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Current Status Bill Number:View additional legislative information at the LPITS web site.4337 Ratification Number:466 Act Number:363 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20010816 Primary Sponsor:Campsen All Sponsors:Campsen, Chellis, Barfield, Harrell, Easterday Drafted Document Number:l:\council\bills\bbm\10522htc01.doc Date Bill Passed both Bodies:20020606 Date of Last Amendment:20020606 Governor's Action:S Date of Governor's Action:20020802 Subject:Estimated Income Tax Payment Reform Act; deductions from taxable income for volunteer emergency workers including HAZMAT workers; discount for payment of sales tax for electronic filing History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20020819 Act No. A363 ------ 20020802 Signed by Governor ------ 20020606 Ratified R466 Senate 20020606 Ordered enrolled for ratification House 20020606 Free Conference Committee Report 99 HFCC adopted House 20020606 Free Conference Powers granted, 99 HFCC Campsen appointed Reps. to Committee of Perry Free Conference Kirsh Senate 20020606 Free Conference Committee Report 89 SFCC adopted Senate 20020606 Free Conference Powers granted, 89 SFCC Hayes appointed Senators to Committee Alexander of Free Conference Hutto Senate 20020605 Conference Committee Appointed 88 SCC Hutto Alexander Hayes House 20020605 House insists upon amendment and 98 HCC Perry Conference Committee appointed Campsen Kirsh Senate 20020605 Non-concurrence in House amendment House 20020605 Senate amendments amended, returned to Senate with amendment House 20020605 Reconsidered vote whereby the Senate Amendments were amended House 20020604 Debate adjourned until Wednesday, 20020605 Senate 20020604 Returned the Bill to the House House 20020530 Recalled from Senate House 20020530 Senate amendments amended, returned to Senate with amendment Senate 20020523 Amended, read third time, returned to House with amendment Senate 20020509 Read second time, notice of general amendments ------ 20020509 Scrivener's error corrected Senate 20020508 Committee report: Favorable 06 SF Senate 20020418 Introduced, read first time, 06 SF referred to Committee House 20020418 Read third time, sent to Senate House 20020417 Amended, read second time ------ 20020415 Scrivener's error corrected House 20020411 Committee report: Favorable with 30 HWM amendment House 20010827 Co-Sponsor added (Rule 5.2) by Rep. Easterday House 20010816 Introduced, read first time, 30 HWM referred to Committee Versions of This Bill Revised on April 11, 2002 - Word format Revised on April 15, 2002 - Word format Revised on April 17, 2002 - Word format Revised on May 8, 2002 - Word format Revised on May 9, 2002 - Word format Revised on May 23, 2002 - Word format Revised on May 30, 2002 - Word format Revised on June 6, 2002 - Word format
(A363, R466, H4337)
AN ACT TO AMEND SECTION 12-6-3910, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUE DATES FOR QUARTERLY PAYMENTS OF ESTIMATED STATE INCOME TAX BY ENACTING THE "SOUTH CAROLINA ESTIMATED INCOME TAX PAYMENT REFORM ACT", SO AS TO CHANGE THE DUE DATE FOR THE FIRST CORPORATE INCOME TAX ESTIMATED PAYMENT FROM MARCH 15 TO APRIL 15; TO AMEND SECTION 12-6-4980, RELATING TO EXTENSION OF TIME FOR FILING A STATE INCOME TAX RETURN, SO AS TO APPLY ITS PROVISIONS TO CORPORATE INCOME TAXPAYERS; TO AMEND SECTION 12-20-20, RELATING TO FILING OF CORPORATE ANNUAL REPORTS, SO AS TO MAKE A TECHNICAL CORRECTION; TO AMEND SECTION 12-54-55, RELATING TO INTEREST ON UNDERPAYMENT OF ESTIMATED TAX, SO AS TO DELETE SPECIFIC REQUIREMENTS FOR A CORPORATE TAXPAYER; TO AMEND SECTION 12-6-1130, RELATING TO COMPUTATION OF TAXABLE INCOME FOR STATE TAX PURPOSES, SO AS TO DELETE REFERENCES TO CERTAIN INTERNAL REVENUE CODE SECTIONS; TO AMEND SECTION 12-6-1140, AS AMENDED, RELATING TO DEDUCTIONS FROM INDIVIDUAL TAXABLE INCOME, SO AS TO PROVIDE FOR A THREE THOUSAND DOLLAR DEDUCTION FOR A VOLUNTEER FIREFIGHTER, RESCUE SQUAD MEMBER, OR VOLUNTEER MEMBER OF A HAZARDOUS MATERIALS RESPONSE TEAM (HAZMAT); TO AMEND SECTION 23-9-190, RELATING TO THE PERFORMANCE BASED POINT SYSTEM FOR VOLUNTEER EMERGENCY WORKERS, SO AS TO INCLUDE MEMBERS OF HAZMAT; TO AMEND SECTION 12-36-2610, RELATING TO THE DISCOUNT FOR PAYMENT OF THE SALES AND USE TAX, SO AS TO LIMIT THE DISCOUNT TO THREE THOUSAND ONE HUNDRED DOLLARS FOR A TAXPAYER FILING ELECTRONICALLY; TO AMEND SECTION 12-54-250, RELATING TO THE AUTHORITY OF THE DEPARTMENT OF REVENUE, SO AS TO REQUIRE PAYMENT ON IMMEDIATELY AVAILABLE FUNDS TO REDUCE THE DEBT THRESHOLD FROM TWENTY THOUSAND DOLLARS TO FIFTEEN THOUSAND DOLLARS; TO AMEND SECTION 12-4-580, AS AMENDED, RELATING TO THE AUTHORITY OF THE DEPARTMENT OF REVENUE TO CONTRACT FOR THE COLLECTION OF DEBTS, SO AS TO DELETE A REFERENCE TO PRIVATE INSTITUTION AS A GOVERNMENTAL ENTITY; AND TO PROVIDE VARIOUS EFFECTIVE DATES.
Be it enacted by the General Assembly of the State of South Carolina:
South Carolina Estimated Income Tax Payment Reform Act
SECTION 1. A. This act may be cited as the "South Carolina Estimated Income Tax Payment Reform Act".
B. Section 12-6-3910 of the 1976 Code is amended to read:
"Section 12-6-3910. (A) South Carolina estimated tax payments must be made in a form prescribed by the department in accordance with Internal Revenue Code Sections 6654 and 6655 except that:
(1) the small amount provisions in Internal Revenue Code Sections 6654(e)(1) and 6655(f) are one hundred dollars;
(2) income for the first installment for corporations is annualized using the first three months of the taxable year;
(3)(a) The due dates of the installment payments for calendar year taxpayers other than corporations are:
First quarter: April 15
Second quarter: June 15
Third quarter: September 15
Fourth quarter: January 15 of the following taxable year.
(b) The due dates of the installment payments for calendar year corporations are:
First quarter: April 15
Second quarter: June 15
Third quarter: September 15
Fourth quarter: December 15.
(c) In applying the estimated tax payment provisions to a taxable year beginning on a date other than January 1, the month that corresponds to the months specified above must be substituted.
(B) Payments required by this section are considered payments on account of income taxes imposed by this chapter and license fees imposed by Chapter 20 for the taxable year designated.
(C) To the extent that estimated tax payments and withholdings are in excess of the taxpayer's income tax and license fee liability as shown on the income tax return, the taxpayer may claim a:
(1) refund; or
(2) credit for estimated tax for the succeeding taxable year.
(D) For corporate taxpayers, estimated tax payments will be deemed to apply first to income taxes and then apply to license fees."
C. Section 12-6-4980(B) of the 1976 Code is amended to read:
"(B) When a taxpayer is not required to make a payment of tax at the time of the extension, and the taxpayer has been granted an extension of time to file a federal income tax return, the taxpayer is not required to apply to the department for an extension of time to file the South Carolina return. The department shall accept a copy, if applicable, of a properly filed federal extension attached to the South Carolina return when filed. Any taxes shown to be due on a return required pursuant to this chapter must be paid at the time the return is due to be filed, without regard to any extension of time granted for filing the return."
D. Section 12-20-20(C) of the 1976 Code is amended to read:
"(C) The department, for good cause, may allow an extension of time for filing an annual report. A request for an extension of time for filing an annual report must be filed in accordance with Section 12-6-4980. An extension of time for filing does not extend the time for paying the license fee due."
E. Section 12-54-55 of the 1976 Code is amended to read:
"Section 12-54-55. In the case of an underpayment of declaration of estimated tax by an individual, estate, trust, or corporate taxpayer, instead of all other penalties provided by law, there must be added to the tax for the taxable year a penalty to be determined as follows:
(1) in the case of an individual taxpayer, estate, or trust in the same manner as prescribed by the provisions of Internal Revenue Code Section 6654. No interest or penalty is due under this item for underpayments attributable to personal service income earned in another state on which income tax due the other state was withheld;
(2) in the case of a corporate taxpayer, in the same manner as prescribed by the provisions of Internal Revenue Code Section 6655 and applicable regulations, except that the small amount provisions are one hundred dollars."
F. This section takes effect upon approval by the Governor and applies for estimated taxes due after 2002.
Computation of taxable income
SECTION 2. Section 12-6-1130(9) of the 1976 Code is amended to read:
"(9) If for federal income tax purposes a taxpayer claims a credit which requires a reduction of basis to Section 38 property under Internal Revenue Code Section 50(c), the taxpayer may deduct the amount of the basis reduction for South Carolina income tax purposes by the amount of the basis reduction in the tax year in which basis is reduced for federal income tax purposes."
Deductions from taxable income; volunteer emergency workers; HAZMAT
SECTION 3. A. Section 12-6-1140(10) of the 1976 Code is amended to read:
"(10) three thousand dollars for a volunteer firefighter, rescue squad member, or volunteer member of a Hazardous Materials (HAZMAT) Response Team not otherwise eligible for this exemption. For taxable years after 2000, the Board of Economic Advisors annually shall estimate a maximum deduction that may be permitted under this section for a taxable year based on an individual income tax revenue loss of three million one hundred thousand dollars attributable to this deduction and shall certify that maximum deduction to the Department of Revenue and for the applicable taxable year, the maximum deduction amount must not exceed the lesser of the certified estimate or three thousand dollars. Only a volunteer earning a minimum number of points pursuant to Section 23-9-190 is eligible for this deduction."
B. Section 23-9-190 of the 1976 Code, as added by Act 100 of 1999, is amended to read:
"Section 23-9-190. (A) The State Fire Marshal shall establish a performance-based point system for volunteer firefighters, volunteer rescue squad members, and volunteer members of a Hazardous Materials (HAZMAT) Response Team. Members receiving annually a minimum number of points set by the Fire Marshal are eligible for the deduction allowed pursuant to Section 12-6-1140. Points must be awarded for a year as follows:
(1) participation in approved training, including:
(a) certified interior firefighter;
(b) emergency vehicle driver training;
(c) pump operations;
(d) incident command systems;
(e) rural water supply;
(f) automobile extrication;
(g) certified instructor training;
(h) certified inspector training;
( i) certified public fire education training;
( j) officer training;
(k) HAZMAT operations;
( l) HAZMAT technician;
(m) HAZMAT specialist;
(2) possessing a commercial or Class E driver's license;
(3) participation in first aid/medical training such as:
(a) first responder;
(b) EMT--basic;
(c) EMT--intermediate;
(d) paramedic;
(4) participation in public fire education programs;
(5) attendance at meetings;
(6) station staffing; and
(7) volunteer response.
(B) The Fire Marshal shall, in consultation with the South Carolina State Firemen's Association and in the case of volunteer HAZMAT teams, county emergency services directors:
(1) develop a standardized form and recordkeeping system and provide a master copy of all information and forms to each fire department, rescue squad, and HAZMAT Response Team in the State;
(2) provide training to the various fire chiefs or rescue squad leaders and county emergency services directors on the use of the forms and the outline of the program;
(3) advertise the availability of the program.
(C) The local fire chief/rescue squad leader and county emergency services director shall:
(1) provide written records to each member by January 31 of the year following the applicable tax year that shows the points obtained by each member for the previous tax year;
(2) maintain a copy of records for each member for at least seven years;
(3) certify the report for each member;
(4) provide to the Department of Revenue by January 31 of the year following the applicable tax year copies of the records forwarded to members pursuant to item (1) of this subsection. Each member's social security number must be included in the copies forwarded to the department."
Discount for payment of sales and use tax; payment in readily available funds
SECTION 4. A. Section 12-36-2610 of the 1976 Code is amended to read:
"Section 12-36-2610. When a sales or use tax return required by Section 12-36-2570 and Chapter 10 of Title 4 is filed and the taxes due on it are paid in full on or before the final due date, including any date to which the time for making the return and paying the tax has been extended pursuant to the provisions of Section 12-54-70, the taxpayer is allowed a discount as follows:
(1) on taxes shown to be due by the return of less than one hundred dollars, three percent;
(2) on taxes shown to be due by the return of one hundred dollars or more, two percent.
In no case is a discount allowed if the return, or the tax on it is received after the due date, pursuant to Section 12-36-2570, or after the expiration of any extension granted by the department. The discount permitted a taxpayer under this section may not exceed three thousand dollars during any one state fiscal year. However, for taxpayers filing electronically, the discount may not exceed three thousand one hundred dollars. A person making sales into this State who cannot be required to register for sales and use tax under applicable law but who nevertheless voluntarily registers to collect and remit use tax on items of tangible personal property sold to customers in this State is entitled to a discount on returns filed as otherwise provided in this section not to exceed ten thousand dollars during any one state fiscal year."
B. Section 12-54-250(A) of the 1976 Code is amended to read:
"(A) The South Carolina Department of Revenue may require, consistent with the cash management policies of the State Treasurer, that any person owing fifteen thousand dollars or more in connection with any return, report, or other document to be filed with the department shall pay the tax liability to the State no later than the date the payment is required by law to be made in funds which are available immediately to the State on the date of payment. Payment in immediately available funds may be made by any means established by the department, with the approval of the State Treasurer, which ensures the availability of those funds to the State on the date of payment. Evidence of the payment must be furnished to the department on or before the due date of the tax as provided by law. Failure to make timely payment in immediately available funds or failure to provide evidence of payment in a timely manner subjects the taxpayer to penalties and interest as provided by law for delinquent or deficient tax payments."
C. Section 12-4-580(D)(1) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:
"(1) 'Governmental entity' means the State and any state agency, board, committee, department, public institution of higher learning; all political subdivisions of the State; and all federal agencies, boards, and departments. '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."
D. Notwithstanding any other effective date in this act, this section takes effect July 1, 2002.
Time effective
SECTION 5. This act takes effect upon approval by the Governor and applies for taxable years beginning after 2002.
Ratified the 6th day of June, 2002.
Approved the 2nd day of August, 2002.
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