S*0349(Rat #0126, Act #0074 of 2001)  General Bill, By Branton, Verdin, 
Leatherman, Peeler, McConnell, Giese, Grooms, Bauer, Waldrep, Wilson, Mescher, 
Ryberg, Fair, Hayes, Thomas and Martin
 A BILL TO AMEND SECTION 12-21-2420, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE RATE OF THE ADMISSIONS LICENSE TAX AND EXEMPTIONS FROM THE
 ADMISSIONS LICENSE TAX, SO AS TO PROVIDE THAT ENTRY INTO THE PIT AREA OF
 NASCAR SANCTIONED MOTOR SPEEDWAYS AND RACETRACKS FOR DRIVERS, CREW MEMBERS, OR
 CAR OWNERS IS EXEMPT FROM THE TAX WHEN THESE PERSONS HAVE BEEN CHARGED A
 PARTICIPATION FEE BY NASCAR OR THE RACETRACK, OR WHERE THERE IS A PER EVENT
 CHARGE FOR ENTRY, OR A COMBINATION OF THESE FEES AND CHARGES ARE IMPOSED, AND
 TO EXTEND THE CURRENT EXEMPTION FROM THE ADMISSIONS LICENSE TAX FOR PRIVATE
 PHYSICAL FITNESS CENTERS TO PUBLICLY OWNED PHYSICAL FITNESS CENTERS; TO AMEND
 THE 1976 CODE BY ADDING SECTION 6-4-35 SO AS TO ESTABLISH THE TOURISM
 EXPENDITURE REVIEW COMMITTEE FOR THE PURPOSE OF REVIEWING TOURISM?RELATED
 EXPENDITURES OF STATE ACCOMMODATIONS SALES TAX REVENUES OF MUNICIPALITIES AND
 COUNTIES AND TO PROVIDE FOR ITS MEMBERSHIP AND DUTIES, INCLUDING THE AUTHORITY
 TO ORDER A REDUCTION IN THE ACCOMMODATIONS TAX REVENUE ALLOCATION TO A
 MUNICIPALITY OR COUNTY TO REFLECT A QUESTIONABLE EXPENDITURE OR LATE FILED
 REPORTS; TO AMEND SECTIONS 6-4-5 AND 6-4-30, AS AMENDED, RELATING TO
 DEFINITIONS AND THE DUTIES OF THE DEPARTMENT OF REVENUE IN THE ALLOCATIONS OF
 ACCOMMODATIONS TAX REVENUES, SO AS TO ADD A DEFINITION FOR "TOURIST" AND TO
 DELETE DUTIES FORMERLY ASSIGNED TO THE DEPARTMENT OF REVENUE NOW ASSIGNED THE
 COMMITTEE ESTABLISHED BY THIS ACT; AND TO AMEND SECTION 12-36-2630, RELATING
 TO THE IMPOSITION OF THE STATE SALES TAX ON ACCOMMODATIONS, SO AS TO CLARIFY
 THE REVENUES WHICH MAY BE RETAINED BY THE DEPARTMENT OF REVENUE AND TO ALLOW
 THESE REVENUES TO FUND THE EXPENSES OF THE COMMITTEE ESTABLISHED BY THIS
 ACT.-AMENDED TITLE

   02/20/01  Senate Introduced and read first time SJ-2
   02/20/01  Senate Referred to Committee on Finance SJ-2
   05/09/01  Senate Committee report: Favorable Finance SJ-18
   05/14/01  Senate Read second time SJ-21
   05/15/01  Senate Read third time and sent to House SJ-11
   05/16/01  House  Introduced and read first time HJ-19
   05/16/01  House  Referred to Committee on Ways and Means HJ-19
   05/24/01  House  Recalled from Committee on Ways and Means HJ-38
   05/29/01  House  Amended HJ-80
   05/29/01  House  Debate interrupted HJ-83
   05/29/01  House  Read second time HJ-87
   05/30/01  House  Read third time and returned to Senate with
                     amendments HJ-14
   05/31/01  Senate Non-concurrence in House amendment SJ-18
   06/05/01  House  House insists upon amendment and conference
                     committee appointed Reps. Rice, Chellis and
                     Kelley HJ-12
   06/06/01  Senate Conference committee appointed Sens. Hayes,
                     Branto, Hutto SJ-94
   06/06/01  House  Conference report received and adopted HJ-36
   06/06/01  Senate Conference report received and adopted SJ-95
   06/06/01  Senate Ordered enrolled for ratification SJ-101
   06/07/01         Ratified R 126
   07/18/01         Signed By Governor
   08/06/01         Effective date 07/18/01
   08/06/01         Copies available
   08/06/01         Act No. 74

AN ACT TO AMEND SECTION 12-21-2420, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RATE OF THE ADMISSIONS LICENSE TAX AND EXEMPTIONS FROM THE ADMISSIONS LICENSE TAX, SO AS TO PROVIDE THAT ENTRY INTO THE PIT AREA OF NASCAR SANCTIONED MOTOR SPEEDWAYS AND RACETRACKS FOR DRIVERS, CREW MEMBERS, OR CAR OWNERS IS EXEMPT FROM THE TAX WHEN THESE PERSONS HAVE BEEN CHARGED A PARTICIPATION FEE BY NASCAR OR THE RACETRACK, OR WHERE THERE IS A PER EVENT CHARGE FOR ENTRY, OR A COMBINATION OF THESE FEES AND CHARGES ARE IMPOSED, AND TO EXTEND THE CURRENT EXEMPTION FROM THE ADMISSIONS LICENSE TAX FOR PRIVATE PHYSICAL FITNESS CENTERS TO PUBLICLY OWNED PHYSICAL FITNESS CENTERS; TO AMEND THE 1976 CODE BY ADDING SECTION 6-4-35 SO AS TO ESTABLISH THE TOURISM EXPENDITURE REVIEW COMMITTEE FOR THE PURPOSE OF REVIEWING TOURISM-RELATED EXPENDITURES OF STATE ACCOMMODATIONS SALES TAX REVENUES OF MUNICIPALITIES AND COUNTIES AND TO PROVIDE FOR ITS MEMBERSHIP AND DUTIES, INCLUDING THE AUTHORITY TO ORDER A REDUCTION IN THE ACCOMMODATIONS TAX REVENUE ALLOCATION TO A MUNICIPALITY OR COUNTY TO REFLECT A QUESTIONABLE EXPENDITURE OR LATE FILED REPORTS; TO AMEND SECTIONS 6-4-5 AND 6-4-30, AS AMENDED, RELATING TO DEFINITIONS AND THE DUTIES OF THE DEPARTMENT OF REVENUE IN THE ALLOCATIONS OF ACCOMMODATIONS TAX REVENUES, SO AS TO ADD A DEFINITION FOR "TOURIST" AND TO DELETE DUTIES FORMERLY ASSIGNED TO THE DEPARTMENT OF REVENUE NOW ASSIGNED THE COMMITTEE ESTABLISHED BY THIS ACT; AND TO AMEND SECTION 12-36-2630, RELATING TO THE IMPOSITION OF THE STATE SALES TAX ON ACCOMMODATIONS, SO AS TO CLARIFY THE REVENUES WHICH MAY BE RETAINED BY THE DEPARTMENT OF REVENUE AND TO ALLOW THESE REVENUES TO FUND THE EXPENSES OF THE COMMITTEE ESTABLISHED BY THIS ACT.

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

Pit area admissions tax exemption

SECTION 1. Section 12-21-2420 of the 1976 Code is amended by adding a new item appropriately numbered to read:

"( ) for entry into the pit area of NASCAR sanctioned motor speedways or racetracks for drivers, crew members, or car owners where a participation fee is charged these persons by NASCAR, or by the speedway or racetrack, where a charge to these persons is made on a per event basis for entry into the pit area, or where a combination of annual and per event charges to these persons is made for entry into the pit area;"

Tourist definition

SECTION 2. Section 6-4-5 of the 1976 Code, as added by Act 147 of 1991, is amended by adding at the end:

"(5) 'Tourist' means a person traveling to and staying in places outside his usual environment for one night or more for leisure, business, or any other purpose. A person meeting this definition may be staying in places of public accommodations such as hotels, motels, inns, bed and breakfasts, campgrounds, or the residences of family or friends."

Tourism Expenditure Review Committee; accommodations tax revenue expenditures

SECTION 3. A. Chapter 4, Title 6 of the 1976 Code is amended by adding:

"Section 6-4-35. (A) There is established the Tourism Expenditure Review Committee consisting of nine members as follows:

(1) one member appointed by the Speaker of the House;

(2) one member appointed by the President Pro Tempore of the Senate;

(3) the Director of the South Carolina Department of Parks, Recreation and Tourism, or his designee, ex officio;

(4) six members appointed by the Governor as follows:

(a) one member on the recommendation of the South Carolina Association of Tourism Regions;

(b) one member on the recommendation of the South Carolina Association of Convention and Visitors Bureaus;

(c) one member on the recommendation of the South Carolina Travel and Tourism Coalition;

(d) one member on the recommendation of the Municipal Association of South Carolina;

(e) one member on the recommendation of the South Carolina Association of Counties; and

(f) one member on the recommendation of the Hospitality Association of South Carolina.

Appointed members shall serve for terms of four years and until their successors are appointed and qualify, except that of those first appointed by the Governor, four shall serve for a term of two years and the term must be noted on the appointment. Regardless of the date of appointment, all terms expire July first of the applicable year. Members shall serve without compensation, but may receive the mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions. Vacancies must be filled in the manner of original appointment for the unexpired portion of the term.

(B)(1)(a) The Tourism Expenditure Review Committee shall serve as the oversight authority on all questionable tourism-related expenditures and to that end, all reports filed pursuant to Section 6-4-25(D)(3) must be forwarded to the committee for review to determine if they are in compliance with this chapter. The municipality or county must be notified if an expenditure is questioned, and the committee may consider any further supporting information the municipality or county may provide. If the committee finds an expenditure to be in noncompliance, it shall certify the noncompliance to the State Treasurer, who shall withhold the amount of the expenditure found in noncompliance from subsequent distributions in accommodations tax revenue otherwise due the municipality or county. An appeal from an action of the committee under this subitem lies with the Administrative Law Judge Division.

(b) If the committee determines that a municipality or county has failed to file the reports required pursuant to Section 6-4-25(D)(3), it may impose a fee of five hundred dollars a month or part of a month for each month the report is not filed, but not more than five thousand dollars. The committee shall certify the penalty to the State Treasurer, who shall withhold the amount of the penalty from subsequent distributions otherwise due the municipality or county. An appeal from an action of the committee under this subitem lies with the Administrative Law Judge Division.

(c) Allocations withheld must be reallocated proportionately to all other recipients.

(2) The committee has jurisdiction to investigate and research facts on written complaints submitted to it with regard to the appropriate tourism-related expenditures and resolve these complaints as provided in item (1) of this subsection.

(3) The committee shall forward copies of information submitted by the local governments and regional tourism agencies pursuant to Section 6-4-25 arising under the tourism provisions of this chapter to the Department of Parks, Recreation and Tourism, which shall publish an annual report on the information submitted."

B. Section 6-4-30 of the 1976 Code, as amended by Act 87 of 1997, is further amended to read:

"Section 6-4-30. Local governments covered by this chapter may expend accommodations tax revenues pursuant to this chapter, and the Department of Revenue shall:

(1) serve as a resource to, answer questions of, and assist advisory committees and local governments in the implementation of the accommodations tax; and

(2) arrange continuing education programs or workshops for local governmental officials and advisory committee members."

C. Section 12-36-2630(3) of the 1976 Code is amended to read:

"(3) a two percent local accommodations tax, which must be credited to the political subdivisions of the State in accordance with Chapter 4 of Title 6. The proceeds of this tax, less the department's actual increase in the cost of administration and the expenses of the Tourism Expenditure Review Committee established pursuant to Section 6-4-35, must be remitted quarterly to the municipality or the county in which it is collected. The two percent tax provided by this item may not be increased except upon approval of two-thirds of the membership of each House of the General Assembly. However, the tax may be decreased or repealed by a simple majority of the membership of each House of the General Assembly.

The tax imposed by Section 12-36-920 must be billed and paid in a single item listed as tax, without itemizing the taxes referred to in this section."

Physical fitness facility admissions tax exemption

SECTION 4. Section 12-21-2420(14) of the 1976 Code is amended to read:

"(14) On admissions to a physical fitness center subject to the provisions of Chapter 79 of Title 44, the Physical Fitness Services Act, that provides only the following activities or facilities:

(a) aerobics or calisthenics;

(b) weightlifting equipment;

(c) exercise equipment;

(d) running tracks;

(e) racquetball;

(f) swimming pools for aerobics and lap swimming; and

(g) other similar items approved by the department.

The entire admission charge of a physical fitness center which provides any other activity or facilities is subject to the tax imposed by this article. Physical fitness facilities or centers of the State of South Carolina and any of its political subdivisions which are exempt from the Physical Fitness Services Act, pursuant to Section 44-79-110 and, therefore, subject to the admissions tax under this article are nevertheless exempt from the admissions tax if they meet other requirements of this subsection."

Time effective

SECTION 5. This act takes effect upon approval by the Governor.

Ratified the 7th day of June, 2001.

Approved the 18th day of July, 2001.