H 3671 General Bill, By Askins
 A Bill to amend Section 12-36-930, as amended, Code of Laws of South Carolina,
 1976, relating to the sales tax due on the sale of a motor vehicle to a
 resident of another state for licensing in the other state, so as to extend
 this calculation of the tax due to boats and motors sold to a resident of
 another state for licensing in the other state.

   02/23/95  House  Introduced and read first time HJ-11
   02/23/95  House  Referred to Committee on Ways and Means HJ-11
   03/28/96  House  Committee report: Favorable Ways and Means HJ-3
   04/03/96  House  Read second time HJ-43
   04/03/96  House  Unanimous consent for third reading on next
                     legislative day HJ-43
   04/04/96  House  Read third time and sent to Senate HJ-3
   04/09/96  Senate Introduced and read first time SJ-7
   04/09/96  Senate Referred to Committee on Finance SJ-7

COMMITTEE REPORT

March 28, 1996

H. 3671

Introduced by REP. Askins

S. Printed 3/28/96--H.

Read the first time February 23, 1995.

To whom was referred a Bill (H. 3671), to amend Section 12-36-930, as amended, Code of Laws of South Carolina, 1976, relating to the sales tax, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

HENRY E. BROWN, JR., for Committee.

This bill would reduce state sales and use tax by $300,000 per year. Of this total, $240,000 would be a reduction in the state general fund, and $60,000 would be a reduction in EIA Funds.

This estimate assumes that South Carolina would lose the tax revenue on approximately 7.5% of the $80,000,000 of taxable boat and motor sales annually.

Approved By:

Burnet R. Maybank, III

S.C. Department of Revenue

A BILL

TO AMEND SECTION 12-36-930, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALES TAX DUE ON THE SALE OF A MOTOR VEHICLE TO A RESIDENT OF ANOTHER STATE FOR LICENSING IN THE OTHER STATE, SO AS TO EXTEND THIS CALCULATION OF THE TAX DUE TO BOATS AND MOTORS SOLD TO A RESIDENT OF ANOTHER STATE FOR LICENSING IN THE OTHER STATE.

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

SECTION 1. Section 12-36-930 of the 1976 Code, as last amended by Act 361 of 1992, is further amended to read:

"Section 12-36-930. (A) The tax imposed by this article on sales of motor vehicles, as defined in Section 56-1-10, trailers, semitrailers, or pole trailers and boats and motors of a type to be registered and licensed, to a resident of another state, is the lesser of:

(1) an amount equal to the sales tax, which would be imposed in the purchasers purchaser's state of residence, or

(2) the tax that would be imposed under this chapter.

(B) At the time of the sale, the seller shall:

(1) obtain from the purchaser a notarized statement of the purchasers purchaser's intent to license the vehicle, boat, or motor within ten days, in the purchasers purchaser's state of residence; and

(2) retain a signed copy of the notarized statement. The purchaser shall give a copy to the sales tax agency of the purchasers purchaser's state of residence.

(C) No tax is due if a nonresident will not receive credit in his state of residence for sales tax paid to this State under this section."

SECTION 2. This act takes effect upon approval by the Governor.