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H. 3829

STATUS INFORMATION

General Bill
Sponsors: Reps. Altman and Hagood
Document Path: l:\council\bills\gjk\20373sd05.doc
Companion/Similar bill(s): 158

Introduced in the House on March 31, 2005
Currently residing in the House Committee on Ways and Means

Summary: Food sales tax exemption

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   3/31/2005  House   Introduced and read first time
   3/31/2005  House   Referred to Committee on Ways and Means

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/31/2005

TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO REDUCE AT THE RATE OF ONE PERCENT A YEAR THE FIVE PERCENT STATE SALES TAX ON FOOD ITEMS WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO EXEMPT COMPLETELY FROM THE STATE PORTION OF THE TAX ALL SUCH FOOD AND MEALS EFFECTIVE JULY 1, 2009, AND TO PROVIDE FOR THE USE OF THE REVENUE FROM THE REDUCED RATES OF TAX DURING THE PHASE-IN PERIOD.

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

SECTION    1.    Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( )    effective July 1, 2009, food items eligible for purchase with United States Department of Agriculture food coupons, but this exemption does not apply for local sales and use taxes except where such taxes specifically exempt these items;"

SECTION    2.    Notwithstanding the rates of tax imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons, is four percent for sales from July 1, 2005, through June 30, 2006, three percent for such sales from July 1, 2006, through June 30, 2007, two percent for such sales from July 1, 2007, through June 30, 2008, and one percent for such sales from July 1, 2008, through June 30, 2009. Eighty percent of the revenues from sales taxes raised by the special tax rates provided by this section must be credited to the general fund of this State and used as sales taxes are used, and the remainder must be credited to the Education Improvement Act Fund. Except where otherwise exempt, the local sales and use taxes authorized by law continue to apply to those sales subject to the reduced state rate of tax provided in this section.

SECTION    3.    This act takes effect July 1, 2005.

This web page was last updated on Tuesday, June 23, 2009 at 3:36 P.M.