H 3846 General Bill, By Sharpe, Delleney, Rhoad, Riser, Sheheen, R. Smith, Webb and 
Witherspoon
 A BILL TO AMEND SECTION 12-36-2110, AS AMENDED, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO THE MAXIMUM TAX ON THE SALE OR LEASE OF CERTAIN
 ITEMS, SO AS TO ESTABLISH A CAP OF THREE HUNDRED DOLLARS ON THE SALES TAX
 IMPOSED ON THE SALE OF LIVESTOCK TRAILERS.

   04/09/97  House  Introduced and read first time HJ-17
   04/09/97  House  Referred to Committee on Ways and Means HJ-17
   04/24/97  House  Committee report: Favorable Ways and Means HJ-5
   04/29/97  House  Read second time HJ-80
   04/30/97  House  Read third time and sent to Senate HJ-26
   05/01/97  Senate Introduced and read first time SJ-13
   05/01/97  Senate Referred to Committee on Finance SJ-13

COMMITTEE REPORT

April 24, 1997

H. 3846

Introduced by Reps. Sharpe, R. Smith, Rhoad, Sheheen, Webb, Witherspoon, Delleney and Riser

S. Printed 4/24/97--H.

Read the first time April 9, 1997.

To whom was referred a Bill (H. 3846), to amend Section 12-36-2110, as amended, Code of Laws of South Carolina, 1976, relating to the maximum tax on the sale or lease of certain items, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

HENRY E. BROWN, JR., for Committee.

This bill would reduce sales tax revenue by approximately $25,000 per year. Of this total, $20,000 would be a reduction in general fund revenue and $5,000 would be a reduction in EIA revenue.

From information provided by trailer dealers, we estimate that, at maximum, there is approximately $500,000 of livestock trailer sales above the proposed $6,000 cap threshold per year.

Approved By:

Burnet R. Maybank, III

S.C. Department of Revenue

TO AMEND SECTION 12-36-2110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MAXIMUM TAX ON THE SALE OR LEASE OF CERTAIN ITEMS, SO AS TO ESTABLISH A CAP OF THREE HUNDRED DOLLARS ON THE SALES TAX IMPOSED ON THE SALE OF LIVESTOCK TRAILERS.

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 Act 431 of 1996, is further 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, and livestock trailers, regardless of the type of vehicle that pulls the horse trailer or livestock trailer, 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."

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