South Carolina General Assembly
113th Session, 1999-2000

Download This Bill in Microsoft Word format

Bill 3359


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                      3359
Ratification Number:              193
Act Number:                       114
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  19990126
Primary Sponsor:                  Dantzler
All Sponsors:                     Dantzler, Bailey, R. Smith, Hinson, 
                                  Rodgers, Witherspoon, Chellis, McKay, McGee, 
                                  Law, Simrill, Rhoad, Littlejohn, Bowers
Drafted Document Number:          l:\council\bills\nbd\11097mm99.doc
Date Bill Passed both Bodies:     19990624
Date of Last Amendment:           19990624
Governor's Action:                S
Date of Governor's Action:        19990630
Subject:                          Property, Taxation, Mobile Homes, 
                                  Houseboats, Watercraft, Economic Budget 
                                  Advisors, Fuel, Political Subdivisions


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
------  19990721  Act No. A114
------  19990630  Signed by Governor
------  19990624  Ratified R193
House   19990624  Ordered enrolled for ratification
Senate  19990624  Conference Committee Report adopted    88 SCC
House   19990623  Conference Committee Report adopted    98 HCC
House   19990623  Conference powers granted,             98 HCC  Dantzler
                  appointed Reps. to Committee of                Robinson
                  Conference                                     Koon
Senate  19990623  Conference powers granted,             88 SCC  Land
                  appointed Senators to Committee                Martin
                  of Conference                                  Patterson
Senate  19990623  Insists upon amendment
House   19990623  Non-concurrence in Senate amendment
Senate  19990603  Amended, read third time, 
                  returned to House with amendment
Senate  19990602  Amended
Senate  19990601  Amended, read second time, 
                  ordered to third reading 
                  with notice of general amendments
Senate  19990526  Recalled from Committee,               06 SF
                  placed on the Calendar
Senate  19990506  Introduced, read first time,           06 SF
                  referred to Committee
House   19990505  Read third time, sent to Senate
House   19990504  Amended, read second time
House   19990428  Committee report: Favorable            30 HWM
House   19990126  Introduced, read first time,           30 HWM
                  referred to Committee


                             Versions of This Bill
Revised on April 28, 1999 - Word format
Revised on May 4, 1999 - Word format
Revised on May 26, 1999 - Word format
Revised on June 1, 1999 - Word format
Revised on June 2, 1999 - Word format
Revised on June 3, 1999 - Word format
Revised on June 24, 1999 - Word format

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A114, R193, H3359)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A MOTOR HOME ON WHICH THE INTEREST PORTION OF INDEBTEDNESS IS DEDUCTIBLE PURSUANT TO THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND RESIDENCE IS ALSO A PRIMARY OR SECOND RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAXATION IN THIS STATE AND IS CONSIDERED REAL PROPERTY RATHER THAN PERSONAL PROPERTY FOR PROPERTY TAX PURPOSES; TO AMEND CHAPTER 21, TITLE 50, RELATING TO EQUIPMENT AND OPERATION OF WATERCRAFT, BY ADDING SECTION 50-21-385 SO AS TO ALLOW INDEFINITE MOORING OF A HOUSEBOAT USED FOR HABITATION AT A PRIVATE DOCK SO LONG AS THE BOAT HAS A WASTE-HOLDING TANK WHICH IS PUMPED OUT AT AN APPROVED FACILITY AND TO INCLUDE CRIMINAL PENALTIES; TO AMEND SECTION 2-7-76, AS AMENDED, RELATING TO FISCAL IMPACT STATEMENTS FOR CERTAIN LEGISLATION, SO AS TO REQUIRE THAT THE BUDGET DIVISION OR ECONOMIC RESEARCH SECTION OF THE BUDGET AND CONTROL BOARD, RATHER THAN THE DEPARTMENT OF REVENUE, PREPARE THE STATEMENT OF ESTIMATED FISCAL IMPACT TO A COUNTY OR MUNICIPALITY; TO AMEND SECTION 12-6-40, AS AMENDED, RELATING TO APPLICATION OF THE INTERNAL REVENUE CODE TO STATE TAX LAWS, SO AS TO UPDATE THE REFERENCE TO THE INTERNAL REVENUE CODE AS AMENDED THROUGH 1998; TO AMEND SECTION 12-6-1120, AS AMENDED, RELATING TO COMPUTATION OF GROSS INCOME FOR STATE TAX PURPOSES, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 12-6-3410, RELATING TO CORPORATE INCOME TAX CREDIT FOR HEADQUARTERS, SO AS TO PROVIDE THAT THE NUMBER OF NEW JOBS AND THE COMPENSATION LEVEL BE DETERMINED USING THE MOST RECENT PER CAPITA INCOME DATA AVAILABLE; TO AMEND SECTION 12-6-3465, RELATING TO INCOME TAX CREDIT FOR A RECYCLING FACILITY, SO AS TO MAKE TECHNICAL CORRECTIONS TO CROSS REFERENCES; TO AMEND SECTION 12-16-20, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE ESTATE TAX ACT, SO AS TO UPDATE THE DEFINITION FOR INTERNAL REVENUE CODE; TO AMEND SECTION 12-20-20, RELATING TO CORPORATIONS REQUIRED TO FILE ANNUAL REPORTS WITH THE DEPARTMENT OF REVENUE, SO AS TO CHANGE A CROSS REFERENCE; TO AMEND SECTION 12-36-510, AS AMENDED, RELATING TO RETAIL LICENSES, SO AS TO DELETE THE REQUIREMENT THAT AN EVENT BE LISTED IN THE DEPARTMENT OF PARKS, RECREATION AND TOURISM CALENDAR TO QUALIFY AS A SPECIAL EVENT; TO AMEND SECTION 12-37-251, AS AMENDED, RELATING TO THE HOMESTEAD EXEMPTION FROM PROPERTY TAX, SO AS TO CHANGE THE ESTIMATING BODY FROM THE DEPARTMENT OF REVENUE TO THE ECONOMIC RESEARCH SECTION OF THE BUDGET AND CONTROL BOARD; TO AMEND SECTION 12-54-85, AS AMENDED, RELATING TO TIME OF APPLICATION FOR A TAX REFUND, SO AS TO ALLOW A CORPORATION NINETY DAYS, INSTEAD OF THIRTY, TO FILE A CLAIM; TO AMEND SECTION 12-56-20, AS AMENDED, 12-56-60, 12-56-110, AND CHAPTER 56, TITLE 12, ALL RELATING TO THE SETOFF DEBT COLLECTION ACT, SO AS TO INCLUDE AS A "CLAIMANT AGENCY" THE POLITICAL SUBDIVISION SUBMITTING A CLAIM THROUGH AN ASSOCIATION, TO DENY A PROPERTY RIGHT IN A REFUND UNTIL ALL CLAIMS ARE PAID, TO PERMIT THE DEPARTMENT OF REVENUE TO REGULATE THE PROCEDURES; BY ADDING SECTIONS 12-56-62, 12-56-63, 12-56-65, 12-56-67, AND 12-56-120 SO AS TO PROVIDE FOR NOTICE, PROTEST, HEARING, AND APPEALS PROCEDURES; TO AMEND ARTICLE 1, CHAPTER 54, TITLE 12, RELATING TO ENFORCEMENT AND COLLECTION OF TAXES, BY ADDING SECTIONS 12-54-43 AND 12-54-44 SO AS TO DESCRIBE SEPARATELY THE CIVIL AND CRIMINAL PENALTIES, RESPECTIVELY, IN THAT CONNECTION; TO AMEND SECTION 4-12-30, AS AMENDED, RELATING TO QUALIFICATION FOR A FEE IN LIEU OF PROPERTY TAXES, AND SECTION 4-29-67, AS AMENDED, RELATING TO A FEE IN LIEU OF TAXES FOR CERTAIN INDUSTRIAL DEVELOPMENT PROJECTS, BOTH SO AS TO DEEM REPLACEMENT PROPERTY AS THAT PROPERTY REPLACING THE OLDEST PROPERTY SUBJECT TO THE FEE; TO AMEND SECTION 4-29-68, AS AMENDED, RELATING TO SPECIAL SOURCE REVENUE BONDS, SO AS TO ADD CROSS REFERENCES; TO AMEND SECTION 11-1-10, AS AMENDED, RELATING TO OFFICIAL RECEIPTS FOR MONIES COLLECTED BY AN AGENT OF THE STATE, SO AS TO LIMIT DOCUMENTS SUBMITTED BY AGENTS OF THE DEPARTMENT OF REVENUE TO THOSE REQUIRED BY DEPARTMENT RULES; TO AMEND SECTION 12-6-50, AS AMENDED, RELATING TO PROVISIONS OF THE INTERNAL REVENUE CODE NOT ADOPTED BY THE STATE, SO AS TO ADD SECTION 6015 AS ADOPTED; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO JOB TAX CREDITS, SO AS TO REQUIRE THAT COUNTIES BE RANKED AND DESIGNATED USING PER CAPITA INCOME AND UNEMPLOYMENT RATE DATA FROM THE MOST RECENTLY AVAILABLE THREE YEARS, INCREASE THE CREDIT DESIGNATION FOR FIVE YEARS FOR A COUNTY WITH AN APPLICABLE MILITARY INSTALLATION OR FEDERAL FACILITY, PROVIDE FOR PASS THROUGH AND CARRY FORWARD OF CREDITS FOR MEMBERS OF SPECIFIED BUSINESS ENTITIES, AND PROVIDE THAT JOB TAX CREDIT BE DETERMINED FROM INCOME DATA AVAILABLE AS OF THE END OF THE TAXABLE YEAR IN WHICH THE JOBS ARE FILLED; TO AMEND SECTION 12-6-4910, RELATING TO PERSONS REQUIRED TO MAKE AN INCOME TAX RETURN, SO AS TO INCLUDE RETIREMENT INCOME DEDUCTION IN THE PROVISION; TO AMEND SECTIONS 12-6-5060, 12-6-5065, 12-6-5070, AND 12-6-5080, ALL RELATING TO TAXPAYER CHARITABLE CHECKOFFS, SO AS TO PROVIDE THAT THE DEPARTMENT OF REVENUE IS NOT SUBJECT TO THE SOLICITATION OF CHARITABLE FUNDS ACT FOR ITS ROLE IN ADMINISTERING THE CHECKOFFS; TO AMEND SECTION 12-21-2550, AS AMENDED, RELATING TO MONTHLY PAYMENT OF THE STAMP AND BUSINESS LICENSE TAX, SO AS TO PROVIDE THAT THE DEPARTMENT OF REVENUE MAY ESTIMATE TAX LIABILITY AND ISSUE A PROPOSED ASSESSMENT BASED ON THE BEST INFORMATION AVAILABLE UPON FAILURE TO FILE OR FILING AN INCORRECT RETURN; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM SALES AND USE TAX, SO AS TO INCLUDE LIQUEFIED PETROLEUM GAS; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO DISCLOSURE OF RECORDS BY THE DEPARTMENT OF REVENUE, SO AS TO ALLOW DISCLOSURE OF TAXPAYER NAME AND ADDRESS TO THE STATE RETIREMENT SYSTEM IN DISPOSITION OF AN INACTIVE ACCOUNT; TO AMEND SECTION 12-56-20, AS AMENDED, RELATING TO SETOFF DEBT COLLECTION SO AS TO INCLUDE THE UNITED STATES DEPARTMENT OF EDUCATION AS A CLAIMANT AGENCY AND TO CHANGE "INDIVIDUAL" TO "PERSON"; TO REPEAL SECTION 12-6-5590, RELATING TO APPLICATION FOR REVISION OF ASSESSED INCOME TAX, AND SECTIONS 12-54-35 AND 12-54-40 RELATING TO LIABILITIES OF SPOUSES AND CIVIL AND CRIMINAL TAX LIABILITIES AND PENALTIES; TO AMEND SECTION 12-4-320, AS AMENDED, RELATING TO PERMISSIVE POWERS OF THE DEPARTMENT OF REVENUE, SO AS TO PERMIT THE EXTENSION OF TIME FOR MAKING RETURNS, PAYMENTS, AND COLLECTIONS FOR A TAXPAYER IN HAZARDOUS MILITARY SERVICE; TO AMEND SECTION 12-60-470, RELATING TO A TAXPAYER'S REFUND CLAIM, SO AS TO MAKE THE CLAIM FOR REFUND PERSONAL TO THE TAXPAYER UNTIL THE REFUND IS AUTHORIZED; TO AMEND SECTION 12-44-60, RELATING TO REPLACEMENT PROPERTY FOR PURPOSES OF A SIMPLIFIED FEE IN LIEU OF TAX, SO AS TO DEEM IT REPLACES THE OLDEST PROPERTY SUBJECT TO THE FEE; TO AMEND SECTION 6-1-320, RELATING TO MILLAGE RATE INCREASES BY A LOCAL GOVERNING BODY, SO AS TO CHANGE THE REFERENCE FROM FISCAL YEAR TO CALENDAR YEAR; TO AMEND SECTIONS 12-10-50, AS AMENDED, 12-10-60, AND 12-10-100, ALL RELATING TO THE ENTERPRISE ZONE ACT OF 1995, SO AS TO MAKE IT DISCRETIONARY WITH THE ADVISORY COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT TO ENTER INTO A REVITALIZATION AGREEMENT WITH A QUALIFYING BUSINESS; TO AMEND SECTION 4-35-150, RELATING TO OWNERSHIP OF IMPROVEMENTS PURSUANT TO THE PUBLIC WORKS IMPROVEMENT ACT, SO AS TO PROVIDE THAT THE IMPROVEMENTS BE OWNED BY THE COUNTY, STATE, OR OTHER PUBLIC ENTITY AND THAT ASSESSMENTS MAY BE LEVIED ALSO FOR THE MANAGEMENT AND OPERATION OF THE IMPROVEMENT DISTRICT; AND TO PROVIDE VARIOUS EFFECTIVE DATES FOR THE DIFFERENT PROVISIONS.

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

Residential motor home deemed residence and real property for tax purposes

SECTION 1. The 1976 Code is amended by adding:

"Section 12-37-224. A motor home on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation in this State and is considered real property rather than personal property for property tax purposes."

Privately moored residential houseboat; penalty for improper waste handling

SECTION 2. Chapter 21 of Title 50 of the 1976 Code is amended by adding:

"Section 50-21-385. Houseboats used for habitation may be indefinitely moored at a private dock as long as the houseboat has a waste-holding tank. Waste pump-out must be done at an approved pump-out facility. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not less than five hundred dollars or imprisonment for thirty days, or both."

Technical tax and revenue provisions; setoff debt collection

SECTION 3. A. Section 2-7-76 of the 1976 Code, as last amended by Section 115, Part II, Act 497 of 1994, is further amended to read:

"Section 2-7-76. (A) The chairman of the legislative committee to which a bill or resolution was referred shall direct the Budget Division or the Economic Research Section of the Budget and Control Board, as appropriate, to prepare and affix to it a statement of the estimated fiscal or revenue impact and cost to the counties and municipalities of the proposed legislation before the legislation is reported out of that committee if a bill or resolution:

(1) requires a county or municipality to expend funds allocated to the county or municipality pursuant to Chapter 27 of Title 6;

(2) is introduced in the General Assembly to require the expenditure of funds by a county or municipality;

(3) requires the use of county or municipal personnel, facilities, or equipment to implement a general law or regulations promulgated pursuant to a general law; or

(4) relates to taxes imposed by political subdivisions.

(B) A revised estimated fiscal or revenue impact and cost statement must be prepared at the direction of the presiding officer of the House of Representatives or the Senate by the Budget Division or Economic Research Section of the Budget and Control Board before third reading of the bill or resolution, if there is a significant amendment to the bill or resolution.

(C) For purposes of this section, political subdivision means a county, municipality, school district, special purpose district, public service district, or consolidated political subdivision."

B. Section 12-6-40(A) of the 1976 Code, as last amended by Act 268 of 1998, is further amended to read:

"(A) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1998, and includes the effective date provisions contained therein."

C. Section 12-6-1120(8) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(8) Each partner in the Palmetto Seed Capital Fund Limited Partnership (Fund) established pursuant to Section 41-44-60 shall exclude from South Carolina gross income seventy-five percent of the partner's proportionate share of income the fund derives from a South Carolina business which is either:

( i) established and operated in a least developed county as defined in Section 12-6-3360; or

(ii) invested in agriculture, aquaculture, or a related business or in a business created by a socially or economically disadvantaged individual as defined in 13 Code of Federal Regulations, Sections 124.105(A) and 124.106 (1987)."

D. Section 12-6-3410(D)(2) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(2) The establishment, expansion, or addition of a corporate headquarters or research and development facility must result in:

(a) the creation of at least seventy-five new full-time jobs performing either:

( i) headquarters related functions and services; or

(ii) research and development related functions and services.

The jobs must have an average cash compensation level of more than one and one-half times the per capita income of this State based on the most recent per capita income data available as of the end of the taxpayer's taxable year in which the jobs are filled; and

(b) an average South Carolina employee cash compensation level for all employees in this State of more than twice the per capita income in the State based on the most recent per capita income data available as of the end of the taxpayer's taxable year in which the jobs are filled."

E. Section 12-6-3465 of the 1976 Code, as added by Act 32 of 1995, is amended to read:

"Section 12-6-3465. A taxpayer who is constructing or operating a qualified recycling facility as defined in Section 12-6-3460 is entitled to credits in the amount of all funds collected as permitted in Section 12-10-80, which credits can be used to reduce the taxpayer's corporate income tax imposed by Section 12-6-530, sales or use tax imposed by the State or any political subdivision of the State, corporate license fees imposed by Section 12-20-50 or any tax similar to these taxes. Any unused credits may be carried forward to subsequent taxable years until such credits are exhausted."

F. Section 12-16-20(5) of the 1976 Code, as last amended by Act 361 of 1992, is further amended to read:

"(5) 'Internal Revenue Code' means the Internal Revenue Code as described in Section 12-6-40(A)."

G. Section 12-20-20(A) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(A) Except for those corporations described in Section 12-20-110, every domestic corporation, every foreign corporation qualified to do business in this State, and any other corporation required by Section 12-6-4910 to file income tax returns shall file an annual report with the department."

H. The third paragraph of Section 12-36-510(C) of the 1976 Code, as last amended by Act 383 of 1994, is further amended to read:

"'Special event' means a promotional show, trade show, fair, festival, or carnival for which an admissions fee is required for entering the event. In addition, the event must be operated for a period of less than twelve consecutive days."

I. Section 12-37-251(F) of the 1976 Code, as last amended by Section 29C, Part II, Act 419 of 1998, is further amended to read:

"(F) The exemption allowed by this section is conditional on full funding of the Education Finance Act and on an appropriation by the General Assembly each year reimbursing school districts an amount equal to the Economic Research Section of the Budget and Control Board estimate of total school tax revenue loss resulting from the exemption in the next fiscal year."

J. The second paragraph of Section 12-54-85(D) of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"Notwithstanding any restrictions on filing a claim for refund provided in subsection (F) below, a corporation may file a claim for refund resulting from an overpayment due to changes in taxable income made by the Internal Revenue Service within ninety days from the date the Internal Revenue Service changes the taxable income."

K. 1. Section 12-56-20(1) of the 1976 Code, as last amended by Section 55A, Part II, Act 419 of 1998, is further amended to read:

"(1) 'Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision, South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 31, and the Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapters 111, 113, or 115 of Title 59. 'Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members, other political subdivisions, or other claimant agencies as defined in this item. A political subdivision who submits a claim through an association is a claimant agency for the purpose of the notice and appeal provisions and other requirements of this chapter."

2. Section 12-56-60 of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"Section 12-56-60. (A) A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the department in writing and supply information the department determines necessary to identify the debtor whose refund is sought to be set off. A request for setoff may be made only after the claimant agency has notified the debtor of its intention to cause the debtor's refund to be set off not less than thirty days before the claimant agency's request to the department. The claimant agency promptly shall notify the debtor when the liability out of which the setoff arises is satisfied. Notification to the department and the furnishing of identifying information must occur on or before a date specified by the department in the year preceding the calendar year during which the refund would be paid. Additionally, subject to the notification deadline specified above, the notification is effective only to initiate setoff for claims against refunds that would be made in the calendar year subsequent to the year in which notification is made to the department.

(B) Upon receiving the certification of the claimant agency of the amount of the delinquent debt, the department shall determine if the debtor is due a refund. If the debtor is due a refund of more than twenty-five dollars, the department shall set off the delinquent debt against the amount of the refund in excess of twenty-five dollars and transfer the amount set off to the claimant agency. The department may retain an amount not to exceed twenty-five dollars of each refund set off to defray its administrative expenses. No apportionment is required in cases of refunds resulting from filing joint returns. A person has no property right or property interest in a refund until all amounts due the State and claimant agencies are paid. The department shall consider any delinquent debt and debtor list provided by a claimant agency as correct and the department is not liable for a wrongful or improper setoff. "

3. Chapter 56 of Title 12 of the 1976 Code is amended by adding:

"Section 12-56-62. The notice of intention to set off must be given by mailing the notice, with postage prepaid, addressed to the debtor at the address provided to the claimant agency when the debt was incurred or at the debtor's last known address. The giving of the notice by mail is complete upon the expiration of thirty days after deposit of the notice in the mail. A certification by the claimant agency that the notice has been sent as required by this section is presumptive proof that the requirements as to notice are met, even if the notice actually has not been received by the debtor. The notice must include a statement of appeal procedures available to the debtor, substantially as follows:

'According to our records, you owe the (claimant agency) a debt in the amount of (amount of the debt) for (type of debt) . You are hereby notified of the (claimant agency's) intention to submit this debt to the South Carolina Department of Revenue to be set off against your individual income tax refund. Pursuant to the Setoff Debt Collection Act, this amount, plus all costs, will be deducted from your South Carolina individual income tax refund unless you file a written protest within thirty days of the date of this notice. If you file a joint return with your spouse, this amount will be deducted from the total joint refund without regard to which spouse incurred the debt or actually withheld the taxes. The protest must contain the following information:

(1) your name;

(2) your address;

(3) your social security number;

(4) the type of debt in dispute; and

(5) a detailed statement of all the reasons you disagree or dispute the debt.

The original written protest must be mailed to the (claimant agency) at the following address:

(address of the entity requesting the setoff).'

Section 12-56-63. (A) A debtor who protests the debt shall file a written protest with the claimant agency at the address provided in the claimant agency's notification of intention to set off. The protest must be filed within thirty days of the date of the notice of intention to set off and must contain the debtor's name, address, and social security number, identify the type of debt in dispute, and give a detailed statement of all the reasons which support the protest. The requirements of this section are jurisdictional.

(B) An association defined as a political subdivision in Section 12-56-20(1) may contract with another political subdivision for the processing of debts to be submitted to the department. These services may be funded through an administrative fee. The association is exempt from the notice and appeal procedures of this chapter. The entity responsible for the notice and hearing requirements of this chapter is the political subdivision which has submitted its claim through the association or governmental entity which has submitted it directly to the department.

Section 12-56-65. (A) Before submitting a debt to the department, the claimant agency shall appoint a hearing officer to hear a protest of a debtor. This hearing officer is vested with the authority to decide a protest in favor of either the debtor or the claimant agency. The claimant agency shall certify to the department, on a form prescribed by the department, that a hearing officer has been appointed and shall inform the department of the name, address, and telephone number of the hearing officer. If this hearing officer is unable to serve at any time, the claimant agency shall appoint another hearing officer.

(B) Upon receipt of a notice of protest, the claimant agency shall notify the department that a protest has been received and shall hold an informal hearing at which the debtor may present evidence, documents, and testimony to dispute the debt. The claimant agency shall notify the debtor of the date, time, and location of the informal hearing. At the conclusion of the informal hearing, the hearing officer shall render his determination. Upon receipt of a sworn certification from the hearing officer that he held an informal hearing and ruled in favor of the claimant agency, the department may proceed with the setoff, regardless of a subsequent appeal by the debtor.

(C) A debtor may seek relief from the hearing officer's determination by requesting, within thirty days of the determination, a contested case hearing before the Administrative Law Judge Division. A request for a hearing before the Administrative Law Judge Division must be made in accordance with its rules.

(D) If a setoff is made and the determination of the hearing officer in favor of the claimant agency is later reversed, the claimant agency shall refund the appropriate amount to the taxpayer. If the claimant agency is found to be entitled to no part of the amount set off, it shall refund the entire amount plus the administrative fee retained by the department. That portion of the refund reflecting the administrative fee must be paid from claimant agency funds. If the claimant agency is found to be entitled to a portion of the amount set off, it is not required to refund the administrative fee retained by the department.

(E) If a refund is retained in error, the claimant agency shall pay to the taxpayer interest calculated as provided in Section 12-54-25 from the date provided by law after which interest is paid on refunds until the appeal is final, except that interest does not accrue when the claimant agency is the Office of Child Support Services of the South Carolina Department of Social Services.

(F) If the claimant agency determines that money has been erroneously or illegally set off, the claimant agency, in its discretion, may refund the amount of the setoff, even if the debtor does not file a protest.

(G) A setoff may not be contested more than one year after the date the setoff was made. The date of the setoff must be conclusively determined by the department. This provision must be construed as a statute of repose and not as a statute of limitation.

Section 12-56-67. This section does not create a right to jury trial where one does not already exist. Where a debtor otherwise is entitled to have a jury determine the issue of indebtedness, that right is preserved specifically. If a right to a jury trial already exists and the debtor wishes to exercise that right, the debtor is not required to request a contested case hearing before the Administrative Law Judge Division but instead must file a summons and complaint in the Court of Common Pleas and serve the pleadings on the claimant agency within thirty days from the date of the hearing officer's determination. The summons and complaint must name the claimant agency as a defendant and the allegations of the complaint must contest the debt and any potential setoff.

Section 12-56-120. The department is exempt from the notice and appeal procedures of this chapter. The appeal procedures for the setoff of any debt owed to the department is governed by the provisions of Chapter 60 of Title 12 which provides the sole and exclusive remedy for these procedures."

4. Section 12-56-110 of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"Section 12-56-110. The department may promulgate regulations and prescribe forms and procedures necessary to implement this chapter."

5. All liabilities incurred and rights accrued before the effective date of this section are unaffected by the provisions of this section.

6. Upon approval by the Governor, this section applies to a liability incurred or a right accrued on and after that date.

Penalties; replacement property; technical revisions; job tax credit; charitable checkoffs; exemptions, assessments, extensions, and refunds; claimant agency; disclosure; repeal; times effective

SECTION 4. A. Article 1, Chapter 54, Title 12 of the 1976 Code is amended by adding:

"Section 12-54-43. (A) Except as otherwise provided, the civil penalties imposed by this penalty section apply to every revenue or tax law of the State that provides for the filing with the department of a return or statement of the tax or the amount taxable.

(B) The penalties described in this section must be added to and become a part of and collected as the tax imposed by the revenue or tax laws of this State.

(C)(1) In the case of failure to file a return on or before the date prescribed by law, determined with regard to any extension of time for filing, there must be added to the amount required to be shown as tax on the return, a penalty of five percent of the amount of the tax if the failure is for not more than one month, with an additional five percent for each additional month or fraction of the month during which the failure continues, not exceeding twenty-five percent in the aggregate.

(2) In case of a failure to file a return of tax within sixty days of the date prescribed for filing the return, determined with regard to any extension of time for filing, the addition to tax must not be less than the lesser of one hundred dollars or one hundred percent of the amount required to be shown as tax on the return, except in those cases in which the tax owed is one hundred dollars or less.

(3) For the purpose of this subsection, the amount of tax required to be shown on the return must be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return.

(D) In case of failure to pay the amount shown as tax on any return on or before the date prescribed by law, determined with regard to any extension of time for paying, there must be added to the tax due a penalty of one-half of one percent of the amount of the tax if the failure is for not more than one month, with an additional one-half of one percent for each additional month or fraction of the month, during which the failure continues, not exceeding twenty-five percent in the aggregate.

(E) In case of failure to pay any amount of any tax required to be shown on a return which is not shown, including an assessment within ten days of the date of the notice and demand for payment, there must be added to the amount of tax stated in the notice and demand one-half of one percent of the amount of the tax if the failure is for not more than one month, with an additional one-half of one percent for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent in the aggregate.

(F)(1) If part of an underpayment of tax or part of a claim for refund of tax paid is due to negligence or disregard of regulations, there must be added to the tax an amount equal to the sum of five percent of the underpayment or claimed refund and an amount equal to fifty percent of the interest payable under Section 12-54-25.

(2) A portion of an underpayment attributable to fraud with respect to which a penalty is imposed under subsection (G) must not be considered under this subsection.

(3) For purposes of this subsection, 'negligence' includes a failure to make a reasonable attempt to comply with the provisions of this title, and 'disregard' includes careless, reckless, or intentional disregard.

(G)(1) If a part of an underpayment of tax required to be shown on a return is due to fraud, there must be added to the tax an amount equal to the sum of seventy-five percent of the portion of the underpayment which is attributable to fraud and an amount equal to fifty percent of the interest payable under Section 12-54-25 with respect to that portion for the period beginning on the last day prescribed by law for payment of the underpayment, determined without regard to any extension, and ending on the date of the assessment of the tax or, if earlier, the date of the payment of the tax.

(2) If the department establishes that a portion of an underpayment is attributable to fraud, the entire underpayment must be treated as attributable to fraud, except that portion of the underpayment which the taxpayer establishes is not attributable to fraud.

(3) In case of a joint return, this subsection applies to a spouse only if some part of the underpayment is due to the fraud of the spouse.

(4) If a penalty is assessed under this subsection for an underpayment of tax which is required to be shown on a return, a penalty relating to failure to file the return or pay tax may not be assessed with respect to the portion of the underpayment which is attributable to fraud.

(H) A person who must obtain a license or purchase stamps for identification purposes, and who fails to obtain or display the license properly, or to affix the stamps properly, or to comply with statutory provisions, is subject to a penalty of not less than fifty dollars nor more than five hundred dollars for each failure. For failure to obtain or display a license as prescribed in Sections 12-21-2720 and 12-21-2730, the penalty is fifty dollars for each failure to comply.

(I) A person:

(1) who files what purports to be a return of the tax imposed by a provision of law administered by the department but which:

(a) does not contain information on which the substantial correctness of the tax liability may be judged; or

(b) contains information that on its face indicates the liability is substantially incorrect; and

(2) whose conduct is due to:

(a) a position which is frivolous; or

(b) a desire, which appears on the purported return, to delay or impede the administration of state tax laws;

(3) is liable to a penalty of five hundred dollars. This penalty is in addition to all other penalties provided by law.

(J) Whenever it appears to an administrative law judge that proceedings before him have been instituted or maintained by the taxpayer primarily for delay or that the taxpayer's position in the proceedings is frivolous or groundless, damages in an amount not to exceed five thousand dollars must be awarded to the State in the administrative law judge's decision. These damages must be assessed at the same time as the deficiency, paid upon notice and demand from the department, and collected as a part of the tax.

Section 12-54-44. (A) Except as otherwise provided, the criminal penalties imposed by this section apply to every revenue or tax law of the State that provides for the filing with the department of a return or statement of the tax or the amount taxable.

(B)(1) A person who wilfully attempts in any manner to evade or defeat a tax or property assessment imposed by a title administered by the department or the payment of that tax or property assessment, in addition to other penalties provided by law, is guilty of a felony and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than five years, or both, together with the cost of prosecution.

(2) A person required by a provision of law administered by the department and who wilfully fails to collect, truthfully account for, and pay over any tax imposed by a provision of law, in addition to other penalties provided by law, is guilty of a felony and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than five years, or both, together with the cost of prosecution.

(3) A person required under any provision of law administered by the department and who wilfully fails to pay any estimated tax or tax, or who is required by any provision of law or by any regulation and who wilfully fails to make a return, keep records, or supply information, at the time or times required by law or regulation, in addition to other penalties provided by law, is guilty of a misdemeanor and, upon conviction, must be fined not more than ten thousand dollars, or imprisoned not more than one year, or both, together with the cost of prosecution.

(4) A person required by law or regulation to furnish a statement who wilfully furnishes a false or fraudulent statement in the manner, at the time, and showing the information required by law or regulation, is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than one year, or both.

(5) A person required to supply information to his employer under Chapter 8 of Title 12 who wilfully supplies false or fraudulent information or who wilfully fails to supply information which would require an increase in the tax to be withheld under Chapter 8, Title 12 is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars, or imprisoned not more than one year, or both. Offenses in this item are triable in magistrate's court.

(6)(a) A person is guilty of a felony and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than five years, or both, together with the cost of prosecution, if he:

( i) wilfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or

(ii) wilfully assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with a matter arising under those provisions of law administered by the department of a return, affidavit, claim, or other document which is fraudulent or is false as to any material matter, whether or not the falsity or fraud is with the knowledge or consent of the person authorized or required to present the return, affidavit, claim, or document.

(b) A person convicted of a crime described in subitem (a)(ii) is prohibited from preparing or assisting in the preparation of a tax return required to be filed under any title administered by the department. A person violating this prohibition is guilty of a felony, and, upon conviction, must be fined ten thousand dollars and imprisoned for at least five years without probation, parole, or suspension of sentence.

(c) A person who:

( i) wilfully removes, deposits, or conceals, or is concerned in removing, depositing, or concealing goods or commodities for which a tax is or must be imposed, or property upon which levying is authorized pursuant to law, with intent to evade or defeat the assessment or collection of any tax imposed by this provision of law administered by the department is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than three years, or both, together with the cost of prosecution;

( ii) in connection with the preparation of a tax return for another, the filing of a tax return, or the payment of a tax, receives money from the payment of any tax, receives money from the other person with the understanding that it is to be paid over to the department to discharge, in whole or in part, the other person's tax liability and wilfully fails to pay over the same to the department is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned for not more than three years, or both, for each offense together with the cost of prosecution; or

(iii) wilfully delivers or discloses to the department any list, return, account, statement, or other document known by him to be fraudulent or to be false as to a material matter, is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned for not more than one year, or both.

(C) A failure to deposit or pay taxes deducted and withheld pursuant to Article 5 of Chapter 8 subjects the withholding agent to a penalty of not less than ten dollars nor more than one thousand dollars. The penalty imposed by this item applies to failure to comply with the provisions of Section 12-54-250.

(D) A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and in addition may be fined not more than twenty-five thousand dollars."

B. Section 4-12-30(F)(2)(a) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(a) Replacement property does not have to serve the same function as the property it is replacing. Replacement property is deemed to replace the oldest property subject to the fee, whether real or personal, which is disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies for fee treatment provided in subsection (D)(2) only up to the original income tax basis of fee property it is replacing. More than one piece of replacement property can replace a single piece of fee property. To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the property which it is replacing, the excess amount is subject to payments as provided in Section 4-12-20. Replacement property is entitled to the fee payment for the period of time remaining on the fee period for the property which it is replacing."

C. Section 4-29-67(F)(2)(a) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(a) Replacement property does not have to serve the same function as the property it is replacing. Replacement property is deemed to replace the oldest property subject to the fee, whether real or personal, which is disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies for fee treatment provided in subsection (D)(2) only up to the original income tax basis of fee property it is replacing. More than one piece of replacement property can replace a single piece of fee property. To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the property which it is replacing, the excess amount is subject to payments as provided in Section 4-29-60. Replacement property is entitled to the fee payment for the period of time remaining on the twenty-year fee period for the property which it is replacing."

D. Section 4-29-68(F) of the 1976 Code, as added by Act 4 of 1995, is amended to read:

"(F) A county, municipality, or special purpose district that receives and retains revenues from a payment in lieu of taxes pursuant to Section 4-1-170, 4-12-30, 4-29-60, 4-29-67, or Chapter 44, Title 12 in which these revenues are derived in whole or in part from a redevelopment project area established pursuant to Title 31, Chapter 6 shall allocate these revenues in accordance with the ordinance of the municipality adopted pursuant to Section 31-6-70 as if these revenues remained ad valorem taxes. All fees collected in the redevelopment project area which are not subject to the ordinance of the municipality adopted pursuant to Section 31-6-70 become payments in lieu of taxes and the portion collected by the municipality may be pledged to secure special source revenue bonds issued by the municipality pursuant to Section 4-1-175 or this section."

E. Section 11-1-10 of the 1976 Code is amended to read:

"Section 11-1-10. It is unlawful for an officer of this State or his agent, employee, or servant to collect from a person any delinquent taxes, fine, or other money due the county or State without issuing to that person an official receipt showing the number, date, name of person, amount collected, and for what purpose. The officer, agent, employee, or servant shall keep a stub similar to the receipt and he shall turn it over at the end of each month to the county treasurer of the county in which the collections are made. The county treasurer shall check the amounts turned in to him against the stubs and issue a clearance card to the officer or his agent, employee, or servant showing all monies turned in according to the stubs. Any officer, agent, employee, or servant violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned not more than thirty days for each offense. An officer or employee of the Department of Revenue may turn in only those documents and reports as required by rules adopted and regulations promulgated by the director of the department."

F. Section 12-6-50(14) of the 1976 Code, as last amended by Act 431 of 1996, is further amended to read:

"(14) Sections 2001 through 7655, 7801 through 7871, and 8001 through 9602, except for Section 6015, and except for Sections 6654 and 6655 which are adopted as provided in Section 12-6-3910."

G. Section 12-6-3360(B) and (K) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(B) The department shall rank and designate the state's counties by December thirty-first each year using data from the South Carolina Employment Security Commission and the United States Department of Commerce. The counties are ranked using the last three years of available per capita income data and the last thirty-six months or three years of available unemployment rate data, with equal weight given to unemployment rate and per capita income as follows:

(1) The twelve counties with a combination of the highest unemployment rate and lowest per capita income are designated least developed counties.

(2) The twelve counties with a combination of the next highest unemployment rate and next lowest per capita income are designated under developed counties.

(3) The eleven counties with a combination of the next highest unemployment rate and the next lowest per capita income are designated moderately developed counties.

(4) The eleven counties with a combination of the lowest unemployment rate and the highest per capita income are designated developed counties. The designation by the department is effective for corporate taxable years which begin after the date of designation.

(5)(a) A county, any portion of which is located within twenty-five miles of the boundaries of an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), shall receive the next increased credit designation for five years beginning with the year in which the military installation or federal facility became an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), with the additional requirement that the military installation must have reduced employment on the installation of at least three thousand employees.

(b) In addition to the designation in subitem (a), a county in which an applicable military installation or applicable federal facility is located is allowed an additional increased credit designation for five years beginning with the year the installation or facility meets the requirements.

(c) Notwithstanding the designations in Section 12-6-3360, Laurens, Cherokee, and Union Counties shall qualify for the next increased credit designation.

(d) In a county where less than five percent of the work force is in manufacturing, the credit allowed is one tier higher than the credit for which the county would otherwise qualify.

(K)(1) An S corporation, limited liability company taxed as a partnership, or partnership that qualifies for a credit under this section may pass through the credit earned to each shareholder of the S corporation, partner of the partnership, or member of the limited liability company. For purposes of this subsection, limited liability company means a limited liability company taxed as a partnership.

(2)(a) The amount of the credit allowed a shareholder, partner, or member by this subsection is equal to the shareholder's percentage of stock ownership, partner's interest in the partnership, or member's interest in the limited liability company for the taxable year multiplied by the amount of the credit earned by the entity. This nonrefundable credit is allowed against taxes due under Section 12-6-510 or 12-6-530 and may not exceed fifty percent of the shareholder's, partner's, or member's tax liability under Sections 12-6-510 or 12-6-530.

(b) Notwithstanding subitem (a), the credit earned pursuant to this section by an S corporation owing corporate level income tax must be used first at the entity level. Only the remaining credit passes through to each shareholder.

(3) A credit claimed pursuant to this subsection but not used in a taxable year may be carried forward by each shareholder, partner, or member for fifteen years from the close of the tax year in which the credit is earned by the S corporation, partnership, or limited liability company. The entity earning the credit may not carry over credit that passes through to its shareholders, partners, or members."

H. Section 12-6-3360(M)(13) of the 1976 Code, as last amended by Act 432 of 1998, is further amended to read:

"(13) 'Qualifying service-related facility' means:

(a) an establishment engaged in an activity or activities listed under the Standard Industrial Classification (SIC) Code 80 according to the Federal Office of Management and Budget Standard Industrial Classification Manual, 1987 edition; or

(b) a business, other than a business engaged in legal, accounting, or investment services or retail sales, which has a net increase of at least:

( i) two hundred fifty jobs at a single location;

( ii) one hundred twenty-five jobs at a single location and the jobs have an average cash compensation level of more than one and one-half times the per capita income in the county where the jobs are located;

(iii) seventy-five jobs at a single location and the jobs have an average cash compensation level of more than twice the per capita income in the county where the jobs are located; or

(iv) thirty jobs at a single location and the jobs have an average cash compensation level of more than two and one-half times the per capita income in the county where the jobs are located.

A taxpayer shall use the most recent per capita income data available as of the end of the taxable year in which the jobs are filled. Determination of the required number of jobs is in accordance with the monthly average described in subsection (F)."

I. Section 12-6-4910(1)(a) and (b) of the 1976 Code, as added by Act 75 of 1995, is amended to read:

"(a) an individual not listed in (c) whose federal filing status is single, surviving spouse, or head of household who has gross income for the taxable year of at least the federal exemption amount plus the applicable basic standard deduction, plus any deduction the taxpayer qualifies for pursuant to Section 12-6-1170(B). If the individual is sixty-five or older, the standard deduction is increased as provided in Internal Revenue Code Section 63(c)(3) and 63(f)(1)(A).

(b) an individual not listed in (c) who files a joint return and whose combined gross income for the taxable year, is more than the sum of twice the exemption amount plus the applicable basic standard deduction if the individual and spouse had the same household at the close of the taxable year, plus any deduction the taxpayer qualifies for pursuant to Section 12-6-1170(B). If the individual or spouse is sixty-five or older, the standard deduction is increased as provided in Internal Revenue Code Section 63(c)(3) and 63(f)(1)."

J. Section 12-6-5060 of the 1976 Code, as added by Act 76 of 1995, is amended by adding at the end:

"(E) For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

K. Section 12-6-5065 of the 1976 Code, as added by Act 262 of 1996, is amended by adding at the end:

"(E) For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

L. Section 12-6-5070 of the 1976 Code, as added by Act 90 of 1995, is amended by adding at the end:

"(E) For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

M. Section 12-6-5080 of the 1976 Code, as added by Section 64A, Part II, Act 155 of 1997, is amended by adding at the end:

"(D) For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

N. Section 12-21-2550(B) of the 1976 Code, as last amended by Act 432 of 1998, is further amended to read:

"(B) If a person fails to make a true and correct return or fails to file the return, the department shall make an estimate of the tax liability from the best information available, and issue a proposed assessment for the taxes, including penalties and interest."

O. Section 12-36-2120(33) of the 1976 Code, as added by Section 74A, Part II, Act 612 of 1990, is amended to read:

"(33) electricity, natural gas, fuel oil, kerosene, LP gas, coal, or any other combustible heating material or substance used for residential purposes. Individual sales of kerosene or LP gas of twenty gallons or less by retailers are considered used for residential heating purposes;"

P. Section 12-54-240(B) of the 1976 Code, as last amended by Act 155 of 1997, is further amended by adding at the end:

"(20) submission of taxpayer names and home addresses to the director of the South Carolina Retirement System to effectuate the provisions of Section 9-1-1650 relating to the disposition of inactive accounts."

Q. Section 12-56-20(1) of the 1976 Code, as last amended by Section 55A, Part II, Act 419 of 1998, is further amended to read:

"(1) 'Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision, South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 31, the Internal Revenue Service, and the United States Department of Education. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapters 111, 113, or 115 of Title 59. 'Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members or other political subdivisions."

R. Section 12-56-20(3) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(3) 'Debtor' means a person having a delinquent debt or account with a claimant agency which has not been adjusted, satisfied, or set aside by court order, or discharged in bankruptcy."

S. Sections 12-6-5590, 12-54-35, and 12-54-40 of the 1976 Code are repealed.

T. Section 12-4-320(6) of the 1976 Code, as added by Act 516 of 1994, is amended to read:

"(6) for damage caused by war, terrorist act, or natural disaster or service with the United States Armed Forces or National Guard in or near a hazard duty zone, extend the date for filing returns, payments of taxes, collection of taxes, and conducting audits, and waive interest and penalties."

U. Section 12-60-470(C) of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"(C) Only the taxpayer legally liable for the tax may file a claim for refund or receive a refund, except that after the application of Section 12-60-490:

(1) the assignment of a refund may be made, but only after the department has authorized the refund and issued an order for the refund to the State Treasurer's office; or

(2) a person who acts as a collector and remitter of state taxes may claim a credit or refund of the tax collected, but only if the person establishes that he has paid the tax in question to the State, and

(a) repaid the tax to the person from whom he collected it; or

(b) obtained the written consent of the person from whom he collected the tax to the allowance of the credit or refund."

V. Section 12-44-60 of the 1976 Code, as added by Act 149 of 1997, is amended to read:

"Section 12-44-60. (A) The fee agreement may provide that property which is placed in service as a replacement for economic development property may become economic development property. This replacement property is not required to serve the same function as the economic development property it is replacing. Replacement property is deemed to replace the oldest property subject to the fee, whether real or personal, which is disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies as economic development property only to the extent of the original income tax basis of the economic development property which is being disposed of in the same property tax year. More than one piece of property can replace a single piece of property.

(B) To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the economic development property which it is replacing, the excess amount is subject to annual payments calculated as if the exemption for economic development property were not allowed. Replacement property is entitled to the fee payment for the period of time remaining during the exemption period for the economic development property which it is replacing.

(C) The new replacement property which qualifies for the fee provided in Section 12-44-50 is recorded using its income tax basis, and the fee is calculated using the millage rate and assessment ratio provided on the original economic development property. The fee payment for replacement property must be based on Section 12-44-50(A)(3) if the sponsor originally used an alternative payment method."

W. 1. Section 6-1-320(A) of the 1976 Code, as added by Act 138 of 1997, is amended to read:

"(A) Notwithstanding Section 12-37-251(E), a local governing body may increase the millage rate imposed for general operating purposes above the rate imposed for such purposes for the preceding tax year only to the extent of the increase in the consumer price index for the preceding calendar year. However, in the year in which a reassessment program is implemented, the rollback millage, as calculated pursuant to Section 12-37-251(E), must be used in lieu of the previous year's millage rate."

2. This section is effective for property tax years beginning after 1998.

X. The Department of Revenue may amend the 1999 Index of Taxpaying Ability, as defined in Section 59-20-20(3), for purposes of calculating the 1999 Index of Taxpaying Ability.

Y. This section takes effect upon approval by the Governor; and subsections B, C, and E are effective for property tax years beginning after 1998, subsections A, H, I, J, K, L, M, N, and R are effective for taxable years after 1998, and subsection P is effective July 1, 1999.

Enterprise zone revitalization agreements

SECTION 5. A. Section 12-10-50 of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"Section 12-10-50. To qualify for the benefits provided in this chapter, a business must be located within this State and satisfy the following criteria:

(1) it must be primarily engaged in a business of the type identified in Section 12-6-3360;

(2) the business shall provide a benefits package to full-time employees which includes health care;

(3) the business shall enter into a revitalization agreement which is approved by the council, except that no revitalization agreement is required for a qualifying business with respect to Section 12-10-80(D); and,

(4) the council shall determine that the negotiated incentives are appropriate for the project, and the council shall certify that the total benefits of the project exceed the costs to the public; and that the business otherwise fulfills the requirements of this chapter. No provision of this chapter must be construed to allow the council to negotiate a fee-in-lieu of property taxes agreement or approve job training or retraining."

B. Section 12-10-60 of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"Section 12-10-60. The council may enter into a revitalization agreement with each qualifying business with respect to the project. The terms and provisions of each revitalization agreement must be determined by negotiations between the council and the qualifying business. The decision to enter into a revitalization agreement with a qualifying business is solely within the discretion of the council and a qualifying business does not have a right of appeal from the council's decision. The revitalization agreement must set a date by which the qualifying business shall have completed the project. Within three months of the completion date, the qualifying business shall document the actual costs of the project in a manner acceptable to the council."

C. Section 12-10-100(A) of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"(A) The council may establish criteria for the determination and selection of qualifying businesses and the approval of revitalization agreements. These criteria may include and may give greatest weight to the creditworthiness of the business, the number, type, and quality of new jobs to be provided by the project to residents of this State, and the economic viability of the business. The council may include in its criteria requirements relating to the capital costs of, and projected employment to be produced by, projects eligible for benefits under this chapter and requirements relating to the employment of previously unemployed or underemployed persons.

With respect to each business and project, the council shall request the materials and make the inquiries necessary to determine whether the business and its proposed project satisfy the council's announced criteria and to conduct an adequate cost/benefit analysis with respect to the proposed project and the incentives proposed to be granted by the council with respect to the project. After a review of the relevant materials and completion of its inquires and analysis, the council may by resolution of its members designate an applicant business as a qualifying business and authorize the undertaking of its project according to the revitalization agreement. The decision to enter into a revitalization agreement with a qualifying business is solely within the discretion of the council and a qualifying business does not have a right of appeal from the council's decision."

D. Section 12-10-100 of the 1976 Code, as added by Act 25 of 1995, is amended by deleting subsection (E).

Improvement districts ownership and assessments

SECTION 6. Section 4-35-150 of the 1976 Code, as added by Act 99 of 1993, is amended to read:

"Section 4-35-150. The improvements as defined in Section 4-35-30 must be owned by the county, the State, or another public entity for the benefit of the citizens and residents of the improvement district or the entity owning the improvement, and at any time may be removed, altered, changed, or added to, as the governing body of the owner may determine except that during the continuance or maintenance of the improvements, the special assessments on property may be utilized for the preservation, operation, and maintenance of the improvements and facilities provided in the improvement plan, for the management and operation of the improvement district as provided in the improvement plan, and for payment of indebtedness incurred."

Time effective

SECTION 7. The provisions of Section 1 of this act take effect upon approval by the Governor and are applicable to property tax years beginning in 1999. The provisions of Section 2 take effect upon approval by the Governor.

Ratified the 24th day of June, 1999.

Approved the 30th day of June, 1999.

__________


This web page was last updated on Wednesday, December 9, 2009 at 9:14 A.M.