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Indicates New Matter
HOUSE AMENDMENTS AMENDED
May 30, 2007
S. 310
S. Printed 5/30/07--S. [SEC 5/31/07 2:04 PM]
Read the first time January 23, 2007.
TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT THE GROSS PROCEEDS OF SALES OR SALES PRICE OF DURABLE MEDICAL EQUIPMENT AND RELATED MEDICAL SUPPLIES ELIGIBLE FOR MEDICARE OR MEDICAID REIMBURSEMENT AND WHICH ARE SOLD BY WRITTEN PRESCRIPTION OR CERTIFICATE OF MEDICAL NECESSITY.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) durable medical equipment and related supplies:
(a) as defined under federal and state Medicaid and Medicare laws;
(b) which is paid directly by funds of this State or the United States under the Medicaid or Medicare programs, where state or federal law or regulation authorizing the payment prohibits the payment of the sale or use tax; and
(c) sold by a provider who holds a South Carolina retail sales license and whose principal place of business is located in this State."
SECTION 2. Notwithstanding the sales and use rates imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales of items described in SECTION 1 is five and one-half percent for such sales from July 1, 2007, through June 30, 2008, four percent for such sales from July 1, 2008, through June 30, 2009, three percent for such sales from July 1, 2009, through June 30, 2010, two percent for such sales from July 1, 2010, through June 30, 2011, one percent for such sales from July 1, 2011, through June 30, 2012, and as of July 1, 2012, there shall be no sales and use rates on the gross proceeds of sales of items described in SECTION 1. Eighty percent of the revenues of the sales taxes raised by the special tax rates provided pursuant to this section must be credited to the general fund of the State and used as sales taxes are used and the remainder must be credited to the Education Improvement Act Fund.
SECTION 3. Beginning with the February 15, 2008, forecast by the Board of Economic Advisors of annual general fund revenue growth for the upcoming fiscal year, and annually thereafter, if the forecast of that growth equals at least five percent of the most recent estimate by the board of general fund revenues for the current fiscal year, then the applicable state sales and use tax rate imposed on items described in SECTION 1 is reduced, effective the following July first, by one and one-half percent in the first year, and one percent every year thereafter. That reduced rate applies until a subsequent reduction takes effect. If the February fifteenth forecast meets the requirement for a rate reduction, the board promptly shall certify this result in writing to the Department of Revenue. On the July first that the rate attains zero, the provisions of this subsection no longer apply.
SECTION 4. This act takes effect July 1, 2007.
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