H*3282 Session 106 (1985-1986)
H*3282(Rat #0344, Act #0329 of 1986) General Bill, By House Ways and Means
Similar(H 2695)
A Bill to permit taxpayers to defer payment of the State Income Tax on taxable
income attributable to the increase in gross income from foreign trading
receipts, to provide terms for repayment of the deferred taxes, to define
terms relating to the deferral, and to provide exceptions.
01/15/86 House Introduced, read first time, placed on calendar
without reference HJ-112
01/21/86 House Amended HJ-204
01/21/86 House Read second time HJ-212
01/22/86 House Read third time and sent to Senate HJ-236
01/23/86 Senate Introduced and read first time SJ-237
01/23/86 Senate Referred to Committee on Finance SJ-237
02/05/86 Senate Committee report: Favorable Finance SJ-456
02/06/86 Senate Read second time SJ-517
02/06/86 Senate Ordered to third reading with notice of
amendments SJ-517
02/12/86 Senate Read third time and enrolled SJ-555
02/18/86 Ratified R 344
02/20/86 Signed By Governor
02/20/86 Effective date 02/20/86
02/20/86 Act No. 329
03/06/86 Copies available
(A329, R344, H3282)
AN ACT TO PERMIT TAXPAYERS TO DEFER PAYMENT OF THE STATE INCOME TAX ON TAXABLE
INCOME ATTRIBUTABLE TO THE INCREASE IN GROSS INCOME FROM FOREIGN TRADING
RECEIPTS, TO PROVIDE TERMS FOR REPAYMENT OF THE DEFERRED TAXES, TO DEFINE TERMS
RELATING TO THE DEFERRAL, AND TO PROVIDE EXCEPTIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Definitions
SECTION 1. For purposes of this act:
(A) "Export property" means property manufactured, produced, grown,
or extracted to which value is added in this State for direct use, consumption,
or disposition outside the United States.
(B) "Foreign trading receipts" means receipts from invoices issued
by a seller directly to an unrelated purchaser outside the United States from:
(1) The sale, exchange, or other disposition of export property outside the
United States.
(2) The lease or rental of export property that is used by the lessee
outside the United States.
(3) The performance of services that are related and subsidiary to the sale,
exchange, lease, rental, or other disposition of export property outside the
United States by the South Carolina taxpayer, including but not limited to
maintenance and training services.
(4) The performance of engineering, architectural, or consulting services
for
projects located outside the United States.
(C) "Increase in gross income from foreign trading receipts" is the
amount by which the gross income from foreign trading receipts during the
applicable tax year exceeds a base amount equal to the average of annual gross
income from foreign trading receipts over the three taxable years prior to the
applicable taxable year.
(D) "Base period T-bill rate" means the annual rate of interest
determined by the commission to be equivalent to the average investment yield of
United States Treasury bills with maturities of fifty-two weeks which were
auctioned during the one-year period ending on September thirtieth of the
calendar year ending with or of the most recent calendar year ending before the
close of the tax year of the taxpayer.
Payment may be deferred
SECTION 2. Payment of the tax otherwise due pursuant to Chapter 7 of Title 12
of the 1976 Code on taxable income attributable to the increase in gross income
from foreign trading receipts may be deferred until the taxpayer intentionally
ceases exporting property or after three taxable years in which the taxpayer has
no gross income from foreign trading receipts, whichever occurs first, if:
(A) the base amount defined in item (C) of Section 1 does not exceed five
million dollars, and
(B) the taxpayer pays interest annually on the aggregate deferred tax at the
base period T-bill rate. The interest is due on the date the taxpayer is
required to file the annual return required by Chapter 7 of Title 12 of the 1976
Code without regard to any extension, but no interest is due on amounts deferred
for less than an entire taxable year.
Failure to pay interest
SECTION 3. (A) If the taxpayer fails to pay interest as required in Section 2
all taxes deferred pursuant to this act are due and payable
on the due date of the unpaid interest and may
be collected as taxes are collected.
(B) All deferred tax payments attributable to a particular taxable year are
due and payable no later than the annual return filing date for the fifth taxable
year following the taxable year for which the payment of the tax was first
deferred. Failure to pay deferred taxes as required by this section renders the
taxpayer ineligible to defer payment of taxes for a subsequent tax year.
(C) A taxpayer may pay deferred taxes at an accelerated rate.
Limitation
SECTION 4. The limitation on assessment and collection of taxes in Section
12-7-2220 of the 1976 Code does not apply to the collection of taxes deferred
pursuant to this act.
Act does not apply
SECTION 5. This act does not apply to taxpayers who form Domestic International
Sales Corporations or Foreign Sales Corporations pursuant to the Internal Revenue
Code of 1954.
Provisions effective for taxable years
beginning after December 31, 1985
SECTION 6. The provisions of this act are effective for taxable years beginning
after December 31, 1985.
Time effective
SECTION 7. This act shall take effect upon approval by the Governor. |