Current Status Introducing Body:Senate Bill Number:36 Primary Sponsor:Passailaigue Committee Number:06 Type of Legislation:GB Subject:Marijuana and Controlled Substance Tax Act of 1993 Residing Body:Senate Current Committee:Finance Computer Document Number:S.36 Introduced Date:19930112 Last History Body:Senate Last History Date:19930112 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Passailaigue Rose Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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36 Senate 19930112 Introduced, read first time, 06
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 25 IN CHAPTER 21 OF TITLE 12, RELATING TO STAMP AND BUSINESS LICENSE TAXES, SO AS TO ENACT "THE MARIJUANA AND CONTROLLED SUBSTANCE TAX ACT OF 1993", TO PROVIDE A PENALTY, AND TO ESTABLISH THE STATE CONTROLLED SUBSTANCES TAX ACCOUNT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 21 of the 1976 Code is amended by adding:
Section 12-21-3710. This article may be cited as The Marijuana and Controlled Substance Tax Act of 1993.
Section 12-21-3720. As used in this article:
(1) `Marijuana' means any marijuana, whether real or counterfeit, as defined in Section 44-53-110, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of the laws of this State.
(2) `Controlled substance' means a drug or substance, whether real or counterfeit, as defined in Section 44-53-110, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of the laws of this State. `Controlled substance' does not include marijuana.
(3) `Dealer' means a person who in violation of the laws of this State manufactures, produces, ships, transports, or imports into South Carolina or in any manner acquires or possesses more than forty-two and one-half grams of marijuana, or seven or more grams of a controlled substance, or ten or more dosage units of a controlled substance which is not sold by weight. A quantity of marijuana or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the dealer's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
(4) `Commission' means the South Carolina Tax Commission.
Section 12-21-3730. The commission shall administer this article. Payments required by this article must be made to the commission on the form provided by the commission. Dealers are not required to give their name, address, social security number, or other identifying information on the form. The commission shall collect all taxes under this article.
Section 12-21-3740. The commission may promulgate regulations necessary to enforce this article. The commission shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed.
Section 12-21-3750. No dealer may possess any marijuana or controlled substance upon which a tax is imposed unless the tax has been paid on the marijuana or other controlled substance as evidenced by a stamp or other official indicia.
Section 12-21-3760. Nothing in this article may provide immunity for a dealer from criminal prosecution pursuant to the laws of this State.
Section 12-21-3770. Nothing in this article requires persons lawfully in possession of marijuana or a controlled substance to pay the tax required under this article.
Section 12-21-3780. For the purpose of calculating the tax under Section 12-21-3790, a quantity of marijuana or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the dealer's possession. A quantity of pure controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
Section 12-21-3790. A tax is imposed on marijuana and controlled substances as defined in Section 12-21-3720 at the following rate:
(1) on each gram of marijuana, or each portion of a gram, three dollars fifty cents; and
(2) on each gram of controlled substance, or portion of a gram, two hundred dollars; or
(3) on each fifty dosage units of a controlled substance that is not sold by weight, or portion thereof, two thousand dollars.
Section 12-21-3800. (A) A dealer violating this article is subject to a penalty of one hundred percent of the tax in addition to the tax imposed by Section 12-21-3790. The penalty must be collected as part of the tax.
(B) In addition to the tax penalty imposed, a dealer distributing or possessing marijuana or controlled substances without affixing the appropriate stamps, labels, or other indicia is guilty of a misdemeanor and, upon conviction, must be imprisoned for not more than five years or fined not more than ten thousand dollars, or both.
Section 12-21-3810. Official stamps, labels, or other indicia to be affixed to all marijuana or controlled substances must be purchased from the commission. The purchaser shall pay one hundred percent of face value for each stamp, label, or other indicia at the time of the purchase.
Section 12-21-3820. (A) When a dealer purchases, acquires, transports, or imports into this State marijuana or controlled substances on which a tax is imposed by Section 12-21-3790, and if the indicia evidencing the payment of the tax have not already been affixed, the dealer shall have them permanently affixed on the marijuana or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once.
(B) Taxes imposed upon marijuana or controlled substances by this article are due and payable immediately upon acquisition or possession in this State by a dealer.
Section 12-21-3830. An assessment for a dealer not possessing valid stamps or other official indicia showing that the tax has been paid is considered a jeopardy assessment or collection, as provided in Article 3 of Chapter 53.
Section 12-21-3840. (A) Neither the commission nor a public employee may reveal facts contained in a report or return required by this article or any information obtained from a dealer, nor may any information contained in such a report or return or obtained from a dealer be used against the dealer in a criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this article from the dealer making the return.
(B) A person violating this section is guilty of a felony and, upon conviction, must be imprisoned for not more than five years or fined not more than ten thousand dollars, or both.
(C) This section does not prohibit the commission from publishing statistics that do not disclose the identity of dealers or the contents of particular returns or reports.
Section 12-21-3850. The commission shall credit the proceeds of the tax levied by this article to a special fund, which shall be separate and distinct from the general fund, to be called the State Controlled Substances Tax Account until the tax proceeds are unencumbered. Tax proceeds are unencumbered when the taxpayer no longer has a current legal right to challenge the assessment of the tax. The proceeds and all interest accruing on the special fund shall be utilized at the discretion of the chief justice of the Supreme Court for equipment and travel reimbursement expenses for members of the judiciary.
All surplus funds, including accrued interest, remaining in the special fund at the end of a fiscal year may be carried forward for each subsequent fiscal year following establishment of the State Controlled Substances Tax Account."
SECTION 2. This act takes effect July 1, 1993.