H 4069 General Bill, By Canty and L.S. Whipper
 A Bill to amend Chapter 23, Title 12 of the Code of Laws of South Carolina,
 1976, relating to license taxes on businesses, by adding Article 13, so as to
 impose a severance tax on the mining or quarrying of metalliferous minerals or
 metals and other minerals.

   04/14/93  House  Introduced and read first time HJ-53
   04/14/93  House  Referred to Committee on Ways and Means HJ-53

A BILL

TO AMEND CHAPTER 23, TITLE 12 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSE TAXES ON BUSINESSES, BY ADDING ARTICLE 13, SO AS TO IMPOSE A SEVERANCE TAX ON THE MINING OR QUARRYING OF METALLIFEROUS MINERALS OR METALS AND OTHER MINERALS.

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

SECTION 1. Chapter 23, Title 12 of the 1976 Code is amended by adding:

"Article 13

Section 12-23-1110. As used in this article:

(1) `Metalliferous minerals' include but are not limited to any ore, metal, or other substance containing specified minerals, such as gold, silver, iron, mercury, or nickel.

(2) `Other minerals' include but are not limited to any substance mined or quarried such as sand, sand/clay fill material, granite, vermiculite, kaolin, clay, shale, limestone, sand and gravel, sericite, manganese schist, peat, or fuller's earth.

Section 12-23-1120. Persons mining or quarrying metalliferous minerals or metals or other minerals are assessed a severance tax as provided in this article.

Section 12-23-1130. The tax rate on metalliferous minerals is three percent of the taxable value of the minerals or metals sold or disposed of. The taxable value of the metalliferous minerals or metals is equal to twenty percent of the gross proceeds received for the minerals metals. The taxable value of the other minerals is equal to eighty percent of the gross proceeds received for the minerals sold or otherwise disposed of by the producer.

Section 12-23-1140. The gross proceeds for metalliferous minerals or metals or other minerals is computed as follows:

(1) If the metalliferous mineral products or metals or other minerals are sold, the gross proceeds is the gross amount the producer receives for the sale.

(2) If the metalliferous minerals or metals are not sold but are shipped, transported, or delivered out of state the gross proceeds are determined by multiplying the finished metals contained in the minerals by the average daily price of the metals for the period for which the tax is due. For other minerals the gross proceeds for minerals shipped, transported, or delivered out of state is the value as determined by the commission.

(3) The gross proceeds of metalliferous minerals or metals or other minerals disposed of but not sold is determined by applying the percentage of the total costs associated with the sale or disposition of the minerals to the producer's total costs by the producer's total sales or dispositions.

(4) If a non bonafide sale of metalliferous minerals or metals or other minerals takes place between affiliated companies where the value received is not proportionate to the fair market value, or if the other items of this section do not apply, the commission shall determine the value.

Section 12-23-1150. (A) There is allowed an annual exemption for each mine or quarry of the first twenty-five thousand dollars of gross proceeds of metalliferous minerals or metals or other minerals sold or disposed of.

(B) Any amount in excess of three million seven hundred thousand dollars collected each year from the severance tax must be refunded to each mine or quarry on the basis of the percentage collected.

Section 12-23-1160. The tax is due on or before the twentieth day of April, July, October, and January for sales or dispositions of the minerals or metals in the preceding calendar quarter. The tax must be reported and paid on forms prescribed by the commission.

SECTION 2. This act takes effect January 1, 1994, and applies to sales or other dispositions occurring after December 30, 1993.