South Carolina General Assembly
116th Session, 2005-2006

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Bill 3767

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Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

AMENDED

May 26, 2005

H. 3767

Introduced by Rep. Kirsh

S. Printed 5/26/05--S.

Read the first time April 20, 2005.

            

A BILL

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.

Amend Title To Conform

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.    A.        Chapter 58 of Title 12 of the 1976 Code is amended by adding:

"Section 12-58-190.    (A)    An officer or employee of the department may not deny a refund or delay the issuance of the department's order to the State Treasurer to pay a refund that has been determined to be due because the department is auditing or planning an audit of the taxpayer for a different tax or different tax period. This subsection does not prevent the issuance of an assessment, including a jeopardy assessment, pursuant to the Revenue Procedures Act.

(B)    A person violating subsection (A) is subject to disciplinary action in accordance with the department's procedure, including dismissal from office of discharge from employment."

B.     Section 12-58-170 of the 1976 Code is repealed.

SECTION    16.    A.        Section 12-54-43 of the 1976 Code, as last amended by Act 89 of 2001, is further amended by adding at the end:

"(L)    If a taxpayer asserts a value for property used in, or owned by, a business for property tax purposes that is fifty percent or more below the property's property tax value, there must be added to the tax an amount equal to the fifty percent of the underpayment which would have resulted if the value asserted had been accepted."

B.     This SECTION takes effect upon approval by the Governor and is applicable for tax years beginning after December 31, 2005.

SECTION    17.    Section 6-32-40(C)(3) of the 1976 Code, as added by Act 227 of 2004, is amended to read:

"(3)    The credit earned pursuant to this subsection by a general partnership, limited partnership, limited liability company, or any other entity taxed as a partnership pursuant to Subchapter K of the Internal Revenue Code must be passed through to its partners and may be allocated among any of its partners, including without limitation, an allocation of the entire credit to one partner, in a any manner agreed by the partners that is consistent with Subchapter K of the Internal Revenue Code. As used in this subsection, the term 'partner' means a partner, member, or owner of an interest in the pass through entity, as applicable."

SECTION    18.    Section 30-9-30(B)(1) and (2) of the 1976 Code, as added by Act 385 of 1998, are amended to read:

"(1)    If a person presents a conveyance, mortgage, judgment, lien, contract, or other document to the clerk of court or the register of deeds for filing or recording, the clerk of court or the register of deeds may refuse to accept the document for filing or recording if he reasonably believes that the conveyance, mortgage, judgment, lien, contract, or other document is materially false or fraudulent or is a sham legal process. However, if the person presenting the conveyance, mortgage, judgment, lien, contract, or other document to the clerk of court or the register of deeds resubmits the document within ten business days after the refusal with a sworn, written affidavit asserting the validity of the document and establishing the identity, mailing address, and phone number of all parties connected to the document, the clerk of court or register of deeds must accept the document for filing. Within thirty days of a written notice of such refusal, the person presenting the document may commence a suit in a state court of competent jurisdiction requiring the clerk of court or the register of deeds to accept the document for filing.

(2)    If the clerk of court or the register of deeds reasonably believes that a conveyance, mortgage, judgment, lien, contract, or other document is materially false or fraudulent, or is a sham legal process, or was not issued by a court of competent jurisdiction or appropriate government entity, the clerk of court or the register of deeds may remove the conveyance, mortgage, judgment, lien, contract, or other document from the public records after mailing giving thirty days written notice to the person on whose behalf the document was filed at the return address provided in the document and allowing at least ten business days for a response through the form of a sworn, written affidavit asserting the validity of the document and establishing the identity, mailing address, and phone number of all parties connected to the document. If a sworn, written affidavit is received by the clerk of court or register of deeds from the person on whose behalf the document was filed, the conveyance, mortgage, judgment, lien, contract, or other document must be accepted for filing. Within thirty days written notice of the proposed removal, the person providing the notice may commence a suit in a state court of competent jurisdiction preventing the clerk of court or the register of deeds from removing the document."

SECTION    19.    A.        Section 12-36-90(1)(c)(iii) of the 1976 Code is amended to read:

"(iii)        tangible personal property replacing defective parts under written warranty contracts if:

(A)    the warranty, maintenance, service, or similar contract is given without charge, at the time of original purchase of the defective property, or the tax was paid on the sale or renewal of warranty, maintenance, or similar service contract for tangible personal property of which the defective part was a component, whether or not such contract was purchased in conjunction with the sale of tangible personal property,

(B)    in the case of a warranty, maintenance, service, or similar contract that is given without charge at the time of original purchase of the defective property, the tax was paid on the sale of the defective part or on the sale of the property of which the defective part was a component, and

(C)    the warrantee is not charged for any labor or materials,"

B.     Section 12-36-910(B) of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding an appropriately numbered item at the end to read:

"( )    gross proceeds accruing or proceeding from the sale or renewal of warranty, maintenance, or similar service contracts for tangible property, whether or not such contracts are purchased in conjunction with the sale of tangible personal property."

C.     Section 12-36-1310(B) of the 1976 Code, as last amended by Act 334 of 2002, is further amended by adding an appropriately numbered item at the end to read:

"( )    gross proceeds accruing or proceeding from the sale or renewal of warranty, maintenance, or similar service contracts for tangible personal property, whether or not such contracts are purchased in conjunction with the sale of tangible personal property."

D.     This SECTION takes effect the first day of the fourth month after the approval of the Governor.

SECTION    20.    A.        Section 12-54-250 of the 1976 Code, is amended by adding:

"(F)(1)    A tax return preparer who prepares one hundred or more returns for a tax period for the same tax year shall submit all returns by electronic means where electronic means are available. Where electronic means are not available to file the return, but 2D barcode is available, the preparer must use 2D barcode. If a taxpayer checks a box on his return indicating a preference that his return is to be filed by another means, the preparer may submit that return by another means.

(2)    The department shall include a notice of this requirement in its form instructions and in the forms area of its website.

(3)    For the purposes of this subsection, tax return preparer means the business entity and not the individual location or individual completing the return.

(4)    If compliance with this section is a substantial financial hardship, a tax return preparer may apply in writing to the department to be exempted from these requirements. The department may grant an exemption for no more than one year at a time.

(5)    A person who fails to comply with the provisions of this section may be penalized in an amount to be assessed by the department equal to fifty dollars for each return."

B.    This SECTION takes effect upon approval by the Governor for tax years beginning on or after January 1, 2007.

SECTION    21.    A.    Section 12-6-5060 of the 1976 Code, as last amended by Act 308 of 2004, is further amended to read:

"Section 12-6-5060.    (A)    Each taxpayer required to file a state individual income tax return may contribute to the War Between the States Heritage Trust Fund established pursuant to Section 51-18-115, the Nongame Wildlife and Natural Areas Program Fund, the Children's Trust Fund of South Carolina established pursuant to Section 20-7-5010, the Eldercare Trust Fund of South Carolina established pursuant to Section 43-21-160, the First Steps to School Readiness Fund established pursuant to Section 20-7-9740, or the South Carolina Military Family Relief Fund established pursuant to Article 3, Chapter 11 of Title 25, the Gift of Life Trust Fund of South Carolina established pursuant to Section 44-43-1310, the Veterans' Trust Fund of South Carolina established pursuant to Chapter 21 of Title 25, the South Carolina Litter Control Enforcement Program (SCLCEP) and used by the Governor's Task Force on Litter only for the SCLCEP program, the South Carolina Law Enforcement Assistance Program (SCLEAP) and used as provided in Section 23-3-65, the South Carolina Department of Parks, Recreation, and Tourism for use in the South Carolina State Park Service in the manner the General Assembly provides, K-12 public education for use in the manner the General Assembly provides by law, or the South Carolina Conservation Bank Trust Fund established pursuant to Section 48-59-60, by designating the contribution on the return. The contribution may be made by reducing the income tax refund or by remitting additional payment by the amount designated.

(B)    All South Carolina individual income tax return forms must contain a designation for the above contributions. The instructions accompanying the income tax form must contain a description of the purposes for which the funds were established and the use of monies from the income tax contribution.

(C)    The department shall determine and report at least annually to the appropriate agency administering the fund or in the case of the Children's Trust Fund to the fund the total amount of contributions designated to the above funds. The department shall transfer the appropriate amount to each fund at the earliest possible time. The incremental cost of administration of the contribution must be paid out of retained by the department from the contributions before any funds are expended as provided in this section.

(D)    The Department of Natural Resources shall make a report to the General Assembly as early in January of each year as may be practicable, which must include the amount of revenue produced by the contributions and a detailed accounting of expenditures from the Nongame Wildlife and Natural Areas Fund.

(E)    For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33.

(F)    Revenues from the South Carolina Litter Control Enforcement Program Fund and the South Carolina Law Enforcement Assistance Program Fund carry forward into succeeding fiscal years and earnings of the funds must be credited to them."

B.     Sections 12-6-5065, 12-6-5070, 12-6-5080, 12-6-5085, and 12-6-5090 are repealed.

SECTION    22.    A.        Section 12-6-1130 of the 1976 Code, as last amended by Act 363 of 2002, is further amended by adding appropriately numbered items at the end to read:

"( )(a)    A deduction is not allowed a person for the accrual of an expense or interest if the payee is a related person and the payment is not made in the taxable year of accrual or before the payer's income tax return is due, without regard to extensions, for the taxable year of accrual. Except as provided in subitem (b), deductions disallowed pursuant to this section are allowed when the payment is made. The holder shall include the payment in income in the year the debtor is entitled to take the deduction. This section does not apply to payments deemed to be made by the application of South Carolina's adoption of Internal Revenue Code section 482, 7872, a similar provision of the Internal Revenue Code or state law.

(b)    Notwithstanding subitem (a), unless the Director is satisfied that tax avoidance is not a significant purpose of the transaction, an interest deduction is not allowed for the accrual or payment of interest on obligations issued as a dividend or paid instead of paying a dividend. This interest must be treated as a dividend to the debtor's shareholders when it is paid, and if the holder of the obligation is not a shareholder at that time, a payment from the shareholders to the holder at that time.

(c)    For purposes of this item, a related person includes a person that bears a relationship to the taxpayer as described in Section 267 of the Internal Revenue Code.

B.     This SECTION takes effect upon approval by the Governor and applies to taxable years beginning after 2005.

SECTION    23.    A.        1.    Chapter 2, Title 61 of the 1976 Code is amended by adding:

"Section 61-2-136.    Notwithstanding another provision of law, a currently licensed beer and wine wholesaler or currently licensed alcoholic liquor wholesaler who wishes to relocate the licensed business to a new location within the State must notify the department. This notice must be in writing, must precisely describe the premises to be licensed, must give the date of the move, and must be filed with the department at least thirty days prior to the move. Upon receipt of this notice, the department shall transfer the permit to the new premises effective on the date of the move."

2.    This section takes effect on the first day of the third month following approval by the Governor.

B.     Section 61-2-100 of the 1976 Code, as last amended by Act 442 of 1998, is further amended by adding appropriately numbered subsections at the end to read:

"(I)    The department may not issue a wholesale beer and wine permit pursuant to this title unless the applicant is a legal resident of the United States, and has been a legal resident of this State and has maintained his principal place of abode in this State for at least thirty days before the date of the application.

(J)    A misstatement or concealment of fact on an application for a license or permit pursuant to this title is sufficient grounds for the department to deny the application and to revoke a license or permit issued based on an application containing a misstatement or concealment of fact."

C.     Section 61-2-160 of the 1976 Code, as last amended by Act 415 of 1996, is further amended to read:

"Section 61-2-160.    No A license or permit under pursuant to the provisions of this title may must not be issued, renewed, or transferred unless the department and the Internal Revenue Service determine determines that the applicant does not owe the state or federal government State delinquent taxes, penalties, or interest. If the department or the Internal Revenue Service determine determines that delinquent taxes, penalties, or interest are due, the department must shall notify the applicant of the necessary requirements to comply with this section."

D.     Section 61-4-520 of the 1976 Code is amended to read:

"Section 61-4-520.    No A retail permit authorizing the sale of beer or wine may must not be issued unless:

(1)    The applicant, any a partner, or co-shareholder of the applicant, and each agent, employee, and servant of the applicant to be employed on the licensed premises are of good moral character.

(2)    The retail applicant is a legal resident of the United States, has been a legal resident of this State for at least thirty days before the date of application, and has maintained his principal place of abode in the State for at least thirty days before the date of application.

(3)    The wholesale applicant is a legal resident of the United States and has been a legal resident of this State for at least thirty days before the date of application and has maintained his principal place of abode in the State for at least thirty days before the date of application or has been licensed previously under the laws of this State.

(4)    The applicant, within two years before the date of application, has not had revoked a beer or a wine permit issued to him.

(5)(4)    The applicant is twenty-one years of age or older.

(6)(5)    The location of the proposed place of business of the applicant is in the opinion of the department a proper one.

(7)(6)    The department may consider, among other factors, as indications of unsuitable location, the proximity to residences, schools, playgrounds, and churches. This item does not apply to locations licensed before April 21, 1986.

(8)(7)(a)    Notice of application has appeared at least once a week for three consecutive weeks in a newspaper most likely to give notice to interested citizens of the county, city, or community in which the applicant proposes to engage in business. The department shall determine which newspapers meet the requirements of this section based on available circulation figures. However, if a newspaper is published in the county and historically has been the newspaper where the advertisements are published, the advertisements published in that newspaper meet the requirements of this section. The notice must:

(a)(i)    be in the legal notices section of the newspaper or an equivalent section if the newspaper has no legal notices section;

(b)(ii)    be in large type, covering a space of one column wide and at least two inches deep; and

(c)(iii)    state the type license applied for and the exact location of the proposed business.

(b)An applicant for a beer or wine permit and an alcoholic liquor license may use the same advertisement for both if the advertisement is approved by the department.

(9)(8)    Notice has been given by displaying a sign for fifteen days at the site of the proposed business. The sign must:

(a)    state the type of permit sought;

(b)    state where an interested person may protest the application;

(c)    be in bold type;

(d)    cover a space at least twelve inches high and eighteen inches wide;

(e)    be posted and removed by an agent of the division."

E.     Section 61-4-525 of the 1976 Code is amended to read:

"Section 61-4-525.    (A)    A person residing in the county in which a retail beer and wine permit is requested to be granted, or a person residing within five miles of the location for which a retail beer and wine permit is requested, may protest the issuance or renewal of the permit if he files a written protest setting forth:

(1)    the name, address, and telephone number of the person filing the protest;

(2)    the name of the applicant for the permit and the address of the premises sought to be licensed, or the name and address of the permit holder if the application is for renewal;

(3)    the specific reasons why the application should be denied; and

(4)    whether or not he wishes to attend a contested case hearing before the Administrative Law Judge Division Court.

(B)    Upon receipt of a timely filed protest, the department shall determine the protestant's intent to attend a contested hearing before the Administrative Law Judge Division Court. If the protestant intends to attend a contested hearing, the department may not issue the permanent permit but shall forward the file to the Administrative Law Judge Division Court.

(C)    If the protestant, during the investigation expresses no desire to attend a contested hearing and offer testimony, the protest is deemed considered invalid, and the department shall continue to process the application and shall issue the permit if all other statutory requirements are met.

(D)    A person who files a protest and fails to appear at a hearing after affirming a desire to attend the hearing may be assessed a fine or penalty to include court costs."

F.     Section 61-6-1540(B) of the 1976 Code is amended to read:

"(B)    Retail dealers licensed under pursuant to the ABC Act may sell all wines in the stores or places of business covered by their respective licenses, whether declared alcoholic or nonalcoholic or nonintoxicating by the laws of this State. Wines containing more than fourteen sixteen percent of alcohol by volume may be sold only in licensed alcoholic liquor stores or in establishments licensed to sell and permit consumption of alcoholic liquors in minibottles. The provisions of this section must do not be construed to amend, alter, or modify the taxes imposed on wines or the collection and enforcement of these taxes."

G.     Section 12-60-510 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"Section 12-60-510.    (A)    Before a taxpayer may seek a contested case hearing before the Administrative Law Judge Division Court, he shall exhaust the prehearing remedy.

(1)    If a taxpayer requests a contested case hearing before the Administrative Law Judge Division Court within ninety days of the date of the proposed assessment without exhausting his prehearing remedy because he failed to file a protest with the department, the administrative law judge shall dismiss the action without prejudice. If the taxpayer failed timely to provide the department with the facts, law, and other authority supporting his position, he shall provide them to the department with the facts, law, and other authority he failed to present to the department earlier. The administrative law judge shall then remand the case to the department for reconsideration in light of the new facts or issues unless the department elects to forego the remand.

(2)    If a taxpayer fails to file a protest with the department within ninety days of the date of the proposed assessment, the taxpayer is in default, and the department must issue an assessment for the taxes. The assessment may be removed by the Administrative Law Court for good cause shown, and the matter may be remanded to the department.

(B)    Upon remand the department has thirty days, or a longer period ordered by the administrative law judge, to consider the new facts and issues and amend its department determination. The department shall issue its amended department determination in the same manner as the original. The taxpayer has thirty days after the date the department's amended determination was sent by first class mail or delivered to the taxpayer to again request a contested case hearing. Requests for a hearing before the Administrative Law Judge Division Court must be made in accordance with its rules. If the department fails to issue its amended department determination within thirty days of the date of the remand, or a longer period ordered by the administrative law judge, the taxpayer can again may request again a contested case hearing. At the new hearing the facts, law, and other authority presented at the original hearing have been presented in a timely manner for purposes of exhausting the taxpayer's prehearing remedy. The statute of limitations remains suspended by Section 12-54-85(G) during this process."

H.     Section 12-60-1330 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"(A)    Section 12-60-1330.    Before a person may seek a determination by an administrative law judge under pursuant to Section 12-60-1320, he shall exhaust his prehearing remedy.

(1)    If a person requests a contested case hearing before the Administrative Law Judge Division Court within ninety days of the date of the denial or proposed suspension, cancellation, or revocation without exhausting his prehearing remedy because he failed to file a protest with the department, the administrative law judge shall dismiss the action without prejudice.

(2)    If the person failed to provide the department within the ninety day time period with the facts, law, and other authority supporting his position, he shall provide them to the department with the facts, law, and other authority he failed to present to the department earlier. The administrative law judge shall then remand the case to the department for reconsideration in light of the new facts or issues unless the department elects to forego the remand.

(3)    If a person fails to file a protest with the department within ninety days of the date of the denial or proposed suspension, cancellation, or revocation, the person is in default, and the department shall deny, suspend, cancel, or revoke the license or permit appropriate. The denial, suspension, cancellation, or revocation of the license or permit may be lifted by the administrative law court for good cause shown, and remand the matter to the department.

(B)    Upon remand the department has thirty days, or a longer period ordered by the administrative law judge, to consider the new facts and issues and amend its department determination. The department shall issue its amended department determination in the same manner as the original. The person has thirty days after the date the department's amended determination was sent by first class mail or delivered to the person to again request a contested case hearing. Requests for a hearing before the Administrative Law Judge Division Court must be made in accordance with its rules. If the department fails to issue its amended department determination within thirty days of the date of the remand, or a longer period ordered by the administrative law judge, the person can again may request again a contested case hearing. At the new hearing the facts, law, and other authority presented at the original hearing have been presented in a timely manner for purposes of exhausting the person's prehearing remedy. The statute of limitations remains suspended by Section 12-54-85(G) during this process."

I.     Section 61-6-1520 of the 1976 Code is repealed.

J.        Except as provided in subsection A.2., this SECTION takes effect upon approval by the Governor.

SECTION    24.    Article 23, Chapter 37 of Title 12 of the 1976 Code is amended by adding:

"Section 12-37-2890.    (A)    Upon request of the Department of Revenue, and after the time period for all appeals of any tax due is exhausted, the Department of Public Safety shall suspend the driver's license and vehicle registration of a person who fails to file and pay a motor carrier property tax on a vehicle, pursuant to this article. Before notification is sent to the Department of Public Safety, the Department of Revenue shall notify the delinquent taxpayer by certified letter of the pending suspension and of the steps necessary to prevent the suspension from being entered on the person's driving and registration records. The department shall allow thirty days for payment of taxes before notifying the Department of Public Safety to suspend the driver's license and vehicle registration.

(B)    Notwithstanding the provisions of Section 56-1-460, a charge of driving under suspension when the suspension is solely for failure to file and pay a motor carrier property tax or the reinstatement fee required for the property tax does not require proof of financial responsibility. A person is not subject to a custodial arrest solely for being under suspension pursuant to this section."

SECTION    25.    A.    Section 12-28-310 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"Section 12-28-310.    (A)    Subject to the exemptions provided in this chapter, a user fee of sixteen cents a gallon is imposed on:

(1)    all gasoline used or consumed for any purpose in this State; and

(2)    upon all diesel fuel used or consumed in this State in producing or generating power for propelling motor vehicles.

(B)    The user fee levied on motor fuel subject to the user fee pursuant to this chapter is a levy and assessment on the consumer, and the levy and assessment on other persons as specified in this chapter are as agents of the State for the collection of the user fee. This section does not affect the method of collecting the user fee as provided in this chapter. The user fee imposed by this section must be collected and paid at those times, in the manner, and by those the persons specified in this chapter.

(C)    The license user fee imposed by this section shall be in lieu is instead of all sales, use, or other excise tax which that may otherwise be imposed otherwise by any municipality, county, or other local political subdivision of the State."

B.     Section 12-28-330 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"Section 12-28-330.    The department shall consider considers it a rebuttable presumption, subject to proof of exemption under pursuant to Article 7 of this chapter, that all motor fuel subject to the user fee removed from a terminal in this State, or imported into this State other than by a bulk transfer within the bulk transfer terminal system or delivered into an end user's storage tank, is to be used or consumed in this State, in the case of gasoline, and is to be used or consumed on the highways in South Carolina this State in producing or generating power for propelling motor vehicles in the case of all other taxable motor fuel."

SECTION    26.    A.        Chapter 54 of Title 12 of the 1976 Code is amended by adding:

"Section 12-54-270.    A tax refund check that is returned to the Department of Revenue for an unknown, undeliverable, or insufficient address is unclaimed property pursuant to the provisions of Chapter 18 of Title 27, the Uniform Unclaimed Property Act."

B.     Section 27-18-20(10), of the 1976 Code, as last amended by Act 43 of 2001, is further amended to read:

"(10)    'Intangible property' includes:

(a)    monies, checks, drafts, deposits, interest, dividends, and income;

(b)    credit balances, customer overpayments, security deposits, refunds, credit memos, unpaid wages, unused airline tickets, and unidentified remittances except that intangible property does not include trading stamps and electronic entries representing trading stamps which that are awarded to retail customers incident to the purchase of goods;

(c)    stocks and other intangible ownership interests in business associations;

(d)    monies deposited to redeem stocks, bonds, coupons, and other securities, or to make distributions;

(e)    amounts due and payable under the terms of insurance policies;

(f)    amounts distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits; and

(g)    tax refund checks issued by this State and returned to the Department of Revenue by the Post Office for an unknown, undeliverable, or insufficient address."

C.     Section 27-18-140 of the 1976 Code, as last amended by Act 264 of 1992, is further amended to read:

"Section 27-18-140.    (A)    Intangible property held for the owner by a court, state, or other government, governmental subdivision or agency, public corporation, or public authority which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned.

(B)    Notwithstanding the provisions of subsection (A), tax refund checks as defined in Chapter 54 of Title 12 are presumed abandoned if unclaimed for a period of three months from the date the tax refund check was issued by the Department of Revenue.

(C)    This chapter does not apply to tax refund checks mailed to an owner, and not presented for payment, but not returned to the Department of Revenue by the Post Office for an unknown, undeliverable, or insufficient address."

D.     Section 27-18-180(A) of the 1976 Code is amended to read:

"(A)    A person holding property tangible or intangible property, that is presumed abandoned and subject to custody as unclaimed property under pursuant to this chapter, shall report to the administrator concerning the property as provided in this section. The action taken to report an unclaimed tax refund check to the administrator is not a violation of disclosure prohibitions described in Section 12-54-240."

E.     Section 12-6-5560 of the 1976 Code is repealed.

SECTION    27.    Section 12-54-46 of the 1976 Code is amended to read:

"Section 12-54-46.    (A)    An individual subject to withholding and required to supply information to his employer under pursuant to Chapter 8 of Title 12 who supplies a withholding exemption certificate which exceeds the number of exemptions to which he is entitled is liable for a penalty of not less than fifty five hundred dollars for each exemption claimed that exceeds the number to which he is entitled. The penalty is assessed and collected in the same manner as income tax penalties of the following violations:

(1)    refusing or failing to provide a withholding exemption certificate;

(2)    providing a withholding exemption certificate that claims he is exempt from withholding;

(3)    providing exemptions on a withholding exemption certificate exceeding the number of exemptions to which he is entitled; or

(4)    requesting a waiver from withholding to which he is not entitled.

(B)    An additional five hundred dollar penalty is imposed each January first that a violation is not corrected.

(C)    The penalty does not apply to an individual described in subsection (A) who has a change in family circumstances that makes his withholding exemption certificate inaccurate unless his employer or the department has informed him to revise his withholding exemption certificate."

SECTION    28.    Section 12-36-2610 of the 1976 Code, as last amended by Act 363 of 2002, is further amended to read:

"Section 12-36-2610.    When a sales or use tax return required by Section 12-36-2570 and Chapter 10 of Title 4 a local sales and use tax law administered and collected by the department on behalf of a local jurisdiction is filed and the taxes due on it are paid in full on or before the final due date, including any date to which the time for making the return and paying the tax has been extended pursuant to the provisions of Section 12-54-70, the taxpayer is allowed a discount as follows:

(1)    on taxes shown to be due by the return of less than one hundred dollars, three percent;

(2)    on taxes shown to be due by the return of one hundred dollars or more, two percent.

In no case is a discount allowed if the return, or the tax on it is received after the due date, pursuant to Section 12-36-2570, or after the expiration of any extension granted by the department. The discount permitted a taxpayer under this section may not exceed three thousand dollars during any one state fiscal year. However, for taxpayers filing electronically, the discount may not exceed three thousand one hundred dollars. A person making sales into this State who cannot be required to register for sales and use tax under applicable law but who nevertheless voluntarily registers to collect and remit use tax on items of tangible personal property sold to customers in this State is entitled to a discount on returns filed as otherwise provided in this section not to exceed ten thousand dollars during any one state fiscal year."

SECTION    29.    Section 12-36-2110(A)(5) of the 1976 Code is amended to read:

"(5)    trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, and horse trailers, but not including house trailers or campers as defined in Section 56-3-710 or a fire safety education trailer;"

SECTION    30.    A.    Chapter 36 of Title 12 of the 1976 Code is amended by adding:

"Article 19

Telecommunications Sourcing

Section 12-36-1910.    For purposes of this article:

(1)    'Air-to-ground radiotelephone service' means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft.

(2)    'Call-by-call basis' means any method of charging for telecommunications services in which the price is measured by individual calls.

(3)    'Communications channel' means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.

(4)    'Customer' means the person or entity that contracts with the seller of telecommunications services. If the end user of telecommunications services is not the contracting party, the end user of the telecommunications service is the customer of the telecommunication service, but this provision applies only for the purpose of sourcing sales of telecommunications services pursuant to Section 12-36-1920. 'Customer' does not include a reseller of telecommunications service or a mobile telecommunications service of a serving carrier under an agreement to serve the customer outside the home service provider's licensed service area.

(5)    'Customer channel termination point' means the location where the customer either inputs or receives the communications.

(6)    'End user' means the person who utilizes the telecommunication service. In the case of an entity, 'end user' means the individual who utilizes the telecommunication service. In the case of an entity, 'end user' means the individual who utilizes the service on behalf of the entity.

(7)    'Home service provider' means the same as that term is defined in Section 124(5) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).

(8)    'Mobile telecommunications service' means the same as that term is defined in Section 124(7) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).

(9)    'Place of primary use' means the street address representative of the customer's primary use of the telecommunications service, which must be the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, 'place of primary use' must be within the licensed service area of the home service provider.

(10)    'Post-paid calling service' means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism like a bank card, travel card, credit card, or debit card, or by charge made to a telephone number which is not associated with the origination or termination of the telecommunications. A post-paid calling service includes a telecommunications service that would be a prepaid calling service except it is not exclusively a telecommunication service.

(11)    'Prepaid calling service' means the right to access exclusively telecommunications services, which must be paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars, of which the number declines with use in a known amount.

(12)    'Private communication service' means a telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which the channel or channels are connected, and includes switching capacity, extension lines, stations, and other associated services provided in connection with the use of the channel or channels.

(13)    'Service address' means:

(a)    the location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid;

(b)    if the location in item (a) is not known, service address means the origination point of the signal of the telecommunications services first identified by either the seller's telecommunications system or in information received by the seller from its service provider, where the system used to transport the signals is not that of the seller;

(c)    if the location in item (a) and item (b) is not known, the service address means the location of the customer's place of primary use.

Section 12-36-1920.    For the purposes of telecommunications sourcing:

(1)    Except for the defined telecommunication services in item (3), the sale of telecommunication service sold on a call-by-call basis must be sourced to (i) each level of taxing jurisdiction where the call originates and terminates in that jurisdiction or (ii) each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located.

(2)    Except for the defined telecommunication services in item (3), a sale of telecommunications services on a basis other than a call-by-call basis, is sourced to the customer's place of primary use.

(3)    The sale of the following telecommunication services must be sourced to each level of taxing jurisdiction:

(a)    A sale of mobile telecommunications services, other than air-to-ground radiotelephone service and prepaid calling service, is sourced to the customer's place of primary use as required by the Mobile Telecommunications Sourcing Act.

(b)    A sale of post-paid calling service is sourced to the origination point of the telecommunications signal as first identified by either (i) the seller's telecommunications system, or (ii) information received by the seller from its service provider, where the system used to transport the signals is not that of the seller.

(c)    A sale of a private communication service is sourced as follows:

(i)    Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which the customer channel termination point is located.

(ii)    Service in which all customer termination points are located entirely within one jurisdiction or levels of jurisdiction is sourced in the jurisdiction in which the customer channel termination points are located.

(iii)    Service for segments of a channel between two customer channel termination points located in different jurisdictions and the segments of channel are separately charged is sourced fifty percent in each level of jurisdiction in which the customer channel termination points are located.

(iv)    Service for segments of a channel located in more than one jurisdiction or levels of jurisdiction and the segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in the jurisdiction by the total number of customer channel termination points.

Section 12-36-1930.    Notwithstanding another provision of law, this article applies to local sales and use taxes on telecommunication services collected and administered by the Department of Revenue on behalf of the local jurisdictions."

B.     Section 12-36-910(B)(3)(a) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"(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. Telecommunications services are sourced in accordance with Section 12-36-1920;"

C.     Section 12-36-1310(B)(3) of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:

"(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. Telecommunications services are sourced in accordance with Section 12-36-1920;

(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;"

D.     Section 12-36-1310(B), as last amended by Act 69 of 2003, is further amended by adding:

"(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."

E.     This SECTION takes effect the first calendar day of the third full month after its approval by the Governor.

SECTION    31.    Section 12-6-3360(B)(5) of the 1976 Code is amended by adding:

"(f)    In a county in which one employer has lost at least 1,500 jobs in a calendar year, the credit allowed is one tier higher than the credit for which the county would otherwise qualify. The one tier higher credit allowed by this subsection is allowed for a three-year period beginning immediately following the year during which the jobs were lost. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section."

SECTION    32.    A.        Section 12-6-3365 of the 1976 Code, amended to read:

"Section 12-6-3365.    (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 is allowed a moratorium on state corporate income or insurance premium taxes imposed pursuant to Section 12-6-530 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.

(B)(1)    To qualify for the moratorium pursuant to subsection (A), a taxpayer must create at least one hundred full-time new jobs at a facility in a county shall:

(1) with an average annual unemployment rate of (a)(i) create at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average one hundred full-time new jobs at a facility in a county with an average annual unemployment rate of at least twice the three most recent state average during each of the last two completed calendar years of, based on the most recent unemployment rates available average, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data; and

(ii)    invest at least ninety percent of its total investment in this State in the moratorium county; or

(b)(i)    create at least one hundred full-time new jobs, and invest at least one hundred fifty million dollars, at a manufacturing facility in a county with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data; and

(ii)    create at least one hundred full-time new jobs, and invest at least one hundred fifty million dollars, at a manufacturing facility in a second county which is designated as distressed, least developed or underdeveloped pursuant to Section 12-6-3360; and

(2)    in which(iii)    invest at least ninety percent of the taxpayer's its total investment in this State is located in one or both of the counties specified in subsubitems (i) and (ii) of subsection (B)(1)(b);

(2)    Taxpayers qualifying under subsection (B)(1)(b) are entitled to the moratorium for separate ten-year periods under subsection (A) for income attributable to facilities in each county, beginning with the first full taxable year after the taxpayer qualifies in the respective county and ending with respect to the income attributable to facilities in that county either ten years from that year or the year when the taxpayer's number of full-time new jobs in that county falls below one hundred, whichever is earlier. Loss of the moratorium in one county due to job reduction does not impact the moratorium for income attributable to facilities in the other county.

(C)    The During the applicable moratorium period, the moratorium applies to that portion of the taxpayer's corporate income or premium tax that represents the ratio of the company's taxpayer's new investment in the qualifying county or counties to its total investment in this State.

(D)    The department shall prescribe certification procedures to ensure that the taxpayer may claim the moratorium in future years even if a particular county is removed from the list of moratorium qualifying counties.

(E)(1)    If the taxpayer creates and maintains at least two hundred full-time new jobs within five years from the date the taxpayer creates the first full-time new job at the facility, the moratorium period is fifteen taxable years, beginning the first full taxable year after the taxpayer qualifies and ending either fifteen specified in subsection (B)(1)(a) within five years from that year or the year when date the taxpayer's number of taxpayer creates the first full-time new job at the facility, the moratorium period is fifteen taxable years, beginning the first full taxable year after the taxpayer qualifies and ending either fifteen years from that year or the year when the taxpayer's number of full-time new jobs falls below two hundred, whichever is earlier.

(2)    If the taxpayer creates and maintains at least two hundred full-time new jobs at facilities in either or both of the counties specified in subsection (B)(1)(b) within five years from the date the taxpayer creates the first full-time new job in either of the counties, the moratorium period is fifteen taxable years with respect to income attributable to facilities in the county or counties where the taxpayer qualifies, beginning the first full taxable year after the taxpayer qualifies in a respective county and ending either fifteen years from that year or the year when the taxpayer's number of full-time new jobs in the respective county fall below two hundred, whichever is earlier.

(3)    Notwithstanding any other provision of this section, if the taxpayer qualifies in one or more counties for the fifteen-year period specified in this subsection and subsequently within the ten-year period specified in subsection (A) reduces the number of jobs at any such facility to fewer than two hundred but more than one hundred, the taxpayer is entitled to the moratorium with respect to such facility for the balance of the ten-year period. Loss of the fifteen-year period in one county described in subsection (B)(1)(b) due to job reduction does not impact the fifteen-year period for income attributable to facilities in the other county.

(F)    The taxpayer must create the one hundred full-time new jobs within five years from the date it creates the first full-time new job in the county specified in subsections (B)(1)(a)(i) or (B)(1)(b)(i), except that the taxpayer must have hired its first full-time new employee in the county specified in subsections (B)(1)(a)(i) or (B)(1)(b)(i) by July 1, 2005, to be eligible for either the ten-year or fifteen-year moratorium.

(G)    Any moratorium allowed under subsection (B)(1)(b) is not affected if the taxpayer changes its form of business organization within the ten-or-fifteen year moratorium period.

(H)    For purposes of qualification under subsection (B)(1)(b) and all related provisions, the term 'taxpayer' means a single taxpayer or, collectively, a group of one or more affiliated taxpayers."

B.        The amendment to Section 12-6-3365 of the 1976 Code as contained in subsection (A) of this section does not affect the provisions of Section 3, Act 277 of 2000, as that section relates to the repeal of Section 12-6-3365 of the 1976 Code.

SECTION    33.        Section 12-10-85 of the 1976 Code is amended to read:

"Section 12-10-85.    (A)    Funds received by the department for the State Rural Infrastructure Fund must be deposited in the State Rural Infrastructure Fund of the Council. The fund must be administered by the council for the purpose of providing financial assistance to local governments for infrastructure and other economic development activities including, but not limited to:

(1)    training costs and facilities;

(2)    improvements to regionally planned public and private water and sewer systems;

(3)    improvements to both public and private electricity, natural gas, and telecommunications systems including, but not limited to, an electric cooperative, electrical utility, or electric supplier described in Chapter 27 of Title 58; or

(4)    fixed transportation facilities including highway, rail, water, and air.

(B)    Rural Infrastructure Fund grants must be available to benefit counties or municipalities designated as "distressed" or "least developed" as defined in Section 12-6-3360 according to guidelines established by the council, except that up to twenty-five percent of the funds annually available in excess of ten million dollars must be set aside for grants to areas of "underdeveloped", "moderately developed", and "developed" counties. A governing body of an "underdeveloped", "moderately developed", or " developed" county must apply to the council for these set-aside grants stating the reasons that certain areas of the county qualify for these grants because the conditions in that area of the county are comparable to those conditions qualifying a county as "distressed" or "least developed.

(C)    For the purposes of this section, "local government" means a county, municipality, or group of counties, organized pursuant to Section 4-9-20(a), (b), (c), or (d).

(D)    The council shall submit a report to the Governor and General Assembly by March fifteenth covering activities for the prior calendar year."

SECTION    34.    Section 12-37-220(A) of the 1976 Code is amended by adding:

"(11)    All property of public benefit corporations established by a county or municipality used exclusively for economic development purposes which serve a governmental purpose as defined in Section 115 of the U.S. Internal Revenue Code."

SECTION    35.        A.        Section 12-37-220(B)(19) of the 1976 Code is amended to read:

"(19)    All property owned by volunteer fire departments and rescue squads used exclusively for the purposes of such these departments and squads. Property leased to a department or squad by an entity itself exempt from property tax is exempt in the same manner that property owned by these departments and squads is exempt."

B.        This SECTION takes effect upon approval by the Governor and applies to property tax years beginning after June 30, 2005.

SECTION    36.    A.        Section 36-9-501 of the 1976 Code is amended by adding:

"(c)    A person may not knowingly or intentionally file with the filing office as provided in subsections (a) or (b) a false or fraudulent financing statement or a financing statement filed for the purpose of hindering, harassing, or wrongfully interfering with another person or entity. In addition to another penalty provided by law, a violation of this subsection is a felony punishable by imprisonment for not more than five years or a fine of not more than two thousand five hundred dollars, or both. If the person is convicted of the violation, the court may find that the financing statement is ineffective, may order the filing office to terminate or purge the financing statement, and may order restitution to an aggrieved party.

(d)    If a person files with the filing office pursuant to subsections (a) or (b) a false or fraudulent financing statement or a financing statement filed for the purpose of hindering, harassing, or wrongfully interfering with another person or entity, a debtor named in that financing statement may file an action against the person that filed the financing statement seeking appropriate equitable relief or damages including, but not limited to, an order declaring the financing statement ineffective, ordering the filing office to terminate or purge the financing statement, and awarding reasonable attorney fees."

B.        Section 36-9-516(b) of the 1976 Code is amended to read:

"(b)    Filing does not occur with respect to a record that a filing office refuses to accept because:

(1)    the record is not communicated by a method or medium of communication authorized by the filing office;

(2)    an amount equal to or greater than the applicable filing fee is not tendered;

(3)    the filing office is unable to index the record because:

(A)    in the case of an initial financing statement, the record does not provide a name for the debtor;

(B)    in the case of an amendment or correction statement, the record:

(i)        does not identify the initial financing statement as required by Section 36-9-512 or 36-9-518, as applicable; or

(ii)    identifies an initial financing statement whose effectiveness has lapsed under Section 36-9-515;

(C)    in the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's last name; or

(D)    in the case of a record filed or recorded in the filing office described in Section 36-9-501(a)(1), the record does not provide a sufficient description of the real property to which it relates;

(4)    in the case of an initial financing statement or an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record;

(5)    in the case of an initial financing statement or an amendment that provides a name of a debtor which was not previously provided in the financing statement to which the amendment relates, the record does not:

(A)    provide a mailing address for the debtor;

(B)    indicate whether the debtor is an individual or an organization; or

(C)    if the financing statement indicates that the debtor is an organization, provide:

(i)        a type of organization for the debtor;

(ii)    a jurisdiction of organization for the debtor; or

(iii)    an organizational identification number for the debtor or indicate that the debtor has none;

(6)    in the case of an assignment reflected in an initial financing statement under Section 36-9-514(a) or an amendment filed under Section 36-9-514(b), the record does not provide a name and mailing address for the assignee; or

(7)    in the case of a continuation statement, the record is not filed within the six-month period prescribed by Section 36-9-515(d).;

(8)    in the case of a record presented for filing at the Office of the Secretary of State, the Secretary of State determines that the record is not created pursuant to this chapter or is otherwise intended for an improper purpose, such as to defraud, hinder, harass, or otherwise wrongfully interfere with a person; or

(9)    in the case of a record presented for filing at the Office of the Secretary of State, the same person or entity is listed as both debtor and secured party, the collateral described is not within the scope of this chapter, or that the record is being filed for a purpose other than a transaction that is within the scope of this chapter."

C.        Section 36-9-518 of the 1976 Code is amended by adding:

"(d)    In the case of a correction statement alleging that a previously filed record was filed wrongfully and that it should have been rejected pursuant to Section 36-9-516(b)(8) or (9), the Secretary of State, without undue delay, shall determine if the contested record was filed wrongfully and should have been rejected. To determine if the record was filed wrongfully, the Secretary of State may require the person filing the correction statement and the secured party to provide additional relevant information requested by the Secretary of State including an original or a copy of a security agreement that is related to the record. If the Secretary of State finds that the record was filed wrongfully and should have been rejected pursuant to Section 36-9-516(b)(8) or (9), the Secretary of State shall cancel the record and it is void and of no effect."

D.        Section 36-9-520 of the 1976 Code is amended by adding:

"(e)(1)    If the Secretary of State refuses to accept a record for filing pursuant to Section 36-9-516(b)(8) or (9) or cancels a wrongfully filed record pursuant to Section 36-9-518(d) the secured party may file an appeal within thirty days after the refusal or cancellation in the Administrative Law Court consistent with the Administrative Law Court rules.

(2)    The Administrative Law Court's final decision may be appealed as in accordance with Administrative Law Court rules."

E.        This SECTION takes effect upon approval by the Governor.

SECTION    37.    Section 12-37-220(B)(2)(a) is amended to read:

"(2)(a) The dwelling house in which he resides and a lot not to exceed one acre of land owned in fee or for life, or jointly with a spouse, by a paraplegic or hemiplegic person, is exempt from all property taxation provided the person furnishes satisfactory proof of his disability to the Department of Revenue. The exemption is allowed to the surviving spouse of the person so long as the spouse does not remarry, resides in the dwelling, and obtains the fee or a life estate in the dwelling. To qualify for the exemption, the dwelling house must be the domicile of the person who qualifies for the exemption. For purposes of this item, a hemiplegic person is a person who has paralysis of one lateral half of the body resulting from injury to the motor centers of the brain. For the purposes of this exemption, 'paraplegic' or 'hemiplegic' includes a person with Parkinson's Disease, Multiple Sclerosis, or Amyotrophic Lateral Sclerosis, which has caused the same ambulatory difficulties as a person with paraparesis or hemiparesis. A doctor's statement is required stating that the person's disease has caused these same ambulatory difficulties. A surviving spouse of a person receiving the exemption under this subsection is not allowed the exemption."

SECTION    38.    A.        Chapter 6 of Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3580.    (A)    Taxpayers that pay an annual fee to the South Carolina Quality Forum to participate in quality programs are allowed a tax credit equal to the annual registration fee.

(B)    Taxpayers also are allowed a tax credit equal to fifty percent of any fees charged to participate in the organizational performance excellence assessment process.

(C)    Credits earned are limited to the amount of tax liability on the return and are not refundable."

B.        Section 12-10-80(C)(3) of the 1976 Code, as last amended by Act 334 of 2002, is further amended by adding an appropriately numbered subitem at the end to read:

"( )    quality improvement programs of the South Carolina Quality Forum."

SECTION    39.    A.        Section 12-44-30(7) of the 1976 Code is amended by adding:

"(e)    that satisfies the requirements of Section 11-41-30(2)(a), and for which the Secretary of Commerce has delivered certification pursuant to Section 11-41-70(2)(a)."

B.    Section 4-12-30(D)(4)(a) of the 1976 Code is amended by adding:

"(v)    in the case of a project that satisfies the requirements of 11-41-30(2)(a), and for which the Secretary of Commerce has delivered certification pursuant to Section 11-41-70(2)(a)."

C.    Section 4-29-67(D)(4)(a) of the 1976 Code is amended by adding:

"(v)    in the case of a project that satisfies the requirements of 11-41-30(2)(a), and for which the Secretary of Commerce has delivered certification pursuant to Section 11-41-70(2)(a)."

SECTION    40.    A.        Section 12-6-3360(B)(5) of the 1976 Code is amended by adding:

"(f)    In a county in which one employer has lost at least 1,500 jobs in a calendar year, the credit allowed is one tier higher than the credit for which the county would otherwise qualify. The one tier higher credit allowed by this subsection is allowed for a three-year period beginning immediately following the year during which the jobs were lost. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section."

B.        This SECTION takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2004.

SECTION    41.    Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3580.    (A)    A resident taxpayer engaged in the business of producing milk for sale is allowed a refundable income tax credit based on the amount of milk produced and sold. The credit may be claimed against the taxes due pursuant to Section 12-6-510 or 12-6-530. The credit is allowed when the USDA Class I price of fluid milk in South Carolina drops below the production price anytime during the taxable year.

(B)    The Department of Agriculture shall promulgate regulations to implement the provisions of this section, including the establishment of the production price, which must consider the following factors, including but not limited to:

(1)    the average price of milk in the top five states where milk is imported to South Carolina;

(2)    the average transportation cost of importing milk from those five states; and

(3)    the cost of production in South Carolina.

(C)(1)    Each qualifying taxpayer is eligible for a ten thousand dollar tax credit based on the production and sale of the first five hundred thousand pounds of milk sold below the production price over a calendar year. The credit must be prorated on a quarterly basis.

(2)    For each additional five hundred thousand pounds of milk sold below the production price, there is allowed an additional credit of five thousand dollars, also prorated on a quarterly basis.

(D)    If no taxes are due, or the credit exceeds the tax liability of the taxpayer for the taxable year, the amount of the credit or excess over the tax liability must be refunded to the taxpayer. The South Carolina Commissioner of Agriculture shall certify to the Department of Revenue that producers claiming credits have met the eligibility requirements provided in this section."

B.    Notwithstanding the general effective date of this act, this section is effective for taxable years beginning after 2004.

SECTION    42.    A.        Chapter 45, Title 12 of the 1976 Code is amended by adding:

"Section 12-45-185.    Notwithstanding the provisions of Section 12-45-180, the county treasurer may waive the penalties imposed pursuant to that section if the taxpayer provides clear and convincing evidence to the county treasurer that the taxpayer delivered the timely payment to the United States mail or that the taxpayer otherwise timely delivered or caused to be delivered the payment. The request for waiver must be in the form of an application in writing to the county treasurer that includes documentation sufficient for the treasurer to conclude that the taxpayer made timely payment of the taxes. Waiving penalties is within the sole discretion of the county treasurer and the treasurer's denial of a waiver is not subject to appeal."

B.    This SECTION takes effect upon approval by the Governor and applies for property taxes due for tax years beginning after 2004.

SECTION    43.    A.    Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3575.    (A)    An individual taxpayer meeting the eligibility requirements of subsection (B) of this section may claim as a nonrefundable credit against the income tax imposed pursuant to 12-6-510 an amount equal to fifty percent of the premium costs the individual paid during the taxable year for health insurance coverage as defined in Section 38-74-10(5), that offers coverage to the individual, his spouse, or a person he was eligible to claim as a dependent on his federal income tax return, or any combination of these people, for the taxable year. The credit allowed by this section may not exceed three thousand dollars for each qualifying individual covered by a policy for which a credit is claimed. A nonresident who claims the credit allowed by this section shall reduce the amount of the credit in the same manner as nonresident individuals reduce personal exemptions and applicable standard deduction or itemized deductions pursuant to Section 12-6-1720(2).

(B)    The credit allowed by this section is available only to an individual taxpayer who held a policy of health insurance covering the taxpayer, the taxpayer's spouse, or a person the taxpayer was eligible to claim as a dependent on his federal income tax return, or any combination of these people from an insurance company which has withdrawn from writing health insurance policies in this State and the taxpayer, in replacing the insurance with a policy having substantially the same coverage, has been assigned to the South Carolina Health Insurance Pool established pursuant to Chapter 74 of Title 38 with a higher premium than the former policy.

(C)    A credit is not allowed for premium payments that are deducted or excluded from the taxpayer's income for the taxable year, whether the deduction or exclusion was due to a South Carolina modification pursuant to Article 9 of this chapter or was due to an exclusion or deduction, which resulted in a reduction of the taxpayer's federal taxable income.

(D)    A taxpayer who claims the credit allowed by this section shall provide information required by the department to demonstrate that the taxpayer is eligible for the credit and that the amount paid for premiums for which the credit is claimed was not excluded from the taxpayer's gross income for the taxable year."

B.    This SECTION takes effect upon approval by the Governor and applies for property taxes due for tax years beginning after 2004.

SECTION    44.    Notwithstanding the provisions of Section 12-43-217 of the 1976 Code, a county which conducted a countywide property tax equalization and reassessment program after 2000 which has not yet been implemented, may by ordinance postpone the implementation for one additional property tax year.

SECTION    45.    This act takes effect upon approval by the Governor.

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This web page was last updated on Tuesday, June 23, 2009 at 2:28 P.M.