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Bill Number: 3371 Ratification Number: 747 Act Number 639 Introducing Body: House Subject: The sharing of sales and use tax returns and records with other states of the United States
(A639, R747, H3371)
AN ACT TO AMEND SECTION 12-35-1540, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SHARING OF SALES AND USE TAX RETURNS AND RECORDS WITH OTHER STATES OF THE UNITED STATES, SO AS TO PERMIT RECIPROCAL AGREEMENTS WITH OTHER STATES TO OBTAIN RECORDS OF SALES OR PURCHASE OF TANGIBLE PERSONAL PROPERTY OF FIVE HUNDRED DOLLARS OR MORE AND TO AMEND THE 1976 CODE BY ADDING SECTION 12-35-1545 SO AS TO REQUIRE REPORTING TO THE TAX COMMISSION OF INDIVIDUAL SALES OF TANGIBLE PERSONAL PROPERTY OF FIVE HUNDRED DOLLARS OR MORE NOT SUBJECT TO SALES OR USE TAX IN THIS STATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-35-1540 of the 1976 Code is amended to read:
"Section 12-35-1540. Notwithstanding the provisions of Section 12-35-1530, the commission may permit the Commissioner of Internal Revenue of the United States or the proper officer of any state imposing a sales or use tax similar to that imposed by this chapter, or the authorized representative of any such officer, to inspect the returns of a person, or may furnish to such officer or his authorized representative a copy of the return of a person or supply him with information concerning any item contained in a return or disclosed by the report of any investigation, but the permission must be granted or information furnished to the officer or his representative only if the statutes of the United States or of the other state, as the case may be, grant substantially similar privileges to the proper officer of this State charged with the administration of this chapter.
In addition, the commission may enter into a reciprocal agreement with the comparable department of another state to furnish records concerning purchases of tangible personal property made by residents of another state where the retailer collects neither a sales nor a use tax on the sale if the other state agrees to furnish the same records to this State and each sale is five hundred dollars or greater."
SECTION 2. Article 9, Chapter 35, Title 12 of the 1976 Code is amended by adding:
"Section 12-35-1545. When tangible personal property is sold within this State and the seller is obligated to deliver it to the buyer or to an agent of the buyer at a point outside this State or to deliver it to a carrier or to the mails for transportation to the buyer or to an agent of the buyer at a point outside this State, the retail sales tax does not apply if the property is not returned by the seller to a point within the State. The commission may require all retailers in this State making retail sales to purchasers in another state as provided in this section to furnish to the commission copies of all invoices or suitable substitutes containing the name and address of the purchaser, a brief description of the goods sold, and the total amount of the sale regarding each retail sale of five hundred dollars or greater, not aggregated by amount over any period of time, with their monthly returns. Where, pursuant to a retail sale, tangible personal property is delivered in this State to the buyer or to an agent of the buyer other than a carrier, the retail sales tax applies notwithstanding that the buyer may transport subsequently the property out of the State."
SECTION 3. This act takes effect upon approval by the Governor.