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TO AMEND SECTION 12-2-75, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SIGNATORIES TO TAX RETURNS, SO AS TO AUTHORIZE A QUALIFIED TAX PREPARER TO SIGN ELECTRONICALLY; TO AMEND SECTION 12-4-30, RELATING TO COMPOSITION OF THE DEPARTMENT OF REVENUE, SO AS TO DELETE OUT-DATED LANGUAGE; TO AMEND SECTION 12-4-540, RELATING TO APPRAISAL, ASSESSMENT, AND EQUALIZATION OF TAXABLE VALUES OF CORPORATE PROPERTY, SO AS TO MAKE A GRAMMATICAL CHANGE; TO AMEND SECTION 12-6-50, AS AMENDED, RELATING TO SECTIONS OF THE INTERNAL REVENUE CODE NOT ADOPTED BY SOUTH CAROLINA, SO AS TO ADD A CROSS REFERENCE; TO AMEND SECTION 12-6-1170, RELATING TO INCOME DEDUCTION FROM TAXABLE RETIREMENT INCOME, SO AS TO ADD CLARIFYING LANGUAGE; TO AMEND SECTION 12-6-1720, RELATING TO TAXABLE INCOME REPORTABLE BY A NONRESIDENT, SO AS TO INCLUDE LOTTERY AND BINGO WINNINGS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE JOB TAX CREDIT, SO AS TO CORRECT A CROSS REFERENCE; TO AMEND SECTION 12-6-3570, AS AMENDED, RELATING TO TAX CREDITS FOR A MOTION PICTURE PRODUCTION COMPANY, SO AS TO CORRECT A CROSS REFERENCE; TO AMEND SECTION 12-10-80, AS AMENDED, RELATING TO JOB DEVELOPMENT CREDITS, SO AS TO PROVIDE THAT THE COUNTY DESIGNATION IS EFFECTIVE AS OF THE DATE THE APPLICATION FOR CREDITS IS RECEIVED; TO AMEND SECTION 12-54-55, AS AMENDED, RELATING TO INTEREST ON THE UNDERPAYMENT OF ESTIMATED TAX, SO AS TO INCLUDE SMALL AMOUNT PROVISIONS; TO AMEND SECTION 12-54-70, RELATING TO THE EXTENSION OF TIME FOR FILING TAX RETURNS, SO AS TO CLARIFY A CROSS REFERENCE; TO AMEND SECTION 12-54-110, AS AMENDED, RELATING TO THE POWER OF THE DEPARTMENT OF REVENUE TO SUMMON A PERSON, SO AS TO PROVIDE THAT AN ADMINISTRATIVE LAW JUDGE HOLD A CONTEMPT HEARING ON FAILURE TO COMPLY WITH A SUMMONS; AND TO AMEND SECTION 12-60-90, AS AMENDED, RELATING TO SANCTIONS AGAINST A PERSON AUTHORIZED TO REPRESENT A TAXPAYER ADMINISTRATIVELY, SO AS TO INCLUDE A MONETARY PENALTY AND MAKE A CLARIFICATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-2-75(B) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"(B) In the instructions to a return, or otherwise, the department may authorize taxpayers to sign returns by other means, including electronically, and may authorize the signature to be filed or deposited with and be kept or forwarded by a third party. To the extent that a tax return preparer, as that term is defined in Internal Revenue Code Section 7701(a)(36), is required or permitted to sign a return, the department in the instructions to a return, or otherwise, may authorize the tax return preparer to sign the return by other means, including electronically."
SECTION 2. Section 12-4-30 of the 1976 Code is amended to read:
"Section 12-4-30. (A) Until February 1, 1995, the department consists of three commissioners, their officers, agents, and employees. The commissioners are appointed by the Governor with the advice and consent of the Senate. Commissioners shall possess sound moral character, superior knowledge in taxation, and proven administrative ability. The Governor shall designate one of the commissioners as chairman, giving consideration to prior service as a commissioner or employee of the commission.
(B) If a vacancy on the commission occurs when the General Assembly is not in session, it must be filled by the Governor's appointment for the unexpired term, subject to confirmation by the Senate at the next session of the General Assembly. Commissioners may be removed by the Governor for cause as provided in Section 1-3-240.
(C) After February 1, 1995, the (A) The department will be is governed in matters of policy and administration by a director appointed by the Governor with the advice and consent of the Senate. The director may be removed from office pursuant to the provisions of Section 1-3-240.
(D)(B) After February 1, 1995, all All contested cases, as defined by Section 1-23-310 and as previously considered by the three commissioners, shall must be heard by an administrative law judge under pursuant to the provisions of Chapter 23 of Title 1."
SECTION 3. Section 12-4-540(A) of the 1976 Code is amended to read:
"(A)(1) The department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of corporate headquarters, corporate office facilities, and distribution facilities and of the real and personal property owned, used, by or leased by to the following businesses and used in the conduct of their business:
(1)(a) manufacturing;
(2)(b) railway;
(3)(c) private carline;
(4)(d) airline;
(5)(e) water, heat, light and power;
(6)(f) telephone;
(7)(g) cable television;
(8)(h) sewer;
(9) (i) pipeline;
(10)(j) mining.
(2) In addition, the department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of the personal property of merchants."
SECTION 4. Section 12-6-50(14) of the 1976 Code is amended to read:
"(14) Sections 2001 through 7655, 7801 through 7871, and 8001 through 9602, except for Section 6015, and except for Sections 6654 and 6655 which are adopted as provided in Section 12-6-3910 and Section 12-54-55."
SECTION 5. Section 12-6-1170(A)(1) of the 1976 Code is amended to read:
"(1) An individual taxpayer who is the original owner of a qualified retirement account is allowed an annual deduction from South Carolina taxable income of not more than three thousand dollars of retirement income received. Beginning in the year in which the taxpayer reaches age sixty-five, the taxpayer may deduct not more than ten thousand dollars of retirement income that is included in South Carolina taxable income."
SECTION 6. Section 12-6-1720(1) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"(1) South Carolina taxable income, gains, losses, or deductions include only amounts attributable to:
(a) the ownership of any interest in real or tangible personal property located in this State;
(b) a business, trade, profession, or occupation carried on in this State or compensation for services performed in this State. If a business, trade, profession, or occupation is carried on or compensation is for services performed partly within and partly without this State, the amount allocable or apportionable to this State under Article 17 of this chapter must be included in South Carolina income;
(c) income from intangible personal property, including annuities, dividends, interest, and gains that is derived from property employed in a trade, business, profession, or occupation carried on in this State. For purposes of this item, a taxpayer, other than a dealer holding property primarily for sale to customers in the ordinary course of the nonresident's trade or business, is not considered to carry on a business, trade, profession, or occupation in South Carolina solely by reason of the purchase and sale of property for the nonresident's own account;
(d) the distributive share of the South Carolina portion of partnership, 'S' Corporation, estate, and trust income, gains, losses, and deductions.;
(e) lottery or bingo winnings."
SECTION 7. Section 12-6-3360(N), as last amended by Act 332 of 2002, is further amended to read:
"(N) Except for employees employed in distressed counties, the maximum aggregate credit that may be claimed in any tax year for a single employee under pursuant to this section and Section 12-6-34(A)(1) 12-6-3470(A) is five thousand five hundred dollars."
SECTION 8. Section 12-6-3570(E) of the 1976 Code, as added by Act 299 of 2004, is amended to read:
"(E) All documentation provided by investors and their agents to the Department of Revenue in connection with claiming the credits allowed by this section is considered a tax return and subject to the penalty provisions of Section 12-54-40(f) in Chapter 54 of Title 12."
SECTION 9. Section 12-10-80(D)(3) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"(3) The county designation of the county in which the project is located at the time on the date the qualifying business enters into a preliminary revitalization agreement with the council application for job development credit incentives is received in the Office of the Coordinating Council remains in effect for the entire period of the revitalization agreement, except as to additional jobs created pursuant to an amendment to a revitalization agreement entered into before June 1, 1997, as provided in Section 12-10-60. In that case the county designation on the date of the amendment remains in effect for the remaining period of the revitalization agreement as to any additional jobs created after the effective date of the amendment. This item does not apply to a business whose application for job development fees or credits pursuant to Section 12-10-81 has been approved by council before the effective date of this act."
SECTION 10. Section 12-54-55(1) of the 1976 Code is amended to read:
"(1) in the case of an individual taxpayer, estate, or trust in the same manner as prescribed by the provisions of Internal Revenue Code Section 6654 and applicable regulations except that the small amount provisions are one hundred dollars. No interest or penalty is due under this item for underpayments attributable to personal service income earned in another state on which income tax due the other state was withheld;"
SECTION 11. Section 12-54-70(b) of the 1976 Code is amended to read:
"(b) If the amount remitted with the tentative return fails to reflect at least ninety percent of the tax to be paid for the period granted by the extension, a penalty as provided in Section 12-54-43(D) must be imposed from the date the tax was originally due on the difference between the amount remitted and the tax to be paid for the period."
SECTION 12. Section 12-54-110(D) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(D) If a person summoned pursuant to this section neglects or refuses to obey the summons, the department may apply to a circuit judge the Administrative Law Court for an attachment against him for contempt. Any judge Administrative Law Judge may hear the application and, if satisfactory proof is made, shall issue an attachment directed to the sheriff of the county in which the person resides for his arrest. When the person is brought before him, the judge shall proceed to a hearing of the case and may enforce obedience to the requirements of the summons by making an order consistent with existing laws for the punishment of contempt."
SECTION 13. Section 12-60-90(D) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(D) The department may suspend or disbar from practice in the administrative tax process or censure, any person authorized by these rules to represent taxpayers, if the person is shown to be incompetent, disreputable, or fails or refuses to comply with the rules in subsection (E), or in any manner, with intent to defraud, wilfully and knowingly deceives, misleads, or threatens any claimant person or prospective claimant person to be represented, by word, circular, letter, or by advertisement. The department may impose a monetary penalty on the representative, and if the representative was acting on behalf of an employer or any firm or other entity in connection with the conduct giving rise to the penalty, the department may impose a monetary penalty on the employer, firm, or entity if it knew, or reasonably should have known, of the conduct. The penalty may not exceed the gross income derived, or to be derived, from the conduct giving rise to the penalty and may be in addition to, or instead of, suspension, disbarment, or censure of the representative. For the purposes of this section, incompetence and disreputable conduct is defined in Section 10.51 of United States Treasury Department Circular No. 230. The department may review a petition for reinstatement as provided in Section 10.81."
SECTION 14. Section 12-60-90(F)(4) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(4) references to federal tax obligations mean include all South Carolina taxes, including property taxes and property tax assessments, where administered by the department."
SECTION 15. This act takes effect upon approval by the Governor.
This web page was last updated on Tuesday, June 23, 2009 at 2:28 P.M.