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Current Status Bill Number:View additional legislative information at the LPITS web site.4902 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20000412 Primary Sponsor:Robinson All Sponsors:Robinson Drafted Document Number:l:\council\bills\swb\5142mm00.doc Companion Bill Number:1318 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Taxation, local option sales and use, property assessments, exemptions; Motor carrier, Motor Vehicles, Registration History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20000418 Companion Bill No. 1318 House 20000412 Introduced, read first time, 30 HWM referred to Committee Versions of This Bill
TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL EXEMPTIONS FROM PROPERTY TAXES, SO AS TO INCLUDE THE DWELLING HOUSE OF A PERMANENTLY AND TOTALLY DISABLED VETERAN IF THE VETERAN OR HIS QUALIFYING SURVIVING SPOUSE FILES A CERTIFICATE OF DISABILITY WITH THE DEPARTMENT OF REVENUE; TO DEFINE "DWELLING HOUSE" FOR PURPOSES OF THAT EXEMPTION AS THE DOMICILE OF THE QUALIFYING PERSON AND TO INCLUDE THE DWELLING HOUSE HELD IN TRUST FOR A BENEFICIARY WHO WOULD QUALIFY OTHERWISE FOR THE EXEMPTION AND WHO USES THE DWELLING HOUSE AS HIS DOMICILE; TO AMEND SECTION 12-37-930, AS AMENDED, RELATING TO VALUATION OF PROPERTY FOR TAXATION, BY ALLOWING A MANUFACTURER WHO USES A CLASS 100 OR BETTER CLEAN ROOM AN ANNUAL DEPRECIATION ALLOWANCE OF TEN PERCENT INSTEAD OF ALLOWANCES TO WHICH IT OTHERWISE WOULD BE ENTITLED; TO REPEAL SECTIONS 12-43-280 AND 12-43-290 RELATING TO THE LIMITATION ON THE INCREASE IN AD VALOREM TAX AS A RESULT OF EQUALIZATION AND REASSESSMENT; TO AMEND SECTIONS 4-12-30, AS AMENDED, AND 12-44-130, BOTH RELATING TO THE MINIMUM INVESTMENT REQUIRED FOR QUALIFICATION FOR PAYMENT OF A FEE IN LIEU OF PROPERTY TAXES, SO AS TO DELETE SPECIFIC REFERENCES TO THE MINIMUM AMOUNT OF FIVE MILLION DOLLARS; TO AMEND CHAPTER 10, TITLE 4, RELATING TO LOCAL SALES AND USE TAX, BY ADDING SECTION 4-10-67 SO AS TO PROVIDE FOR THE DEPOSIT AND DISTRIBUTION OF LOCAL OPTION USE TAX FUNDS COLLECTED BY THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-37-2810, AS AMENDED, RELATING TO DEFINITION OF "MOTOR CARRIER" SO AS TO INCLUDE CERTAIN FARM VEHICLES; TO AMEND SECTION 12-37-2840, AS AMENDED, RELATING TO PROPERTY TAX RETURNS OF MOTOR CARRIERS, SO AS TO PROVIDE FOR PAYMENT OR APPEAL OF A PROPOSED ASSESSMENT ISSUED FOR FAILURE TO TIMELY FILE A RETURN OR PAY A TAX DUE; TO AMEND CHAPTER 37 OF TITLE 12, RELATING TO ASSESSMENT OF PROPERTY TAXES, BY ADDING SECTION 12-37-2842 SO AS TO PROVIDE FOR REGISTRATION AND FILING BY MOTOR CARRIERS AND TO REQUIRE THE DEPARTMENT OF MOTOR VEHICLES TO INFORM A MOTOR CARRIER OF REGISTRATION AND FILING REQUIREMENTS OF THE DEPARTMENT OF REVENUE AND TO SUPPLY FORMS; AND TO REPEAL SECTION 12-37-2845, RELATING TO PENALTIES FOR FAILURE OF A MOTOR CARRIER TO FILE A RETURN AND PAY TAX DUE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1A. Section 12-37-220(B)(1) and (2) of the 1976 Code, as last amended by Act 107 of 1997, is further amended to read:
"(1)(a) The dwelling house in which he resides and a lot not to exceed one acre of land owned in fee or for life, or jointly with a spouse, by any a veteran who is one hundred percent permanently and totally disabled from a service-connected disability, if the veteran or qualifying surviving spouse files a certificate, signed by the county service officer, of the total and permanent disability with the State Department of Revenue. The exemption is allowed the surviving spouse of the veteran and also is also allowed to the surviving spouse of a serviceman or law enforcement officer as defined in Section 23-6-400(D)(1) killed in action in the line of duty who owned the lot and dwelling house in fee or for life, or jointly with his spouse, so long as the spouse does not remarry, resides in the dwelling, and obtains by devise the fee or a life estate in the dwelling. A surviving spouse who disposes of the exempt dwelling and acquires another residence in this State for use as a dwelling house with a value no greater than one and one-half times the fair market value of the exempt dwelling may apply for and receive the exemption on the newly acquired dwelling, but no a subsequent dwelling of a surviving spouse is not eligible for exemption under pursuant to this item. The spouse shall inform the Department of Revenue of the change in address of the dwelling. The dwelling house is defined as a person's legal residence. To qualify for the exemption, the dwelling house must be the domicile of the person who qualifies for the exemption.
(b) When a trustee holds legal title to a dwelling for a beneficiary and the beneficiary is a person who qualifies otherwise for the exemption provided in subitem (a) and the beneficiary uses the dwelling as his domicile, the dwelling is exempt from property taxation in the same amount and manner as dwellings are exempt pursuant to subitem (a).
(2)(a) The dwelling house in which he resides and a lot not to exceed one acre of land owned in fee or for life, or jointly with his a or her spouse, by a paraplegic or hemiplegic person, or in trust for his or her benefit, is exempt from all property taxation provided the person furnishes satisfactory proof of his disability to the State Department of Revenue. The exemption is allowed to the surviving spouse of the person so long as the spouse does not remarry, resides in the dwelling, and obtains by devise the fee or a life estate in the dwelling. The dwelling house is defined as the person's legal residence. To qualify for the exemption, the dwelling house must be the domicile of the person who qualifies for the exemption. For purposes of this item, a hemiplegic person is a person who has paralysis of one lateral half of the body resulting from injury to the motor centers of the brain.
(b) When a trustee holds legal title to a dwelling for a beneficiary and the beneficiary is a person who qualifies otherwise for the exemption provided in subitem (a) and the beneficiary uses the dwelling as his domicile, the dwelling is exempt from property taxation in the amount and manner as dwellings are exempt pursuant to subitem (a)."
B. Section 12-37-930(34) of the 1976 Code, as added by Act 93 of 1999, is amended to read:
"(34) Class 100 or better as defined in Federal Standard 209E Clean Room Modules and Associated Mechanical Systems, Process Piping, Wiring, Environmental Systems, and Water Purification Systems Use of Clean Rooms ............... 10%
Includes waffle flooring, wall and ceiling panels; foundation improvements that isolate the clean room to control vibrations; clean air handling and filtration systems; piping systems for fluids and gases used in the manufacturing process and that touch the product during the fabrication of semiconductors, flat panel displays, and liquid crystal displays; process equipment energy control systems; ultra pure water processing and wastewater recycling systems; and safety alarm and monitoring systems. A manufacturer who uses a Class 100 or better clean room, as that term is defined in Federal Standard 209E, in manufacturing its product may elect an annual allowance for depreciation for property tax purposes of ten percent on clean room modules and associated mechanical systems, and on process piping, wiring environmental systems, and water purification systems associated with the clean room instead of a depreciation allowance for which the manufacturer otherwise is entitled. Included are waffle flooring, wall and ceiling panels, foundation improvements that isolate the clean room to control vibrations, clean air handling and filtration systems, piping systems for fluids and gases used in the manufacturing process and in the clean room that touch the product during the process, flat panel displays, and liquid crystal displays, process equipment energy control systems, ultra pure water processing and wastewater recycling systems, and safety alarm and monitoring systems."
C. Sections 12-43-280 and 12-43-290 of the 1976 Code are repealed.
SECTION 2A. Section 4-12-30(B)(4)(b) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"(b)(i) The members of the same controlled group of corporations can may qualify for the fee if the combined investment in the county by the members meets the minimum investment requirements each member invests the minimum level of investment as specified in subsection (B)(3). The county and the members who are part of the inducement agreement may agree that any investments by other members of the controlled group within the time periods provided in subsections (C)(1) and (C)(2) qualify for the payment whether or not the member was part of the inducement agreement. However, in order To qualify for the fee, the other members of the controlled group must be approved specifically approved by the county and must agree to be bound by agreements with the county relating to the fee, but except that the controlled group members need are not be bound by agreements, or portions of agreements, to the extent the agreements do not affect the county. Except as otherwise provided in subsection (B)(2), the investments under pursuant to this subsection (B)(4)(b) must be within the same county or industrial park. Any controlled group member which is claiming the fee shall invest at least five million dollars in the county or industrial park.
(ii) The department must be notified in writing of all members which have investments subject to the fee before or within ninety days after the end of the calendar year during which the project or phase of the project was first placed in service. The department may extend this period upon written request. Failure to meet this notice requirement does not adversely affect the fee adversely, but a penalty may be assessed by the department for late notification in the amount of ten thousand dollars a month or portion of a month, but not to exceed fifty thousand dollars. Members of the controlled group shall provide the information considered necessary by the department to ensure that the investors are part of a controlled group.
(iii) If at any time the controlled group, or any a former member which has left the controlled group, no longer has the minimum five million dollars of investment minimum level of investment as provided in subsection (B)(3), without regard to depreciation, that group or former member no longer holding the minimum amount of investment as provided in subsection (B)(3), without regard to depreciation, no longer qualifies for the fee.
(iv) For purposes of this section, 'controlled group' or 'controlled group of corporations' has the meaning provided under in Section 1563(a) of the Internal Revenue Code, as defined in Chapter 6 of Title 12 as of the date of the execution of the inducement agreement, without regard to amendments or replacements thereof, of it and without regard to subsections (a)(4) and (b) of Section 1563."
B. Section 4-12-30(O) of the 1976 Code, as added by Act 125 of 1995, is amended to read:
"(O) Notwithstanding any other provision of this section, if at any time following the period provided in subsection (C)(2), the investment based on income tax basis without regard to depreciation falls below the five-million-dollar-minimum investment to which the fee relates minimum level of investment provided in subsection (B)(3) at any time following the period provided in subsection (C)(2), the fee provided in subsection (D)(2) is no longer available and the investor is required to must make the payments which are due under pursuant to Section 4-12-20 for the remainder of the lease period."
C. Section 12-44-130(A) of the 1976 Code, as added by Act 149 of 1997, is amended to read:
"(A) To be eligible for the fee, a sponsor affiliate must invest five million dollars the minimum investment as defined in Section 12-44-30(14). The county and the members who are part of the fee agreement may agree that investments by other members of the controlled group within the investment period qualify for the payment regardless of whether the member was part of the fee agreement, except that the new sponsor affiliate must invest at least five million dollars the minimum investment in the project. To qualify for the exemption, the other members of the controlled group must be approved specifically by the county and must agree to be bound by agreements with the county relating to the exemption. These controlled group members need are not be bound by agreements, or portions of agreements, which do not affect the county."
SECTION 3. Chapter 10 of Title 4 of the 1976 Code, is amended by adding:
"Section 4-10-67. Local option use tax collected by the department in conjunction with the filing of individual income tax returns must be deposited to a local option supplemental revenue fund and distributed in accordance with Section 4-10-60 to those counties generating less than their minimum distribution."
SECTION 4A. Section 12-37-2810 (A) of the 1976 Code, as last amended by Act 442 of 1998, is further amended to read:
"(A) 'Motor carrier' means a person who owns, controls, operates, manages, or leases a motor vehicle or bus for the transportation of property or persons in intrastate or interstate commerce except for scheduled intercity bus service and farm vehicles using FM tags as allowed by the Department of Motor Vehicles. A motor carrier is defined further as being a South Carolina-based International Registration Plan registrant or owning or leasing real property within this State used directly in the transportation of freight or persons.
B. Section 12-37-2840 of the 1976 Code, as last amended by Act 442 of 1998, is further amended to read:
"Section 12-37-2840. (A) Motor carriers must file an annual property tax return with the Department of Revenue no later than June 30 for the preceding calendar year and remit one-half of the tax due or the entire tax due as stated on the return. If the motor carrier fails to file its return, the department shall issue a proposed assessment which assumes all mileage was within this State. If the motor carrier fails to pay either one-half of the tax due or the entire tax due as of June 30, the department must issue a proposed assessment for the entire tax to the motor carrier. The tax as shown in the proposed assessment must be paid in full by cashier's check, money order, or cash within thirty days of the receipt of the proposed assessment, or the taxpayer may appeal the proposed assessment within thirty days using the procedures provided in subarticle 1, Article 5, Chapter 60 of this title.
(B)(1) If one-half of the tax is remitted on or before June 30, the remaining one-half of the tax due must be paid to the Department of Revenue on or before December 31 of that year. If the motor carrier fails to remit the remaining tax due pursuant to this section, the department shall issue a proposed assessment notice to the motor carrier. demanding payment for the entire amount shown to be due. If the motor carrier fails to remit the tax due within thirty days of receipt of the notice, the Department of Revenue shall notify the Department of Public Safety, which may not renew the registrations of the motor vehicles required by this article to be on the property tax return. A twenty-five percent penalty must be added to the property tax due and the tax and penalty must be paid in full by cashier's check, money order, or cash. The penalty required by this section is instead of all other penalties and interest required by law.
Upon payment in full, the Department of Revenue shall notify the Department of Public Safety which then shall allow for registrations of the motor vehicles.
(2) The tax shown in the proposed assessment must be paid in full by cashier's check, money order, or cash or appealed within thirty days of the receipt of the proposed assessment. The taxpayer may appeal the proposed assessment using the procedures provided in subarticle 1, Article 5, Chapter 60 of this title.
(C) If a motor carrier fails to timely file the return as required by this section, the department shall issue a proposed assessment which assumes all mileage of the motor carrier's fleet was driven within this State. A taxpayer may appeal this proposed assessment using the procedures provided in subarticle 1, Article 5, Chapter 60 of this title.
(D) A twenty-five percent penalty must be added to the property tax due if the motor carrier fails to file a return or pay any tax due, including the one-half of the tax due on June 30, as required by this section. The penalty must be imposed within thirty days of the date that the return was due to be filed or the tax was due to be paid. This penalty is instead of all other penalties and interest required by law, except those provided in Section 12-54-44.
(E) If the motor carrier fails to remit the tax due within thirty days of receipt of the proposed assessment and the taxpayer fails to appeal the proposed assessment as provided in subsection (B), the department shall assess the tax. Tax due pursuant to this section is subject to the collection procedures provided in Chapter 54, of this title, except that the penalty provisions of Section 12-54-43 do not apply."
C. Chapter 37 of Title 12 of the 1976 Code, is amended by adding:
"Section 12-37-2842. (A) The Department of Motor Vehicles, at the time of first registration by a motor carrier as defined in this article, shall notify the registrant of the Department of Revenue's registration and filing requirements and supply the required registration forms.
(B) The motor carrier must register with the Department of Revenue by the end of February following the year in which the vehicle or bus was first registered for operation in South Carolina.
(C) A motor carrier must notify the Department of Revenue, on forms supplied by the department, of a motor vehicle or bus that is disposed of before December 31."
D. Section 12-37-2845 of the 1976 Code is repealed.
SECTION 5. This act takes effect upon approval by the Governor, except that SECTION 2 applies to inducement agreements entered into after December 31, 2000.
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