H 3153 General Bill, By Harrell, Wilkins, Littlejohn, Young, Kirsh, Bailey, 
Battle, Rice, Hinson and Sandifer
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 12-6-60 SO AS TO PROVIDE FOR DETERMINATION OF A NEXUS WITH THIS STATE FOR
 PURPOSES OF INCOME TAX AND CORPORATE LICENSE FEE IN CONNECTION WITH A
 DISTRIBUTION FACILITY AND TO DEFINE "DISTRIBUTION FACILITY"; AND BY ADDING
 SECTION 12-36-2690 SO AS TO PROVIDE FOR DETERMINATION OF A NEXUS WITH THIS
 STATE FOR SALES AND USE TAX PURPOSES IN CONNECTION WITH A DISTRIBUTION
 FACILITY AND TO DEFINE "DISTRIBUTION FACILITY".

   12/15/04  House  Prefiled
   12/15/04  House  Referred to Committee on Ways and Means
   01/11/05  House  Introduced and read first time HJ-103
   01/11/05  House  Referred to Committee on Ways and Means HJ-103

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-60 SO AS TO PROVIDE FOR DETERMINATION OF A NEXUS WITH THIS STATE FOR PURPOSES OF INCOME TAX AND CORPORATE LICENSE FEE IN CONNECTION WITH A DISTRIBUTION FACILITY AND TO DEFINE "DISTRIBUTION FACILITY"; AND BY ADDING SECTION 12-36-2690 SO AS TO PROVIDE FOR DETERMINATION OF A NEXUS WITH THIS STATE FOR SALES AND USE TAX PURPOSES IN CONNECTION WITH A DISTRIBUTION FACILITY AND TO DEFINE "DISTRIBUTION FACILITY".

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

SECTION    1.    A.        Chapter 6 of Title 12 of the 1976 Code is amended by adding:

"Section 12-6-60.    (A)    Notwithstanding another provision of this chapter, whether or not a person has nexus with South Carolina for income tax and corporate license fee purposes, is determined without regard to whether the person:

(1)    owns or utilizes a distribution facility within South Carolina;

(2)    owns or leases property at a distribution facility within South Carolina that is used at, or distributed from, that facility; or

(3)    sells property shipped or distributed from a distribution facility within South Carolina.

(B)    The distribution facility is not considered to be a fixed place of business in South Carolina for the purposes of nexus.

(C)    For purposes of this section, a distribution facility is defined in Section 12-6-3360."

B.        Chapter 36 of Title 12 of the 1976 Code is amended by adding:

"Section 12-36-2690.    (A).    Notwithstanding another provision of this chapter, owning or utilizing a distribution facility within South Carolina is not considered in determining whether the person has a physical presence in South Carolina sufficient to establish nexus with South Carolina for sales and use tax purposes.

(B)    For purposes of this section, a distribution facility is defined in Section 12-6-3360."

SECTION    2.    This act takes effect upon approval by the Governor and applies to taxable years beginning January 1, 2006.