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Bill 3835

Indicates Matter Stricken

Indicates New Matter

AMENDED

May 18, 1999

H. 3835

S. Printed 5/18/99--S.

Read the first time May 4, 1999.

TO AMEND ARTICLE 1, CHAPTER 54, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COLLECTION AND ENFORCEMENT OF TAXES LEVIED BY THE DEPARTMENT OF REVENUE, BY ADDING SECTIONS 12-54-43 SO AS TO PROVIDE FOR CIVIL PENALTIES AND 12-54-44 SO AS TO PROVIDE FOR CRIMINAL PENALTIES; TO AMEND SECTIONS 4-12-30, AS AMENDED, AND 4-29-67, AS AMENDED, BOTH RELATING TO A PROJECT PAYING A FEE IN LIEU OF PROPERTY TAXES, SO AS TO DEFINE "REPLACEMENT PROPERTY" AS REPLACING THE OLDEST PROPERTY IN THE PROJECT SUBJECT TO THE FEE; TO AMEND SECTION 4-29-68, AS AMENDED, RELATING TO A PROJECT PAYING A FEE IN LIEU OF PROPERTY TAXES, SO AS TO ADD CERTAIN CROSS REFERENCES; TO AMEND SECTION 6-1-320, RELATING TO LIMITATIONS ON MILLAGE RATE INCREASES, SO AS TO REFERENCE THE CALENDAR YEAR INSTEAD OF THE FISCAL YEAR AND TO PROVIDE FOR COMPUTATION OF THE ROLLBACK MILLAGE; TO AMEND SECTION 11-1-10, RELATING TO OFFICIAL RECEIPTS FOR MONIES COLLECTED, SO AS TO LIMIT RELEASE OF DOCUMENTS BY THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-6-50, AS AMENDED, RELATING TO PROVISIONS OF THE INTERNAL REVENUE CODE NOT ADOPTED BY THE STATE, SO AS TO ADOPT SECTION 6015; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO JOB TAX CREDIT, SO AS TO DESCRIBE SPECIFICALLY THE DATA USED TO RANK AND DESIGNATE THE STATE'S COUNTIES AS THE AVAILABLE PER CAPITA INCOME DATA AND UNEMPLOYMENT RATE DATA FROM THE LAST THREE YEARS AND THE DATA USED FOR DETERMINATION OF THE PER CAPITA INCOME OF A COUNTY AS THE LATEST AVAILABLE DATA AND TO PROVIDE FOR THE PASS THROUGH OF THE UNUSED CREDIT TO MEMBERS OF CERTAIN ENTITIES CLAIMING THE CREDIT; TO AMEND SECTION 12-6-4910, RELATING TO THOSE TAXPAYERS REQUIRED TO FILE INCOME TAX RETURNS, SO AS TO REFERENCE THE DEDUCTION FOR RETIREMENT INCOME; TO AMEND SECTIONS 12-6-5060, 12-6-5065, 12-6-5070, AND 12-6-5080, ALL RELATING TO DESIGNATIONS ON THE TAX RETURNS FOR VOLUNTARY CONTRIBUTIONS, SO AS TO PROVIDE THAT THE DEPARTMENT OF REVENUE IS NOT SUBJECT TO THE PROVISIONS OF THE SOUTH CAROLINA SOLICITATION OF CHARITABLE FUNDS ACT; TO AMEND SECTION 12-21-2550, AS AMENDED, RELATING TO FAILURE TO MAKE A CORRECT TAX RETURN OR TO FILE A RETURN, SO AS TO PROVIDE FOR THE DEPARTMENT OF REVENUE TO ESTIMATE THE TAX LIABILITY AND ISSUE A PROPOSED ASSESSMENT; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO INCLUDE PROCEEDS FROM THE SALE OF LIQUEFIED PETROLEUM GAS; TO AMEND SECTION 12-37-251, AS AMENDED, RELATING TO THE HOMESTEAD EXEMPTION FROM PROPERTY TAX, SO AS TO DELETE REFERENCE TO CALCULATION OF ROLLBACK MILLAGE; TO AMEND SECTION 12-54-55, AS AMENDED, RELATING TO INTEREST ON UNDERPAYMENT OF ESTIMATED TAX, SO AS TO DELETE LANGUAGE MAKING THE PENALTY INTEREST THE EXCLUSIVE REMEDY; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO PROHIBITION OF THE DISCLOSURE OF RECORDS FILED WITH THE DEPARTMENT OF REVENUE, SO AS TO ALLOW THE DISCLOSURE OF NAMES AND ADDRESSES TO THE STATE RETIREMENT SYSTEM IN CONNECTION WITH INACTIVE ACCOUNTS; TO AMEND SECTION 12-56-20, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE SETOFF DEBT COLLECTION ACT, SO AS TO ADD THE UNITED STATES DEPARTMENT OF EDUCATION AS A CLAIMANT AGENCY AND TO CHANGE "INDIVIDUAL" TO "PERSON"; AND TO REPEAL SECTIONS 12-6-5590 RELATING TO REVISION OF THE ASSESSED TAX, 12-54-35 RELATING TO SPOUSAL LIABILITY FOR TAX, AND 12-54-40 RELATING TO PENALTIES IN CONNECTION WITH COLLECTION AND ENFORCEMENT OF TAXES.

Amend Title To Conform

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

SECTION 1. 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."

SECTION 2. 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 which is being disposed of in the same property tax year 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; provided, however, that where a single piece of property replaces two or more pieces of property, the fee period must be measured from the earliest of the dates on which the replaced pieces of property were placed in service."

SECTION 3. 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 which is being disposed of in the same property tax year 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; provided, however, that where a single piece of property replaces two or more pieces of property, such fee period shall be measured from the earliest of the dates on which the replaced pieces of property were placed in service."

SECTION 4. 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, or 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 taxes 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."

SECTION 5. Section 11-1-10 of the 1976 Code is amended to read:

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

SECTION 6. 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."

SECTION 7. 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 from the most recent and the last thirty-six month period 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 benefits of 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) For In addition to the designation in subitem (a), a county in which is located an applicable military installation or applicable federal facility meeting the requirements for the increased credit provided in subitem (a) of this item, the credit allowed is two tiers higher than the credit for which the county would otherwise qualify 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) In addition to those credits allowed under subsection (C) of this section a corporation, partnership, or limited liability company that qualifies for a credit under this section as an S corporation, partnership, or limited liability company, entitles each shareholder of the S corporation, partner of the partnership, or member of the limited liability company to a nonrefundable credit against taxes imposed pursuant to Section 12-6-510. 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 owner of a limited liability company 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 the taxpayer would have been entitled to if it were taxed as a corporation 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 under 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. However, the credit established by this section taken in one tax year may not exceed fifty percent of the taxpayer's tax liability under Section 12-6-510. The entity earning the credit may not carry over credit that passes through to its shareholders, partners, or members."

SECTION 8. 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 at the time the jobs are filled;

(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 at the time the jobs are filled; 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 at the time the jobs are filled.

The per capita income for each county is determined by using the most recent data available from the Board of Economic Advisors. 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)."

SECTION 9. 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)."

SECTION 10. 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."

SECTION 11. 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."

SECTION 12. 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."

SECTION 13. 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."

SECTION 14. 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 a return upon the information it is able to obtain an estimate of the tax liability from the best information available, and issue a proposed assessment for the taxes, including penalties and interest."

SECTION 15. 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;"

SECTION 16. 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."

SECTION 17. 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, 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."

SECTION 18. Section 12-56-20(3) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

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

SECTION 19. Sections 12-6-5590, 12-54-35, and 12-54-40 of the 1976 Code are repealed.

SECTION 20. Section 12-4-320(6) of the 1976 Code, as added by Act 516 of 1994, is amended to read:

"(6) if for damage caused by war, terrorist act, or natural disaster or service with the United States armed forces occurs as defined in Section 12-9-310, prescribe temporary rules including, but not limited to, the filing of returns, payment of taxes, and extensions of due dates 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."

SECTION 21. 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

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

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

SECTION 22. 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. Where a single piece of property replaces two or more pieces of economic development property, the time period remaining must be measured from the earliest of the dates on which the replaced pieces of economic development property were placed in service.

(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."

SECTION 23. A. 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 only increase the millage rate imposed for general operating purposes above the rate imposed for such purposes for the prior preceding tax year only to the extent of the increase in the consumer price index for the preceding fiscal 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."

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

SECTION 24. The Department of Revenue may amend the 1999 Index of Taxpaying Ability, as defined in Section 59-20-20(3), up to June 1, 1999, for purposes of calculating the 1999 Index of Taxpaying Ability.

SECTION 25. This act takes effect upon approval by the Governor; and Sections 2, 3, and 5 are effective for property tax years beginning after 1998, Sections 1, 8, 9, 10, 11, 12, 13, 14, and 18 are effective for taxable years after 1998, and Section 16 is effective July 1, 1999.

This web page was last updated on Friday, June 26, 2009 at 3:02 P.M.