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1275Ratification Number: 550Act Number: 482Introducing Body: SenateSubject: Relating to the reporting of sales tax by a retailer under conditional sales contracts
(A482, R550, S1275)
AN ACT TO AMEND SECTION 12-35-540, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REPORTING OF SALES TAX BY A RETAILER UNDER CONDITIONAL SALES CONTRACTS, SO AS TO PROVIDE THAT WHEN SALES OF RETAILERS ARE MADE ON AN INSTALLMENT BASIS WHICH CONFORM TO THE UNIFORM COMMERCIAL CODE AND FOR WHICH THE RETAILER TAKES A SECURITY INTEREST THE VENDOR MAY ELECT TO RETURN A PORTION OF THE SALES PRICE ACTUALLY RECEIVED OR INCLUDE THE ENTIRE SALES PRICE TO THE STATE TAX COMMISSION FOR SALES TAX PURPOSES AND TO AMEND SECTION 12-37-800, RELATING TO PENALTIES FOR FAILURE TO LIST PERSONAL PROPERTY FOR PURPOSES OF AD VALOREM TAXATION, SO AS TO ALLOW THE TAX COMMISSION TO WAIVE OR REDUCE THE PENALTY FOR GOOD CAUSE SHOWN.
Be it enacted by the General Assembly of the State of South Carolina:
Retailer may elect
SECTION 1. Section 12-35-540 of the 1976 Code is amended to read:
"Section 12-35-540. On all sales of retailers made on an installment basis which conforms to the provisions of the Uniform Commercial Code whereby the retailer takes a security interest the vendor may elect to include in the return only the portion of the sales price actually received by the retailer during the taxable period or to include the entire sales price in the return for the taxable period during which the sale was consummated. Having once elected either method of reporting the sales, the taxpayer must so continue unless and until permission has been received from the commission to make a change. Nothing in this section may be construed to permit delay in reporting sales under other terms of credit or cash sales.
The commission may, for any cause, require a taxpayer to include in his returns the entire sales price of articles sold on an installment basis which conforms to the provisions of the Uniform Commercial Code in which the retailer takes a security interest."
Retailer to continue to pay tax
SECTION 2. A retailer shall continue to pay the tax upon receipt of the payments on installment sales made prior to the effective date of this act if the retailer had, at the time of sale, elected to report the tax upon receipt of the installment payments.
Tax Commission may waive or reduce penalty
SECTION 3. Section 12-37-800 of the 1976 Code is amended to read:
"Section 12-37-800. If any person shall fail to list the personal property he is required by law to list in any one year, the value thereof may be charged against him for taxation with a ten percent penalty added thereto, and the taxes and penalty collected as in other cases; provided, however, upon good cause shown, the Tax Commission may waive or reduce the penalty charged herein on property required to be listed with the Tax Commission."
SECTION 4. This act shall take effect upon approval by the Governor.