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Current Status Bill Number:View additional legislative information at the LPITS web site.3570 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19990218 Primary Sponsor:Robinson All Sponsors:Robinson, D. Smith, Simrill, Vaughn, Kirsh, Harrison, Moody-Lawrence, Tripp, Walker and Woodrum Drafted Document Number:l:\council\bills\kgh\15287htc99.doc Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Coin-operated devices, video games, Gambling; tax imposed on for school districts, sales tax on food, Revenue History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 19990218 Introduced, read first time, 30 HWM referred to Committee Versions of This Bill
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-2777 SO AS TO IMPOSE A TAX EQUAL TO NINE AND EIGHT-TENTHS PERCENT ON THE GROSS MACHINE INCOME OF VIDEO GAMES WITH A FREE PLAY FEATURE, TO PROVIDE FOR ITS REPORTING, PAYMENT, AND COLLECTION AND FOR THE USE OF THE REVENUES OF THE TAX, INCLUDING SOCIAL SERVICES FOR COMPULSIVE GAMBLERS, REVENUES TO OFFSET A SALES TAX EXEMPTION ON FOOD, AND FOR PUBLIC SCHOOL CONSTRUCTION; BY ADDING SECTION 12-21-2800 SO AS TO ESTABLISH THE VIDEO GAMES REGULATION AND ENFORCEMENT ADVISORY COMMITTEE; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT FROM SALES TAX FOOD WHICH MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2777. (A) A tax at the rate of nine and eight-tenths percent is imposed on the gross machine income derived from a machine licensed pursuant to Section 12-21-2720(A)(3).
(B) The tax is due and payable on a monthly basis, on or before the twentieth day of the month, and the person liable for the tax on the due date shall make a return to the department, in a form it prescribes, showing the total cash in for the previous month and remit the tax with it.
(C) The person making the report required pursuant to Section 12-21-2776(B) is liable for the tax.
(D) Enforcement and collection of this tax are as provided in Chapter 54 of this title.
(E) Twenty-five million dollars of the revenue in a fiscal year of the tax imposed by this section must be credited to the general fund of the State and used only to provide services to treat compulsive gamblers and to ameliorate the social ills caused by compulsive gambling. These services may be provided through existing state social service agencies or by means of contracts awarded to private nonprofit providers, or both, in the manner that the Video Games Regulation and Enforcement Advisory Committee shall recommend. Fees for these services must be charged on an 'ability to pay' basis, and any fees collected must be used to provide the same services. If the balance of the revenue after deducting the amount required for the compulsive gambling programs is insufficient to offset revenues not collected because of the sales tax exemption for food, the twenty-five million dollars is reduced accordingly. If the revenue is sufficient to provide full funding for the compulsive gambling programs and to offset all revenues not collected because of the food sales tax exemption, then any excess must be used for public school construction and renovations according to the distribution formula provided in Section 59-21-320. The revenues of the tax imposed by this section used to offset the sales tax exemption on food are deemed sales tax revenues and must be used in the manner provided by law for the use of sales tax revenues, including the proportion of such revenues required to be credited to the Education Improvement Act Fund."
B. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) food items eligible for purchase with United States Department of Agriculture food coupons, not including restaurant meals."
C. This section takes effect July 1, 1999.
SECTION 2. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2800. There is created the Video Games Regulation and Enforcement Advisory Committee constituted as follows:
(1) three members appointed by the Speaker;
(2) three members appointed by the President Pro Tempore of the Senate;
(3) a chairman and no more than two additional members appointed by the Governor; and
(4) the director of the Department of Revenue and the chief of the State Law Enforcement Division, both of whom shall serve ex officio and without a vote.
Members appointed by the Speaker and the President Pro Tempore may include members of their respective bodies, and any member so appointed serves ex officio. Appointed members shall serve for terms coterminous with those of their appointing authority. Members shall serve without compensation but are allowed the mileage, subsistence, and per diem allowed members of state boards, committees, and commissions. Expenses of members appointed by the Speaker and President Pro Tempore must be paid from approved accounts of the house of their appointing authority, and the expenses of gubernatorial appointees must be paid from funds appropriated for the Governor's Office. Staff for the committee must be provided by the Department of Revenue.
The committee shall advise the Governor, General Assembly, Department of Revenue, South Carolina Law Enforcement Division, and the Attorney General on matters of regulations and enforcement issues arising from the operation of machines in this State and on appropriate services for compulsive gamblers and the methods of providing such services. All proposed regulations, executive orders, and policy or procedural changes that affect machines or providing services for compulsive gamblers must be submitted to the committee for review and comment before they may be pursued by the appropriate agency. The committee on its own motion may recommend regulatory, enforcement, and social service policies and may conduct public hearings in the course of performing its duties. The committee shall report its activities in an annual report to the General Assembly, the Governor, the director of the Department of Revenue, the chief of the South Carolina Law Enforcement Division, and the Attorney General."
SECTION 3. Except where otherwise stated, this act takes effect upon approval by the Governor.
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