Current Status Bill Number:4796 Ratification Number:539 Act Number:461 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960321 Primary Sponsor:Fulmer All Sponsors:Fulmer, Koon, Harvin, Carnell, Robinson, Stuart, Seithel, Shissias, Limehouse, Hallman, Harrell and Cotty Drafted Document Number:pt\2360cm.96 Companion Bill Number:1250 Date Bill Passed both Bodies:19960613 Date of Last Amendment:19960613 Governor's Action:S Date of Governor's Action:19960703 Subject:Motor vehicle carriers, property tax assessments
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19960715 Act No. A461
------ 19960703 Signed by Governor
------ 19960626 Ratified R539
Senate 19960613 Ordered enrolled for ratification
Senate 19960613 Free Conference Committee Report 89 SFCC
adopted
Senate 19960613 Free Conference Powers granted, 89 SFCC Moore
appointed Senators to Committee Rankin
of Free Conference Alexander
House 19960613 Free Conference Committee Report 99 HFCC
adopted
House 19960613 Free Conference Powers granted, 99 HFCC Fulmer
appointed Reps. to Committee of Harvin
Free Conference Koon
Senate 19960612 Conference powers granted, 88 SCC Moore
appointed Senators to Committee Rankin
of Conference Alexander
House 19960530 Conference powers granted, 98 HCC Harvin
appointed Reps. to Committee of Fulmer
Conference Koon
House 19960530 Insists upon amendment
Senate 19960530 Non-concurrence in House amendment
House 19960529 Senate amendments amended,
returned to Senate with amendment
Senate 19960523 Read third time, returned to House
with amendment
Senate 19960515 Reconsidered vote whereby
read third time and returned
to House with amendment
Senate 19960515 Read third time, returned to House
with amendment
Senate 19960514 Amended, read second time,
ordered to third reading
with notice of general amendments
Senate 19960509 Recalled from Committee, 06 SF
placed on the Calendar
Senate 19960411 Introduced, read first time, 06 SF
referred to Committee
House 19960410 Read third time, sent to Senate
House 19960409 Amended, read second time
House 19960403 Debate adjourned until
Tuesday, 19960409
House 19960328 Committee report: Favorable 30 HWM
House 19960321 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
(A461, R539, H4796)
AN ACT TO AMEND CHAPTER 37, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX, BY ADDING ARTICLE 23 SO AS TO PROVIDE FOR THE PROPERTY TAXATION OF MOTOR CARRIER VEHICLES; TO AMEND SECTION 12-28-310, RELATING TO THE TAX ON GASOLINE AND DIESEL FUEL, SO AS TO PROVIDE THAT THE LICENSE TAX IMPOSED BY THIS SECTION IS IN LIEU OF ALL SALES, USE, OR OTHER EXCISE TAX WHICH MAY OTHERWISE BE IMPOSED BY ANY MUNICIPALITY, COUNTY, OR OTHER LOCAL POLITICAL SUBDIVISION; TO AMEND SECTION 12-28-720, RELATING TO THE TAX ON MOTOR FUELS AND PERFECTION OF THE EXEMPTION FOR IMPORTS, SO AS TO PROVIDE THE EXEMPTION FOR EXPORTS, RATHER THAN IMPORTS; TO AMEND SECTION 12-28-740, RELATING TO THE TAX ON MOTOR FUELS AND PERFECTION OF THE EXEMPTION FOR THE FEDERAL GOVERNMENT AND STATE-OWNED BUSES AND VEHICLES USED IN AN EDUCATIONAL PROGRAM, SO AS TO CHANGE A STATUTORY REFERENCE REGARDING A VENDOR'S MAKING APPLICATION FOR A PERMIT PROVIDED FOR BY THIS SECTION; TO AMEND SECTION 12-28-795, RELATING TO THE TAX ON MOTOR FUELS AND INTEREST ON REFUND CLAIMS NOT ISSUED WITHIN THIRTY DAYS OF FILING, SO AS TO DELETE THE EXISTING PROVISIONS OF THIS SECTION AND PROVIDE THAT INTEREST ON A CLAIM FOR A REFUND MUST BE PAID AT THE RATE AND IN THE MANNER PROVIDED FOR IN SECTION 12-54-25; TO AMEND SECTION 12-28-905, RELATING TO THE TIME FOR PAYMENT OF THE MOTOR FUEL TAX ON GALLONS OF MOTOR FUEL IMPORTED FROM ANOTHER STATE, SO AS TO CHANGE CERTAIN STATUTORY REFERENCES WITHIN THIS SECTION; TO AMEND SECTION 12-28-915, RELATING TO THE TAX ON MOTOR FUELS, THE TAX COLLECTED AND REMITTED BY THE SUPPLIER, DUE DATE, AND LATE TAXES, SO AS TO PROVIDE THAT A SUPPLIER SHALL "GIVE NOTIFICATION OF", RATHER THAN "REMIT", LATE TAXES REMITTED TO THE SUPPLIER BY AN ELIGIBLE PURCHASER; TO AMEND SECTION 12-28-925, RELATING TO THE COLLECTION OF MOTOR FUEL TAX FROM A PURCHASER AND THE ELECTION TO DEFER THE TAX PAYMENT, SO AS TO DELETE CERTAIN PROVISIONS, AND TO PROVIDE THAT FAILURE OF A SUPPLIER OR BONDED IMPORTER TO COMPLY WITH THE REQUIREMENTS OF THIS SECTION MAY RESULT IN SUSPENSION OR REVOCATION OF LICENSE; TO AMEND SECTION 12-28-935, RELATING TO RECISION OF A PURCHASER'S ELIGIBILITY AND ELECTION TO DEFER PAYMENT OF THE TAX ON MOTOR FUELS, SO AS TO CHANGE A STATUTORY REFERENCE WITHIN THE CODE SECTION; TO AMEND SECTION 12-28-940, RELATING TO COMPUTING THE AMOUNT OF THE MOTOR FUEL TAX DUE, SO AS TO CHANGE A STATUTORY REFERENCE WITHIN THIS SECTION, AND TO SUBSTITUTE "CREDIT" FOR "DEDUCTION" IN ONE INSTANCE; TO AMEND SECTION 12-28-970, RELATING TO THE IMPOSITION OF A BACKUP TAX EQUAL TO THE TAX IMPOSED BY SECTION 12-28-310, SO AS TO PROVIDE FOR AN EXEMPTION FROM THE BACKUP TAX UPON THE DELIVERY IN THIS STATE INTO THE FUEL SUPPLY TANK OF A HIGHWAY VEHICLE OF "ALTERNATIVE FUELS"; TO AMEND SECTION 12-28-1130, RELATING TO THE TAX ON MOTOR FUELS AND THE TANK WAGON OPERATOR-IMPORTER LICENSE AND FEE, SO AS TO PROVIDE THAT "OPERATORS OF TANK WAGONS DELIVERING PRODUCTS", RATHER THAN "OPERATORS OF TANK WAGON DELIVERY PRODUCT", INTO THIS STATE MORE THAN TWENTY-FIVE MILES FROM THE BORDER SHALL APPLY FOR AN IMPORTER'S LICENSE UNDER SECTION 12-28-1125; TO AMEND SECTION 12-28-1135, RELATING TO THE FUEL VENDOR LICENSE AND FEE, SO AS TO, AMONG OTHER THINGS, SUBSTITUTE "TRANSPORTER" FOR "CARRIER" IN ONE INSTANCE AND CHANGE A STATUTORY REFERENCE; TO AMEND THE 1976 CODE BY ADDING SECTION 12-28-1139 SO AS TO REQUIRE EACH PERSON LIABLE FOR THE TAX IMPOSED BY SECTIONS 12-28-970 AND 12-28-990(C) WHO IS NOT LICENSED UNDER SECTIONS 12-28-1100 THROUGH 12-28-1135 TO OBTAIN A MISCELLANEOUS FUEL TAX LICENSE, AND TO PROVIDE THAT THERE IS NO REGISTRATION FEE FOR THIS LICENSE; TO AMEND SECTION 12-28-1150, RELATING TO THE TAX ON MOTOR FUELS, FINGERPRINTING, AND EXEMPTIONS, SO AS TO CHANGE A REFERENCE TO THE TITLE OF AN AGENCY HEAD; TO AMEND SECTION 12-28-1155, RELATING TO THE REQUIREMENT THAT AN APPLICATION FOR A LICENSE UNDER CHAPTER 28, TITLE 12, MUST BE FILED WITH A SURETY BOND OR CASH DEPOSIT, SO AS TO ADD LANGUAGE TO A PROVISION OF THIS SECTION TO THE EFFECT THAT FUEL VENDORS DEFINED IN SECTION 12-28-1135, OTHER THAN PERSONS REQUIRED TO BE LICENSED UNDER PROVISIONS OTHER THAN IN THOSE SECTIONS, AND MISCELLANEOUS FUEL TAX LICENSEES DEFINED IN SECTION 12-28-1139, ARE EXEMPT FROM THE BONDING REQUIREMENTS; TO AMEND SECTION 12-28-1180, RELATING TO THE TAX ON MOTOR FUELS, NOTICE OF PROPOSED DENIAL OF APPLICATION FOR A LICENSE NOTICE OF SUSPENSION OR REVOCATION OF LICENSE, AND CERTAIN HEARINGS, SO AS TO PROVIDE FOR THE SUSPENSION OR REVOCATION OF A LICENSE FOR FAILURE TO COMPLY WITH CHAPTER 28, TITLE 12, AFTER AT LEAST THIRTY DAYS' NOTICE, RATHER THAN TEN DAYS' NOTICE, TO THE LICENSEE AND A HEARING, IF REQUESTED, PURSUANT TO THE ADMINISTRATIVE PROCEDURES ACT; TO AMEND SECTION 12-28-1300, RELATING TO THE TAX ON MOTOR FUELS, VERIFIED STATEMENT BY A SUPPLIER, AND REPORTING OF INFORMATION, SO AS TO PROVIDE THAT THE REPORTS REQUIRED BY ARTICLE 13 OF CHAPTER 28, TITLE 12, RATHER THAN BY SECTION 12-28-1300, MUST BE FILED WITH RESPECT TO INFORMATION FOR THE PRECEDING CALENDAR MONTH "ON OR BEFORE", RATHER THAN "BEFORE", THE TWENTY-SECOND DAY OF THE CURRENT MONTH, AND TO CHANGE A STATUTORY REFERENCE WITHIN THIS SECTION; TO AMEND SECTION 12-28-1320, RELATING TO THE TAX ON MOTOR FUELS AND THE REQUIREMENT THAT A LICENSED TANK IMPORTER MUST FILE A MONTHLY VERIFIED SWORN STATEMENT OF OPERATIONS, SO AS TO REFER TO AND IMPOSE THE REQUIREMENT OF THIS SECTION UPON, A "LICENSED TANK WAGON OPERATOR-IMPORTER", RATHER THAN A "LICENSED TANK IMPORTER"; TO AMEND SECTION 12-28-1390, RELATING TO THE TAX ON MOTOR FUELS AND A FUEL VENDOR'S REPORTS, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE FUEL VENDOR'S ANNUAL REPORT MUST BE FILED BEFORE FEBRUARY TWENTY-EIGHTH, RATHER THAN "BEFORE JANUARY TWENTY-FIRST", ANNUALLY FOR THE PRECEDING CALENDAR YEAR; TO AMEND THE 1976 CODE BY ADDING SECTION 12-28-1395 SO AS TO PROVIDE THAT A PERSON LICENSED AS A MISCELLANEOUS FUEL TAX LICENSEE IN SOUTH CAROLINA SHALL FILE MONTHLY A SWORN STATEMENT ON PRESCRIBED FORMS AND FURNISH ANY INFORMATION CONSIDERED NECESSARY BY THE ADMINISTERING AGENCY FOR THE ENFORCEMENT OF CHAPTER 28, TITLE 12; TO AMEND SECTION 12-28-1505, RELATING TO THE TAX ON MOTOR FUELS AND REQUIREMENTS RELATING TO SHIPPING DOCUMENTS, SO AS TO DELETE A CERTAIN REFERENCE TO "THE SECRETARY OF STATE" AND SUBSTITUTE "THE DEPARTMENT OF REVENUE AND TAXATION OR ITS AGENT"; TO AMEND SECTION 12-28-2110, RELATING TO SPECIALIZED COMPENSATING FUEL TAXES AND THE FUEL REPLACEMENT TAX, SO AS TO, AMONG OTHER THINGS, DELETE CERTAIN LANGUAGE AND PROVISIONS, AND TO REQUIRE THE COLLECTION OF THE TAX IMPOSED BY CHAPTER 28, TITLE 12; TO AMEND SECTION 12-28-2360, RELATING TO THE TAX ON MOTOR FUELS AND REFUND OF THE INSPECTION FEE ON PETROLEUM PRODUCTS, SO AS TO PROVIDE FOR PROOF OF CLAIM BEING SUBMITTED WITHIN THE TIME PERIOD PROVIDED FOR IN SECTION 12-54-85, RATHER THAN WITHIN SIX MONTHS FROM THE DATE SHOWN ON THE DELIVERY MANIFEST; TO AMEND SECTION 12-28-2380, RELATING TO THE TAX ON MOTOR VEHICLES, THE PROVISION THAT MOTOR FUELS USED IN THE OPERATION OF A MOTOR VEHICLE ARE TAXABLE, AND THE EXEMPTION FOR THE SELLER-USER OF LIQUEFIED PETROLEUM GAS, SO AS TO PROVIDE THAT ALL MOTOR FUELS PLACED INTO MOTOR VEHICLES FOR USE IN THEIR OPERATION OR FOR THE OPERATION OF THEIR PARTS OR ATTACHMENTS ARE SUBJECT TO THE "FEES", RATHER THAN THE "TAX", PROVIDED FOR IN ARTICLE 23 OF CHAPTER 28, TITLE 12, RATHER THAN "PROVIDED FOR IN CHAPTER 28, TITLE 12"; TO AMEND SECTION 12-28-2520, RELATING TO THE TAX ON MOTOR FUELS, REPORTS AND BOND REQUIREMENTS, AND OIL COMPANY BOND EXEMPTION BASED ON STATEMENT OF ASSETS AND LIABILITIES, SO AS TO PROVIDE THAT "A MOTOR FUEL LICENSEE", RATHER THAN "AN OIL COMPANY", MAY FURNISH A STATEMENT OF ASSETS AND LIABILITIES AND THAT IF IN THE JUDGMENT OF THE ADMINISTERING AGENCY, THE PROPERTY OWNED BY THE "MOTOR FUEL LICENSEE", RATHER THAN "THE OIL COMPANY", IS SUFFICIENT TO PROTECT THE STATE IN THE PAYMENT OF ALL "MOTOR FUEL TAXES", RATHER THAN "GASOLINE TAXES" DUE, A BOND IS NOT REQUIRED; TO REPEAL SECTION 12-28-2510, RELATING TO THE TAX ON MOTOR FUELS AND THE ANNUAL REPORTING REQUIREMENT OF GALLONS SOLD THROUGH RETAIL OUTLETS; TO AMEND SECTION 12-28-1575, RELATING TO NONTAXABLE DYED DIESEL FUEL, SO AS TO AUTHORIZE ADDITIONAL SOURCES OF SUCH FUEL; TO AMEND SECTION 12-28-710, RELATING TO GASOLINE TAX EXEMPTIONS, SO AS TO REVISE SPECIFIC REQUIREMENTS FOR TAX EXEMPTION; TO AMEND SECTION 56-5-4140, AS AMENDED, RELATING TO GROSS VEHICLE WEIGHT LIMITATIONS, SO AS TO REVISE THESE LIMITATIONS; AND TO AMEND SECTION 57-11-20, AS AMENDED, RELATING TO HIGHWAY FINANCING, SO AS TO PROVIDE FOR A STATE HIGHWAY CONSTRUCTION DEBT SERVICE FUND.
Be it enacted by the General Assembly of the State of South Carolina:
Taxation of motor carriers
SECTION 1. Chapter 37, Title 12 of the 1976 Code is amended by adding:
Section 12-37-2810. As used in this article, unless the context requires otherwise:
(A) `Motor carrier' means a person who owns, controls, operates, manages, or leases a motor vehicle for the transportation of property in intrastate or interstate commerce. Motor carriers are further defined as being a South Carolina based International Registration Plan registrant or owning or leasing real property within this State used directly in the transportation of freight.
(B) `Motor vehicle' means a motor propelled vehicle used for the transportation of property on a public highway with a gross vehicle weight of greater than twenty-six thousand pounds.
(C) `Highway' means all public roads, highways, streets, and ways in this State, whether within a municipality or outside of a municipality.
(D) `Person' means any individual, corporation, firm, partnership, company or association, and includes a guardian, trustee, executor, administrator, receiver, conservator, or a person acting in a fiduciary capacity.
(E) `Semitrailers' means every vehicle with or without motive power, other than a pole trailer, designed for carrying property and for being drawn by a motor vehicle and constructed so that a part of its weight and of its load rests upon or is carried by another vehicle.
(F) `Trailers' means every vehicle with or without motive power, other than a pole trailer, designed for carrying property and for being drawn by a motor vehicle and constructed so that no part of its weight rests upon the towing vehicle.
Section 12-37-2820. The Department of Public Safety annually shall assess, equalize, and apportion the valuation of all motor vehicles of motor carriers. The valuation must be based on fair market value for the motor vehicles and an assessment ratio of nine and one-half percent as provided by Section 12-43-220(g). Fair market value is determined by depreciating the gross capitalized cost of each motor vehicle by an annual percentage depreciation allowance down to ten percent of the cost as follows:
(1) Year One - .90
(2) Year Two - .80
(3) Year Three - .65
(4) Year Four - .50
(5) Year Five - .35
(6) Year Six - .25
(7) Year Seven - .20
(8) Year Eight - .15
(9) Year Nine - .10
Section 12-37-2830. The value of motor carrier's vehicles subject to property taxes in this State must be determined by the Department of Public Safety based on the ratio of total mileage operated within this State during the preceding calendar year to the total mileage of its entire fleet operated within and without this State during the same preceding calendar year.
Section 12-37-2840. Motor carriers must file an annual property tax return with the Department of Public Safety no later than the thirtieth day of June for the preceding calendar year with one-half or the entire tax due.
Section 12-37-2850. The Department of Public Safety shall assess annually the taxes due based on the value determined in Section 12-28-2820 and an average millage for all purposes statewide for the current year. The average millage may be increased to cover any loss of revenue from not licensing trailers incurred by the Department of Public Safety. The taxes assessed must be paid to the Department of Public Safety no later than December thirty-first of each year and may be made in two equal installments. Distribution of the taxes must be made by the Treasurer's Office based on the distribution formula contained in Section 12-37-2870.
Section 12-37-2860. In lieu of the property taxes and registration requirements after the initial registration on semitrailers and trailers, a one-time fee of eighty-seven dollars is due on all semitrailers and trailers currently registered and subsequently on each semitrailer and trailer before being placed in service. Twelve dollars of the one-time fee must be distributed to the Department of Public Safety. The remaining seventy-five dollars of the fee must be distributed based on the distribution formula contained in Section 12-37-2870.
Section 12-37-2870. The distribution for each county must be determined on the ratio of total federal and state highway miles within each county during the preceding calendar year to the total federal and state highway miles within all counties of this State during the same preceding calendar year. The county must distribute the revenue from the payment-in-lieu of taxes received pursuant to this section to every governmental entity levying a property tax in the manner set forth below. For each governmental entity levying a property tax, the entire assessed value of the taxable property within its boundaries and the county area must be multiplied by the millage rate imposed by the governmental entity. That figure constitutes the numerator for that governmental entity. The total of the numerators for all property tax levying entities within the county area constitutes the denominator. The numerator for each governmental entity must be divided by the denominator. The resulting percentage must be multiplied by the payment-in-lieu of tax revenue received pursuant to this section and that amount distributed to the general fund of the appropriate governmental entity.
Section 12-37-2880. Motor vehicles, as defined in Section 12-37-2810, owned, operated, managed, or leased by a motor carrier are exempt from property tax except as provided in this article."
Credits allowed
SECTION 2. For the taxes assessed and required to be paid in accordance with this act, under Section 12-37-2850 of the 1976 Code, credit shall be allowed for motor carrier's vehicle taxes previously paid for the 1998 tax year.
Returns
SECTION 3. The first annual property tax return under this act, required to be filed by Section 12-37-2840 of the 1976 Code, is due June 30, 1998.
Gasoline taxes
SECTION 4. A. Section 12-28-310 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-310. Subject to the exemptions provided in this chapter, a tax of sixteen cents a gallon is imposed on all gasoline used or consumed in this State and upon all diesel fuel used or consumed in this State in producing or generating power for propelling motor vehicles. The tax levied on taxable motor fuel pursuant to this chapter is a levy and assessment on the consumer, and the levy and assessment on other persons as specified in this chapter are as agents of the State for the collection of the tax. This section does not affect the method of collecting the tax as provided in this chapter. The tax imposed by this section must be collected and paid at those times, in the manner, and by those persons specified in this chapter. The license tax imposed by this section shall be in lieu of all sales, use, or other excise tax which may otherwise be imposed by any municipality, county, or other local political subdivision of the State."
B. Section 12-28-720 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-720. The exemption for exports:
(1) under Section 12-28-710(A)(1) must be perfected by a deduction on the report of the supplier which is otherwise responsible for tax on removal of the product from a terminal or refinery in this State;
(2) under Section 12-28-710(A)(2) and 12-28-710(A)(4) may be perfected at the option of the exporter by a refund claim if the claim in the aggregate month to date exceeds one thousand dollars, by a refund claimed on the licensed exporter report for that month's activity, or under Section 12-28-710(A)(3) if a diversion by an unlicensed exporter upon a refund application is made to the department within three years."
C. Section 12-28-740(2)(a)(iv) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(iv) a list of government tax-exempt purchasers qualifying under subsubitem (c) of this subitem and estimated volumes for them;"
D. Section 12-28-795 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-795. Interest on a claim for refund must be paid at the rate and in the manner provided for in Section 12-54-25."
E. Section 12-28-905 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-905. (A) Except as otherwise provided in this chapter, the tax imposed by Section 12-28-310 on taxable motor fuel measured by gallons imported from another state must be paid by the licensed occasional importer who has imported the nonexempt taxable motor fuel within three business days of the earlier of the time the nonexempt taxable motor fuel was entered into the State or the time a valid import verification number required by Section 12-28-1125 was assigned by the department under regulations the department promulgates. However, if the supplier has made a blanket election to pre-collect tax under Section 12-28-910(B), he is jointly liable with the importer for the tax and shall remit the tax to the department on behalf of the importer under the same terms as a supplier payment under Section 12-28-915, and no import verification number is required.
(B) Except as otherwise provided in this section, the tax imposed by Section 12-28-310 on taxable motor fuel measured by gallons imported from another state must be paid by the licensed bonded importer who has imported the nonexempt taxable motor fuel during a month before the twenty-second day of the following month unless the day falls upon a weekend or state or banking holiday, in which case the liability is due the next succeeding business day, if before the time of import the importer obtains a valid import verification number required by Section 12-28-1125, assigned by the department under regulations promulgated by the department. However, if the supplier has made a blanket election to pre-collect tax under Section 12-28-910(B), he is jointly liable with the importer for the tax and shall remit the tax to the department on behalf of the importer under the same terms as a supplier payment under Section 12-28-915, and no import verification number is required."
F. Section 12-28-915(D) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(D) A supplier shall give notification of late taxes remitted to the supplier by an eligible purchaser and give timely notification to the department of late remittances if that supplier previously gave notice to the department of an uncollectible tax amount pursuant to Section 12-28-940(B)."
G. Section 12-28-925 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-925. Each supplier and bonded importer who sells taxable motor fuel shall collect from the purchaser the motor fuel tax imposed under Section 12-28-310. At the election of an eligible purchaser evidenced by a written statement from the department as to the purchaser eligibility status as determined under Section 12-28-930, the seller may not require a payment of motor fuel tax on transport truckloads from the purchaser sooner than one business day before the date on which the tax is required to be remitted by the supplier or bonded importer under Section 12-28-915. This election is subject to a condition that the eligible purchaser's remittances of all amounts of tax due the seller must be paid by electronic funds transfer. Failure of a supplier or bonded importer to comply with the requirements of this section may result in suspension or revocation of the license in accordance with Section 12-28-1180(B). The eligible purchaser's election under this subsection may be terminated by the seller if the eligible purchaser does not make timely payments to the seller as required by this section."
H. Section 12-28-935 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-935. The department may rescind a purchaser's eligibility and election to defer taxable motor fuel tax remittances after a hearing and upon a showing of good cause, including failure to make timely tax deferred payment to a supplier of tax under Section 12-28-925 by sending written notice to all suppliers or publishing notice of the revocation pursuant to regulations. The department may require further assurance of the purchaser's financial responsibility, may increase the bond requirement for that purchaser, or may take other action to ensure remittance of the taxable motor fuel tax. The department shall follow the revocation procedures under Section 12-28-1180 in rescinding eligible purchaser status."
I. Section 12-28-940 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-940. (A) In computing the amount of motor fuel tax due, the supplier is entitled to a credit against the tax payable in the amount of tax paid by the supplier that is uncollectible from an eligible purchaser.
(B) The supplier shall provide notice to the department of a failure to collect tax within ten days following the earliest date on which the supplier was entitled to collect the tax from the eligible purchaser under Section 12-28-925.
(C) The department shall promulgate regulations establishing the evidence a supplier shall provide to receive the credit.
(D) The credit must be claimed on the first return following the date of the failure of the eligible purchaser if the payment remains unpaid as of the filing date of that return or the credit is disallowed.
(E) The claim for credit must identify the defaulting eligible purchaser and any tax liability that remains unpaid.
(F) If an eligible purchaser fails to make a timely payment of the amount of tax due, the supplier's credit is limited to the amount due from the purchaser, plus any tax that accrues from that purchaser for a period ending upon the date the supplier receives notice from the department of revocation of eligible purchaser status.
(G) No additional credit is allowed to a supplier under this section until the department authorizes the purchaser to make a new election under Section 12-28-925."
J. Section 12-28-970(A) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(A) A backup tax equal to the tax imposed by Section 12-28-310 is imposed and must be administered in accordance with regulations promulgated by the department on the use on the highways of taxable motor fuel by an end user, including operators of state and local government vehicles, American Red Cross vehicles, and buses, and other persons exempted from the full federal highway tax, unless the person is exempted otherwise under Section 12-28-710(A)(12), upon the delivery in this State into the fuel supply tank of a highway vehicle of:
(1) diesel fuel that contains a dye;
(2) taxable motor fuel on which a claim for refund has been made;
(3) alternative fuels; or
(4) liquid on which tax previously has not been imposed by this chapter."
K. Section 12-28-1130 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-1130. Each person who is an importer of taxable motor fuel into this State by a tank wagon operating out of or controlling a bulk plant in another state, if the destination of that tank wagon is within twenty-five miles of the borders of South Carolina, shall make application for and obtain a license from the department before engaging in import activities. However, registration as a tank wagon operator-importer does not constitute authorization of the persons to acquire nonexempt motor fuel free of the tax imposed by this chapter at a terminal either within or outside this State for direct delivery to a location in South Carolina. A person who possesses a valid importer's license is eligible as a tank wagon operator-importer without issuance of a separate license if the importer also operates one or more bulk plants outside this State. The fee for a tank wagon operator-importer license is fifty dollars. Operators of tank wagons delivering products into this State more than twenty-five miles from the border shall apply for an importer's license under Section 12-28-1125."
L. Section 12-28-1135 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-1135. (A) Each person who engages in the business of selling taxable motor fuel at wholesale or retail or storing or distributing taxable motor fuel for resale within this State first shall obtain a fuel vendor license which is operative for all locations controlled or operated by that licensee in this State or in any other state from which the person removes fuel for delivery and use in South Carolina.
(B) Each fuel vendor shall maintain detailed records of all purchases and sales for no less than three years.
(C) All fuel vendor records must be maintained in English and Arabic numerals or acceptable to electronic formats.
(D) Each fuel vendor shall make an annual report of taxable gallons sold at retail by county in accordance with Section 12-28-1390.
(E) In its discretion, the department may exempt from subsection (A) persons who possess a valid supplier, terminal operator, transporter, importer, tank wagon operator, or exporter license. The fee for the fuel vendor license is fifty dollars."
M. The 1976 Code is amended by adding:
"Section 12-28-1139. Each person who is liable for the tax imposed by Sections 12-28-970 and 12-28-990(C) who is not licensed under Sections 12-28-1100 through 12-28-1135 shall obtain a miscellaneous fuel tax license. There is no registration fee for this license."
N. Section 12-28-1150 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-1150. Applicants, including corporate officers, partners, and individuals, for a license issued by the director, may be required to submit their fingerprints to the department at the time of applying. Officers of publicly-held corporations and their subsidiaries are exempt from this fingerprinting provision. Persons, other than applicants for an importer's license, who possessed licenses issued under a predecessor statute continuously for three years before the effective date of this chapter also are exempt from this provision. Fingerprints required by this section must be submitted on forms prescribed by the department. The department may forward to the Federal Bureau of Investigation or any other agency for processing all fingerprints submitted by license applicants. The receiving agency shall issue its findings to the department. The license application fee must be used to pay the cost of the investigation. The department or another state agency may maintain a file of fingerprints."
O. Section 12-28-1155(D) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(D) Fuel vendors defined in Section 12-28-1135, other than persons required to be licensed under provisions other than in those sections, and miscellaneous fuel tax licensees defined in Section 12-28-1139, are exempt from the bonding requirements of this section."
P. Section 12-28-1180(B) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(B) The department may suspend or revoke a license for failure to comply with this chapter after at least thirty days' notice to the licensee and a hearing, should such be requested, pursuant to the Administrative Procedures Act."
Q. Section 12-28-1300(B) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(B) The reports required by this article must be filed with respect to information for the preceding calendar month on or before the twenty-second day of the current month."
R. Section 12-28-1300(C)(13) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(13) corrections made by the supplier pursuant to Section 12-28-1525 for changes in destination state which affect the supplier's or his customer's tax liability to this State;"
S. Section 12-28-1320 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-1320. Each licensed tank wagon operator-importer shall file with the department monthly a verified sworn statement of operations within this State plus other information in respect of the source and means of transportation of nonexempt taxable motor fuel as the department in its discretion may require on forms it prescribes and furnishes. A person who knowingly violates or knowingly aids and abets another to violate this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars or imprisoned not more than thirty days."
T. Section 12-28-1390(A) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(A) A fuel vendor shall file an annual report of total gallons of gasoline sold at retail through a retail outlet accessible to the general public by that vendor by county before February twenty-eighth annually for the preceding calendar year."
U. The 1976 Code is amended by adding:
"Section 12-28-1395. A person licensed as a miscellaneous fuel tax licensee in this State shall file monthly a sworn statement on forms prescribed by the department and furnish any information the department considers necessary to the enforcement of this chapter."
V. Section 12-28-1505(A)(3)(b) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(b) receives from the Department of Revenue and Taxation or its agent a verification number authorizing the diversion;"
W. Section 12-28-2110 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-2110. The department must collect the tax imposed by this chapter on taxable motor fuels consumed on the highways by state and local government diesel and other federally exempt fuel-powered highway vehicles, to be collected and administered in accordance with Sections 12-28-1139 and 12-28-1395."
X. Section 12-28-2360 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-2360. A person may present to the department proof that he has paid an inspection fee on petroleum products in error or has paid an inspection fee on shipments of petroleum products subsequently diverted from the State, whereupon the department shall refund the amount of the inspection fee to the payee out of the petroleum products inspection fund, if the proof of the claim is submitted within the time period provided for in Section 12-54-85."
Y. Section 12-28-2380 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-2380. All motor fuels placed into motor vehicles for use in their operation or for the operation of their parts or attachments are subject to the fees provided in this article. This section does not apply to a seller-user of liquefied petroleum gas."
Z. Section 12-28-2520 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-2520. A motor fuel licensee may furnish the department with a statement of assets and liabilities, and if in the judgment of the department the property owned by the motor fuel licensee is sufficient to protect the State in the payment of all motor fuel taxes due, a bond is not required."
AA. Section 12-28-2510 of the 1976 Code is repealed.
BB. Section 12-28-1575 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-1575. In general, a notice stating: `DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE' must be:
(1) provided by the terminal operator to a person who receives dyed diesel fuel at a terminal rack of that terminal operator;
(2) provided by a seller of dyed diesel fuel to its buyer if the diesel fuel is located outside the bulk transfer/terminal system and is not sold from a retail pump or bulk plant posted in accordance with the requirements of item (3);
(3) posted by a seller on a retail pump or bulk plant where it sells dyed diesel fuel for use by its buyer."
CC. Section 12-28-710(A)(1)(c) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(c) which is destined for use other than for resale within the destination state for which an exemption has been made available by the destination state subject to procedural regulations promulgated by the department;"
DD. Section 12-28-710(A)(7) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(7) subject to determination by the department, that portion of taxable motor fuel used to operate equipment attached to a motor vehicle, if the taxable motor fuel was placed into the fuel supply tank of a motor vehicle that has a common fuel reservoir for travel on a highway and for the operation of equipment;"
EE. Notwithstanding any other effective date provided in this act, this section takes effect May 1, 1996.
Gross vehicle weight
SECTION 5. Section 56-5-4140 of the 1976 Code, as last amended by an act of 1996 bearing ratification number 459, is further amended to read:
"Section 56-5-4140. (1)(a) The gross weight of a vehicle or combination of vehicles, operated or moved upon any interstate, highway or section of highway shall not exceed:
(1) Single-unit vehicle with two axles35,000 lbs.
(2) Single-unit vehicle with three axles46,000 lbs.
(3) Single-unit vehicle with four axles63,500 lbs.
Except, on the interstate, vehicles must meet axle spacing requirements and corresponding maximum overall gross weights, not to exceed 63,500 lbs., in accordance with the table in (b) plus tolerances.
(4) Single unit vehicle with five or more axles65,000 lbs.
Except, on the interstate, vehicles must meet axle spacing requirements and corresponding maximum overall gross weights, not to exceed 65,000 lbs., in accordance with the table in (b) plus tolerances.
(5) Combination of vehicles with three axles50,000 lbs.
(6) Combination of vehicles with four axles65,000 lbs.
(7) Combination of vehicles with five
or more axles 73,280 lbs.
The gross weight imposed upon any highway or section of highway other than the interstate by two or more consecutive axles in tandem articulated from a common attachment to the vehicle and spaced not less than forty inches nor more than ninety-six inches apart shall not exceed thirty-six thousand pounds, and no one axle of any such group of two or more consecutive axles shall exceed the load permitted for a single axle. The load imposed on the highway by two consecutive axles, individually attached to the vehicle and spaced not less than forty inches nor more than ninety-six inches apart, shall not exceed thirty-six thousand pounds and no one axle of any such group of two consecutive axles shall exceed the load permitted for a single axle.
The ten percent enforcement tolerance specified in Section 56-5-4160 applies to the vehicle weight limits specified in this section except, the gross weight on a single axle operated on the interstate may not exceed 20,000 pounds, including all enforcement tolerances; the gross weight on a tandem axle operated on the interstate may not exceed 35,200 pounds, including all enforcement tolerances; and the overall gross weight for vehicles operated on the interstate may not exceed 75,185 pounds, including all enforcement tolerances except as provided in (b).
(b) Vehicles with an overall maximum gross weight in excess of 75,185 pounds may operate upon any highway or section of highway in the Interstate System up to an overall maximum of 80,000 pounds in accordance with the following:
The weight imposed upon the highway by any group of two or more consecutive axles may not, unless specially permitted by the department exceed an overall gross weight produced by the application of the following formula:
W=500 (LN/N-1 + 12N + 36)
In the formula W equals overall gross weight on any group of two or more consecutive axles to the nearest 500 pounds, L equals distance in feet between the extreme of any group of two or more consecutive axles, and N equals number of axles in the group under consideration.
As an exception, two consecutive sets of tandem axles may carry a gross load of 68,000 pounds if the overall distance between the first and last axles of the consecutive sets of tandem axles is 36 feet or more. The formula is expressed by the following table:
Distance in feet
between the extremes Maximum load in pounds
of any group of 2 or carried on any group of 2
more consecutive axles or more consecutive axles
2 3 4 5 6 7
axles axles axles axles axles axles
4 35,200
5 35,200
6 35,200
7 35,200
8 and
less 35,200 35,200
more
than 8 38,000 42,000
9 39,000 42,500
10 40,000 43,500
11 44,000
12 45,000 50,000
13 45,500 50,500
14 46,500 51,500
15 47,500 52,000
16 48,000 52,500 58,000
17 48,500 53,500 58,500
18 49,500 54,000 59,000
19 50,500 54,500 60,000
20 51,000 55,500 60,500 66,000
21 51,500 56,000 61,000 66,500
22 52,500 56,500 61,500 67,000
23 53,000 57,500 62,500 68,000
24 54,000 58,000 63,000 68,500 74,000
25 54,500 58,500 63,500 69,000 74,500
26 55,500 59,500 64,000 69,500 75,000
27 56,000 60,000 65,000 70,000 75,500
Distance in feet
between the extremes Maximum load in pounds
of any group of 2 or carried on any group of 2
more consecutive axles or more consecutive axles
2 3 4 5 6 7
axles axles axles axles axles axles
28 57,000 60,500 65,500 71,000 76,500
29 57,500 61,500 66,000 71,500 77,000
30 58,500 62,000 66,500 72,000 77,500
31 59,000 62,500 67,500 72,500 78,000
32 60,000 63,500 68,000 73,000 78,500
33 64,000 68,500 74,000 79,000
34 64,500 69,000 74,500 80,000
35 65,500 70,000 75,000
36 68,000 70,500 75,500
37 68,000 71,000 76,000
38 68,000 71,500 77,000
39 68,000 72,500 77,500
40 68,500 73,000 78,000
41 69,500 73,500 78,500
42 70,000 74,000 79,000
43 70,500 75,000 80,000
44 71,500 75,500
45 72,000 76,000
46 72,500 76,500
47 73,500 77,500
48 74,000 78,000
49 74,500 78,500
50 75,500 79,000
51 76,000 80,000
52 76,500
53 77,500
54 78,000
55 78,500
56 79,500
57 80,000
(2) Except on the interstate highway system:
(a) Dump trucks, dump trailers, trucks carrying agricultural products, concrete mixing trucks, fuel oil trucks, line trucks, and trucks designated and constructed for special type work or use are not required to conform to the axle spacing requirements of this section. However, the vehicle is limited to a weight of twenty thousand pounds for each axle plus scale tolerances and the maximum gross weight of these vehicles may not exceed the maximum weight allowed by this section for the appropriate number of axles, irrespective of the distance between axles, plus allowable scale tolerances.
(b) Concrete mixing trucks which operate within a fifteen-mile radius of their home base are not required to conform to the requirements of this section. However, these vehicles are limited to a maximum load of the rated capacity of the concrete mixer, the true gross load not to exceed sixty-six thousand pounds. All of these vehicles shall have at least three axles each with brake-equipped wheels.
(c) Well-drilling, boring rigs, and tender trucks are not required to conform to the axle spacing requirements of this section. However, the vehicle is limited to seventy thousand pounds gross vehicle weight and twenty-five thousand pounds for each axle plus scale tolerances."
Use of funds
SECTION 6. Section 57-11-20(A) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
"(A) All state revenues and state monies dedicated by statute to the operation of the department must be deposited into one fund to be known as the `state highway fund' and all federal revenues and federal monies must be deposited into the `federal aid highway fund'. These funds must be held and managed by the State Treasurer separate and distinct from the general fund, except as to monies utilized by the State Treasurer for the payment of principal or interest on state highway bonds as provided by law. Interest income from the state highway fund must be deposited to the credit of the state highway fund. The commission may commit up to the maximum annual debt service provided in Article X, Section 13 of the South Carolina Constitution into a special fund to be used for the sole purpose of paying the principal and interest, as it comes due, on bonds issued for the construction and/or maintenance of state highways. This special account will be designated as the State Highway Construction Debt Service Fund."
Time effective
SECTION 7. Sections 1, 2, and 3 of this act are effective for calendar years beginning after December 31, 1997. Section 4 of this act is effective May 1, 1996. Sections 5 and 6 of this act take effect upon approval by the Governor.
Approved the 3rd day of July, 1996.