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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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