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H. 4025
STATUS INFORMATION
General Bill
Sponsors: Rep. Harrell
Document Path: l:\council\bills\dka\3453dw03.doc
Introduced in the House on April 22, 2003
Introduced in the Senate on May 27, 2003
Currently residing in the Senate Committee on Finance
Summary: Sales and use tax
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 4/22/2003 House Introduced and read first time HJ-16 4/22/2003 House Referred to Committee on Ways and Means HJ-16 5/15/2003 House Committee report: Favorable Ways and Means HJ-6 5/21/2003 House Read second time HJ-29 5/22/2003 House Read third time and sent to Senate HJ-22 5/27/2003 Senate Introduced and read first time SJ-20 5/27/2003 Senate Referred to Committee on Finance SJ-20
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
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Indicates New Matter
COMMITTEE REPORT
May 15, 2003
H. 4025
S. Printed 5/15/03--H.
Read the first time April 22, 2003.
To whom was referred a Bill (H. 4025) to amend Section 12-36-910, as amended, Code of Laws of South Carolina, 1976, relating to sales and use taxation, so as to tax only the taxable portion, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT 1/
The Board of Economic Advisors has reviewed this bill and determined that there is no impact on state or local revenue in FY 2003-04.
Explanation
This bill defines bundled transactions and allows bundled telecommunication services to be taxed only on the gross proceeds subject to the sales tax. Currently, South Carolina imposes a sales tax on local telephone calls made in South Carolina and exempts from sales tax any charges for long distance telephone calls. Except for mobile telecommunications, telephone services must be itemized on consumers' bills to ensure the correct tax treatment on long distance and local telephone service. When South Carolina adopted the definitions and provisions of the Mobile Telecommunications Sourcing Act pursuant to Act 334 of 2002, mobile telecommunication providers could offer bundled services, combining local, long distance and other services, and remit sales tax only on the taxable services such as the local telephone calls. This bill provides similar sales tax treatment on bundled transactions sold by non-mobile telecommunication providers. All telecommunication providers will still be required to remit sales tax on taxable services such as local telephone calls. Therefore, as this bill proposes no change in the taxability of telecommunication services, the Board of Economic Advisors has determined that there is no impact on state or local revenue in FY 2003-04.
Approved By:
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 12-36-910, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES AND USE TAXATION, SO AS TO TAX ONLY THE TAXABLE PORTION OF THE GROSS PROCEEDS FROM A TELECOMMUNICATIONS BUNDLED TRANSACTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-910(B)(3) of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:
"(3)(a) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages. Gross proceeds from the sale of prepaid wireless calling arrangements subject to tax at retail pursuant to item (5) of this subsection are not subject to tax pursuant to this item. Effective for bills rendered after August 1, 2002, charges for mobile telecommunications services subject to the tax under this item must be sourced in accordance with the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code. The term 'charges for mobile telecommunications services' is defined for purposes of this section the same as it is defined in the Mobile Telecommunications Sourcing Act. All other definitions and provisions of the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code are adopted;
(b)(i) for purposes of this item, a 'bundled transaction' means a transaction consisting of distinct and identifiable properties or services, which are sold for one nonitemized price but which are treated differently for tax purposes;
(ii) in the case of a bundled transaction that includes telecommunications services, if the nonitemized price is attributable to properties or services that are taxable and nontaxable, the portion of the price attributable to any nontaxable property or service is subject to tax unless the provider can reasonably identify that portion from its books and records kept in the regular course of business for purposes other than sales taxes."
SECTION 2. Upon approval by the Governor, this act takes effect January 1, 2004, and applies to sales tax on gross proceeds billed by telecommunications providers on or after that date.
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