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COMMITTEE REPORT
March 16, 2000
H. 4340
S. Printed 3/16/00--S.
Read the first time February 3, 2000.
To whom was referred a Bill (H. 4340), to amend Section 56-3-8000, Code of Laws of South Carolina, 1976, relating to the issuance of nonprofit organization special license plates by the Department of Public Safety, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass:
JOHN C. LAND, III, for Committee.
REVENUE IMPACT1
This bill is expected to increase funds allocated to DPS by $8,000 in FY 2000-01.
Explanation
This bill would extend eligibility for special license plates to include social and recreational groups that are tax exempt per Internal Revenue Code Section 501 (C) (7). Such organizations must have limited membership but by charter, bylaws or written policy do not discriminate on the basis of race, color or religion. Typical organizations include: College fraternities and sororities; certain college alumni associations; country clubs; hobby, garden and variety clubs; dinner clubs; amateur hunting, fishing, tennis, swimming and other sport clubs. A minimum of 400 paid applications from certified members or a deposit of $4,000 and a marketing plan approved by DPS is required for production. Each member may apply for only one plate for a private vehicle licensed in his or her name. The plate will cost $54. The special plate fee is $30 biennially in addition to the regular $24 registration fee, which goes to the general fund. This section stipulates that all proceeds from the $30 special fee for tax-exempt groups must go to DPS to defray production costs via a "Special License Plate Fund." Based on prior sales of various fraternal organizations, the BEA expects first-year revenues from sales and/or deposits to be $8,000. This figure is based on either deposits of $4,000 each for two groups or approximately 267 member applications at $30 each This bill is expected to increase DPS earmarked revenues by $8,000 in FY 2000-01. This bill would have no impact on state infrastructure bank revenues since it does not apply to fees required under Section 56-3-660.
Note: Retention of special plate fees by DPS requires an amendment to Paragraph 36.7, Section 36, Part 1B of Act 100 of 1999 (FY 1999-00 General Appropriation Act) as applicable in FY 2000-01.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND SECTION 56-3-8000, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF NONPROFIT ORGANIZATION SPECIAL LICENSE PLATES BY THE DEPARTMENT OF PUBLIC SAFETY, SO AS TO PROVIDE THAT THESE LICENSE PLATES MAY ALSO BE ISSUED TO SOCIAL AND RECREATION CLUBS THAT HAVE OBTAINED CERTIFICATION PURSUANT TO SECTION 501(C)(7) OF THE FEDERAL INTERNAL REVENUE CODE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 56-3-8000(A) of the 1976 Code, as added by Act 63 of 1999, is amended to read:
"(A) The department may issue special motor vehicle license plates to owners of private passenger-carrying motor vehicles or light pickups having an empty weight of six thousand pounds or less and a gross weight of nine thousand pounds or less registered in their names which may have imprinted on the plate the emblem, a seal, or other symbol the department considers appropriate of an organization which has obtained certification pursuant to either Section 501(C)(3) or 501(C)(7) of the Federal Internal Revenue Code. The fee for this special license plate is the fee contained in Section 56-3-2020.
The special license plate must be issued or revalidated for a biennial period which expires twenty-four months from the month it is issued."
SECTION 2. This act takes effect upon approval by the Governor.
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