H 3920 General Bill, By W.D. Keyserling, Whatley and L.S. Whipper

Similar(S 719)
 A Bill to amend Section 12-36-2110, as amended, Code of Laws of South
 Carolina, 1976, relating to the maximum sales tax on motor vehicles and other
 property, so as to increase the maximum tax, impose special caps for fuel
 efficient motor vehicles, and to distribute the additional revenue to counties
 for property tax relief.

   04/04/95  House  Introduced and read first time HJ-7
   04/04/95  House  Referred to Committee on Ways and Means HJ-8

A BILL

TO AMEND SECTION 12-36-2110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MAXIMUM SALES TAX ON MOTOR VEHICLES AND OTHER PROPERTY, SO AS TO INCREASE THE MAXIMUM TAX, IMPOSE SPECIAL CAPS FOR FUEL EFFICIENT MOTOR VEHICLES, AND TO DISTRIBUTE THE ADDITIONAL REVENUE TO COUNTIES FOR PROPERTY TAX RELIEF.

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

SECTION 1. Section 12-36-2110(A) of the 1976 Code, as last amended by Section 92, Part II, Act 497 of 1994, is further amended to read:

"(A) Notwithstanding the rates of tax imposed by this chapter, the maximum tax rate imposed by this chapter is three hundred dollars four percent on the first six thousand dollars and six percent on amounts in excess of six thousand dollars, but no more than seven hundred fifty dollars, for each sale or lease made or executed after June 30, 1984 1995, or lease executed after August 31, 1985, of each:

(1) aircraft, including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft;

(2) motor vehicle;

(3) motorcycle;

(4) boat;

(5) trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, and horse trailers but not including house trailers or campers as defined in Section 56-3-710;

(6) recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel; or

(7) self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower.

In the case of a lease, the total tax rate required by law applies on each payment until the total tax paid equals three hundred dollars the total tax due. Nothing in this section prohibits a taxpayer from paying the total tax due at the time of execution of the lease, or with any payment under the lease. To qualify for the tax limitation provided by this section, a lease must specifically state the term of, and remain in force for, a period in excess of ninety continuous days.

Notwithstanding the amounts due pursuant to this subsection, in the case of motor vehicles with a fuel efficiency rate of between thirty-five and thirty-nine miles a gallon, the maximum tax is six hundred dollars and in the case of motor vehicles with a fuel efficiency rate of forty miles or more a gallon, the maximum tax is four hundred fifty dollars. If a motor vehicle is capable of operating primarily on natural gas, propane, electricity, or a fuel consisting of at least seventy percent ethanol or methanol, the maximum tax is three hundred dollars.

Revenue from items subject to the maximum tax pursuant to this subsection in excess of such revenues for fiscal year 1994-95 must be remitted to counties on a per capita basis and used to reduce residential property taxes. For purposes of this subsection, `fuel efficiency rate' means the estimated highway miles per gallon for a vehicle as listed in the Fuel economy Guide--EPA Fuel Economy Estimates, published by the United States Environmental Protection Agency."

SECTION 2. This act takes effect July 1, 1995