Current Status Bill Number:4526 Ratification Number:458 Act Number:334 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19980128 Primary Sponsor:Kelley All Sponsors:Kelley, Edge, Barfield and Keegan Drafted Document Number:jic\5137htc.98 Companion Bill Number:1106 Date Bill Passed both Bodies:19980527 Date of Last Amendment:19980519 Governor's Action:S Date of Governor's Action:19980609 Subject:Admissions license tax, imposition of and exemptions from, Taxation; Gambling, Bingo license tax, hard cards, Revenue
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19980617 Act No. A334
------ 19980609 Signed by Governor
------ 19980604 Ratified R458
House 19980527 Concurred in Senate amendment,
enrolled for ratification
House 19980527 Refused to return the Bill to the
Senate
Senate 19980526 Requested the House to return
the Bill
Senate 19980520 Read third time, returned to House
with amendment
Senate 19980519 Amended, read second time,
ordered to third reading
with notice of general amendments
Senate 19980429 Recalled from Committee 06 SF
Senate 19980327 Introduced, read first time, 06 SF
referred to Committee
House 19980325 Read third time, sent to Senate
House 19980324 Amended, read second time
House 19980319 Committee report: Favorable with 30 HWM
amendment
House 19980128 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
(A334, R458, H4526)
AN ACT TO AMEND SECTION 12-21-2420, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE IMPOSITION OF AND EXEMPTIONS FROM THE ADMISSIONS LICENSE TAX, SO AS TO PROVIDE THAT THE MEASURE OF THIS TAX DOES NOT INCLUDE ANY TAX OR FEE IMPOSED BY A POLITICAL SUBDIVISION OF THE STATE THAT CONSTITUTES A PART OF THE CHARGE FOR ADMISSION; TO AMEND SECTION 27-16-110, RELATING TO BINGO AND VIDEO POKER FOR PURPOSES OF THE CATAWBA INDIAN CLAIM SETTLEMENT ACT, SO AS TO UPDATE REFERENCES AND CHANGE THE MEASURE OF THE SPECIAL BINGO TAX PROVIDED FOR UNDER THE ACT FROM TEN PERCENT OF GROSS PROCEEDS OF A SESSION TO TEN PERCENT FOR EACH DOLLAR OF FACE VALUE FOR EACH BINGO CARD SOLD; AND TO AMEND SECTION 12-21-4020, AS AMENDED, RELATING TO BINGO LICENSES, SO AS TO AUTHORIZE THE DEPARTMENT OF REVENUE TO ALLOW CLASS C LICENSES TO USE HARD BINGO CARDS AND PROVIDE THE QUALIFICATIONS OF THE LICENSEE NECESSARY FOR THE DEPARTMENT TO ALLOW THE USE OF HARD CARDS.
Be it enacted by the General Assembly of the State of South Carolina:
Admissions license tax
SECTION 1. The last paragraph of Section 12-21-2420 of the 1976 Code, as last amended by Section 146 of Act 181 of 1993, is further amended to read:
The tax imposed by this section must be paid by the person or persons paying the admission price and must be collected and remitted to the South Carolina Department of Revenue by the person or persons collecting the admission price. The tax imposed by this section does not apply to:
(a) any amount separately stated on the ticket of admission for the repayment of money borrowed for the purpose of constructing an athletic stadium or field by any accredited college or university; or
(b) any amount of the charge for admission, whether or not separately stated, that is a fee or tax imposed by a political subdivision of the State. The revenue derived from the provisions of this section from fishing piers along the coast of South Carolina is allocated for use of the Commercial Fisheries Division of the Department of Natural Resources.
Catawba Indians, bingo
SECTION 2. Section 27-16-110 of the 1976 Code, as added by Act 142 of 1993, is further amended to read:
"Section 27-16-110. (A) Except as specifically provided in the federal implementing legislation and this chapter, all laws, ordinances, and regulations of South Carolina and its political subdivisions govern the conduct of gambling or wager by the Tribe on and off the Reservation.
(B) The State shall govern the conduct of bingo under Article 24, Chapter 21 of Title 12, Regulation of Bingo Games, including regulations or rulings issued in relation to that article, except as provided by the special bingo license to which the Tribe is entitled in accordance with this section if it elects to sponsor bingo games under the special license.
(1) For purposes of conducting the game of bingo, the Tribe is deemed a nonprofit organization under Article 24, Chapter 21 of Title 12.
(2) If the Tribe elects to conduct the game of bingo either on or off the Reservation, the Tribe shall obtain a license from the South Carolina Department of Revenue. Based on the Tribe's election, the Tribe may be licensed by the South Carolina Department of Revenue to conduct games of bingo under a regular license allowed nonprofit organizations or under the special license provided by this section.
(C) The Tribe may apply to the South Carolina Department of Revenue for a special bingo license in lieu of licenses authorized by Article 24, Chapter 21 of Title 12. A special or regular license must be granted if the Tribe complies with licensing requirements and procedures. The special license is identical in all respects to the class of license permitting the highest level of prizes allowed by law and carries the same privileges and duties as the class of license permitting the highest level of prizes provided by law, except:
(1) The frequency of the sessions must be determined by the executive committee but must be no more frequent than six sessions a week, with sessions on Sundays prohibited unless state law otherwise expressly allows Sunday sessions.
(2) The amount of prizes offered each session must be determined by the Tribe, but must not be greater than one hundred thousand dollars for any game.
(3) The Tribe shall pay, in lieu of an admission, a head, a license, or any other bingo tax, a special bingo tax equal to ten percent for each dollar of face value for each bingo card sold. No other federal, state, or local taxes apply to revenues generated by the bingo games operated by the Tribe. All revenues derived from the special bingo tax must be collected by the South Carolina Department of Revenue and deposited with the State Treasurer for the benefit of the General Fund of South Carolina.
(4) At least fifty percent of the gross proceeds received by the Tribe during a calendar quarter must be returned to the players in the form of prizes. For purposes of this section, 'gross proceeds' does not include the ten percent special bingo tax.
(5) The Tribe is entitled to two bingo licenses, and these licenses may be used to operate at two locations only. They are not assignable to any other entity or individual.
(6) The net proceeds derived by the Tribe from the conduct of bingo may be used for any purpose authorized by the Tribe.
(D) The Tribe may elect to operate one of the games under a special bingo license off the Reservation and not within the one hundred forty-four thousand acre Catawba Claim Area, but before doing so, it first must obtain the approval of the governing authority of the county and any municipality in which it seeks to locate the facility. If the Tribe elects to operate one or both of the games off the Reservation but within the one hundred forty-four thousand acre Catawba Claim Area, it shall do so in an area zoned compatibly for commercial activities after consulting with the municipality or county where a facility is to be located.
(E) The sponsor and promoter of the bingo games is the Catawba Indian Tribe, and all profits gained from the enterprise accrue to the Tribe. The South Carolina Department of Revenue, or its regulatory successor, has the power to administer, oversee, and regulate all bingo games sponsored and conducted by the Tribe, audit and enforce the operation of the games, and assess and collect taxes, interest, and penalties in accordance with the laws and regulations of the State as they apply to the Tribe. The South Carolina Department of Revenue, or its regulatory successor, has the right to suspend or revoke the Tribe's bingo license or special bingo license if the Tribe violates the law with regard to conducting the game. However, the Department of Revenue, or its regulatory successor, first shall notify the Tribe of violations and provide the Tribe with an opportunity to correct the violations before its license may be revoked. Failure to pay bingo taxes, interest, or penalties may be grounds for license revocation.
(F) A license of the Tribe to conduct bingo must be revoked if the game of bingo is no longer licensed by the State. If the State resumes licensing the game of bingo, the Tribe's license or special license must be reinstated if the Tribe complies with all licensing requirements and procedures.
(G) The Tribe may permit on its Reservation video poker or similar electronic play devices to the same extent that the devices are authorized by state law. The Tribe is subject to all taxes, license requirements, regulations, and fees governing electronic play devices provided by state law, except if the Reservation is located in a county or counties which prohibit the devices pursuant to state law, the Tribe nonetheless must be permitted to operate the devices on the Reservation if the governing body of the Tribe so authorizes, subject to all taxes, license requirements, regulations, and fees governing electronic play devices provided by state law.
(H) If the Tribe elects to sponsor and conduct games of bingo under a regular license allowed nonprofit organizations under Article 24, Chapter 21 of Title 12, the Tribe must be taxed as a nonprofit corporation under that article."
Bingo, hard cards
SECTION 3. Section 12-21-4020 of the 1976 Code, as last amended by Act 285 of 1998, is further amended to read:
"Section 12-21-4020. The following are the classes of bingo licenses:
(1) CLASS AA: An organization operating a bingo game offering prizes with a minimum payout of fifty thousand dollars a session shall obtain a Class AA bingo license at a cost of four thousand dollars. The prizes offered at any one session may not exceed two hundred fifty thousand dollars. The holder of a Class AA license may not conduct more than one bingo session a month.
(2) CLASS B: An organization operating a bingo game offering prizes, which do not exceed eight thousand dollars a session, shall obtain a Class B bingo license at a cost of one thousand dollars. The holder of a Class B license may not conduct more than three bingo sessions a week.
(3) CLASS C: An organization operating a bingo game and offering prizes of twenty dollars or less a game during a single session shall obtain a Class C bingo license at no cost. However, the organization may offer a prize in cash or merchandise of no more than one hundred fifty dollars for six jackpot games a session. The department, in its discretion, may allow certain Class C licenses to use hard bingo cards in lieu of the paper cards required by this article.
To qualify to play on hard cards, a bingo game conducted by a Class C license must meet the following criteria:
(a) be operated solely by volunteers;
(b) the person managing, conducting, or operating the bingo game may not be paid or otherwise be compensated and must be a designated member of the organization;
(c) remuneration (including wages or other compensation) may not be made to any individual or corporation;
(d) all equipment used to operate a game of bingo, including chairs, tables, and other equipment, must be owned by the charity;
(e) the organization must lease the building directly from the owner of the building or own the building in which the game of bingo is played. The organization may not lease or sublease the building from a person who is not the owner;
(f) the only expenses allowed to be paid from the proceeds of the game are utility bills, prizes, purchases of cards, payments for the lease of a building, purchases of equipment required to operate a game of bingo, and the charitable purposes of the organization;
(g) one hundred percent of the net proceeds from the operation of the game must be used for charitable purposes.
(4) CLASS D: A person, organization, or corporation desiring to conduct a bingo game at a fair as defined in Section 12-21-3920 and who offers prizes for each game of no more than fifty dollars in merchandise shall obtain only a temporary Class D bingo license at a cost of one hundred dollars for not more than ten days or two hundred dollars for more than ten days.
(5) CLASS E: An organization which has a game of bingo and operates exclusively by bona fide members who are residents of this State and who do so on a strictly volunteer basis and whose gross bingo proceeds do not exceed forty thousand dollars a calendar quarter, and where prizes do not exceed four thousand dollars a session shall obtain a Class E license from the department at a cost of five hundred dollars. If the gross bingo proceeds for any calendar quarter exceed thirty thousand dollars, the person or organization within ten days is required to obtain a Class B license from the department and comply with all requirements of a Class B license. The holder of a Class E license may not conduct more than one bingo session a week.
(6) CLASS F: An organization which has a game of bingo and operates exclusively by bona fide members who are residents of this State and who do so on a strictly volunteer basis and whose gross proceeds do not exceed forty thousand dollars a calendar quarter, and where prizes do not exceed four thousand dollars a session and where bingo proceeds are only used to pay the organization's utility bills, to pay charges for bingo paper, and for the charitable purpose of the organization, shall obtain a Class F license from the department at the cost of one hundred dollars. The holder of a Class F license may not conduct more than one bingo session a week."
Time effective
SECTION 4. Section 1 shall take effect January 1, 1999, and the remaining provisions of the act take effect upon approval by the Governor.
Approved the 9th day of June, 1998.