Current Status Introducing Body:House Bill Number:3272 Ratification Number:245 Act Number:168 Primary Sponsor:Kirsh Type of Legislation:GB Subject:Sales and accommodations tax, misallocations of Companion Bill Number:411 Date Bill Passed both Bodies:Jun 06, 1991 Computer Document Number:JIC/5222.HC Governor's Action:S Date of Governor's Action:Jun 28, 1991 Introduced Date:Jan 22, 1991 Date of Last Amendment:Jun 06, 1991 Last History Body:------ Last History Date:Jun 28, 1991 Last History Type:Act No. 168 Scope of Legislation:Statewide All Sponsors:Kirsh McTeer D. Elliott Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
3272 ------ Jun 28, 1991 Act No. 168
3272 ------ Jun 28, 1991 Signed by Governor
3272 ------ Jun 06, 1991 Ratified R 245
3272 Senate Jun 06, 1991 Concurred in House amendment,
enrolled for ratification
3272 House Jun 06, 1991 Senate amendments amended,
returned to Senate
3272 Senate Jun 05, 1991 Read third time, returned
with amendment
3272 Senate May 14, 1991 Amended, read second time,
ordered to third reading with
notice of general amendments
3272 Senate Apr 25, 1991 Committee Report: Favorable 06
with amendment
3272 Senate Apr 03, 1991 Introduced, read first time, 06
referred to Committee
3272 House Apr 02, 1991 Read third time, sent to
Senate
3272 House Mar 28, 1991 Read second time
3272 House Mar 21, 1991 Debate adjourned until
Wednesday, March 27
3272 House Mar 20, 1991 Reconsidered vote whereby
read second time
3272 House Mar 20, 1991 Read second time
3272 House Mar 19, 1991 Committee Report: Favorable 30
3272 House Jan 22, 1991 Introduced, read first time, 30
referred to Committee
View additional legislative information at the LPITS web site.
(A168, R245, H3272)
AN ACT TO AMEND SECTIONS 4-10-90 AND 6-4-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ESTIMATING REVENUES AND CORRECTING ALLOCATIONS FOR PURPOSES OF THE LOCAL OPTION SALES TAX AND THE ACCOMMODATIONS TAX, SO AS TO PROVIDE THAT MISALLOCATIONS MAY BE CORRECTED ONLY BY ADJUSTING SUBSEQUENT ALLOCATIONS IN THE SAME FISCAL YEAR AS THE MISALLOCATION; TO AMEND SECTION 12-3-240, RELATING TO THE TAX COMMISSION'S AUTHORITY TO FURNISH INCOME TAX DATA TO MUNICIPALITIES WHICH LEVY A GROSS RECEIPTS TAX, SO AS TO ALLOW THE COMMISSION TO PROVIDE THE DATA TO COUNTIES; TO AMEND THE 1976 CODE BY ADDING SECTION 12-3-270 SO AS TO PROVIDE THAT FUNDS RECEIVED FROM COLLECTING WARRANTS FOR DISTRAINT MAY NOT SUPPLEMENT TAX COMMISSION APPROPRIATIONS AND MUST BE DEPOSITED IN THE GENERAL FUND OF THE STATE; TO AMEND SECTIONS 12-54-50 AND 12-54-120, RELATING TO FEES ON BAD CHECKS GIVEN TO THE TAX COMMISSION AND TAX LIENS, SO AS TO INCREASE THE FEE FROM TEN TO FIFTEEN DOLLARS AND PROVIDE THAT A TAX LIEN OPERATES IN THE SAME MANNER AS A JUDGMENT; TO AMEND SECTIONS 12-54-420 AND 12-54-460, RELATING TO THE SETOFF DEBT COLLECTION ACT, SO AS TO PROVIDE THAT DEBT SETOFFS MAY BE MADE FOR PRIVATE INSTITUTIONS OF HIGHER LEARNING ONLY FOR STATE-AUTHORIZED STUDENT LOANS AND TO PROVIDE A NOTICE PROCEDURE BEFORE A SETOFF MAY BE MADE; AND TO AMEND THE 1976 CODE BY ADDING SECTION 12-54-495 SO AS TO PROVIDE THAT CLAIMANT AGENCIES UNDER THE SETOFF DEBT COLLECTION ACT MUST INDEMNIFY THE TAX COMMISSION FOR LIABILITIES ARISING UNDER THE ACT; TO AMEND ACT 612 OF 1990, THE GENERAL APPROPRIATIONS ACT FOR 1990-91, RELATING TO THE AUTHORITY OF THE TAX COMMISSION TO ENFORCE THE USE TAX ON DIRECT MARKETING COMPANIES, SO AS TO EXTEND THE COMMISSION'S AUTHORITY TO JULY 1, 1996; TO AMEND SECTION 12-21-2420, RELATING TO THE ADMISSIONS TAX, SO AS TO EXEMPT ADMISSIONS TO CERTAIN HEALTH CLUBS; TO AMEND SECTIONS 4-10-40, 4-10-50, AND 4-10-90, RELATING TO THE LOCAL OPTION SALES TAX, SO AS TO CLARIFY THE APPLICATION OF THE TAX CREDIT TO PROPERTY TAXES ON MOTOR VEHICLES, PROVIDE THAT DISTRIBUTIONS FROM THE COUNTY/MUNICIPAL REVENUE FUND MAY BE USED TO PROVIDE ADDITIONAL TAX CREDITS, AND REVISE IMPOSITION DATES; TO AMEND THE 1976 CODE BY ADDING SECTIONS 12-27-285, 12-29-125, AND 12-29-126 SO AS TO REQUIRE SURETY BONDS, CASH BONDS, OR FINANCIAL STATEMENTS TO GUARANTEE THE PAYMENT OF GASOLINE AND SPECIAL FUELS TAXES; TO AMEND SECTIONS 12-37-360 AND 12-29-40, RELATING TO COLLECTION AND PAYMENT OF GASOLINE AND SPECIAL FUELS TAXES, SO AS TO DELETE REFERENCES TO THE SHERIFF SERVING WARRANTS AND TO PROVIDE THAT THE TAXES ARE LIENS, BUT NOT FIRST LIENS, ON THE PROPERTY OF THE TAXPAYER, AND TO PROVIDE FOR THE ABATEMENT ALLOWED MANUFACTURING PROPERTY FOR CERTAIN TEXTILE MANUFACTURING PROPERTY.
Be it enacted by the General Assembly of the State of South Carolina:
Misallocations corrected
SECTION 1. Section 4-10-90(C) of the 1976 Code, as added by Act 317 of 1990, is amended to read:
"(C) The Tax Commission shall furnish data to the State Treasurer and to the governing bodies of the counties and municipalities receiving revenues for the purpose of calculating distributions and estimating revenues. The information which may be supplied to counties and municipalities includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information by taxpayer received by appropriate county or municipal officials is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240. The State Treasurer may correct misallocations from the Property Tax Credit Fund and County/Municipal Revenue Fund by adjusting subsequent allocations, but these adjustments may be made only in allocations made in the same fiscal year as the misallocation."
Misallocations corrected
SECTION 2. Section 6-4-20 of the 1976 Code, as added by Section 74, Part II, Act 612 of 1990, is amended by adding:
"(5) The State Treasurer may correct misallocations to counties and municipalities from accommodations tax revenues by adjusting subsequent allocations, but these adjustments may be made only in allocations made in the same fiscal year as the misallocation."
Gross receipts records
SECTION 3. Section 12-3-240 of the 1976 Code is amended to read:
"Section 12-3-240. The Tax Commission shall make available to the authorities of a municipality or county in this State levying a tax based on gross receipts any records indicating the amount of gross receipts reported to the commission but these tax records may be made available only if the commission first has satisfied itself that the gross receipts reported to the municipality or county were less than the gross receipts as indicated by the records of the commission."
Warrant funds
SECTION 4. Chapter 3, Title 12 of the 1976 Code is amended by adding:
"Section 12-3-270. Funds received from the collection of warrants for distraint may not be expended to supplement appropriations to the Tax Commission. Any unexpended balance in the `Warrant Revolving Fund' less an amount necessary for adequate cash flow must be deposited to the credit of the general fund of the State."
Penalty
SECTION 5. Section 12-54-50 of the 1976 Code is amended to read:
"Section 12-54-50. When the bank on which an uncertified check tendered to the commission in payment of an obligation due to the commission refuses payment of the check on account of insufficient funds of the drawer in the bank and the check is returned to the commission, a penalty of fifteen dollars must be imposed. This section applies to all taxes or license fees levied or assessed by the commission."
Tax liens
SECTION 6. Section 12-54-120 of the 1976 Code is amended to read:
"Section 12-54-120. If a tax, additional tax, interest, or penalty imposed by the commission remains due and unpaid for ten days, the commission may issue a warrant for distraint under its hand and official seal, directed to an authorized agent of the commission commanding him to levy on and sell the real and personal property of the person for the payment of the amount due, with added penalties, interest, and costs of executing the warrant, and to return the warrant to the commission and pay to it the money collected, by a time specified in the warrant not more than sixty days after receipt of the warrant. Immediately upon receipt of the warrant, the agent shall file a copy of the warrant with the clerk of court or, where appropriate, the register of mesne conveyances of a county in this State in which property of the taxpayer named in the warrant may be or may have been located, and the clerk of court shall enter in the judgment docket, in the column for judgment debtors, the name of the taxpayer mentioned in the warrant and in appropriate columns the amount of tax, or portion of the tax, and the penalties for which the warrant was issued, and the date when the copy was filed and shall index the warrant on the index of judgments. When filed, the amount of the warrant docketed becomes a lien on the title to and interest in real property or chattels real or any property of the taxpayer against whom it is issued in the same manner as a judgment duly docketed in the clerk's office. The lien created extends to bank deposits and all other choses in action on property incapable of manual levy or delivery."
Claimant agency
SECTION 7. Section 12-54-420(1) of the 1976 Code, as amended by Act 668 of 1988, is further amended to read:
"(1) `Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, and the Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapter 111, 113, or 115 of Title 59."
Debt setoff
SECTION 8. Section 12-54-460(A) of the 1976 Code, as added by Act 474 of 1988, is amended to read:
"(A) A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the commission in writing and supply information the commission determines necessary to identify the debtor whose refund is sought to be set off. A request for setoff may be made only after the claimant agency has notified the debtor of its intention to cause the debtor's refund to be set off. This notice must be given in person, left at the dwelling or usual place of business of the debtor, or sent by certified or registered mail to the debtor's last known address no less than thirty days before the claimant agency's request to the commission. The notice shall include a statement which sets forth administrative appeal procedures available to the debtor and alternatives available to the debtor which could prevent setoff. The claimant agency promptly shall notify the debtor when the liability out of which the setoff arises is satisfied. Notification to the commission and the furnishing of identifying information must occur on or before a date specified by the commission in the year preceding the calendar year during which the refund would be paid. Additionally, subject to the notification deadline specified above, the notification is effective only to initiate setoff for claims against refunds that would be made in the calendar year subsequent to the year in which notification is made to the commission."
Indemnify commission
SECTION 9. Article 3, Chapter 54, Title 12 of the 1976 Code is amended by adding:
"Section 12-54-495. Claimant agencies shall indemnify the commission against any injuries, actions, liabilities, or proceedings arising from performance under the provisions of this article."
Authority extended
SECTION 10. Section 26D, Part II, Act 612 of 1990 is amended to read:
"D. The authority granted the South Carolina Tax Commission pursuant to this section expires July 1, 1996."
Admissions tax exemption
SECTION 11. Section 12-21-2420 of the 1976 Code is amended by adding an appropriately numbered item to read:
"( ) On admissions to a physical fitness center subject to the provisions of Chapter 79 of Title 44, the Physical Fitness Services Act, that provides only the following activities or facilities:
(a) aerobics or calisthenics;
(b) weightlifting equipment;
(c) exercise equipment;
(d) running tracks;
(e) racquetball;
(f) swimming pools for aerobics and lap swimming; and
(g) other similar items approved by the commission.
The entire admission charge of a physical fitness center which provides any other activity or facilities is subject to the tax imposed by this article."
Motor vehicle tax credit
SECTION 12. Section 4-10-40 of the 1976 Code, as added by Act 317 of 1990, is amended by adding:
"(E) For motor vehicles subject to the payment of property taxes pursuant to Article 21, Chapter 37 of Title 12, the credit provided under this section applies against the tax liability for motor vehicle tax years beginning after December of the year in which the credit is calculated."
Local option sales tax
SECTION 13. Section 4-10-90(A) of the 1976 Code, as added by Act 317 of 1990, is amended to read:
"(A) The Tax Commission shall administer and collect the local sales and use tax in the manner that sales and use taxes are administered and collected pursuant to Chapter 35 of Title 12. The commission may prescribe forms and promulgate regulations in conformity with this chapter, including tables prescribing the amount to be added to the sales price. The county shall notify the Tax Commission and the State Treasurer through delivery of a certified copy of a resolution adopted by the county by December thirty-first following the referendum for the tax to be imposed May first. Failure to deliver the resolution by December thirty-first causes a delay of the imposition until the first day of May of the next calendar year. Notwithstanding the provisions of this subsection, the local sales and use tax must not be imposed before July first following the first referendum held pursuant to Section 4-10-30."
Additional credit
SECTION 14. Section 4-10-50 of the 1976 Code, as added by Act 317 of 1990 is amended by adding:
"(C) Revenue distributed to a county or municipality under this section may be used to provide an additional property tax credit in the manner provided in Section 4-10-40(B)."
Interest exempt
SECTION 15. Section 12-13-30 of the 1976 Code, as amended by Act 170 of 1987, is further amended to read:
"Section 12-13-30. Every association located or doing business within this State shall pay an income tax measured by its net income from all sources, except for income from municipal, state, or federal bonds or securities exempted by law from the tax, including interest earned on deposits at the Federal Home Loan Bank of Atlanta, or its successors, for those savings and loan associations which meet the qualified thrift lender test set forth in the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (P.L. 101-73), as amended. The tax is six percent of the net income."
Bond, liens
SECTION 16. (A) Article 3, Chapter 27, Title 12 of the 1976 Code is amended by adding:
"Section 12-27-285. At the time of filing a license application under Section 12-27-280, every oil company shall file a bond executed by a surety company authorized to do business in this State, or file a cash bond with the commission, in an amount authorized and approved by the commission. No oil company may engage in business in this State until the commission has approved the bond and issued the license required under Section 12-27-280."
(B) Article 3, Chapter 27, Title 12 of the 1976 Code is amended by adding:
"Section 12-29-125. At the time of filing a license application under Section 12-29-120, every supplier shall file a bond executed by a surety company authorized to do business in this State, or file a cash bond with the commission, in an amount authorized and approved by the commission. No supplier may engage in business in this State until the commission has approved the bond and issued the license required under Section 12-29-120.
Section 12-29-126. A supplier may furnish the commission with a statement of assets and liabilities and, if in the judgment of the commission the property owned by the supplier is sufficient to protect this State in the payment of all taxes due under this chapter, the bond provided for under this chapter is not required."
(C) Section 12-27-360 of the 1976 Code is amended to read:
"Section 12-27-360. The taxes and any penalties and interest provided in this article are a debt payable to the State by the persons against whom they are charged and are a lien on all property of such persons."
(D) Section 12-29-40 of the 1976 Code is amended by adding at the end:
"However, the taxes provided in this chapter and any penalties and interest on the taxes constitute a debt payable to the State by the person against whom they are charged and constitute a lien, but not a first lien, against all the property of the person."
Tax abatement
SECTION 17. (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 includes new capital.
(B) The five-year abatement applies to tax years 1991, 1992, and 1993. However, an acquiring corporation to which the abatement applies must not be assessed taxes on personal property at a level greater than eighty percent of the assessment which otherwise would have been due for tax years 1989 and 1990.
(C) Upon approval by the Governor this section is effective with respect to acquisitions after April 30, 1988."
Time effective
SECTION 18. This act takes effect upon approval by the Governor.
Approved the 28th day of June, 1991.