South Carolina General Assembly
114th Session, 2001-2002

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Bill 3442


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                      3442
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  20010201
Primary Sponsor:                  Robinson
All Sponsors:                     Robinson, Wilkins, W.D. Smith, Quinn, 
                                  Koon, Knotts, Allison, Altman, Barfield, 
                                  Barrett, Bingham, Campsen, Cato, Chellis, 
                                  Coates, Cooper, Cotty, Dantzler, Davenport, 
                                  Delleney, Easterday, Edge, Fleming, Frye, 
                                  Gilham, Gourdine, Hamilton, Harrell, Harrison, 
                                  Haskins, Hinson, Huggins, Jennings, Keegan, 
                                  Kelley, Kirsh, Klauber, Law, Leach, Limehouse, 
                                  Littlejohn, Loftis, Lucas, Martin, McGee, 
                                  Meacham-Richardson, Merrill, Owens, Perry, 
                                  Rhoad, Rice, Riser, Rodgers, Sandifer, 
                                  Scarborough, Sharpe, Simrill, Sinclair, 
                                  D.C. Smith, F.N. Smith, G.M. Smith, 
                                  J.R. Smith, Stille, Talley, Taylor, Thompson, 
                                  Tripp, Trotter, Vaughn, Walker, Webb, Whatley, 
                                  White, Witherspoon, A. Young and J. Young
Drafted Document Number:          l:\council\bills\bbm\9806htc01.doc
Residing Body:                    Senate
Current Committee:                Finance Committee 06 SF
Date of Last Amendment:           20010411
Subject:                          Sales tax exemptions on food items 
                                  purchased with U.S. Agriculture Department 
                                  coupons; Taxation


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  20010417  Introduced, read first time,           06 SF
                  referred to Committee
House   20010412  Read third time, sent to Senate
House   20010411  Amended, read second time, 
                  unanimous consent for third reading 
                  on Thursday, 20010412
------  20010409  Scrivener's error corrected
House   20010405  Committee report: Favorable with       30 HWM
                  amendment
House   20010201  Introduced, read first time,           30 HWM
                  referred to Committee


              Versions of This Bill
Revised on April 5, 2001 - Word format
Revised on April 9, 2001 - Word format
Revised on April 11, 2001 - Word format

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

AMENDED

April 11, 2001

    H. 3442

Introduced by Reps. Robinson, Wilkins, W.D. Smith, Quinn, Koon, Knotts, Allison, Altman, Barfield, Barrett, Bingham, Campsen, Cato, Chellis, Coates, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Fleming, Frye, Gilham, Gourdine, Hamilton, Harrell, Harrison, Haskins, Hinson, Huggins, Jennings, Keegan, Kelley, Kirsh, Klauber, Law, Leach, Limehouse, Littlejohn, Loftis, Lucas, Martin, McGee, Meacham-Richardson, Merrill, Owens, Perry, Rhoad, Rice, Riser, Rodgers, Sandifer, Scarborough, Sharpe, Simrill, Sinclair, D.C. Smith, F.N. Smith, G.M. Smith, J.R. Smith, Stille, Talley, Taylor, Thompson, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, White, Witherspoon, A. Young and J. Young

S. Printed 4/11/01--H.

Read the first time February 1, 2001.

            

A 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 AT THE RATE OF ONE PERCENT A YEAR THE FOUR PERCENT STATE SALES TAX ON FOOD ITEMS WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO EXEMPT COMPLETELY FROM THE STATE PORTION OF THE TAX ALL SUCH FOOD AND MEALS EFFECTIVE JANUARY 1, 2005, TO PROVIDE FOR THE USE OF THE REVENUE FROM THE REDUCED RATES OF TAX DURING THE PHASE-IN PERIOD, AND TO AMEND AN ACT OF 2000 BEARING RATIFICATION NUMBER 453, RELATING TO SUPPLEMENTAL APPROPRIATIONS, SO AS TO DELETE A SALES TAX EXEMPTION FOR FOOD ITEMS MADE OBSOLETE BY THE PROVISIONS OF THIS ACT.

    Amend Title To Conform

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 January 1, 2005, food items eligible for purchase with United States Department of Agriculture food coupons. The exemption allowed by this item does not extend to a local sales and use tax imposed pursuant to a referendum held before July 1, 2001, except where a local sales and use tax specifically exempts these items. The exemption allowed by this item applies to a local sales and use tax imposed pursuant to a referendum held after June 30, 2001. An amount of general fund revenue not derived from the state sales and use tax equal to the amount of state sales and use tax revenue not collected because of the exemption allowed by this item is deemed state sales and use tax revenue and must be used as provided in Section 59-21-1010(A) and (B), including the appropriate amount required to be credited to the Education Act Improvement Fund;

SECTION    2.    Part IB of an act of 2000 bearing ratification number 453 is amended by deleting Section 32(a) which reads:

    "(32)(a)    The General Assembly finds that it is appropriate to provide certain forms and levels of tax reduction when at the same time it has determined that every reasonable effort has been made and accomplished to fund, to the fullest extent possible, adequate and comprehensive programs in education and health care which are fundamental to progress, growth, and economic development. The General Assembly herein provides for a twenty percent reduction in the rate of sales tax imposed on the gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons, beginning in January 1, 2001. Eighty percent of the revenues from sales taxes raised subsequent to imposition of the special sales 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. It is the further intent of the General Assembly that, provided the funds are authorized for the fiscal year in which the following schedule is eligible to be implemented, and notwithstanding the rate 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, is four percent for sales from January 1, 2001, through December 31, 2001; three percent for such sales from January 1, 2002, through December 31, 2002; two percent for such sales from January 1, 2003, through December 31, 2003; one percent for such sales from January 1, 2004, through December 31, 2004; and on and after January 1, 2005, the gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons shall be exempt from the tax imposed pursuant to Chapter 36, Title 12 of the 1976 Code."

SECTION    3.    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, is four percent for sales from July 1, 2001, through December 31, 2001, three percent for such sales from January 1, 2002, through December 31, 2002, two percent for such sales from January 1, 2003, through December 31, 2003, and one percent for such sales from January 1, 2004, through December 31, 2004. An amount of general fund revenue not derived from the state sales and use tax equal to the state sales and use tax not collected because of the reduced state sales tax rate allowed by this section is deemed state sales and use tax revenue and must be used as provided in Section 59-21-1010(A) and (B) of the 1976 Code, including whatever amount is necessary to be credited to the Education Act Improvement Fund so that the total in that fund is not reduced by the reduced rates allowed by this section. 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, but such a tax imposed pursuant to a referendum held after June 30, 2001, does not apply to those sales subject to the reduced state rate of tax provided in this section.

SECTION    4.    This act takes effect July 1, 2001.

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