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H. 3764

STATUS INFORMATION

General Bill
Sponsors: Rep. Kirsh
Document Path: l:\council\bills\ggs\22936htc05.doc

Introduced in the House on March 15, 2005
Currently residing in the House Committee on Ways and Means

Summary: Tangible personal property

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   3/15/2005  House   Introduced and read first time HJ-50
   3/15/2005  House   Referred to Committee on Ways and Means HJ-50

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/15/2005

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 23 IN CHAPTER 35 OF TITLE 11 SO AS TO REQUIRE STATE PROCUREMENTS OF TANGIBLE PERSONAL PROPERTY TO BE MADE FROM VENDORS WHO ARE LICENSED BY THE SOUTH CAROLINA DEPARTMENT OF REVENUE AND WHO AGREE TO REMIT SOUTH CAROLINA SALES AND USE TAX, TO PROVIDE FOR EXCEPTIONS TO THIS REQUIREMENT, AND TO PROVIDE FOR THE ENFORCEMENT OF THIS REQUIREMENT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Chapter 35, Title 11 of the 1976 Code is amended by adding:

Section 11-35-5510.    (A)    A governmental body or political subdivision may not contract to purchase tangible personal property, and a person may not contract to sell tangible personal property to a governmental body or political subdivision unless, before or upon entering into the contract, and during the term of the contract, the person contracting to sell the tangible personal property is licensed with the South Carolina Department of Revenue and agrees to remit sales and use tax pursuant to Chapter 36 of Title 12. The provisions of this section apply to all sellers, including nonresident sellers who may not be legally obligated to collect and remit the sales and use tax.

(B)    The licensing requirement of subsection (A) does not apply:

(1)    if all sales of tangible personal property by the person to governmental bodies, political subdivisions, or residents or businesses in this state are exempt from the sales and use tax pursuant to Section 12-36-2120; or,

(2)    to an affiliate of the person contracting with a governmental body or political subdivision if that affiliate is not selling tangible personal property to a governmental body, political subdivision, or a

resident or business in this state.

(C)    The provisions of this section do not apply:

(1)    if the State Budget and Control Board finds that it is in the best interest of the State not to enforce the provisions of this section with respect to a specific contract; or

(2)    if the Governor, after declaring a state of emergency, finds that it is in the best interest of the State not to enforce the provisions of this section in order directly to provide timely assistance with respect to the declared emergency.

(D)    As used in this section:

(1)    'person' has the meaning provided in Section 12-36-30 and includes every affiliate of the person contracting with a governmental body or political subdivision;

(2)    'affiliate' includes any person that bears a relationship, as set forth in Internal Revenue Code Section 267, to the person entering into a contract, or under contract, with the governmental body or political subdivision; and,

(3)    'tangible personal property' has the meaning provided in Section 12-36-60.

(E)    The State Budget and Control Board shall enforce the provisions of this section and may require governmental bodies and political subdivisions to incorporate within all contracts to purchase tangible personal property penalties that must be imposed upon the person contracting with the governmental body or political subdivision for failure to comply with this section.

(F)    Failure of the person contracting with a governmental body or political subdivision to comply with the provisions of this section allows the governmental body or political subdivision, at its discretion, immediately to void the contract, and impose any penalties established under this chapter or by contract for failure of the person to comply with the law. Any penalties imposed pursuant to this section must not be passed on to the governmental body or political subdivision."

SECTION    2.    This act takes effect upon approval by the Governor and applies for procurements beginning on or after that date.

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