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H*3907 Session 110 (1993-1994)
H*3907(Rat #0575, Act #0516) General Bill, By Kirsh
Similar(S 666)
A Bill to amend Section 12-7-435, as amended, Code of Laws of South Carolina,
1976, relating to deductions from South Carolina taxable income for purposes
of the State Income Tax, so as to clarify the retirement income exclusion for
surviving spouses; to amend Section 12-7-1260, relating to the employer's
capital expenditure child care credit, so as to limit the credit to employers
of South Carolina residents and to capital expenditures made in this State; to
amend Section 12-7-1640, as amended, relating to the time for filing income
tax returns, so as to provide that any tax due must be paid at the time the
return is filed without regard to any extension; to amend Section 12-7-2419,
relating to the Eldercare Trust Fund Checkoff, so as to clarify that the
checkoff applies only to individual income tax returns; to amend the 1976 Code
by adding Section 12-7-1145, 12-27-335, and 12-54-138 so as to provide for
apportioning of income of a business incorporated in a foreign country, to
provide further for the application of and exemptions from the motor fuels tax
to an unlicensed supplier, and to provide for the assessment and collection as
a tax of any duplicate refund issued; to amend Section 12-7-430, as amended,
relating to adjustments to income for purposes of the State Income Tax, so as
to provide for the treatment of foreign dividends; to amend Section 12-9-40,
relating to tax withholding on distributions, so as to allow exemptions from
withholding for exempt nonresident shareholders or partners; to amend Section
12-9-390, as amended, relating to requirements applicable to income tax
withholding, so as to provide that these requirements automatically conform to
federal withholding requirements when the state income tax law federal
reference date changes; to amend Section 12-21-720, relating to indicia for
payment of the cigarette tax, so as to authorize the Department to allow
storage of unstamped cigarettes prior to delivery out of state and provide
penalties; to amend Section 12-27-1510, as amended, relating to refunds on
gasoline and motor fuels taxes, so as to prohibit refunds on fuel used before
a refund application is filed; to amend Section 12-31-430, relating to motor
carrier reports, so as to revise the reporting dates; to amend Section
12-36-110, as amended, relating to the definition of "retail sale", so as to
include in the definition local telecommunications services of coin-operated
telephone providers; to amend Section 12-36-2120, as amended, relating to
sales tax exemptions, so as to clarify the exemption for gasoline and other
fuels and the exemption allowed for sales of motor vehicles to certain members
of the armed forces; to amend Sections 12-54-40, as amended, and 12-54-240, as
amended, relating to the enforcement and collection of state taxes, so as to
revise penalties and further provide for the use of tax return information; to
amend Section 12-54-420, as amended, relating to the Debt Setoff Act, so as to
further define "claimant agency" and to allow the setoff of collection costs;
to amend Section 12-54-810, relating to the Taxpayers' Bill of Rights, so as
to further provide for the limit on investigative activities of the
Department; to repeal Section 12-21-2040, relating to soft drink license tax
crowns or lids; to amend the 1976 Code by adding Sections 12-4-755 and
12-4-770 so as to provide for the appeal of a property tax exemption denial to
the Department of Revenue and Taxation and provide the appeal procedure and
provide for the appeal procedure for an appeal of a proposed property tax
assessment to the Department for property originally assessed by the
Department; to amend the 1976 Code by adding Section 12-39-70 so as to provide
the method of appraising certain personal property of businesses and other
entities under the jurisdiction of the county auditor; to amend the 1976 Code
by adding Section 12-37-120 so as to require the assessed value of property to
be rounded to the nearest ten dollars; to amend Section 12-4-320, relating to
the powers of the Department, so as to authorize it to prescribe temporary
rules for filing, payment, and extensions in case of damage by operation by
natural forces; to amend Section 12-4-330, relating to witnesses before the
Department, so as to provide that out-of-s
04/13/93 House Introduced and read first time HJ-8
04/13/93 House Referred to Committee on Ways and Means HJ-8
05/05/93 House Committee report: Favorable with amendment Ways
and Means HJ-20
05/19/93 House Amended HJ-69
05/19/93 House Read second time HJ-69
05/20/93 House Read third time and sent to Senate HJ-12
05/25/93 Senate Introduced and read first time SJ-23
05/25/93 Senate Referred to Committee on Finance SJ-23
03/31/94 Senate Committee report: Favorable with amendment Finance SJ-9
04/05/94 Senate Amended SJ-25
04/05/94 Senate Read second time SJ-31
04/05/94 Senate Ordered to third reading with notice of
amendments SJ-31
05/24/94 Senate Amended SJ-47
05/24/94 Senate Read third time and returned to House with
amendments SJ-53
06/01/94 House Debate adjourned HJ-268
06/02/94 House Senate amendment amended HJ-35
06/02/94 House Returned to Senate with amendments HJ-35
06/02/94 Senate Concurred in House amendment and enrolled SJ-79
06/02/94 Ratified R 575
08/31/94 Signed By Governor
08/31/94 Effective date 08/31/94
09/19/94 Copies available
(A516, R575, H3907)
AN ACT TO AMEND SECTION 12-7-435, AS AMENDED, CODE
OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR
PURPOSES OF THE STATE INCOME TAX, SO AS TO CLARIFY THE
RETIREMENT INCOME EXCLUSION FOR SURVIVING SPOUSES;
TO AMEND SECTION 12-7-1260, RELATING TO THE EMPLOYER'S
CAPITAL EXPENDITURE CHILD CARE CREDIT, SO AS TO LIMIT
THE CREDIT TO EMPLOYERS OF SOUTH CAROLINA RESIDENTS
AND TO CAPITAL EXPENDITURES MADE IN THIS STATE; TO
AMEND SECTION 12-7-1640, AS AMENDED, RELATING TO THE
TIME FOR FILING INCOME TAX RETURNS, SO AS TO PROVIDE
THAT ANY TAX DUE MUST BE PAID AT THE TIME THE RETURN
IS FILED WITHOUT REGARD TO ANY EXTENSION; TO AMEND
SECTION 12-7-2419, RELATING TO THE ELDERCARE TRUST FUND
CHECKOFF, SO AS TO CLARIFY THAT THE CHECKOFF APPLIES
ONLY TO INDIVIDUAL INCOME TAX RETURNS; TO AMEND THE
1976 CODE BY ADDING SECTIONS 12-7-1145, 12-27-335, AND
12-54-138 SO AS TO PROVIDE FOR APPORTIONING OF INCOME OF
A BUSINESS INCORPORATED IN A FOREIGN COUNTRY, TO
PROVIDE FURTHER FOR THE APPLICATION OF AND
EXEMPTIONS FROM THE MOTOR FUELS TAX TO AN
UNLICENSED SUPPLIER, AND TO PROVIDE FOR THE
ASSESSMENT AND COLLECTION AS A TAX OF ANY DUPLICATE
REFUND ISSUED; TO AMEND SECTION 12-7-430, AS AMENDED,
RELATING TO ADJUSTMENTS TO INCOME FOR PURPOSES OF
THE STATE INCOME TAX, SO AS TO PROVIDE FOR THE
TREATMENT OF FOREIGN DIVIDENDS; TO AMEND SECTION
12-9-40, RELATING TO TAX WITHHOLDING ON DISTRIBUTIONS,
SO AS TO ALLOW EXEMPTIONS FROM WITHHOLDING FOR
EXEMPT NONRESIDENT SHAREHOLDERS OR PARTNERS; TO
AMEND SECTION 12-9-390, AS AMENDED, RELATING TO
REQUIREMENTS APPLICABLE TO INCOME TAX WITHHOLDING,
SO AS TO PROVIDE THAT THESE REQUIREMENTS
AUTOMATICALLY CONFORM TO FEDERAL WITHHOLDING
REQUIREMENTS WHEN THE STATE INCOME TAX LAW FEDERAL
REFERENCE DATE CHANGES; TO AMEND SECTION 12-21-720,
RELATING TO INDICIA FOR PAYMENT OF THE CIGARETTE TAX,
SO AS TO AUTHORIZE THE DEPARTMENT TO ALLOW STORAGE
OF UNSTAMPED CIGARETTES PRIOR TO DELIVERY OUT OF
STATE AND PROVIDE PENALTIES; TO AMEND SECTION
12-27-1510, AS AMENDED, RELATING TO REFUNDS ON
GASOLINE AND MOTOR FUELS TAXES, SO AS TO PROHIBIT
REFUNDS ON FUEL USED BEFORE A REFUND APPLICATION IS
FILED; TO AMEND SECTION 12-31-430, RELATING TO MOTOR
CARRIER REPORTS, SO AS TO REVISE THE REPORTING DATES;
TO AMEND SECTION 12-36-110, AS AMENDED, RELATING TO THE
DEFINITION OF "RETAIL SALE", SO AS TO INCLUDE IN
THE DEFINITION LOCAL TELECOMMUNICATIONS SERVICES OF
COIN-OPERATED TELEPHONE PROVIDERS; TO AMEND SECTION
12-36-2120, AS AMENDED, RELATING TO SALES TAX
EXEMPTIONS, SO AS TO CLARIFY THE EXEMPTION FOR
GASOLINE AND OTHER FUELS AND THE EXEMPTION ALLOWED
FOR SALES OF MOTOR VEHICLES TO CERTAIN MEMBERS OF
THE ARMED FORCES; TO AMEND SECTIONS 12-54-40, AS
AMENDED, AND 12-54-240, AS AMENDED, RELATING TO THE
ENFORCEMENT AND COLLECTION OF STATE TAXES, SO AS TO
REVISE PENALTIES AND FURTHER PROVIDE FOR THE USE OF
TAX RETURN INFORMATION; TO AMEND SECTION 12-54-420, AS
AMENDED, RELATING TO THE DEBT SETOFF ACT, SO AS TO
FURTHER DEFINE "CLAIMANT AGENCY" AND TO
ALLOW THE SETOFF OF COLLECTION COSTS; TO AMEND
SECTION 12-54-810, RELATING TO THE TAXPAYERS' BILL OF
RIGHTS, SO AS TO FURTHER PROVIDE FOR THE LIMIT ON
INVESTIGATIVE ACTIVITIES OF THE DEPARTMENT; TO REPEAL
SECTION 12-21-2040, RELATING TO SOFT DRINK LICENSE TAX
CROWNS OR LIDS; TO AMEND THE 1976 CODE BY ADDING
SECTIONS 12-4-755 AND 12-4-770 SO AS TO PROVIDE FOR THE
APPEAL OF A PROPERTY TAX EXEMPTION DENIAL TO THE
DEPARTMENT OF REVENUE AND TAXATION AND PROVIDE THE
APPEAL PROCEDURE AND PROVIDE FOR THE APPEAL
PROCEDURE FOR AN APPEAL OF A PROPOSED PROPERTY TAX
ASSESSMENT TO THE DEPARTMENT FOR PROPERTY
ORIGINALLY ASSESSED BY THE DEPARTMENT; TO AMEND THE
1976 CODE BY ADDING SECTION 12-39-70 SO AS TO PROVIDE
THE METHOD OF APPRAISING CERTAIN PERSONAL PROPERTY
OF BUSINESSES AND OTHER ENTITIES UNDER THE
JURISDICTION OF THE COUNTY AUDITOR; TO AMEND THE 1976
CODE BY ADDING SECTION 12-37-120 SO AS TO REQUIRE THE
ASSESSED VALUE OF PROPERTY TO BE ROUNDED TO THE
NEAREST TEN DOLLARS; TO AMEND SECTION 12-4-320,
RELATING TO THE POWERS OF THE DEPARTMENT, SO AS TO
AUTHORIZE IT TO PRESCRIBE TEMPORARY RULES FOR FILING,
PAYMENT, AND EXTENSIONS IN CASE OF DAMAGE BY
OPERATION BY NATURAL FORCES; TO AMEND SECTION
12-4-330, RELATING TO WITNESSES BEFORE THE DEPARTMENT,
SO AS TO PROVIDE THAT OUT-OF-STATE APPRAISERS
APPEARING BEFORE THE DEPARTMENT DO NOT HAVE TO BE
LICENSED OR CERTIFIED IN THIS STATE; TO AMEND SECTION
12-4-720, RELATING TO FILING PROPERTY TAX EXEMPTION
APPLICATIONS, SO AS TO REVISE CERTAIN APPLICATIONS; TO
AMEND SECTION 12-37-220 OF THE 1976 CODE, AS AMENDED,
RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO
STANDARDIZE AT TWO VEHICLES THE MOTOR VEHICLE
EXEMPTION FOR DISABLED VETERANS, MEDAL OF HONOR
RECIPIENTS, PERSONS CONFINED TO WHEELCHAIRS, AND
FORMER POW'S AND INCLUDE LEASED VEHICLES, AND TO
EXEMPT FURNISHINGS AND FIXTURES IN TIME-SHARE UNITS;
TO AMEND SECTION 12-37-800, AS AMENDED, RELATING TO THE
PENALTY FOR FAILURE TO MAKE A PROPERTY TAX RETURN,
SO AS TO PROVIDE A PENALTY EQUAL TO TWENTY-FIVE
PERCENT OF THE TAX DUE FOR MAKING A FALSE RETURN; TO
AMEND SECTION 12-37-930, RELATING TO VALUATION OF
PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO
PROVIDE THAT "GROSS CAPITALIZED COST"
INCLUDES PROPERTY EXPENSED UNDER SECTION 179 OF THE
INTERNAL REVENUE CODE OF 1986; TO AMEND SECTION
12-37-2725, AS AMENDED, RELATING TO REFUNDS OF
PERSONAL PROPERTY TAXES PAID ON LICENSED MOTOR
VEHICLES, SO AS TO ALLOW A REFUND WHEN A VEHICLE
OWNER BECOMES A LEGAL RESIDENT OF ANOTHER STATE
AND REGISTERS THE VEHICLE IN THE NEW STATE; TO AMEND
SECTION 12-43-335, RELATING TO THE CLASSIFICATION OF
MERCHANTS' PROPERTY FOR PURPOSES OF THE PROPERTY
TAX, SO AS TO REVISE THE CLASSIFICATIONS AND ADD
CLASSIFICATIONS FOR PROPERTY OF MANUFACTURERS,
RAILROADS, PRIVATE CARLINES, AIRLINES, WATER, POWER,
TELEPHONE, CABLE TELEVISION, SEWER, AND PIPELINE
COMPANIES; AND TO AMEND ACT 168 OF 1991, RELATING TO
TAXATION, SO AS TO DEFINE "CORPORATION" FOR
THE PURPOSES OF THE ALLOWANCE OF THE FIVE-YEAR
PROPERTY TAX ABATEMENT ALLOWED A CORPORATION
WHICH ACQUIRED EIGHT OR MORE EXISTING TEXTILE
MANUFACTURING FACILITIES, AND DELETE A REFERENCE TO
COUNTY IN CALCULATING THE REQUIRED NUMBER OF
EMPLOYEES TO OBTAIN THE ABATEMENT; TO AMEND SECTION
12-23-60, RELATING TO THE DUE DATE FOR THE ELECTRIC
POWER TAX, SO AS TO CHANGE THE DUE DATE; TO REPEAL
SECTION 4-9-155, RELATING TO AUDIT STANDARDS FOR
COUNTY OFFICIALS; AND TO AMEND SECTION 12-7-1210,
RELATING TO CREDITS FOR MARRIED INDIVIDUALS FILING
JOINT TAX RETURNS, SO AS TO FURTHER PROVIDE FOR THE
DETERMINATION OF THIS CREDIT.
Be it enacted by the General Assembly of the State of South Carolina:
Retirement income
SECTION 1. Section 12-7-435(k)(5) of the 1976 Code, as added by Act
171 of 1991, is amended to read:
"(5) The deduction allowed by this item extends to the taxpayer's
surviving spouse and, to the extent the surviving spouse receives retirement
income attributable to the deceased spouse, applies in the same manner that
the deduction applied to the deceased spouse. If the surviving spouse also
has another retirement income, an additional retirement exclusion is
allowed."
Childcare credit
SECTION 2. Subsections (A), (B), and (C) of Section 12-7-1260 of the
1976 Code, as added by Act 189 of 1989, are amended to read:
"(A) A taxpayer who employs persons who are residents of this
State in any capacity may claim as a credit against his state income tax,
bank tax, or premium tax liability an amount equal to fifty percent of his
capital expenditures in this State but no more than one hundred thousand
dollars for costs incurred in establishing a child care program for his
employees. A credit claimed under this section, but not used or available
for use in a taxable year, may be carried forward for the next ten taxable
years from the close of the tax year in which the expenditures are made
until the amount of the credit is taken.
(B) For purposes of this section, `expenditures for costs incurred in
establishing a child care program' includes, but is not limited to,
expenditures, including mortgage or lease payments, for playground and
classroom equipment, kitchen appliances, cooking equipment, and real
property, including improvements in this State. The program and operation
of the program must meet the licensing, registration, or certification
standards prescribed by law.
(C) The taxpayer under subsection (A) also is allowed as a credit
against his state income tax, bank tax, or premium tax liability an amount
not exceeding fifty percent of the child care payments incurred by the
taxpayer to operate a child care program for his employees in this State, or
made directly to licensed or registered independent child care facilities in
the name of and for the benefit of an employee in this State of the taxpayer,
which employee's children are kept at the facility during the employee's
working hours. The payment may not exceed the amount charged to other
children of like age and abilities of individuals not employed by the
taxpayer. The credits allowed by this subsection may not exceed a
maximum of three thousand dollars for each employee.
Where an employee in this State chooses to utilize the provisions of this
subsection which authorize direct payments to licensed child care facilities
not operated by the employer, expenses attendant to the organization and
administration of such a direct payment program incurred in the first year
are also considered start-up expenses or expenditures for establishing a
child care program for purposes of the fifty percent tax credit for start-up
expenses authorized by subsection (A)."
Due date
SECTION 3. Section 12-7-1640 of the 1976 Code, as last amended by Act
361 of 1992, is further amended by adding at the end:
"Any tax shown to be due on a return required pursuant to this
chapter must be paid at the time the return is due to be filed, without regard
to any extension of time granted for filing the return."
Tax return
SECTION 4. Section 12-7-2419 of the 1976 Code, as added by Act 501 of
1992, is amended to read:
"Section 12-7-2419. (A) Each individual required to file a state
income tax return who desires to contribute to the Eldercare Trust Fund of
South Carolina as created by Section 43-21-160 may designate the
contribution on the appropriate state individual income tax form. The
contribution may not decrease the income tax liability of any taxpayer and
may be made by reducing the income tax refund of any taxpayer by the
amount designated or by accepting additional payment from the taxpayer
by the amount designated, whichever is appropriate.
(B) All South Carolina individual income tax return forms must contain
a designation for a contribution to the Eldercare Trust Fund of South
Carolina. The instructions accompanying income tax forms must contain a
description of the purpose for which the Eldercare Trust Fund was
established and the use of monies from the income tax contribution.
Contributions of other amounts may be made directly to the Eldercare Trust
Fund.
(C) Taxpayers who are entitled to refunds shall have the refunds
reduced by the amount designated by the taxpayer. The commission shall
determine annually the total amount so designated, plus the amount
received in excess payments and shall report the total amount to the South
Carolina Commission on Aging. The commission shall transfer the total
amount to the Eldercare Trust Fund at the earliest possible time.
(D) The incremental cost of administration of the contribution must be
paid by the trust fund from amounts received pursuant to this
section."
Apportionment
SECTION 5. Article 9, Chapter 7, Title 12 of the 1976 Code is amended
by adding:
"Section 12-7-1145. A business incorporated in a foreign country
is required to apportion only United States source income as determined for
federal purposes on form 1120F if elected. No change in the election may
be made without permission of the department. Income must be
apportioned using rules provided for apportionment in this
chapter."
Motor fuels tax
SECTION 6. Article 5, Chapter 29, Title 12 of the 1976 Code is amended
by adding:
"Section 12-27-335. (A) The tax imposed by Section 12-29-310
applies to all fuel sold or delivered by a supplier:
(1) to a service station not licensed as a supplier except in accordance
with the provisions contained in this section;
(2) to a bulk highway user;
(3) which is sold or delivered into the fuel supply tank of a motor
vehicle;
(4) which is consumed by a supplier on the highways in the
propulsion of a motor vehicle operated by the supplier.
(B) Sales of a special fuel at a service station are exempt from the tax
levied under Section 12-29-310 when the purchases are for nonhighway use
or for sale for nonhighway use and are stored separate and apart from
facilities servicing motor vehicles, if the separate storage facilities and
pumps are prominently and permanently labeled not for highway use. This
label must be in plain view of the public to indicate that nontax paid
products are contained in the area.
(C) No supplier may deliver special fuel to a service station that is not
licensed as a supplier without collecting the tax thereon unless the fuel is
delivered into a tank prominently labeled not for highway use as provided
in subsection (B)."
Duplicate refund
SECTION 7. Article 5, Chapter 54, Title 12 of the 1976 Code is amended
by adding:
"Section 12-54-138. If it is determined that a taxpayer has
received a duplicate refund, the department may assess and collect the
amount of one of the refund checks in the same manner as a tax. If the
taxpayer returns one of the refund checks uncashed, no interest must be
charged."
Dividends
SECTION 8. Section 12-7-430(d) of the 1976 Code is amended by
adding:
"(9) A dividend from a foreign corporation is treated as a
dividend from a domestic corporation for the purposes of the dividends
received deduction under Section 243 of the Internal Revenue
Code."
Credit
SECTION 9. Section 12-7-1210(B)(2)(a)(v) of the 1976 Code, as added
by Act 170 of 1987, is amended to read:
"(v) received for services performed by an individual in the
employ of his spouse within the meaning of Internal Revenue Code Section
3121(b)(3)(A) as amended through December 31, 1987; and".
Exempt
SECTION 10. Section 12-9-40(E) of the 1976 Code, as added by Act 501
of 1992, is amended by adding:
"(4) If a nonresident shareholder or partner provides the
partnership or `S' corporation with a statement that the shareholder or
partner is an organization exempt from income taxes under Internal
Revenue Code Section 501(a), then the partnership or `S' corporation is not
required to withhold with regard to that partner or shareholder. The
statement must contain the shareholder's or partner's name, federal
identification number, Internal Revenue Code section exemption number,
and a copy of the Internal Revenue Service exemption letter."
Withholding
SECTION 11. Section 12-9-390 of the 1976 Code, as last amended by Act
109 of 1991, is further amended to read:
"Section 12-9-390. (A) (1) Resident withholding agents who are
required to deposit and pay withholding to the Internal Revenue Service
under the provisions of the Internal Revenue Code as defined in Section
12-7-20(11) and applicable federal regulations adopted by the department,
shall remit all South Carolina taxes withheld pursuant to this chapter on or
before the date their federal withholding taxes are due.
(2) If a resident withholding agent is required under the Internal
Revenue Code to deposit withheld funds at a financial institution, then the
withholding agent shall deposit the funds required to be withheld under this
chapter at a financial institution selected by the State Treasurer.
(3) If a resident withholding agent is not required to deposit and pay
federal withholding to the Internal Revenue Service under the provisions of
the Internal Revenue Code and applicable regulations, the resident
withholding agent shall remit South Carolina withholding to the department
in accordance with subsection (B).
(B) A nonresident withholding agent and a resident withholding agent
described in subsection (A)(3) shall make a return and remit taxes withheld
under this chapter as follows:
(1) on or before the fifteenth day of the month following the month in
which the aggregate amount withheld is five hundred dollars or more;
or
(2) on or before the last day of the month following the quarter in
which funds were withheld if the aggregate amount withheld in a calendar
quarter is less than five hundred dollars.
(C) In order to maintain conformity with the federal withholding
system, the department may by rule adopt new federal withholding
regulations."
Cigarette tax stamps
SECTION 12. Section 12-21-720 of the 1976 Code is amended to
read:
"Section 12-21-720. (A) The license taxes imposed on cigarettes
by this article must be paid by affixing stamps in the manner and at the time
set forth in this article.
(B) The department may promulgate rules and regulations allowing
wholesale dealers in cigarettes to store cigarettes intended to be sold and
shipped out of this State in separate compartments of their business without
affixing revenue stamps.
Any wholesale dealer in cigarettes violating the rules and regulations
permitting the storage of cigarettes without affixing the stamps is liable for
the penalties contained in this chapter."
No refund
SECTION 13. Section 12-27-1510 of the 1976 Code, as last amended by
Section 173 of Act 181 of 1993, is further amended to read:
"Section 12-27-1510. A person who purchases and uses gasoline
and other motor fuels taxed by this chapter and Chapter 29 of this title on
trucking equipment for nonhighway purposes, other than propelling a
motor vehicle, may apply for a refund of or credit on the fuel tax paid. Fuel
refunds or credits for nonhighway use must be in accordance with
regulations set forth by the Department of Revenue and Taxation, and
procedures used in filing for refunds or credits must be uniform with
procedures required by the Internal Revenue Service. A person claiming a
fuel tax refund or credit on truck equipment for nonhighway purposes shall
make application to the department on proper forms within one year from
the date of purchase. No refund must be granted on fuel not used or
consumed by the purchaser before the filing of the application. The
department may allow quarterly refunds for large users. If auxiliary
equipment and the motor vehicle are powered off the same fuel tank, the
Department of Revenue and Taxation shall determine what percentage of
fuel is allowed for nonhighway purposes and subject to refund."
Report due date
SECTION 14. Section 12-31-430 of the 1976 Code is amended to
read:
"Section 12-31-430. Every motor carrier subject to the tax
imposed by this chapter shall on or before the last day of April, July,
October, and January make to the department the reports of its operations
during the quarter of the year ending the last day of the preceding month as
the department requires. Nothing in this section may be construed to
eliminate the requirement as to registration and identification markers
otherwise provided by this chapter."
Coin-operated phones
SECTION 15. Section 12-36-110(1) of the 1976 Code, as last amended by
Act 164 of 1993, is further amended by adding:
"(k) sales of all local telecommunications services by local
exchange companies (LECs) to customer owned coin-operated telephone
(COCOT) providers, as those terms are defined by the South Carolina
Public Service Commission. The COCOT providers that purchase these
services in order to provide payphone services to their customers are
considered to be the users and consumers of the services, and are not
subject to sales tax for their subsequent sale of local telecommunications
services to their COCOT customers."
Exemption revised
SECTION 16. Section 12-36-2120(15) of the 1976 Code, as last amended
by Section 198 of Act 181 of 1993, is further amended to read:
"(15) (a) gasoline and other fuels subject to tax under Chapter
27 of Title 12; however, gasoline used in aircraft is not exempt from the
sales and use tax;
(b) fuels subject to tax under Chapter 29 of Title 12; however, if the
fuel tax is subsequently refunded under Section 12-29-380, the sales or use
tax is due unless otherwise exempt, and the person receiving the refund is
liable for the sales or use tax;
(c) fuels used in farm machinery and farm tractors; and
(d) fuels used in commercial fishing vessels."
Exemption revised
SECTION 17. Section 12-36-2120(25) of the 1976 Code, as added by Act
612 of 1990, is amended to read:
"(25) motor vehicles (excluding trucks) or motorcycles, which
are required to be licensed to be used on the highways, sold to a resident of
another state, but who is located in South Carolina by reason of orders of
the United States Armed Forces. This exemption is allowed only if within
ten days of the sale the vendor is furnished a statement from a
commissioned officer of the Armed Forces of a higher rank than the
purchaser certifying that the buyer is a member of the Armed Forces on
active duty and a resident of another state or if the buyer furnishes a leave
and earnings statement from the appropriate department of the armed
services which designates the state of residence of the buyer;"
Penalty
SECTION 18. Section 12-54-40(c)(1) of the 1976 Code is amended to
read:
"(1) If any part of an underpayment is due to negligence or
disregard of regulations, or if any part of a claim for refund is due to
negligence or disregard of regulations, there must be added to the tax an
amount equal to the sum of five percent of the underpayment or negligently
claimed refund and an amount equal to fifty percent of the interest payable
under Section 12-54-20."
Disclosure
SECTION 19. Section 12-54-240(B)(13) of the 1976 Code, as last
amended by Section 237, Act 181 of 1993, is amended by adding:
"(13) disclosure of information pursuant to Section
12-54-1010(c) or 12-54-1020(c)."
Definitions
SECTION 20. (A) Section 12-54-420(1) of the 1976 Code, as last
amended by Act 10 of 1993, is further amended to read:
"(1) `Claimant agency' means a state agency, board, committee,
commission, public institution of higher learning, political subdivision, and
the Internal Revenue Service. It also includes a private institution of higher
learning for the purpose of collecting debts related to default on authorized
educational loans made pursuant to Chapter 111, 113, or 115 of Title 59.
`Political subdivision' includes the Municipal Association of South
Carolina and the South Carolina Association of Counties when these
organizations submit claims on behalf of their members or other political
subdivisions."
(B) Section 12-54-420(4) of the 1976 Code is amended to read:
"(4) `Delinquent debt' means any liquidated sum due and owing
any claimant agency, including collection costs, court costs, fines,
penalties, and interest which have accrued through contract, subrogation,
tort, operation of law, or any other legal theory regardless of whether there
is an outstanding judgment for that sum which is legally collectible and for
which a collection effort has been or is being made."
Investigation
SECTION 21. Section 12-54-810(A) of the 1976 Code, as added by Act
50 of 1989, is amended to read:
"(A) An officer or employee of the commission acting in
connection with any law administered by the department may not
knowingly authorize, require, or conduct any investigation of, or
surveillance over, any person for any purpose outside the department's
responsibilities."
Soft drink crowns repealed SECTION 22. Section 12-21-2040 of the 1976 Code is repealed.
Appeals
SECTION 23. Article 7, Chapter 4, Title 12 of the 1976 Code is amended
by adding:
"Section 12-4-755. (A) A taxpayer or his representative may
appeal an exemption denial on property owned by the taxpayer. The
taxpayer or his representative must give written notice of the appeal to the
department within thirty days from the date of the mailing of the proposed
denial. All grounds for appeal must be set forth in the notice. Upon receipt
of the taxpayer's written notice of appeal, the department shall schedule a
hearing for the appeal. No issue or ground may be considered by the
department which is not set out in the appeal notice.
(B) After hearing the appeal, the department shall issue a written
finding and send copies of the finding to the taxpayer or his representative
and the county auditor. The finding to the county auditor is the order for
entry upon the assessment rolls of the county as exempt or taxable
property.
Section 12-4-770. A taxpayer who disagrees with a proposed
assessment of his property made by the property tax division of the
department may appeal to the department by giving written notice of the
appeal within thirty days of the date of the mailing of the proposed
assessment. The original of the notice of appeal must be delivered to the
commission chairman and must contain all issues and grounds for the
appeal. Any issues and grounds that are not published or contained in the
notice of appeal may not be considered by the department in hearing the
appeal. The notice of appeal must contain the valuation and assessment
which the owner considers to be the fair market value and assessment of the
property. The department may, upon request within the thirty-day period,
extend the time for filing the written notice of appeal."
Rounding
SECTION 24. Article 1, Chapter 37, Title 12 of the 1976 Code is
amended by adding:
"Section 12-37-120. In the calculation of the assessed value of
property subject to property tax, the result must be rounded to the nearest
ten dollars and this rounded amount is deemed the assessed value of the
property."
Assessing
SECTION 25. Chapter 39, Title 12 of the 1976 Code is amended by
adding:
"Section 12-39-70. For the purpose of appraising and assessing
personal property of businesses and other entities under the jurisdiction of
the county auditor, the county auditor shall follow the classification of the
most recent Standard Industrial Classification Manual, Bureau of The
Budget, as follows:
(1) Division A - Major Groups, 01, 02, 07, 08, 09, unless exempt;
(2) Division H - Major Groups, 60, 61, 62, 63, 64, 65, 66, 67, unless
exempt;
(3) Division 1 - Major Group, 70, 80, 81, 82, 83, 84, 86, 87, 88, 89,
unless exempt."
Authority
SECTION 26. Section 12-4-320 of the 1976 Code, as added by Act 50 of
1991, is amended by adding:
"(6) if damage by natural forces occurs as defined in Section
12-9-310, prescribe temporary rules including, but not limited to, the filing
of returns, payment of taxes, and extensions of due dates."
Appraisers
SECTION 27. Section 12-4-330 of the 1976 Code, as added by Act 50 of
1991, is amended by adding a new subsection to read:
"(E) Out-of-state appraisers serving as witnesses are not required
to be licensed or certified in this State. For purposes of this section,
out-of-state appraisers are defined as appraisers with a business address
outside of this State."
Applications
SECTION 28. Section 12-4-720(A) of the 1976 Code, as added by Act 50
of 1991, is amended to read:
"(A) Applications for property exemptions must be filed as
follows:
(1) Except as otherwise provided in items (2) and (3) of this
subsection, any tax-exempt property owner or property owner whose
property may qualify for property exemption shall file an application for
exemption with the department between January first and April fifteenth of
the first year for which the exemption is claimed.
(2) Owners of property exempt under Section 12-37-220A(7) and (8),
B(32), (33), and (34) shall file an annual application for exemption before
the last day of the fourth month after the close of the accounting period
regularly employed by the taxpayer for income tax purposes in accordance
with Chapter 7 of this title.
(3) Owners of property exempt under Section 12-37-220B(26) and
(27) and churches which own motor vehicles shall file an application for
exemption within sixty days before or within thirty days after the date on
which the motor vehicle was registered or the registration renewal date. Thereafter, except as provided in item (2), the owner is not required to
file an additional application, unless there is a change in the status of the
property as reported on the initial application or unless requesting an
exemption for property which was not included on the initial or subsequent
application."
Exemptions
SECTION 29. (A) Items (3), (26), (27), and (29) of Section 12-37-220(B)
of the 1976 Code, as last amended by Section 200, Act 181 of 1993, are
further amended to read:
"(3) Two personal motor vehicles owned or leased by any
disabled veteran designated by the veteran for which special license tags
have been issued by the Department of Revenue and Taxation under the
provisions of Sections 56-3-1110 to 56-3-1130 or, in lieu of the license, if
the veteran has a certificate signed by the county service officer or the
Veterans Administration of the total and permanent disability which must
be filed with the Department of Revenue and Taxation.
(26) Two personal motor vehicles owned or leased by recipients of
the Medal of Honor for which special license tags have been issued by the
Department of Revenue and Taxation under the provisions of Article 16 of
Chapter 3 of Title 56 .
(27) Two personal motor vehicles, owned or leased either solely or
jointly by persons required to use wheelchairs, for which special license
tags have been issued by the Department of Revenue and Taxation under
the provisions of Section 56-3-1910.
(29) Two personal motor vehicles or trucks, not exceeding
three-quarter ton, owned or leased by and licensed and registered in the
name of any member or former member of the armed forces who was a
prisoner of war (POW) in World War I, World War II, the Korean Conflict,
or the Vietnam Conflict and who is a legal resident of this State, for which
motor vehicle or truck a special tag has been issued by the Department of
Revenue and Taxation in accordance with the provisions of Sections
56-3-1150 and 56-3-1160. This exemption also extends to the surviving
spouse of a qualified former POW for the lifetime or until the remarriage of
the surviving spouse."
(B) Section 12-37-220(B) of the 1976 Code is amended by adding an
appropriately numbered item to read:
"( ) Property exempt under subsection A(5) of this section when
located in a time-share unit."
Penalties
SECTION 30. Section 12-37-800 of the 1976 Code, as last amended by
Act 344 of 1988, is further amended to read:
"Section 12-37-800. (A) If a person fails to list the real or
personal property required by law to be listed in any one year, the value of
the property may be charged against the person for taxation with a ten
percent penalty added, and the taxes and penalty collected as in other
cases.
(B) In addition to any other penalty, a person who intentionally makes a
false return, wilfully attempts to understate tax liability, or recklessly or
intentionally disregards applicable rules or regulations must be assessed a
penalty equal to twenty-five percent of the taxes due.
(C) Upon good cause shown, the department may waive or reduce the
penalty imposed pursuant to this section."
Depreciation
SECTION 31. The penultimate paragraph of Section 12-37-930 of the
1976 Code is amended to read:
"In no event may the original cost be reduced more than eighty
percent. In the year of acquisition, depreciation is allowed as if the
property were owned for the full year. The term `original cost' means gross
capitalized cost, including property on which the taxpayer made the
election allowed pursuant to Section 179 of the Internal Revenue Code of
1986, as shown by the taxpayer's records for income tax
purposes."
Cancellation
SECTION 32. Section 12-37-2725 of the 1976 Code, as last amended by
Section 215 of Act 181 of 1993 and Part II, Section WW, Act 164 of 1993
is further amended to read:
"Section 12-37-2725. When the title to a licensed vehicle is
transferred, or the owner of the vehicle becomes a legal resident of another
state and registers the vehicle in the new state of residence, the license plate
and registration certificate issued the transferor may be returned for
cancellation. The license plate and registration certificate must be
delivered to the auditor of the county of the vehicle's registration and tax
payment. A request for cancellation must be made in writing to the auditor
upon forms approved by the Department of Revenue and Taxation. The
auditor, upon receipt of the license plate, registration certificate, and the
request for cancellation, shall order and the treasurer shall issue a credit or
refund of property taxes paid by the transferor on the vehicle. The amount
of the refund of credit is that proportion of the tax paid that is equal to that
proportion of the complete months remaining in that tax year. The auditor,
within five days thereafter, shall deliver the license plate, registration
certificate, and the written request for cancellation to the Department of
Revenue and Taxation. Upon receipt, the department shall cancel the
license plate and registration certificate and may not reissue the
same."
Assessing
SECTION 33. Section 12-43-335 of the 1976 Code, as last amended by
Section 224, Act 181 of 1993, is further amended to read:
"Section 12-43-335. (A) For the purpose of assessing property of
merchants and related businesses, as provided by Section 12-37-970, the
department shall follow the classifications of the most recent Standard
Industrial Classification Manual, Bureau of the Budget, as follows:
(1) Division C;
(2) Division E, Major Group 41, except number 414
Major Group 42, except number 4213
Major Group 44, except number 444
Major Group 45, except number 451
Major Group 47
Major Group 48, except numbers 481, 482, 484
Major Group 49, except numbers 491, 493, 494, 4952;
(3) Division F;
(4) Division G;
(5) Division I, Major Groups 72, 73, 75, 76, 78, and 79;
(6) Division K.
(B) For the purpose of assessing property of manufacturers as provided
in Section 12-4-540(A), the department shall follow the classifications set
out in Division B and Division D of the most recent Standard Industrial
Classification Manual, Bureau of the Budget; however, establishments
which publish newspapers, books, and periodicals which do not have
facilities for printing or which do not actually print their publications are
not classified as manufacturers, notwithstanding the provisions of Division
D, Major Group 27, relating to printing, publishing, and allied
industries.
(C) For the purpose of assessing property of railroads, private carlines,
airlines, water, power, telephone, cable television, sewer and pipeline
companies, as provided in Section 12-4-540(A), the department shall
follow the Division E classification of the most recent Standard Industrial
Classification Manual, Bureau of the Budget, as follows:
(1) Major Group 40;
(2) Major Group 41, except numbers 411, 412, 413, 415, and 417;
(3) Major Group 42, except numbers 4212, 4214, 4215, 422, and
423;
(4) Major Group 44, except numbers 441, 442, 443, 448, and 449;
(5) Major Group 45, except numbers 452 and 458;
(6) Major Group 46;
(7) Major Group 48, except numbers 483 and 489;
(8) Major Group 49, except numbers 492, 4953, 4959, 496, and
497."
Abatement
SECTION 34. Section 17(A) of Act 168 of 1991 is amended to read:
"(A) A corporation which acquires eight or more existing textile
manufacturing facilities in South Carolina which employed at the time of
acquisition a total of three thousand, five hundred or more employees
located in this State may receive the five-year abatement pursuant to
Section 12-37-220A(7) of the 1976 Code from the time of acquisition. For
purposes of this item acquisition means asset transactions which are
arms-length and includes new capital. For purposes of this section
`corporation' means a single corporation or an `affiliated group' of
corporations as defined in Section 1504 of the Internal Revenue Code of
1986, as amended, which may acquire such facilities pursuant to a single
transaction. This section also applies to wholly-owned subsidiaries of the
corporation which may have acquired any of the eight textile
manufacturing facilities from the corporation in a tax-free transaction
pursuant to Section 351 of the Internal Revenue Code of 1986, as
amended."
Due date
SECTION 35. Section 12-23-60 of the 1976 Code is amended to read:
"Section 12-23-60. Every person subject to the provisions of this
article shall on or before the twentieth day of each month make a true and
correct return to the department in such form as it may prescribe, showing
the exact amount of electric power manufactured, generated or sold,
expressed in kilowatt hours, during the previous month, and remit the tax
therewith."
Audit standards repealed
SECTION 36. Section 4-9-155 of the 1976 Code is repealed.
Time effective
SECTION 37. This act takes effect upon approval by the Governor.
Approved the 31st day of August, 1994. | 
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