Bill 2964

                    Current Status

Bill Number:               2964
Ratification Number:       441
Act Number                 361
Introducing Body:          House
Subject:                   Relating to assessment and return of
                           merchants' inventories and manufacturers' real
                           and personal property to the Tax
                           Commission

(A361, R441, H2964)

AN ACT TO AMEND SECTION 12-37-970, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ASSESSMENT AND RETURN OF MERCHANTS' INVENTORIES AND MANUFACTURERS' REAL AND PERSONAL PROPERTY TO THE TAX COMMISSION, SO AS TO PROVIDE THAT SUCH PROPERTY SHALL NOT BE TAXED TO MORE THAN ONE OWNER DURING ANY ONE CALENDAR YEAR, TO DESIGNATE THE PERSONS LIABLE FOR PAYMENT, AND TO EXCLUDE MOTOR VEHICLES LICENSED FOR USE ON PUBLIC HIGHWAYS, AND TO PROVIDE FOR THE PROCEDURE FOR TAXING AUTOMOBILES BY COUNTY AUDITORS AND THAT THEY SEND TAX NOTICES ONLY WHEN TAX IS DUE AND NOT WHEN AUTOMOBILE IS PURCHASED.

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

Legislative findings

Section 1. The General Assembly finds that property enumerated in Section 12-37-970 of the 1976 Code is required to be returned as of the end of the owner's regular accounting period that is used for income tax purposes. The liability of the owner to return and pay a tax on such property is fixed at that time for the next ensuing calendar year. When that property is sold to another with an accounting or tax year ending after the seller's and before the beginning of the next ensuing calendar year, the property is required to be returned by the purchaser and is also taxable to the purchaser.

The General Assembly further finds that equity requires the elimination of this multiple taxation by making the seller and the purchaser jointly and singularly liable for the tax.

Return of merchants' inventory and manufacturers' read and personal property

Section 2. Section 12-37-970 of the 1976 Code is amended by adding at the end:

"When property required to be returned as herein provided is sold after the end of the seller's accounting year and before January first next ensuing and when the purchaser's accounting year ends after the seller's and before January first next ensuing, such property shall be returned by the seller as of the end of his accounting period. The purchaser shall not be required to list and return the property as of the close of his accounting period during the calendar year of sale. The seller and the purchaser shall be jointly and singularly liable for the tax that is due and payable by reason of this provision. The provision of this section shall not apply to motor vehicles licensed for use on public highways."

Legislative intent

Section 3. It is the intent of the General Assembly that the county auditors follow the procedure for taxing automobiles as provided in Act 405 of 1980, and that they refrain from sending tax notices to the taxpayer when he purchases a new automobile and the license plate from the trade-in. The tax on an automobile shall not be due until the renewal date of the license plate. The auditors shall send out tax notices only when the tax is due and not every time that an automobile is purchased.

Time effective

Section 4. This act shall take effect upon the approval by the Governor.