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TO AMEND SECTION 12-28-310, AS AMENDED, RELATING TO THE SIXTEEN CENTS A GALLON USER FEES ON MOTOR FUELS, SO AS TO REDUCE THIS USER FEE TO ELEVEN CENTS A GALLON, AND TO AMEND SECTIONS 12-28-2720, 12-28-2725, 12-28-2730, AS AMENDED, AND 12-28-2910, ALL RELATING TO MOTOR FUEL USER-FEE REVENUES, SO AS TO CONFORM THESE SECTIONS TO THE PROVISIONS OF THIS ACT, TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO DELETE THE EXEMPTIONS FROM THE STATE SALES TAX FOR FUELS SUBJECT TO THE USER FEE ON MOTOR FUELS AND REQUIRE THE REVENUE DERIVED FROM SALES TAX ON THIS FUEL TO BE CREDITED TO THE STATE HIGHWAY FUND AND USED FOR ROAD REPAIR AND MAINTENANCE, AND TO AMEND SECTIONS 56-11-410 AND 56-11-450, RELATING TO THE SIXTEEN CENTS A GALLON ROAD TAX ON MOTOR CARRIERS, SO AS TO REDUCE THIS TAX FROM SIXTEEN TO ELEVEN CENTS A GALLON AND IMPOSE AN ADDITIONAL ROAD TAX EQUAL TO STATE SALES TAX REVENUE ON MOTOR FUELS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-28-310 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-310. Subject to the exemptions provided in this chapter, a user fee of
sixteen eleven cents a gallon is imposed on all gasoline used or consumed in this State and upon all diesel fuel used or consumed in this State in producing or generating power for propelling motor vehicles. The user fee levied on motor fuel subject to the user fee pursuant to this chapter is a levy and assessment on the consumer, and the levy and assessment on other persons as specified in this chapter are as agents of the State for the collection of the user fee. This section does not affect the method of collecting the user fee as provided in this chapter. The user fee imposed by this section must be collected and paid at those times, in the manner, and by those persons specified in this chapter. The license user fee imposed by this section shall be is in lieu of all sales, use, or other excise tax which may otherwise be imposed by any municipality, county, or other local political subdivision of the State."
SECTION 2. Section 12-28-2720 of the 1976 Code is amended to read:
"Section 12-28-2720. The proceeds from
ten seven and thirty-four hundredths cents a gallon of the user fee on gasoline only as levied and provided for in this chapter must be turned over to the Department of Transportation for the purpose of that department."
SECTION 3. Section 12-28-2725 of the 1976 Code is amended to read:
Of the ten and thirty-four hundredths cents user fee on gasoline imposed pursuant to this chapter, An amount equal to twenty-five hundredths of a cent on each gallon subject to the user fee imposed by this chapter must be used by the department for mass transit.
The State Auditor annually shall conduct an audit to include an in-depth financial review of the state's regional transit authorities and eleemosynary organizations acting as regional transit authorities receiving funds from the Department of Transportation. Reimbursement for the audit must be paid from the funds provided in this section. A copy of the audit must be provided to the department. A report on these audits annually must be submitted to the General Assembly."
SECTION 4. Section 12-28-2730(A) of the 1976 Code, as last amended by Act 187 of 2002, is further amended:
"(A) An amount equal to the product of one percent
of the proceeds from multiplied by thirteen cents multiplied by the number of gallons subject to of the gasoline user fee imposed pursuant to this chapter must be transmitted to the Department of Natural Resources for a special water recreational resources fund of the State. All balances in the fund must be carried forward annually so that no part of it reverts to any other fund."
SECTION 5. Section 12-28-2910 of the 1976 Code is amended to read:
"Section 12-28-2910. The first eighteen million dollars generated from
three cents of the user fee levied in this chapter must be segregated in a separate account for economic development. This account may be expended only upon the authorization of the South Carolina Coordinating Council for Economic Development which shall establish project priorities. Funds devoted to the economic development account must remain in the account if not expended in the previous fiscal year. Annually, funds from the user fee must be deposited to replenish the account to the extent and in an amount necessary to maintain an uncommitted and/or an unobligated fund balance of eighteen million dollars but not to exceed eighteen million dollars for the ensuing fiscal year. The council may spend no more than two hundred fifty thousand dollars, in the first year only, for a long-term economic development plan, which must be submitted to the General Assembly on completion of the plan. The council may spend not more than sixty thousand dollars annually for a state infrastructure model.
All interest earnings on the Economic Development Account must be credited to the State Highway fund."
SECTION 6. Section 12-36-2120(15) of the 1976 Code is amended to read:
motor fuel, blended fuel, and alternative fuel subject to tax under Chapter 28 of Title 12; however, gasoline used in aircraft is not exempt from the sales and use tax;
(b) if the fuel tax is subsequently refunded under Section 12-28-710, the sales or use tax is due unless otherwise exempt, and the person receiving the refund is liable for the sales or use tax;
(c) fuels used in farm machinery and farm tractors ; and
(d) fuels used in commercial fishing vessels .;
(b) Notwithstanding any other provision of law, motor fuels subject to the user fee imposed pursuant to Chapter 28 of this title are exempt from all locally imposed sales and use taxes that are administered and collected by the Department of Revenue.
(c) Notwithstanding any other provisions of law providing for the uses of sales and use tax revenues, sales and use tax revenues on the gross proceeds of sales or sales price of motor fuels subject to the user fee imposed pursuant to Chapter 28 of this title are deemed for all purposes revenues of the motor fuels user fee imposed pursuant to Chapter 28 of this title. However, state highway fund revenues derived from sales and use tax must be used only for highway maintenance and repairs."
SECTION 7. Section 56-11-410 of the 1976 Code, as added by Act 459 of 1996, is amended to read:
"Section 56-11-410. A road tax for the privilege of using the streets and highways in this State is imposed upon every motor carrier. The tax is equivalent to
sixteen eleven cents a gallon plus an amount representing the state sales tax on the gross proceeds of sales of motor fuels, calculated on the amount of gasoline or other motor fuel used by the motor carrier in its operations within this State. Except as credit for certain taxes as provided for in this chapter, taxes imposed on motor carriers by this chapter are in addition to taxes imposed upon the carriers by any other provision of law."
SECTION 8. Section 56-11-450 of the 1976 Code, as added by Act 459 of 1996, is amended to read:
"Section 56-11-450. (A) Every motor carrier subject to the tax imposed under this chapter is entitled to a credit on the tax equivalent to
sixteen eleven cents per gallon plus state sales tax paid on all gasoline or other motor fuel purchased by the carrier within this State for use in operations either within or without this State and upon which gasoline or other motor fuel the tax imposed by the laws of this State has been paid by the carrier. Evidence of the payment of the tax in such form as may be required by or is satisfactory to the department must be furnished by each carrier claiming the credit.
(B) When the amount of the credit exceeds the amount of the tax for which the carrier is liable for the same quarter, the excess may, under regulations of the department, be allowed as a credit on the tax for which the carrier would be otherwise liable for another quarter or quarters. The department is authorized to refund the amount of the credit herein allowed if within its discretion the refund is preferable to the credit. The refund must be made only if the carrier has fully complied with all the rules and regulations of the department and the provisions of this chapter."
SECTION 9. This act takes effect July 1, 2004.
This web page was last updated on Thursday, June 25, 2009 at 10:01 A.M.