Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 16, 2007
S. 656
Introduced by Senators Leatherman, Moore, Leventis, McGill, Cleary, Setzler and Land
S. Printed 5/16/07--H. [SEC 5/18/07 3:11 PM]
Read the first time May 1, 2007.
To whom was referred a Bill (S. 656) to amend Section 12-36-910, as amended, Code of Laws of South Carolina, 1976, relating to the imposition of the state sales and use tax, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking item (3) of Section 12-36-910(D) as contained in SECTION 1, page 2 and inserting:
/ (3) While the special sales tax rate imposed pursuant to this subsection is as much as one percent, an amount of the sales tax revenue derived from the special rate on food, as calculated by the Board of Economic Advisors, equal to a sales tax rate of one percent on such food must be credited to the EIA Fund. Any balance of such revenues must be credited to the general fund of the State and used for the purposes provided pursuant to Section 59-21-1010(A). When the special sales rate on food equals .5 percent, all revenue of that special sales tax rate on food plus an equal amount of nonsales tax revenue transferred from the general fund of the State, must be credited to the EIA Fund. /
Amend further, page 2, by striking SECTION 2 and inserting:
/ SECTION 2. Section 12-36-2120 of the 1976 Code is amended by adding a new item at the end appropriately numbered to read:
"( ) effective on the July first that the provisions of Section 12-36-910(D) no longer apply, unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons. However, the exemption allowed by this item applies only to the state sales and use tax imposed pursuant to this chapter. There is transferred annually from nonsales tax revenues of the general fund of the State to the EIA Fund an amount calculated by the Board of Economic Advisors to equal the revenue of a one percent state sales tax on food exempted from sales tax pursuant to this item." /
Amend further, page 3, by striking SECTION 3 and inserting:
/ SECTION 3. Section 12-6-510(A) of the 1976 Code is amended to read:
"(A) For taxable years beginning after 1994 2006, a tax is imposed on the South Carolina taxable income of individuals, estates, and trusts and any other entity except those taxed or exempted from taxation under Sections 12-6-530 through 12-6-550 computed at the following rates with the income brackets indexed in accordance with Section 12-6-520:
Not over $2,220 2.5 percent of taxable income
over $2,220 but $56 plus 3 percent of
not over $4,440 the excess over $2,220;
over $4,440 but $123 plus 4 percent of
not over $6,660 the excess over $4,440;
over $6,660 but $212 plus 5 percent of
not over $8,880 the excess of $6,660;
over $8,880 but $323 plus 6 percent of
not over $11,100 the excess over $8,880;
over $11,100 $456 plus 7 percent of
the excess over $11,100.
OVER BUT NOT
OVER
$ 0 $2,630 2.5% times the amount
2,630 5,260 3% times the amount less $13
5,260 7,890 4% times the amount less $66
7,890 10,520 5% times the amount less $144
10,520 13,150 6% times the amount less $250
13,150+ or more 6.83% times the amount less $381."
SECTION 4. Except where otherwise stated, this act takes effect July 1, 2007. /
Renumber sections to conform.
Amend title to conform.
DANIEL T. COOPER for Committee.
TO AMEND SECTION 12-36-910, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE IMPOSITION OF THE STATE SALES AND USE TAX AND THE SPECIAL THREE PERCENT SALES AND USE TAX IMPOSED ON UNPREPARED FOOD, SO AS TO REDUCE THIS SPECIAL RATE ON UNPREPARED FOOD FROM THREE PERCENT TO TWO PERCENT EFFECTIVE JANUARY 1, 2008, TO DELETE AN OBSOLETE PROVISION, AND TO REDUCE THIS TWO PERCENT RATE IN INCREMENTS OF ONE-HALF OF ONE PERCENTAGE POINT IF THE FEBRUARY FIFTEENTH FORECAST OF ANNUAL GENERAL FUND GROWTH FOR THE UPCOMING FISCAL YEAR EQUALS AT LEAST FIVE PERCENT OF THE MOST RECENT ESTIMATE OF GENERAL FUND REVENUE FOR THE CURRENT FISCAL YEAR; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO PROVIDE A PERMANENT EXEMPTION FOR UNPREPARED FOOD WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS BEGINNING THE JULY FIRST THAT THE PHASE-DOWN OF THE STATE SALES TAX RATE ON UNPREPARED FOOD ATTAINS ZERO.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-910(D) of the 1976 Code, as added by Act 388 of 2006, is amended to read:
"(D)(1) Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, effective November 1, 2007, the sales and use tax on the gross proceeds of sales or sales price of unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons is three one percent.
(2) There is transferred from the general fund of the State to the EIA Fund in fiscal year 2006-2007 the revenue estimated by the Board of Economic Advisors to equal EIA revenue not received as a result of the two percent sales tax differential provided pursuant to this subsection. 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, the then applicable state sales and use tax rate imposed on unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons is reduced, effective the following July first, by one-half of one percentage point. 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.
(3) Twenty percent of the sales and use tax revenue attributable to the then applicable special rate imposed pursuant to this subsection, as estimated by the Board of Economic Advisors, must be credited to the EIA Fund. The balance of the revenue must be credited to the general fund of the State and used for the purposes provided for pursuant to Section 59-21-1010(A)."
SECTION 2. Section 12-36-2120 of the 1976 Code is amended by adding a new item at the end appropriately numbered to read:
"( ) effective on the July first that the provisions of Section 12-36-910(D) no longer apply, unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons. However, the exemption allowed by this item applies only to the state sales and use tax imposed pursuant to this chapter."
SECTION 3. Except where otherwise stated, this act takes effect July 1, 2007.
This web page was last updated on Monday, June 22, 2009 at 3:06 P.M.