H*3272 Session 109 (1991-1992)
H*3272(Rat #0245, Act #0168 of 1991) General Bill, By Kirsh, Elliott and
D.E. McTeer
A Bill to amend Sections 4-10-90 and 6-4-20, Code of Laws of South Carolina,
1976, relating to estimating revenues and correcting allocations for purposes
of the local option sales tax and the accommodations tax, so as to provide
that misallocations may be corrected only by adjusting subsequent allocations
in the same fiscal year as the misallocation; to amend Section 12-3-240,
relating to the Tax Commission's authority to furnish income tax data to
municipalities which levy a gross receipts tax, so as to allow the Commission
to provide the data to counties; to amend the 1976 Code by adding Section
12-3-270 so as to provide that funds received from collecting warrants for
distraint may not supplement Tax Commission appropriations and must be
deposited in the general fund of the State; to amend Sections 12-54-50 and
12-54-120, relating to fees on bad checks given to the Tax Commission and tax
liens, so as to increase the fee from ten to fifteen dollars, and provide that
a tax lien operates in the same manner as a judgment; to amend Sections
12-54-420 and 12-54-460, relating to the Setoff Debt Collection Act, so as to
provide that debt setoffs may be made for private institutions of higher
learning only for state-authorized student loans and to provide a notice
procedure before a setoff may be made; and to amend the 1976 Code by adding
Section 12-54-495 so as to provide that claimant agencies under the Setoff
Debt Collection Act must indemnify the Tax Commission for liabilities arising
under the Act; to amend Act 612 of 1990, the General Appropriations Act for
1990-91, relating to the authority of the Tax Commission to enforce the use
tax on direct marketing companies, so as to extend the Commission's authority
to July 1, 1996; to amend Section 12-21-2420, relating to the admissions tax,
so as to exempt admissions to certain health clubs; to amend Sections 4-10-40,
4-10-50, and 4-10-90, relating to the local option sales tax, so as to clarify
the application of the tax credit to property taxes on motor vehicles, provide
that distributions from the county/municipal revenue fund may be used to
provide additional tax credits and revise imposition dates; to amend Section
12-13-30, as amended, relating to the tax on building and loan associations,
so as to exempt from the tax certain interest earned on deposits at the
Federal Home Loan Bank of Atlanta; to amend the 1976 Code by adding Sections
12-27-285, 12-29-125, and 12-29-126 so as to require surety bonds, cash bonds,
or financial statements to guarantee the payment of gasoline and special fuels
taxes; to amend Sections 12-37-360 and 12-29-40, relating to collection and
payment of gasoline and special fuels taxes, so as to delete references to the
sheriff serving warrants and to provide that the taxes are liens, but not
first liens, on the property of the taxpayer, and to provide for the abatement
allowed manufacturing property for certain textile manufacturing
property.-amended title
01/22/91 House Introduced and read first time HJ-11
01/22/91 House Referred to Committee on Ways and Means HJ-11
03/19/91 House Committee report: Favorable Ways and Means HJ-19
03/20/91 House Read second time HJ-14
03/20/91 House Reconsider vote whereby read second time HJ-31
03/21/91 House Debate adjourned until Wednesday, March 27, 1991 HJ-12
03/28/91 House Read second time HJ-17
04/02/91 House Read third time and sent to Senate HJ-6
04/03/91 Senate Introduced and read first time SJ-8
04/03/91 Senate Referred to Committee on Finance SJ-9
04/25/91 Senate Committee report: Favorable with amendment
Finance SJ-35
05/14/91 Senate Amended SJ-15
05/14/91 Senate Read second time SJ-19
05/14/91 Senate Ordered to third reading with notice of
amendments SJ-19
06/05/91 Senate Read third time and returned to House with
amendments SJ-82
06/06/91 House Senate amendment amended HJ-16
06/06/91 House Returned to Senate with amendments HJ-21
06/06/91 Senate Concurred in House amendment and enrolled SJ-13
06/06/91 Ratified R 245
06/28/91 Signed By Governor
06/28/91 Effective date 06/28/91
06/28/91 Act No. 168
07/18/91 Copies available
(A168, R245, H3272)
AN ACT TO AMEND SECTIONS 4-10-90 AND 6-4-20, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO ESTIMATING
REVENUES AND CORRECTING ALLOCATIONS FOR PURPOSES OF
THE LOCAL OPTION SALES TAX AND THE ACCOMMODATIONS
TAX, SO AS TO PROVIDE THAT MISALLOCATIONS MAY BE
CORRECTED ONLY BY ADJUSTING SUBSEQUENT ALLOCATIONS
IN THE SAME FISCAL YEAR AS THE MISALLOCATION; TO
AMEND SECTION 12-3-240, RELATING TO THE TAX
COMMISSION'S AUTHORITY TO FURNISH INCOME TAX DATA TO
MUNICIPALITIES WHICH LEVY A GROSS RECEIPTS TAX, SO AS
TO ALLOW THE COMMISSION TO PROVIDE THE DATA TO
COUNTIES; TO AMEND THE 1976 CODE BY ADDING SECTION
12-3-270 SO AS TO PROVIDE THAT FUNDS RECEIVED FROM
COLLECTING WARRANTS FOR DISTRAINT MAY NOT
SUPPLEMENT TAX COMMISSION APPROPRIATIONS AND MUST
BE DEPOSITED IN THE GENERAL FUND OF THE STATE; TO
AMEND SECTIONS 12-54-50 AND 12-54-120, RELATING TO FEES
ON BAD CHECKS GIVEN TO THE TAX COMMISSION AND TAX
LIENS, SO AS TO INCREASE THE FEE FROM TEN TO FIFTEEN
DOLLARS AND PROVIDE THAT A TAX LIEN OPERATES IN THE
SAME MANNER AS A JUDGMENT; TO AMEND SECTIONS
12-54-420 AND 12-54-460, RELATING TO THE SETOFF DEBT
COLLECTION ACT, SO AS TO PROVIDE THAT DEBT SETOFFS
MAY BE MADE FOR PRIVATE INSTITUTIONS OF HIGHER
LEARNING ONLY FOR STATE-AUTHORIZED STUDENT LOANS
AND TO PROVIDE A NOTICE PROCEDURE BEFORE A SETOFF
MAY BE MADE; AND TO AMEND THE 1976 CODE BY ADDING
SECTION 12-54-495 SO AS TO PROVIDE THAT CLAIMANT
AGENCIES UNDER THE SETOFF DEBT COLLECTION ACT MUST
INDEMNIFY THE TAX COMMISSION FOR LIABILITIES ARISING
UNDER THE ACT; TO AMEND ACT 612 OF 1990, THE GENERAL
APPROPRIATIONS ACT FOR 1990-91, RELATING TO THE
AUTHORITY OF THE TAX COMMISSION TO ENFORCE THE USE
TAX ON DIRECT MARKETING COMPANIES, SO AS TO EXTEND
THE COMMISSION'S AUTHORITY TO JULY 1, 1996; TO AMEND
SECTION 12-21-2420, RELATING TO THE ADMISSIONS TAX, SO AS
TO EXEMPT ADMISSIONS TO CERTAIN HEALTH CLUBS; TO
AMEND SECTIONS 4-10-40, 4-10-50, AND 4-10-90, RELATING TO
THE LOCAL OPTION SALES TAX, SO AS TO CLARIFY THE
APPLICATION OF THE TAX CREDIT TO PROPERTY TAXES ON
MOTOR VEHICLES, PROVIDE THAT DISTRIBUTIONS FROM THE
COUNTY/MUNICIPAL REVENUE FUND MAY BE USED TO
PROVIDE ADDITIONAL TAX CREDITS, AND REVISE IMPOSITION
DATES; TO AMEND THE 1976 CODE BY ADDING SECTIONS
12-27-285, 12-29-125, AND 12-29-126 SO AS TO REQUIRE SURETY
BONDS, CASH BONDS, OR FINANCIAL STATEMENTS TO
GUARANTEE THE PAYMENT OF GASOLINE AND SPECIAL FUELS
TAXES; TO AMEND SECTIONS 12-37-360 AND 12-29-40, RELATING
TO COLLECTION AND PAYMENT OF GASOLINE AND SPECIAL
FUELS TAXES, SO AS TO DELETE REFERENCES TO THE SHERIFF
SERVING WARRANTS AND TO PROVIDE THAT THE TAXES ARE
LIENS, BUT NOT FIRST LIENS, ON THE PROPERTY OF THE
TAXPAYER, AND TO PROVIDE FOR THE ABATEMENT ALLOWED
MANUFACTURING PROPERTY FOR CERTAIN TEXTILE
MANUFACTURING PROPERTY.
Be it enacted by the General Assembly of the State of South Carolina:
Misallocations corrected
SECTION 1. Section 4-10-90(C) of the 1976 Code, as added by Act
317 of 1990, is amended to read:
"(C) The Tax Commission shall furnish data to the State
Treasurer and to the governing bodies of the counties and municipalities
receiving revenues for the purpose of calculating distributions and
estimating revenues. The information which may be supplied to counties
and municipalities includes, but is not limited to, gross receipts, net taxable
sales, and tax liability by taxpayers. Information by taxpayer received by
appropriate county or municipal officials is considered confidential and is
governed by the provisions of Section 12-54-240. A person violating this
section is subject to the penalties provided in Section 12-54-240. The State
Treasurer may correct misallocations from the Property Tax Credit Fund
and County/Municipal Revenue Fund by adjusting subsequent allocations,
but these adjustments may be made only in allocations made in the same
fiscal year as the misallocation."
Misallocations corrected
SECTION 2. Section 6-4-20 of the 1976 Code, as added by Section 74,
Part II, Act 612 of 1990, is amended by adding:
"(5) The State Treasurer may correct misallocations to counties
and municipalities from accommodations tax revenues by adjusting
subsequent allocations, but these adjustments may be made only in
allocations made in the same fiscal year as the misallocation."
Gross receipts records
SECTION 3. Section 12-3-240 of the 1976 Code is amended to
read:
"Section 12-3-240. The Tax Commission shall make available to
the authorities of a municipality or county in this State levying a tax based
on gross receipts any records indicating the amount of gross receipts
reported to the commission but these tax records may be made available
only if the commission first has satisfied itself that the gross receipts
reported to the municipality or county were less than the gross receipts as
indicated by the records of the commission."
Warrant funds
SECTION 4. Chapter 3, Title 12 of the 1976 Code is amended by
adding:
"Section 12-3-270. Funds received from the collection of
warrants for distraint may not be expended to supplement appropriations to
the Tax Commission. Any unexpended balance in the `Warrant Revolving
Fund' less an amount necessary for adequate cash flow must be deposited to
the credit of the general fund of the State."
Penalty
SECTION 5. Section 12-54-50 of the 1976 Code is amended to
read:
"Section 12-54-50. When the bank on which an uncertified
check tendered to the commission in payment of an obligation due to the
commission refuses payment of the check on account of insufficient funds
of the drawer in the bank and the check is returned to the commission, a
penalty of fifteen dollars must be imposed. This section applies to all taxes
or license fees levied or assessed by the commission."
Tax liens
SECTION 6. Section 12-54-120 of the 1976 Code is amended to
read:
"Section 12-54-120. If a tax, additional tax, interest, or penalty
imposed by the commission remains due and unpaid for ten days, the
commission may issue a warrant for distraint under its hand and official
seal, directed to an authorized agent of the commission commanding him to
levy on and sell the real and personal property of the person for the
payment of the amount due, with added penalties, interest, and costs of
executing the warrant, and to return the warrant to the commission and pay
to it the money collected, by a time specified in the warrant not more than
sixty days after receipt of the warrant. Immediately upon receipt of the
warrant, the agent shall file a copy of the warrant with the clerk of court or,
where appropriate, the register of mesne conveyances of a county in this
State in which property of the taxpayer named in the warrant may be or
may have been located, and the clerk of court shall enter in the judgment
docket, in the column for judgment debtors, the name of the taxpayer
mentioned in the warrant and in appropriate columns the amount of tax, or
portion of the tax, and the penalties for which the warrant was issued, and
the date when the copy was filed and shall index the warrant on the index
of judgments. When filed, the amount of the warrant docketed becomes a
lien on the title to and interest in real property or chattels real or any
property of the taxpayer against whom it is issued in the same manner as a
judgment duly docketed in the clerk's office. The lien created extends to
bank deposits and all other choses in action on property incapable of
manual levy or delivery."
Claimant agency
SECTION 7. Section 12-54-420(1) of the 1976 Code, as amended by
Act 668 of 1988, is further amended to read:
"(1) `Claimant agency' means a state agency, board,
committee, commission, public institution of higher learning, and the
Internal Revenue Service. It also includes a private institution of higher
learning for the purpose of collecting debts related to default on authorized
educational loans made pursuant to Chapter 111, 113, or 115 of Title
59."
Debt setoff
SECTION 8. Section 12-54-460(A) of the 1976 Code, as added by Act
474 of 1988, is amended to read:
"(A) A claimant agency seeking to attempt collection of a
delinquent debt through setoff shall notify the commission in writing and
supply information the commission determines necessary to identify the
debtor whose refund is sought to be set off. A request for setoff may be
made only after the claimant agency has notified the debtor of its intention
to cause the debtor's refund to be set off. This notice must be given in
person, left at the dwelling or usual place of business of the debtor, or sent
by certified or registered mail to the debtor's last known address no less
than thirty days before the claimant agency's request to the commission.
The notice shall include a statement which sets forth administrative appeal
procedures available to the debtor and alternatives available to the debtor
which could prevent setoff. The claimant agency promptly shall notify the
debtor when the liability out of which the setoff arises is satisfied.
Notification to the commission and the furnishing of identifying
information must occur on or before a date specified by the commission in
the year preceding the calendar year during which the refund would be
paid. Additionally, subject to the notification deadline specified above, the
notification is effective only to initiate setoff for claims against refunds that
would be made in the calendar year subsequent to the year in which
notification is made to the commission."
Indemnify commission
SECTION 9. Article 3, Chapter 54, Title 12 of the 1976 Code is
amended by adding:
"Section 12-54-495. Claimant agencies shall indemnify the
commission against any injuries, actions, liabilities, or proceedings arising
from performance under the provisions of this article."
Authority extended
SECTION 10. Section 26D, Part II, Act 612 of 1990 is amended to
read:
"D. The authority granted the South Carolina Tax Commission
pursuant to this section expires July 1, 1996."
Admissions tax exemption
SECTION 11. Section 12-21-2420 of the 1976 Code is amended by
adding an appropriately numbered item to read:
"( ) 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 commission.
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."
Motor vehicle tax credit
SECTION 12. Section 4-10-40 of the 1976 Code, as added by Act
317 of 1990, is amended by adding:
"(E) For motor vehicles subject to the payment of property
taxes pursuant to Article 21, Chapter 37 of Title 12, the credit provided
under this section applies against the tax liability for motor vehicle tax
years beginning after December of the year in which the credit is
calculated."
Local option sales tax
SECTION 13. Section 4-10-90(A) of the 1976 Code, as added by Act
317 of 1990, is amended to read:
"(A) The Tax Commission shall administer and collect the local
sales and use tax in the manner that sales and use taxes are administered
and collected pursuant to Chapter 35 of Title 12. The commission may
prescribe forms and promulgate regulations in conformity with this chapter,
including tables prescribing the amount to be added to the sales price. The
county shall notify the Tax Commission and the State Treasurer through
delivery of a certified copy of a resolution adopted by the county by
December thirty-first following the referendum for the tax to be imposed
May first. Failure to deliver the resolution by December thirty-first causes
a delay of the imposition until the first day of May of the next calendar
year. Notwithstanding the provisions of this subsection, the local sales and
use tax must not be imposed before July first following the first referendum
held pursuant to Section 4-10-30."
Additional credit
SECTION 14. Section 4-10-50 of the 1976 Code, as added by Act 317
of 1990 is amended by adding:
"(C) Revenue distributed to a county or municipality under this
section may be used to provide an additional property tax credit in the
manner provided in Section 4-10-40(B)."
Interest exempt
SECTION 15. Section 12-13-30 of the 1976 Code, as amended by Act
170 of 1987, is further amended to read:
"Section 12-13-30. Every association located or doing business
within this State shall pay an income tax measured by its net income from
all sources, except for income from municipal, state, or federal bonds or
securities exempted by law from the tax, including interest earned on
deposits at the Federal Home Loan Bank of Atlanta, or its successors, for
those savings and loan associations which meet the qualified thrift lender
test set forth in the Financial Institutions Reform, Recovery and
Enforcement Act of 1989 (P.L. 101-73), as amended. The tax is six percent
of the net income."
Bond, liens
SECTION 16. (A) Article 3, Chapter 27, Title 12 of the 1976 Code
is amended by adding:
"Section 12-27-285. At the time of filing a license application
under Section 12-27-280, every oil company shall file a bond executed by a
surety company authorized to do business in this State, or file a cash bond
with the commission, in an amount authorized and approved by the
commission. No oil company may engage in business in this State until the
commission has approved the bond and issued the license required under
Section 12-27-280."
(B) Article 3, Chapter 27, Title 12 of the 1976 Code is amended by
adding:
"Section 12-29-125. At the time of filing a license application
under Section 12-29-120, every supplier shall file a bond executed by a
surety company authorized to do business in this State, or file a cash bond
with the commission, in an amount authorized and approved by the
commission. No supplier may engage in business in this State until the
commission has approved the bond and issued the license required under
Section 12-29-120.
Section 12-29-126. A supplier may furnish the commission with a
statement of assets and liabilities and, if in the judgment of the commission
the property owned by the supplier is sufficient to protect this State in the
payment of all taxes due under this chapter, the bond provided for under
this chapter is not required."
(C) Section 12-27-360 of the 1976 Code is amended to read:
"Section 12-27-360. The taxes and any penalties and interest
provided in this article are a debt payable to the State by the persons against
whom they are charged and are a lien on all property of such
persons."
(D) Section 12-29-40 of the 1976 Code is amended by adding at the
end:
"However, the taxes provided in this chapter and any penalties
and interest on the taxes constitute a debt payable to the State by the person
against whom they are charged and constitute a lien, but not a first lien,
against all the property of the person."
Tax abatement
SECTION 17. (A) A corporation which acquires eight or more
existing textile manufacturing facilities in South Carolina which employed
at the time of acquisition a total of three thousand, five hundred or more
employees located in a county of this State may receive the five-year
abatement pursuant to Section 12-37-220A(7) of the 1976 Code from the
time of acquisition. For purposes of this item acquisition means asset
transactions which are arms-length and includes new capital.
(B) The five-year abatement applies to tax years 1991, 1992, and 1993.
However, an acquiring corporation to which the abatement applies must not
be assessed taxes on personal property at a level greater than eighty percent
of the assessment which otherwise would have been due for tax years 1989
and 1990.
(C) Upon approval by the Governor this section is effective with
respect to acquisitions after April 30, 1988."
Time effective
SECTION 18. This act takes effect upon approval by the
Governor.
Approved the 28th day of June, 1991. |