H*4691 Session 110 (1993-1994)
H*4691(Rat #0599, Act #0464) General Bill, By House Ways and Means
A Bill to appropriate fiscal year 1992-93 surplus general fund revenues and
allow these appropriations to be carried forward and expended for the same
purpose in fiscal year 1994-95; to amend Section 12-47-440, Code of Laws of
South Carolina, 1976, relating to tax abatements or refunds from the
Department of Revenue and Taxation, so as to provide that these refund
provisions apply to any tax or fee administered by the department, to ratify
the terms of the settlement of the Bass and Perri cases, to provide for state
individual income tax refunds for certain federal retirees to be paid in two
equal installments in 1995 and 1996 and provide the terms and conditions under
which these refunds must be claimed and paid, to provide for the payment of
refunds paid to intestate decedents pursuant to the settlement agreement and
this Act, to increase temporarily the borrowing authority from the income
reserve fund under the installment purchase program for initiating the State
House Renovation Project, to extend the retirement incentive election period
in the case of certain appointed statewide officials and in certain hardship
cases; to amend Act 164 of 1993, the General Appropriations Act for fiscal
year 1993-94, by deleting paragraph 3.54 of Part I, so as to eliminate the
transfer of legislative branch carried forward appropriations to the general
fund of the State; and to repeal Section 12-47-447 of the 1976 Code, relating
to payment of tax refunds.-amended title
02/08/94 House Introduced, read first time, placed on calendar
without reference HJ-12
02/10/94 House Point of order-House Rule 5.10-not on desks for 3
legislative days HJ-516
02/15/94 House Debate interrupted HJ-17
02/16/94 House Debate interrupted HJ-30
02/17/94 House Amended HJ-22
02/17/94 House Read second time HJ-28
02/17/94 House Unanimous consent for third reading on next
legislative day HJ-28
02/18/94 House Read third time and sent to Senate HJ-1
02/22/94 Senate Introduced and read first time SJ-11
02/22/94 Senate Referred to Committee on Finance SJ-11
03/08/94 Senate Committee report: Favorable with amendment Finance SJ-9
03/31/94 Senate Special order SJ-358
04/12/94 Senate Read second time SJ-35
04/12/94 Senate Special order SJ-35
04/21/94 Senate Debate adjourned SJ-47
04/26/94 Senate Amended SJ-65
04/26/94 Senate Read third time and returned to House with
amendments SJ-76
05/10/94 House Debate adjourned on amendments HJ-128
05/11/94 House Senate amendment amended HJ-107
05/11/94 House Returned to Senate with amendments HJ-116
05/26/94 Senate Non-concurrence in House amendment SJ-37
05/26/94 House House insists upon amendment and conference
committee appointed Reps. Reps. Boan,
Cobb-Hunter & Hallman HJ-75
05/27/94 Senate Conference committee appointed Sens. Drummond, V.
Smith, Leventis SJ-4
06/02/94 House Free conference powers granted HJ-79
06/02/94 House Free conference committee appointed Rep. Boan,
Cobb-Hunter & Hallman HJ-81
06/02/94 House Free conference report received and adopted HJ-81
06/02/94 Senate Free conference powers granted SJ-118
06/02/94 Senate Free conference committee appointed Sens.
Drummond, V. Smith, Leventis SJ-118
06/02/94 Senate Free conference report received and adopted SJ-118
06/02/94 Senate Ordered enrolled for ratification SJ-125
06/02/94 Ratified R 599
06/29/94 Certain items vetoed by Governor
06/29/94 Effective date Act No. 464
06/29/94 See act for exception to or explanation of
effective date
07/14/94 Copies available
(A464, R599, H4691)
AN ACT TO APPROPRIATE FISCAL YEAR 1992-93 SURPLUS
GENERAL FUND REVENUES AND ALLOW THESE
APPROPRIATIONS TO BE CARRIED FORWARD AND EXPENDED
FOR THE SAME PURPOSE IN FISCAL YEAR 1994-95; TO AMEND
SECTION 12-47-440, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO TAX ABATEMENTS OR REFUNDS FROM THE
DEPARTMENT OF REVENUE AND TAXATION, SO AS TO PROVIDE
THAT THESE REFUND PROVISIONS APPLY TO ANY TAX OR FEE
ADMINISTERED BY THE DEPARTMENT, TO RATIFY THE TERMS
OF THE SETTLEMENT OF THE BASS AND PERRI CASES, TO
PROVIDE FOR STATE INDIVIDUAL INCOME TAX REFUNDS FOR
CERTAIN FEDERAL RETIREES TO BE PAID IN TWO EQUAL
INSTALLMENTS IN 1995 AND 1996 AND PROVIDE THE TERMS
AND CONDITIONS UNDER WHICH THESE REFUNDS MUST BE
CLAIMED AND PAID, TO PROVIDE FOR THE PAYMENT OF
REFUNDS PAID TO INTESTATE DECEDENTS PURSUANT TO THE
SETTLEMENT AGREEMENT AND THIS ACT, TO INCREASE
TEMPORARILY THE BORROWING AUTHORITY FROM THE
INCOME RESERVE FUND UNDER THE INSTALLMENT PURCHASE
PROGRAM FOR INITIATING THE STATE HOUSE RENOVATION
PROJECT, TO EXTEND THE RETIREMENT INCENTIVE ELECTION
PERIOD IN THE CASE OF CERTAIN APPOINTED STATEWIDE
OFFICIALS AND IN CERTAIN HARDSHIP CASES; TO AMEND ACT
164 OF 1993, THE GENERAL APPROPRIATIONS ACT FOR FISCAL
YEAR 1993-94, BY DELETING PARAGRAPH 3.54 OF PART I, SO AS
TO ELIMINATE THE TRANSFER OF LEGISLATIVE BRANCH
CARRIED FORWARD APPROPRIATIONS TO THE GENERAL FUND
OF THE STATE; AND TO REPEAL SECTION 12-47-447 OF THE 1976
CODE, RELATING TO PAYMENT OF TAX REFUNDS.
Be it enacted by the General Assembly of the State of South Carolina:
Appropriations
SECTION 1. From fiscal year 1992-93 general fund surplus revenues,
there is appropriated from the general fund of the State:
(1) $30,000,000 for the payment of valid state individual income tax
refunds due taxpayers pursuant to the agreement settling Bass, et al. v.
South Carolina and Perri, et al. v. South Carolina, as such refund claims are
determined by the South Carolina Department of Revenue and Taxation
under the terms of that agreement.
(2) $2,716,158 to the Division of General Services, State Budget and
Control Board, for the State House renovations project. (3) $2,000,000 to the Department of Corrections for personnel and
training costs associated with opening new prisons.
Repeal
SECTION 2. Section 12-47-447 of the 1976 Code is
repealed.
Tax refunds
SECTION 3. (A) Section 12-47-440 of the 1976 Code is amended to
read:
"Section 12-47-440. Notwithstanding any other provisions of
law, if it appears to a person that any tax or fee administered by the
department has been erroneously, improperly, or illegally assessed,
collected, or otherwise paid over to the department, the person, by whom or
on whose behalf the tax or fee was paid, may apply to the department to
abate or refund in whole or in part the tax or fee. If the department, after
having given the person a reasonable opportunity to be heard, declines to
make the abatement or refund, the person may, within thirty days of the
date of receipt of notice of the department's action declining the abatement
or refund, bring an action against the department for recovery of the tax or
fee. The provisions of this section apply whether or not the tax or fee in
question was paid under protest, but are only available where the
application provided for here is made in writing to the department within
three years from the date the tax or fee was due to have been paid, without
regard to extensions of time for payment, or if a later date would result,
within one year of payment where an additional tax or fee is assessed and
paid. The action must be brought in the court of common pleas for
Richland County except that a resident of this State may elect to bring the
action in the court of common pleas for the county of his residence. A
taxpayer or licensee who brings an action provided for in Sections
12-47-210 and 12-47-220 is considered as having elected his remedy and is
denied the benefits of this section."
(B) This section takes effect upon approval of this act by the Governor
and applies to tax periods beginning in 1990 and thereafter and to tax
periods beginning before 1990 only if the claim for refund is one that is
under review by the Department of Revenue and Taxation on the effective
date of this act and is not a claim for refund arising under or based upon
Davis v. Michigan.
Federal retiree refunds
SECTION 4. (A) In recognition of the substantial legal issues and
uncertain financial liability that confronted the State of South Carolina in
Bass v. State of South Carolina and Perri v. State of South Carolina, the
General Assembly finds the proposed settlement reached in those cases to
be fair and reasonable. By this act, the General Assembly ratifies and
approves the terms agreed to in the settlement and pledges the financial
resources of the State to implement the terms and conditions of the
settlement as approved by the circuit court.
(B) (1) A timely filed claim for refund for any tax year rendering the
taxpayer eligible for a refund under the settlement agreement is deemed a
timely filed claim for refund for all taxable years to which the settlement
agreement applies, except that any additional refunds due a taxpayer as a
result of this item for those years for which a claim was not filed must be
paid as provided in item (4). No further action is required for any such
taxpayer to receive the refund allowed by this item for those years. All
protests filed pursuant to the settlement agreement on the issue of which
taxable years were included in the taxpayer's claim for refund are
extinguished on the effective date of this section.
(2) A taxpayer who failed to timely file a claim for refund for any year
as provided in the settlement agreement is nevertheless eligible for a refund
if the taxpayer files a claim for refund with the Department of Revenue and
Taxation within the extension period. The refund due a taxpayer under this
item must be paid as provided in item (4). One claim for refund is
sufficient for all applicable years.
(3) The Department of Revenue and Taxation shall place a notice in
newspapers of general circulation in this State notifying taxpayers of the
provisions of this subsection with special emphasis on the provisions of
item (2) and the duration of the extension period. The department shall
also provide written notification to each county veterans' affairs offices.
(4) Refunds payable under this subsection must be calculated in the
manner provided by law but without interest and must be paid in two equal
installments in October, 1995, and October, 1996. After any constitutional
requirements are met, the amounts required for these refunds must be the
first priority item in appropriations from the Capital Reserve Fund for fiscal
years 1994-95 and 1995-96.
(5) The ability to file claim for refunds under this subsection or the
extension of claims filed for one year to other years as provided in this
subsection is a privilege granted taxpayers as a matter of fairness by the
General Assembly and as such normal rules and laws of procedure do not
apply in these cases. Therefore, the determination of the validity of any
claim for refund filed or deemed to be filed pursuant to this subsection is
solely within the jurisdiction of the Department of Revenue and Taxation
and its determination is final and not subject to additional administrative or
judicial review. A taxpayer who files a claim for refund or who is deemed
to have filed a claim for refund under this subsection is ineligible to pursue
that claim for refund under any other provision of law.
(6) As used in this subsection:
(a) "Extension period" is the period beginning April 16,
1992, and ending on the fortieth day after the effective date of this section. (b) "Claim for refund" for purposes of item (2) is a
written communication filed by a taxpayer with the Department of Revenue
and Taxation received or bearing a postmark during the extension period
which contains information sufficient for the department to identify the
taxpayer and determine the validity of the claim. Any claim for refund is
deemed to be for taxable years 1985, 1986, 1987, and 1988 to the extent the
taxpayer received federal pension income in those years.
(c) "Taxpayer" means an individual who filed South
Carolina individual income tax returns in any of the years 1985, 1986,
1987, or 1988 whose South Carolina taxable income included federal
pension income. In the case of a deceased taxpayer, the surviving spouse,
heirs, or personal representative of the deceased taxpayer entitled to receive
the refund allowed by this subsection may file the appropriate claim for
refund on behalf of the deceased taxpayer. For purposes of paying refunds
in the case of a testate deceased taxpayer, such refunds must be paid to the
deceased taxpayer's personal representative. Refunds due an intestate
deceased taxpayer under the provisions of this subsection must be paid as
provided in subsection (D).
(d) "Refund" means a payment made pursuant to item
(4).
(e) "Settlement agreement" means the agreement settling
the claims arising under the Bass and Perri cases approved by the court on
March 2, 1994.
(C) (1) Notwithstanding the provisions of Section 12-7-2250 of the
1976 Code and Title 62 of the 1976 Code, amounts payable to intestate
federal retirees due under the settlement agreement in Bass v. South
Carolina and Perri v. South Carolina must be paid pursuant to the terms of
the settlement so that the amount owed any intestate deceased federal
retiree under the settlement is paid to the deceased retiree's surviving
spouse, or if there is no surviving spouse, to the then living children of the
retiree in equal shares and if there are no children, to the general fund of the
State. This refund by the State, directly to the surviving spouse or then
living children operates as a complete acquittal and discharge to the State
of liability from any suit, claim, or demand of any nature by any heir,
distributee, creditor of the decedent, or any other person. An heir or
beneficiary of the intestate deceased retiree who does not receive any
portion of the refund hereunder has no claim against any other heir or
beneficiary who does receive a portion or all of the refund hereunder.
(2) To conform with the settlement agreement and notwithstanding
the provisions of Section 12-7-2260 of the 1976 Code, if checks issued to
any federal retirees under the agreement are returned to the Department of
Revenue and Taxation as undeliverable, the department shall supply to
class counsel for the federal retirees a list of those federal retirees for whom
checks are undelivered, with class counsel having one year from the date of
the check to deliver the check to the retiree, surviving spouse, or living
children, and upon failure to deliver, the funds represented by the checks
must be paid to the general fund of the State with the state's liability
extinguished from any future suit, claim, or demand by the retiree, the
retiree's surviving spouse, children, or estate. The actions of any party
taken pursuant to the authority contained in this subsection are not
considered in violation of Sections 12-7-1680 or 12-54-240(A) of the 1976
Code.
(D) Refunds paid pursuant to subsection (B) on behalf of an intestate
deceased taxpayer must be paid as provided in subsection (C) and are
subject to the terms and conditions provided in subsection (C) except that
the refund amounts are as calculated under subsection (B)(4) and the
Department of Revenue and Taxation shall perform the functions assigned
to class counsel in subsection (C).
Carry forward
SECTION 5. The appropriations authorized in this act for fiscal year
1993-94 are authorized to be carried forward and expended for the same
purposes in fiscal year 1994-95.
Borrowing limit
SECTION 6. The borrowing authority and limitation of thirty-five million
dollars set forth in Section 1-1-1020 of the 1976 Code, as amended, is
increased to thirty-five million five hundred thousand dollars beginning on
the effective date of this section and ending December 31, 1995. The five
hundred thousand dollar increase in borrowing authority is to be used
exclusively for initiating the State House Renovation Project which shall
include, but not be limited to, payment of architectural and engineering fees
and the costs associated with the transition of State House occupants to,
location of, and renovation of an alternate location. All funds borrowed
under this authorization must be repaid, with interest, in a lump-sum
payment as soon as monies are made available through a regular or
supplemental appropriation authorization.
Retirement incentive
SECTION 7. In the case of a statewide public official appointed by
the Governor with the advice and consent of the Senate whose term expired
in June, 1992, and who continues to serve on a holdover basis on the
effective date of this act, the time to make the irrevocable retirement
incentive election authorized pursuant to Section 17P.6, Part I, Act 164 of
1993 is extended for a period ending June 30, 1994, if the agency with
which the official is associated agrees to the extension. All other
requirements of Section 17P.6, Part I, Act 164 of 1993 apply with respect
to the eligibility of such an official for the retirement incentive.
Retirement incentive
*SECTION 8. In the case of an employee retiring by July 1, 1994, as a
result of the need to deal with a severe family hardship arising after
November 1, 1993, the time to make the irrevocable retirement incentive
election authorized pursuant to Section 17P.6, Part I, Act 164 of 1993 is
extended for a period ending June 30, 1994, but this extension applies only
if the employee's agency head approves the extension and determines that
such a hardship has arisen.
Deletion
*SECTION 9. Act 164 of 1993, the general appropriations act for
fiscal year 1993-94, is amended by deleting paragraph 3.54 of Part
I.
Time effective
SECTION 10. Except where otherwise stated, this act takes effect upon
approval by the Governor.
Printer's Date -- July 7, 1994 -- S.
PLEASE NOTE
*Provisions printed in italic boldface were vetoed by the Governor June 29,
1994.
Provisions not vetoed by the Governor took effect June 29, 1994.
At the time this act was printed, the General Assembly had not taken action
on the vetoes. |