Current Status Introducing Body:
HouseBill Number: 3269Primary Sponsor: KirshType of Legislation: GBSubject: Sales and Use Tax ActResiding Body: HouseCompanion Bill Number: 529Computer Document Number: JIC/5215.HCIntroduced Date: Jan 22, 1991Date of Last Amendment: Jun 03, 1992Last History Body: SenateLast History Date: Jun 04, 1992Last History Type: Read third time, returned with amendmentScope of Legislation: StatewideAll Sponsors: Kirsh McTeer D. ElliottType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 3269 Senate Jun 04, 1992 Read third time, returned with amendment 3269 Senate Jun 03, 1992 Amended 3269 Senate Feb 25, 1992 Consideration interrupted by adjournment 3269 Senate Apr 29, 1991 Read second time, notice of general amendments 3269 Senate Apr 25, 1991 Committee Report: Favorable 06 3269 Senate Mar 21, 1991 Introduced, read first time, 06 referred to Committee 3269 House Mar 21, 1991 Read third time, sent to Senate 3269 House Mar 20, 1991 Amended, read second time 3269 House Mar 19, 1991 Committee Report: Favorable 30 with amendment 3269 House Jan 22, 1991 Introduced, read first time, 30 referred to CommitteeView additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
June 3, 1992
Introduced by REPS. Kirsh, McTeer and D. Elliott
S. Printed 6/3/92--S.
Read the first time March 21, 1991.
TO AMEND SECTIONS 12-36-120, 12-36-910, 12-36-920, 12-36-930, 12-36-2120, 12-36-2560, AND 12-36-2650, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO MAKE TECHNICAL CORRECTIONS; AND TO AMEND THE 1976 CODE BY ADDING SECTIONS 12-36-560, 12-36-570, 12-36-1730, 12-36-1740, 12-36-2660, AND 12-36-2670, SO AS TO PROVIDE CRIMINAL AND CIVIL PENALTIES FOR VIOLATIONS RELATING TO RETAIL LICENSES AND THE CASUAL EXCISE TAX, TO PROVIDE FOR ENFORCEMENT, AND AUTHORIZE THE MEMBERS OF THE TAX COMMISSION OR THEIR DESIGNEES TO ADMINISTER OATHS OR TAKE ACKNOWLEDGMENTS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Items (1) and (4) of Section 12-36-120 of the 1976 Code are amended to read:
"(1) tangible personal property to licensed retail merchants, jobbers, dealers, or wholesalers for resale, and do not include sales to users or consumers not for resale;"
"(4) materials, containers, cores, labels, sacks, or bags used incident to the sale and delivery of tangible personal property, or used by manufacturers, processors, and compounders in shipping tangible personal property."
SECTION 2. That portion of Section 12-36-910(B) which precedes item (1) is amended to read:
"(B) The sales tax imposed by this article also applies to the:"
SECTION 3. Section 12-36-920 of the 1976 Code is amended by adding:
"(E) The taxes imposed by this section are imposed on every person engaged or continuing within this State in the business of furnishing accommodations to transients for consideration."
SECTION 4. Section 12-36-930(A)(2) of the 1976 Code is amended to read:
"(2) the tax that would be imposed under this article chapter."
SECTION 5. Section 12-36-2120(9)(d) of the 1976 Code is amended to read:
"(d) the generation of motive power for transportation. For the purposes of this item exemption, `manufacturer' or `manufacturing' includes the activities of mining and quarrying;"
SECTION 6. Section 12-36-2120(12) of the 1976 Code is amended to read:
"(12) water sold by public utilities, if rates and charges are of the kind determined by the Public Service Commission, or water sold by nonprofit corporations organized pursuant to Sections 33-35-10 to 33-35-170;"
SECTION 7. Section 12-36-2120(26) of the 1976 Code is amended to read:
"(26) all supplies, technical equipment, machinery, and electricity sold to radio and television stations, and cable television systems, for use in producing, broadcasting, or distributing programs. For the purpose of this exemption, radio stations, television stations, and cable television systems are deemed to be manufacturers;"
SECTION 8. The first paragraph of Section 12-36-2560 of the 1976 Code is amended to read:
"On all sales of retailers liable for the tax imposed by Article 9 of this chapter (sales tax) made on an installment basis which conform to the provisions of the Uniform Commercial Code in which 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 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."
SECTION 9. Section 12-36-2650 of the 1976 Code is amended to read:
"Section 12-36-2650. The taxes imposed by this chapter are in addition to all other taxes, licenses, and charges and no provisions of this chapter may be construed to relieve a person from the payment of a license or privilege tax now or hereafter imposed by law."
SECTION 10. Article 5, Chapter 36, Title 12 of the 1976 Code is amended by adding:
"Section 12-36-560. A person liable for the license tax provided by this article who engages in business as a seller or retailer in this State without a retail license or after the license has been suspended, and each officer of a corporation which engages in business without a retail license or after the license is suspended, is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than two hundred dollars or imprisonment not exceeding thirty days, or both. Offenses under this section are triable in magistrate's court.
Section 12-36-570. A person liable for the license tax provided by this article who fails to pay the tax or obtain the license within the time provided or who fails to comply with a lawful regulation of the commission is liable for a penalty not to exceed two thousand five hundred dollars."
SECTION 11. Article 17, Chapter 36, Title 12 of the 1976 Code is amended by adding:
"Section 12-36-1730. A person who wilfully or knowingly makes a false statement for the purpose of avoiding all or a part of the casual excise tax imposed by this article or who assists another person to avoid all or a part of the casual excise tax levied by this article is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than two hundred dollars or imprisoned not more than thirty days, or both. Offenses under this section are triable in magistrate's court.
Section 12-36-1740. A person liable for the casual excise tax provided by this article who fails to pay the tax or comply with a lawful regulation of the commission is liable for a penalty not to exceed two thousand five hundred dollars."
SECTION 12. Article 25, Chapter 36, Title 12 of the 1976 Code is amended by adding:
"Section 12-36-2660. The Tax Commission shall administer and enforce the provisions of this chapter.
Section 12-36-2670. The commissioners or their designees may administer an oath to a person or take the acknowledgement of a person with respect to a return or report required by this title or the regulations of the commission."
SECTION 13. Chapter 43, Title 12 of the 1976 Code is amended by adding:
Section 12-43-510. (A) As used in this article:
(1) `Board' or `board of appeal' means the board for each county established to hear appeals of taxpayers concerning the valuation, assessment, and taxation of their property.
(2) `Assessor' means the county officer or official charged with the duty to assess or value, or both assess and value, real property.
(3) `Taxpayer' means the person instituting the appeal.
(4) `Panel' means a group of three members of the board of appeal.
(B) Each county shall have a board of appeal consisting of from seven to twelve members elected by the governing body of the county. Members shall serve for terms of four years and until their successors are elected and qualify except that of those first elected, the council shall provide for staggered terms. The board shall elect a chairman who may call meetings or hearings for the purpose of hearing appeals from the assessor's office. When in the judgment of the chairman there is a need for additional hearings, he may name panels to hear appeals. The chairman may call hearings for the board or panels as often as he considers necessary. The chairman shall appoint panel chairmen who shall serve at his pleasure. A panel has the same authority as the full board.
(C) If the board does not schedule a hearing within one and one-half years of the appeal, then the taxpayer's value is the taxable value contended by the taxpayer for the tax year in question. This rule does not apply if the taxpayer requests a hearing be delayed or rescheduled.
(D) The county shall pay board members mileage at the same rate as other county employees and an amount to attend board or panel meetings of at least fifty dollars a meeting. This subsection does not prohibit the county from paying a greater amount for attending.
(E) If all of the following conditions are met:
(1) a taxpayer has made an appeal to a board;
(2) the hearing of the board is not held until after one or more subsequent assessment dates for the property;
(3) no event has occurred between the date of the assessment being appealed and the date of the hearing which would change the assessment of the property, such as improvements to the property, destruction of part of the property by fire, storm, etc.; and
(4) the person responsible for paying the taxes has not changed between the date of the assessment being appealed and the date of the hearing;
then the appeal will be automatically extended to cover those subsequent assessment dates before the hearing.
(F) The term `board' as used in current property tax regulations is considered to mean `board' or `panel' or both as appropriate.
Section 12-43-520. (A) A taxpayer or the assessor may appeal from the finding of the board upon written notice to the chairman of the commission within twenty days from the date of the board's finding. The grounds for the appeal must be filed with the board. The board, upon receipt of the notice of appeal, shall deliver a copy of the notice to the assessor or the owner.
(B) Not more than thirty days after receipt of the notice of appeal, the board shall deliver to the commission, the assessor, and the taxpayer a certified copy of the proceedings before that board together with the transcript of testimony and exhibits offered to the board. The records must be sent in the following order:
(1) the board's order;
(2) the transcript of the individual hearing before the board;
(3) the assessor's documents submitted to the board as evidence. Each document must be marked sequentially as assessor's Exhibit Number 1, et seq. Identification must occur at the time a document is introduced at the hearing;
(4) the taxpayer's documents submitted to the board as evidence marked in the same manner as the assessor's; and
(5) the taxpayer's appeal letter to the board.
On receipt, the commission shall schedule a hearing on the appeal. No issue or matter may be considered by the commission that was not first presented to the board. All grounds or exceptions must be set out in the notice of appeal to the commission.
(C) The taxpayer or his representative and the assessor or his designee shall attend the hearing and offer argument in support of their respective positions. The board, by representation or otherwise, may attend the hearing and offer argument in support of its findings. The commission shall, after considering the argument, record, and evidence, issue a written finding. Copies must be transmitted to the taxpayer, the board, the assessor, and the county auditor. The finding to the county auditor is the order for entry upon the assessment rolls or tax duplicate of the county.
(D) Nothing in this section may be construed to prohibit a property owner the right to petition the commission for relief on a matter over which the commission exercises original jurisdiction."
SECTION 14. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-120. The taxpayer aggrieved by the valuation of personal property required to be licensed or registered with an agency or department of the State may appeal the valuation. For purposes of the appeal the tax notice is the notice of appraisal and assessment. The appeal must be in writing to the county auditor and mailed or given to the auditor by the due date of the taxes. Upon receipt of the appeal the county auditor shall mail the taxpayer an appeal form which must be completed and returned to the auditor within twenty days of mailing. The form must be approved by the commission before being used by the county.
The information requested on the form must be provided. A failure to do so constitutes an abandonment of the appeal. Upon receipt of the information the county auditor shall review it and take the necessary action to reflect the market value of the properties. The county auditor shall notify the taxpayer of the action within twenty days after receipt of the completed appeal form. If the taxpayer is still aggrieved by the decision of the county auditor, he may appeal to the commission by filing a written notice of appeal with the chairman of the commission within twenty days of the auditor's actions. A copy of the notice must be forwarded to the county auditor, and shall contain all the grounds and reasons for the appeal. Grounds that are not published or contained in the notice of appeal may not be considered by the commission in hearing the appeal. The commission shall then set a date for a hearing. The county auditor or his representative must be present at the hearing. The commission shall hear the appeal upon the record and also may accept and consider new and additional evidence. The commission shall make its decision upon the record before it.
However, a taxpayer aggrieved by the valuation of personal property, other than that required to be licensed or registered with an agency or department of the State, that was determined by the county auditor may appeal to the commission. The appeal must be in writing and mailed or given to the chairman of the commission within twenty days of the tax notice. The notice of appeal shall contain all grounds for the appeal. Grounds that are not published or contained in the notice of appeal may not be considered by the commission in hearing the appeal. The notice of appeal shall further contain the valuation and assessment which the owner considers the fair market value and assessment of the property. The commission shall then set a date for a hearing. The county auditor or his representative must be present at the hearing. The commission shall hear the appeal upon the record and may also accept and consider new and additional evidence. The commission shall make its decision upon the record before it."
SECTION 15. Section 12-37-90 of the 1976 Code is amended by adding:
"(i) keep an appeals log book with the following information:
(1) name of owner and date of appeal;
(2) tax map identification number of the parcel appealed;
(3) basis of the appeal;
(4) value and assessment before appeal;
(5) value and assessment after appeal;
(6) basis of changes and the name of the appraiser who made the change; and
(7) the appeal results if appealed to the local board.
(j) have in his care and responsibility tax maps, aerial photography, overlays, updates, and all other related matters of tax mapping."
SECTION 16. (A) Section 17(A) of Act 168 of 1991 is amended to read:
"(A) A corporation which acquires eight or more existing textile manufacturing facilities in South Carolina which employed at the time of acquisition a total of three thousand five hundred or more employees located in a county of this State may receive the five-year abatement pursuant to Section 12-37-220A(7) of the 1976 Code from the time of acquisition. For purposes of this item `acquisition' means asset transactions which are arms-length and include new capital. For purposes of this section `corporation' means a single corporation or an `affiliated group' of corporations, as defined in Section 1504 of the Internal Revenue Code of 1986, as amended, which may acquire such facilities pursuant to a single transaction. This section also applies to wholly-owned subsidiaries of the corporation which may have acquired any of the eight textile manufacturing facilities from the corporation in a tax free transaction pursuant to Section 351 of the Internal Revenue Code of 1986, as amended."
(B) This section is effective with respect to acquisitions after April 30, 1988.
SECTION 17. Section 12-36-110(1)(g) of the 1976 Code, as added by Act 612 of 1990, is amended to read:
"(g) sales of tangible personal property food products, other than cigarettes and soft drinks in closed containers, to vendors who sell the property through vending machines. The vendors of food products other than soft drinks in closed containers are deemed to be the users or consumers of the property products;"
SECTION 18. (A) Chapter 10, Title 4 of the 1976 Code is amended by adding:
"Section 4-10-110. Funds collected by the commission from the local option sales tax which are not identified as to the governmental unit due the tax, after a reasonable effort by the commission to determine the appropriate governmental unit, must be deposited to a local option supplemental revenue fund. These funds must be distributed quarterly to the governmental units imposing the tax on the basis of distribution in each unit."
(B) Notwithstanding the distribution provisions of Section 4-10-110 of the 1976 Code, the first three hundred seventy-five thousand dollars distributed pursuant to that section must be deposited in the Local Government Fund established pursuant to Chapter 27 of Title 6 in lieu of the requirements of Section 3 of Act 317 of 1990. The revenue deposited by this section to the Local Government Fund must be made on an equal basis between county and municipal governments.
SECTION 19. Notwithstanding the provisions of Section 4-10-60 of the 1976 Code, for the purpose of distribution only, the State Treasurer shall distribute all revenue credited to the Property Tax Credit Fund and the County/Municipal Revenue Fund from the date of imposition of the tax through deposits made by June 30, 1992. For purposes of all revenue deposited and distributed after June 30, 1992, the provisions of Section 4-10-60 of the 1976 Code apply.
SECTION 20. Section 12-4-720(A)(1) of the 1976 Code, as added by Act 50 of 1991, is amended to read:
"(1) Except as otherwise provided in items (2) and (3) of this subsection, any tax-exempt property owner or property owner whose property may qualify for property exemption shall file an application for exemption with the commission between January first and April fifteenth thirtieth of the first year for which the exemption is claimed."
SECTION 21. Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:
"Section 12-43-345. For the purpose of assessing property of manufacturers as the same is used in Section 12-4-540(A)(1) and (10), the commission shall follow the classifications set out in Division B and Division D of the Standard Industrial Classification Manual, 1987 Edition. However, establishments publishing newspapers, books, and periodicals which do not have facilities for printing or which do not actually print their publications may not be classified as manufacturers, notwithstanding the provisions of Division D Major Group 27 relating to printing, publishing, and allied industries."
SECTION 22. Section 12-4-540(A) of the 1976 Code is amended by adding at the end:
"In the case of distribution facilities, the commission shall assess only those facilities containing more than one hundred thousand square feet or those which qualify for the exemption allowed pursuant to Section 12-37-220B(32)."
Amend further, as and if amended, by adding an appropriately numbered section to read:
SECTION 23. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1518. An employee who has attained the age of seventy years who is otherwise eligible to retire under a retirement system established by this title other than the system in which he currently participates may receive his full service retirement benefits from the other system."
SECTION 24. Section 9-1-1537 of the 1976 Code is repealed.
SECTION 25. This act takes effect upon approval by the Governor.