H 3594 General Bill, By Rodgers, Bowers, Gilham, Hosey, Rivers, G.M. Smith and 
J. Young
 A BILL TO AMEND SECTION 12-36-2110, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO MAXIMUM SALES TAX ON CERTAIN PURCHASES AND LEASES OF DESIGNATED
 PERSONAL PROPERTY, SO AS TO REQUIRE PAYMENT OF SALES TAX ON A LEASED MOTOR
 VEHICLE ONLY IF THE MOTOR VEHICLE IS PURCHASED AT THE END OR DURING THE TERM
 OF THE LEASE, AND TO PROVIDE FOR CALCULATION OF THE AMOUNT OF SALES TAX DUE
 BASED ON THE BUY-OUT AMOUNT OF THE LEASE, UP TO A MAXIMUM OF THREE HUNDRED
 DOLLARS.

   02/15/01  House  Introduced and read first time HJ-43
   02/15/01  House  Referred to Committee on Ways and Means HJ-44

TO AMEND SECTION 12-36-2110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MAXIMUM SALES TAX ON CERTAIN PURCHASES AND LEASES OF DESIGNATED PERSONAL PROPERTY, SO AS TO REQUIRE PAYMENT OF SALES TAX ON A LEASED MOTOR VEHICLE ONLY IF THE MOTOR VEHICLE IS PURCHASED AT THE END OR DURING THE TERM OF THE LEASE, AND TO PROVIDE FOR CALCULATION OF THE AMOUNT OF SALES TAX DUE BASED ON THE BUY-OUT AMOUNT OF THE LEASE, UP TO A MAXIMUM OF THREE HUNDRED DOLLARS.

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 does not prohibits prohibit 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; except that a sales tax is due in connection with the lease of a motor vehicle only if the motor vehicle is purchased at the end or during the term of the lease. The sales tax due at the time of purchase is determined at the total tax rate required by law as applied to the buy-out amount of the lease, up to the maximum amount of three hundred dollars."

SECTION    2.    This act takes effect upon approval by the Governor and applies to motor vehicle leases entered into after that date.