H*4478(Rat #0253, Act #0239 of 1996)  General Bill, By Boan, Askins, 
J.M. Baxley, T. Brown, Cato, Cooper, Fleming, J. Hines, Jennings, Kennedy, Law, 
L.H. Limbaugh, L.M. Martin, Rhoad, Robinson, Wilkins and Witherspoon
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 12-21-785, so as to authorize the Department of Revenue and Taxation to alter
 the return and payment schedule for the tobacco products tax; to amend Section
 12-21-620, relating to the specific tax rates on various tobacco products, so
 as to delete the separate definition of tobacco products and impose a tax
 equal to five percent of the manufacturer's price on all tobacco products
 except cigarettes; to amend Section 12-21-735, relating to the payment method
 of the cigarette tax, so as to authorize a three and one-half percent discount
 on the tax for timely filed returns and payments; to amend Section 12-21-780,
 as amended, relating to returns and payments of the tobacco products tax, so
 as to increase the discount for timely filed returns and payments for the
 tobacco products tax from two to three and one-half percent; and to amend
 Section 12-21-800, relating to the definition of tobacco products, so as to
 conform it to the provisions of this Act.

   01/23/96  House  Introduced and read first time HJ-3
   01/23/96  House  Referred to Committee on Ways and Means HJ-3
   02/01/96  House  Committee report: Favorable Ways and Means HJ-4
   02/07/96  House  Read second time HJ-15
   02/08/96  House  Read third time and sent to Senate HJ-9
   02/08/96  Senate Introduced and read first time SJ-7
   02/08/96  Senate Referred to Committee on Finance SJ-7
   02/21/96  Senate Committee report: Favorable Finance SJ-14
   02/22/96  Senate Read second time SJ-20
   02/22/96  Senate Unanimous consent for third reading on next
                     legislative day SJ-20
   02/23/96  Senate Read third time and enrolled SJ-1
   02/27/96         Ratified R 253
   02/28/96         Signed By Governor
   02/28/96         Effective date 03/01/96-this act is effective
                     with respect to sales made on and after the
                     first day of the first month following the month
                     in which the act is approved by Governor
   03/13/96         Copies available
   03/13/96         Act No. 239

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-785, SO AS TO AUTHORIZE THE DEPARTMENT OF REVENUE AND TAXATION TO ALTER THE RETURN AND PAYMENT SCHEDULE FOR THE TOBACCO PRODUCTS TAX; TO AMEND SECTION 12-21-620, RELATING TO THE SPECIFIC TAX RATES ON VARIOUS TOBACCO PRODUCTS, SO AS TO DELETE THE SEPARATE DEFINITION OF TOBACCO PRODUCTS AND IMPOSE A TAX EQUAL TO FIVE PERCENT OF THE MANUFACTURER'S PRICE ON ALL TOBACCO PRODUCTS EXCEPT CIGARETTES; TO AMEND SECTION 12-21-735, RELATING TO THE PAYMENT METHOD OF THE CIGARETTE TAX, SO AS TO AUTHORIZE A THREE AND ONE-HALF PERCENT DISCOUNT ON THE TAX FOR TIMELY FILED RETURNS AND PAYMENTS; TO AMEND SECTION 12-21-780, AS AMENDED, RELATING TO RETURNS AND PAYMENTS OF THE TOBACCO PRODUCTS TAX, SO AS TO INCREASE THE DISCOUNT FOR TIMELY FILED RETURNS AND PAYMENTS FOR THE TOBACCO PRODUCTS TAX FROM TWO TO THREE AND ONE-HALF PERCENT; AND TO AMEND SECTION 12-21-800, RELATING TO THE DEFINITION OF TOBACCO PRODUCTS, SO AS TO CONFORM IT TO THE PROVISIONS OF THIS ACT.

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

Returns

SECTION 1. Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-785. Notwithstanding the provisions of Sections 12-21-735 and 12-21-780, the department may require returns and payments of this tax for other than monthly periods."

Tax rates

SECTION 2. Section 12-21-620 of the 1976 Code is amended to read:

"Section 12-21-620. There shall be levied, assessed, collected, and paid in respect to the articles containing tobacco enumerated in this section the following amounts:

(1) upon all cigarettes made of tobacco or any substitute for tobacco, three and one-half mills on each cigarette;

(2) upon all tobacco products, as defined in Section 12-21-800, five percent of the manufacturer's price.

Manufacturer's price as used in this section is the established price at which a manufacturer sells to a wholesaler."

Discount

SECTION 3. The last paragraph of Section 12-21-735 of the 1976 Code, as added by Act 114 of 1995, is amended to read:

"The department shall require bonds or statements of financial stability satisfactory to the department to cover possible losses resulting from failure to remit taxes due. When the return required by this section is timely filed and the taxes shown to be due are paid by the date specified in this section, the person or distributor may deduct three and one-half percent of the tax due."

Discount

SECTION 4. Section 12-21-780 of the 1976 Code, as last amended by Act 61 of 1995, is further amended to read:

"Section 12-21-780. Every distributor, on or before the twentieth day of each month, shall file with the South Carolina Department of Revenue and Taxation a return on forms to be prescribed and furnished by the department showing the quantity and wholesale price of all tobacco products transported or caused to be transported into the State by him or manufactured or fabricated in the State for sale in this State. Every distributor authorized by the department to make returns and pay the tax on tobacco products sold, shipped, or delivered by him to any person in the State shall file a return showing the quantity and wholesale price of all products so sold, shipped, or delivered during the preceding calendar month. These returns must contain such further information as the department may require. Every distributor shall pay to the department with the filing of the return the tax on tobacco products for the month imposed under this article. When the distributor or dealer files the return and pays the tax within the time specified in this section, he may deduct therefrom three and one-half percent of the tax due."

Definitions

SECTION 5. Section 12-21-800 of the 1976 Code is amended to read:

"Section 12-21-800. As used in Sections 12-21-620 and 12-21-780, `tobacco products' means cigars, cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco, snuff, snuff flour, cavendish, plug and twist tobacco, fine-cut, and other chewing tobacco, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in a manner to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing or smoking, but does not include cigarettes."

Time effective

SECTION 6. This act is effective with respect to sales made on and after the first day of the first month following the month in which the act is approved by the Governor.

Approved the 28th day of February, 1996.