Current Status Introducing Body:House Bill Number:3913 Primary Sponsor:Kirsh Committee Number:06 Type of Legislation:GB Subject:Sales and use tax Residing Body:Senate Current Committee:Finance Computer Document Number:JIC/5738HC.93 Introduced Date:19930413 Last History Body:Senate Last History Date:19930525 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Kirsh Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
____ ______ ____________ ______________________________ ___ ____________
3913 Senate 19930525 Introduced, read first time, 06
referred to Committee
3913 House 19930520 Read third time, sent to
Senate
3913 House 19930519 Read second time
3913 House 19930505 Committee Report: Favorable 30
3913 House 19930413 Introduced, read first time, 30
referred to Committee
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COMMITTEE REPORT
May 5, 1993
H. 3913
S. Printed 5/5/93--H.
Read the first time April 13, 1993.
To whom was referred a Bill (H. 3913), to amend Section 12-36-90, Code of Laws of South Carolina, 1976, relating to the definition of gross proceeds of sales for purposes of the sales and use tax, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass:
WILLIAM D. BOAN, for Committee.
This Bill amends Section 12-36-90, relating to definitions of gross proceeds of sales for purposes of the sales and use tax, so as to provide that gross proceeds do not include that portion of a charge subject to and use tax attributable to the cost set by statute for a governmental license or permit.
This Bill would have no effect on state or local revenue.
The proposal codifies the current Tax Commission position in regards to the taxation of licenses of governmental entities sold as part of a service rendered. The best example are fuel permits sold by the state by vendors to allow trucks to travel the roads of South Carolina. A trucking entity contracts with a vendor, who delivers through electronic means or at check stations, temporary licenses. The vendors charge a set fee which includes the cost of the permit. The Commission feels from an equity standpoint that governmental licenses and permits sold should not be a portion of the measure of the tax for sales and use tax purposes.
Approved By:
James M. Waddell, Jr.
S.C. Tax Commission
TO AMEND SECTION 12-36-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF GROSS PROCEEDS OF SALES FOR PURPOSES OF THE SALES AND USE TAX, SO AS TO PROVIDE THAT GROSS PROCEEDS DO NOT INCLUDE THAT PORTION OF A CHARGE SUBJECT TO AND USE TAX ATTRIBUTABLE TO THE COST SET BY STATUTE FOR A GOVERNMENTAL LICENSE OR PERMIT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-90(2) of the 1976 Code, as added by Act 612 of 1990, is amended by adding at the end:
"(e) that portion of a charge taxed under Section 12-36-910(B)(3) or 12-36-1310(B)(3) attributable to the cost set by statute for a governmental license or permit."
SECTION 2. This act takes effect upon approval by the Governor.