Current Status Introducing Body:Senate Bill Number:328 Primary Sponsor:Waddell Committee Number:30 Type of Legislation:GB Subject:Income tax, detailed provisions Residing Body:House Current Committee:Ways and Means Companion Bill Number:3270 Computer Document Number:328 Introduced Date:Jan 08, 1991 Date of Last Amendment:Mar 05, 1991 Last History Body:House Last History Date:Mar 07, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Waddell Leatherman Lourie Hayes Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
328 House Mar 07, 1991 Introduced, read first time, 30
referred to Committee
328 Senate Mar 06, 1991 Read third time, sent to House
328 Senate Mar 05, 1991 Amended, read second time
328 Senate Feb 13, 1991 Committee Report: Favorable 06
with amendment
328 Senate Jan 08, 1991 Introduced and read first 06
time, referred to Committee
328 Senate Dec 03, 1990 Prefiled, referred to 06
Committee
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COMMITTEE AMENDMENT AMENDED AND ADOPTED
March 5, 1991
S. 328
Introduced by SENATORS Waddell, Leatherman, Lourie and Hayes
S. Printed 3/5/91--S.
Read the first time January 8, 1991.
TO AMEND SECTION 12-7-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO DELETE LANGUAGE MAKING THE FISCAL YEAR A CALENDAR YEAR UNLESS ANOTHER YEAR IS ESTABLISHED; TO AMEND SECTION 12-9-390, AS AMENDED, RELATING TO INCOME TAX WITHHOLDING, SO AS TO DELETE THE PENALTY PROVISION; TO AMEND THE 1976 CODE BY ADDING SECTION 12-19-165 SO AS TO PROVIDE FOR THE PRORATION OF THE CORPORATE LICENSE FEE FOR RETURNS FOR FEWER THAN TWELVE MONTHS; TO AMEND SECTION 12-54-40, RELATING TO TAX CRIMES AND PENALTIES, SO AS TO PLACE THE PENALTY FOR FAILURE TO WITHHOLD PROPERLY IN THE PROVISION OF THE 1976 CODE DEALING WITH PENALTIES; TO AMEND SECTION 12-54-140, RELATING TO THE REQUIREMENT THAT CORPORATE TAXPAYERS NOTIFY THE TAX COMMISSION OF CHANGES IN INCOME AS REPORTED TO THE INTERNAL REVENUE SERVICE, SO AS TO EXTEND THE REQUIREMENT TO ALL TAXPAYERS; TO AMEND SECTION 33-14-220, RELATING TO THE REQUIREMENTS FOR REINSTATEMENT OF CORPORATE CHARTERS, SO AS TO PROVIDE THAT THE TAX PENALTIES AND INTEREST MUST BE PAID BEFORE REINSTATEMENT; AND TO AMEND THE 1976 CODE BY ADDING SECTION 33-15-330 SO AS TO PROVIDE A PROCEDURE FOR THE REINSTATEMENT OF CERTIFICATES OF AUTHORITY FOR FOREIGN CORPORATIONS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-7-20(5) of the 1976 Code is amended to read:
"(5) The words 'income year' mean the calendar year or the fiscal year upon the basis of which the net income is computed under this chapter; if no fiscal year has been established they mean the calendar year."
SECTION 2. Section 12-9-390(A) of the 1976 Code, as last amended by Section 3C, Part II, Act 612 of 1990, is further amended to read:
"(A) Every withholding agent required to make a return or deposit and pay taxes to the Internal Revenue Service under the Internal Revenue Code of 1986, as amended through December 31, 1989, and applicable regulations effective as of December 31, 1989, shall at the same time, shall make a return or deposit and pay to the commission any taxes deducted and withheld under the provisions of Sections 12-9-310 to 12-9-370.
All withheld funds must be deposited at financial institutions selected by the State Treasurer if the deposit is also required under the Internal Revenue Code of 1986, as amended through December 31, 1989, and applicable regulations as of December 31, 1989.
A failure to deposit, without a showing of reasonable cause, subjects the withholding agent to a penalty of not less than ten dollars nor more than one thousand dollars, to be assessed and collected in the same manner and with the same effect as taxes provided by Chapter 7 of this title.
Nonresident withholding agents may elect to remit taxes withheld under Sections 12-9-310 through 12-9-370 by making a return to the commission as follows:
(1) If the accumulated amount withheld in a calendar quarter is less than five hundred dollars, the return must be filed and the tax remitted to the commission as provided to subsection (B) of this section.
(2) If the accumulated amount withheld is five hundred dollars or more by the end of a month, the return must be filed and the tax remitted to the commission on or before the fifteenth day of the following month.
Nonresident means any an individual domiciled outside South Carolina and any other entity whose principal place of business is outside South Carolina."
SECTION 3. Chapter 19, Title 12 of the 1976 Code is amended by adding:
"Section 12-19-165. When a taxpayer's taxable year is changed and a return of fewer than twelve months results, the license fee due and payable under this chapter must be a prorated annual license fee. The prorated license fee is computed by dividing the annual license fee by twelve and multiplying the results by the number of months in the short period. The proration provided by this section applies only to short periods due to a change in accounting period and does not apply to short periods due to initial or final returns. The prorated fee cannot be less than the minimum fee imposed in Section 12-19-70."
SECTION 4. Section 12-54-40(b) of the 1976 Code, as last amended by Act 660 of 1988, is further amended by adding:
"(7) A failure to deposit or pay any taxes deducted and withheld pursuant to Sections 12-9-310 to 12-9-370 subjects the withholding agent to a penalty of not less than ten dollars nor more than one thousand dollars. The penalty imposed by this item also applies to failure to comply with the provisions of Section 12-54-250."
SECTION 5. Section 12-54-140 of the 1976 Code is amended to read:
"Section 12-54-140. Every corporation taxpayer shall notify the Commission in writing of all changes in income as reported to the Internal Revenue Service when the income is changed by the Internal Revenue Service. Notification to the commission must be made within sixty days after a final determination is received from the Internal Revenue Service. Failure to notify the commission within the required time tolls the running of the statute of limitations on the assessment and collection of taxes for the taxable year. Notification of adjustments made by the Internal Revenue Service must be made under separate cover from any return filed or due to be filed with the commission. The commission shall, upon receipt of the notification, adjust the returns of the corporation taxpayer and give notice of assessment to the corporation taxpayer within ninety days from the date of receipt of notification. The limitations of time provided for in Section Sections 12-7-2220 and 12-54-80 relating to the assessment of additional tax and Section 12-47-440 relating to the application for refund do not apply to any underpayment or overpayment of South Carolina income tax resulting from changes in income made by the Internal Revenue Service. Failure to comply with the provisions of this section subjects the taxpayer to all taxes, penalties, and interest applicable under this chapter and Chapter 7 of this title. The commission shall include a statement in the income tax instructions to inform the taxpayer of the requirement to notify the commission of income changes made by the Internal Revenue Service and that failure to notify results in tolling the statute of limitations on the assessment and collection of taxes for the taxable year."
SECTION 6. Section 33-14-220(a)(4) of the 1976 Code is amended to read:
"(4) contain a certificate from the South Carolina Tax Commission reciting that all taxes, penalties, and interest owed by the corporation have been paid."
SECTION 7. Article 3, Chapter 15, Title 33 of the 1976 Code is amended by adding:
"Section 33-15-330. (A) A foreign corporation whose certificate of authority has been revoked administratively under Section 33-15-310 may apply to the Secretary of State for reinstatement within two years after the effective date of revocation. The application must:
(1) recite the name of the foreign corporation and the effective date of its administrative revocation;
(2) state that the grounds for revocation either did not exist or have been eliminated;
(3) state that the foreign corporation's name satisfies the requirements of Section 33-4-101;
(4) contain a certificate from the South Carolina Tax Commission stating that all taxes, penalties, and interest owed by the corporation, whether assessed or not, have been paid.
(B) If the Secretary of State determines that the application contains the information required by subsection (A) and that the information is correct, he shall cancel the certificate of revocation and prepare a certificate of reinstatement that recites his determination and the effective date of reinstatement, file the original of the certificate, and send a copy to the foreign corporation.
(C) When the reinstatement is effective, it relates back to and takes effect as of the effective date of the administrative revocation and the foreign corporation may resume carrying on its business as if the administrative revocation had never occurred."
SECTION 8. This act takes effect upon approval by the Governor.