Bill 3968

                    Current Status

Bill Number:               3968
Ratification Number:       741
Act Number                 633
Introducing Body:          House
Subject:                   Sales tax on Medicare or Medicaid
                           reimbursed items

(A633, R741, H3968)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-35-125 SO AS TO PROVIDE THAT WHEN A VENDOR SELLS ITEMS TO A PURCHASER, THE COST OF WHICH OR PART OF THE COST OF WHICH WILL BE PAID BY MEDICARE OR MEDICAID, THE VENDOR SHALL PAY SALES TAX ONLY ON THE NET AMOUNT REIMBURSED BY MEDICARE OR MEDICAID IF THE VENDOR BY LAW IS PROHIBITED FROM CHARGING THE PURCHASER THE DIFFERENCE BETWEEN THE RETAIL SALES PRICE AND THE AMOUNT REIMBURSED.

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

Sales tax on Medicare or Medicaid reimbursed items

SECTION 1. The 1976 Code is amended by adding:

"Section 12-35-125. When a vendor sells items to a purchaser, the cost of which or part of the cost of which will be paid by Medicare or Medicaid, the vendor, if this sale is subject to the sales tax, shall pay sales tax only on the net amount reimbursed by Medicare or Medicaid if the vendor by law is prohibited from charging the purchaser the difference between the retail sales price and the amount reimbursed."

Time effective

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