H 3297 Session 112 (1997-1998)
H 3297 General Bill, By Walker, Allison, Altman, Barfield, Barrett, Beck,
Cooper, Davenport, Gamble, Haskins, Klauber, Knotts, Lanford, Law, Leach, Lee,
Littlejohn, Mason, McCraw, Phillips, Rhoad, Riser, Simrill, F. Smith, R. Smith,
Spearman, Stille, E.C. Stoddard, Townsend, Tripp, Trotter, Whatley and Wilder
A BILL TO THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 IN
CHAPTER 36 OF TITLE 12, SO AS TO INCREASE THE RATE OF THE STATE SALES, USE,
AND CASUAL EXCISE TAX FROM FIVE TO SIX PERCENT ON ITEMS NOT SUBJECT TO A
MAXIMUM TAX AND PROVIDE FOR THE CREDITING OF THE REVENUE OF THIS ADDITIONAL
TAX TO A SEPARATE FUND STYLED THE "MOTOR VEHICLE PROPERTY TAX RELIEF FUND" AND
TO CREDIT THE EXCESS REVENUE TO THE EDUCATION IMPROVEMENT ACT FUND; TO AMEND
SECTION 12-36-2110, AS AMENDED, RELATING TO THE THREE HUNDRED DOLLAR MAXIMUM
SALES AND USE TAX ON MOTOR VEHICLES AND CERTAIN OTHER ITEMS, SO AS TO RAISE
THIS MAXIMUM TAX TO THREE HUNDRED SIXTY DOLLARS; TO AMEND SECTION 12-37-220,
AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT FROM TAX ONE
HUNDRED PERCENT OF THE FAIR MARKET VALUE OF ALL PRIVATE PASSENGER MOTOR
VEHICLES AND TRUCKS WITH AN EMPTY WEIGHT OF NOT MORE THAN FIVE THOUSAND POUNDS
FROM SCHOOL OPERATING MILLAGE, TO PROVIDE FOR THE REIMBURSEMENT OF SCHOOL
DISTRICTS FOR REVENUES NOT COLLECTED BECAUSE OF THIS EXEMPTION FROM THE MOTOR
VEHICLE PROPERTY TAX RELIEF FUND, AND FOR THE DISTRIBUTION OF EXCESS REVENUES;
AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS,
SO AS TO EXEMPT FOOD ITEMS ELIGIBLE FOR PURCHASE WITH UNITED STATES DEPARTMENT
OF AGRICULTURE FOOD COUPONS.
01/28/97 House Introduced and read first time HJ-5
01/28/97 House Referred to Committee on Ways and Means HJ-6
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING ARTICLE 11 IN CHAPTER 36 OF TITLE 12,
SO AS TO INCREASE THE RATE OF THE STATE SALES, USE,
AND CASUAL EXCISE TAX FROM FIVE TO SIX PERCENT ON
ITEMS NOT SUBJECT TO A MAXIMUM TAX AND PROVIDE
FOR THE CREDITING OF THE REVENUE OF THIS
ADDITIONAL TAX TO A SEPARATE FUND STYLED THE
"MOTOR VEHICLE PROPERTY TAX RELIEF FUND" AND TO
CREDIT THE EXCESS REVENUE TO THE EDUCATION
IMPROVEMENT ACT FUND; TO AMEND SECTION
12-36-2110, AS AMENDED, RELATING TO THE THREE
HUNDRED DOLLAR MAXIMUM SALES AND USE TAX ON
MOTOR VEHICLES AND CERTAIN OTHER ITEMS, SO AS TO
RAISE THIS MAXIMUM TAX TO THREE HUNDRED SIXTY
DOLLARS; TO AMEND SECTION 12-37-220, AS AMENDED,
RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO
EXEMPT FROM TAX ONE HUNDRED PERCENT OF THE FAIR
MARKET VALUE OF ALL PRIVATE PASSENGER MOTOR
VEHICLES AND TRUCKS WITH AN EMPTY WEIGHT OF NOT
MORE THAN FIVE THOUSAND POUNDS FROM SCHOOL
OPERATING MILLAGE, TO PROVIDE FOR THE
REIMBURSEMENT OF SCHOOL DISTRICTS FOR REVENUES
NOT COLLECTED BECAUSE OF THIS EXEMPTION FROM
THE MOTOR VEHICLE PROPERTY TAX RELIEF FUND, AND
FOR THE DISTRIBUTION OF EXCESS REVENUES; AND TO
AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO
SALES TAX EXEMPTIONS, SO AS TO EXEMPT FOOD ITEMS
ELIGIBLE FOR PURCHASE WITH UNITED STATES
DEPARTMENT OF AGRICULTURE FOOD COUPONS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by
adding:
"Article 11
Additional Sales, Use, and
Casual Excise Tax
Section 12-36-1110. (A) An additional sales, use, and casual
excise tax equal to one percent is imposed on amounts taxable
pursuant to this chapter.
(B) The tax imposed pursuant to this article does not apply to
any item subject to the maximum tax provisions of Section
12-36-2110.
(C) Revenue of the tax imposed pursuant to this article must be
credited to a fund separate from the general fund of the State styled
the 'Motor Vehicle Property Tax Relief Fund'. Revenues in this fund
must be used to reimburse school districts for revenues not collected
because of the exemption allowed for private passenger motor
vehicles and pickup trucks. Amounts accumulating in this fund in
excess of the amounts required for reimbursements must be credited
to the Education Improvement Act Fund."
SECTION 2. Subsections (A) and (B) of Section 12-36-2110 of
the 1976 Code, as last amended by Act 431 of 1996, are further
amended to read:
"(A) The maximum tax imposed by this chapter is three hundred
sixty 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
sixty 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.
(B) For the sale of a manufactured home, as defined in Section
40-29-20, the tax is calculated as follows:
(1) subtract trade-in allowance from the sales price;
(2) multiply the result from (1) by sixty-five percent;
(3) if the result from (2) is no greater than six
seven thousand two hundred dollars, multiply by
five percent for the amount of tax due;
(4) if the result from (2) is greater than six seven
thousand two hundred dollars, the tax due is three hundred
sixty dollars plus two percent of the amount greater than
six seven thousand two hundred dollars.
However, a manufactured home is exempt from any tax that may be
due above three hundred sixty dollars as a result of the
calculation in item (4) if it meets these energy efficiency levels: storm
or double pane glass windows, insulated or storm doors, a minimum
thermal resistance rating of the insulation only of R-11 for walls,
R-19 for floors, and R-30 for ceilings. However, variations in the
energy efficiency levels for walls, floors, and ceilings are allowed
and the exemption on tax due above three hundred dollars applies if
the total heat loss does not exceed that calculated using the levels of
R-11 for walls, R-19 for floors, and R-30 for ceilings. The edition of
the American Society of Heating, Refrigerating, and Air
Conditioning Engineers Guide in effect at the time is the source for
heat loss calculation. The dealer selling the manufactured home must
maintain records, on forms provided by the State Energy Office, on
each manufactured home sold which contains the above calculations
and verifying whether or not the manufactured home met the energy
efficiency levels provided for in this subsection. These records must
be maintained for three years and must be made available for
inspection upon request of the Department of Consumer Affairs or
the State Energy Office."
SECTION 3. Section 12-36-2120 of the 1976 code is amended by
adding an appropriately numbered item at the end to read:
"( ) food items eligible for purchase with United States Department
of Agriculture food coupons, not including restaurant meals."
SECTION 4. Section 12-37-220(B) of the 1976 Code is amended
by adding an appropriately numbered item at the end to read:
"( )(a) Subject to the requirements of subitem (b), one
hundred percent of the fair market value of a motor vehicle which
may be registered upon payment of the fees provided in Section
56-3-620 and a truck with an empty weight of not more than five
thousand pounds is exempt from millage imposed for schools, not
including millage levied for debt service and payments levied
pursuant to lease purchase agreements for capital construction.
(b) Revenues not collected because of this exemption must be
reimbursed to school districts from the Motor Vehicle Property Tax
Relief Fund in the manner provided in Section 12-37-270, mutatis
mutandis, except that reimbursements must be made not less than
quarterly."
SECTION 5. This act takes effect July 1, 1997, and with respect
to the amendments to Section 12-36-2110 of the 1976 Code
contained in this act, applies to sales made or leases executed after
June 30, 1997.
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