H*3237(Rat #0493, Act #0423 of 1980)  General Bill, By J.E. Kinard, W.D. Arthur, 
H.L. Barksdale, L.H. Brinker, T.M. Burriss, M.J. Cooper, V.L. Crocker, 
M.R. Daniel, H.C. Granger, Harvin, L.I. Hendricks, C.E. Hodges, H.H. Keyserling, 
T.M. Marchant, Martin, D.M. McEachin, R.N. McLellan, F.T. Moore, J. Murray, 
M.E. Nunnery, N.C. Russell, R. Schwartz, E.W. Simpson, J.J. Snow, W.C. Stanley, 
D.E. Winstead, J.T. Wood and R.R. Woods
 A Bill to amend Section 12-7-2240, Code of Laws of South Carolina, 1976,
 relating to refund of income taxes by the Tax Commission, so as to prohibit
 the Commission from making refunds to persons who have defaulted on
 educational loans.

   12/17/79  House  Prefiled
   12/17/79  House  Referred to Committee on Ways and Means
   01/08/80  House  Introduced and read first time HJ-47
   01/08/80  House  Referred to Committee on Ways and Means HJ-48
   04/01/80  House  Committee report: Favorable Ways and Means HJ-1778
   04/03/80  House  Amended HJ-1881
   04/03/80  House  Read second time HJ-1882
   04/09/80  House  Read third time and sent to Senate HJ-1939
   04/10/80  Senate Introduced and read first time SJ-8
   04/10/80  Senate Referred to Committee on Finance SJ-8
   04/30/80  Senate Recalled from Committee on Finance SJ-27
   05/01/80  Senate Read second time SJ-32
   05/13/80  Senate Read third time and enrolled SJ-19
   05/14/80  House  Ratified R 493 HJ-2839
   05/19/80         Signed By Governor
   05/19/80         Effective date 05/19/80
   05/19/80         Act No. 423
   05/30/80         Copies available

AN ACT TO AMEND SECTION 12-7-2240, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REFUND OF INCOME TAXES BY THE TAX COMMISSION, SO AS TO PROHIBIT THE COMMISSION FROM MAKING REFUNDS TO PERSONS WHO HAVE DEFAULTED ON EDUCATIONAL LOANS.

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

Commission prohibited from making certain refunds

Section 1. Section 12-7-2240 of the 1976 Code is amended to read:

"Section 12-7-2240. If the Commission discovers from the examination of the return or otherwise that the income tax, penalty or interest paid by any taxpayer is in excess of the amount legally due, the Commission may issue to the taxpayer its voucher to the Comptroller General for the refund of such illegally collected income tax, penalty or interest together with the interest provided for in Section 12-7-2310. Upon receipt of such voucher, properly executed and endorsed, the Comptroller General shall issue his warrant to the State Treasurer for the payment to the taxpayer of such refund out of any income tax funds in his possession or out of any such funds that may come into his possession.

The Commission shall keep in its files a duplicate of each such voucher and also a statement which shall set forth the reasons why such refund shall have been ordered.

This section shall be in addition to any remedies for the abatement or refund of taxes that may otherwise be provided by law.

No refund shall be allowed or ordered in an amount less than one dollar. Upon receipt of notification from the appropriate authorities which have authorized educational loans under Chapters 111, 113 or 115 of Title 59 of default on an educational loan, the Commission shall determine if a refund is due to any person who has defaulted on such loan and the entire refund shall be applied to the balance of the loan, or if the refund exceeds the loan balance the Commission shall apply part of the refund to the loan balance and issue the balance of the refund to the taxpayer."

Time effective

Section 2. This act shall take effect upon approval by the Governor.