Current Status Bill Number:635 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970410 Primary Sponsor:Leatherman All Sponsors:Leatherman Drafted Document Number:kgh\15082htc.97 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Sales and use tax, local option; maximum exemptions, machinery references; Taxation
Body Date Action Description Com Leg Involved
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Senate 19970410 Introduced, read first time, 06 SF
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND SECTION 4-10-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RATE OF AND EXEMPTIONS FROM THE LOCAL SALES AND USE TAX, SO AS TO EXEMPT FROM THIS TAX ALL ITEMS SUBJECT TO THE MAXIMUM STATE SALES AND USE TAX; TO AMEND SECTION 12-36-2110, AS AMENDED, RELATING TO MAXIMUM SALES TAX, SO AS TO DELETE REFERENCES TO INDIVIDUAL ITEMS OF MACHINERY USED FOR RESEARCH AND DEVELOPMENT, AND TO DEFINE "MACHINERY" FOR PURPOSES OF THE EXEMPTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 4-10-20 of the 1976 Code, as added by Act 317 of 1990, is amended to read:
"Section 4-10-20. A county, upon referendum approval, may levy a sales and use tax of one percent on the gross proceeds of sales within the county area which are subject to tax under Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The sale of items with a maximum tax levied in accordance with Section 12-36-2110(A), (B) and (C) and Article 17 of Chapter 36 of Title 12 are exempt from the local sales and use tax. The adopted rate also applies to tangible personal property subject to the use tax in Section 12-36-1310. Taxpayers required to remit taxes under Section 12-36-1310 shall identify the county or municipality in the county area in which tangible personal property purchased at retail is stored, used, or consumed in this State. Utilities are required to report sales in the county or municipality in which consumption of the tangible personal property occurs. A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county or municipality, shall report separately in his sales tax return the total gross proceeds from business done in each county or municipality."
SECTION 2. Section 12-36-2110(D) of the 1976 Code, as added by Act 110 of 1991, is amended to read:
"(D) The maximum tax levied pursuant to this chapter on the sale or use of each item of machinery for research and development is three hundred dollars. As used in this subsection, 'machinery for research and development' means machinery used directly and exclusively in research and development in the experimental or laboratory sense for new products, new uses for existing products, or for improving existing products. 'Machinery' includes machines and the parts of machines, attachments, and replacements used or manufactured for use on or in the operation of the machines and which are necessary to the operation of the machines and are customarily so used. To be eligible for the limitation imposed by this subsection, the machinery must be located in a separate facility devoted exclusively to research and development as defined in this subsection. The limitation does not extend to machinery used in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects."
SECTION 3. This act takes effect upon approval by the Governor.