A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING ARTICLE 31 TO CHAPTER 9, TITLE 58 SO AS TO PERMIT CERTAIN ITEMS SOLD TO OR USED BY INTERNET ACCESS SERVICE PROVIDERS AND COMMUNICATIONS SERVICE PROVIDERS TO BE EXEMPT FROM SALES TAX.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.  Chapter 9, Title 58 of the S.C. Code is amended by adding:

Article 31

Service Provider Tax Exemptions

    Section 58-9-3100. (A) All supplies, technical equipment, machinery, and electricity sold to internet access service providers and communications service providers, for use in producing, broadcasting, or distributing internet access service, communications services, or any combination thereof are exempt from sales tax imposed by Chapter 36, Title 12 pursuant to the provisions of Section 12-36-2120. For purposes of this section, internet access service providers and communications service providers are deemed to be manufacturers.

    (B) An internet access provider or communications service provider shall apply to the Department of Revenue for a refund of state and local sales and use taxes paid on items exempt under this section not later than January thirty-first for the prior calendar year. No later than May first, the department shall calculate the total amount of qualifying refund claims. If the total amount of refund claims exceeds ten million dollars, the department shall issue pro-rata refunds such that the total amount of refund claims shall not exceed ten million dollars. Refunds shall be paid no later than June first.

SECTION 2.  This act takes effect upon approval by the Governor and applies to tax years beginning after 2025.

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