S 0855 General Bill, By Waldrep, Alexander and Reese
 A BILL TO AMEND SECTION 12-36-2110, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE MAXIMUM TAX PAID ON THE SALE OR LEASE OF CERTAIN ITEMS, SO AS
 TO PROVIDE THAT IF A LESSEE PURCHASES A LEASED VEHICLE FROM THE LESSOR, PRIOR
 TO THE END OF THE TERM OF THE LEASE OR AT THE END OF THE TERM OF THE LEASE, NO
 TAX IS DUE ON THE SALE TO THE LESSEE IF THE TAX WAS PAID AT THE TIME OF
 INITIATION OF THE LEASE, WHETHER PAID BY THE LESSOR OR THE LESSEE.

   12/15/97  Senate Prefiled
   12/15/97  Senate Referred to Committee on Finance
   01/14/98  Senate Introduced and read first time SJ-12
   01/14/98  Senate Referred to Committee on Finance SJ-12

A BILL

TO AMEND SECTION 12-36-2110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MAXIMUM TAX PAID ON THE SALE OR LEASE OF CERTAIN ITEMS, SO AS TO PROVIDE THAT IF A LESSEE PURCHASES A LEASED VEHICLE FROM THE LESSOR, PRIOR TO THE END OF THE TERM OF THE LEASE OR AT THE END OF THE TERM OF THE LEASE, NO TAX IS DUE ON THE SALE TO THE LESSEE IF THE TAX WAS PAID AT THE TIME OF INITIATION OF THE LEASE, WHETHER PAID BY THE LESSOR OR THE LESSEE.

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

SECTION 1. Section 12-36-2110(A) of the 1976 Code is amended to read:

"(A) The maximum tax imposed by this chapter is three hundred dollars for each sale made after June 30, 1984, 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. 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 be in writing and specifically state the term of, and remain in force for, a period in excess of ninety continuous days.

If a lessee purchases a leased vehicle from the lessor, prior to the end of the term of the lease or at the end of the term of the lease, no tax is due on the sale to the lessee if the tax was paid at the time of initiation of the lease, whether paid by the lessor or the lessee."

SECTION 2. This act takes effect upon approval by the Governor.