Current Status Bill Number:3297 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970128 Primary Sponsor:Walker All Sponsors:Walker, Altman, Beck, R. Smith, Tripp, Barrett, F. Smith, Mason, Simrill, Townsend, Whatley, Barfield, Law, Spearman, Stille, Wilder, Cooper, Stoddard, Allison, Littlejohn, Lanford, Klauber, Leach, Knotts, Phillips, McCraw, Davenport, Lee, Haskins, Trotter, Riser, Rhoad and Gamble Drafted Document Number:gjk\23151htc.97 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Sales and use tax increased to six percent, Motor Vehicle Property Tax Relief Fund, Taxation, Motor Vehicles
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19970128 Introduced, read first time, 30 HWM
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 IN CHAPTER 36 OF TITLE 12, SO AS TO INCREASE THE RATE OF THE STATE SALES, USE, AND CASUAL EXCISE TAX FROM FIVE TO SIX PERCENT ON ITEMS NOT SUBJECT TO A MAXIMUM TAX AND PROVIDE FOR THE CREDITING OF THE REVENUE OF THIS ADDITIONAL TAX TO A SEPARATE FUND STYLED THE "MOTOR VEHICLE PROPERTY TAX RELIEF FUND" AND TO CREDIT THE EXCESS REVENUE TO THE EDUCATION IMPROVEMENT ACT FUND; TO AMEND SECTION 12-36-2110, AS AMENDED, RELATING TO THE THREE HUNDRED DOLLAR MAXIMUM SALES AND USE TAX ON MOTOR VEHICLES AND CERTAIN OTHER ITEMS, SO AS TO RAISE THIS MAXIMUM TAX TO THREE HUNDRED SIXTY DOLLARS; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT FROM TAX ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF ALL PRIVATE PASSENGER MOTOR VEHICLES AND TRUCKS WITH AN EMPTY WEIGHT OF NOT MORE THAN FIVE THOUSAND POUNDS FROM SCHOOL OPERATING MILLAGE, TO PROVIDE FOR THE REIMBURSEMENT OF SCHOOL DISTRICTS FOR REVENUES NOT COLLECTED BECAUSE OF THIS EXEMPTION FROM THE MOTOR VEHICLE PROPERTY TAX RELIEF FUND, AND FOR THE DISTRIBUTION OF EXCESS REVENUES; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT FOOD ITEMS ELIGIBLE FOR PURCHASE WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 36, Title 12 of the 1976 Code is amended by adding:
Section 12-36-1110. (A) An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter.
(B) The tax imposed pursuant to this article does not apply to any item subject to the maximum tax provisions of Section 12-36-2110.
(C) Revenue of the tax imposed pursuant to this article must be credited to a fund separate from the general fund of the State styled the 'Motor Vehicle Property Tax Relief Fund'. Revenues in this fund must be used to reimburse school districts for revenues not collected because of the exemption allowed for private passenger motor vehicles and pickup trucks. Amounts accumulating in this fund in excess of the amounts required for reimbursements must be credited to the Education Improvement Act Fund."
SECTION 2. Subsections (A) and (B) of Section 12-36-2110 of the 1976 Code, as last amended by Act 431 of 1996, are further amended to read:
"(A) The maximum tax imposed by this chapter is three hundred sixty dollars for each sale made after June 30, 1984, or lease executed after August 31, 1985, of each:
(1) aircraft, including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft;
(2) motor vehicle;
(3) motorcycle;
(4) boat;
(5) trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, and horse trailers but not including house trailers or campers as defined in Section 56-3-710;
(6) recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel; or
(7) self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower.
In the case of a lease, the total tax rate required by law applies on each payment until the total tax paid equals three hundred sixty dollars. Nothing in this section prohibits a taxpayer from paying the total tax due at the time of execution of the lease, or with any payment under the lease. To qualify for the tax limitation provided by this section, a lease must be in writing and specifically state the term of, and remain in force for, a period in excess of ninety continuous days.
(B) For the sale of a manufactured home, as defined in Section 40-29-20, the tax is calculated as follows:
(1) subtract trade-in allowance from the sales price;
(2) multiply the result from (1) by sixty-five percent;
(3) if the result from (2) is no greater than six seven thousand two hundred dollars, multiply by five percent for the amount of tax due;
(4) if the result from (2) is greater than six seven thousand two hundred dollars, the tax due is three hundred sixty dollars plus two percent of the amount greater than six seven thousand two hundred dollars.
However, a manufactured home is exempt from any tax that may be due above three hundred sixty dollars as a result of the calculation in item (4) if it meets these energy efficiency levels: storm or double pane glass windows, insulated or storm doors, a minimum thermal resistance rating of the insulation only of R-11 for walls, R-19 for floors, and R-30 for ceilings. However, variations in the energy efficiency levels for walls, floors, and ceilings are allowed and the exemption on tax due above three hundred dollars applies if the total heat loss does not exceed that calculated using the levels of R-11 for walls, R-19 for floors, and R-30 for ceilings. The edition of the American Society of Heating, Refrigerating, and Air Conditioning Engineers Guide in effect at the time is the source for heat loss calculation. The dealer selling the manufactured home must maintain records, on forms provided by the State Energy Office, on each manufactured home sold which contains the above calculations and verifying whether or not the manufactured home met the energy efficiency levels provided for in this subsection. These records must be maintained for three years and must be made available for inspection upon request of the Department of Consumer Affairs or the State Energy Office."
SECTION 3. Section 12-36-2120 of the 1976 code is amended by adding an appropriately numbered item at the end to read:
"( ) food items eligible for purchase with United States Department of Agriculture food coupons, not including restaurant meals."
SECTION 4. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( )(a) Subject to the requirements of subitem (b), one hundred percent of the fair market value of a motor vehicle which may be registered upon payment of the fees provided in Section 56-3-620 and a truck with an empty weight of not more than five thousand pounds is exempt from millage imposed for schools, not including millage levied for debt service and payments levied pursuant to lease purchase agreements for capital construction.
(b) Revenues not collected because of this exemption must be reimbursed to school districts from the Motor Vehicle Property Tax Relief Fund in the manner provided in Section 12-37-270, mutatis mutandis, except that reimbursements must be made not less than quarterly."
SECTION 5. This act takes effect July 1, 1997, and with respect to the amendments to Section 12-36-2110 of the 1976 Code contained in this act, applies to sales made or leases executed after June 30, 1997.