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TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO MOVE FORWARD FROM JULY 1, 2011, TO JULY 1, 2008, THE EXEMPTION ALLOWED FOR CONSTRUCTION MATERIALS USED IN THE CONSTRUCTION OR EXPANSION OF A MANUFACTURING OR DISTRIBUTION FACILITY AND TO REDUCE FROM ONE HUNDRED MILLION TO FIFTY MILLION DOLLARS THE MINIMUM INVESTMENT REQUIRED TO RECEIVE THE EXEMPTION; TO AMEND ACT 384 OF 2006, RELATING TO MISCELLANEOUS REVENUE PROVISIONS, SO AS TO CONFORM A PHASE-IN PROVISION FOR THE CONSTRUCTION MATERIALS SALES TAX EXEMPTION AMENDMENT IN THIS ACT; AND TO AMEND SECTION 12-43-220, AS AMENDED, RELATING TO THE CLASSIFICATION OF PROPERTY AND APPLICABLE ASSESSMENT RATIOS FOR PURPOSES OF THE PROPERTY TAX, SO AS TO REVISE THE DEFINITION OF MANUFACTURING PROPERTY WITH RESPECT TO WAREHOUSING AND DISTRIBUTION FACILITIES OWNED OR LEASED BY A MANUFACTURER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. Section 12-36-2120(67) of the 1976 Code, as amended by Act 116 of 2007, is further amended to read:
"(67) effective July 1, 20112008, construction materials used in the construction of a new or expanded single manufacturing or distribution facility, or one that serves both purposes, with a capital investment of at least one hundredfifty million in real and personal property at a single site in the State over an eighteen-month period. The taxpayer must provide notice of the exemption, and the Department of Revenue may assess taxes owing in the manner provided in Section 12-36-2120(51)."
B. Section 11B of Act 384 of 2006 is amended to read:
"B. 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 qualifying construction materials used in the construction of a single manufacturing and distribution facility, created by this act, is four percent for sales from July 1, 2007, through June 30, 2008, three percent for such sales from July 1, 2008, through June 30, 2009, two percent for such sales from July 1, 2009, through June 30, 2010, and one percent for such sales from July 1, 2010, through June 30, 2011."
SECTION 2. Section 12-43-220(a) of the 1976 Code is amended to read:
"(a)(1) All real and personal property owned by or leased to manufacturers and utilities and used by the manufacturer or utility in the conduct of the business must be taxed on an assessment equal to ten and one-half percent of the fair market value of the property.
(2) Real property owned by or leased to a manufacturer and used primarily for research and development is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property underpursuant to this item (a) of this section. The term 'research and development' means basic and applied research in the sciences and engineering and the design and development of prototypes and processes.
(3) Real property owned by or leased to a manufacturer and used primarily as an office building is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property underpursuant to this item (a) of this section if the office building is not located on the premises of or contiguous to the plant site of the manufacturer.
(4) Real property owned by or leased to a manufacturer and used primarily for warehousing and wholesale distribution of clothing and wearing apparel is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property underpursuant to this item (a) of this section if the property is not located on the premises of or contiguous to the manufacturing site of the manufacturer."
SECTION 3. This act takes effect upon approval by the Governor.
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