Current Status Bill Number:4849 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19980319 Primary Sponsor:Boan All Sponsors:Boan Drafted Document Number:BBM\9759MM.98 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Taxation, cigarettes and tobacco products; taxes and licenses on; Agriculture
Body Date Action Description Com Leg Involved
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House 19980319 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND ARTICLE 5, CHAPTER 21, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION OF TOBACCO, AMMUNITION, AND PLAYING CARDS, BY ADDING SECTION 12-21-830 SO AS TO PROVIDE FOR REGULAR REPORTING AND PAYMENT OF TAXES ON CIGARETTES AND TOBACCO PRODUCTS; TO AMEND SECTION 12-21-660, AS AMENDED, RELATING TO LICENSING REQUIREMENTS FOR ENGAGING IN THE TOBACCO BUSINESS, SO AS TO INCLUDE CIGARETTES AND TOBACCO PRODUCTS; TO AMEND SECTION 12-21-735, AS AMENDED, RELATING TO PAYMENT OF LICENSE TAX ON CIGARETTES, SO AS TO INCLUDE TOBACCO PRODUCTS AND TO INCLUDE PAYMENT BY PERSONS WHO SELL OR POSSESS FOR SALE CIGARETTES AND TOBACCO PRODUCTS FOR USE OR CONSUMPTION; TO AMEND SECTION 12-21-760, RELATING TO THE INTENT OF THE STAMP AND BUSINESS TAX, SO AS TO PROVIDE THAT ONCE SUCH TAXES HAVE BEEN PAID ON CIGARETTES AND TOBACCO PRODUCTS, NO FURTHER TAX IS REQUIRED; TO AMEND SECTION 12-21-780, AS AMENDED, RELATING TO TAX ON TOBACCO PRODUCTS SO AS TO EXPRESSLY INCLUDE CIGARETTES; TO AMEND SECTION 12-21-800, AS AMENDED, RELATING TO THE DEFINITION OF TOBACCO PRODUCTS, SO AS TO DELETE CERTAIN CROSS REFERENCES; AND TO REPEAL SECTION 12-21-610, RELATING TO LIABILITY FOR TAX ON THE SALE OF TOBACCO, AMMUNITION, AND PLAYING CARDS; TO REPEAL SECTION 12-21-750, RELATING TO CERTAIN RETAIL DEALERS FURNISHING DUPLICATE INVOICES; TO REPEAL SECTION 12-21-770, RELATING TO LIABILITY FOR TAX ON THE SALE AND DISTRIBUTION OF CERTAIN ITEMS; TO REPEAL SECTION 12-21-810, RELATING TO THE DEFINITION OF DISTRIBUTOR OF TOBACCO PRODUCTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-830. (A) The taxes imposed by the provisions of this article, except as otherwise provided, are due and payable in monthly installments by the twentieth day of the month following the month in which the tax accrues. The department may permit the filing of returns every twenty-eight days. These returns must be filed within twenty days following the period covered by the return. A return is filed timely if it is mailed and has a postmark dated on or before the date the return is required by law to be filed.
(B) By the twentieth day of each month, a person liable for taxes pursuant to this article shall render to the department, on a form prescribed by it, a true and correct statement showing, by location, the quantity of all cigarettes and the quantity and wholesale price of all tobacco products.
(C) At the time of making the monthly report, the person shall compute the taxes due and pay to the department that amount.
(D) Sales invoices of resident or nonresident persons liable for the tax must indicate payment of the tax on cigarettes or other tobacco products with the wording 'South Carolina Tax Paid'."
SECTION 2. Section 12-21-660 of the 1976 Code, as last amended by act 181 of 1993, is further amended to read:
"Section 12-21-660. (A) Every A person engaged in the business of purchasing, selling, or distributing cigars, cheroots, stogies, cigarettes, snuff or smoking or chewing or tobacco products at wholesale, retail, or through vending machines within the State, and all a cigarette, cigar and tobacco product manufacturers' products manufacturer's sales representatives representative who conduct conducts business in this State shall file with the Department of Revenue an application for a license permitting him to engage in or conduct such the business. When such the business is conducted at two or more than one separate places place, a separate license for each place of business shall be is required. A ,except that a person whose business is conducted through vending machines needs to need obtain only one license, but shall maintain an up-to-date list of the location of each vending machine operated under this the license, and each manufacturer's sales representative needs to need obtain only one license. The provisions of this section shall do not apply to persons who own and stock vending machines for use on their own premises.
(B) Nothing in this section shall be construed as requiring requires a license for the privilege of buying, selling, or distributing leaf tobacco nor shall this section apply applies to churches, schools, or charitable organizations operating booths at state, county, or community fairs or to school or church entertainments."
SECTION 3. Section 12-21-735 of the 1976 Code, as last amended by Act 239 of 1996, is further amended to read:
"Section 12-21-735. (A) Each person or distributor of cigarettes A person purchasing, selling, or distributing cigarettes or tobacco products taxable under this article, first upon receiving untaxed cigarettes or tobacco products for sale or distribution in this State, is subject to the tax imposed in Section 12-21-620. Each distributor person required to pay the tax shall make a report to the department, in the form the department prescribes, of all cigarettes or tobacco products sold or disposed of in this State, and pay taxes due thereon not later than the twentieth day of the month next succeeding after the month of the sale or disposition. However, any a person or distributor making shipments of cigarettes or tobacco products to retail locations in and out of this State shall apply to the department for a license which enables them him to purchase cigarettes or tobacco products free of tax, and report and pay tax as provided in this section on sales of cigarettes and tobacco products sold to locations in this State.
(B) A tax is levied upon the sale or possession for sale of cigarettes or tobacco products for use or consumption by a person, and upon receiving cigarettes or tobacco products for use or consumption within this State the person is subject to the tax at the rate set in Section 12-21-620. This tax does not apply to cigarettes and tobacco products upon which the tax has been paid.
(C) The department shall require bonds or statements of financial stability satisfactory to the department to cover possible losses resulting from failure to remit taxes due.
(D) When the return required by this section is timely filed and the taxes shown to be due are paid by the date specified in this section, the person or distributor may deduct three and one-half percent of the tax due."
SECTION 4. Section 12-21-760 of the 1976 Code is amended to read:
"Section 12-21-760. It is the intent of this article to require all manufacturers within this State, wholesale dealers, jobbers, distributors, and retail dealers to affix the stamps provided for in this article to taxable commodities, but when the stamps have been affixed as required in this article no further or other stamp shall be required under the provisions of this chapter regardless of how often such articles may be sold or resold within this State to remit the tax in this article, except that when the tax in this article has been paid once on cigarettes or tobacco products, no further tax is required."
SECTION 5. Section 12-21-780 of the 1976 Code, as last amended by Act 239 of 1996, is further amended to read:
"Section 12-21-780. Every distributor A person required to remit the tax on cigarettes and tobacco products, on or before shall file, by the twentieth day of each month, shall file with the South Carolina Department of Revenue a return on forms to be prescribed and furnished by the department showing the quantity of cigarettes and the quantity and wholesale price of all tobacco products transported or caused to be transported into the State by him or manufactured or fabricated in the State for sale in this State. Every distributor A person authorized by the department to make returns and pay the tax on cigarettes and tobacco products sold, shipped, or delivered by him to any a person in the State shall file a return showing the quantity and wholesale price of all products so sold, shipped, or delivered during the preceding calendar month. These returns must contain such further information as the department may require requires. Every distributor The person shall pay to the department, with the filing of the return, the tax imposed under this article on cigarettes and tobacco products for the month imposed under this article. When the distributor or dealer person files the return and pays the tax within the time specified in this section, he may deduct therefrom three and one-half percent of the tax due."
SECTION 6. Section 12-21-800 of the 1976 Code, as last amended by act 239 of 1996, is further amended to read:
"Section 12-21-800. As used in Sections 12-21-620 and 12-21-780 this article, 'tobacco products' means cigars, cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco, snuff, snuff flour, cavendish, plug and twist tobacco, fine-cut, and other chewing tobacco, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in a manner to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing or smoking, but does not include cigarettes."
SECTION 7. Sections 12-21-610, 12-21-750, 12-21-770, and 12-21-810 of the 1976 Code are repealed.
SECTION 8. This act is effective with respect to sales made on and after the first day of the month following the month in which the act is approved by the Governor.