H 4069 Session 110 (1993-1994)
H 4069 General Bill, By Canty and L.S. Whipper
A Bill to amend Chapter 23, Title 12 of the Code of Laws of South Carolina,
1976, relating to license taxes on businesses, by adding Article 13, so as to
impose a severance tax on the mining or quarrying of metalliferous minerals or
metals and other minerals.
04/14/93 House Introduced and read first time HJ-53
04/14/93 House Referred to Committee on Ways and Means HJ-53
A BILL
TO AMEND CHAPTER 23, TITLE 12 OF THE CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO LICENSE TAXES ON
BUSINESSES, BY ADDING ARTICLE 13, SO AS TO IMPOSE A
SEVERANCE TAX ON THE MINING OR QUARRYING OF
METALLIFEROUS MINERALS OR METALS AND OTHER
MINERALS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 23, Title 12 of the 1976 Code is amended by
adding:
"Article 13
Severance Tax
Section 12-23-1110. As used in this article:
(1) `Metalliferous minerals' include but are not limited to any ore,
metal, or other substance containing specified minerals, such as gold,
silver, iron, mercury, or nickel.
(2) `Other minerals' include but are not limited to any substance
mined or quarried such as sand, sand/clay fill material, granite,
vermiculite, kaolin, clay, shale, limestone, sand and gravel, sericite,
manganese schist, peat, or fuller's earth.
Section 12-23-1120. Persons mining or quarrying metalliferous
minerals or metals or other minerals are assessed a severance tax as
provided in this article.
Section 12-23-1130. The tax rate on metalliferous minerals is three
percent of the taxable value of the minerals or metals sold or disposed
of. The taxable value of the metalliferous minerals or metals is equal to
twenty percent of the gross proceeds received for the minerals metals.
The taxable value of the other minerals is equal to eighty percent of the
gross proceeds received for the minerals sold or otherwise disposed of
by the producer.
Section 12-23-1140. The gross proceeds for metalliferous minerals
or metals or other minerals is computed as follows:
(1) If the metalliferous mineral products or metals or other minerals
are sold, the gross proceeds is the gross amount the producer receives for
the sale.
(2) If the metalliferous minerals or metals are not sold but are
shipped , transported, or delivered out of state the gross proceeds are
determined by multiplying the finished metals contained in the minerals
by the average daily price of the metals for the period for which the tax
is due. For other minerals the gross proceeds for minerals shipped,
transported, or delivered out of state is the value as determined by the
commission.
(3) The gross proceeds of metalliferous minerals or metals or other
minerals disposed of but not sold is determined by applying the
percentage of the total costs associated with the sale or disposition of the
minerals to the producer's total costs by the producer's total sales or
dispositions.
(4) If a non bonafide sale of metalliferous minerals or metals or
other minerals takes place between affiliated companies where the value
received is not proportionate to the fair market value, or if the other
items of this section do not apply, the commission shall determine the
value.
Section 12-23-1150. (A) There is allowed an annual exemption for
each mine or quarry of the first twenty-five thousand dollars of gross
proceeds of metalliferous minerals or metals or other minerals sold or
disposed of.
(B) Any amount in excess of three million seven hundred thousand
dollars collected each year from the severance tax must be refunded to
each mine or quarry on the basis of the percentage collected.
Section 12-23-1160. The tax is due on or before the twentieth day
of April, July, October, and January for sales or dispositions of the
minerals or metals in the preceding calendar quarter. The tax must be
reported and paid on forms prescribed by the commission.
SECTION 2. This act takes effect January 1, 1994, and applies to sales
or other dispositions occurring after December 30, 1993.
-----XX----- |