Current Status Introducing Body:
SenateBill Number: 1076Primary Sponsor: PattersonCommittee Number: 30Type of Legislation: GBSubject: Property tax credit when jobs createdResiding Body: HouseComputer Document Number: JIC/5208HC.94Introduced Date: 19940120Last History Body: HouseLast History Date: 19940301Last History Type: Introduced, read first time, referred to CommitteeScope of Legislation: StatewideAll Sponsors: Patterson WilsonType of Legislation: General Bill
Bill Body Date Action Description CMN Leg Involved ____ ______ ____________ ______________________________ ___ ____________ 1076 House 19940301 Introduced, read first time, 30 referred to Committee 1076 Senate 19940225 Read third time, sent to House 1076 Senate 19940224 Read second time, unanimous consent for third reading on Friday, February 25, 1994 1076 Senate 19940223 Committee Report: Favorable 06 1076 Senate 19940120 Introduced, read first time, 06 referred to CommitteeView additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
February 23, 1994
S. Printed 2/23/94--S.
Read the first time January 20, 1994.
To whom was referred a Bill (S. 1076), to amend Section 12-37-220, as amended, Code of Laws of South Carolina, 1976, relating to property tax exemptions, so as to allow the credit to be claimed when the taxpayer creates, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass:
JOHN DRUMMOND, for Committee.
This bill amends Section 12-37-220, as amended, relating to property tax exemptions, so as to allow the credit to be claimed when the taxpayer creates one hundred fifty or more jobs substantially equivalent to the current minimum requirement of seventy-five full-time jobs and to define "substantially equivalent".
This bill would have no current effect on local property tax revenue or general fund revenue. The long-term effect should be an increase in total property taxes and in general fund revenue. Increased collections in individual income and other miscellaneous taxes associated with the creation of new jobs will have a positive long-term impact on general fund revenues.
A. Crawford Clarkson, Jr.
S.C. Tax Commission
TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO ALLOW THE CREDIT TO BE CLAIMED WHEN THE TAXPAYER CREATES ONE HUNDRED FIFTY OR MORE JOBS SUBSTANTIALLY EQUIVALENT TO THE CURRENT MINIMUM REQUIREMENT OF SEVENTY-FIVE FULL-TIME JOBS AND TO DEFINE "SUBSTANTIALLY EQUIVALENT".
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-37-220B(32) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"(32) All new corporate headquarters, corporate office facilities, distribution facilities, and all additions to existing corporate headquarters, corporate office facilities, or distribution facilities located in South Carolina, established or constructed, or placed in service, after June 27, 1988, are exempt from nonschool county ad valorem taxes for a period of five years from the time of establishment, construction, or being placed in service if the cost of the new construction or additions is fifty thousand dollars or more and seventy-five or more new jobs which are full-time or one hundred fifty or more substantially equivalent jobs are created in South Carolina. For the purpose of this exemption, the term:
(1) `new job' means any job created by an employer in South Carolina at the time a new facility or an expansion is initially staffed, but does not include a job created when an employee is shifted from an existing South Carolina location to work in a new or expanded facility;
(2) (a) `full-time' means a job requiring a minimum of thirty-five hours of an employee's time a week for the entire normal year of company operations or a job requiring a minimum of thirty-five hours of an employee's time for a week for a year in which the employee was initially hired for or transferred to the South Carolina corporate headquarters, corporate office facility, or distribution facility and worked at a rented facility pending construction of a corporate headquarters, corporate office facility, or distribution facility;
(b) `substantially equivalent' means a job requiring a minimum of twenty hours of an employee's time a week for the entire normal year of company's operations or a job requiring a minimum of twenty hours of an employee's time for a week for a year in which the employee was initially hired for or transferred to the South Carolina corporate headquarters, corporate office facility, or distribution facility and worked at a rented facility pending construction of a corporate headquarters, corporate office facility, or distribution facility;
(3) `corporate headquarters' means the location where corporate staff members or employees are domiciled and employed, and where the majority of the company's financial, personnel, legal, planning, or other business functions are handled either on a regional or national basis and must be the sole such corporate headquarters within the region or nation;
(4) `staff employee' or `staff member' means executive, administrative, or professional worker. At least eighty percent of an executive employee's business functions must involve the management of the enterprise and directing the work of at least two employees. An executive employee has the authority to hire and fire or has the authority to make recommendations related to hiring, firing, advancement, and promotion decisions, and an executive employee must customarily exercise discretionary powers. An administrative employee is an employee who is not involved in manual work and whose work is directly related to management policies or general business operations. An administrative employee must customarily exercise discretion and independent judgment. A professional employee is an employee whose primary duty is work requiring knowledge of an advanced type in a field of science or learning. This knowledge is characterized by a prolonged course of specialized study. The work must be original and creative in nature, and the work cannot be standardized over a specific period of time. The work must require consistent exercise of discretion;
(5) `region' or `regional' means a geographic area comprised of either:
(a) at least five states, including South Carolina, or
(b) two or more states, including South Carolina, if the entire business operations of the corporation are performed within fewer than five states;
(6) `corporate office facility' means the location where corporate managerial, professional, technical, and administrative personnel are domiciled and employed, and where corporate financial, personnel, legal, technical, support services, and other business functions are handled. Support services include, but are not limited to, claims processing, data entry, word processing, sales order processing, and telemarketing;
(7) `distribution facility' means an establishment where shipments of tangible personal property are processed for delivery to customers, but the term `distribution facility' does not include an establishment which operates as a location where retail sales of tangible personal property are made to customers. A distribution facility includes establishments which process customer sales orders by mail, telephone, or electronic means, if the establishment also processes shipments of tangible personal property to customers. The terms `retail sale', and `tangible personal property', for purposes of this definition, have those meanings as contained in Chapter 36 of Title 12.
Certification of the required investment and the number of new jobs which are full-time or substantially equivalent and which are created must be provided by the South Carolina Department of Revenue and Taxation to the appropriate local tax officials."
SECTION 2. This act takes effect upon approval by the Governor.