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Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
May 26, 2005
S. Printed 5/26/05--S.
Read the first time March 15, 2005.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-1085 SO AS TO PROVIDE FOR SALES AND USE TAXES ON BEER AND WINE; BY ADDING SECTION 12-28-1400 SO AS TO REQUIRE THE REPORTING THE DEPARTMENT OF REVENUE REQUIRES BY REGULATION FOR PURPOSES OF THE USER FEE ON MOTOR FUELS AND PROVIDE AN ADDITIONAL CIVIL PENALTY FOR VIOLATORS; BY ADDING SECTION 12-54-123 SO AS TO PROTECT FROM LIABILITY A PERSON WHO SURRENDERS THE PROPERTY OF ANOTHER LEVIED ON BY THE DEPARTMENT OF REVENUE; BY ADDING CHAPTER 55 TO TITLE 12, ENACTING THE OVERDUE DEBT COLLECTION ACT AUTHORIZING THE SOUTH CAROLINA DEPARTMENT OF REVENUE TO IMPOSE A COLLECTION ASSISTANCE FEE ON CERTAIN OVERDUE TAX DEBTS EQUAL TO TWENTY PERCENT OF THE OVERDUE AMOUNT AND TO ALLOW THE DEPARTMENT TO RETAIN A PORTION OF THE COLLECTION ASSISTANCE FEE FOR ITS OPERATION; BY ADDING SECTION 61-4-725 SO AS TO ALLOW A LICENSED WINERY TO SELL, DELIVER, AND PERMIT ON-PREMISES CONSUMPTION ON SUNDAYS IN JURISDICTIONS WHERE MINIBOTTLE SALES ARE ALLOWED ON SUNDAYS; TO AMEND SECTION 4-29-67, AS AMENDED, RELATING TO THE FEE IN LIEU OF PROPERTY TAX, SO AS TO DELETE THE NET PERCENT VALUE METHOD OF CALCULATING ANNUAL FEE PAYMENTS; TO AMEND SECTION 6-1-320, AS AMENDED, RELATING TO THE LIMITS ON ANNUAL INCREASES IN LOCAL GOVERNMENT AND SCHOOL DISTRICT PROPERTY TAX MILLAGE, SO AS TO CLARIFY THE METHOD OF CALCULATING THE ALLOWED CONSUMER PRICE INDEX INCREASE IN THE MILLAGE RATE; TO AMEND SECTIONS 12-6-40 AND 12-6-50, BOTH AS AMENDED, RELATING TO DEFINITIONS AND CONFORMITY PROVISIONS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO UPDATE THE REFERENCE DATE BY WHICH THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986 AND CLARIFY THOSE PROVISIONS NOT ADOPTED; TO AMEND SECTIONS 12-6-1110 AND 12-6-1130, RELATING TO CALCULATIONS OF INCOME, SO AS TO PROVIDE FOR CALCULATIONS WITHOUT SOME OF THE DEDUCTIONS ALLOWED BY THE INTERNAL REVENUE CODE; TO AMEND SECTION 12-6-1140, AS AMENDED, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA INDIVIDUAL TAXABLE INCOME FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO DELETE AN OBSOLETE DEDUCTION RELATING TO MEDICAL INSURANCE PREMIUMS; TO AMEND SECTION 12-6-2220, RELATING TO ALLOCATION AND APPORTIONMENT FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO PROVIDE FOR THE ALLOCATION OF DIVIDENDS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO REVISE THE DEFINITION OF "NEW JOB"; TO AMEND SECTION 12-6-3365, AS AMENDED, RELATING TO THE CORPORATE INCOME TAX MORATORIUM FOR JOB CREATION, SO AS TO CLARIFY THE APPLICATION OF THE MORATORIUM TO INSURANCE PREMIUM TAXES; TO AMEND SECTION 12-6-3480, RELATING TO TAX CREDITS, SO AS TO FURTHER PROVIDE THE MANNER IN WHICH CREDITS ARE ALLOWED AND MAY BE CLAIMED; TO AMEND SECTION 12-6-4910, AS AMENDED, RELATING TO THOSE REQUIRED TO FILE INCOME TAX RETURNS, SO AS TO PROVIDE FOR THOSE NONRESIDENTS REQUIRED TO FILE IN THIS STATE; TO AMEND SECTIONS 12-6-5020, AS AMENDED, AND 12-6-5030, RELATING TO THE FILING OF CONSOLIDATED CORPORATE INCOME TAX RETURNS AND COMPOSITE INDIVIDUAL INCOME TAX RETURNS, SO AS TO REQUIRE THE DETERMINATION OF CREDITS ON A CONSOLIDATED BASIS AND FURTHER PROVIDE FOR COMPOSITE RETURNS; TO AMEND SECTION 12-8-520 RELATING TO STATE INCOME TAX WITHHOLDING, SO AS TO PROVIDE FOR THE WITHHOLDING OF PARTNERSHIP AND SUBCHAPTER "S" CORPORATION INCOME OF NONRESIDENTS; TO AMEND SECTION 12-8-1520, RELATING TO STATE INCOME TAX WITHHOLDING, SO AS TO PROVIDE ADDITIONAL REQUIREMENTS FOR WITHHOLDING AGENTS; TO AMEND SECTION 12-10-105, RELATING TO ANNUAL FEES FOR JOB DEVELOPMENT CREDITS FOR PURPOSES OF THE ENTERPRISE ZONE ACT OF 1995, SO AS TO EXTEND THESE FEES TO JOB RETRAINING CREDITS IN EXCESS OF TEN THOUSAND DOLLARS AND PROVIDE FOR THE COLLECTION OF THESE FEES; TO AMEND SECTION 12-20-105, AS AMENDED, RELATING TO TAX CREDITS FOR PURPOSES OF THE CORPORATE LICENSE TAX, SO AS TO CLARIFY THE APPLICATION OF THESE CREDITS; TO AMEND SECTION 12-28-740, RELATING TO EXEMPTIONS FROM THE MOTOR FUELS USER FEE, SO AS TO DELETE A REFERENCE TO A CREDIT; TO AMEND SECTIONS 12-21-1090 AND 12-21-6550, RELATING TO LICENSE TAXES, SO AS TO PROVIDE FOR THE PERMISSIVE PROMULGATION OF REGULATIONS AND FURTHER PROVIDE FOR THE APPLICATIONS REQUIRED PURSUANT TO THE TOURISM INFRASTRUCTURE ADMISSIONS TAX ACT; TO AMEND SECTION 12-28-1730, AS AMENDED, RELATING TO PENALTIES FOR PURPOSES OF THE MOTOR FUELS TAX, SO AS TO DELETE A CIVIL PENALTY; TO AMEND SECTION 12-36-530, RELATING TO THE REQUIREMENT FOR THE RETURN OF A RETAIL LICENSE WHEN A BUSINESS CLOSES OR IS SOLD, SO AS TO ELIMINATE THE REQUIREMENT THAT THE TAX IS DUE AT THE TIME OF SALE AND CONSTITUTES A LIEN ON THE PROPERTY IN THE HANDS OF THE PURCHASER; TO AMEND SECTION 12-36-1310, AS AMENDED, RELATING TO THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO FURTHER PROVIDE FOR THE APPLICATION OF SALES TAX TO TELECOMMUNICATIONS SERVICES; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO EXEMPT PRESCRIPTIONS AND OVER-THE-COUNTER MEDICINES AND MEDICAL SUPPLIES SOLD TO A FREE CLINIC; TO AMEND SECTION 12-36-2510, RELATING TO THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO PROVIDE FURTHER FOR THE ISSUE OF CERTIFICATES BY THE DEPARTMENT OF REVENUE FOR DIRECT PAY AND EXEMPTIONS AND PROVIDE FOR MORE EFFICIENT ADMINISTRATION OF SALES TAXES AND SALES TAX EXEMPTIONS; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO DELETE OBSOLETE REFERENCES IN EXISTING EXEMPTIONS; TO AMEND SECTION 12-37-230, RELATING TO SERVICE CONTRACTS WITH NONPROFIT HOUSING CORPORATIONS, SO AS TO ALLOW A COUNTY OR MUNICIPALITY TO CHARGE REASONABLE FEES FOR SERVICES NOT TO EXCEED TAXES THAT WOULD OTHERWISE BE DUE ON THE PROPERTY; TO AMEND SECTION 12-44-50, AS AMENDED, RELATING TO THE "FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997", SO AS TO REVISE THE ELIGIBILITY TO USE THE NET PERCENT VALUE METHOD OF CALCULATING THE ANNUAL FEE PAYMENT; TO AMEND SECTIONS 12-54-42 AND 12-54-43, AS AMENDED, RELATING TO THE UNIFORM METHOD OF COLLECTION AND ENFORCEMENT OF STATE LEVIED TAXES, SO AS TO CLARIFY THE APPLICATION OF PENALTIES FOR FAILING TO PROVIDE WITHHOLDING STATEMENTS, AND CLARIFY AND REVISE THE APPLICATION OF CIVIL PENALTIES FOR FILING GROUNDLESS RETURNS OR FOR MISUSE OF A SALES TAX CERTIFICATE; TO AMEND SECTION 12-54-90, RELATING TO THE COLLECTION AND ENFORCEMENT OF STATE TAXES, SO AS TO ALLOW THE DEPARTMENT OF REVENUE TO REFUSE TO ISSUE A LICENSE TO A TAXPAYER IN VIOLATION; TO AMEND SECTIONS 12-54-210 AND 12-54-240, AS AMENDED, RELATING TO THE COLLECTION AND ENFORCEMENT OF STATE TAXES, SO AS TO INCREASE THE PENALTY FOR FAILURE TO KEEP RECORDS, FILE RETURNS, AND COMPLY WITH REGULATIONS, UPDATE REFERENCES RELATING TO THE CONFIDENTIALITY OF RETURNS, AND DELETE AN EXEMPTION TO THE CONFIDENTIALITY REQUIREMENTS FOR RECORDS SUBPOENAED BY A FEDERAL GRAND JURY; TO AMEND SECTION 12-58-185, AS AMENDED, RELATING TO THE TAXPAYERS' BILL OF RIGHTS, SO AS TO CLARIFY AND EXTEND THE APPLICATION OF HARDSHIP EXTENSIONS TO PAY; TO AMEND SECTIONS 12-60-420 AND 12-60-490, BOTH AS AMENDED, RELATING TO THE REVENUES PROCEDURE ACT, SO AS TO PROVIDE THAT THE APPLICATION OF A DIVISION DECISION OR A DETERMINATION OF DEFICIENCY APPLIES TO LOCAL TAXES ADMINISTERED BY THE DEPARTMENT OF REVENUE AND REQUIRE THE NOTICE TO PROVIDE THAT FAILURE TO FILE A PROTEST RESULTS IN A DECISION BECOMING FINAL AND TO PROVIDE, FURTHER, FOR SETOFFS AGAINST TAX REFUNDS; TO AMEND SECTION 61-4-747, RELATING TO REGULATION OF WINE, SO AS TO REQUIRE OUT-OF-STATE WINE SHIPPERS TO PAY SALES AND EXCISE TAXES ON WINE SHIPPED TO RESIDENTS OF THIS STATE BY JANUARY TWENTIETH OF EACH YEAR FOR THE PRECEDING YEAR; BY ADDING SECTION 33-14-420 SO AS TO FURTHER PROVIDE FOR CLAIMANTS AGAINST FUNDS OF A DISSOLVED CORPORATION; TO REPEAL SECTION 12-37-240, RELATING TO PAYMENTS IN LIEU OF TAXES BY EXEMPT NONPROFIT HOUSING CORPORATIONS AND SECTION 12-37-290, RELATING TO AN OBSOLETE HOMESTEAD EXEMPTION PROVISION.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1.A. Section 12-36-140(C)(3), as added by Act 387 of 2000, is amended to read:
"(3) for the purpose of being distributed as (i) cooperative direct mail promotional advertising materials, or (ii) promotional maps, brochures, pamphlets, or discount coupons by nonprofit chambers of commerce or convention and visitor bureaus who are exempt from income taxation pursuant to Internal Revenue Code Section 501(c) by means of interstate carrier, a mailing house, or a United States Post Office to residents of this State from locations both inside and outside the State. For purposes of this item, 'cooperative direct mail promotional advertising materials' means discount coupons, advertising leaflets, and similar printed advertising, including any accompanying envelopes and labels which are distributed with promotional advertising materials of more than one business in a single package to potential customers, at no charge to the potential customer, of the businesses paying for the delivery of the material."
B. Section 12-36-2120(58) of the 1976 Code, as added by Act 387 of 2000, is amended to read:
"(58) cooperative direct mail promotional advertising materials and promotional maps, brochures, pamphlets, or discount coupons by nonprofit chambers of commerce or convention and visitor bureaus who are exempt from income taxation pursuant to Internal Revenue Code Section 501(c) delivered at no charge by means of interstate carrier, a mailing house, or a United States Post Office to residents of this State from locations both inside and outside the State. For purposes of this item, 'cooperative direct mail promotional advertising materials' means discount coupons, advertising leaflets, and similar printed advertising, including any accompanying envelopes and labels which are distributed with promotional advertising materials of more than one business in a single package to potential customers, at no charge to the potential customer, of the businesses paying for the delivery of the material."
C. This section takes effect for tax years beginning after 2005, but does not authorize or permit refunds of taxes paid.
SECTION 2. Article 13, Chapter 28, Title 12 of the 1976 Code is amended by adding:
"Section 12-28-1400. (A) All information required to be reported in this chapter must be used in the tracking of petroleum products and must be submitted in the manner provided by the department. The requirements may include, but not be limited to, the data elements, the format of the data elements, and the method and medium of transmission to the department.
(B) A person liable for reporting under this chapter who fails to meet the requirements of this section within three months after notification of the failure by the department, in addition to all other penalties prescribed by this chapter, is subject to an additional penalty of five thousand dollars for each month the failure continues."
SECTION 3. A. Chapter 54, Title 12 of the 1976 Code is amended by adding:
"Section 12-54-123. A person in possession of property upon which a levy has been made who, upon demand by the department, surrenders the property to the department must not be held personally liable for any obligation or liability to the taxpayer and any other person with respect to the property that arises from the surrender or payment. If a person brings an action not allowed pursuant to this section in any court of this State, the court shall dismiss the case."
B. This section takes effect July 1, 2005.
SECTION 4. A. Title 12 of the 1976 Code is amended by adding:
Section 12-55-10. This chapter may be cited as the 'Overdue Tax Debt Collection Act'.
Section 12-55-20. The General Assembly finds that the Department of Revenue has documented that the state's cost of collecting overdue tax debts exceeds twenty percent of the cost of collecting overdue debts. The General Assembly further finds that the cost of collecting overdue tax debts is currently borne by taxpayers who pay their taxes on time. It is the intent of the General Assembly by enacting the 'Overdue Tax Debt Collection Act' to ship this cost to the delinquent taxpayers who owe overdue tax debts.
Section 12-55-30. (A) As used in this chapter:
(1) 'Overdue tax debt' means any part of a tax debt that remains unpaid one hundred twenty days or more after the taxpayer receives notice as defined in Section 12-55-30(A)(2).
(2) 'Notice' means a notice of assessment issued by the department to the taxpayer pursuant to the South Carolina Revenue Procedures Act.
(3) 'Tax debt' means the total amount of tax, fees, penalties, interest, and costs for which notice has been issued by the department to the taxpayer.
(B) Except when the context clearly indicates a different meaning, the definitions in Section 12-60-30 also apply to this chapter.
Section 12-55-40. A collection assistance fee may be imposed on an overdue tax debt. To impose a collection assistance fee on a tax debt, the department shall notify the taxpayer that the collection assistance fee may be imposed if the tax debt becomes overdue tax debt.
Section 12-55-50. The collection assistance fee is collectible as part of the debt. The department may waive the fee to the same extent as if it were a penalty.
Section 12-55-60. The amount of the collection assistance fee is twenty percent of the amount of the overdue tax.
Section 12-55-70. The proceeds of the collection assistance fee must be credited to a special account within the department and must be used to fund the South Carolina Business One Stop (SCBOS) program within the department. Any excess proceeds of the collection assistance fee above the amount required to fund the SCBOS program must be credited to the department to be retained and expended for use in budgeted operations.
Section 12-55-80. The department may bring suits in the courts of other states to collect taxes legally due this State. The officials of other states are empowered to sue for the collection of taxes in the courts of this State. Whenever the department considers it expedient to employ local counsel to assist in bringing suit in an out-of-state court, the department may employ local counsel.
Section 12-55-90. Collection agencies with which the department contracts under Sections 12-4-340 and 12-54-227 are also authorized to collect on behalf of the department overdue tax debts and the collection fee imposed by this chapter."
B. The 'Overdue Tax Debt Collection Act' as added by this section applies for all tax debts incurred before which remain outstanding on December 1, 2002, and to all tax debts incurred on or after December 1, 2002.
SECTION 5. A. Article 7, Chapter 4, Title 61 of the 1976 Code is amended by adding:
"Section 61-4-725. Notwithstanding any other provision of law, a licensed winery located in a county or municipality that has conducted a favorable referendum under the provisions of Section 61-6-2010, during those same hours authorized by permits issued under Section 61-6-2010, may sell, possess, and permit the consumption of wine on the premises."
B. This section takes effect July 1, 2005.
SECTION 6. Section 6-1-320(A) of the 1976 Code is amended to read:
"(A) Notwithstanding Section 12-37-251(E), a local governing body may increase the millage rate imposed for general operating purposes above the rate imposed for such purposes for the preceding tax year only to the extent of the increase
in the consumer price index for the in the average of the twelve monthly consumer price indexes for the most recent twelve-month period consisting of January through December of the preceding calendar year. However, in the year in which a reassessment program is implemented, the rollback millage, as calculated pursuant to Section 12-37-251(E), must be used in lieu of the previous year's millage rate."
SECTION 7. Section 12-6-40(A)(1) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(1)(a) Except as otherwise provided, 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31,
2002 2004, and includes the effective date provisions contained in it.
(b) For purposes of sections 63 and 179 of the Internal Revenue Code, the amendments made by sections 103 and 202 of the Jobs and Growth Tax Relief Reconciliation Act of 2003, P.L. 108-27 (May 28, 2003) are effective only for taxable years beginning after December 31, 2003."
SECTION 8. Section 12-6-50 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-6-50. For purposes of this
chapter title and all other titles which provide for taxes administered by the department, except as otherwise specifically provided, the following Internal Revenue Code Sections are specifically not adopted by this State:
(1) Sections 1(a) through 1(e), 3, 11, and 1201 relating to federal tax rates;
(2) Sections 22 through 53, 515, 853, 901 through 908, and 960 relating to tax credits;
(3) Sections 55 through 59 relating to minimum taxes;
(4) Sections 78, 86, 87, 168(k), 196, and 280C relating to dividends received from certain foreign corporations by domestic corporations, taxation of social security and certain railroad retirement benefits, the alcohol fuel credit, bonus depreciation, deductions for certain unused business credits, and certain expenses for which credits are allowable;
(5) Sections 72(m)(5)(B), 72(f), 72(o), 72(q), and 72(t), relating to penalty taxes on certain retirement plan distributions;
(6) Section 172(b)(1) relating to net operating loss carrybacks;
(7) Section 199 relating to the deduction attributable to domestic production activities;
(8) Sections 531 through 564 relating to certain special taxes on corporations;
(8)(9) Sections 581, 582, and 585 through 596 relating to the taxation of banking institutions;
(9)(10) Sections 665 through 668 relating to taxation of certain accumulation distributions from trusts;
(10)(11) Sections 801 through 845 relating to taxation of insurance companies;
(11)(12) Sections 861 through 908, 912, 931 through 940, and 944 through 989 relating to the taxation of foreign income;
(13) Sections 1352 through 1359 relating to an alternative tax on qualifying shipping activities;
(12)(14) Sections 1401 through 1494;
(13)(15) Sections 1501 through 1505 relating to consolidated tax returns; and
(14)(16) Sections 2001 through 7655, 7801 through 7871, and 8001 through 9602, except for Section 6015 Sections 6015 and 6701, and except for Sections 6654 and 6655 which are adopted as provided in Section 12-6-3910."
SECTION 9. Section 12-6-1110 of the 1976 Code is amended to read:
"Section 12-6-1110. (A) For South Carolina income tax purposes, gross income, adjusted gross income, and taxable income as calculated under the Internal Revenue Code are modified as provided in this article and subject to allocation and apportionment as provided in Article 17 of this chapter.
(B) If a taxpayer has made an election pursuant to Internal Revenue Code Section 1354 to be taxed under the provisions of Section 1352-1359 of the Internal Revenue Code, Election to Determine Taxable Income from Certain International Shipping Activities, the election is not effective for South Carolina income tax purposes, and the taxpayer is taxed in accordance with this chapter as though no federal Section 1354 election has been made."
SECTION 10. A. Section 12-6-1130(2) of the 1976 Code is amended to read:
"(2) The deduction for taxes permitted by Internal Revenue Code Section 164 is computed in the same manner as provided in Section 164 except there is no deduction for state and local income taxes,
or state and local franchise taxes measured by net income, or any other income taxes, or any taxes measured by or with respect to net income. In addition, if a taxpayer elects, pursuant to Section 164, to deduct state and local sales taxes instead of state and local income taxes, the taxpayer may not deduct state and local sales and use taxes.
This modification is limited for individual taxpayers to the excess of itemized deductions over the standard deduction that would be allowed if the taxpayer had used the standard deduction for federal income tax purposes."
B. Section 12-6-1130 of the 1976 Code, as amended by Act 363 of 2002, is further amended by adding an appropriately numbered item at the end to read:
"( ) Adjusted gross income and taxable income are computed without the deduction allowed pursuant to Internal Revenue Code Section 199 relating to domestic production activities."
SECTION 11. Section 12-6-1140(8) of the 1976 Code is amended to read:
the portion of premiums not deductible pursuant to Internal Revenue Code Section 162(l) because the "applicable percentage" as defined in that section is less than one hundred percent."
SECTION 12. A. Section 12-6-2220(2) of the 1976 Code is amended to read:
"(2) Dividends received from corporate stocks
owned not connected with the taxpayer's business, less all related expenses, are allocated to the state of the corporation's principal place of business as defined in Section 12-6-30(9) or the domicile of an individual taxpayer."
B. Section 12-6-2220(2) of the 1976 Code, as amended by this section, applies for taxable years beginning after 2004.
SECTION 13. The ultimate undesignated paragraph of Section 12-6-3360(M)(3) of the 1976 Code, as last amended by Act 168 of 2004, is further amended to read:
any other another provision of law, 'new job' includes jobs created by a taxpayer when the taxpayer hires more than five hundred full-time individuals:
(a) at a manufacturing facility located in a county classified as
least developed distressed;
(b) immediately before their employment by the taxpayer, the individuals were employed by a company operating, as of the effective date of this paragraph, under Chapter 11 of the United States Bankruptcy Code; and
(c) the taxpayer, as an unrelated entity, acquires as of
July 10, 2002 March 12, 2004, substantially all of the assets of the company operating under Chapter 11 of the United States Bankruptcy Code."
SECTION 14. A. Section 12-6-3365(A) of the 1976 Code, as last amended by Act 172 of 2004, is further amended to read:
"(A) A taxpayer creating and maintaining at least one hundred full-time new jobs, as defined in Section 12-6-3360(M), at a facility of a type identified in Section 12-6-3360(M) may petition, utilizing the procedure in Section 12-6-2320(B), for a moratorium on state corporate income
or insurance premium taxes imposed pursuant to Section 12-6-530 or insurance premium taxes imposed pursuant to Title 38 for the ten taxable years beginning the first full taxable year after the taxpayer qualifies and ending either ten years from that year or the year when the taxpayer's number of full-time new jobs falls below one hundred, whichever is earlier. For purposes of insurance premium taxes, the petition pursuant to Section 12-6-2320(B) must be made to and approved by the director of the Department of Insurance."
B. The amendment to Section 12-6-3365 of the 1976 Code in this section does not affect its repeal as provided in Section 3 of Act 277 of 2000.
SECTION 15. A. Section 12-6-3480 of the 1976 Code is amended to read:
(A) Notwithstanding any other provision of law:
(1) Any credits under Title 38 may be applied against any taxes imposed under this chapter or license fees imposed under Chapter 20 of this title.
(2) Any credits under this chapter or Chapter 14 of this title which are earned by
one member of a controlled group of corporations a corporation included in a consolidated corporate income tax return under Section 12-6-5020 may must be used and applied against the consolidated tax, unless otherwise specifically provided by that member and by any other members of the controlled group of corporations.
(3) Any limitations upon the
total amount of liability for taxes or license fees that can be reduced by the use of a credit must be computed one credit at a time before any other another credit is used to reduce any remaining tax or license fee liability under this chapter or Chapter 20 of this title. Subject to item (4), The taxpayer may apply any credits arising under this chapter or Chapter 14 of this title in any order the taxpayer elects, and may apply a credit that is allowed for use against both taxes and license fees in any order, unless otherwise specifically provided, and against either one or both taxes and license fees in any given year, subject to specific limitations in the applicable credit statute and this item.
(4) No credit amount may be used more than once
, and all credits must be used, to the extent possible in any given year, first by the company that earned them, and second against the tax which generated them. Unless otherwise provided by law, a tax credit administered by the department must be used to the extent possible in the year it is generated and cannot be refunded.
(5) As used in this section
(a) the term "controlled group of corporations" has the same meaning as provided under Section 1563 of the Internal Revenue Code without regard to Section 1563(a)(4), (b)(2)(A), only with respect to corporations which are in existence for less than one-half the number of days in the tax year referred to therein, and (b)(2)(C) and (D);
(b) the term 'tax credit' or 'credit' means a statutorily directed or authorized reduction in the tax liability made after any applicable tax rates are applied."
B. Section 12-6-3480 of the 1976 Code, as amended by this section, applies for taxable years beginning after 2004.
SECTION 16. A. Section 12-6-4910(1)(d) of the 1976 Code is amended to read:
"(d) a nonresident individual with South Carolina gross income greater than the personal exemption amount provided in Internal Revenue Code Section 151(d)."
B. Section 12-6-4910(1)(d) of the 1976 Code, as amended by this section, applies for taxable years beginning after 2005.
SECTION 17. A. Section 12-6-5020(F) of the 1976 Code is amended to read:
"(F) If a corporation which files or is required to file a consolidated return is entitled to one or more income tax credits, including the carryover of unused credits from prior years, the income tax credits
may must be determined on a consolidated basis. Limitations on credits which refer to the income or the income tax liability of a corporation are deemed to refer to the income or income tax liability of the consolidated group, and credits shall reduce the consolidated group's tax liability regardless of whether or not the corporation entitled to the credit contributed to the tax liability or of the consolidated group."
B. Section 12-6-5020(F), as amended by this section, applies for taxable years beginning after 2004.
SECTION 18. A. Section 12-6-5030 of the 1976 Code is amended to read:
"Section 12-6-5030. (A) A partnership or 'S' Corporation may file a composite individual income tax return on behalf of the nonresident partners or shareholders that are individuals,
or trusts, and or estates in which the income is taxed to the trust or estate, or the department may require that a partnership or 'S' Corporation file a composite individual income tax return on behalf of the nonresident partners or shareholders that are individuals, or trusts and estates in which the income is taxed to the trust or estate , provided that a nonresident partner or 'S' Corporation shareholder having taxable income within the jurisdiction of this State from sources other than the partnership or 'S' Corporation may not file as part of the composite return.
(B)(1) A composite return is
one which combines the separate South Carolina tax liabilities of the nonresident partners or shareholders and a single return for two or more taxpayers having the same tax year in which each participant's share of the partnerships or 'S' Corporation's taxable income or loss is separately computed and added together to arrive at the total tax due on the composite return. The partnership or 'S' Corporation may elect to determine each participant's tax due by one of the following methods:
(a) compute the pro rata share of the standard deduction or itemized deductions, and personal exemption amount for each participant pursuant to Section 12-6-1720(2) in the same manner as if it was being separately reported; or
(b) compute each participant's share of South Carolina income without regard to any deductions or exemptions.
(2) The composite return is signed by a general partner or an authorized officer of the 'S' Corporation.
If there is not sufficient information to determine the separate liability or the state of residence, then no deduction is allowed for personal exemptions, individual itemized deductions, or standard deductions.
(D)(1) A composite return may be filed even if some of the nonresident fiduciary and individual shareholders and partners eligible to participate in filing a composite return choose not to participate. Corporate taxpayers may not participate in a composite return.
(2) A nonresident participating in the composite return that has South Carolina income from sources other than the entity filing the composite return is required to file appropriate returns and make payment of all South Carolina taxes required by law. Taxes paid for the nonresident with the composite return shall reduce taxes due at the time the nonresident subject to this subitem files a separate return for the tax year reporting South Carolina income from all sources. The entity shall furnish to each nonresident a written statement as required by Section 12-8-1540(A) as proof of the amount that has been paid by the partnership or 'S' corporation as estimated payments for the nonresident and the amount paid for the nonresident with the composite return.
(E)(D) The department may establish procedures or promulgate rules and promulgate regulations necessary to carry out the provisions of this section."
B. Section 12-6-5030 of the 1976 Code, as amended by this section, applies for taxable years beginning after 2004.
SECTION 19. A. Subsections (A) and (D)(3) of Section 12-8-520 of the 1976 Code are amended to read:
"(A) An employer paying wages
at the rate of eight hundred dollars or more a year to an employee shall withhold income tax for that employee if at the time of payment the wages are expected to equal one thousand dollars or more during the year, except as provided in (C), using the tables and rules promulgated by the department.
(3) for personal services performed
on occasional, sporadic, or casual visits to in this State by nonresident employees in connection with their regular employment outside of this State ; when the gross South Carolina wages are equal to or less than the personal exemption amount provided in Internal Revenue Code Section 151(d) as defined in Section 12-6-40. However, this item does not apply to employees performing construction, installation, engineering, or similar services are considered to have earned wages in this State if where the situs of the job is in this State;"
B. Subsections (A) and (D)(3) of Section 12-8-520 of the 1976 Code, as amended by this section, apply for taxable years beginning after 2005.
SECTION 20. A. Section 12-8-1520(A)(2) of the 1976 Code is amended to read:
"(2) If a resident withholding agent is required under the Internal Revenue Code to deposit withheld funds at a financial institution, then the withholding agent shall deposit the funds required to be withheld under this chapter at a financial institution selected by the State Treasurer, unless otherwise instructed by the department."
B. Section 12-8-1520 of the 1976 Code is amended by adding at the end:
"(D) Any withholding agent making at least twenty-four payments in a year must do so as provided in Section 12-54-250."
C. Section 12-8-1520(A)(2) of the 1976 Code, as amended in subsection A of this section, takes effect July 1, 2005. The amendment to Section 12-8-1520 in the 1976 Code in subsection (B) of this section applies for payments due after January 1, 2006.
SECTION 21. Section 12-10-105 of the 1976 Code, as added by Act 334 of 2002, is amended to read:
"Section 12-10-105. In addition to the application fee provided in Section 12-10-100, an additional annual fee of one thousand dollars must be remitted by those qualifying businesses
receiving claiming in excess of ten thousand dollars of job development credits or in excess of ten thousand dollars in job retraining credits in one calendar year . to the department The fee is due for each project that is subject to a revitalization or retraining agreement that exceeds ten thousand dollars in one calendar year and must be remitted to the Department of Revenue to be used to reimburse the department of Revenue for costs incurred auditing reports required pursuant to Section 12-10-80(A). The fee becomes due at the time the single project's claims for job development credits or job retraining credits exceeds ten thousand dollars for that calendar year."
SECTION 22. A. Subsections (B)(1) and (C) of Section 12-20-105 of the 1976 Code, as last amended by Act 69 of 2003, are further amended to read:
"(1) To be considered an eligible project for purposes of this section, the project must qualify for income tax credits under Chapter 6 of Title 12, withholding tax credit under Chapter 10 of Title 12, income tax credits under Chapter 14 of Title 12, or fees in lieu of property taxes under either Chapter 12 of Title 4, Chapter 29 of Title 4,
Chapter 37 of Title 12, or Chapter 44 of Title 12.
(C) For the purpose of this section, 'infrastructure' means improvements for water, sewer, gas, steam, electric energy, and communication services made to a building or land that are considered necessary, suitable, or useful to an eligible project. These improvements include, but are not limited to:
(1) improvements to both public or private water and sewer systems;
(2) improvements to both public or private electric, natural gas, and telecommunications systems including, but not limited to, ones owned or leased by an electric cooperative, electric utility, or electric supplier, as defined in Chapter 27, Title 58;
(3) fixed transportation facilities including highway, road, rail, water, and air;
(4) for a qualifying project under subsection (B)(2), infrastructure improvements include industrial shell buildings and the purchase of land for an office, business, commercial, or industrial park which is owned or constructed by a county or political subdivision of this State."
B. Subsections (B)(1) and (C) of Section 12-20-105 of the 1976 Code, as amended by this section, apply for taxable years beginning after 2004.
SECTION 23. Section 12-21-1090 of the 1976 Code is amended to read:
"Section 12-21-1090. The department
shall may promulgate rules and regulations for the payment and collection of the taxes levied by this article. The administrative provisions of Section 12-21-2870, wherever applicable, are hereby adopted for the administration and enforcement of the provisions of this article."
SECTION 24. A. Section 12-21-6550 of the 1976 Code is amended to read:
"Section 12-21-6550. In order to obtain the amounts provided in Sections 12-21-6530 and 12-21-6540:
(A) The county or municipality in which the major tourism or recreation facility or major tourism or recreation area is located must file with the Department of Parks, Recreation and Tourism a certification application. The Department of Parks, Recreation and Tourism shall review the application for completeness and accuracy and if necessary contact the county or municipality for additional information. A separate certification application must be filed for each tourism or recreation facility located in a tourism or recreation area. The certification application must be filed within one year of the end of the investment period.
(B) When the application is complete, the Department of Parks, Recreation and Tourism shall forward the application on to the department. The department
must shall notify the county or the municipality, in writing, if the certification application has been approved.
(B)(C) A tourism or recreation facility for which a certification application has been filed must request a determination from the council as to the status of the tourism or recreation facility. The council must classify each tourism or recreation facility as a new tourism or recreation facility or an expansion to an existing tourism or recreation facility. If a tourism or recreation facility is classified as an expansion to an existing tourism or recreation facility, Section 12-21-6580 applies. The request for determination of classification must be included in the certification application. The department must forward a copy of the request to the council for its determination."
B. This section takes effect July 1, 2005.
SECTION 25. Section 12-28-740(3)(b) of the 1976 Code is amended to read:
"(b) by application for a refund
or credit against its liabilities otherwise arising under this chapter, if the purchase is charged to a credit card issued to an eligible government entity, the issuer of the card elects to be the ultimate vendor, and the federal agency is billed without the user fee;"
SECTION 26. Subsections (C) and (F) of Section 12-28-1730 of the 1976 Code are amended to read:
The department shall impose a civil penalty on the operator of a vehicle of two hundred dollars for the initial occurrence in each calendar year of a violation of the prohibition of use of dyed motor fuel subject to the user fee on the public highways of this State. Each subsequent offense in a calendar year is subject to a civil penalty of five thousand dollars.
The department shall impose a civil penalty in an amount equivalent to that imposed by Section 6715 of the Internal Revenue Code on the operator of a vehicle who knowingly violates the prohibition on the sale or use of dyed fuel upon public highways of this State. The department shall impose a civil penalty in the amount of one thousand dollars or ten dollars for each gallon of dyed fuel involved, whichever is greater, on the operator of a vehicle that is used on the highways of this State, or is authorized or otherwise allowed to be used on the highways of this State, and who uses dyed fuel for the propulsion of that vehicle or who stores dyed fuel to be used for the propulsion of a vehicle on the highways of this State, regardless of whether any of such dyed fuel is used for a nontaxable purpose, unless permitted to do so under federal law.
For purposes of this section, the operator is the person responsible for the management and operation of the vehicle, whether as owner, lessee, or other party."
SECTION 27. Section 12-36-530 of the 1976 Code is amended to read:
"Section 12-36-530. Retailers, after closing or selling a business, must return the retail license to the department for cancellation and remit any unpaid or accrued taxes. The department may refuse to issue a new retail license to any person who has failed to comply with the provisions of this section.
In the case of sale of any business the tax is considered to be due at the time of the sale of the fixtures and equipment incident to the business and constitutes a lien against the stock of goods and the fixtures and equipment in the hands of the purchaser, or any other third party, until the tax is paid. The department may not issue a retail license to continue or conduct the business to the purchaser until all taxes due the State have been settled and paid."
SECTION 28. Section 12-36-1310(B) of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:
"(B) The use tax imposed by this article also applies to the:
(1) gross proceeds accruing or proceeding from the business of providing or furnishing
any a laundering, dry cleaning, dyeing, or pressing service, but does not apply to the gross proceeds derived from coin operated laundromats and dry cleaning machines;
(2) gross proceeds accruing or proceeding from the sale of electricity;
(3)(a) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages. Gross proceeds from the sale of prepaid wireless calling arrangements subject to tax at retail pursuant to item (5) of this subsection are not subject to tax pursuant to this item. Effective for bills rendered after August 1, 2002, charges for mobile telecommunications services subject to the tax under this item must be sourced in accordance with the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code. The term 'charges for mobile telecommunications services' is defined for purposes of this section the same as it is defined in the Mobile Telecommunications Sourcing Act. All other definitions and provisions of the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code are adopted;
(b)(i) for purposes of this item, a 'bundled transaction' means a transaction consisting of distinct and identifiable properties or services, which are sold for one nonitemized price but which are treated differently for tax purposes:
(ii) for bills rendered on or after January 1, 2004, that include telecommunications services in a bundled transaction, if the nonitemized price is attributable to properties or services that are taxable and nontaxable, the portion of the price attributable to any nontaxable property or service is subject to tax unless the provider can reasonably identify that portion from its books and records kept in the regular course of business for purposes other than sales taxes.
(4) fair market value of tangible personal property brought into this State, by the manufacturer thereof, for storage, use, or consumption in this State by the manufacturer.
(5) gross proceeds accruing or proceeding from the sale or recharge at retail for prepaid wireless calling arrangements.
(a) 'Prepaid wireless calling arrangements' means communication services that:
(i) are used exclusively to purchase wireless telecommunications;
(ii) are purchased in advance;
(iii) allow the purchaser to originate telephone calls by using an access number, authorization code, or other means entered manually or electronically; and
(iv) are sold in units or dollars which decline with use in a known amount.
(b) All charges for prepaid wireless calling arrangements must be sourced to the:
(i) location in this State where the over-the-counter sale took place;
(ii) shipping address if the sale did not take place at the seller's location and an item is shipped; or
(iii) either the billing address or location associated with the mobile telephone number if the sale did not take place at the seller's location and no item is shipped."
SECTION 29. Section 12-36-2120 of the 1976 Code, as amended by Act 69 of 2003, is further amended by adding an appropriately numbered item at the end to read:
"( ) prescription and over-the-counter medicines and medical supplies, including diabetic supplies, diabetic diagnostic equipment, and diabetic testing equipment, sold to a health care clinic that provides medical and dental care without charge to all of its patients."
SECTION 30. A. Section 12-36-2510 of the 1976 Code is amended to read:
"Section 12-36-2510. (A)(1) Notwithstanding other provisions of this chapter,
when, in the opinion of the department, the nature of a taxpayers business renders it impracticable for the taxpayer to account for the sales or use taxes, as imposed by this chapter, at the time of purchase, the department may issue its certificate to the taxpayer authorizing the purchase at wholesale and the taxpayer is liable for the taxes imposed by this chapter with respect to the gross proceeds of sale, or sales price, of the property withdrawn, used or consumed by the taxpayer within this State. at its discretion, may issue or authorize for the efficient administration of the sales and use tax law any type of certificate allowing a taxpayer to purchase tangible personal property tax free and be liable for any taxes.
(2) In addition to any other type of certificate the department considers necessary to issue, the department may issue at its discretion:
(a) Direct Pay Certificate: a direct pay certificate allows its holder to make all purchases tax free and to report and pay directly to the department any taxes due. The holder of a direct pay certificate is liable for any taxes due. If an exemption or exclusion is not applicable, the tax is due upon the withdrawal, use, or consumption of the tangible personal property purchased with the certificate.
(b) Exemption Certificate: an exemption certificate, as opposed to allowing its holder to make all purchases tax free, allows its holder to make only certain purchases tax free such as machinery, electricity, or raw materials. The holder of an exemption certificate is liable for any taxes due. If an exemption or exclusion is not applicable, the tax is due upon purchase, or upon the withdrawal, use, or consumption of the tangible personal property purchased with the certificate if the application of the exemption or exclusion cannot be determined at the time of purchase.
(B) To reduce the complexity and administrative burden of transactions exempt from sales or use tax, the following provisions must be followed when a purchaser claims an exemption by use of an exemption certificate:
(1) the seller shall obtain at the time of the purchase any information determined necessary by the department, including the reason the purchaser is claiming a tax exemption or exclusion;
(2) the department, at its discretion, may utilize a system where the purchaser exempt from the payment of the tax is issued an identification number which must be presented to the seller at the time of the sale;
(3) the seller shall maintain proper records of exempt or excluded transactions and provide them to the department when requested and in the form requested by the department.
(C) A seller that complies with the provisions of this section is relieved from any tax otherwise applicable if it is determined that the purchaser improperly claimed an exemption or exclusion by use of a certificate, provided the seller fraudulently did not fail to collect or remit the tax, or both, or solicit a purchaser to participate in an unlawful claim of an exemption. The liability for any tax shifts to the purchaser who improperly claimed the exemption or exclusion by use of the certificate."
B. This section takes effect October 1, 2005.
SECTION 31. Items (5) and (8) of Section 12-37-220(B) of the 1976 Code are amended to read:
"(5) All property of the American Legion, the Veterans of Foreign Wars,
the Spanish American War Veterans, the Disabled American Veterans, and Fleet Reserve Association or any similar Veterans Organization chartered by the Congress of the United States, whether belonging to the department or to any of the Posts in this State when used exclusively for the purpose of such organization and not used for any purpose other than club rooms, offices, meeting places or other activities directly in keeping with the policy stated in the National Constitution of such organization, and such property is devoted entirely to its own uses and not held for 'pecuniary profit'. For the purposes of this item 'pecuniary profit' refers to income received from the sale of alcoholic beverages to persons other than bona fide members and their bona fide guests, or any income, any part of which inures to the benefit of any private individual. Where any structure or parcel of land is used partly for the purposes of such organization and partly for such pecuniary profits, the area for pecuniary profits shall be assessed separately and that portion shall be taxed.
(8) Properties of whatever nature or kind owned within the State and used or occupied by
the Palmetto Junior Homemakers Association, the New Homemakers of South Carolina, the South Carolina Association of Future Farmers of America and the New Farmers of South Carolina, so long as such properties are used exclusively to promote vocational education or agriculture, better business methods and more effective organization for farming or to encourage thrift or provide recreation for persons studying agriculture or home economics in the public schools."
SECTION 32. A. Subsections (a) and (b) of Section 12-54-42 of the 1976 Code are amended to read:
An employer A person who fails to comply with the provisions of Section 12-8-1540, requiring the furnishing of a withholding statement to employees is subject to a penalty of not less than one hundred dollars nor more than one thousand dollars for each violation.
An employer A person who fails to comply with the provisions of Section 12-8-540(A)(1) 12-8-1550, requiring the filing of withholding statements with the department is subject to a penalty of not less than one hundred dollars nor more than two thousand dollars for each violation."
B. This section takes effect July 1, 2005.
SECTION 33. A. Section 12-54-43(I) of the 1976 Code is amended to read:
"(I) A person:
(1)(a) who files what purports to be a return of the tax imposed by a provision of law administered by the department but which:
(a)(i) does not contain information on which the substantial correctness of the tax liability may be judged; or
(b)(ii) contains information that on its face indicates the liability is substantially incorrect; and or
(b) who files a claim, a protest, or document, other than a return, that contains information that on its face indicates its position is substantially incorrect; and
(2) whose conduct is due to:
(a) a position which is frivolous or groundless; or
(b) a desire, which appears on the purported return, claim, protest, or document, to delay or impede the administration of state tax laws;
(3) is liable to a penalty of five hundred dollars for the first filing, twenty-five hundred dollars for the second filing, and five thousand dollars for each subsequent filing.
This penalty is These penalties are in addition to all other penalties provided by law."
B. Section 12-54-43 of the 1976 Code, as last amended by Act 89 of 2001, is further amended by adding an appropriately lettered subsection at the end to read:
"( ) If a purchaser uses a resale, wholesale, or an exemption certificate issued or authorized by the department to purchase tangible personal property tax free which the purchaser knows is not excluded or exempt from the tax under the provisions of Chapter 36 of this title, then the purchaser, in addition to any other penalties due under this title, is liable for a penalty of five percent of the amount of the tax if the failure is for not more than one month, with an additional five percent for each additional month or fraction of the month during which the failure continues, not exceeding fifty percent in the aggregate. The provisions of this section do not apply to direct pay certificates."
C. Section 12-54-43(I) of the 1976 Code, as amended by subsection A. of this section, takes effect October 1, 2005. Section 12-54-43 of the 1976 Code, as amended by subsection B. of this section, takes effect July 1, 2005.
SECTION 34. Section 12-54-90(A) of the 1976 Code is amended to read:
"(A) When a person fails, neglects, violates, or refuses to comply with a provision of law or regulation administered by the department, the department, in its discretion, may refuse to issue a license to a taxpayer and may revoke one or more licenses held by the taxpayer.
within ten days of notification in writing of the taxpayer's failure to comply. The notification may be served by certified mail or personally."
SECTION 35. A. Section 12-54-210(A) of the 1976 Code is amended to read:
"(A) A person liable for a tax, license, fee, or surcharge administered by the department or for the filing of a return with the department, including information returns
, required by this title shall keep books, papers, memoranda, records, render statements, make returns, and comply with regulations as the department prescribes. Persons failing to comply with the provisions of this section must be penalized in an amount to be assessed by the department not to exceed five hundred dollars for the period covered by the return in addition to other penalties provided by law."
B. This section takes effect July 1, 2005.
SECTION 36. A. Items (11) and (12) of Section 12-54-240(B) of the 1976 Code are amended to read:
"(11) disclosure of information contained on a return to the South Carolina Employment Security
department Commission, Department of Revenue, or to the Department of the Treasury, Alcohol , and Tobacco Tax and Firearms Division Trade Bureau;
(12)(a) disclosure to any state agency, county auditor, or county assessor of whether a resident or nonresident tax return was filed by any particular taxpayer
(b) disclosure to any county auditor or county assessor of whether the four percent assessment pursuant to Section 12-43-220(c)(1) has been claimed by a taxpayer in any county."
B. Section 12-54-240(B)(24) of the 1976 Code, as added by Act 69 of 2003, is further amended to read:
"(24) disclosure of information pursuant to a subpoena issued by
a federal grand jury or the State Grand Jury of South Carolina."
SECTION 37. Section 12-58-185(A) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:
"(A) The department, in its discretion, may accept installment
payment payments for amounts due it for a period not to exceed one year from the date the payment was due originally. Interest accrues during the installment period, pursuant to Section 12-54-25. In addition, the department may extend the time for payment of an amount due it. An extension pursuant to this section may be granted only beyond one year if it is shown to the satisfaction of the department that the payment of the amount due it upon the date originally fixed for the payment will result in undue hardship to the taxpayer."
SECTION 38. A. Section 12-60-420 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-60-420. (A) If a division of the department makes a division decision or determines there is a deficiency in a state or local tax administered by the department, it may send by first class mail or deliver the division decision or the proposed assessment to the taxpayer. The division decision or the proposed assessment must explain the basis for the division decision or the proposed assessment and state that assessment will be made or the decision will become final unless the taxpayer protests the division decision or the proposed assessment as provided in Section 12-60-450.
(B) If the taxpayer fails to file a protest, the division decision or proposed assessment will become final and, if applicable, an assessment will be made for the amount of a proposed assessment. The department shall make available forms which taxpayers may use to protest the division decision or the proposed assessments. The division decision or the proposed assessment is effective if mailed to the taxpayer's last known address even if the taxpayer refuses or fails to take delivery, is deceased, or is under a legal disability, or, if a corporation, has terminated its existence. For a joint tax return or liability, one division decision or the proposed assessment may be mailed to both taxpayers unless the department has notice that the taxpayers have separate addresses in which event a duplicate original of the division decision or the proposed assessment must be sent to each taxpayer at his last known address."
B. This section takes effect January 1, 2005.
SECTION 39. Section 12-60-490 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-60-490. If a taxpayer is due a refund, the refund must be applied first against any amount of that same tax that is assessed and is currently due from the taxpayer. The remaining refund, if any, must then be applied against any other state taxes that have been assessed against the taxpayer and that are currently due, or offset as provided in
Article 3, Chapter 54 Chapter 56 of this title, or offset to collect a debt pursuant to Section 12-4-580, or both. If any excess remains, the taxpayer must be refunded the amount plus interest as determined in Section 12-54-25, or, at the taxpayer's request, it may be credited to future tax liabilities."
SECTION 40. A. Section 61-4-747(C)(4) of the 1976 Code, as added by Act 40 of 2003, is amended to read:
"(4) annually, by
August thirty-first January twentieth of each year, pay to the department all sales taxes and excise taxes due on sales to residents of this State in the preceding calendar year, the amount of the taxes to be calculated as if the sale were in this State at the location where delivery is made;"
B. Section 61-4-747(C)(4) of the 1976 Code, as amended by this section, applies for reports due after 2005.
SECTION 41. A. Article 4, Chapter 14, Title 33 of the 1976 Code is amended by adding:
"Section 33-14-420. Notwithstanding another provision of this title, a claimant may not commence a suit or other proceeding against a former shareholder of a dissolved corporation for any known or unknown claim arising from the liabilities of the corporation, acts or omissions of the corporation, or acts committed in its name if the corporation filed its articles of dissolution with the Secretary of State before January 1, 1989, or was otherwise judicially or administratively dissolved before January 1, 1989. Further, a claimant may not satisfy a judgment rendered against a dissolved corporation by proceeding against or joining an individual shareholder if the corporation filed its articles of dissolution with the Secretary of State before January 1, 1989, or was otherwise judicially or administratively dissolved before January 1, 1989."
B. This section takes effect upon approval of the Governor, and applies to corporations dissolved before, on, or after the effective date of this section.
SECTION 42. Notwithstanding the ratification of another act during the 2004-2005 Session of the General Assembly affecting the sections of the 1976 Code, amended in Sections 7, 8, 9, and 10 of this act, the ratification of this act is deemed to be the last action of the General Assembly regarding those code sections.
SECTION 43. A. Section 12-6-1130 of the 1976 Code is amended by adding:
"(12) The deduction for charitable contributions allowed by Section 170 of the Internal Revenue Code is determined in the same manner as provided in Section 170 of the code except that no deduction is allowed unless, in addition to the requirements of Section 170 of the Internal Revenue Code, the contribution also meets the requirements of Section 12-6-5590."
B. Section 12-6-3515(B)(1) of the 1976 Code is amended to read:
"(B)(1) For purposes of this section:
(a) 'Qualified conservation contribution' and a 'qualified real property interest' are defined as provided in Internal Revenue Code Section 170(h);
(b) 'Gift of land for conservation' means a charitable contribution of fee simple title to real property conveyed for conservation purposes as defined in Internal Revenue Code Section 170(h)(4)(A) to a qualified conservation organization as described in Internal Revenue Code Section 170(h)(3)
(c) No credit is allowed pursuant to this section unless the contribution meets the requirements of Section 170 of the Internal Revenue Code, this section, and Section 12-6-5590."
C. Subsections 12-43-232(3)(c) and 12-43-232(3)(d) of the 1976 Code are amended to read:
"(c) Real property idle under a federal or state land retirement program or property idle pursuant to accepted agricultural practices is agricultural real property if the property otherwise would have qualified as
such agricultural real property subject to satisfactory proof to the assessor.
(d) Unimproved real property subject to a perpetual conservation easement as provided in Chapter 8 of Title 27
must be classified as is agricultural real property if the property otherwise would have qualified as agricultural real property subject to satisfactory proof to the assessor."
D. Article 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-5590. (A) No credit under Section 12-6-3515 or deduction under Section 170 of the Internal Revenue Code and Section 12-6-1130(12) shall be allowed for a contribution unless the donor has the donative intent required by Section 170 of the Internal Revenue Code and the regulations and cases interpreting Section 170 of the Internal Revenue Code.
(B) In addition to the donative intent required by Section 170 of the Internal Revenue Code, no credit under Section 12-6-3515 or deduction under Section 170 of the Internal Revenue Code and Section 1-6-1130(12) shall be allowed for any non-cash charitable contribution in the claimed amount of $100,000.00 or more unless the donor has the requisite donative intent required by this section.
(C) The requisite donative intent includes the requirement that the donor be motivated by detached and disinterested generosity benefiting a charitable purpose rather than expected economic benefit.
(D) A non-cash charitable contribution by a donor given to comply with any state or federal environmental or other regulatory requirement; for the purpose of obtaining road, water, or sewer services; or in conjunction with obtaining a grant, subdivision, building, zoning, environmental, mitigation, or similar permit or approval from any government, shall be deemed not to have the requisite donative intent absent extraordinary circumstances.
(E) A contribution of an otherwise 'qualified contribution contribution' as defined in Section 170(h) of the Internal Revenue Code shall be deemed not to have the requisite donative intent if the underlying property is used for, or associated with, the playing of golf, or is planned to be so used or associated.
(F) The department shall examine the substance, rather than merely the form of the contribution and related and surrounding transactions, and my use the step transaction, economic reality, quid pro quo, personal benefit, and other judicially developed doctrines in determining whether the requisite donative intent is present."
SECTION 44. 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 Section 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 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 45. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-135. A county governing body may require a business registration throughout the entire county area and may impose an administrative fee not to exceed fifteen dollars. The fee is an administrative fee and must not be based upon business income. The business registration authorized by this section must be administered and enforced in the same manner as the business-license tax described in Section 4-9-30(12), but must not be converted into a business-license tax as described in that provision. The business registration administrative fee may be billed on any property tax bill and is deemed to be property tax for the purposes of collection if so billed. This registration, if adopted, is in lieu of any business license which is authorized pursuant to Section 4-9-30(12)."
SECTION 46. Chapter 45, Title 12 of the 1976 Code is amended by adding:
"Section 12-45-430. A county treasurer may not issue a tax receipt to a taxpayer unless the taxes, any applicable penalties and costs, and all other charges included on the tax bill have been paid in full."
SECTION 47. Section 12-37-2650 of the 1976 Code is amended to read:
"Section 12-37-2650. The auditor shall prepare a tax notice of all vehicles owned by the same person and licensed at the same time for each tax year within the two-year licensing period. A notice must describe the motor vehicle by name, model, and identification number. The notice must set forth the assessed value of the vehicle, the millage, the taxes due on each vehicle, and the license period or tax year. The notice must be delivered to the county treasurer who must collect or receive payment of the taxes. One copy of the notice must be in the form of a bill or statement for the taxes due on the motor vehicle and, when practical, the treasurer shall mail that copy to the owner or person having control of the vehicle. When the tax
is and all other charges included on the tax bill have been paid, the treasurer shall issue the taxpayer two copies of the a paid receipt. One The receipt or a copy may be delivered by the taxpayer to the Department of Motor Vehicles with the application for the motor vehicle registration. A copy record of the payment of the tax must be retained by the treasurer. The auditor shall maintain a separate duplicate for motor vehicles. No registration may be issued by the Department of Motor Vehicles unless the application is accompanied by the receipt, a copy of the notification required by Section 12-37-2610 or notice from the county treasurer, by other means satisfactory to the Department of Motor Vehicles, of payment of the tax. Motor vehicles registered under the International Registration Plan may pay ad valorem property taxes on a semiannual basis, and a proportional receipt must be issued by the treasurer subject to penalties in Section 12-37-2730. The treasurer, tax collector, or other official charged with the collection of ad valorem property taxes in each county may delegate the collection of motor vehicle taxes to banks or banking institutions, if each institution assigns, hypothecates, or pledges to the county, as security for the collection, federal funds or federal, state, or municipal securities in an amount adequate to prevent any loss to the county from any cause. Each institution shall remit the taxes collected daily to the county official charged with the collections. The receipt given to the taxpayer, in addition to the information required in this section and by Section 12-45-70, must contain the name and office of the treasurer or tax collector of the county and must also show the name of the banking institution to which payment was made.
The county official charged with the collection of taxes shall send a list of the institutions collecting the taxes to the Department of Motor Vehicles. Each institution shall certify to the Department of Motor Vehicles that the taxes have been paid, and the Department of Motor Vehicles is authorized to accept certification in lieu of the tax receipt given to the taxpayer if certification contains information required by this section.
Tax bills (notices) for county assessed personal property valued in accordance with applicable Department of Revenue regulations must include notification of the taxpayer's appeal rights, to include a minimum amount of information of how the taxpayer should file his appeal, to whom, and within what time period."
SECTION 48. Section 12-37-2730 of the 1976 Code is amended to read:
"Section 12-37-2730. (A) It is unlawful for
any a person to use the treasurer's receipt to obtain a motor vehicle license plates plate unless all municipal personal property taxes due in the county of his residence on any vehicles a vehicle now or previously owned by the applicant have been paid. Any A person who knowingly violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars. Each day's violation constitutes a separate offense.
The above penalty is in addition to any other penalties prescribed by law for failure to pay municipal taxes.
The verbatim text of the first paragraph of this section must be printed or stamped upon the treasurer's receipt. When a municipality contracts for the collection of its vehicle tax, a receipt for the payment of the taxes must not be issued unless both the county and municipal tax and all other charges included on the tax bill have been paid. The owner of any a motor vehicle registered under the International Reciprocity Plan who opts to pay semiannually and fails to pay semiannual payments as provided in this chapter is not permitted to relicense the vehicle until all taxes are paid and shall forfeit any further privilege to pay semiannually.
(B) To enforce the collection of personal property taxes and vehicle registration laws of this State, a code-enforcement officer may issue an ordinance summons to a person the officer believes has failed to remit property taxes to the appropriate taxing entity or a person he believes has failed to comply fully with the vehicle registration laws of this State. However, a code-enforcement officer may not stop a vehicle that is in motion to issue an ordinance summons pursuant to this section. A fine imposed pursuant to this section may not exceed the criminal jurisdiction of the magistrates' court. A magistrate shall dismiss an ordinance summons issued pursuant to this subsection upon a showing by the person summoned of proper registration and the payment of current and delinquent property taxes before the court hearing date set in the summons."
SECTION 49. Section 12-43-220(c) of the 1976 Code is amended by adding an appropriately numbered subitem at the end to read:
"( ) Notwithstanding any other provision of law, the owner-occupant of a legal residence is not disqualified from receiving the four percent assessment ratio allowed by this item if the taxpayer's residence meets the requirements of Internal Revenue Code Section 280A(g) as defined in Section 12-6-40(A) and the taxpayer otherwise is eligible to receive the four percent assessment ratio."
SECTION 50. Section 12-49-950 of the 1976 Code is amended to read:
"Section 12-49-950. If, on the sale of such personal property, there is no bid for as much as the tax and costs then due on the delinquent tax execution,
such the personal property shall must be bid in by the Forfeited Land Commission of the county for the amount of the delinquent tax and the accrued costs equal to the amount of all unpaid property taxes, assessments, and charges billed on the property tax bill, and all costs which may be incurred by a taxing entity as a result of the tax delinquency including taxes levied for the year in which the redemption period begins. An assessment for purposes of this section includes, but is not limited to, amounts owed a special taxing district created pursuant to Section 4-9-30, and a district created pursuant to Chapter 19 of this title and amounts owed pursuant to Chapter 15 of Title 6."
SECTION 51. Section 12-51-55 of the 1976 Code is amended to read:
"Section 12-51-55. The officer charged with the duty to sell real property and mobile or manufactured housing for nonpayment of ad valorem property taxes shall submit a bid on behalf of the Forfeited Land Commission equal to the amount of all unpaid property taxes, penalties, assessments, including, but not limited to, assessments owed to a special taxing district established pursuant to Section 4-9-30, Chapter 19 of Title 4, or an assessment district established pursuant to Chapter 15 of Title 6, and costs including taxes levied for the year in which the redemption period begins. The Forfeited Land Commission is not required to bid on property known or reasonably suspected to be contaminated. If the contamination becomes known after the bid or while the commission holds the title, the title is voidable at the election of the commission. If the property is not redeemed, the excess above the amount of taxes, penalties, assessments, charges, and costs for the year in which the property was sold must be applied first to the taxes becoming due during the redemption period."
SECTION 52. Section 12-51-130 of the 1976 Code, is amended to read:
"Section 12-51-130. Upon failure of the defaulting taxpayer, a grantee from the owner, a mortgagee, a judgment creditor, or a lessee of the property to redeem realty within the time period allowed for redemption, the person officially charged with the collection of delinquent taxes, within thirty days or as soon after that as possible, shall make a tax title to the purchaser or the purchaser's assignee. Delivery of the tax title to the clerk of court or register of deeds is considered 'putting the purchaser, or assignee, in possession'. The tax title must include, among other things, the name of the defaulting taxpayer, the name of any grantee of record of the property, the date of execution, the date the realty was posted and by whom, and the dates each certified notice was mailed to the party or parties of interest, to whom mailed and whether or not received by the addressee. The successful purchaser, or assignee, is responsible
in the amount of fifteen dollars for the actual cost of preparing the tax title plus documentary stamps necessary to be affixed and recording fees. The successful purchaser, or assignee, shall pay the amounts to the person officially charged with the collection of delinquent taxes before delivery of the tax title to the clerk of court or register of deeds and, upon payment, the person officially charged with the collection of delinquent taxes is responsible for promptly transmitting the tax title to the clerk of court or register of deeds for recording and remitting the recording fee and documentary stamps cost. If the tax sale of an item produced more cash than the full amount due in taxes, assessments, penalties, and costs, the overage belongs to the owner of record immediately before the end of the redemption period to be claimed or assigned according to law. These sums are payable ninety days after execution of the deed unless a judicial action is instituted during that time by another claimant. If neither claimed nor assigned within five years of date of public auction tax sale, the overage shall escheat to the general fund of the governing body. Before the escheat date, unclaimed overages must be kept in a separate account and must be invested so as not to be idle and the governing body of the political subdivision is entitled to the earnings for keeping the overage. On escheat date the overage must be transferred to the general funds of the governing body."
SECTION 53. Section 12-54-25(C)(3) of the 1976 Code is amended to read:
"(3) Interest on an overpayment is not allowed pursuant to this subsection if it is refunded:
(a) within seventy-five days after the last day prescribed for filing the tax return, without regard to an extension of time for filing, or within seventy-five days after the last day prescribed for paying the tax if no return is required;
(b) within seventy-five days after the return is filed, in the case of a return filed after the last date;
(c) within seventy-five days after the taxpayer files a claim for a credit or refund for the overpayment of tax for the period between the filing of the claim to the payment of the refund; or
(d) within seventy-five days after the county has received notice from the Department of Revenue that the taxpayer is due a credit or refund for the overpayment of property taxes."
SECTION 54. Section 12-54-240(B)(12) of the 1976 Code is amended to read:
"(12) disclosure to
any a state agency, county auditor, or county assessor of whether a resident or nonresident tax return was filed by any a particular taxpayer, whether the return is joint or individual, the name of any taxpayer filing jointly with the taxpayer, and what county code of residence is contained on the return."
SECTION 55. Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-712. A marina must provide immediate access to its business records and premises to city, county, and state tax authority employees for the purpose of making a property tax assessment. For the purposes of this section, 'marina' means a facility that provides mooring or dry storage for watercraft on a leased or rental basis."
SECTION 56. 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 year.
SECTION 57. Section 12-36-2120(57)(a)(v) of the 1976 Code, as added by Act 387 of 2000, is amended to read:
"(v) computers, printers and printer supplies, and computer software;
(vi) bath wash clothes, blankets, bed spreads, bed linens, sheet sets, comforter sets, bath towels, shower curtains, bath rugs and mats, pillows, and pillow cases."
SECTION 58. 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 59. 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. Upon approval by the Governor, this act is effective for taxable years beginning after 2004.
SECTION 60. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 61. Except where otherwise provided, this act takes effect upon approval by the Governor.
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