Current Status Bill Number:647 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970415 Primary Sponsor:Leventis All Sponsors:Leventis, Peeler, Martin, Alexander, McConnell, Leatherman, Ryberg, O'Dell, Holland, Land, Setzler, Fair, Wilson, Ravenel, Gregory, McGill, Elliott, Giese and Rose Drafted Document Number:dka\4201mm.97 Companion Bill Number:4704 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Sales and use tax, credit provided on uncollectible amounts; Taxation
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ Senate 19970415 Introduced, read first time, 06 SF referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND SECTION 12-36-90, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "GROSS PROCEEDS OF SALES" FOR PURPOSES OF THE STATE SALES AND USE TAX, SO AS TO EXEMPT FROM THAT DEFINITION THE SALES PRICE ON SALES WHICH ARE UNCOLLECTIBLE, TO PROVIDE FOR CREDIT FOR TAXES PAID ON UNCOLLECTIBLE AMOUNTS, AND TO PROVIDE FOR LATER PAYMENT OF TAXES ON AMOUNTS SUBSEQUENTLY COLLECTED.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-90(2) of the 1976 Code, as last amended by Act 431 of 1996, is further amended by adding an appropriately lettered item at the end to read:
"( ) the sales price of property on sales which are actually charged off as bad debts or uncollectible accounts for federal income tax purposes. A taxpayer who pays the tax on the unpaid balance of an account which has been found to be worthless and is actually charged off for federal income tax purposes may take credit for the tax paid on a return filed pursuant to this chapter, except that if an amount charged off is later paid in whole or in part to the taxpayer, the amount paid must be included in the first return filed after the collection and the tax paid."
SECTION 2. This act takes effect upon approval by the Governor.