Current Status Bill Number:240 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970122 Primary Sponsor:Washington All Sponsors:Washington, Glover, Cork, Matthews, Hutto, Jackson, Ford, Moore, Leventis, McGill, Drummond, Giese, Wilson, Lander, Williams, Holland, Passailaigue and Anderson Drafted Document Number:jic\5284htc.97 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Sales tax exemption, food purchased with Agriculture Department food coupons; taxation
Body Date Action Description Com Leg Involved
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Senate 19970122 Introduced, read first time, 06 SF
referred to Committee
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TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO PHASE IN OVER THREE FISCAL YEARS AN EXEMPTION FOR FOOD ITEMS WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE FOR THE USE OF THE REVENUE FROM THE REDUCED RATES OF TAX DURING THE PHASE-IN PERIOD, AND TO PROVIDE FOR THE APPLICATION OF THE LOCAL SALES AND USE TAX ON SALES AND CONSUMPTION OF THESE FOOD ITEMS THROUGH JUNE 30, 2000, AFTER WHICH THESE ITEMS ARE WHOLLY EXEMPT FROM THE STATE AND LOCAL SALES AND USE TAX.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) effective July 1, 2000, food items eligible for purchase with United States Department of Agriculture food coupons, not including restaurant meals."
B. Notwithstanding the rates of tax imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons, not including restaurant meals, is three and one-half percent for sales or consumption in fiscal year 1997-98, two percent for such sales or consumption in fiscal year 1998-99, and one percent for such sales or consumption in fiscal year 1999-2000. Eighty percent of the revenues from sales taxes imposed by this section must be credited to the general fund of this State and the remainder must be credited to the Education Improvement Act Fund. The local sales and use tax authorized pursuant to Chapter 10 of Title 4 continues to apply to those sales subject to the reduced state rate of tax provided in this subsection through June 30, 2000, after which such sales are exempt from the local sales and use tax.
SECTION 2. This act takes effect July 1, 1997.