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COMMITTEE REPORT
April 22, 2004
H. 5086
S. Printed 4/22/04--H.
Read the first time April 7, 2004.
To whom was referred a Bill (H. 5086) to amend Section 4-29-67, as amended, Code of Laws of South Carolina, 1976, relating to the fee in lieu of property tax, so as to delete the net percent value method, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, beginning on page 23, by striking SECTION 26 in its entirety.
Amend further, by adding 8 appropriately numbered SECTIONS to read:
/ SECTION _____. Notwithstanding the provisions of Section 12-43-217 of the 1976 Code, the governing body of a county that pursuant to the provisions of Section 3.SS.1, Act 69 of 2003, postponed implementation of the values determined in a countywide assessment and equalization program until 2004, by ordinance may postpone the implementation for one additional property tax year.
SECTION _____. Article 7, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-1085. Except as provided in Section 12-21-1035 and Sections 12-21-1320 to 12-21-1350, the taxes provided for in this article are in lieu of all other taxes and licenses on beer and wine of the State, the county, or the municipality, except the sales and use tax, or Sections 6-1-700 through 6-1-770, and include licenses for its delivery by the wholesaler."
SECTION _____. Section 12-14-60(D) of the 1976 Code is amended to read:
"(D)(1) Unused credit allowed pursuant to this section may be carried forward for ten years from the close of the tax year in which the credit was earned.
(2) In the case of credit earned and unused within the initial ten-year period, a taxpayer may continue to carry forward unused credits for use in any subsequent tax years if the taxpayer:
(a) is engaged in this State in an activity or activities listed under the North American Industry Classification System Manual (NAICS) Section 31, 32, or 33;
(b)(i) is employing one thousand or more full-time workers in this State and having a total capital investment in this State of not less than five hundred million dollars; or
(ii) is employing eight hundred fifty or more full-time workers in this State and having a total capital investment in this State of not less than seven hundred fifty million dollars; and
(c) made a total capital investment of not less than fifty million dollars in the previous five years.
Credits carried forward beyond the initial ten-year period may not reduce a taxpayer's state income tax liability in any subsequent tax year by more than twenty-five percent."
SECTION _____. A. Chapter 49, Title 12 of the 1976 Code is amended by adding:
Section 12-49-1110. As used in this article:
(1) 'Auditor' means the officer charged by law with the assessment of ad valorem taxes and assessments and with the mailing of tax notices.
(2) 'Collateral' means the mobile or manufactured home in which a lienholder holds a security interest.
(3) 'Collateral list' means a written list, including all supplements, that a lienholder provides to a tax collector pursuant to this article, listing the lienholder's collateral that, according to the United States Postal Zip Codes shown in the lienholder's records as the mailing address where the collateral is cited, is or may be located within a county of this state.
(4) 'Department' means the South Carolina Department of Motor Vehicles or its successor.
(5) 'Lien' means a mortgage and a security agreement.
(6) 'Lienholder' means the owner, holder, and servicing agent of a security interest affecting a mobile or manufactured home as security for the payment of money.
(7) 'Mobile home' or 'manufactured home' is as defined as provided in Sections 12-43-230(b) and 40-29-20(9).
(8) 'Mortgage' means a mortgage, deed of trust, or other written instrument covering or affecting real property as security for the payment of money.
(9) 'Mortgagee' means the mortgagee identified in a mortgage of record or any holder or assignee of the mortgage.
(10) 'Mortgagee list' means a written list, including all supplements, that a mortgagee provides to a tax collector pursuant to this article, showing the current name and address of the mortgagee/holder of the mortgages listed thereon within a county of this state.
(11) 'Property' means real property, a manufactured home, or a mobile home.
(12) 'Office of the register of deeds' means the office in each county where real property deeds and mortgages are recorded.
(13) 'Security interest' means an interest created by a security agreement or other written instrument covering a mobile or manufactured home for the payment of money.
(14) 'Tax collector' means the officer charged by law with the collection of delinquent ad valorem taxes, assessments, penalties, and costs.
(15) 'Tax title' means a deed for real property and a bill of sale for personal property.
(16) 'The most current' means the latest in time.
Section 12-49-1120. When real property is levied upon for taxes by the tax collector, the tax collector shall give at least twenty days written notice of the levy to a mortgagee contained on the mortgagee list filed with the tax collector as provided in Section 12-49-1150. The period of twenty days shall begin to run from the time the notice is personally delivered or from the date of its mailing when delivered by registered mail as provided in this article. The notice must contain a description of the real property levied upon, including the tax map number assigned by the county, the name of the owner, the year or years for which the taxes were assessed, and a statement of the amount of the taxes with the accrued costs. The notice must be delivered to the mortgagees either personally or by registered mail with return receipt requested at the address(es) shown on the most current mortgagee list for a particular mortgagee. If delivered personally, the tax collector shall obtain a signed receipt from the mortgagee. Although a separate notice must be prepared for each parcel of real property to be sold, a tax collector may enclose in the same package or envelope multiple notices to be given to the same mortgagee at the same address.
Section 12-49-1130. The form of notice required pursuant to Section 12-49-1120 must be substantially as follows:
Notice is given to ____________________ as the holder of a certain mortgage recorded in the office of the_____________ in Book _______ at Page _______, of the county of __________, State of South Carolina, that there are now due and unpaid taxes for the year 20___ amounting to $__________, with accrued cost of $__________, for which a tax execution has been issued and levy made upon the following described real property owned by ____________________ and embraced within the mortgage, and that the real property will be advertised for sale unless such taxes are paid within twenty (20) days from the delivery of this notice as provided by law.
______________________________
Tax Collector
______________________________
Address
Date:_______________
Section 12-49-1140. The tax collector shall keep a record of each notice given under Section 12-49-1120 that contains the date the notice was delivered, the method of delivery, the address where the notice was delivered, and the name of the addressee of the notice.
Section 12-49-1150. To entitle a mortgagee to the notice required by Section 12-49-1120, a list of each mortgage as to which the notice is desired must be filed by the mortgagee with the tax collector of the county in which the real property covered by a mortgage lies on or before the fifteenth day of March of each year, on which must be shown the name and address of the mortgagee, the name of each mortgagor, and the book and page of the record where each mortgage listed is recorded.
Section 12-49-1160 The form of the mortgagee list for real property must be substantially as follows:
Mortgagee/Holder: __________________________
Address for Notice: __________________________
__________________________
Date: _______________
Name of Owner(s) Tax Map Book Page
or Mortgagor(s) Number of Record Number
Section 12-49-1170. The mortgagee list may be provided to the tax collector through any medium acceptable to the sender and the receiver. This medium may include: United States mail, hand delivery, express delivery, or e-mail. The sender shall maintain sufficient proof that the mortgagee list and any supplement were provided to the tax collector.
Section 12-49-1180. (A) The rights, interest, and security of a mortgagee complying with the provisions of Section 12-49-1150 are not affected by a tax sale and a deed of conveyance, unless the provisions of Section 12-49-1120 are complied with.
(B) Except as specifically provided in this article, the rights and remedies of a mortgagee granted elsewhere in this title are not affected by whether or not the mortgagee provides a mortgagee list of real property pursuant to 12-49-1150.
Section 12-49-1190. When a mobile or manufactured home is levied upon for taxes by the tax collector, the tax collector, at least forty-five days before the date of the tax sale, shall give written notice of the levy to any lienholders by following the procedures set forth in Section 12-49-1220. The notice must contain a description of the mobile or manufactured home levied upon, including the year, make/model, size and serial number, the name of the owner, the address and zip code where the mobile or manufactured home is located, the year or years for which the taxes were assessed, and a statement of the amount of the taxes with the accrued costs. The notice must be delivered to the lienholders either personally or by registered mail with return receipt requested at the addresses obtained by the tax collector by following the procedures set forth in Section 12-49-1220. If delivered personally, the tax collector must obtain a signed receipt from the lienholder. Although a separate notice must be prepared for each mobile or manufactured home to be sold, a tax collector may enclose in the same package or envelope multiple notices to be given to the same lienholder at the same address.
Section 12-49-1200. The form of the notice required by Section 12-49-1190 must be substantially as follows:
Notice is given to ____________________ as the holder of a certain lien on the mobile or manufactured home below described, that there are now due and unpaid taxes for the year 20___ in the amount of $__________ with accrued costs of $__________ for which a tax execution has been issued and levy made upon the described home owned by ____________________. The home will be advertised for sale unless the taxes are paid within forty-five (45) days from delivery of this notice as provided by law.
Date _____________
Section 12-49-1210. The tax collector shall keep a record of each notice given pursuant to Section 12-49-1190 that must contain the date the notice was delivered, the method of delivery, the address where the notice was delivered, and the name of the addressee of the notice.
Section 12-49-1220. (A) In providing the notice of levy and sale required in Section 12-49-1190 relating to mobile or manufactured homes, the tax collector shall comply with the procedures set forth in subsections (B) or (C), (D) and (E). However, nothing in this section requires the tax collector to send more than one notice of levy to a single lienholder at the same mailing address that is revealed multiple times by compliance with the different procedures set forth. If a single lienholder's name at different mailing addresses is revealed or would have been revealed by compliance with the procedures provided pursuant to this section, however, notice of levy must be sent to the lienholder at all these mailing addresses.
(B) For liens created before January 1, 1995, the tax collector shall provide the notice of levy to the lienholders contained on the certificate of title issued by the department. To obtain the name and address of the lienholders, the tax collector shall forward to the department a form substantially as provided below requesting the name and address of all lienholders shown on the certificate of title. The delinquent tax collector shall not advertise the sale of property without a return of this form:
To the Department of ____________________:
I have been instructed by the county treasurer to levy and sell the following personal property:
Please provide me with the lienholders' names and addresses as shown on the certificate of title:
NAME:
ADDRESS:
DESCRIPTION OF COLLATERAL:
VIN NUMBER:
LIENHOLDER:
LIENHOLDERS' ADDRESS:
(C) For liens created on or after January 1, 1995, the tax collector shall provide the notice of levy to the lienholders identified on the forms provided to the county officials pursuant to the licensing and moving permit procedures set forth in Chapter 17 of Title 31.
(D)(1) In addition to complying with the procedures set forth in either subsection (B) or (C), for tax years beginning January 1, 2002, and thereafter, the tax collector shall send the notice of levy required by this article to the lienholders at the addresses shown on the most current collateral list provided to the tax collector pursuant to Section 12-49-1230 by the lienholders holding a lien on the subject mobile or manufactured home. If a lienholder's most current collateral list, including any supplement, fails to disclose to the tax collector the lienholder's lien on a home that is to be sold, the lienholder is not entitled to notice pursuant to this subsection. If the collateral lists of two or more lienholders show the same subject mobile or manufactured home as their collateral, all the lienholders must be notified of the tax sale.
(2) If a lienholder provides the tax collector with a supplemental collateral list as described in subsection 12-49-1230(B) after July first of any given year and the tax collector intends to sell a mobile or manufactured home shown on that supplemental list for which the lienholder could not be properly identified by the tax collector's compliance with the procedures provided in subsections (B) or (C) and (D)(1) and (E), the tax collector shall give a notice to a newly-identified lienholder or to a lienholder at the newly-identified address, or both, the notice required by this subsection.
(a) If there are sixty-five or more days between the receipt by the tax collector of the supplemental collateral list and the date of the scheduled tax sale, the tax collector shall deliver to the newly-identified lienholder or at the newly-identified address, or both, the notice required by Section 12-49-1190 in the same manner and timing as provided in that section.
(b) If there are fewer than sixty-five days, but at least forty-five days between the receipt by the tax collector of the supplemental collateral list and the date of the scheduled tax sale, the tax collector shall deliver to the newly-identified lienholder or at the newly-identified address, or both, the notice required by Section 12-49-1190 in the same manner as required pursuant to that section, except that the notice must be given no fewer than twenty days before the date of the scheduled tax sale.
(c) If the tax sale has already occurred by the time the tax collector receives the supplemental collateral list, or if there are fewer than forty-five days between the receipt by the tax collector of the supplemental collateral list and the date of the scheduled tax sale, the tax collector is not required to deliver to the to the newly-identified lienholder or at the newly-identified address, or both, any notice pursuant to subsection (D)(2). Except to the extent that they are entitled to receive notice pursuant to subsections (B) or (C) and (D)(1) and (E), the only notice the newly-identified lienholders are entitled to receive, or known lienholders at a newly-identified address, under this subitem is a notice of their right of redemption pursuant to Chapter 51.
(E) In addition to following the procedures provided pursuant to subsections (B) or (C) and (D) for tax years beginning January 1, 2002, and thereafter, the tax collector shall send the notice of levy required by this article to the lienholders at the addresses provided to county officials pursuant to the licensing and moving permit procedures set forth in Chapter 17 of Title 31.
Section 12-49-1230. (A) By July first of each year, each lienholder may provide a written collateral list to the tax collector of each county in which the lienholder's collateral is located. The collateral list sent to a particular county must be derived by a lienholder sorting its accounts by United States Postal Zip Codes and by sorting those zip codes by the counties that have geographical areas covered by those zip codes. The zip codes used must be those shown in the lienholder's records as the mailing addresses where the collateral is sited. For those zip codes covering geographical areas that extend into multiple counties, the collateral list sent to all counties sharing the same zip codes must contain the information required by Section 12-49-1250.
(B) Any collateral list provided by a lienholder to a tax collector after July first and no later than December 31 of any year is considered a supplemental collateral list for purposes of the lienholder's right to receive notice of a tax levy and sale pursuant to Section 12-49-1190(D) for that same calendar year.
(C) Nothing in this section requires a lienholder to provide to the tax collector a collateral list annually or periodically. However, if a particular lienholder does not timely provide a collateral list to the tax collector for the year in which the tax collector intends to sell real property on which that lienholder holds a lien, the tax collector may rely on the most current information obtained pursuant to Section 12-49-1190, including but not limited to, a collateral list from a prior year.
Section 12-49-1240. The form of the collateral list and any supplement for mobile or manufactured homes must be substantially as follows:
Lienholder: _________________________
Address for Notice:___________________
Date: ______________________________
Name(s) of Owner(s):__________________
Address of Home:______________________
Other Address(es) of Owner(s):________________________
Zip Code:_____________________
Year of Home:_________________
Make/Model:_____________________
Size of Home:_____________________
Full Serial Number:____________________
Section 12-49-1250. The collateral list and any supplement may be provided to the tax collector through any medium acceptable to the sender and the receiver. The medium may include: U.S. mail, hand delivery, express delivery, or e-mail, but the sender shall maintain sufficient proof that the collateral list and any supplement were provided to the tax collector.
Section 12-49-1260. The collateral lists and any supplements must be maintained by the tax collector strictly and solely for the purposes set forth in this article. These collateral lists are exempt from disclosure pursuant to Chapter 4 of Title 30, The Freedom of Information Act. The tax collector is responsible for maintaining the confidentiality of these lists within his office. No person in the tax collector's office may give, release, or provide in any form or fashion to any person or entity the original or any photographic or electronic copy of the collateral lists or any list reconstructed from the tax collector's records that shows the owners of mobile or manufactured homes in any county and the names of the lienholders of these homes. The collateral lists must be used solely for the purposes of notifying the lienholders of impending tax sales and the expiration of redemption periods. Nothing in this section is intended to prevent a tax collector from integrating information obtained from the collateral lists into the tax collector's records in the same manner as the tax collector integrates information in his records obtained from other sources. Furthermore, nothing in this section is intended to prevent a tax collector from providing information to a person or entity about the name of the owner and lienholder of a particular mobile or manufactured home.
Section 12-49-1270. (A) Except as otherwise provided in Section 12-49-1220 or 12-49-1290, unless the tax collector complies with the provisions of Sections 12-49-1190 and 12-49-1220, the rights, interest, and security of any lienholder of a mobile or manufactured home is in no way affected by a tax sale and a transfer of title made pursuant to the tax sale.
(B) Except as specifically provided in this article, the rights and remedies of a lienholder of a mobile or manufactured home under the terms of the security documents or as otherwise provided in this title are not affected by whether or not a lienholder provides a collateral list to the tax collector or provides information to the auditor about where and to whom tax notices are to be sent.
Section 12-49-1280. Notwithstanding any other provisions of this article, none of the following circumstances are grounds for voiding a tax sale:
(1) The tax collector complied with Section 12-49-1220(B) but the return from the department did not provide the name and address of the current lienholder, and the lienholder's most current collateral list that was provided to the tax collector did not accurately reflect the name and address of the lienholder for the subject mobile or manufactured home, and the county had not been provided information about the lienholder and its address pursuant to the licensing and moving permit procedures set forth in Chapter 17 of Title 31.
(2) The subject mobile or manufactured home appeared on collateral lists of more than one lienholder and the tax collector did not notify all the lienholders, but nevertheless, the tax collector did notify the lienholders that did in fact hold liens on the subject mobile or manufactured home at the time the notice was given, and the notice was sent to the correct addresses of the lienholders holding the liens where the owner's account was being serviced at the time the notice was given.
(3) The lienholder that actually holds the lien on the subject mobile or manufactured home at the time the notice was given receives the notice at the correct address of the lienholder where the owner's account is being serviced, regardless of how the tax collector obtained the correct name and address of the lienholder.
Section 12-49-1290. Notwithstanding the provisions of this article, none of the following circumstances are a defense to a lienholder's effort to void a tax sale:
(1) The lienholder failed to provide the tax collector with a collateral list for one or more years, but the most current collateral list the lienholder did provide the tax collector, including any supplements described in Section 12-49-1220(D)(2)(a) and (b), showed that the lienholder held a lien on the particular mobile or manufactured home that was sold by the tax collector at a tax sale, or the county had been provided information about the lienholder and its address pursuant to the licensing and moving permit procedures set forth in Chapter 17 of Title 31.
(2) The tax collector attempted to provide the notice required by this article by providing a list to one or more lienholders of mobile or manufactured homes to be sold by that county without specifying which mobile or manufactured homes were the actual collateral of which of the lienholders. A tax collector does not comply with this article by sending to lienholders a list of all mobile or manufactured homes to be sold without specifying which of the homes are the collateral of which of the lienholders."
B. Section 12-43-220(c) of the 1976 Code, as last amended by Act 336 of 2002, is further amended by adding an appropriately numbered subitem at the end to read:
"( ) Notwithstanding any other provision of law, the owner-occupant of a legal residence qualifies for the four percent assessment ratio allowed by this item if the taxpayer's residence meets the requirements of Internal Revenue Code Section 280A(g) as defined in Section 12-6-40(A)."
C. Section 12-51-55 of the 1976 Code, as amended by Act 399 of 2000, is further amended to read:
"Section 12-51-55. The officer charged with the duty to sell real property and mobile or manufactured housing for nonpayment of ad valorem property taxes shall submit a bid on behalf of the Forfeited Land Commission equal to the amount of all unpaid property taxes, penalties, assessments, including but limited to assessments owed to a special taxing district established pursuant to Section 4-9-30, Chapter 19 of Title 4, or an assessment district established pursuant to Chapter 15 of Title 6, and costs including taxes levied for the year in which the redemption period begins. The Forfeited Land Commission is not required to bid on property known or reasonably suspected to be contaminated. If the contamination becomes known after the bid or while the commission holds the title, the title is voidable at the election of the commission. If the property is not redeemed, the excess above the amount of taxes, penalties, assessments, and costs for the year in which the property was sold must be applied first to the taxes becoming due during the redemption period."
D. Section 12-51-130 of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"Section 12-51-130. Upon failure of the defaulting taxpayer, a grantee from the owner, a mortgagee, a judgment creditor, or a lessee of the property to redeem realty within the time period allowed for redemption, the person officially charged with the collection of delinquent taxes, within thirty days or as soon after that as possible, shall make a tax title to the purchaser or the purchaser's assignee. Delivery of the tax title to the clerk of court or register of deeds is considered 'putting the purchaser, or assignee, in possession'. The tax title must include, among other things, the name of the defaulting taxpayer, the name of any grantee of record of the property, the date of execution, the date the realty was posted and by whom, and the dates each certified notice was mailed to the party or parties of interest, to whom mailed and whether or not received by the addressee. The successful purchaser, or assignee, is responsible in the amount of fifteen dollars for the actual cost of preparing the tax title plus documentary stamps necessary to be affixed and recording fees. The successful purchaser, or assignee, shall pay the amounts to the person officially charged with the collection of delinquent taxes before delivery of the tax title to the clerk of court or register of deeds and, upon payment, the person officially charged with the collection of delinquent taxes is responsible for promptly transmitting the tax title to the clerk of court or register of deeds for recording and remitting the recording fee and documentary stamps cost. If the tax sale of an item produced more cash than the full amount due in taxes, assessments, penalties, and costs, the overage belongs to the owner of record immediately before the end of the redemption period to be claimed or assigned according to law. These sums are payable ninety days after execution of the deed unless a judicial action is instituted during that time by another claimant. If neither claimed nor assigned within five years of date of public auction tax sale, the overage shall escheat to the general fund of the governing body. Before the escheat date unclaimed overages must be kept in a separate account and must be invested so as not to be idle and the governing body of the political subdivision is entitled to the earnings for keeping the overage. On escheat date the overage must be transferred to the general funds of the governing body."
E. Section 12-51-150 of the 1976 Code is amended to read:
"Section 12-51-150. In the case that the official in charge of the tax sale discovers before a tax title has passed, the failure of any action required to be properly performed, the official may void the tax sale and refund the amount paid, plus interest in the amount actually earned by the county on the amount refunded, to the successful bidder. If the full amount of the taxes, assessments, penalties, and costs have not been paid, the property must be brought to tax sale as soon as practicable."
F. Section 30-4-20(c) of the 1976 Code, as last amended by Act 339 of 2002, is further amended to read:
"(c) 'Public record' includes all books, papers, maps, photographs, cards, tapes, recordings, or other documentary materials regardless of physical form or characteristics prepared, owned, used, in the possession of, or retained by a public body. Records such as income tax returns, medical records, hospital medical staff reports, scholastic records, adoption records, records related to registration, and circulation of library materials which contain names or other personally identifying details regarding the users of public, private, school, college, technical college, university, and state institutional libraries and library systems, supported in whole or in part by public funds or expending public funds, or records which reveal the identity of the library patron checking out or requesting an item from the library or using other library services, except nonidentifying administrative and statistical reports of registration and circulation, and other records which by law are required to be closed to the public are not considered to be made open to the public under the provisions of this act;. Nothing herein authorizes or requires the disclosure of those records where the public body, prior to January 20, 1987, by a favorable vote of three-fourths of the membership, taken after receipt of a written request, concluded that the public interest was best served by not disclosing them. Nothing herein authorizes or requires the disclosure of records of the Board of Financial Institutions pertaining to applications and surveys for charters and branches of banks and savings and loan associations or surveys and examinations of the institutions required to be made by law. Information relating to security plans and devices proposed, adopted, installed, or utilized by a public body, other than amounts expended for adoption, implementation, or installation of these plans and devices, is required to be closed to the public and is not considered to be made open to the public under the provisions of this act. Public records do not include collateral lists of lienholders and supplements to the lists maintained by the tax collector pursuant to Article 9, Chapter 49, Title 12, and these lists and supplements are closed to the public and are not made open pursuant to this chapter."
SECTION _____. Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:
"Section 12-43-370. In cases of special purpose districts crossing county boundaries, the assessor and auditor in the county having the most recently implemented countywide equalization and reassessment program must adjust the millage accordingly in order to prevent the higher taxation of the most recently reassessed property."
SECTION _____. Subarticle 15, Article 3, Chapter 6, Title 61 of the 1976 Code is amended by adding:
"Section 61-6-1555. Notwithstanding any other provision of law, airline companies may purchase beer, wine, and alcoholic liquor directly from wholesalers licensed under the provisions of Section 61-4-520(3) or Section 61-6-100(2). Wholesalers may sell and deliver beer, wine, and alcoholic liquor to airline companies. It is a misdemeanor to use beer, wine, or alcoholic liquor purchased under the provisions of this section for any purpose other than the sale or use by the airline company on its airplanes."
SECTION _____. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) prescription and over-the-counter medicines and medical supplies, including diabetic supplies, sold to a health care clinic that provides medical and dental care without charge to all of its patients."
SECTION _____. A. Chapter 1, Title 4 of the 1976 Code is amended by adding:
"Section 4-1-160. Each county in which a joint industrial or business park is physically located that has entered into an agreement as defined in Section 4-1-170(A) shall file with the Department of Revenue, on forms provided by the department, a copy of the form within sixty days of the final reading of the ordinance or resolution which makes the joint industrial or business park agreement effective. The joint industrial or business park is not effective until the form is filed, but the department, for good cause, may waive the late filing for up to six months after the final reading. The department may specify the terms and conditions of the filing, including a requirement that the form be filed electronically. Information on the form, however, must reflect the relevant information required in the recapitulation as set forth in Section 4-12-45. The form is considered a public record for all purposes. The department is not responsible for the accuracy or updating, organizing, or collating the information it receives."
B. Section 4-12-25 of the 1976 Code, as amended by Act 69 of 2003, is further amended to read:
"Section 4-12-45. (A) All agreements entered into pursuant to this chapter must include as the first portion of the document a recapitulation of the remaining contents of the document which includes, but is not limited to, the following:
(1) the legal name of each party to the agreement;
(2) the county and street address of the project and property to be subject to the agreement;
(3) the minimum investment agreed upon;
(4) the length and term of the agreement;
(5) the assessment ratio applicable for each year of the agreement;
(6) the millage rate applicable for each year of the agreement;
(7) a schedule showing the amount of the fee and its calculation for each year of the agreement Reserved;
(8) a schedule showing the amount to be distributed annually to each of the affected taxing entities Reserved;
(9) a statement answering the following questions:
(a) Is the project to be located in a multi-county park formed pursuant to Chapter 29 of Title 4?;
(b) Is disposal of property subject to the fee allowed?;
(c) Will special source revenue bonds be issued or credits for infrastructure investment be allowed in connection with this project?;
(d) Will payment amounts be modified using a net present value calculation?; and
(e) Do replacement property provisions apply?;
(10) any other feature or aspect of the agreement which may affect the calculation of items (7) and (8) of this subsection Reserved;
(11) description of the effect upon the schedules required by items (7) and (8) of this subsection of any feature covered by items (9) and (10) not reflected in the schedules for items (7) and (8) of this subsection Reserved;
(12) which party or parties to the agreement are responsible for updating any information contained in the summary document.
(B) The auditor shall prepare a bill for each installment of the fee according to the schedule set forth in subsection (A)(7) or as modified pursuant to subsection (A)(10), (11), or (12) and that payment must be distributed to the affected taxing entities according to the schedule in subsection (A)(8) or as modified pursuant to subsection (A)(10), (11), or (12). Reserved
(C) The county and the sponsor and sponsor affiliates may agree to waive any or all of the items described in this section."
C. Section 4-29-67(W) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(W)(1) All agreements entered into pursuant to this section must include as the first portion of the document a recapitulation of the remaining contents of the document which includes, but is not limited to, the following:
(a) the legal name of each party to the agreement;
(b) the county and street address of the project and property to be subject to the agreement;
(c) the minimum investment agreed upon;
(d) the length and term of the agreement;
(e) the assessment ratio applicable for each year of the agreement;
(f) the millage rate applicable for each year of the agreement;
(g) a schedule showing the amount of the fee and its calculation for each year of the agreement Reserved;
(h) a schedule showing the amount to be distributed annually to each of the affected taxing entities Reserved;
(i) a statement answering the following questions:
(i) Is the project to be located in a multi-county park formed pursuant to Chapter 29 of Title 4?;
(ii) Is disposal of property subject to the fee allowed?;
(iii) Will special source revenue bonds be issued or credits for infrastructure investment be allowed in connection with this project?;
(iv) Will payment amounts be modified using a net present value calculation?; and
(v) Do replacement property provisions apply?;
(j) any other feature or aspect of the agreement which may affect the calculation of subitems (g) and (h) of this item Reserved;
(k) a description of the effect upon the schedules required by subitems (g) and (h) of this item of any feature covered by subitems (i) and (j) not reflected in the schedules for subitems (g) and (h) Reserved;
(l) which party or parties to the agreement are responsible for updating any information contained in the summary document.
(2) The auditor shall prepare a bill for each installment of the fee according to the schedule set forth in subitem (1)(g) or as modified pursuant to subitem (1)(j), (k), or (l) and that payment must be distributed to the affected taxing entities according to the schedule in subitem (1)(g) or as modified pursuant to subitem (1)(j), (k), or (l). Reserved
(3) The county and the sponsor and sponsor affiliates may agree to waive any or all of the items described in this subsection."
D. Section 12-44-55 of the 1976 Code, as amended by Act 69 of 2003, is further amended to read:
"Section 12-44-55. (A) All agreements entered into pursuant to this chapter must include as the first portion of the document a recapitulation of the remaining contents of the document which includes, but is not limited to, the following:
(1) the legal name of each party to the agreement;
(2) the county and street address of the project and property to be subject to the agreement;
(3) the minimum investment agreed upon;
(4) the length and term of the agreement;
(5) the assessment ratio applicable for each year of the agreement;
(6) the millage rate applicable for each year of the agreement;
(7) a schedule showing the amount of the fee and its calculation for each year of the agreementReserved;
(8) a schedule showing the amount to be distributed annually to each of the affected taxing entitiesReserved;
(9) a statement answering the following questions:
(a) Is the project to be located in a multi-county park formed pursuant to Chapter 29 of Title 4?;
(b) Is disposal of property subject to the fee allowed?;
(c) Will special source revenue bonds be issued or credits for infrastructure investment be allowed in connection with this project?;
(d) Will payment amounts be modified using a net present value calculation?; and
(e) Do replacement property provisions apply?
(10) any other feature or aspect of the agreement which may affect the calculation of items (7) and (8) of this subsectionReserved;
(11) a description of the effect upon the schedules required by items (7) and (8) of this subsection of any feature covered by items (9) and (10) not reflected in the schedules for items (7) and (8) of this subsectionReserved;
(12) which party or parties to the agreement are responsible for updating any information contained in the summary document.
(B) The auditor shall prepare a bill for each installment of the fee according to the schedule set forth in subsection (A)(7) or as modified pursuant to subsection (A)(10), (11), or (12) and that payment must be distributed to the affected taxing entities according to the schedule in subsection (A)(8) or as modified pursuant to subsection (A)(10), (11), or (12). The county and the sponsor and sponsor affiliates may agree to waive any or all of the items described in this section."
E. Notwithstanding the general effective date of this act, subsections A and B of this section are effective for joint business and industrial park agreements, inducement agreements, and fee agreements entered into after January 1, 2005. /
Renumber sections to conform.
Amend title to conform.
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT 1/
This bill would not impact general fund revenue in FY2004-05. This bill would increase DOR other fund revenue by an estimated $45,000 in FY2004-05 by expanding the current $1,000 annual fee assessed against companies claiming more than $10,000 in job development credits to include companies that claim more than $10,000 in job-retraining credits.
Explanation
This bill clarifies language, changes existing language by inserting omitted references and deleting obsolete sections, updates administrative procedures, and makes various other technical corrections to current law or procedure. The following section of the bill is expected to have a revenue impact on other funds in FY2004-05.
Section 12. This section would expand the current $1,000 annual fee assessed against companies claiming more than $10,000 in job development credits to include companies that claim more than $10,000 in job-retraining credits. According to DOR, an estimated 45 companies claim job-retraining credits in excess of $10,000 annually. Multiplying an estimated 45 companies currently meeting this criterion by the $1,000 fee proposed under this section increases DOR other fund revenue by an estimated $45,000 in FY2004-05.
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 4-29-67, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FEE IN LIEU OF PROPERTY TAX, SO AS TO DELETE THE NET PERCENT VALUE METHOD OF CALCULATING ANNUAL FEE PAYMENTS; TO AMEND SECTION 6-1-320, AS AMENDED, RELATING TO THE LIMITS ON ANNUAL INCREASES IN LOCAL GOVERNMENT AND SCHOOL DISTRICT PROPERTY TAX MILLAGE, SO AS TO CLARIFY THE METHOD OF CALCULATING THE ALLOWED CONSUMER PRICE INDEX INCREASE IN THE MILLAGE RATE; TO AMEND SECTION 12-6-1140, AS AMENDED, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA INDIVIDUAL TAXABLE INCOME FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO DELETE AN OBSOLETE DEDUCTION RELATING TO MEDICAL INSURANCE PREMIUMS; TO AMEND SECTION 12-6-2320, RELATING TO ALLOCATION AND APPORTIONMENT FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO PROVIDE FOR THE ALLOCATION OF DIVIDENDS; TO AMEND SECTION 12-6-3365, AS AMENDED, RELATING TO THE CORPORATE INCOME TAX MORATORIUM FOR JOB CREATION, SO AS TO CLARIFY THE APPLICATION OF THE MORATORIUM TO INSURANCE PREMIUM TAXES; TO AMEND SECTION 12-6-3480, RELATING TO TAX CREDITS, SO AS TO FURTHER PROVIDE THE MANNER IN WHICH CREDITS ARE ALLOWED AND MAY BE CLAIMED; TO AMEND SECTION 12-6-4910, AS AMENDED, RELATING TO THOSE REQUIRED TO FILE INCOME TAX RETURNS, SO AS TO PROVIDE FOR THOSE NONRESIDENTS REQUIRED TO FILE IN THIS STATE; TO AMEND SECTIONS 12-6-5020, AS AMENDED, AND 12-6-5030, RELATING TO THE FILING OF CONSOLIDATED CORPORATE INCOME TAX RETURNS AND COMPOSITE INDIVIDUAL INCOME TAX RETURNS, SO AS TO REQUIRE THE DETERMINATION OF CREDITS ON A CONSOLIDATED BASIS AND FURTHER PROVIDE FOR COMPOSITE RETURNS; TO AMEND SECTIONS 12-8-520 AND 12-8-1520, RELATING TO STATE INCOME TAX WITHHOLDING, SO AS TO PROVIDE FOR THE WITHHOLDING OF PARTNERSHIP AND SUBCHAPTER "S" CORPORATION INCOME OF NONRESIDENTS AND ADDITIONAL REQUIREMENTS FOR WITHHOLDING AGENTS; TO AMEND SECTION 12-10-105, RELATING TO ANNUAL FEES FOR JOB DEVELOPMENT CREDITS FOR PURPOSES OF THE ENTERPRISE ZONE ACT OF 1995, SO AS TO EXTEND THESE FEES TO JOB RETRAINING CREDITS IN EXCESS OF TEN THOUSAND DOLLARS AND PROVIDE FOR THE COLLECTION OF THESE FEES; TO AMEND SECTION 12-20-105, AS AMENDED, RELATING TO TAX CREDITS FOR PURPOSES OF THE CORPORATE LICENSE TAX, SO AS TO CLARIFY THE APPLICATION OF THESE CREDITS; TO AMEND SECTIONS 12-21-1090 AND 12-21-6550, RELATING TO LICENSE TAXES, SO AS TO PROVIDE FOR THE PERMISSIVE PROMULGATION OF REGULATIONS AND FURTHER PROVIDE FOR THE APPLICATIONS REQUIRED PURSUANT TO THE TOURISM INFRASTRUCTURE ADMISSIONS TAX ACT; TO AMEND SECTION 12-28-740, RELATING TO EXEMPTIONS FROM THE MOTOR FUELS USER FEE, SO AS TO DELETE A REFERENCE TO A CREDIT, BY ADDING SECTION 12-28-1400, SO AS TO REQUIRE SUCH REPORTING AS THE DEPARTMENT OF REVENUE MAY REQUIRE BY REGULATION FOR PURPOSES OF THE USER FEE ON MOTOR FUELS AND PROVIDE AN ADDITIONAL CIVIL PENALTY FOR VIOLATORS; TO AMEND SECTION 12-28-1730, AS AMENDED, RELATING TO PENALTIES FOR PURPOSES OF THE MOTOR FUELS TAX, SO AS TO DELETE A CIVIL PENALTY; TO AMEND SECTION 12-36-530, RELATING TO THE REQUIREMENT FOR THE RETURN OF A RETAIL LICENSE WHEN A BUSINESS CLOSES OR IS SOLD, SO AS TO ELIMINATE THE REQUIREMENT THAT THE TAX IS DUE AT THE TIME OF SALE AND CONSTITUTES A LIEN ON THE PROPERTY IN THE HANDS OF THE PURCHASER; TO AMEND SECTIONS 12-36-1310 AND 12-36-2120, BOTH AS AMENDED, AND SECTION 12-36-2510, RELATING TO THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO FURTHER PROVIDE FOR THE APPLICATION OF SALES TAX TO TELECOMMUNICATIONS SERVICES, AND PROVIDE FURTHER FOR THE ISSUE OF CERTIFICATES BY THE DEPARTMENT OF REVENUE FOR DIRECT PAY AND EXEMPTIONS AND PROVIDE FOR MORE EFFICIENT ADMINISTRATION OF SALES TAXES AND SALES TAX EXEMPTIONS; TO REPEAL SECTION 12-37-240, RELATING TO PAYMENTS IN LIEU OF TAXES BY EXEMPT NONPROFIT HOUSING CORPORATIONS; TO REPEAL SECTION 12-37-290, RELATING TO AN OBSOLETE HOMESTEAD EXEMPTION PROVISION; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO DELETE OBSOLETE REFERENCES IN EXISTING EXEMPTIONS; TO AMEND SECTION 12-37-230, RELATING TO SERVICE CONTRACTS WITH NONPROFIT HOUSING CORPORATIONS, SO AS TO ALLOW TAXING ENTITIES TO CHARGE REASONABLE FEES FOR SERVICES NOT TO EXCEED TAXES THAT WOULD OTHERWISE BE DUE ON THE PROPERTY, TO AMEND SECTIONS 12-44-30, 12-44-50, 12-44-55, 12-44-60, AND 12-44-140, ALL AS AMENDED, RELATING TO THE "FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997", SO AS TO ELIMINATE THE NET PERCENT VALUE METHOD OF CALCULATING THE ANNUAL FEE PAYMENT, BY ADDING SECTION 12-44-180, SO AS TO PROVIDE THOSE REQUIREMENTS FOR ELIMINATION OF THE NET PERCENT VALUE METHOD IN AN EXISTING FEE AGREEMENT; TO AMEND SECTIONS 12-54-25, AS AMENDED, 12-54-42, AND 12-54-43, AS AMENDED, RELATING TO THE UNIFORM METHOD OF COLLECTION AND ENFORCEMENT OF STATE LEVIED TAXES, SO AS TO CLARIFY WHEN INTEREST IS NOT DUE ON OVERPAYMENTS, TO CLARIFY THE APPLICATION OF PENALTIES FOR FAILING TO PROVIDE WITHHOLDING STATEMENTS, TO CLARIFY AND REVISE THE APPLICATION OF CIVIL PENALTIES FOR FILING GROUNDLESS RETURNS OR FOR MISUSE OF A SALES TAX CERTIFICATE; BY ADDING SECTION 12-54-123 SO AS TO PROTECT FROM LIABILITY A PERSON WHO SURRENDERS THE PROPERTY OF ANOTHER LEVIED ON BY THE DEPARTMENT OF REVENUE; TO AMEND SECTIONS 12-54-90, 12-54-210, AND 12-54-240, AS AMENDED, RELATING TO THE COLLECTION AND ENFORCEMENT OF STATE TAXES, SO AS TO ALLOW THE DEPARTMENT OF REVENUE TO REFUSE TO ISSUE A LICENSE TO A TAXPAYER IN VIOLATION AND TO DELETE NOTICE REQUIREMENTS AND TO INCREASE THE PENALTY FOR FAILURE TO KEEP RECORDS, FILE RETURNS, AND COMPLY WITH REGULATIONS, UPDATE REFERENCES RELATING TO THE CONFIDENTIALITY OF RETURNS, AND DELETE AN EXEMPTION TO THE CONFIDENTIALITY REQUIREMENTS FOR RECORDS SUBPOENAED BY A FEDERAL GRAND JURY; TO AMEND SECTION 12-58-185, AS AMENDED, RELATING TO THE TAXPAYERS' BILL OF RIGHTS, SO AS TO CLARIFY AND EXTEND THE APPLICATION OF HARDSHIP EXTENSIONS TO PAY; TO AMEND SECTIONS 12-60-420 AND 12-60-490, BOTH AS AMENDED, RELATING TO THE REVENUES PROCEDURE ACT, SO AS TO PROVIDE THAT THE APPLICATION OF A DIVISION DECISION OR A DETERMINATION OF DEFICIENCY APPLIES TO LOCAL TAXES ADMINISTERED BY THE DEPARTMENT OF REVENUE AND REQUIRE SUCH NOTICE TO PROVIDE THAT FAILURE TO FILE A PROTEST WILL RESULT IN A DECISION BECOMING FINAL AND TO PROVIDE FURTHER FOR SETOFFS AGAINST TAX REFUNDS; TO AMEND SECTION 61-4-720, AS AMENDED, RELATING TO THE REGULATION OF WINE, SO AS TO REPLACE THE LIMITATION TO DOMESTIC WINE WITH WINE PRODUCED ON THE PREMISES FOR WINE SALES AND TASTINGS AT LICENSED WINERIES IN THIS STATE; BY ADDING SECTION 61-4-725 SO AS TO ALLOW A LICENSED WINERY TO SELL, DELIVER, PERMIT ON-PREMISES CONSUMPTION ON SUNDAYS IN JURISDICTIONS WHERE MINIBOTTLE SALES ARE ALLOWED ON SUNDAYS; TO AMEND SECTIONS 61-4-730 AND 61-4-747, RELATING TO REGULATION OF WINE, SO AS TO REPLACE THE REQUIREMENT THAT PERMITTED WINERIES SELL ONLY DOMESTIC WINE WITH WINE PRODUCED IN THIS STATE IN ORDER TO SELL AND DELIVER WINE IN THIS STATE AND TO REQUIRE OUT-OF-STATE WINE SHIPPERS TO PAY SALES AND EXCISE TAXES ON WINE SHIPPED TO RESIDENTS OF THIS STATE BY JANUARY TWENTIETH OF EACH YEAR FOR THE PRECEDING YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. Section 4-29-67(D)(2)(b) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(b) an annual payment based on an alternative arrangement yielding a net present value of the sum of the fees for the life of the agreement not less than the net present value of the fee schedule as calculated pursuant to subsection (D)(2)(a). Net present value calculations performed pursuant to this subsection must use a discount rate equivalent to the yield in effect for new or existing United States Treasury bonds of similar maturity as published during the month in which the inducement agreement is executed. If no yield is available for the month in which the inducement agreement is executed, the last published yield for the appropriate maturity must be used. If there are no bonds of appropriate maturity available, bonds of different maturities may be averaged to obtain the appropriate maturity; or Reserved."
B. Section 4-29-67(F)(1) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(1) If a sponsor disposes of property subject to the fee, the fee must be reduced by the amount of the fee applicable to that property. Property is disposed of only when it is scrapped or sold or removed from the project. If it is removed from the project, it becomes subject to ad valorem property taxes to the extent it remains in the State. If the sponsor used any method to compute the fee other than that provided in subsection (D)(2)(a), the fee on the property which was disposed of must be recomputed in accordance with subsection (D)(2)(a) and to the extent the amount that would have been paid pursuant to subsection (D)(2)(a) exceeds the fee actually paid by the sponsor, the sponsor must pay the difference with the next fee payment due after the property is disposed of. If the sponsor used the method provided in subsection (D)(2)(c), the millage rate provided in subsection (D)(2)(c) must be used to calculate the amount which would have been paid pursuant to subsection (D)(2)(a). If there is no provision in the agreement dealing with the disposal of property in accordance with this subsection, the fee remains fixed and no adjustment to the fee is allowed for disposed property."
C. Section 4-29-67(F)(2)(b) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(b) the new replacement property that qualifies for the fee provided in subsection (D)(2) is recorded using its income tax basis, and the fee is calculated using the millage rate and assessment ratio provided on the original fee property. The fee payment for replacement property must be based on subsection (D)(2)(a) or (c) if the investor sponsor originally used that method, without regard to present value."
D. Section 4-29-67(V)(6) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(6) Notwithstanding subsection (D)(2)(b) of this section, in the case of a qualified recycling facility, net present value calculations performed pursuant to that subsection must use a discount rate equivalent to the yield in effect for new or existing United States Treasury bonds of similar maturity as published on any day selected by the sponsor during the year in which assets are placed into service or in which the inducement agreement is executed Reserved."
E. Section 4-29-67(W)(1)(i) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(i) a statement answering the following questions:
(i) Is the project to be located in a multi-county park formed pursuant to Chapter 29 of Title 4?;
(ii) Is disposal of property subject to the fee allowed?;
(iii) Will special source revenue bonds be issued or credits for infrastructure investment be allowed in connection with this project?; and
(iv) Will payment amounts be modified using a net present value calculation?; and
(v) Do replacement property provisions apply?;"
F.1. Section 4-29-67 of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding an appropriately lettered subsection at the end to read:
"( ) a sponsor and a county that have executed an inducement agreement for a fee pursuant to this section that allowed the fee to be calculated using the net present value payment method provided for in the former provisions of subsection (D)(2)(b), may agree to discontinue the use of the net present value payment method when calculating the fee. If the county and the sponsor agree to discontinue using the net present value payment method to calculate the fee, that decision is irrevocable and the sponsor shall pay to the county, within thirty days of an amendment to the agreement providing for the discontinued use of the net present value payment method, an additional fee payment equal to the difference between the total amount of the fee payments that would have been made as to all property subject to the fee by the sponsor if the standard fee calculation pursuant to subsection (D)(2)(a) had been used and the total amount of fee payments actually made by the sponsor. This amount is subject to interest as provided in Section 12-54-25."
2. The provisions of this subsection added in Section 4-29-67 of the 1976 Code by this section apply for all fee agreements executed before July 1, 2004.
G. Notwithstanding the general effective date of this act, this section takes effect upon approval of this act by the Governor, and except where otherwise specifically provided, applies for fee agreements entered into after June 30, 2004.
SECTION 2. Section 6-1-320(A) of the 1976 Code, as last amended by Act 114 of 1999, is further amended to read:
"(A) Notwithstanding Section 12-37-251(E), a local governing body may increase the millage rate imposed for general operating purposes above the rate imposed for such purposes for the preceding tax year only to the extent of the increase in the consumer price index for the in the average of the twelve monthly consumer price indexes for the most recent twelve-month period consisting of January through December of the preceding calendar year. However, in the year in which a reassessment program is implemented, the rollback millage, as calculated pursuant to Section 12-37-251(E), must be used in lieu of the previous year's millage rate."
SECTION 3. Section 12-6-1140(8) of the 1976 Code is amended to read:
"(8) RESERVED. the portion of premiums not deductible pursuant to Internal Revenue Code Section 162(l) because the "applicable percentage" as defined in that section is less than one hundred percent. "
SECTION 4. A. Section 12-6-2220(2) of the 1976 Code is amended to read:
"(2) Dividends received from corporate stocks owned not connected with the taxpayer's business, less all related expenses, are allocated to the state of the corporation's principal place of business as defined in Section 12-6-30(9) or the domicile of an individual taxpayer."
B. Section 12-6-2220(2) of the 1976 Code, as amended by this section, applies for taxable years beginning after 2003.
SECTION 5. A. Section 12-6-3365(A) of the 1976 Code, as amended by Act 69 of 2003, is further amended to read:
"(A) A taxpayer creating and maintaining at least one hundred full-time new jobs, as defined in Section 12-6-3360(M), at a facility of a type identified in Section 12-6-3360(M) may petition, utilizing the procedure in Section 12-6-2320(B), for a moratorium on state corporate income or insurance premium taxes imposed pursuant to Section 12-6-530 or insurance premium taxes imposed pursuant to Title 38 for the ten taxable years beginning the first full taxable year after the taxpayer qualifies and ending either ten years from that year or the year when the taxpayer's number of full-time new jobs falls below one hundred, whichever is earlier. For purposes of insurance premium taxes, the petition pursuant to Section 12-6-2320(B) must be made to and approved by the director of the Department of Insurance."
B. The amendment to Section 12-6-3365 of the 1976 Code in this section does not affect its repeal as provided in Section 3 of Act 277 of 2000.
SECTION 6. A. Section 12-6-3480 of the 1976 Code is amended to read:
"Section 12-6-3480. (A) Notwithstanding any other provision of law:
(1) Any credits under Title 38 may be applied against any taxes imposed under this chapter or license fees imposed under Chapter 20 of this title.
(2) Any credits under this chapter or Chapter 14 of this title which are earned by one member of a controlled group of corporations a corporation included in a consolidated corporate income tax return under Section 12-6-5020 may must be used and applied against the consolidated tax, unless otherwise specifically provided by that member and by any other members of the controlled group of corporations.
(3) Any limitations upon the total amount of liability for taxes or license fees that can be reduced by the use of a credit must be computed one credit at a time before any other another credit is used to reduce any remaining tax or license fee liability under this chapter or Chapter 20 of this title. Subject to item (4), The taxpayer may apply any credits arising under this chapter or Chapter 14 of this title in any order the taxpayer elects, and may apply a credit that is allowed for use against both taxes and license fees in any order, unless otherwise specifically provided, and against either one or both taxes and license fees in any given year, subject to specific limitations in the applicable credit statute and this item.
(4) No credit amount may be used more than once, and all credits must be used, to the extent possible in any given year, first by the company that earned them, and second against the tax which generated them. Unless otherwise provided by law, a tax credit administered by the department must be used to the extent possible in the year it is generated and cannot be refunded.
(5) As used in this section:,
(a) the term "controlled group of corporations" has the same meaning as provided under Section 1563 of the Internal Revenue Code without regard to Section 1563(a)(4), (b)(2)(A), only with respect to corporations which are in existence for less than one-half the number of days in the tax year referred to therein, and (b)(2)(C) and (D);
(b) the term 'tax credit' or 'credit' means a statutorily directed or authorized reduction in the tax liability made after any applicable tax rates are applied."
B. Section 12-6-3480 of the 1976 Code, as amended by this section, applies for taxable years beginning after 2003.
SECTION 7. A. Section 12-6-4910(1)(d) of the 1976 Code is amended to read:
"(d) a nonresident individual with South Carolina gross income greater than the personal exemption amount provided in Internal Revenue Code Section 151(d)."
B. Section 12-6-4910(1)(d) of the 1976 Code, as amended by this section, applies for taxable years beginning after 2004.
SECTION 8. A. Section 12-6-5020(F) of the 1976 Code is amended to read:
"(F) If a corporation which files or is required to file a consolidated return is entitled to one or more income tax credits, including the carryover of unused credits from prior years, the income tax credits may must be determined on a consolidated basis. Limitations on credits which refer to the income or the income tax liability of a corporation are deemed to refer to the income or income tax liability of the consolidated group, and credits shall reduce the consolidated group's tax liability regardless of whether or not the corporation entitled to the credit contributed to the tax liability or of the consolidated group."
B. Section 12-6-5020(F), as amended by this section, applies for taxable years beginning after 2003.
SECTION 9. A. Section 12-6-5030 of the 1976 Code is amended to read:
"Section 12-6-5030. (A) A partnership or 'S' Corporation may file a composite individual income tax return on behalf of the nonresident partners or shareholders that are individuals, or trusts, and or estates in which the income is taxed to the trust or estate, or the department may require that a partnership or 'S' Corporation file a composite individual income tax return on behalf of the nonresident partners or shareholders that are individuals, or trusts and estates in which the income is taxed to the trust or estate, provided that a nonresident partner or 'S' Corporation shareholder having taxable income within the jurisdiction of this State from sources other than the partnership or 'S' Corporation may not file as part of the composite return.
(B)(1) A composite return is one which combines the separate South Carolina tax liabilities of the nonresident partners or shareholders and a single return for two or more taxpayers having the same tax year in which each participant's share of the partnerships or 'S' Corporation's taxable income or loss is separately computed and added together to arrive at the total tax due on the composite return. The partnership or 'S' Corporation may elect to determine each participant's tax due by one of the following methods:
(a) compute the pro rata share of the standard deduction or itemized deductions, and personal exemption amount for each participant pursuant to Section 12-6-1720(2) in the same manner as if it was being separately reported; or
(b) compute each participant's share of South Carolina income without regard to any deductions or exemptions.
(2) The composite return is signed by a general partner or an authorized officer of the 'S' Corporation.
(C) If there is not sufficient information to determine the separate liability or the state of residence, then no deduction is allowed for personal exemptions, individual itemized deductions, or standard deductions.
(D)(1) A composite return may be filed even if some of the nonresident fiduciary and individual shareholders and partners eligible to participate in filing a composite return choose not to participate. Corporate taxpayers may not participate in a composite return.
(2) A nonresident participating in the composite return that has South Carolina income from sources other than the entity filing the composite return is required to file appropriate returns and make payment of all South Carolina taxes required by law. Taxes paid for the nonresident with the composite return shall reduce taxes due at the time the nonresident subject to this subitem files a separate return for the tax year reporting South Carolina income from all sources. The entity shall furnish to each nonresident a written statement as required by Section 12-8-1540(A) as proof of the amount that has been paid by the partnership or 'S' corporation as estimated payments for the nonresident and the amount paid for the nonresident with the composite return.
(E)(D) The department may establish procedures or promulgate rules and promulgate regulations necessary to carry out the provisions of this section."
B. Section 12-6-5030 of the 1976 Code, as amended by this section, applies for taxable years beginning after 2003.
SECTION 10. A. Subsections (A) and (D)(3) of Section 12-8-520 of the 1976 Code are amended to read:
"(A) An employer paying wages at the rate of eight hundred dollars or more a year to an employee shall withhold income tax for that employee if at the time of payment the wages are expected to equal one thousand dollars or more during the year, except as provided in (C), using the tables and rules promulgated by the department.
(3) for personal services performed on occasional, sporadic, or casual visits to in this State by nonresident employees in connection with their regular employment outside of this State; when the gross South Carolina wages are equal to or less than the personal exemption amount provided in Internal Revenue Code Section 151(d) as defined in Section 12-6-40. However, this item does not apply to employees performing construction, installation, engineering, or similar services are considered to have earned wages in this State if where the situs of the job is in this State;"
B. Subsections (A) and (D)(3) of Section 12-8-520 of the 1976 Code, as amended by this section, apply for taxable years beginning after 2004.
SECTION 11. A. Section 12-8-1520(A)(2) of the 1976 Code is amended to read:
"(2) If a resident withholding agent is required under the Internal Revenue Code to deposit withheld funds at a financial institution, then the withholding agent shall deposit the funds required to be withheld under this chapter at a financial institution selected by the State Treasurer, unless otherwise instructed by the department."
B. Section 12-8-1520 of the 1976 Code is amended by adding at the end:
"(D) Any withholding agent making at least twenty-four payments in a year must do so as provided in Section 12-54-250."
C. Section 12-8-1520(A)(2) of the 1976 Code, as amended in subsection A of this section, takes effect July 1, 2004. The amendment to Section 12-8-1520 in the 1976 Code in subsection (B) of this section applies for payments due after January 1, 2005.
SECTION 12. Section 12-10-105 of the 1976 Code, as added by Act 334 of 2002, is amended to read:
Section 12-10-105. In addition to the application fee provided in Section 12-10-100, an additional annual fee of one thousand dollars must be remitted by those qualifying businesses receiving claiming in excess of ten thousand dollars of job development credits or in excess of ten thousand dollars in job retraining credits in one calendar year . to the department The fee is due for each project that is subject to a revitalization or retraining agreement that exceeds ten thousand dollars in one calendar year and must be remitted to the Department of Revenue to be used to reimburse the department of Revenue for costs incurred auditing reports required pursuant to Section 12-10-80(A). The fee becomes due at the time the single project's claims for job development credits or job retraining credits exceeds ten thousand dollars for that calendar year.
SECTION 13. A. Subsections (B)(1) and (C) of Section 12-20-105 of the 1976 Code, as last amended by Act 69 of 2003, are further amended to read:
"(1) To be considered an eligible project for purposes of this section, the project must qualify for income tax credits under Chapter 6 of Title 12, withholding tax credit under Chapter 10 of Title 12, income tax credits under Chapter 14 of Title 12, or fees in lieu of property taxes under either Chapter 12 of Title 4, Chapter 29 of Title 4, Chapter 37 of Title 12, or Chapter 44 of Title 12.
(C) For the purpose of this section, 'infrastructure' means improvements for water, sewer, gas, steam, electric energy, and communication services made to a building or land that are considered necessary, suitable, or useful to an eligible project. These improvements include, but are not limited to:
(1) improvements to both public or private water and sewer systems;
(2) improvements to both public or private electric, natural gas, and telecommunications systems including, but not limited to, ones owned or leased by an electric cooperative, electric utility, or electric supplier, as defined in Chapter 27, Title 58;
(3) fixed transportation facilities including highway, road, rail, water, and air;
(4) for a qualifying project under subsection (B)(2), infrastructure improvements include industrial shell buildings and the purchase of land for an office, business, commercial, or industrial park which is owned or constructed by a county or political subdivision of this State."
B. Subsections (B)(1) and (C) of Section 12-20-105 of the 1976 Code, as amended by this section, apply for taxable years beginning after 2003.
SECTION 14. Section 12-21-1090 of the 1976 Code is amended to read:
"Section 12-21-1090. The department shall may promulgate rules and regulations for the payment and collection of the taxes levied by this article. The administrative provisions of Section 12-21-2870, wherever applicable, are hereby adopted for the administration and enforcement of the provisions of this article."
SECTION 15. A. Section 12-21-6550 of the 1976 Code is amended to read:
"Section 12-21-6550. In order to obtain the amounts provided in Sections 12-21-6530 and 12-21-6540:
(A) The county or municipality in which the major tourism or recreation facility or major tourism or recreation area is located must file with the Department of Parks, Recreation and Tourism a certification application. The Department of Parks, Recreation and Tourism shall review the application for completeness and accuracy and if necessary contact the county or municipality for additional information. A separate certification application must be filed for each tourism or recreation facility located in a tourism or recreation area. The certification application must be filed within one year of the end of the investment period.
(B) When the application is complete, the Department of Parks, Recreation and Tourism shall forward the application on to the department. The department must shall notify the county or the municipality, in writing, if the certification application has been approved.
(B)(C) A tourism or recreation facility for which a certification application has been filed must request a determination from the council as to the status of the tourism or recreation facility. The council must classify each tourism or recreation facility as a new tourism or recreation facility or an expansion to an existing tourism or recreation facility. If a tourism or recreation facility is classified as an expansion to an existing tourism or recreation facility, Section 12-21-6580 applies. The request for determination of classification must be included in the certification application. The department must forward a copy of the request to the council for its determination."
B. This section takes effect July 1, 2004.
SECTION 16. Section 12-28-740(3)(b) of the 1976 Code is amended to read:
"(b) by application for a refund or credit against its liabilities otherwise arising under this chapter, if the purchase is charged to a credit card issued to an eligible government entity, the issuer of the card elects to be the ultimate vendor, and the federal agency is billed without the user fee;"
SECTION 17. Article 13, Chapter 28, Title 28 of the 1976 Code is amended by adding:
"Section 12-28-1400. (A) All information required to be reported in this chapter must be used in the tracking of petroleum products and must be submitted in the manner prescribed by the department by regulation. The regulation must include, but not be limited to, the data elements, the format of the data elements, and the method and medium of transmission to the department.
(B) A person liable for reporting under this chapter who fails to meet the requirements of this section within three months after notification of the failure by the department, in addition to all other penalties prescribed by this chapter, is subject to an additional penalty of five thousand dollars for each month the failure continues."
SECTION 18. Subsections (C) and (F) of Section 12-28-1730 of the 1976 Code are amended to read:
"(C) Reserved. The department shall impose a civil penalty on the operator of a vehicle of two hundred dollars for the initial occurrence in each calendar year of a violation of the prohibition of use of dyed motor fuel subject to the user fee on the public highways of this State. Each subsequent offense in a calendar year is subject to a civil penalty of five thousand dollars.
(F) The department shall impose a civil penalty in an amount equivalent to that imposed by Section 6715 of the Internal Revenue Code on the operator of a vehicle who knowingly violates the prohibition on the sale or use of dyed fuel upon public highways of this State. The department shall impose a civil penalty in the amount of one thousand dollars or ten dollars for each gallon of dyed fuel involved, whichever is greater, on the operator of a vehicle that is used on the highways of this State, or is authorized or otherwise allowed to be used on the highways of this State, and who uses dyed fuel for the propulsion of that vehicle or who stores dyed fuel to be used for the propulsion of a vehicle on the highways of this State, regardless of whether any of such dyed fuel is used for a nontaxable purpose, unless permitted to do so under federal law.
For purposes of this section, the operator is the person responsible for the management and operation of the vehicle, whether as owner, lessee, or other party."
SECTION 19. Section 12-36-530 of the 1976 Code is amended to read:
"Section 12-36-530. Retailers, after closing or selling a business, must return the retail license to the department for cancellation and remit any unpaid or accrued taxes. The department may refuse to issue a new retail license to any person who has failed to comply with the provisions of this section.
In the case of sale of any business the tax is considered to be due at the time of the sale of the fixtures and equipment incident to the business and constitutes a lien against the stock of goods and the fixtures and equipment in the hands of the purchaser, or any other third party, until the tax is paid. The department may not issue a retail license to continue or conduct the business to the purchaser until all taxes due the State have been settled and paid."
SECTION 20. Section 12-36-1310(B) of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:
"(B) The use tax imposed by this article also applies to the:
(1) gross proceeds accruing or proceeding from the business of providing or furnishing any a laundering, dry cleaning, dyeing, or pressing service, but does not apply to the gross proceeds derived from coin operated laundromats and dry cleaning machines;
(2) gross proceeds accruing or proceeding from the sale of electricity;
(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) for bills rendered on or after January 1, 2004, that include telecommunications services in a bundled transaction, 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.
(4) fair market value of tangible personal property brought into this State, by the manufacturer thereof, for storage, use, or consumption in this State by the manufacturer.
(5) gross proceeds accruing or proceeding from the sale or recharge at retail for prepaid wireless calling arrangements.
(a) 'Prepaid wireless calling arrangements' means communication services that:
(i) are used exclusively to purchase wireless telecommunications;
(ii) are purchased in advance;
(iii) allow the purchaser to originate telephone calls by using an access number, authorization code, or other means entered manually or electronically; and
(iv) are sold in units or dollars which decline with use in a known amount.
(b) All charges for prepaid wireless calling arrangements must be sourced to the:
(i) location in this State where the over-the-counter sale took place;
(ii) shipping address if the sale did not take place at the seller's location and an item is shipped; or
(iii) either the billing address or location associated with the mobile telephone number if the sale did not take place at the seller's location and no item is shipped."
SECTION 21. A. Section 12-36-2510 of the 1976 Code is amended to read:
"Section 12-36-2510. (A)(1) Notwithstanding other provisions of this chapter, when, in the opinion of the department, the nature of a taxpayers business renders it impracticable for the taxpayer to account for the sales or use taxes, as imposed by this chapter, at the time of purchase, the department may issue its certificate to the taxpayer authorizing the purchase at wholesale and the taxpayer is liable for the taxes imposed by this chapter with respect to the gross proceeds of sale, or sales price, of the property withdrawn, used or consumed by the taxpayer within this State. at its discretion, may issue or authorize for the efficient administration of the sales and use tax law any type of certificate allowing a taxpayer to purchase tangible personal property tax free and be liable for any taxes.
(2) In addition to any other type of certificate the department considers necessary to issue, the department may issue at its discretion:
(a) Direct Pay Certificate: a direct pay certificate allows its holder to make all purchases tax free and to report and pay directly to the department any taxes due. The holder of a direct pay certificate is liable for any taxes due. If an exemption or exclusion is not applicable, the tax is due upon the withdrawal, use, or consumption of the tangible personal property purchased with the certificate.
(b) Exemption Certificate: an exemption certificate, as opposed to allowing its holder to make all purchases tax free, allows its holder to make only certain purchases tax free such as machinery, electricity, or raw materials. The holder of an exemption certificate is liable for any taxes due. If an exemption or exclusion is not applicable, the tax is due upon purchase, or upon the withdrawal, use, or consumption of the tangible personal property purchased with the certificate if the application of the exemption or exclusion cannot be determined at the time of purchase.
(B) To reduce the complexity and administrative burden of transactions exempt from sales or use tax, the following provisions must be followed when a purchaser claims an exemption by use of an exemption certificate:
(1) the seller shall obtain at the time of the purchase any information determined necessary by the department, including the reason the purchaser is claiming a tax exemption or exclusion;
(2) the department, at its discretion, may utilize a system where the purchaser exempt from the payment of the tax is issued an identification number which must be presented to the seller at the time of the sale;
(3) the seller shall maintain proper records of exempt or excluded transactions and provide them to the department when requested and in the form requested by the department.
(C) A seller that complies with the provisions of this section is relieved from any tax otherwise applicable if it is determined that the purchaser improperly claimed an exemption or exclusion by use of a certificate, provided the seller fraudulently did not fail to collect or remit the tax, or both, or solicit a purchaser to participate in an unlawful claim of an exemption. The liability for any tax shifts to the purchaser who improperly claimed the exemption or exclusion by use of the certificate."
B. This section takes effect October 1, 2004.
SECTION 22. Items (5) and (8) of Section 12-37-220(B) of the 1976 Code are amended to read:
"(5) All property of the American Legion, the Veterans of Foreign Wars, the Spanish American War Veterans, the Disabled American Veterans, and Fleet Reserve Association or any similar Veterans Organization chartered by the Congress of the United States, whether belonging to the department or to any of the Posts in this State when used exclusively for the purpose of such organization and not used for any purpose other than club rooms, offices, meeting places or other activities directly in keeping with the policy stated in the National Constitution of such organization, and such property is devoted entirely to its own uses and not held for 'pecuniary profit'. For the purposes of this item 'pecuniary profit' refers to income received from the sale of alcoholic beverages to persons other than bona fide members and their bona fide guests, or any income, any part of which inures to the benefit of any private individual. Where any structure or parcel of land is used partly for the purposes of such organization and partly for such pecuniary profits, the area for pecuniary profits shall be assessed separately and that portion shall be taxed.
(8) Properties of whatever nature or kind owned within the State and used or occupied by the Palmetto Junior Homemakers Association, the New Homemakers of South Carolina, the South Carolina Association of Future Farmers of America and the New Farmers of South Carolina, so long as such properties are used exclusively to promote vocational education or agriculture, better business methods and more effective organization for farming or to encourage thrift or provide recreation for persons studying agriculture or home economics in the public schools."
SECTION 23. A. Section 12-37-230 of the 1976 Code is amended to read:
"Section 12-37-230. When any a nonprofit housing corporation owns property within a county or municipality taxing entity which is exempted from ad valorem taxes under pursuant to Section 12-37-220, the county or the municipality or both are taxing entity is authorized to contract with such corporation for payments of charge the owners of the property reasonable fees for services rendered by the county or municipality taxing entity. Fees must not exceed the amount of taxes that would be levied on any of the subject property for any one service if the subject property were subject to ad valorem taxation."
B. Section 12-37-240 of the 1976 Code is repealed.
SECTION 24. Section 12-37-290 of the 1976 Code is repealed.
SECTION 25. A. Section 12-44-30(1) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(1) 'Alternative payment method' means fee payments as provided in Section 12-44-50(A)(3) Reserved."
B.(1) Section 12-44-50(A) of the 1976 Code, as last amended by Act 69 of 2003, is further amended by deleting item (3) which reads:
"(3) If the project subject to the fee agreement involves an investment of at least forty-five million dollars, the county and the sponsor may agree to pay the fees established in subsection (A)(1) based on an alternative payment method yielding a net present value of the fee schedule as calculated in subsection (A)(1) provided the sponsor agrees to a millage rate as established in subsection (A)(1)(b)(i). Net present value calculations must use a discount rate equivalent to the yield in effect for new or existing United States Treasury bonds of similar maturity as published during the month in which the fee agreement is executed. If no yield is available for the month in which the fee agreement is executed, the last published yield for the appropriate maturity available must be used. If there are no bonds of appropriate maturity available, bonds of different maturities may be averaged to obtain the appropriate maturity."
(2) Section 12-44-50(B) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(B)(1) If a sponsor disposes of an item of economic development property, the fee must be reduced by the amount of the fee applicable to that item of economic development property. Economic development property is disposed of only when it is scrapped or sold or it is removed from the project. If it is removed from the project, it is subject to ad valorem property taxes to the extent the property remains in the State.
(2) If the sponsor used an alternative payment method as provided in subsection (A)(3), the fee applicable to the item of property which was disposed of must be recomputed in accordance with subsection (A)(1) and, to the extent that the amount which would have been paid with respect to this item under subsection (A)(1) exceeds the fee actually paid by the sponsor, the sponsor shall pay the difference with the next annual fee payment due after the item of property is disposed of. This amount is subject to interest as provided in Section 12-54-25."
C. Section 12-44-55(A)(9) of the 1976 Code, as added by Act 334 of 2002, is amended to read:
"(9) a statement answering the following questions:
(a) Is the project to be located in a multi-county park formed pursuant to Chapter 29 of Title 4?;
(b) Is disposal of property subject to the fee allowed?;
(c) Will special source revenue bonds be issued or credits for infrastructure investment be allowed in connection with this project?; and
(d) Will payment amounts be modified using a net present value calculation?; and
(e) Do replacement property provisions apply?"
D. Section 12-44-60(C) of the 1976 Code is amended to read:
"(C) The new replacement property which qualifies for the fee provided in Section 12-44-50 is recorded using its income tax basis, and the fee is calculated using the millage rate and assessment ratio provided on the original economic development property. The fee payment for replacement property must be based on Section 12-44-50(A)(3) if the sponsor originally used an alternative payment method."
E. Section 12-44-140(A) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(A) The county and the sponsor may agree to terminate the fee agreement at any time. From the date of termination, all economic development property is subject to ad valorem taxation as imposed by law. If the sponsor used an alternative payment method, the sponsor shall pay to the county at the time of termination an additional fee payment equal to the difference between the total amount of the fee payments that would have been made with respect to the economic development property by the sponsor if the standard fee calculation under Section 12-44-50(A)(1) had been used and the total amount of fee payments actually made by the sponsor. This amount is subject to interest as provided in Section 12-54-25."
F.1 Chapter 44, Title 12 of the 1976 Code is amended by adding:
"Section 12-44-180. A sponsor and a county that have executed a fee agreement that allowed the fee to be calculated using the alternative payment method provided for in the former provisions of Section 12-44-50(A)(3), may agree to discontinue the use of the alternative payment method when calculating the fee. If the county and the sponsor agree to discontinue using the alternative payment method to calculate the fee, that decision is irrevocable and the sponsor shall pay to the county, within thirty days of an amendment to the agreement providing for the discontinued use of the alternative payment method, and an additional fee payment equal to the difference between the total amount of the fee payments that would have been made as to all economic development property by the sponsor if the standard fee calculation under Section 12-44-50(A)(1) had been used and the total amount of fee payments actually made by the sponsor. This amount is subject to interest as provided in Section 12-54-25."
2. The provisions of Section 12-44-180 of the 1976 Code, as added by this section, apply for all fee agreements executed before July 1, 2004.
G. Notwithstanding the general effective date of this act, this section takes effect upon approval of this act by the Governor and except where otherwise specifically provided, applies for fee agreements entered into after June 30, 2004.
SECTION 26. A. Section 12-54-25(C)(3) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"(3) Interest on an overpayment is not allowed pursuant to this subsection if it is refunded:
(a) within seventy-five days after the last day prescribed for filing the tax return, without regard to an extension of time for filing, or within seventy-five days after the last day prescribed for paying the tax if no return is required;
(b) within seventy-five days after the return is filed, in the case of a return filed after the last date; or
(c) within seventy-five days after the taxpayer files a claim for a credit or refund for the overpayment of tax for the period between the filing of the claim to the payment of the refund. ; or
(d) from three years after the original due date of the return, or the last day prescribed for paying the tax if no return is required, until seventy-five days after:
(i) the taxpayer files a claim for refund which contains all of the information required by Chapter 60 of this title, including the amount of the refund, and
(ii) the right of the taxpayer to the refund is not contingent on any future events. The provision of this subitem does not extend the time limitations for filing a claim for refund in Section 12-54-85."
B. Section 12-54-25 (c)(3) of the 1976 Code, as amended by this section, is effective for claims for refund filed after 2004.
SECTION 27. A. Subsections (a) and (b) of Section 12-54-42 of the 1976 Code are amended to read:
"(a) An employer A person who fails to comply with the provisions of Section 12-8-1540, requiring the furnishing of a withholding statement to employees is subject to a penalty of not less than one hundred dollars nor more than one thousand dollars for each violation.
(b) An employer A person who fails to comply with the provisions of Section 12-8-540(A)(1), requiring the filing of withholding statements with the department is subject to a penalty of not less than one hundred dollars nor more than two thousand dollars for each violation."
B. This section takes effect July 1, 2004.
SECTION 28. A. Section 12-54-43(I) of the 1976 Code is amended to read:
"(I) A person:
(1)(a) who files what purports to be a return of the tax imposed by a provision of law administered by the department but which:
(a)(i) does not contain information on which the substantial correctness of the tax liability may be judged; or
(b)(ii) contains information that on its face indicates the liability is substantially incorrect; and or
(b) who files a claim, a protest, or document, other than a return, that contains information that on its face indicates its position is substantially incorrect; and
(2) whose conduct is due to:
(a) a position which is frivolous or groundless; or
(b) a desire, which appears on the purported return, claim, protest, or document, to delay or impede the administration of state tax laws;
(3) is liable to a penalty of five hundred dollars for the first filing, twenty-five hundred dollars for the second filing, and five thousand dollars for each subsequent filing. This penalty is These penalties are in addition to all other penalties provided by law."
B. Section 12-54-43 of the 1976 Code, as last amended by Act 89 of 2001, is further amended by adding an appropriately lettered subsection at the end to read:
"( ) If a purchaser uses a resale, wholesale, or an exemption certificate issued or authorized by the department to purchase tangible personal property tax free which the purchaser knows is not excluded or exempt from the tax under the provisions of Chapter 36 of this title, then the purchaser, in addition to any other penalties due under this title, is liable for a penalty of five percent of the amount of the tax if the failure is for not more than one month, with an additional five percent for each additional month or fraction of the month during which the failure continues, not exceeding fifty percent in the aggregate. The provisions of this section do not apply to direct pay certificates."
C. Section 12-54-43(I) of the 1976 Code, as amended by subsection A. of this section, takes effect October 1, 2004. Section 12-54-43 of the 1976 Code, as amended by subsection B. of this section, takes effect July 1, 2004.
SECTION 29. Section 12-54-90(A) of the 1976 Code is amended to read:
"(A) When a person fails, neglects, violates, or refuses to comply with a provision of law or regulation administered by the department, the department, in its discretion, may refuse to issue a license to a taxpayer and may revoke one or more licenses held by the taxpayer. within ten days of notification in writing of the taxpayer's failure to comply. The notification may be served by certified mail or personally."
SECTION 30. A. Chapter 54, Title 12 of the 1976 Code is amended by adding:
"Section 12-54-123. A person in possession of property upon which a levy has been made who, upon demand by the department, surrenders the property to the department must not be held personally liable for any obligation or liability to the taxpayer and any other person with respect to the property that arises from the surrender or payment. If a person brings an action not allowed pursuant to this section in any court of this State, the court shall dismiss the case."
B. This section takes effect July 1, 2004.
SECTION 31. A. Section 12-54-210(A) of the 1976 Code is amended to read:
"(A) A person liable for a tax, license, fee, or surcharge administered by the department or for the filing of a return with the department, including information returns, required by this title shall keep books, papers, memoranda, records, render statements, make returns, and comply with regulations as the department prescribes. Persons failing to comply with the provisions of this section must be penalized in an amount to be assessed by the department not to exceed five hundred one thousand dollars for the period covered by the return in addition to other penalties provided by law."
B. This section takes effect July 1, 2004.
SECTION 32. A. Items (11) and (12) of Section 12-54-240(B) of the 1976 Code are amended to read:
"(11) disclosure of information contained on a return to the South Carolina Employment Security department Commission, Department of Revenue, or to the Department of the Treasury, Alcohol, and Tobacco Tax and Firearms Division Trade Bureau;
(12)(a) disclosure to any state agency, county auditor, or county assessor of whether a resident or nonresident tax return was filed by any particular taxpayer.;
(b) disclosure to any county auditor or county assessor of whether the four percent assessment pursuant to Section 12-43-220(c)(1) has been claimed by a taxpayer in any county."
B. Section 12-54-240(B)(24) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(24) disclosure of information pursuant to a subpoena issued by a federal grand jury or the State Grand Jury of South Carolina."
SECTION 33. Section 12-58-185(A) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:
"(A) The department, in its discretion, may accept installment payment payments for amounts due it for a period not to exceed one year from the date the payment was due originally. Interest accrues during the installment period, pursuant to Section 12-54-25. In addition, the department may extend the time for payment of an amount due it. An extension pursuant to this section may be granted only beyond one year if it is shown to the satisfaction of the department that the payment of the amount due it upon the date originally fixed for the payment will result in undue hardship to the taxpayer."
SECTION 34. A. Section 12-60-420 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-60-420. (A) If a division of the department makes a division decision or determines there is a deficiency in a state or local tax administered by the department, it may send by first class mail or deliver the division decision or the proposed assessment to the taxpayer. The division decision or the proposed assessment must explain the basis for the division decision or the proposed assessment and state that assessment will be made or the decision will become final unless the taxpayer protests the division decision or the proposed assessment as provided in Section 12-60-450.
(B) If the taxpayer fails to file a protest, the division decision or proposed assessment will become final and, if applicable, an assessment will be made for the amount of a proposed assessment. The department shall make available forms which taxpayers may use to protest the division decision or the proposed assessments. The division decision or the proposed assessment is effective if mailed to the taxpayer's last known address even if the taxpayer refuses or fails to take delivery, is deceased, or is under a legal disability, or, if a corporation, has terminated its existence. For a joint tax return or liability, one division decision or the proposed assessment may be mailed to both taxpayers unless the department has notice that the taxpayers have separate addresses in which event a duplicate original of the division decision or the proposed assessment must be sent to each taxpayer at his last known address."
B. This section takes effect January 1, 2004.
SECTION 35. Section 12-60-490 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-60-490. If a taxpayer is due a refund, the refund must be applied first against any amount of that same tax that is assessed and is currently due from the taxpayer. The remaining refund, if any, must then be applied against any other state taxes that have been assessed against the taxpayer and that are currently due, or offset as provided in Article 3, Chapter 54 Chapter 56 of this title, or offset to collect a debt pursuant to Section 12-4-580, or both. If any excess remains, the taxpayer must be refunded the amount plus interest as determined in Section 12-54-25, or, at the taxpayer's request, it may be credited to future tax liabilities."
SECTION 36. A. Section 61-4-720 of the 1976 Code, as last amended by Act 76 of 2001, is further amended to read:
"Section 61-4-720. Notwithstanding any other provision of law, a licensed winery located in this State which produces and sells only domestic wine as defined in Section 12-21-1010 is authorized to sell the domestic wine produced on its premises with an alcoholic content of sixteen percent or less on the winery premises and deliver or ship this wine to consumer homes in or outside the State. These domestic wineries are authorized to provide, with or without cost, wine taste samples to prospective customers."
B. This section takes effect July 1, 2004.
SECTION 37. A. Article 7, Chapter 4, Title 61 of the 1976 Code is amended by adding:
"Section 61-4-725. Notwithstanding any other provision of law, a licensed winery located in a county or municipality that has conducted a favorable referendum under the provisions of Section 61-6-2010, during those same hours authorized by permits issued under Section 61-6-2010, may sell, deliver, and permit the consumption of wine on the premises."
B. This section takes effect July 1, 2004.
SECTION 38. A. Section 61-4-730 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
Section 61-4-730. Permitted wineries which produce and sell only domestic wine as defined in Section 12-21-1010 located in this State may sell the wine produced in this State at retail, wholesale, or both, and deliver or ship the wine from the winery location to the purchaser in the State. Domestic Wine must be delivered between 7:00 a.m. and 7:00 p.m.
B. This section takes effect July 1, 2004.
SECTION 39. A. Section 61-4-747(C)(4) of the 1976 Code, as added by Act 40 of 2003, is amended to read:
"(4) annually, by August thirty-first January twentieth of each year, pay to the department all sales taxes and excise taxes due on sales to residents of this State in the preceding calendar year, the amount of the taxes to be calculated as if the sale were in this State at the location where delivery is made;"
B. Section 61-4-747(C)(4) of the 1976 Code, as amended by this section, applies for reports due after 2004.
SECTION 40. Except where otherwise provided, this act takes effect upon approval by the Governor.
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