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AMENDED--NOT PRINTED IN THE HOUSE
Amt. No. 2a (council\nbd\amend\11836ac02)
Amt. No. 3a (council\gjk\amend\21431sd02)
Amt. No. 4a (council\bbm\amend\9224htc02)
May 30, 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. A. Section 12-6-1140(10) of the 1976 Code is amended to read:
"(10) three hundred dollars for taxable year 1999 and three thousand dollars for taxable year 2000 for a volunteer firefighter, or 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, and 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 drivers 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, and 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."
C. Section 12-6-1140(9) of the 1976 Code is amended to read:
"(9) DELETED three thousand dollars for a person serving as a reserve police officer. For purposes of this item, a reserve police officer is a person eligible to perform police functions under the provisions of Chapter 28 of Title 23 who, during the applicable taxable year, actually performed police functions. The department may require the taxpayer to provide the documentation necessary to determine eligibility for this deduction."
D. Notwithstanding the general effective date of this act, this section takes effect upon approval by the Governor and applies for taxable years beginning after 2001.
SECTION 6. (A) 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 renal disease, rheumatoid arthritis, and Crohn's disease, 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."
(B) This act takes effect January 1, 2004.
SECTION 7. 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. However, a 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 twenty 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 insures 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, private or 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.
SECTION 8. This act takes effect upon approval by the Governor and applies for taxable years beginning after 2002.
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