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Indicates Matter Stricken
Indicates New Matter
AMENDED
April 27, 1999
H. 3834
S. Printed 4/27/99--H.
Read the first time April 6, 1999.
TO AMEND SECTION 2-7-76, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FISCAL IMPACT STATEMENTS FOR PROPOSED LEGISLATION AFFECTING COUNTIES OR MUNICIPALITIES, SO AS TO REQUIRE THE ACQUISITION OF A FISCAL IMPACT STATEMENT FROM THE "BOARD OF ECONOMIC ADVISORS" INSTEAD OF FROM THE "DEPARTMENT OF REVENUE" AND TO MAKE TECHNICAL CORRECTIONS; TO AMEND SECTION 12-6-40, AS AMENDED, RELATING TO APPLICATION OF THE INTERNAL REVENUE CODE TO STATE TAX LAWS, SO AS TO ADOPT APPLICATION OF THE INTERNAL REVENUE CODE AS AMENDED THROUGH TAXABLE YEAR 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 INCOME TAX CREDIT FOR CORPORATE HEADQUARTERS, SO AS TO PROVIDE FOR DETERMINING THE PER CAPITA INCOME FOR PURPOSES OF CALCULATING ADDITIONAL TAX CREDIT FOR CREATION OF NEW HEADQUARTERS JOBS BY USING THE MOST RECENT PER CAPITA INCOME DATA AVAILABLE AT THE END OF THE TAXABLE YEAR THE JOBS ARE FILLED; TO AMEND SECTION 12-6-3465, RELATING TO RECYCLING FACILITY TAX CREDITS, SO AS TO UPDATE CODE CROSS REFERENCES; TO AMEND SECTION 12-16-20, RELATING TO DEFINITIONS FOR PURPOSES OF THE ESTATE TAX, SO AS TO DEFINE THE INTERNAL REVENUE CODE AS AMENDED THROUGH 1998; TO AMEND SECTION 12-20-20, RELATING TO FILING OF A CORPORATE ANNUAL REPORT, SO AS TO UPDATE A CROSS REFERENCE; TO AMEND SECTION 12-36-510, AS AMENDED, RELATING TO RETAIL LICENSE REQUIREMENTS, SO AS TO DELETE THE REQUIREMENT THAT A FESTIVAL BE LISTED AS A SPECIAL EVENT WITH THE DEPARTMENT OF PARKS, RECREATION, AND TOURISM; TO AMEND SECTION 12-37-251, AS AMENDED, RELATING TO THE HOMESTEAD EXEMPTION, SO AS TO PROVIDE THAT THE BOARD OF ECONOMIC ADVISORS, INSTEAD OF THE DEPARTMENT OF REVENUE, ESTIMATE THE TOTAL SCHOOL TAX REVENUE LOSS FROM THE EXEMPTION; AND TO AMEND SECTION 12-54-85, AS AMENDED, RELATING TO TIME LIMITATIONS FOR ASSESSMENT OF TAXES, SO AS TO INCREASE FROM THIRTY TO NINETY THE NUMBER OF DAYS A CORPORATION HAS TO FILE A CLAIM FOR REFUND AFTER AN ADJUSTMENT TO ITS TAXABLE INCOME IS MADE BY THE INTERNAL REVENUE SERVICE.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. 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) Whenever 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 under pursuant to Chapter 27 of Title 6, or whenever a bill or resolution;
(2) is introduced in the General Assembly to require the expenditure of funds by a county or municipality, or whenever a bill or resolution;
(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 whenever a bill
(4) relates to taxes imposed by political subdivisions, the chairman of the legislative committee to which the bill or resolution was referred shall direct the Budget Division or the Department of Revenue, 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 prior to the legislation being reported out of that committee.
(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 Department of Revenue prior to 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."
SECTION 2. 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, 1997 1998, and includes the effective date provisions contained therein."
SECTION 3. 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 under pursuant to Section 41-44-60 shall exclude from South Carolina gross income, seventy-five percent of the partner's proportionate share of income that the fund derives from a South Carolina business which is either:
( i) established and operated in a less 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)."
SECTION 4. 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 which.
The jobs must have an average cash compensation level of more than one and one-half times the per capita income of this State at the time the jobs are filled 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 at the time the newly created jobs are filled 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."
SECTION 5. 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 12-7-1275 12-6-3460 shall be 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 12-7-230 12-6-530, sales or use tax imposed by the State or any political subdivision of the State, corporate license fees imposed by Section 12-19-70 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."
SECTION 6. 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 of 1986, as amended through December 31, 1991 1998."
SECTION 7. 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 12-6-530 12-6-4910 to file income tax returns shall file an annual report with the department."
SECTION 8. 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 or, in the case of a festival, if the festival is listed as a special event in the calendar of events provided by the South Carolina Department of Parks, Recreation and Tourism. In addition, the event must be operated for a period of less than twelve consecutive days."
SECTION 9. 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 Department of Revenue's 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."
SECTION 10. 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 thirty ninety days from the date the Internal Revenue Service changes the taxable income."
SECTION 11. This act takes effect upon approval by the Governor, except Sections 2, 3, 4, 5, 6, 7, and 10 are effective for taxable years after 1998 and Section 9 is effective for property tax years beginning after 1998.
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