S 1120 General Bill, By Elliott and Rankin

Similar(H 4672)
 A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO EXEMPTIONS FROM SALES TAX, SECTION 27-32-170,
 RELATING TO EXEMPTION FROM SALES TAX OF SALE OF A VACATION TIME SHARING PLAN,
 AND SECTION 27-32-250, AS AMENDED, RELATING TO EXEMPTION FROM SALES TAX OF
 SALE OF A VACATION MULTIPLE OWNERSHIP INTEREST, ALL SO AS TO EXEMPT FROM SALES
 TAX THE SALE OR RESALE OR THE EXCHANGE OF AN INTEREST IN A VACATION TIME
 SHARING PLAN AND A VACATION MULTIPLE OWNERSHIP INTEREST.

   03/17/98  Senate Introduced and read first time SJ-8
   03/17/98  Senate Referred to Committee on Finance SJ-8
   04/08/98  Senate Recalled from Committee on Finance SJ-4
   04/15/98  Senate Amended SJ-41
   04/15/98  Senate Read second time SJ-41
   04/29/98  Senate Read third time and sent to House SJ-22
   04/30/98  House  Introduced and read first time HJ-3
   04/30/98  House  Referred to Committee on Ways and Means HJ-3
   06/03/98  House  Recalled from Committee on Ways and Means HJ-80
   06/03/98  House  Recommitted to Committee on Ways and Means HJ-95

AMENDED

April 15, 1998

S. 1120

S. Printed 4/15/98--S.

Read the first time March 17, 1998.

A BILL

TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM SALES TAX, SECTION 27-32-170, RELATING TO EXEMPTION FROM SALES TAX OF SALE OF A VACATION TIME SHARING PLAN, AND SECTION 27-32-250, AS AMENDED, RELATING TO EXEMPTION FROM SALES TAX OF SALE OF A VACATION MULTIPLE OWNERSHIP INTEREST, ALL SO AS TO EXEMPT FROM SALES TAX THE SALE OR RESALE OR THE EXCHANGE OF AN INTEREST IN A VACATION TIME SHARING PLAN AND A VACATION MULTIPLE OWNERSHIP INTEREST.

Amend Title To Conform

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

SECTION 1. Section 12-36-2120(31) of the 1976 Code is amended to read:

"(31) vacation time sharing lease plans, vacation multiple ownership interests, and exchanges of interests in them as provided by Chapter 32 of Title 27;"

SECTION 2. Section 27-32-170 of the 1976 Code is amended to read:

"Section 27-32-170. The gross proceeds from the sale or resale of any a vacation time sharing lease plan and the exchange of an interest in a vacation time sharing plan shall be are exempt from sales tax imposed by Chapter 36 of Title 12 under pursuant to the provisions of Section 12-36-2120."

SECTION 3. Section 27-32-250(2) of the 1976 Code is amended to read:

"(2) The sale or resale of a vacation multiple ownership interest and the exchange of an interest in a vacation multiple ownership interest for any interest in the same or another vacation multiple ownership interest is exempt from sales tax imposed by Chapter 36 of Title 12 in the manner provided by Section 27-32-170."

SECTION 4. (A) Section 12-43-230(d) of the 1976 Code, as last amended by Act 403 of 1996, is further amended to read:

"(d) For purposes of this article, 'homeowners' association property' means real and personal property owned by a homeowners' association if:

(1) property owned by the homeowners' association is held for the use, benefit, and enjoyment of members of the homeowners' association;

(2) each member of the homeowners' association has an irrevocable right to use and enjoy on an equal basis, property owned by the homeowners' association, subject to any restrictions imposed by the instruments conveying the right or the rules, regulations, or bylaws of the homeowners' association; and

(3) each irrevocable right to use and enjoy property owned by the homeowners' association is appurtenant to taxable real property owned by a member of the homeowners' association.

Notwithstanding any other provision of this subsection, homeowners' association property shall not be construed so as to include a golf course. Subject to making the appropriate application pursuant to this subsection, a homeowners' association may designate one or any number of its qualifying tracts or parcels as homeowners' association property for purposes of the special valuation contained in Section 12-43-227.

As used in this subsection, 'homeowners' association' means an organization which is organized and operated to provide for the acquisition, construction, management, and maintenance of property.

Homeowners' association property does not come within the provisions of this subsection unless the owners of the real property or their agents make a written application therefor for it on or before the first penalty date for taxes due for the first tax year in which the special valuation is claimed. The application may be with respect to one or any number of tracts or parcels owned by the homeowners' association. The application for the special valuation must be made to the assessor of the county in which the special valuation property is located, on forms provided by the county and approved by the department which includes the reporting of nonqualified gross receipts, and failure to apply constitutes a waiver of the special valuation for that year. No additional annual filing is required while the property remains homeowners' association property and the ownership remains the same, unless the nonqualified gross receipts within the meaning of Section 12-43-227 for the most recent completed tax year either (i) exceed the amount of nonqualified gross receipts with respect to the property reported on the most recently filed application by ten percent or more or (ii) are less than ninety percent of the amount of nonqualified gross receipts with respect to the property reported on the most recently filed application. In such a that case, the owners of the real property or their agents must make additional written application with respect to the property and report the change in nonqualified gross receipts."

(B) This section applies to property tax years beginning after 1997.

SECTION 5. This act takes effect upon approval by the Governor.