H 3777 Session 114 (2001-2002) H 3777 General Bill, By Robinson Indicates New Matter AMENDED--NOT PRINTED IN THE HOUSE June 20, 2001 H. 3777
S. Printed 6/7/01--S. Read the first time April 25, 2001.
TO AMEND CHAPTER 10, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ENTERPRISE ZONE ACT, BY ADDING SECTION 12-10-95 SO AS TO PROVIDE FOR A WITHHOLDING CREDIT FOR RETRAINING OF A PRODUCTION OR TECHNOLOGY EMPLOYEE; TO AMEND SECTION 12-2-25, RELATING TO TREATMENT OF A SINGLE-MEMBER LIABILITY COMPANY AND A GRANTOR TRUST FOR PURPOSES OF SOUTH CAROLINA INCOME TAX, SO AS TO INCLUDE A "QUALIFIED SUBCHAPTER 'S' SUBSIDIARY" AS AN ENTITY THAT IS NOT REGARDED SEPARATELY FROM ITS OWNER OR GRANTOR; TO AMEND SECTIONS 12-6-40, AS AMENDED, AND 12-6-50, BOTH RELATING TO APPLICATION AND ADOPTION OF THE FEDERAL INTERNAL REVENUE CODE TO STATE TAX LAWS, SO AS TO CLARIFY THE MEANINGS OF CERTAIN TERMS IN THE APPLICATION OF THE PROVISIONS AND TO EXCLUDE ADDITIONAL PROVISIONS CONCERNING THE TAXATION OF FOREIGN INCOME; TO AMEND SECTION 12-6-2210, RELATING TO MEASUREMENT OF THE ENTIRE NET INCOME OF A TAXPAYER, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 12-6-3330, RELATING TO THE DEFINITION OF "SOUTH CAROLINA EARNED INCOME" FOR PURPOSES OF THE TWO WAGE EARNER CREDIT, SO AS TO REFINE CITATIONS TO THE INTERNAL REVENUE CODE; TO AMEND SECTION 12-6-3410, RELATING TO DEFINITIONS FOR PURPOSES OF THE CORPORATE INCOME TAX CREDIT FOR CORPORATE HEADQUARTERS, SO AS TO INCLUDE INFORMATION TECHNOLOGY AS A HEADQUARTERS-RELATED FUNCTION; TO AMEND SECTION 12-6-3500, RELATING TO RETIREMENT PLAN TAX CREDITS, SO AS TO DETERMINE THE TAXPAYER'S LIFE EXPECTANCY FROM THE TIME HE FIRST CLAIMS THE RETIREMENT INCOME DEDUCTION; TO AMEND SECTION 12-6-3520, RELATING TO INCOME TAX CREDIT FOR HABITAT CONSTRUCTION, MAINTENANCE, AND MANAGEMENT, SO AS TO MAKE A TECHNICAL CLARIFICATION BY CROSS-REFERENCING SPECIFIC SECTIONS IMPOSING TAX LIABILITY AND TO ALLOW THE CREDIT TO A MEMBER OF A LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP; TO AMEND SECTIONS 12-10-30, 12-10-50, 12-10-80, AND 12-10-81, ALL AS AMENDED AND ALL RELATING TO THE ENTERPRISE ZONE ACT, SO AS TO CONFORM ITS PROVISIONS TO INCLUDE A JOB DEVELOPMENT CREDIT FOR THE TRAINING OR RETRAINING OF AN INFORMATION TECHNOLOGY EMPLOYEE, TO INCLUDE TECHNOLOGY INTENSIVE FACILITIES AS QUALIFYING BUSINESSES, TO ADJUST THE HOURLY WAGE RANGES FOR DETERMINING THE JOB CREDIT PERCENTAGE, TO PROVIDE FOR PENALTIES FOR FAILURE TO TIMELY PAY TAXES, TO PROVIDE FOR INDEPENDENT CERTIFICATIONS OF SATISFACTION OF REQUIREMENTS, AND TO EFFECT TECHNICAL CHANGES; TO AMEND SECTION 12-13-20, RELATING TO THE DEFINITION OF "NET INCOME" FOR PURPOSES OF INCOME TAX PAYABLE BY A BUILDING AND LOAN ASSOCIATION, SO AS TO UPDATE CROSS-REFERENCES; TO AMEND SECTION 12-13-60, RELATING TO THE APPLICABILITY AND ADOPTION OF APPROPRIATE ENFORCEMENT AND ADMINISTRATION PROVISIONS OF TAX LAW TO TAXATION OF BUILDING AND LOAN ASSOCIATIONS, SO AS TO UPDATE CROSS-REFERENCES AND MAKE OTHER TECHNICAL CHANGES; TO AMEND SECTION 12-20-90, RELATING TO THE CORPORATION LICENSE FEE FOR A HOLDING COMPANY, SO AS TO INSERT "INSURER" IN DISTINGUISHING BETWEEN THE HOLDING COMPANY AND THE SUBSIDIARY FOR PURPOSES OF CALCULATING THE AMOUNT OF THE FEE; TO AMEND SECTION 12-20-110, RELATING TO INAPPLICABILITY OF THE PROVISIONS FOR CORPORATION LICENSE FEES TO CERTAIN ORGANIZATIONS, COMPANIES, AND ASSOCIATIONS, SO AS TO MAKE THE PROVISIONS INAPPLICABLE TO A HOMEOWNERS' ASSOCIATION AND TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 12-28-530, RELATING TO INCREASE IN TAX RATES ON MOTOR FUEL, SO AS TO INCLUDE MOTOR FUEL HELD IN REGISTERED AND NONREGISTERED TANKS; TO AMEND SECTION 12-28-985, RELATING TO FLOORSTOCKS TAX REPORT AND PAYMENT, SO AS TO PROVIDE FOR THE DEPARTMENT TO DETERMINE THE DUE DATE; TO AMEND SECTION 12-28-1135, RELATING TO THE FUEL VENDOR LICENSE AND FEE, SO AS TO REQUIRE THE PURCHASER FROM A TERMINAL SUPPLIER TO BE LICENSED; TO AMEND SECTION 12-28-1730, RELATING TO MONTHLY REPORTS FROM FUEL TRANSPORTERS, SO AS TO IMPOSE A CIVIL PENALTY FOR FAILURE TO INCLUDE CERTAIN INFORMATION; TO AMEND SECTION 12-36-90, RELATING TO DEFINITIONS OF "GROSS PROCEEDS OF SALE" FOR PURPOSES OF THE SALES AND USE TAX, SO AS TO CHANGE THE TAX PAID ON AN UNCOLLECTIBLE DEBT TO A DEDUCTION INSTEAD OF A CREDIT; TO AMEND SECTION 12-36-130, AS AMENDED, RELATING TO DEFINITION OF "SALES PRICE" FOR SALES TAX PURPOSES, SO AS TO EXCLUDE AN AMOUNT ACTUALLY CHARGED OFF AS UNCOLLECTIBLE; TO AMEND SECTION 12-36-910, RELATING TO IMPOSITION OF THE SALES TAX, SO AS TO REQUIRE THE SOURCING OF MOBILE TELECOMMUNICATIONS SERVICES CHARGES SUBJECT TO THE SALES TAX; TO AMEND SECTION 12-36-940, RELATING TO AMOUNTS ADDED TO THE SALES PRICE AS A RESULT OF THE STATE SALES TAX, SO AS TO CLARIFY THE RANGE OF SUMS AND TO PROVIDE FOR THE AMOUNTS WHICH MAY BE ADDED TO THE SALES PRICE FOR PURPOSES OF THE STATE SALES TAX ON ACCOMMODATIONS AND COMBINED STATE SALES TAX AND LOCAL TAX FOR COUNTIES IMPOSING A LOCAL TAX; TO AMEND SECTION 12-36-1310, RELATING TO IMPOSITION OF THE USE TAX, SO AS TO REQUIRE THE SOURCING OF MOBILE TELECOMMUNICATIONS SERVICES WITH CHARGES SUBJECT TO THE USE TAX; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO EXEMPTIONS FROM AD VALOREM TAXATION, SO AS TO INCLUDE A CROSS REFERENCE; TO AMEND SECTION 12-37-930, AS AMENDED, RELATING TO VALUATION OF PROPERTY FOR PURPOSES OF ASSESSMENT OF TAXES, SO AS TO PROVIDE THAT THE DEPARTMENT OF REVENUE DESIGNATE THE BOOK OF VEHICLE VALUATIONS FOR PURPOSES OF ESTABLISHING THE VALUATIONS, TO REDUCE THE MAXIMUM VALUATION FROM NINETY-FIVE PERCENT TO EIGHTY-FIVE PERCENT OF THE SUGGESTED RETAIL PRICE OF A NEW VEHICLE, WATERCRAFT, OR PERSONAL AIRCRAFT, AND TO REQUIRE A TEN PERCENT REDUCTION OF THE PREVIOUS YEAR'S VALUE IN SUBSEQUENT YEARS; TO AMEND SECTION 12-37-2640, RELATING TO DETERMINATION OF THE ASSESSED VALUE OF A MOTOR VEHICLE BY THE COUNTY AUDITOR, SO AS TO REQUIRE THE USE OF THE NATIONALLY RECOGNIZED PUBLICATION OF VEHICLE VALUATIONS AS DESIGNATED BY THE DEPARTMENT, TO PROVIDE A LIMITED ALTERNATIVE, AND TO ESTABLISH A MINIMUM AND MAXIMUM ASSESSED VALUE FOR A MOTORCYCLE BASED ON ITS MODEL YEAR; TO AMEND SECTION 12-37-2680, RELATING TO THE TIME FOR DETERMINATION OF THE ASSESSED VALUE OF A VEHICLE, SO AS TO DELETE THE REQUIREMENT THAT THE DEPARTMENT PUBLISH A VEHICLE VALUATION GUIDE; TO AMEND SECTION 12-54-43, AS AMENDED, RELATING TO CIVIL PENALTIES APPLICABLE TO TAX AND REVENUE LAW, AND SECTION 12-54-44, RELATING TO CRIMINAL PENALTIES APPLICABLE TO TAX AND REVENUE LAW, SO AS TO DELETE THE CRIMINAL PENALTY FOR FAILURE TO DEPOSIT OR PAY TAXES DEDUCTED AND WITHHELD FOR PAYMENT AND TO PROVIDE A CIVIL PENALTY; TO AMEND CHAPTER 54, TITLE 12, RELATING TO COLLECTION AND ENFORCEMENT OF TAXATION, BY ADDING SECTION 12-54-195 SO AS TO PROVIDE FOR A PENALTY ASSESSED AGAINST A PERSON WHO IS RESPONSIBLE FOR REMITTING, BUT FAILS TO REMIT, SALES TAX TO THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-54-85, AS AMENDED, RELATING TO TIME LIMITATIONS AND EXCEPTIONS FOR ASSESSMENT OF TAXES AND FEES, SO AS TO PROVIDE FOR SUSPENSION OF THE RUNNING OF THE STATUTE OF LIMITATIONS WHILE AN INDIVIDUAL TAXPAYER IS CONSIDERED "FINANCIALLY DISABLED" AND TO DEFINE THAT TERM; TO AMEND SECTION 12-54-200, RELATING TO THE REQUIREMENT OF A BOND TO SECURE PAYMENT OF TAXES, SO AS TO PROVIDE THE ALTERNATIVE AND ADDITIONAL SECURITY OF DEPOSIT AND MAINTENANCE OF TAXES DUE IN A SEPARATE ACCOUNT, TO DELETE THE REQUIREMENT OF NOTICE BY CERTIFIED MAIL, AND TO PROVIDE THAT NONCOMPLIANCE IS A MISDEMEANOR TRIABLE IN MAGISTRATE'S COURT; TO AMEND SECTION 12-54-227, AS AMENDED, RELATING TO OUT-OF-STATE COLLECTIONS, SO AS TO DELETE THE REQUIREMENT OF NOTICE BY CERTIFIED MAIL; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO PROHIBITION OF DISCLOSURE OF RECORDS AND REPORTS AND RETURNS FILED WITH THE DEPARTMENT, SO AS TO ALLOW AN EXCEPTION FOR DISCLOSURE OF A DEFICIENCY ASSESSMENT TO AN ATTORNEY CONDUCTING A CLOSING; TO AMEND SECTION 12-56-120, RELATING TO APPEALS FROM THE SETOFF DEBT COLLECTION ACT, SO AS TO PROVIDE THAT THE DEPARTMENT AND THE INTERNAL REVENUE SERVICE ARE EXEMPT AND ARE SUBJECT EXCLUSIVELY TO OTHER APPEAL PROCEDURES; TO AMEND SECTION 12-58-185, RELATING TO EXTENSIONS OF PAYMENT PERIODS, SO AS TO DELETE PRESCRIBED EXTENSION PERIODS; TO AMEND SECTION 12-60-90, RELATING TO THE ADMINISTRATIVE TAX PROCESS FOR PURPOSES OF THE REVENUE PROCEDURES ACT, SO AS TO UPDATE CITATIONS TO THE INTERNAL REVENUE CODE; TO AMEND SECTION 4-37-30, AS AMENDED, RELATING TO SALES AND USE TAXES OR TOLLS AS REVENUE FOR TRANSPORTATION FACILITIES, SO AS TO CLARIFY "MISALLOCATIONS" FOR PURPOSES OF ADJUSTING LATER DISTRIBUTIONS; AND TO AMEND ACT 588 OF 1994, RELATING TO THE CHEROKEE COUNTY SCHOOL DISTRICT 1 SCHOOL BOND-PROPERTY TAX RELIEF ACT AND ACT 441 OF 2000, RELATING TO THE CHESTERFIELD COUNTY SCHOOL DISTRICT SCHOOL BOND-PROPERTY TAX RELIEF ACT, BOTH SO AS TO CLARIFY THE METHOD AND TIMING OF THE CORRECTION OF MISALLOCATION OF SALES TAX REVENUES BY THE STATE TREASURER AND TO PROVIDE FOR THE DISTRIBUTION OF SALES TAX REVENUES UNDER THE ACT WHEN THE DEPARTMENT OF REVENUE IS UNABLE TO IDENTIFY THE SOURCE OF THE REVENUES. Be it enacted by the General Assembly of the State of South Carolina: Amend Title To Conform SECTION 1. Chapter 10, Title 12 of the 1976 Code is amended by adding: "Section 12-10-95. (A) Subject to the conditions in this section, a business engaged in manufacturing or processing operations or technology intensive activities at a manufacturing, processing, or technology intensive facility as defined in Section 12-6-3360(M) and that meets the requirements of Section 12-10-50(B) may negotiate with the council to claim as a credit against withholding five hundred dollars a year for the retraining of a production or technology employee if retraining is necessary for the qualifying business to remain competitive or to introduce new technologies. In addition to the yearly limits, the retraining credit claimed against withholding may not exceed two thousand dollars over five consecutive years for each retrained production or technology employee. (B) A qualifying business is eligible to claim as a retraining credit against withholding the lower amount of the following: (1) the retraining credit for the applicable withholding period as determined by subsection (A); or (2) withholding paid to the State for the applicable withholding period. (C) All retraining must be approved by a technical college under the jurisdiction of the State Board for Technical and Comprehensive Education. A qualifying business must submit a retraining program for approval by the appropriate technical college. The approving technical college may provide the retraining itself, subject to the retraining program, or contract with other training entities to provide the required retraining. (D) Travel and lodging expenses and wages for retraining participants are not reimbursable. (E) The qualifying business must match on a dollar-for-dollar basis the amount claimed as a credit against withholding for retraining. When applicable, the total amount of retraining credits and matching funds must be paid to the technical college that provides the training. All training costs, including costs in excess of the retraining credits and matching funds, are the responsibility of the business. (F) A qualifying business claiming retraining credits pursuant to this section is subject to the reporting and audit requirements in Section 12-10-80(A). (G) A qualifying business may not claim retraining credit for training provided to the following production or technology employees: (a) temporary or contract employees; and (b) employees who are subject to a revitalization agreement, including a preliminary revitalization agreement." SECTION 2. Section 12-2-25 of the 1976 Code is amended to read: "Section 12-2-25. (A) As used in this title and unless otherwise required by the context:
(1) 'partnership' includes a limited liability company taxed for South Carolina income tax purposes as a partnership
(2) 'partner' includes
(3) 'corporation' includes a limited liability company or professional or other association taxed for South Carolina income tax purposes as a corporation
(4) 'shareholder' includes
(B) (1) a single-member limited liability company, which is not taxed for South Carolina income tax purposes as a corporation, is not regarded as an entity separate from its owner; (2) a 'qualified subchapter 'S' subsidiary', as defined in Section 1361(b)(3)(B) of the Internal Revenue Code, is not regarded as an entity separate from the 'S' corporation that owns the stock of the qualified subchapter 'S' subsidiary; and (3) a grantor trust, to the extent that it is a grantor trust, is not regarded as an entity separate from its grantor. (C) For purposes of this section, the Internal Revenue Code reference is as provided in Section 12-6-40(A)." SECTION 3. Section 12-6-40 of the 1976 Code, as last amended by Section 7, Part II, Act 387 of 2000, is further amended to read:
"Section 12-6-40. (A)(1) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, (2)(a) For purposes of this title, 'Internal Revenue Code' is deemed to contain all changes necessary for the State to administer its provisions. Unless a different meaning is required: ( i) 'Secretary', 'Secretary of the Treasury', or 'Commissioner' means the Director of the Department of Revenue. ( ii) 'Internal Revenue Service' means the department. (iii) 'Return' means the appropriate state return. ( iv) 'Income' includes the modifications required by Article 9 of this chapter and allocation and apportionment as provided in Article 17 of this chapter. Other terms in the Internal Revenue Code must be given the meanings necessary to effectuate this item. (b) For purposes of Internal Revenue Code Sections 67 (Two Percent Floor on Miscellaneous Itemized Deductions), 71 (Alimony and Separate Maintenance Payments), 85 (Unemployment Compensation), 165 (Losses), 170 (Charitable Contributions), 213 (Medical and Dental Expenses), 219 (Retirement Savings), 469 (Passive Activity Losses and Credits Limited), and 631 (Gain or Loss in the Case of Timber, Coal, or Domestic Iron Ore), 'Adjusted Gross Income' for South Carolina income tax purposes means a taxpayer's adjusted gross income for federal income tax purposes without regard to the adjustments required by Article 9 and Article 17 of this chapter. (c) For a taxpayer utilizing the provisions of Internal Revenue Code Section 1341 (Computation of Tax where Taxpayer Restores Substantial Amount Held under Claim of Right) for South Carolina tax purposes the phrase 'taxes imposed by this chapter' means taxes imposed by Chapter 6 of this title. (d) The terms defined in Internal Revenue Code Sections 7701, 7702, and 7703 have the same meaning for South Carolina income tax purposes, unless a different meaning is clearly required. (B) All elections made for federal income tax purposes in connection with Internal Revenue Code Sections adopted by this State automatically apply for South Carolina income tax purposes unless otherwise provided. A taxpayer may not make an election solely for South Carolina income tax purposes except for elections not applicable for federal purposes, including filing a combined or composite return as provided in Sections 12-6-5020 and 12-6-5030, respectively.
SECTION 4. Section 12-6-50(11) of the 1976 Code is amended to read:
"(11) Sections 861 through 908, 912, SECTION 5. Section 12-6-2210(A) of the 1976 Code is amended to read:
"(A) If the entire business of a taxpayer is transacted or conducted within this State, the income tax as provided in this chapter is measured by the entire net income of the taxpayer for the taxable year. The entire business of the taxpayer is transacted SECTION 6. Section 12-6-3330(C)(2) of the 1976 Code is amended to read:
"(2) The term 'South Carolina earned income' means income (a) it does not include an amount: ( i) received from a retirement plan or an annuity; ( ii) paid or distributed from an individual retirement plan as defined in Internal Revenue Code Section 7701(a)(37); (iii) received as deferred compensation; or
( iv) received for services performed by an individual employed by his spouse within the meaning of Internal Revenue Code Section 3121(b)(3) (b) Internal Revenue Code Section 911(d)(2)(B) must be applied without regard to the phrase 'not in excess of thirty percent of his share of net profits of such trade or business'." SECTION 7. Section 12-6-3410(J)(1) and (4) are amended to read: "(1) 'Corporate headquarters' means the facility or portion of a facility where corporate staff employees are physically employed, and where the majority of the company's financial, personnel, legal, planning, information technology, or other headquarters related functions are handled either on a regional or national basis. A corporate headquarters must be a regional corporate headquarters or a national corporate headquarters as defined below: (a) National corporate headquarters must be the sole corporate headquarters in the nation and handle headquarters related functions on a national basis. A national headquarters shall be deemed to handle headquarters related functions on a national basis from this State if the corporation has a facility in this State from which the corporation engages in interstate commerce by providing goods or services for customers outside of this State in return for compensation. (b) Regional corporate headquarters must be the sole corporate headquarters within the region and must handle headquarters related functions on a regional basis. For purposes of this section, 'region' or 'regional' means a geographic area comprised of either: ( i) at least five states, including this State, or (ii) two or more states, including this State, if the entire business operations of the corporation are performed within fewer than five states. (4) 'Headquarters related functions and services' are those functions involving financial, personnel, administrative, legal, planning, information technology, or similar business functions." SECTION 8. Section 12-6-3500 of the 1976 Code is amended to read:
"Section 12-6-3500. If the right to receive retirement income by a taxpayer allowed the deduction pursuant to Section 12-6-1170 was earned by the taxpayer while residing in another state which imposed state income tax on the employee's contributions, a credit is allowed against the taxpayer's South Carolina income tax liability in an amount sufficient to offset the taxes paid the other state. This credit must be claimed over the taxpayer's lifetime. The department shall prescribe the amount of the annual credit based on the taxpayer's life expectancy at the time SECTION 9. Section 12-6-3520 of the 1976 Code is amended to read:
"Section 12-6-3520. (A) There (B) All costs must be incurred on land that has been designated as a certified management area for endangered species enumerated in Section 50-15-40 or for nongame and wildlife species determined to be in need management under Section 50-15-30.
(C) The tax credit allowed by this section must be claimed in the year that
(D) If
(E)(1) An 'S' corporation, limited liability company, or partnership that qualifies for the credit
(2) The amount of the credit allowed a shareholder, member, or partner (3) For purposes of this subsection, 'limited liability company' means a limited liability company taxed like a partnership." SECTION 10. Section 12-10-30 of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read: "Section 12-10-30. As used in this chapter:
(1) 'Council' means the (2) 'Department' means the South Carolina Department of Revenue.
(3) 'Employee' means an employee of the qualifying business who works full time (4) 'Gross wages' means wages subject to withholding. (5) 'Job development credit' means the amount a qualifying business may claim as a credit against employee withholding pursuant to Sections 12-10-80 and 12-10-81 and a revitalization agreement. (6) 'New job' means a job created or reinstated as defined in Section 12-6-3360(M)(3).
(7) 'Qualifying business' means a business that meets the requirements of Section 12-10-50 and other applicable requirements of this chapter (8) 'Project' means an investment for one or more purposes pursuant to this chapter needed for a qualifying business to locate, remain, or expand in this State and otherwise fulfill the requirements of this chapter. (9) 'Preliminary revitalization agreement' means the application by the qualifying business for benefits pursuant to Section 12-10-80 or 12-10-81 if the council approves the application and agrees in writing at the time of approval to allow the approved application to serve as the preliminary revitalization agreement. The date of the preliminary revitalization agreement is the date of the council approval. (10) 'Revitalization agreement' means an executed agreement entered into between the council and a qualifying business that describes the project and the negotiated terms and conditions for a business to qualify for a job development credit pursuant to Section 12-10-80 or 12-10-81. (11) 'Qualifying expenditures' means those expenditures that meet the requirements of Section 12-10-80(C) or 12-10-81(D). (12) 'Withholding' means employee withholding pursuant to Chapter 8 of this title.
(13) 'Technology employee' means an employee (14) 'Production employee' means an employee directly engaged in manufacturing or processing at a manufacturing or processing facility as defined in Section 12-6-3360(M). (15) 'Retraining agreement' means an agreement entered into between a business and the council in which a qualifying business is entitled to retraining credit pursuant to Section 12-10-95. (16) 'Retraining credit' means the amount that a business may claim as a credit against withholding pursuant to Section 12-10-95 and the retraining agreement. (17) 'Technology intensive activities' means the design, development, and introduction of new products or innovative manufacturing processes, or both, through the systematic application of scientific and technical knowledge at a technology intensive facility as defined in Section 12-6-3360(M)." SECTION 11. Section 12-10-50 of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read: "Section 12-10-50. (A) To qualify for the benefits provided in this chapter, a business must be located within this State and must: (1) be engaged primarily in a business of the type identified in Section 12-6-3360; (2) provide a benefits package, including health care, to full-time employees at the project;
(3) enter into a revitalization agreement that is approved by the council and that describes a minimum job requirement and minimum capital investment requirement for the project as provided in Section 12-10-90 (4) have negotiated incentives that council has determined are appropriate for the project, and the council shall certify that: (a) the total benefits of the project exceed the costs to the public; and (b) the business otherwise fulfills the requirements of this chapter. (B) To qualify for benefits pursuant to Section 12-10-95, a business must: (1) be engaged in manufacturing or processing operations or technology intensive activities at a manufacturing, processing, or technology intensive facility as defined in Section 12-6-3360(M); (2) provide a benefits package, including health care, to employees being retrained; and (3) enter into a retraining agreement with the council." SECTION 12. Section 12-10-80 of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read: "Section 12-10-80. (A) A business that qualifies pursuant to Section 12-10-50(A) and has certified to the council that the business has met the minimum job requirement and minimum capital investment provided for in the revitalization agreement may claim job development credits as determined by this section. (1) A business may claim job development credits against its withholding on its quarterly state withholding tax return for the amount of job development credits allowable pursuant to this section. (2) A business that is current with respect to its withholding tax and other tax due and owing the State and that has maintained its minimum employment and investment levels identified in the revitalization agreement may claim the credit on a quarterly basis beginning with the first quarter after the council's certification to the department that the minimum employment and capital investment levels were met for the entire quarter. If a qualifying business is not current as to all taxes due and owing to the State as of the date of the return on which the credit would be claimed, without regard to extensions, the business is barred from claiming the credit that would otherwise be allowed for that quarter.
(3) A qualifying business may (4) To be eligible to apply to the council to claim a job development credit, a qualifying business shall create at least ten new, full-time jobs, as defined in Section 12-6-3360(M), at the project described in the revitalization agreement within five years of the effective date of the agreement. (5) A qualifying business is eligible to claim a job development credit pursuant to the revitalization agreement for not more than fifteen years.
(6) To the extent any return of an overpayment of withholding that results from claiming job development credits is not used as permitted by subsection (C) or
(7) (8) If a qualifying business claims job development credits pursuant to this section, it shall make its payroll books and records available for inspection by the council and the department at the times the council and the department request. Each qualifying business claiming job development credits pursuant to this section shall file with the council and the department the information and documentation requested by the council or department respecting employee withholding, the job development credit, and the use of any overpayment of withholding resulting from the claiming of a job development credit according to the revitalization agreement. (9) Each qualifying business claiming in excess of ten thousand dollars in a calendar year must furnish an audited report prepared by an independent certified public accountant that itemizes the sources and uses of the funds. The audited report must be filed with the council and the department no later than June thirtieth following the calendar year in which the job development credits are claimed, except when a qualifying business obtains the written approval by the council for an extension of that date. Extensions may be granted only for good cause shown. The department shall impose a penalty pursuant to Section 12-54-210 for all reports filed after June thirtieth or the approved extension date, whichever is later. (10) Each qualifying business claiming ten thousand dollars or less in any calendar year must furnish a report prepared by the company that itemizes the sources and uses of the funds. This report must be filed with the council and the department no later than June thirtieth following the calendar year in which the job development credits are claimed, except when a qualifying business obtains the written approval by the council for an extension of that date. Extensions may be granted only for good cause shown. The department shall impose a penalty pursuant to Section 12-54-210 for all reports filed after June thirtieth or the approved extension date, whichever is later. (11) An employer may not claim an amount that results in an employee's receiving a smaller amount of wages on either a weekly or on an annual basis than the employee would receive otherwise in the absence of this chapter. (B)(1) The maximum job development credit a qualifying business may claim for new employees is limited to the lesser of withholding tax paid to the State on a quarterly basis or the sum of the following amounts:
(a) two percent of the gross wages of each new employee who earns
(b) three percent of the gross wages of each new employee who earns
(c) four percent of the gross wages of each new employee who earns
(d) five percent of the gross wages of each new employee who earns
(2) The hourly gross wage figures in item (1) must be adjusted annually by an inflation factor determined by the State Budget and Control Board. (C) To claim a job development credit, the qualifying business must incur qualified expenditures at the project or for utility or transportation improvements that serve the project. To be qualified, the expenditures must be:
(1) incurred during the term of the revitalization agreement, including a preliminary revitalization agreement, or within sixty days before (2) authorized by the revitalization agreement; and (3) used for any of the following purposes: (a) training costs and facilities; (b) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise; (c) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunications; (d) fixed transportation facilities including highway, rail, water, and air; (e) construction or improvements of real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations; (f) employee relocation expenses associated with new or expanded technology intensive facilities as defined in Section 12-6-3360(M)(14); (g) financing the costs of a purpose described in items (a) through (f). (D)(1) The amount of job development credits a qualifying business may claim for its use for qualifying expenditures is limited according to the designation of the county as defined in Section 12-6-3360(B) as follows:
(2) The amount that may be claimed as a job development credit by a qualifying business is limited by this subsection and by the revitalization agreement. The council may approve a waiver of ninety-five percent of the limits provided in item (1) for a qualifying business making a significant capital investment as defined in Section 4-12-30(D)(4), 4-29-67(D)(4), or 12-44-30(8). (3) The county designation of the county in which the project is located at the time the qualifying business enters into a preliminary revitalization agreement with the council remains in effect for the entire period of the revitalization agreement, except as to additional jobs created pursuant to an amendment to a revitalization agreement entered into before June 1, 1997, as provided in Section 12-10-60. In that case the county designation on the date of the amendment remains in effect for the remaining period of the revitalization agreement as to any additional jobs created after the effective date of the amendment. This item does not apply to a business whose application for job development fees or credits pursuant to Section 12-10-81 has been approved by council before the effective date of this act. (E) The council shall certify to the department the maximum job development credit for each qualifying business. After receiving certification, the department shall remit an amount equal to the difference between the maximum job development credit and the job development credit actually claimed to the State Rural Infrastructure Fund as defined and provided in Section 12-10-85.
(G) For purposes of the job development credit allowed by this section, an employee is a person whose job was created in this State. (H) Job development credits may not be claimed by a governmental employer who employs persons at a closed or realigned military installation as defined in Section 12-10-88(E)." SECTION 13. Section 12-10-81 of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read: "Section 12-10-81. (A) A business may claim a job development credit as determined by this section if the: (1) council approves the use of this section for the business; (2) business qualifies pursuant to Section 12-10-50; and
(3) business is a tire manufacturer that has more than four hundred twenty-five million dollars in capital invested in this State and employs more than one thousand employees in this State and that commits within a period of five years from the date of a revitalization agreement, to invest an additional three hundred fifty million dollars and create an additional three hundred fifty jobs in this State qualifying for job development fees or credits pursuant to current or future revitalization agreements; except that the business must certify to the council that the business has satisfied all minimum capital investment and job requirements identified in the revitalization agreements but not certified by the council to the department before July 1, 2001. The council, in its discretion, may extend the five-year period for two additional years if the business has made a commitment to the additional three hundred fifty million dollars and makes substantial progress toward satisfying the goal before the end of the initial five-year period. A business that represents to the council its intent to qualify pursuant to this section and is approved by the council may put job development fees computed pursuant to this section into an escrow account until the date the business (B)(1) A business qualifying pursuant to this section may claim its job development credit against its withholding on its quarterly state withholding tax return for the amount of job development credit allowable pursuant to this section for not more than fifteen years. Job development credits allowed pursuant to subsection (C)(1)(a) through (d) of this section apply only to withholding on jobs created pursuant to a revitalization agreement adopted pursuant to this section and to the amounts withheld on wages and salaries on those jobs. (2) A business that is current with respect to its withholding tax as well as any other tax due and owing the State and that has maintained its minimum employment and investment levels identified in the revitalization agreement may claim the credit on a quarterly basis beginning with the quarter subsequent to the council's certification to the department that the minimum employment and capital investment levels have been met for the entire quarter. If a qualifying business is not current as to all taxes due and owing to the State as of the date of the return on which the credit would be claimed, without regard to extensions, the business is barred from claiming the credit that would otherwise be allowed for that quarter. (3) To be eligible to apply to the council to claim a job development credit pursuant to this section, a qualifying business must create at least ten new, full-time jobs as defined in Section 12-6-3360(M) at the project or projects described in the revitalization agreement. (4) To the extent a return of an overpayment of withholding that results from claiming job development credits is not used as permitted by subsection (D), it must be treated as misappropriated employee withholding. (5) Job development credits may not be claimed for purposes of this section with regard to an employee whose job was created in this State before the taxable year the qualifying business enters into a preliminary revitalization agreement. (6) If a qualifying business claims job development credits pursuant to this section, it must make its payroll books and records available for inspection by the council and the department at the times the council and the department request. Each qualifying business claiming job development credits pursuant to this section must file with the council and the department the information and documentation they request respecting employee withholding, the job development credit, and the use of overpayment of withholding resulting from the claiming of a job development credit according to the revitalization agreement. (7) Each qualifying business must furnish an audited report prepared by an independent certified public accountant that itemizes the sources and uses of the funds. The audited report must be filed with the council and the department no later than June thirtieth following the calendar year in which the job development credits are claimed, except when a qualifying business obtains written approval of council for an extension of that date. Extensions may be granted for good cause shown. The department shall impose a penalty pursuant to Section 12-54-210 for all reports filed after June thirtieth or the approved extension date, whichever is later. (8) An employer may not claim an amount that results in an employee's receiving a smaller amount of wages on either a weekly or on an annual basis than the employee would otherwise receive in the absence of this chapter. (C)(1) The maximum job development credit a qualifying business may claim for new employees is determined by the sum of the following amounts:
(a) two percent of the gross wages of each new employee who earns
(b) three percent of the gross wages of each new employee who earns
(c) four percent of the gross wages of each new employee who earns
(d) five percent of the gross wages of each new employee who earns (e) the increase in the state sales and use tax of the business from the year of the effective date of its revitalization agreement pursuant to this section and subsequent years, over its state sales and use tax for the first of the three years preceding the effective date of this revitalization agreement.
(2) The hourly base wages in item (1) must be adjusted annually by the inflation factor determined by the State Budget and Control Board. (D) To claim a job development credit, the qualifying business must incur expenditures at the project or for utility or transportation improvements that serve the project. To be qualified, the expenditures must be: (1) incurred during the term of the revitalization agreement, including a preliminary revitalization agreement, or within sixty days before council's receipt of an application for benefits pursuant to this section; (2) authorized by the revitalization agreement; and (3) used to reimburse the business for: (a) training costs and facilities; (b) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise; (c) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunication; (d) fixed transportation facilities including highway, rail, water, and air; or (e) construction or improvements of real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations. (E)(1) For purposes of subsection (C)(1)(a) through (d), the amount of job development credits a qualifying business may claim for its use for qualifying expenditures is limited according to the designation of the county as defined in Section 12-6-3360(B) as follows: (a) one hundred percent of the maximum job development credits may be claimed by businesses located in counties designated as 'least developed'; (b) eighty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'underdeveloped'; (c) seventy percent of the maximum job development credits may be claimed by businesses located in counties designated as 'moderately developed'; or (d) fifty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'developed'. (2) For purposes of this subsection, the county designation of the county in which the project is located at the time the qualifying business enters into a preliminary revitalization agreement with the council remains in effect for the entire period of the revitalization agreement. (3) The amount claimed by a qualifying business is limited by this subsection and the terms of the revitalization agreements. The business may use either the job development escrow procedure pursuant to revitalization agreements with effective dates before 1997 or the job development credit, or a combination of the two. For a business qualifying pursuant to this section, the council also may approve or waive sections of a revitalization agreement and rules of the council, in the council's discretion, to assist the business. (4) The council shall certify to the department the maximum job development credit for each qualifying business. After receiving certification, the department shall remit an amount equal to the difference between the maximum job development credit and the job development credit actually claimed to the State Rural Infrastructure Fund as defined and provided in Section 12-10-85. (F) A job development credit of a qualifying business permanently lapses upon expiration or termination of the revitalization agreement. If an employee is terminated, the qualifying business immediately must cease to claim job development credits as to that employee.
(G)
SECTION 14. Section 12-13-20 of the 1976 Code is amended to read:
"Section 12-13-20. The term 'net income', as used in this chapter, means taxable income as determined for a regular corporation in Chapter SECTION 15. Section 12-13-60 of the 1976 Code is amended to read:
"Section 12-13-60. For the purpose of administration, enforcement, collection, liens, penalties, and SECTION 16. Section 12-20-90 of the 1976 Code is amended to read: "Section 12-20-90. The amount of the license fee required by Section 12-20-50 for a bank holding company, insurance holding company system, and savings and loan holding company must be measured by the capital stock and paid-in surplus of the holding company exclusive of the capital stock and paid-in surplus of a bank, insurer, or savings and loan association that is a subsidiary of the holding company. For the purposes of this section, 'bank', 'bank holding company', and 'subsidiary' of a bank holding company have the same definitions as in Section 34-24-20; 'insurer', 'insurance holding company system', and a 'subsidiary' of an insurance holding company system have the same definitions as in Section 38-21-10; and savings and loan 'association', 'savings and loan holding company', and a 'subsidiary' of a savings and loan company have the same definitions as in Section 34-28-300." SECTION 17. Section 12-20-110 of the 1976 Code is amended to read: "Section 12-20-110. The provisions of this chapter do not apply to any:
(1) nonprofit corporation organized (2) volunteer fire department and rescue squad;
(3) cooperative organized (4) bank, building and loan association, or credit union doing a strictly mutual business;
(5) insurance company or association including
(6) foreign corporation whose entire income is (7) homeowners' association within the meaning of Internal Revenue Code Section 528(c)(1)." SECTION 18. Section 12-28-1135(A) of the 1976 Code is amended to read:
"(A) Each person who SECTION 19. A. Section 12-28-1730(E) of the 1976 Code is amended to read:
"(E) The department may impose a civil penalty against every terminal operator who wilfully fails to meet shipping B. Section 12-28-1730 of the 1976 Code is amended by adding: "(H) If a person liable for the tax files a return and wilfully fails to provide all information required by the department, the department may add to the tax the amount provided in Section 12-54-43(C)(1)." SECTION 20. Section 12-36-90(2)(h) of the 1976 Code is amended to read:
"(h) the sales price, not including sales tax, of property on sales which are actually charged off as bad debts or uncollectible accounts for state income tax purposes. A taxpayer who pays the tax on the unpaid balance of an account which has been found to be worthless and is actually charged off for state income tax purposes may take SECTION 21. Section 12-36-130 of the 1976 Code, as last amended by Section 2, Act 283 of 2000, is further amended by adding a paragraph at the end to read: "The term 'sales price' as defined in this section, also does not include the sales price, not including tax, of property on sales which are actually charged off as bad debts or uncollectible accounts for state income tax purposes. A taxpayer who pays the tax on the unpaid balance of an account which has been found to be worthless and is actually charged off for state income tax purposes may take a deduction for the sales price charged of as a bad debt or uncollectible account on a return filed pursuant to this chapter, except that if an amount charged off is later paid in whole or in part to the taxpayer, the amount paid must be included in the first return filed after the collection and the tax paid. The deduction allowed by this paragraph must be taken within one year of the month the amount was determined to be a bad debt or uncollectible account." SECTION 22. Section 12-36-910(B)(3) of the 1976 Code is amended to read:
"(3) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages SECTION 23. Section 12-36-910(B) of the 1976 Code is amended by adding: "(5) gross proceeds accruing or proceeding from the sale or recharge at retail for prepaid wireless calling arrangements." (a) 'Prepaid wireless calling arrangements' means communication services that: ( i) are used exclusively to purchase wireless telecommunications; ( ii) are purchased in advance; (iii) allow the purchaser to originate telephone calls by using an access number, authorization code, or other means entered manually or electronically; and ( iv) are sold in units or dollars which decline with use in a known amount. (b) All charges for prepaid wireless calling arrangements must be sourced to the: ( i) location in this State where the over-the-counter sale took place;
( ii)
(iii) either the billing address or location associated with the mobile telephone number if the sale did not take place at the seller's location and no item is SECTION 24. Section 12-36-940 of the 1976 Code is amended to read:
"Section 12-36-940. (A) (1) no amount on sales of ten cents or less;
(2) one cent on sales of eleven
(3) two cents on sales of twenty-one
(4) three cents on sales of forty-one
(5) four cents on sales of sixty-one
(6) five cents on sales of eighty-one cents
(7) one cent additional for each twenty cents or major fraction (B) The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect them from the purchaser does not relieve the taxpayer from the tax levied by this article. (C) For purposes of the state sales tax on accommodations and applicable combined state sales and local tax for counties imposing a local sales tax collected by the department on their behalf, retailers may add to the sales price an amount equal to the total state and local sales tax rate times the sales price. The amount added to the sales price may not be less than the amount added pursuant to subsection (A). In calculating the tax due, retailers may round a fraction of more than one-half of a cent to the next whole cent and a fraction of a cent of one-half or less must be eliminated. The inability, impracticability, refusal, or failure to add the tax to the sales price as allowed by this subsection and collect them from the purchaser does not relieve the taxpayer of his responsibility to pay tax." SECTION 25. Section 12-36-1310(B)(3) of the 1976 Code is amended to read: "(3) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages , provided that gross proceeds from the sale of prepaid wireless calling arrangements subject to tax at retail pursuant to item (5) must not be subject to tax pursuant to this item. Effective for bills rendered on or after August 1, 2002, charges for mobile telecommunications services subject to the tax under this item must be sourced in accordance with the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code. The term 'charges for mobile telecommunications services' is defined for purposes of this section the same as it is defined in the Mobile Telecommunications Sourcing Act. All other definitions and provisions of the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code are adopted;" SECTION 26. Section 12-37-220(C) of the 1976 Code is amended to read:
"(C) Upon approval by the governing body of the county, the five-year partial exemption allowed pursuant to subsections (A)(7), SECTION 27. Section 12-54-43 of the 1976 Code, as last amended by Act 399 of 2000, is further amended by adding an appropriately lettered subsection to read:
"( ) A failure to deposit or pay taxes deducted and withheld pursuant to Article 5 of Chapter 8 subjects the withholding agent to a penalty of not less than ten dollars nor more than one thousand dollars. The penalty imposed by this item applies to failure to comply with the provisions of Section 12-54-250." SECTION 28. Section 12-54-44(C) of the 1976 Code is amended to read:
"(C) SECTION 29. Chapter 54, Title 12 of the 1976 Code is amended by adding: "Section 12-54-195. (A) As used in this section, 'responsible person' includes any officer, partner, or employee of the taxpayer who has a duty to pay to the department the sales tax due by the taxpayer or use tax required or authorized to be collected by the retailer pursuant to Chapter 36 of this title. (B) If a retailer adds and collects the sales tax as permitted by Section 12-36-940, or collects the use tax from the purchaser as required by Section 12-36-1350, but the retailer fails to remit the tax collected to the department, then any responsible person may be held liable, individually and personally, for a penalty equal to one hundred percent of the tax collected but not remitted to the department. The tax is not collectible from the retailer to the extent the penalty imposed by this subsection is collected from a responsible person." SECTION 30. Section 12-54-85 of the 1976 Code, as last amended by Act 399 of 2000, is further amended by adding an appropriately numbered subsection at the end to read: "( )(1) An individual taxpayer is 'financially disabled' if he is unable to manage his financial affairs by reason of a medically determinable physical or mental impairment that is expected to result in death or that has lasted or is expected to last for a continuous period of not less than twelve months. An individual taxpayer does not have that impairment for this purpose unless proof of the existence of the impairment is provided to the department in the form and manner the department requests. (2) The running of the period of limitation provided in subsection (F) is suspended during a period an individual taxpayer is considered financially disabled. (3) An individual taxpayer may not be treated as financially disabled during a period that his spouse or another person is authorized lawfully to act on his behalf in financial matters." SECTION 31. Section 12-54-85(F) of the 1976 Code is amended to read:
"(F)(1) Except as provided in subsection (D) (2) If the claim was filed by the taxpayer during the three-year period prescribed in item (1), the amount of the credit or refund may not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to three years plus the period of any extension of time for filing the return. (3) If the claim was not filed within the three-year period, the amount of the credit or refund may not exceed the portion of the tax paid during the two years immediately preceding the filing of the claim. (4) If no claim was filed, the credit or refund may not exceed the amount which would be allowable under item (2) or (3), as the case may be, as if a claim were filed on the date the credit or refund is allowed. (5) For the purposes of this subsection: (a) A return filed before the last day prescribed for the filing is considered as filed on the last day. Payment of any portion of the tax made before the last day prescribed for the payment of the tax is considered made on the last day. The last day prescribed for filing the return or paying the tax must be determined without regard to any extension of time. (b) Any tax actually withheld at the source in respect of the recipient of income, is considered to have been paid by the recipient on the last day prescribed for filing his return for the taxable year, determined without regard to any extension of time for filing the return, with respect to which the taxpayer would be allowed a credit for the amount withheld. (c) Any amount paid as estimated income tax for any taxable year is considered to have been paid on the last day prescribed for filing the return for the taxable year, determined without regard to any extension of time for filing the return. (6) In the case of an individual, the running of the period specified in this subsection is suspended for a period of the individual's life during which he is financially disabled. For purposes of this item, an individual is financially disabled if he is unable to manage his financial affairs by reason of a medically determinable physical or mental impairment that is not expected to result in death or which has lasted or is expected to last for a continuous period of not less than twelve months. An individual must not be treated as financially disabled for a period during which his spouse or another person is authorized to act on his behalf in financial matters. An individual must not be considered financially disabled unless the following statements are submitted as part of the claim for credit or refund: (a) a written statement signed by a physician qualified to make the determination that provides the: ( i) name and a brief description of the physical or mental impairment; ( ii) physician's medical opinion that the physical or mental impairment prevented the taxpayer from managing his financial affairs; (iii) physician's medical opinion that the taxpayer's physical or mental impairment resulted in, or is expected to result in, death, or that it has lasted, or is expected to last, for a continuous period of not less than twelve months; and ( iv) specific time period during which the taxpayer was prevented by the physical or mental impairment from managing his financial affairs, to the best of the physician's knowledge; and (b) a written statement by the taxpayer or the person signing the claim for credit or refund that the person, including the taxpayer's spouse, was not authorized to act on his behalf in financial matters for the period during which he was unable to manage his own financial affairs. Alternatively, if a person was authorized to act on the taxpayer's behalf in financial matters during part of that period of disability, the statement must contain the beginning and ending dates of the period of time the person was authorized; and (c) other information the department may require. The department, in its discretion, may adopt a determination made by the Internal Revenue Service with respect to an individual, and may follow rules issued by the Internal Revenue Service or Department of Treasury with regard to interpreting Internal Revenue Code section 6511(h)." SECTION 32. Section 12-54-200 of the 1976 Code is amended to read:
"Section 12-54-200. (B) The amount of the bond must be determined by the department and may not be greater than three times the estimated average liability each filing period of the person required to file the return. A cash bond must be held by the State Treasurer, without interest, as surety conditioned upon prompt payment of all taxes, penalties, and interest imposed by law upon the person. (C) If a person is required to maintain a separate account, he must give the name of the financial institution, the account number, and other information the department requires. Taxes, penalties, and interest due must be withdrawn from the account by preprinted, consecutively numbered checks signed by a properly authorized officer, partner, manager, employee, or member of the taxpayer and made payable to the department. Monies deposited in the account may not be commingled with other funds. The department, at its discretion, may apply Section 12-54-250, if the amount due from the taxpayer is twenty thousand dollars or more.
(D) When
(F) A person who fails to comply with this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than thirty days, or both. Offenses under this section are triable in magistrate's court. These penalties are in addition to other penalties provided by law." SECTION 33. Section 12-54-227(A)(2) of the 1976 Code is amended to read:
"(2) For purposes of this section, 'delinquent tax claim' means a tax liability that is due and owing for a period longer than six months and for which the taxpayer has been given at least three notices requesting payment and for any subsequent tax debts issued, one notice of which SECTION 34. Section 12-54-240(B)(6) of the 1976 Code is amended to read: "(6) disclosure of a deficiency assessment to a probate court or to an attorney conducting a closing, the filing of a tax lien for uncollected taxes, and the issuance of a notice of levy;" SECTION 35. Section 12-56-120 of the 1976 Code is amended to read:
"Section 12-56-120. The department SECTION 36. Section 12-58-185(A) of the 1976 Code is amended to read:
"(A) The department, in its discretion, may accept installment payment for amounts due for a period not to exceed one year from the date the payment was due originally. Interest accrues during the installment period, pursuant to Section 12-54-25. In addition, the department may extend the time for payment of an amount due it SECTION 37. Section 12-60-90(C) of the 1976 Code is amended to read: "(C) Taxpayers may be represented during the administrative tax process by:
(1) the same individuals who (2) a real estate appraiser who is registered, licensed, or certified pursuant to Chapter 60 of Title 40 during the administrative tax process in a matter limited to questions concerning the valuation of real property." SECTION 38. Section 4-37-30(A)(15) of the 1976 Code, as amended by Act 368 of 2000, is further amended to read:
"(15) The revenues of the tax collected in each county pursuant to this section must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues and all interest earned on the revenues while on deposit with him quarterly to the county in which the tax is imposed and these revenues and interest earnings must be used only for the purpose stated in the imposition ordinance. The State Treasurer may correct SECTION 39. A. Section 6(A) of Act 588 of 1994 is amended to read:
"(A) The revenues of the tax collected in the county under this act must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue and Taxation of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer who holds the debt service funds established for payment of principal and interest on the bonds to which the tax is applicable. The State Treasurer may correct B. Section 6 of Act 588 of 1994, as last amended by Act 458 of 1998, is further amended by adding at the end: "(D) Annually, in the month of June, funds collected by the Department of Revenue from the Cherokee County School District 1 School Bond-Property Tax Relief Act which are not identified as to the governmental unit due the tax after reasonable effort by the department to determine the source of collection must be transferred to the State Treasurer's Office. The State Treasurer shall distribute these funds to the county treasurer in the county area in which the tax is imposed and the revenues must be used only for the purposes stated in the imposition resolution. The State Treasurer shall calculate this supplemental distribution on a proportional basis based on the current fiscal year's county area revenue collections." SECTION 40. A. Section 7A of Act 441 of 2000 is amended to read:
"(A) The revenues of the tax collected in the county under this act must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the department of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer, who shall hold the debt service funds for payment of principal and interest on the bonds to which the tax is applicable. The State Treasurer may correct B. Section 7 of Act 441 of 2000 is amended by adding at the end: "(D) Annually, in the month of June, funds collected by the Department of Revenue from the Chesterfield County School District School Bond-Property Tax Relief Act which are not identified as to the governmental unit due the tax after reasonable effort by the department to determine the source of collection must be transferred to the State Treasurer's Office. The State Treasurer shall distribute these funds to the county treasurer in the county area in which the tax is imposed and the revenues must be used only for the purposes stated in the imposition resolution. The State Treasurer shall calculate this supplemental distribution on a proportional basis based on the current fiscal year's county area revenue collections." SECTION 41. Section 12-4-580(D)(1) is amended to read:
"(1) 'governmental entity' means the State and any state agency, board, committee, department, SECTION 42. Chapter 43, Title 12, of the 1976 Code is amended by adding: "Section 12-43-285. (A) The governing body of a political subdivision on whose behalf a property tax is billed by the county auditor shall certify in writing to the county auditor that the millage rate levied is in compliance with laws limiting the millage rate imposed by that political subdivision. (B) If a millage rate is in excess of that authorized by law, the county treasurer shall either issue refunds or transfer the total amount in excess of that authorized by law, upon collection, to a separate, segregated fund, which must be credited to taxpayers in the following year as instructed by the governing body of the political subdivision on whose behalf the millage was levied. An entity submitting a millage rate in excess of that authorized by law shall pay the costs of implementing this subsection or a pro rata share of the costs if more than one entity submits an excessive millage rate." SECTION 43. Section 4-1-170 of the 1976 Code is amended to read: "Section 4-1-170. (A) By written agreement, counties may develop jointly an industrial or business park with other counties within the geographical boundaries of one or more of the member counties as provided in Section 13 of Article VIII of the Constitution of this State. The written agreement entered into by the participating counties must include provisions which: (1) address sharing expenses of the park; (2) specify by percentage the revenue to be allocated to each county; (3) specify the manner in which revenue must be distributed to each of the taxing entities within each of the participating counties. (B) For the purpose of bonded indebtedness limitation and for the purpose of computing the index of taxpaying ability pursuant to Section 59-20-20(3), allocation of the assessed value of property within the park to the participating counties and to each of the taxing entities within the participating counties must be identical to the allocation of revenue received and retained by each of the counties and by each of the taxing entities within the participating counties. Misallocations may be corrected by adjusting later distributions, but these adjustments must be made in the same fiscal year as the misallocations. Provided, however, that the computation of bonded indebtedness limitation is subject to the requirements of Section 4-29-68(E). (C) If the industrial or business park encompasses all or a portion of a municipality, the counties must obtain the consent of the municipality prior to the creation of the multi-county industrial park." SECTION 44. Section 12-51-90(B) of the 1976 Code, as last amended by Act 334 of 2000, is further amended to read:
"(B) The lump sum amount of interest Month of Redemption Period Amount of Interest Imposed Property Redeemed First three months three percent of the bid amount Months four, five, and six six percent of the bid amount Months seven, eight, and nine nine percent of the bid amount Last three months twelve percent of the bid amount However, in every redemption, the amount of interest due must not exceed the amount of the bid on the property submitted on behalf of the forfeited land commission pursuant to Section 12-51-55." SECTION 45. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws. SECTION 46. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed these sections, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective. SECTION 47. Section 33-44-211(c) of the 1976 Code, as last amended by Act 395 of 2000, is further amended to read:
"(c) The first annual report must be delivered to the Secretary of State between January first and April first of the year following the calendar year in which a limited liability company was organized or a foreign company was authorized to transact business. Subsequent annual reports must be delivered to the Secretary of State on or before the fifteenth day of the SECTION 48. Section 12-6-3530(B) and (C) of the 1976 Code, as added by Act 314 of 2000, is amended to read:
"(B) The total amount of credits allowed pursuant to this section may not exceed in the aggregate five million dollars for all taxpayers and all
(C) A single community development corporation or community development financial institution may not receive more than twenty-five percent of the total tax credits authorized pursuant to this section in any one SECTION 49. Article 7, Chapter 21, Title 12 of the 1976 Code is amended by adding: "Section 12-21-1035. (A) Beer brewed on a permitted premises pursuant to Article 17, Chapter 4 of Title 61, must be taxed based on the number of gallons of beer produced on the permitted premises and must be taxed at the same rate of taxation for beer provided in Section 12-21-1020. The permittee shall maintain adequate records as determined by the department to ensure the collection of this tax. (B) The taxes imposed by the provisions of this section, except as otherwise provided, are due and payable in monthly installments on or before the twentieth day of the month following the month in which the tax accrues. (C) On or before the twentieth day of each month, a person on whom the taxes in this section are imposed shall file with the department, on a form designed by it, a true and correct statement showing the total gallons produced and any other information the department may require. (D) At the time of making a monthly report, the person shall compute the taxes due and pay to the department the amount of taxes shown to be due. A return is considered to be timely filed if the return is mailed and has a postmark dated on or before the date the return is required by law to be filed." SECTION 50. Section 61-4-1730 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-4-1730. Beer brewed on a permitted premises SECTION 51. Section 61-4-520(8) of the 1976 Code, as added by Act 445 of 1996, is amended to read:
"(8) Notice of application has appeared at least once a week for three consecutive weeks in a newspaper most likely to give notice to interested citizens of the county, city, or community in which the applicant proposes to engage in business. The department (a) be in the legal notices section of the newspaper or an equivalent section if the newspaper has no legal notices section; (b) be in large type, covering a space of one column wide and at least two inches deep; and (c) state the type license applied for and the exact location of the proposed business. An applicant for a beer or wine permit and an alcoholic liquor license may use the same advertisement for both if the advertisement is approved by the department." SECTION 52. Section 61-6-1820(4) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(4) Notice of application has appeared at least once a week for three consecutive weeks in a newspaper most likely to give notice to interested citizens of the county, municipality, or community in which the applicant proposes to engage in business. The department (a) be in the legal notices section of the newspaper or an equivalent section if the newspaper has no legal notices section; (b) be in large type, covering a space of one column wide and at least two inches deep; and (c) state the type license applied for and the exact location of the proposed business. An applicant for a beer or wine permit and an alcoholic liquor license may use the same advertisement for both if it is approved by the department." SECTION 53. Section 12-21-1080 is repealed. SECTION 54. A. Section 12-43-225 of the 1976 Code, as added by Act 346 of 2000, is amended to read:
"Section 12-43-225. (A) For subdivision lots in a
(B) To be eligible for a subdivision lot discount, the (1) by dividing the total number of platted building lots into the value of the entire parcel as undeveloped real property; and (2) as provided in Section 12-43-224 and the difference between the two calculations determined. The value of a lot as determined under Section 12-43-224 is reduced as follows:
For lots in plats
For lots in plats
For lots in plats
(C) If a lot allowed the discount provided by this section is sold to the holder of a residential homebuilder's license or general contractor's license, the discount continues through the first tax year which ends twelve months from the date of sale if the purchaser files a written application for the discount with the county assessor by SECTION 55. A. Section 4-12-30(D)(4)(a) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read: "(4)(a) The assessment ratio may not be lower than four percent: (i) in the case of a business which is investing at least two hundred million dollars, which, when added to the previous investments, results in a total investment of at least four hundred million dollars, and which is creating at least two hundred new full-time jobs at the site qualifying for the fee;
(ii) in the case of a business which is investing at least four hundred million dollars and which is creating at least two hundred new full-time jobs at a site qualifying for the fee; (iii) in the case of investments totaling at least four hundred million dollars, in a county classified as either least developed or underdeveloped, by a limited liability company and/or one or more of the members or equity holders where a member or equity holder is creating, at a site qualifying for the fee, at least one hundred new full-time jobs with an average annual salary of at least forty thousand dollars within four years of the date of execution of the millage rate agreement; or (iv) in the case of a sponsor and a sponsor affiliate, who together are investing at least four hundred million dollars and creating at least two hundred new full time jobs at the site qualifying for the fee and: a. the investment by the sponsor affiliate is considered necessary and suitable for the operation of the sponsor facility; b. the sponsor affiliate is located contiguous to the sponsor project; c. one hundred percent of the output of the sponsor affiliate is provided to the sponsor for the project; and d. the sponsor affiliate is not considered a supplier of manufactured parts or of any value added output of the sponsor." B. Section 4-12-30(G) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"(G)(1) The county and the sponsor may enter into an agreement to establish the millage rate, a millage rate agreement, for purposes of calculating payments under subsection (D)(2)(a), and the first five years under subsection (D)(2)(b). This millage rate agreement
(2) The millage rate established pursuant to subsection (G)(1) must
(3) For purposes of determining the cumulative property tax millage rate C. Section 4-29-10(3) of the 1976 Code, as last amended by Act 151 of 1997, is further amended to read: "(3) 'Project' means any land and any buildings and other improvements on the land including, without limiting the generality of the foregoing, water, sewage treatment and disposal facilities, air pollution control facilities, and all other machinery, apparatus, equipment, office facilities, and furnishings which are considered necessary, suitable, or useful by the following investors or any combination of them: (a) any enterprise for the manufacturing, processing, or assembling of any agricultural or manufactured products; (b) any commercial enterprise engaged in storing, warehousing, distributing, transporting, or selling products of agriculture, mining, or industry, or engaged in providing laundry services to hospitals, to convalescent homes, or to medical treatment facilities of any type, public or private, within or outside of the issuing county or incorporated municipality and within or outside of the State; (c) any enterprise for research in connection with any of the foregoing or for the purpose of developing new products or new processes or improving existing products or processes; (d) any enterprise engaged in commercial business including, but not limited to, wholesale, retail, or other mercantile establishments; residential and mixed use developments of two thousand five hundred acres or more; office buildings; computer centers; tourism, sports, and recreational facilities; convention and trade show facilities; and public lodging and restaurant facilities if the primary purpose is to provide service in connection with another facility qualifying under this subitem; and (e) any enlargement, improvement, or expansion of any existing facility in subitems (a), (b), (c), and (d) of this item. The term 'project' does not include facilities for an enterprise primarily engaged in the sale or distribution to the public of electricity, gas, or telephone services. A project may be located in one or more counties or incorporated municipalities. The term 'project' also includes any structure, building, machinery, system, land, interest in land, water right, or other property necessary or desirable to provide facilities to be owned and operated by any person, firm, or corporation for the purpose of providing drinking water, water, or wastewater treatment services or facilities to any public body, agency, political subdivision, or special purpose district. This definition is for purposes of industrial revenue bonds only." D. Section 4-29-10 of the 1976 Code, as last amended by Act 151 of 1997, is further amended by adding at the end: "(9) 'Investor' means one or more entities that sign the inducement agreement with the county and also includes an investor affiliate unless the context clearly indicates otherwise. (10) 'Investor affiliate' means an entity that joins with, or is an affiliate of, an investor and that participates in the investment in, or financing of, a project. (11) 'Business' means a single entity or two or more entities if they meet the qualifications of Section 4-29-67(D)(4)(a)(iii) or (v)." E. Section 4-29-67 of the 1976 Code as last amended by Act 279 of 2000, is further to read:
"Section 4-29-67. (A) Notwithstanding the provisions of Section 4-29-60, in the case of a financing agreement in the form of one or more lease agreements for a project qualifying
(B)
(1) Title to the property must be held by the county or, in the case of a project located in an industrial development park as defined in Section 4-1-170, title may be held by more than one county, provided each county is a member of the industrial development park.
(2) The investment must be a project (a) the counties agree on the terms of the fee and the distribution of the fee payment;
(b) the minimum millage rate
(c) all (3) The minimum level of investment must be at least forty-five million dollars and must be invested within the time period provided in subsection (C).
(4)(a)
(b)(i)
(ii) The Department of Revenue must be notified in writing of all
(iii) If, at any time, the
(iv) (C)(1) From the end of the property tax year in which the investor and the county execute an inducement agreement, the investor has seven years in which to enter into an initial lease agreement with the county.
(2)(a) From the end of the property tax year in which the investor and the county execute the initial lease agreement, the investor has five years in which to complete its investment for purposes of qualifying for this section. If the investor does not anticipate completing the project within five years, the investor may apply to the county before the end of the five-year period for an extension of time, up to two years, to complete the project.
(b)
(c) Unless property qualifies as replacement property
(i) the property (ii) to property taxes, as provided in Chapter 37 of Title 12, if the investor has title to the property.
(d) For purposes of
(3) The annual fee provided by subsection (D)(2) is available for no more than twenty years. For projects
(4) (D) The inducement agreement must provide for fee payments, to the extent applicable, as follows:
(1)(a)
(b)
(2) After property qualifying (a) an annual payment in an amount not less than the property taxes that would be due on the project if it were taxable, but using:
(i) an assessment ratio of
(ii) a fixed millage rate as provided in subsection (G)
(iii) a fair market value estimate determined by the South Carolina Department of Revenue
(b) an annual payment based on
(c) an annual payment using a formula that results in a fee not less than the amount required pursuant to subsection (D)(2)(a), except that every fifth year the applicable millage rate
(3) At the conclusion of the payments determined pursuant to items (1) and (2) of this subsection (a) with respect to real property, based on the fair market value as of the latest reassessment date for similar taxable property; and
(b) with respect to personal property, based on the then-depreciated value applicable to
(4)(a) The assessment ratio
(i) in the case of a business
(ii) in the case of a business
(iii) in the case of investments (iv) in the case of a business which is investing at least six hundred million dollars in this State. (v) in the case of an investor and an investor affiliate that, when combined, are investing at least four hundred million dollars and creating at least two hundred new full-time jobs at the site qualifying for the fee and: a. the investment by the investor affiliate is considered necessary and suitable for the operation of the sponsor facility; b. the investor affiliate is located contiguous to the investor project; c. one hundred percent of the output of the investor affiliate is provided to the investor for the project; and d. the investor affiliate is not considered a supplier of manufactured parts or of any value added output of the investor.
(b) The new full-time jobs requirement of this item does not apply in the case of a
(c) In an instance in which the governing body of a county,
(5) Notwithstanding the use of the term 'assessment ratio',
(E) Calculations pursuant to subsection (D)(2) must be made on the basis that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed (F) With regard to calculation of the fee provided in subsection (D)(2), the inducement agreement may provide for the disposal of property and the replacement of property subject to the fee as follows:
(1)
(2)
(a) Replacement property
(b) The new replacement property
(c) (d) If there is no provision in the inducement agreement dealing with replacement property, any property placed in service after the time period allowed for investments as provided by subsection (C)(2), is subject to the payments required by Section 4-29-60 if the county has title to:
(i) the property
(ii)
(G)(1) The county and the investor may enter into an agreement to establish the millage rate
(2) The millage rate established pursuant to item (1) of this subsection
(H)(1) Upon agreement of the
(2)
(I) Investment expenditures incurred by (1) any time after, or within sixty days before, the county takes action reflecting or identifying the project or proposed project or investment including, but not limited to, the adoption of an inducement or similar resolution by county council; and
(2) before the end of the applicable time period for investments referenced in
An inducement agreement must be executed within two years after the date on which the county takes action reflecting or identifying the project or proposed project or investment including, but not limited to, the adoption of an inducement or similar resolution by county council; otherwise, only investment expenditures made or incurred by
(J)(1) Subject to subsection (K), project investment expenditures
(a)
(b)
(2) The income tax basis of
(3) The county must agree to
(K)(1) Property
(a) land, excluding improvements
(b) property
(c) property
(2) Repairs, alterations, or modifications to real or personal property which are not subject to a fee
(L)(1) For a project not located in an industrial development park as defined in Section 4-1-170, distribution of the fee in lieu of taxes on the project must be made in the same manner and proportion that the millage levied for school and other purposes would be distributed if the property were taxable. For this purpose, the relative proportions must be calculated based on the following procedure: holding constant the millage rate set in subsection (G) and using all tax abatements automatically granted for taxable property, a full schedule of the property taxes that would otherwise have been distributed to each millage-levying entity in the county must be prepared for the life of the agreement, for the maximum time period allowed (2) For a project located in an industrial development park as defined in Section 4-1-170, distribution of the fee in lieu of taxes on the project must be made in the manner provided for by the agreement establishing the industrial development park. (3) A county or municipality or special purpose district that receives and retains revenues from a payment in lieu of taxes may use a portion of this revenue for the purposes outlined in Section 4-29-68 without the requirement of issuing special source revenue bonds or the requirements of Section 4-29-68(A)(4).
(M) As a directly foreseeable result of negotiating the fee, gross revenue of a school district in which a project is located in any year a fee negotiated pursuant to this section is paid (N) Projects on which a fee in lieu of taxes is paid pursuant to this section are considered taxable property at the level of the negotiated payments for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the index of taxpaying ability pursuant to Section 59-20-20(3). However, for a project located in an industrial development park as defined in Section 4-1-170, projects are considered taxable property in the manner provided in Section 4-1-170 for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the index of taxpaying ability pursuant to Section 59-20-20(3). Provided, however, that the computation of bonded indebtedness limitation is subject to the requirements of Section 4-29-68(E).
(O)(1)
(2)
(3)
(a) The Department of Revenue must receive written notification, (b) If the financing entity is the income tax owner of property, either: (i) the financing entity is primarily liable for the fee as to that portion of the project to which the transfer relates with the original transferor remaining secondarily liable for the payment of the fee; or (ii) the original transferor must agree to continue to be primarily liable for the payment of the fee as to that portion of the project to which the transfer relates.
(4) Before an investor may transfer an inducement agreement, millage rate agreement, lease agreement, or the assets subject to the lease agreement, it must obtain the approval of the county with which it entered into the original
(2) Fee payments, and returns calculating fee payments, are due at the same time as property tax payments and property tax returns would be due if the property were owned by the
(3) Failure to make a timely fee payment and file required returns
(4) The Department of Revenue may issue
(5) The provisions of Chapters 4 and 54 of Title 12, applicable to property taxes,
(6) Within thirty days of the date of execution of an inducement or lease agreement, a copy of the agreement must be filed with the Department of Revenue and the county
(1) three years from the date a return concerning the fee is filed for the time period during which the noncompliance occurs
(2) ten years if
(2) Notwithstanding (3) Any machinery and equipment foundations, port facilities, or railroad track systems used, or to be used, for a qualified recycling facility is considered tangible personal property. (4) Notwithstanding subsections (F) and (I) of this section, the total costs of all investments made for a qualified recycling facility are eligible for fee payments as provided in this section.
(5) For purposes of
(6) Notwithstanding subsection (D)(2)(b) of this section, in the case of a qualified recycling facility, net present value calculations performed (7) As used in this subsection, 'qualified recycling facility' and 'investment' have the meaning provided in Section 12-7-1275(A).
(a) pursuant to subsection (D)(2)(a)(i)
(2) This subsection applies only to property placed in service before January 1, 2000." F. Section 12-44-50(A)(1)(b)(i) of the 1976 Code is amended to read:
"(i) by the county, which must G. Notwithstanding the provisions of Section 4-12-30(H)(2), Section 4-29-67(H)(2), and Section 12-44-40(L)(2), the parties may agree to change the millage rate under an existing inducement agreement or millage rate agreement for an investment that exceeds two hundred million dollars to a cumulative property tax millage rate legally levied by or on behalf of all taxing entities within which the subject property is to be located that is applicable during the period beginning on the thirtieth day of June preceding the calendar year in which the millage rate agreement is executed and ending on the date the initial lease agreement is executed. A change in millage rates pursuant to this section is applicable prospectively only and not retroactively. H. This SECTION takes effect upon approval by the Governor. Provided, however the provisions of subsection B., subsection F., and the amendment to Section 4-29-67(G) in subsection E. apply to a fee in lieu of property taxes agreement in which an initial lease agreement is executed on or after that date. Subsection G. is repealed effective December 31, 2001. SECTION 56. A. Section 12-24-40 of the 1976 Code is amended by adding a new item to read: "(15) transferring title to facilities for transmitting electricity that is transferred, sold, or exchanged by electrical utilities, municipalities, electric cooperative, or political subdivisions to a limited liability company which is subject to regulation under the Federal Power Act (16. U.S.C. Section 791 (a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act." B. Section 12-36-2120 of the 1976 Code is amended by adding a new item to read: "(59) facilities for transmitting electricity that is transferred, sold, or exchanged by electrical utilities, municipalities, electric cooperative, or political subdivisions to a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791 (a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act." C. Section 12-6-3410(J) of the 1976 Code is amended by adding a new item to read: "(9) 'corporation', 'corporate', 'company', and 'taxpayer' for purposes of this section also include a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act regardless of whether the limited liability company is treated as a partnership or as a corporation for South Carolina income tax purposes. If treated as a partnership, a limited liability company that qualifies for a credit under this section passes the credit through to its members in proportion to their interests in the limited liability company. Each member's share of the credit is nonrefundable, but is allowed as a credit against any tax under Section 12-6-530 or 12-20-50. Each member may carry any unused credit forward as provided in subsection (F). The limited liability company may not carry forward a credit that passes through to its members." D. This section takes effect upon approval by the Governor and subsections A. and B. apply with respect to sales or deeds made or recorded after this date, and subsection C. is applicable to taxable years beginning after December 31, 2000. Provided, however, the corporate income tax credit taken against the cost of tangible personal property pursuant to Section 12-6-3410(D) authorized to be taken by those corporations or companies referred to in Section 12-6-3410(J)(9) may be taken for taxable years beginning after December 31, 2002. SECTION 57. A. Section 12-36-90(2) of the 1976 Code is amended by adding an appropriately lettered subitem to read: "( ) interest, fees, charges however described, imposed on a customer for late payment of a bill for electricity or natural gas, or both, whether or not sales tax is required to be paid on the underlying electricity or natural gas bill." B. This section takes effect upon approval by the Governor and applies with respect to retail sales occurring on or after that date and sales before that date for all periods remaining open for the assessment of taxes by agreement or by operation of law. However, a refund is not due a taxpayer of sales and use tax paid on interest, fees, or charges, however described, imposed on a customer for late payment of a bill for electricity or natural gas, or both, before the effective date of this section. SECTION 58. Section 12-44-80 of the 1976 Code is amended by adding at the end: "(C) Misallocations of the distribution of the fee payments on the project pursuant to this chapter may be corrected by adjusting later distributions, but these adjustments must be made in the same fiscal year as the misallocations." SECTION 59. Section 4-12-30(K) of the 1976 Code is amended by adding at the end: "(4) Misallocations of the distribution of the fee-in-lieu of taxes on the project pursuant to this chapter may be corrected by adjusting later distributions, but these adjustments must be made in the same fiscal year as the misallocations." SECTION 60. Section 4-29-67(L) of the 1976 Code, as last amended by Act 462 of 1996, is further amended by adding at the end: "(4) Misallocations of the distribution of the fee-in-lieu of taxes on the project pursuant to this chapter may be corrected by adjusting later distributions, but these adjustments must be made in the same fiscal year as the misallocations." SECTION 61. A. Section 12-56-20(4) of the 1976 Code is amended by adding at the end: "'Delinquent debt' also includes any fine, penalty, cost, fee, assessment, surcharge, service charge, restitution, or other amount imposed by a court or as a direct consequence of a final court order which is received by or payable to the clerk of the appropriate court or treasurer of the entity where the court is located." B. The 1976 Code is amended by adding: "Section 14-1-202. (A) The clerk of the appropriate court, or county treasurer or municipal treasurer, as appropriate, is authorized to collect any fine, penalty, cost, fee, assessment, surcharge, service charge, restitution, or other amount imposed by a court or as a direct consequence of a court order. (B) The clerk of the appropriate court, or county treasurer or municipal treasurer, as appropriate, may compromise any fine, penalty, cost, fee, assessment, surcharge, service charge, restitution, or other amount imposed by a court or as a direct consequence of a court order to the extent necessary to collect these items. If a clerk or treasurer compromises an amount pursuant to this subsection, the proceeds representing the collected amount must be distributed pro rata to the entities that otherwise would have received the original amount." SECTION 62. A. The 1976 Code is amended by adding: "Section 12-45-35. (A) A county treasurer may appoint an employee in his office to be his deputy. The appointment must be filed with the Comptroller General and the governing body of that county. When the appointment is filed, the deputy may act for and on behalf of the county treasurer when the treasurer is incapacitated by reason of a physical or mental disability or during a temporary absence. (B) If there is a vacancy in the office of county treasurer by reason of death, resignation, or disqualification, the appointed deputy shall carry out the duties of the office until a successor is appointed or elected or qualified." B. Section 12-39-40 of the 1976 Code is amended to read:
"Section 12-39-40. (A) (B) If there is a vacancy in the office of county auditor by reason of death, resignation, or disqualification, the appointed deputy shall carry out the duties of the office until a successor is appointed or elected and qualified." SECTION 63. A. Subsections (A) and (B) of Section 12-6-3510 of the 1976 Code, as last amended by Act 399 of 2000, are further amended to read:
"(A) A taxpayer may claim a credit of an amount equal to thirty-three percent, but not more than fifteen thousand dollars, of the taxpayer's cash investment in a company that develops or produces a qualified
(B) A taxpayer may claim a credit in an amount equal to thirty-three percent of the value of a taxpayer's investment in the construction or conversion, or equipping B. Section 12-6-3510(F)(6)(a) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read: "(a) In subsection (A) 'taxpayer' means the investor who invests in a company that develops or produces a qualified motion picture project." C. The amendments to Section 12-6-3510 of the 1976 Code in this section do not affect the date of repeal of Section 12-6-3510 as provided in Section 3(Y)(1) of Act 2000 of 1999. SECTION 64. The last paragraph of Section 4-29-67(C)(2) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read: "For purposes of those businesses qualifying under Section 4-29-67(D)(4), the five-year period referred to in this subsection is eight years and the seven-year period is ten years. However, for those businesses which, after qualifying under Section 4-29-67(D)(4), have more than five hundred million dollars in capital invested in this State and employ more than one thousand people in this State, the five-year period referred to in this subsection is ten years, and the ten-year extended period referred to in the previous sentence is fifteen years." SECTION 65. Section 4-29-67(C)(3) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"(3) The annual fee provided by subsection (D)(2) is available for no more than twenty years. For projects which are completed and placed in service during more than one year, each year's investment may be subject to the fee in subsection (D)(2) for twenty years to a maximum total of twenty-seven years for the fee for a single project which has been granted an extension. For those businesses qualifying under subsection (D)(4), the annual fee is available for no more than thirty years and for those projects placed in service in more than one year the annual fee is available for a maximum of SECTION 66. A. Section 4-12-30(D)(4)(a) of the 1976 Code, as last amended by Act 462 of 1996, is amended by adding at the end: "(iv) in the case of a business including a corporation, its subsidiaries, and its limited liability company members, that (A) builds a gas-fired combined-cycle power facility and invests at least four hundred million dollars and creates at least twenty-five full-time jobs as defined in Section 12-6-3360(M) at that facility and (B) invests at least two hundred fifty million dollars which, when added to previous investments in this State, results in a total investment of five hundred million dollars elsewhere in this State." B. Section 4-29-67(D)(4)(a) of the 1976 Code, as last amended by Act 151 of 1997, is further amended by adding at the end: "(v) in the case of a business including a corporation, its subsidiaries, and its limited liability company members, that (A) builds a gas-fired combined-cycle power facility and invests at least four hundred million dollars and creates at least twenty-five full-time jobs as defined in Section 12-6-3360(M) at that facility and (B) invests at least two hundred fifty million dollars which, when added to previous investments in this State, results in a total investment of five hundred million dollars elsewhere in this State."
C. Section 12-44-30(8) of the 1976 Code is amended by adding at the end: "(d) at least four hundred million dollars in the building of a gas-fired combined-cycle power facility and creates at least twenty-five full-time jobs as defined in Section 12-6-3360(M) at that facility and invests at least two hundred fifty million dollars which, when added to previous investments in this State, results in a total investment of five hundred million dollars elsewhere in this State." SECTION 67. Chapter 29, Title 41 of the 1976 Code is amended by adding: "Section 41-29-185. When the last day for filing a quarterly report is a Saturday, Sunday or legal holiday, the end of the period is extended to the next business day. For this purpose, a legal holiday is any day the Commission or the offices of the United States Postal Service are closed." SECTION 68. Section 12-36-2120(10) of the 1976 Code is amended by adding an appropriately lettered subitem to read: "( ) meals or foodstuffs prepared or packaged that are sold to public or nonprofit organizations for congregate or in-home service to the homeless or needy or disabled adults over eighteen years of age or individuals over sixty years of age. This subitem only applies to meals and foodstuffs eligible for purchase under the USDA food stamp program." SECTION 69. A. Section 4-10-330(A)(3) of the 1976 Code, as added by Act 138 of 1997, is amended to read: "(3)(a) If the county proposes to issue bonds to provide for the payment of any costs of the projects, the maximum amount of bonds to be issued, whether the sales tax proceeds are to be pledged to the payment of the bonds and, if other sources of funds are to be used for the projects, specifying the other sources;
(b) the maximum cost of the project or facilities B. Section 4-10-330(C) of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"(C) Upon receipt of the ordinance, the county election commission C. Section 4-10-330(D) of the 1976 Code, as added by Act 138 of 1997, is amended by adding a paragraph at the end to read: "If the referendum includes the issuance of bonds, the question must be revised to include the principal amount of bonds proposed to be authorized by the referendum and the sources of payment of the bonds if the sales tax approved in the referendum is inadequate for the payment of the bonds." D. Section 4-10-340(B)(2) of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"(2) E. Section 4-10-360 of the 1976 Code, as amended by Act 93 of 1999, is further amended to read: "Section 4-10-360. The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer in the county area in which the tax is imposed and the revenues must be used only for the purposes stated in the imposition ordinance. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations. However, allocations made as a result of city or county code errors must be corrected prospectively. Within thirty days of the receipt of any quarterly payment, the county treasurer or the county administrator shall certify to the Department of Revenue amounts of net proceeds applied to the costs of each project and the amount of project costs remaining to be paid and, if bonds have been issued that were approved in the referendum, a schedule of payments remaining due on the bonds that are payable from the net proceeds of the sales tax authorized in the referendum." F. This SECTION takes effect upon approval by the Governor and applies with respect to referenda held on or after that date. A county holding a referendum and adopting an ordinance pursuant to Article 3, Chapter 10, Title 4 of the 1976 Code, before the effective date of this act in which the ordinance provides that the proceeds of the sales tax would be used to repay bonds issued to fund project costs may continue to collect the tax and apply the revenue to the repayment of the bonds while any of these bonds remain outstanding, but in no event may the tax be collected for any period longer than the maximum term of the tax provided in the referendum.
SECTION 70. A. Section 12-36-1310(B) of the 1976 Code is amended by adding: "(5) gross proceeds accruing or proceeding from the sale for recharge at retail for prepaid wireless calling arrangements." (a) 'Prepaid wireless calling arrangements' means communication services that: ( i) are used exclusively to purchase wireless telecommunications; ( ii) are purchased in advance; (iii) allow the purchaser to originate telephone calls by using an access number, authorization code, or other means entered manually or electronically; and ( iv) are sold in units or dollars which decline with use in a known amount. (b) All charges for prepaid wireless calling arrangements must be sourced to the: ( i) location in this State where the over-the-counter sale took place;
( ii)
(iii) either the billing address or location associated with the mobile telephone number if the sale did not take place at the seller's location and no item is B. This section takes effect on the first day of the second month following approval by the Governor. SECTION 71. A. Chapter 45, Title 12 of the 1976 Code is amended by adding: "Section 12-45-65. For purposes of collection of taxes on a hotel, rooming house, apartment, or timeshare unit rented or leased as a furnished unit, the estate includes both the real estate and the personal property it contains. The real property tax notice on the estate must describe the real estate, including a tax map number, and the value of the taxable personal property it contains." B. Section 12-49-40 of the 1976 Code is amended to read:
"Section 12-49-40. (A) All personal property subject to taxation (B) For purposes of collection and enforcement of taxes on a hotel, rooming house, apartment, or timeshare unit rented or leased as a furnished unit, the estate includes both the real estate and the personal property it contains. The estate may be seized and sold as undivided real property as provided in this title for the sale to collect delinquent taxes on real property." C. Section 12-51-50 of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read: "Section 12-51-50. The property duly advertised must be sold, by the person officially charged with the collection of delinquent taxes, at public auction at the courthouse or other convenient place within the county, if designated and advertised, on a legal sales date during regular hours for legal tender payable in full by cash, cashier's check, certified check, or money order on the date of the sale. If the defaulting taxpayer or the grantee of record of the property has more than one item advertised to be sold, as soon as sufficient funds have been accrued to cover all of the delinquent taxes, assessments, penalties, and costs, further items may not be sold; except that a hotel, rooming house, apartment, or timeshare unit rented or leased as a furnished unit is deemed to be both the real estate and the personal property it contains. It may be sold as undivided real property." D. Chapter 37, Title 12 of the 1976 Code is amended by adding: "Section 12-37-805. As an alternative to the procedures described in Section 12-37-760, if the owner of a hotel, rooming house, apartment, or timeshare unit rented or leased as a furnished unit fails to list, in any one year, personal property required by law to be listed, the auditor may return a statement of the personal property with the value being that of twice the average value of the reported personal property contained within similar units in the county." SECTION 72. SECTIONS 1, 7, 10, 11, 12, and 13 of this act take effect July 1, 2001. SECTIONS 22, 23, 24, 25, and 26 take effect on the first day of the second month following approval by the Governor. Except as otherwise specified in this act, the remaining SECTIONS of this act take effect upon approval by the Governor, and SECTIONS 2, 3, 4, 5, 6, 8, 9, 14, and 15 apply to taxable years beginning after December 31, 2000, SECTION 31 applies to tax periods beginning after December 31, 1997, and SECTION 42 applies to property tax years beginning after December 31, 1999.
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