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Bill 125

                    Current Status

Bill Number:                      125
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  19990112
Primary Sponsor:                  Passailaigue
All Sponsors:                     Passailaigue, McConnell, Elliott, Wilson, 
                                  Russell, Rankin, Reese
Drafted Document Number:          l:\s-res\elp\001inte.efd.doc
Residing Body:                    Senate
Current Committee:                Finance Committee 06 SF
Subject:                          Commerce on Internet, interactive 
                                  computer service; state policy against 
                                  government interference with; Tax Freedom Act


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  19990112  Introduced, read first time,           06 SF
                  referred to Committee
Senate  19981118  Prefiled, referred to Committee        06 SF


                             Versions of This Bill

TO AMEND CHAPTER 2 OF TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL PROVISIONS REGARDING TAXATION, BY ADDING SECTION 12-2-80 SO AS TO ESTABLISH A STATE POLICY AGAINST STATE AND LOCAL GOVERNMENT INTERFERENCE WITH COMMERCE ON THE INTERNET OR INTERACTIVE COMPUTER SERVICES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. This act may be cited as the "Internet Tax Freedom Act."

SECTION 2. Chapter 2, Title 12 of the 1976 Code is amended by adding:

"Section 12-2-80. (A) Except as otherwise provided in this section, no state agency may attempt to collect a tax and no political subdivision may impose, assess, or attempt to collect a tax, directly or indirectly, on:

(1) the Internet or interactive computer services; or

(2) the use of the Internet or interactive computer services.

(B) Subsection (A):

(1) does not apply to taxes imposed on or measured by net income derived from the Internet or interactive computer services;

(2) does not apply to fairly apportioned business license taxes applied to businesses having a business location in the taxing jurisdiction; and

(3) does not affect the state's or a political subdivision's authority to impose a sales or use tax on sales or other transactions effected by use of the Internet or interactive computer services if:

(a) the tax is the same as the tax generally imposed and collected by the State or political subdivision thereof on interstate sales or transactions effected by mail order, telephone, or other remote means within its taxing jurisdiction; and

(b) the obligation to collect the tax from sales or other transactions effected by use of the Internet or interactive computer services is imposed on the same person or entity as in the case of sales or transactions effected by mail order, telephone, or other remote means.

(C) For purposes of this section:

(1) The terms 'Internet' and 'interactive computer service' have the meaning given such terms by paragraphs (1) and (2), respectively, of section 230(e) of the Communications Act of 1934 (47 U.S.C. 230(e)).

(2) The term 'tax' includes any tax, license, or fee that is imposed by any governmental entity, and includes the imposition on the seller of an obligation to collect and remit a tax imposed on the buyer."

SECTION 3. This act takes effect upon approval by the Governor.

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