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Current Status Bill Number:View additional legislative information at the LPITS web site.21 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20010110 Primary Sponsor:Elliott All Sponsors:Elliott, Ford, Leventis, Branton Drafted Document Number:l:\s-res\de\021gros.dmb.doc Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Sales and use tax credit for tax paid on uncollectible amounts, later payment date; sales exempt; Taxation History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 20010110 Introduced, read first time, 06 SF referred to Committee Versions of This Bill
TO AMEND SECTION 12-36-90, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "GROSS PROCEEDS OF SALES" FOR PURPOSES OF THE STATE SALES AND USE TAX, SO AS TO EXEMPT FROM THAT DEFINITION THE SALES PRICE ON SALES WHICH ARE UNCOLLECTABLE, TO PROVIDE FOR CREDIT FOR TAXES PAID ON UNCOLLECTABLE AMOUNTS, AND TO PROVIDE FOR LATER PAYMENT OF TAXES ON AMOUNTS SUBSEQUENTLY COLLECTED AND TO AMEND SECTION 12-36-2560, RELATING TO PAYMENT OF SALES TAX, SO AS TO PROVIDE THAT RETAILERS MAY DEDUCT CERTAIN UNCOLLECTABLE SALES AND USE TAXES PREVIOUSLY PAID TO THE STATE UNDER CERTAIN CONDITIONS FROM THEIR NEXT MONTHLY INSTALLMENT AND TO PROVIDE REPORTING REQUIREMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-90(2) of the 1976 is amended by adding an appropriately lettered item at the end to read:
"( ) the sales price of property on sales which are actually charged off as bad debts or uncollectable accounts for federal income tax purposes. A taxpayer who pays the tax on the unpaid balance of an account which has been found to be worthless and is actually charged off for federal income tax purposes may take credit for the tax paid on a return filed pursuant to this chapter, except that if an amount charged off is later paid in whole or in part to the taxpayer, the amount paid must be included in the first return filed after the collection and the tax paid."
SECTION 2. Section 12-36-2560 of the 1976 Code is amended to read:
"Section 12-36-2560. (A) On all sales of retailers liable for the tax imposed by Article 9 of this chapter (sales tax) made on an installment basis which conform to the provisions of the Uniform Commercial Code in which the retailer takes a security interest, the vendor may elect to include in the return only the portion of the sales price actually received by the retailer during the taxable period or to include the entire sales price in the return for the taxable period during which the sale was consummated. Having once elected either method of reporting the sales, the taxpayer must continue unless and until permission has been received from the commission to make a change. Nothing in this section may be construed to permit delay in reporting sales under other terms of credit or cash sales.
The commission may, for any cause, require a taxpayer to include in his returns the entire sales price of articles sold on an installment basis which conforms to the provisions of the Uniform Commercial Code in which the retailer takes a security interest. On all sales of retailers liable for the tax imposed by Article 9 of this chapter (sales tax) made on an installment basis which conform to the provisions of the Uniform Commercial Code in which the retailer takes a security interest, the vendor may elect to include in the return only the portion of the sales price actually received by the retailer during the taxable period or to include the entire sales price in the return for the taxable period during which the sale was consummated. Having once elected either method of reporting the sales, the taxpayer must continue unless and until permission has been received from the commission to make a change. Nothing in this section may be construed to permit delay in reporting sales under other terms of credit or cash sales.
The commission may, for any cause, require a taxpayer to include in his returns the entire sales price of articles sold on an installment basis which conforms to the provisions of the Uniform Commercial Code in which the retailer takes a security interest.
(B) If a retailer remits sales tax on an item or property sold which is not collectable or is charged off as bad debt, the retailer may deduct the amount of sales tax previously remitted to the State from the retailer's current monthly installment. The department shall require the retailer to keep and preserve such records and invoices as necessary to verify any deductions taken pursuant to this item. The department may require the retailer to provide information on the retailer's monthly report to account for such deductions."
SECTION 3. This act takes effect upon approval by the Governor.
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