S 1076 Session 110 (1993-1994)
S 1076 General Bill, By Patterson and Wilson
A Bill to amend Section 12-37-220, as amended, Code of Laws of South Carolina,
1976, relating to property tax exemptions, so as to allow the credit to be
claimed when the taxpayer creates one hundred fifty or more jobs substantially
equivalent to the current minimum requirement of seventy-five fulltime jobs
and to define "substantially equivalent".
01/20/94 Senate Introduced and read first time SJ-5
01/20/94 Senate Referred to Committee on Finance SJ-5
02/23/94 Senate Committee report: Favorable Finance SJ-7
02/24/94 Senate Amended SJ-30
02/24/94 Senate Unanimous consent for third reading on next
legislative day SJ-30
02/25/94 Senate Read third time and sent to House SJ-372
03/01/94 House Introduced and read first time HJ-18
03/01/94 House Referred to Committee on Ways and Means HJ-18
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
February 23, 1994
S. 1076
Introduced by SENATORS Patterson and Wilson
S. Printed 2/23/94--S.
Read the first time January 20, 1994.
THE COMMITTEE ON FINANCE
To whom was referred a Bill (S. 1076), to amend Section 12-37-220, as
amended, Code of Laws of South Carolina, 1976, relating to property tax
exemptions, so as to allow the credit to be claimed when the taxpayer
creates, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and recommend
that the same do pass:
JOHN DRUMMOND, for Committee.
STATEMENT OF ESTIMATED FISCAL
IMPACT
This bill amends Section 12-37-220, as amended, relating to property
tax exemptions, so as to allow the credit to be claimed when the taxpayer
creates one hundred fifty or more jobs substantially equivalent to the
current minimum requirement of seventy-five full-time jobs and to define
"substantially equivalent".
This bill would have no current effect on local property tax revenue or
general fund revenue. The long-term effect should be an increase in total
property taxes and in general fund revenue. Increased collections in
individual income and other miscellaneous taxes associated with the
creation of new jobs will have a positive long-term impact on general fund
revenues.
Approved By:
A. Crawford Clarkson, Jr.
S.C. Tax Commission
A BILL
TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX
EXEMPTIONS, SO AS TO ALLOW THE CREDIT TO BE CLAIMED
WHEN THE TAXPAYER CREATES ONE HUNDRED FIFTY OR MORE
JOBS SUBSTANTIALLY EQUIVALENT TO THE CURRENT MINIMUM
REQUIREMENT OF SEVENTY-FIVE FULL-TIME JOBS AND TO
DEFINE "SUBSTANTIALLY EQUIVALENT".
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-220B(32) of the 1976 Code, as last amended
by Act 181 of 1993, is further amended to read:
"(32) All new corporate headquarters, corporate office facilities,
distribution facilities, and all additions to existing corporate headquarters,
corporate office facilities, or distribution facilities located in South
Carolina, established or constructed, or placed in service, after June 27,
1988, are exempt from nonschool county ad valorem taxes for a period of
five years from the time of establishment, construction, or being placed in
service if the cost of the new construction or additions is fifty thousand
dollars or more and seventy-five or more new jobs which are full-time
or one hundred fifty or more substantially equivalent jobs are
created in South Carolina. For the purpose of this exemption, the term:
(1) `new job' means any job created by an employer in South
Carolina at the time a new facility or an expansion is initially staffed, but
does not include a job created when an employee is shifted from an
existing South Carolina location to work in a new or expanded facility;
(2) (a) `full-time' means a job requiring a minimum of
thirty-five hours of an employee's time a week for the entire normal year
of company operations or a job requiring a minimum of thirty-five hours
of an employee's time for a week for a year in which the employee was
initially hired for or transferred to the South Carolina corporate
headquarters, corporate office facility, or distribution facility and worked
at a rented facility pending construction of a corporate headquarters,
corporate office facility, or distribution facility;
(b) `substantially equivalent' means a job
requiring a minimum of twenty hours of an employee's time a week for the
entire normal year of company's operations or a job requiring a minimum
of twenty hours of an employee's time for a week for a year in which the
employee was initially hired for or transferred to the South Carolina
corporate headquarters, corporate office facility, or distribution facility
and worked at a rented facility pending construction of a corporate
headquarters, corporate office facility, or distribution facility;
(3) `corporate headquarters' means the location where corporate
staff members or employees are domiciled and employed, and where the
majority of the company's financial, personnel, legal, planning, or other
business functions are handled either on a regional or national basis and
must be the sole such corporate headquarters within the region or nation;
(4) `staff employee' or `staff member' means executive,
administrative, or professional worker. At least eighty percent of an
executive employee's business functions must involve the management of
the enterprise and directing the work of at least two employees. An
executive employee has the authority to hire and fire or has the authority
to make recommendations related to hiring, firing, advancement, and
promotion decisions, and an executive employee must customarily
exercise discretionary powers. An administrative employee is an employee
who is not involved in manual work and whose work is directly related to
management policies or general business operations. An administrative
employee must customarily exercise discretion and independent judgment.
A professional employee is an employee whose primary duty is work
requiring knowledge of an advanced type in a field of science or learning.
This knowledge is characterized by a prolonged course of specialized
study. The work must be original and creative in nature, and the work
cannot be standardized over a specific period of time. The work must
require consistent exercise of discretion;
(5) `region' or `regional' means a geographic area comprised of
either:
(a) at least five states, including South Carolina, or
(b) two or more states, including South Carolina, if the entire
business operations of the corporation are performed within fewer than
five states;
(6) `corporate office facility' means the location where corporate
managerial, professional, technical, and administrative personnel are
domiciled and employed, and where corporate financial, personnel, legal,
technical, support services, and other business functions are handled.
Support services include, but are not limited to, claims processing, data
entry, word processing, sales order processing, and telemarketing;
(7) `distribution facility' means an establishment where shipments
of tangible personal property are processed for delivery to customers, but
the term `distribution facility' does not include an establishment which
operates as a location where retail sales of tangible personal property are
made to customers. A distribution facility includes establishments which
process customer sales orders by mail, telephone, or electronic means, if
the establishment also processes shipments of tangible personal property
to customers. The terms `retail sale', and `tangible personal property', for
purposes of this definition, have those meanings as contained in Chapter 36
of Title 12.
Certification of the required investment and the number of new jobs
which are full-time or substantially equivalent and which are
created must be provided by the South Carolina Department of Revenue and
Taxation to the appropriate local tax officials."
SECTION 2. This act takes effect upon approval by the Governor.
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