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April 19, 2001
Introduced by Reps. Vaughn, Kirsh, J.R. Smith, Koon, Dantzler, Davenport, Edge, Harvin, Keegan, Rivers and Bowers
S. Printed 4/19/01--H.
Read the first time April 5, 2001.
To whom was referred a Bill (H. 3900) to amend Section 12-36-2120, as amended, Code of Laws of South Carolina, 1976, relating to exemptions from the state sales and use tax, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
ROBERT W. HARRELL, JR. for Committee.
This bill is not expected to have and impact on General Fund sales and use tax revenue in FY2001-02.
Currently, prepared or packaged meals provided to elderly or disabled individuals at home by nonprofit organizations, such as "Meals-on-Wheels", are exempt from the five percent sales and use tax. Also, foodstuffs prepared or packaged for the homeless or needy that are sold to nonprofit organizations, and subsequently sold or donated to another nonprofit organization are exempt from the five percent sales and use tax. This bill would allow for-profit organizations the same sales and use tax exemption currently benefiting non-profit organizations. There would not be an increase in the amount of food being served, therefore, there would not be any change in the amount of sales tax revenue collected.
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 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM THE STATE SALES AND USE TAX, SO AS TO INCLUDE AN EXEMPTION FOR MEALS OR FOODSTUFFS THAT ARE PREPARED OR PACKAGED THAT ARE SOLD TO PUBLIC OR NONPROFIT ORGANIZATIONS FOR CONGREGATE OR IN-HOME SERVICE TO THE HOMELESS OR NEEDY OR DISABLED ADULTS OVER EIGHTEEN YEARS OF AGE OR INDIVIDUALS OVER THE AGE OF SIXTY AND TO APPLY THIS EXEMPTION ONLY TO MEALS AND FOODSTUFFS ELIGIBLE FOR PURCHASE UNDER THE FEDERAL FOOD STAMP PROGRAM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-2120(10) of the 1976 Code is amended by adding an appropriately lettered subitem to read:
"( ) meals or foodstuffs prepared or packaged that are sold to public or nonprofit organizations for congregate or in-home service to the homeless or needy or disabled adults over eighteen years of age or individuals over sixty years of age. This subitem only applies to meals and foodstuffs eligible for purchase under the USDA food stamp program."
SECTION 2. This act takes effect upon approval by the Governor.
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