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AS PASSED BY THE SENATE
May 23, 2002
H. 4337
Introduced by Reps. Campsen, Chellis, Barfield, Harrell and Easterday
S. Printed 5/23/02--S.
Read the first time April 18, 2002.
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.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
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 rather than five hundred dollars;
(2) income for the first installment for corporations is annualized using the first two 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: March 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 income tax for the succeeding taxable year; or.
(3) credit against the corporate license fee for the current taxable year in the case of corporations.
(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 other than a corporation 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 tax 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(A). 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:
(a) the small amount provisions are one hundred dollars rather than five hundred dollars;.
(b) the first installment payment for corporations is due on March 15, or in the case of a taxable year beginning on any date other than January 1, there is substituted the month which corresponds to that date; and
(c) for the annualized installment method, income for the first installment is annualized using the first two months of the taxable year."
F. This section takes effect upon approval by the Governor and applies for estimated taxes due after 2002.
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 48(q) or 49(d) 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. If a taxpayer makes an election under Internal Revenue Code Section 48(q)(4) to reduce the credit and not the basis, this subitem does not apply."
SECTION 3. A. Section 12-6-3535(A) of the 1976 Code, as added by an act of 2002 bearing ratification number 270, is amended to read:
"(A) A taxpayer who is allowed a federal income tax credit under Section 47 of the Internal Revenue Code for making qualified rehabilitation expenditures for a certified historic structure located in this State is allowed to claim a credit against the tax imposed by this chapter or Chapter 11 of this title. For the purposes of this section, 'taxpayer', 'qualified rehabilitation expenditures', and 'certified historic structure' are defined as provided in the Internal Revenue Code Section 47 and the applicable treasury regulations. The amount of the credit is ten percent of the expenditures that qualify for the federal credit. To claim the credit allowed by this subsection, the taxpayer must attach to the return a copy of the section of the federal income tax return showing the credit claimed, along with any other information that the Department of Revenue determines is necessary for the calculation of the credit provided by this subsection."
B. Notwithstanding the general effective date provided in this act, this section is effective as provided in Section 3 of an act of 2002 bearing ratification number 270.
SECTION 4. Section 12-36-2120(28)(a) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"(a) medicine and prosthetic devices sold by prescription, prescription medicines used in the treatment of respiratory syncytial virus (RSV), prescription medicines and therapeutic radiopharmaceuticals used in the treatment of cancer, lymphoma, leukemia, or related diseases, including prescription medicines used to relieve the effects of any such treatment, and free samples of prescription medicine distributed by its manufacturer and any use of these free samples."
SECTION 5. This act takes effect upon approval by the Governor and applies for taxable years beginning after 2002.
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