (B), the department may revoke a
temporary license if the applicant fails to pursue the permanent license in
a timely manner, as set forth by the department by regulation.
(D) The department shall collect a fee of twenty-five dollars for each
temporary license sought. The funds generated by this fee must be
deposited in the general fund of the State."
C. Section 61-6-2005 of the 1976 Code, as added by Act 458 of 1996,
is amended to read:
"Section 61-6-2005. (A) A person who purchases or acquires
by lease, inheritance, divorce decree, eviction, or otherwise a retail
business which sells alcoholic liquors in sealed containers of two ounces
or less from a holder of a license to sell alcoholic liquors in sealed
containers of two ounces or less at the business, upon initiating the
application process for a permanent license, may be issued a temporary
license by the department at the time of the purchase or acquisition if the
location for which the temporary license is sought is not considered by the
department to be a public nuisance and:
(1) the applicant currently holds a valid license to sell alcoholic
liquors in sealed containers of two ounces or less; or
(2) the applicant has had a criminal history background check
conducted by the State Law Enforcement Division within the past thirty
days.
(B) A temporary license issued pursuant to subsection (A) is valid
until a permanent license is approved or disapproved by the department,
but in no case is it valid for more than one hundred twenty days from the
date of issuance.
(C) Notwithstanding subsection (B), the department may revoke a
temporary license if the applicant fails to pursue the permanent license in
a timely manner, as set forth by the department by regulation.
(D) The department shall collect a fee of twenty-five dollars for each
temporary license sought. The funds generated by this fee must be
deposited in the general fund of the State."
D. Section 61-4-210 of the 1976 Code, as added by Act 415 of 1996,
is amended to read:
"Section 61-4-210. (A) A person who purchases or acquires
by lease, inheritance, divorce decree, eviction, or otherwise a retail
business which sells beer or wine from a holder of a retail permit to sell
beer or wine at the business, upon initiating the application process for a
biennial retail beer or beer and wine permit, may be issued a temporary
retail beer or beer and wine permit by the department at the time of the
purchase or acquisition if the location for which the temporary permit is
sought is not considered by the department to be a public nuisance and:
(1) the applicant currently holds a valid beer or beer and wine
permit; or
(2) the applicant has had a criminal history background check
conducted by the division within the past thirty days.
(B) A temporary beer or beer and wine permit issued pursuant to
subsection (A) is valid until a biennial retail beer or beer and wine permit
is approved or disapproved by the department, but in no case is it valid for
more than one hundred twenty days from the date of issuance.
(C) Notwithstanding subsection (B), the department may revoke a
temporary retail beer or beer and wine permit if the applicant fails to
pursue the biennial retail beer or beer and wine permit in a timely manner,
as set forth by regulation of the department.
(D) The department shall collect a fee of twenty-five dollars for each
temporary beer or beer and wine permit. The funds generated by this fee
must be deposited in the general fund of the State."
E. Section 61-6-2890 of the 1976 Code, as added by Act 415 of 1996,
is amended to read:
"Section 61-6-2890. (A) A registered producer may not store
alcoholic liquors in a warehouse of the registered producer unless licensed
by the department. Application for license to operate a warehouse must
be filed on forms prescribed by the department.
(B) When an application for a warehouse license is submitted, a fee
of four hundred dollars must be paid to the department. Where
application is made for a warehouse license on or after March 1, the fee
is one hundred fifty dollars. A warehouse license is valid from the date
of issue until the second August 31 after the issuance of the
license."
F. Sections 61-6-300, 61-6-310, 61-6-320, 61-6-330, 61-6-340, and
61-6-350 of the 1976 Code are repealed.
G. Subsection A. of this section takes effect upon approval by the
Governor and applies for applications pending on that date and for
applications filed on or after that date. The remaining provisions of this
section take effect July 1, 1998.
Dissolution of a limited liability company
SECTION 6. Section 33-44-801 of the 1976 Code, as added by
Act 343 of 1996, is amended to read:
"Section 33-44-801. A limited liability company is dissolved,
and its business must be wound up, upon the occurrence of any of the
following events:
(1) an event specified in the operating agreement;
(2) consent of the number or percentage of members specified in the
operating agreement;
(3) an event that makes it unlawful for all or substantially all of the
business of the company to be continued, but a cure of illegality within
ninety days after notice to the company of the event is effective
retroactively to the date of the event for purposes of this section;
(4) on application by a member or a dissociated member, upon
entry of a judicial decree that:
(a) the economic purpose of the company is likely to be
unreasonably frustrated;
(b) another member has engaged in conduct relating to the
company's business that makes it not reasonably practicable to carry on
the company's business with that member;
(c) it is not otherwise reasonably practicable to carry on the
company's business in conformity with the articles of organization and the
operating agreement;
(d) the company failed to purchase the petitioner's distributional
interest as required by Section 33-44-701; or
(e) the managers or members in control of the company have
acted, are acting, or will act in a manner that is illegal, oppressive,
fraudulent, or unfairly prejudicial to the petitioner;
(5) on application by a transferee of a member's interest, a judicial
determination that it is equitable to wind up the company's business:
(a) after the expiration of the specified term, if the company was
for a specified term at the time the applicant became a transferee by way
of member dissociation, transfer, or entry of a charging order that gave
rise to the transfer; or
(b) at any time, if the company existed at will at the time the
applicant became a transferee by way of member dissociation, transfer, or
entry of a charging order that gave rise to the transfer."
Winding up of the business of a limited liability company
SECTION 7. Section 33-44-103(b)(6) of the 1976 Code, as added
by Act 343 of 1996, is amended to read:
"(6) vary the requirement to wind up the limited liability
company's business in a case specified in Section 33-44-801(3) or (4);
or"
Management of limited liability company
SECTION 8. Section 33-44-404(a)(2) and (b)(2) of the 1976
Code, as added by Act 343 of 1996, is amended to read:
"(2) except as otherwise provided in subsection (c), any
matter relating to the business of the company may be decided by a
majority of the members."
"(2) except as otherwise provided in subsection (c), any
matter relating to the business of the company may be exclusively decided
by the manager or, if there is more than one manager, by a majority of the
managers; and"
Rights of transferee of an interest in a limited liability
company
SECTION 9. Section 33-44-503(e) of the 1976 Code, as added
by Act 343 of 1996, is amended to read:
"(e) A transferee who does not become a member shall:
(1) receive, in accordance with the transfer, distributions to which
the transferor would otherwise be entitled;
(2) receive, upon dissolution, and winding up of the limited
liability company's business:
(i) in accordance with the transfer, the net amount otherwise
distributable to the transferor;
(ii) a statement of account only from the date of the latest
statement of account agreed to by all the members;
(3) seek under Section 33-44-801(5) a judicial determination that
it is equitable to dissolve and wind up the company's business."
Effect of dissociation of a member of a limited liability
company
SECTION 10. Section 33-44-603 of the 1976 Code, as added by
Act 343 of 1996, is amended to read:
"Section 33-44-603. Upon a member's dissociation:
(1) in an at-will company, the company must cause the dissociated
member's distributional interest to be purchased under Article 7;
(2) in a term company, if the company:
(a) dissolves and winds up its business on or before the
expiration of its specified term, Article 8 applies to determine the
dissociated member's rights to distributions;
(b) does not dissolve and wind up its business on or before the
expiration of its specified term, the company must cause the dissociated
member's distributional interest to be purchased under Article 7 on the
date of the expiration of the term specified at the time of the member's
dissociation;
(3) the member's right to participate in the management and conduct
of the company's business terminates, except as otherwise provided in
Section 33-44-803, and the member ceases to be a member and is treated
the same as a transferee of a member;
(4) the member's duty of loyalty under Section 33-44-409(b)(3)
terminates; and
(5) the member's duty of loyalty under Section 33-44-409(b)(1) and
(2) and duty of care under Section 33-44-409(c) continue only with regard
to matters arising and events occurring before the member's dissociation,
unless the member participates in winding up the company's business
pursuant to Section 33-44-803."
Company purchase of a distributional interest in a limited liability
company
SECTION 11. Section 33-44-701(c) of the 1976 Code, as added
by Act 343 of 1996, is amended to read:
"(c) If the price and other terms of a purchase of a
distributional interest are fixed or are to be determined by the operating
agreement, the price and terms fixed or determined govern the purchase
unless the purchaser defaults. If a default occurs, the dissociated member
is entitled to commence a proceeding to have the company dissolved
pursuant to Section 33-44-801(4)(d)."
Definitions; valuation of motor vehicles of motor carriers; filing
of return; proposed assessment; average statewide millage
SECTION 12. A. Section 12-37-2810 of the 1976 Code, as
added by Act 461 of 1996, is amended to read:
"Section 12-37-2810. As used in this article, unless the
context requires otherwise:
(A) 'Motor carrier' means a person who owns, controls, operates,
manages, or leases a motor vehicle or bus for the transportation of
property or persons in intrastate or interstate commerce except for
scheduled intercity bus service. A motor carrier is defined further as
being a South Carolina-based International Registration Plan registrant or
owning or leasing real property within this State used directly in the
transportation of freight or persons.
(B) 'Motor vehicle' means a motor propelled vehicle used for the
transportation of property on a public highway with a gross vehicle
weight of greater than twenty-six thousand pounds.
(C) 'Highway' means all public roads, highways, streets, and ways
in this State, whether within a municipality or outside of a municipality.
(D) 'Person' means any individual, corporation, firm, partnership,
company or association, and includes a guardian, trustee, executor,
administrator, receiver, conservator, or a person acting in a fiduciary
capacity.
(E) 'Semitrailers' means every vehicle with or without motive
power, other than a pole trailer, designed for carrying property and for
being drawn by a motor vehicle and constructed so that a part of its
weight and of its load rests upon or is carried by another vehicle.
(F) 'Trailers' means every vehicle with or without motive power,
other than a pole trailer, designed for carrying property and for being
drawn by a motor vehicle and constructed so that no part of its weight
rests upon the towing vehicle.
(G) 'Bus' means every motor vehicle designed for carrying more
than sixteen passengers and used for the transportation of persons, for
compensation, other than a taxicab or intercity bus."
B. Section 12-37-2820 of the 1976 Code, as last amended by Act 125
of 1997, is further amended to read:
"Section 12-37-2820. (A) The Department of Revenue
annually shall assess, equalize, and apportion the valuation of all motor
vehicles of motor carriers. The valuation must be based on fair market
value for the motor vehicles and an assessment ratio of nine and one-half
percent as provided by Section 12-43-220(g). Fair market value is
determined by depreciating the gross capitalized cost of each motor
vehicle by an annual percentage depreciation allowance down to ten
percent of the cost as follows:
(1) Year One - .90
(2) Year Two - .80
(3) Year Three - .65
(4) Year Four - .50
(5) Year Five - .35
(6) Year Six - .25
(7) Year Seven - .20
(8) Year Eight - .15
(9) Year Nine - .10
(B) 'Gross capitalized cost', as used in this section, means the
original cost upon acquisition for income tax purposes, not to include
taxes, interest, or cab customizing."
C. Section 12-37-2830 of the 1976 Code, as last amended by Act 125
of 1997, is further amended to read:
"Section 12-37-2830. The value of a motor carrier's vehicles
subject to property taxes in this State must be determined based on the
ratio of total mileage operated within this State during the preceding
calendar year to the total mileage of its entire fleet operated within and
without this State during the same preceding calendar year."
D. Section 12-37-2840 of the 1976 Code, as last amended by Act 125
of 1997, is further amended to read:
"Section 12-37-2840. Motor carriers must file an annual
property tax return with the Department of Revenue no later than June 30
for the preceding calendar year and remit one-half or the entire tax due as
stated on the return. If the motor carrier fails to file its return, the
department shall issue a proposed assessment which assumes all mileage
was within this State. If one-half of the tax is remitted on or before June
30, the remaining one-half of the tax due must be paid to the Department
of Revenue on or before December 31. If the motor carrier fails to remit
tax due pursuant to this section, the department shall issue a notice to the
motor carrier demanding payment for the entire amount shown to be due.
If the motor carrier fails to remit the tax due within thirty days of receipt
of the notice, the Department of Revenue shall notify the Department of
Public Safety, which may not renew the registrations of the motor
vehicles required by this article to be on the property tax return. A
twenty-five percent penalty must be added to the property tax due and the
tax and penalty must be paid in full by cashier's check, money order, or
cash. The penalty required by this section is instead of all other penalties
and interest required by law.
Upon payment in full, the Department of Revenue shall notify the
Department of Public Safety which then shall allow for registrations of
the motor vehicles."
E. Section 12-37-2850 of the 1976 Code, as last amended by Act 125
of 1997, is further amended to read:
"Section 12-37-2850. The Department of Revenue shall
assess annually the taxes due based on the value determined in Section
12-28-2820 and an average millage for all purposes statewide for the
preceding calendar year and shall publish the average millage for the
preceding year by June 1 of each year. The taxes assessed must be paid
to the Department of Revenue no later than December 31 of each year and
may be made in two equal installments. Distribution of the taxes paid
must be made by the State Treasurer's Office based on the distribution
formula contained in Section 12-37-2870."
F. This section takes effect upon approval by the Governor for
calendar years beginning after December 31, 1997.
Distribution of revenue allocated to Property Tax Credit
Fund
SECTION 13. Section 4-10-40(B) of the 1976 Code, as last
amended by Act 109 of 1991, is further amended to read:
"(B)(1) All of the revenue received by a county and
municipality from the Property Tax Credit Fund must be used to provide
a credit against the property tax liability of taxpayers in the county and
municipality in an amount determined by multiplying the appraised value
of the taxpayer's taxable property by a fraction in which the numerator is
the total estimated revenue received by the county or municipality from
the Property Tax Credit Fund during the applicable fiscal year of the
political subdivision, and the denominator is the total of the appraised
value of taxable property in the county or municipality as of January 1 of
the applicable taxable year.
(2) For purposes of this chapter:
(a) property tax liability includes liability to pay fees in lieu of
property taxes;
(b) taxable property includes exempt property for which the
owner must pay fees in lieu of property taxes; and
(c) reference to liability for fees in lieu of tax applies to fees
arising pursuant to Section 4-1-170 in connection with location in a
multi-county industrial or business park as provided in Section 13 of
Article VIII of the Constitution of the State of South Carolina."
Economic impact zone; designation; investment tax credit
SECTION 14. A. Section 12-14-40 of the 1976 Code, as added
by Act 25 of 1995, is amended to read:
"Section 12-14-40. (A) The designation of an area as an
economic impact zone must be made by the State Budget and Control
Board.
(B) A designation may be revoked by the General Assembly only
after a hearing on the record in which officials of the county or
municipality involved may participate."
B. Section 12-14-60 of the 1976 Code, as amended by Act 151 of
1997, is further amended to read:
"Section 12-14-60. (A)(1) There is allowed an economic
impact zone investment tax credit against the tax imposed pursuant to
Chapter 6 of this title for any taxable year in which the taxpayer places in
service economic impact zone qualified manufacturing and productive
equipment property.
(2) The amount of the credit allowed by this section is equal to
the aggregate of:
three-year property one percent of total aggregate bases
for all three-year property that
qualifies;
five-year property two percent of total aggregate bases
for all five-year property that
qualifies;
seven-year property three percent of total aggregate bases
for all seven-year property that
qualifies;
ten-year property four percent of total aggregate bases
for all ten-year property that qualifies;
fifteen-year property five percent of total aggregate bases for
or greater all fifteen-year or greater property that
qualifies.
For purposes of this section, whether property is three-year property,
five-year property, seven-year property, ten-year property, or fifteen-year
property is determined based on the applicable recovery period for such
property under Section 168(e) of the Internal Revenue Code.
(B) For purposes of this section:
(1) 'economic impact zone qualified manufacturing and
productive equipment property' means any property:
(a) which is used as an integral part of manufacturing or
production, or used as an integral part of extraction of or furnishing
transportation, communications, electrical energy, gas, water, or sewage
disposal services in the economic impact zone;
(b) which is tangible property to which Section 168 of the
Internal Revenue Code applies;
(c) which is Section 1245 property (as defined in Section
1245(a)(3)of the Internal Revenue Code); and
(d)(i) the construction, reconstruction, or erection of which is
completed by the taxpayer in the economic impact zone; or
(ii) which is acquired by the taxpayer if the original use of
such property commences with the taxpayer inside the economic impact
zone.
(2) In the case of any computer software which is used to control
or monitor a manufacturing or production process inside the economic
impact zone and with respect to which depreciation (or amortization in
lieu of depreciation) is allowable, the software must be treated as qualified
manufacturing and productive equipment property.
(C) This section does not apply to any property to which the other
tax credits would apply unless the taxpayer elects to waive the application
of the other credits to the property.
(D) Unused credit allowed pursuant to this section may be carried
forward for ten years from the close of the tax year in which the credit
was earned.
(E) If during any taxable year and before the end of applicable
recovery period for such property as determined under Section 168(e) of
the Internal Revenue Code, the taxpayer disposes of or removes from the
economic impact zone, economic impact zone qualified manufacturing
and productive equipment property, then the tax due under Chapter 6 by
the taxpayer for the current taxable year must be increased by an amount
of any credit claimed in prior years with respect to such property
determined by assuming the credit is earned ratably over the useful life of
the property and recapturing pro rata the unearned portion of the credit.
(F) For South Carolina income tax purposes, the basis of the
economic impact zone qualified manufacturing and productive equipment
property must be reduced by the amount of any credit claimed with
respect to the property. If a taxpayer is required to recapture the
economic impact zone investment tax credit in accordance with
subsection (E), the taxpayer may increase the basis of the property by the
amount of any basis reduction attributable with claiming the economic
impact zone investment tax credit in prior years. The basis must be
increased in the year in which the credit is recaptured.
(G) Credits claimed under this section for taxable years beginning
after 1997 for investments made before July 1, 1998, may not reduce a
taxpayer's state income tax liability by more than fifty percent.
(H) The credit allowed by this section for investments made after
June 30, 1998, is limited to no more than five million dollars for an entity
subject to the license tax as provided in Section 12-20-100.
(I) Notwithstanding any amendments to Section 12-14-60 of the
1976 Code enacted in the 1998 session of the General Assembly reducing
the percentage amount of the economic impact zone investment tax credit
or otherwise reducing the amount of the credit allowed, in the case of
investments at a project operated by a company pursuant to a
revitalization agreement entered into between the company and the South
Carolina Advisory Council for Economic Development effective on or
before July 1, 1996, the provisions of Section 12-14-60 in existence prior
to the 1998 amendment shall apply."
Time effective
SECTION 15. This act takes effect upon approval by the
Governor.
Approved the 31st day of August, 1998.
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