S 0050 General Bill, By Hayes and Elliott
 A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXTEND THE
 EXEMPTION ALLOWED DURING THE AUGUST SALES TAX HOLIDAY TO BED AND BATH LINENS.

   12/08/04  Senate Prefiled
   12/08/04  Senate Referred to Committee on Finance
   01/11/05  Senate Introduced and read first time SJ-104
   01/11/05  Senate Referred to Committee on Finance SJ-104
   01/26/05  Senate Committee report: Favorable Finance SJ-20
   01/27/05  Senate Read second time SJ-19
   02/01/05  Senate Read third time and sent to House SJ-12
   02/02/05  House  Introduced and read first time HJ-8
   02/02/05  House  Referred to Committee on Ways and Means HJ-9

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

January 26, 2005

S. 50

S. Printed 1/26/05--S.

Read the first time January 11, 2005.

To whom was referred a Bill (S. 50) to amend Section 12-36-2120, as amended, Code of Laws of South Carolina, 1976, relating to sales tax exemptions, so as to extend the exemption, etc., respectfully

That they have duly and carefully considered the same and recommend that the same do pass:

HUGH K. LEATHERMAN, SR. for Committee.

REVENUE IMPACT 1/

This bill would reduce sales and use tax revenue by an estimated $70,000 in FY2005-06. Of this amount, $56,000 is a reduction in general fund sales and use tax revenue, and $14,000 is a reduction in Education Improvement Act funds.

Explanation

This bill would amend Section 12-36-2120 of the Code of Laws of South Carolina to extend a sales tax exemption to bed and bath linens during the three-day sales tax holiday during the first weekend in August. In 2004, twelve states and the District of Columbia had enacted sales tax holidays. According to the latest data provided by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditure Report, the average household spends $132.52 each year on household textile products, of which over 65 percent is spent on bed and bath linens. Multiplying this expenditure across 1,600,000 households in the state produces annual sales of bed and bath linens of an estimated $141,400,000. Applying a sales and use tax rate of five percent to the annual sales figure, dividing this figure by 365 days per year, and multiplying the result by three sales tax-free days in August yields an estimated $58,100 of sales and use tax. Applying a twenty percent factor for pent-up buying and additional sales yields a reduction in sales and use tax revenue of an estimated $70,000 in FY2005-06. Of this amount, $56,000 is a reduction in general fund sales and use tax revenue, and $14,000 is a reduction in Education Improvement Act funds.

Approved By:

William C. Gillespie

Board of Economic Advisors

1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.

TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXTEND THE EXEMPTION ALLOWED DURING THE AUGUST SALES TAX HOLIDAY TO BED AND BATH LINENS.

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

SECTION    1.    Section 12-36-2120(57)(a)(v) of the 1976 Code, as added by Act 387 of 2000, is amended to read:

"(v)    computers, printers and printer supplies, and computer software;

(vi)    bath wash clothes, blankets, bed spreads, bed linens, sheet sets, comforter sets, bath towels, shower curtains, bath rugs and mats, pillows, and pillow cases."

SECTION    2.    This act takes effect upon approval by the Governor.