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Current Status Bill Number:View additional legislative information at the LPITS web site.928 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20000111 Primary Sponsor:Courson All Sponsors:Courson, Wilson, Elliott, Setzler, Grooms, Giese, Hayes, McConnell, Gregory, Leatherman, Reese, Rankin Drafted Document Number:l:\council\bills\nbd\11523htc00.doc Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Sales tax exemption, reduction; food lawfully purchased with Agriculture Department food coupons; Taxation History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 20000119 Co-Sponsor added by Senator Grooms Giese Hayes McConnell Gregory Leatherman Reese Rankin Senate 20000111 Introduced, read first time, 06 SF referred to Committee Senate 19990921 Prefiled, referred to Committee 06 SF Versions of This Bill
TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO REDUCE BY ONE PERCENT A YEAR THE STATE PORTION OF SALES TAX ON FOOD ITEMS WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS AND PREPARED FOOD AND RESTAURANT MEALS, NOT INCLUDING BEER, WINE, AND ALCOHOLIC LIQUOR SERVED WITH THESE MEALS, TO EXEMPT COMPLETELY FROM THE STATE PORTION OF THE TAX ALL SUCH FOOD AND MEALS EFFECTIVE JULY 1, 2004, AND TO PROVIDE FOR THE USE OF THE REVENUE FROM THE REDUCED RATES OF TAX DURING THE PHASE-IN PERIOD.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) effective July 1, 2004, food items eligible for purchase with United States Department of Agriculture food coupons and prepared food and restaurant meals, not including beer, wine, and alcoholic liquor served with these meals, but this exemption does not apply for local sales and use taxes except where such taxes specifically exempt these items."
SECTION 2. Notwithstanding the rates of tax imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons and prepared food and restaurant meals, not including beer, wine, and alcoholic liquor served with these meals, is four percent for sales or consumption from July 1, 2000, through June 30, 2001, three percent for such sales or consumption from July 1, 2001, through June 30, 2002, two percent for such sales or consumption from July 1, 2002, through June 30, 2003, and one percent for such sales or consumption from July 1, 2003, through June 30, 2004. Eighty percent of the revenues from sales taxes raised by the special tax rates provided by this section must be credited to the general fund of this State and used as sales taxes are used, and the remainder must be credited to the Education Improvement Act Fund. Except where otherwise exempt, the local sales and use taxes authorized by law continue to apply to those sales subject to the reduced state rate of tax provided in this section.
SECTION 3. This act takes effect upon approval by the Governor.
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