Bill 779

                    Current Status

Bill Number:               779
Ratification Number:       378
Act Number                 321
Introducing Body:          Senate
Subject:                   Relating to penalties and interest for
                           late payment of insurance fees and taxes by
                           an insurer to the Chief Insurance
                           Commissioner and to the payment of such
                           penalties or interest under protest

(A321, R378, S779)

AN ACT TO AMEND SECTIONS 38-1-60 AND 38-1-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PENALTIES AND INTEREST FOR LATE PAYMENT OF INSURANCE FEES AND TAXES BY AN INSURER TO THE CHIEF INSURANCE COMMISSIONER AND TO THE PAYMENT OF SUCH PENALTIES OR INTEREST UNDER PROTEST, SO AS TO ALLOW AN INSURER ONE YEAR FROM THE DATE OF THE ORIGINAL TAX RETURN OR OTHER DOCUMENT TO FILE AN AMENDED RETURN, PROVIDE FOR A REFUND AND FOR AN INSURER TO BRING AN ACTION OF PROTEST ONLY AGAINST THE COMMISSIONER INSTEAD OF IN THE ALTERNATIVE AGAINST THE STATE TREASURER AND DELETE THE LANGUAGE PROVIDING THAT WITHIN FORTY-FIVE DAYS OF PAYMENT UNDER PROTEST THE INSURER FURNISH EVIDENCE TO THE COMMISSIONER; AND TO REPEAL SECTION 38-3-300, RELATING TO THE REFUND OF MONIES ERRONEOUSLY PAID TO THE CHIEF INSURANCE COMMISSIONER ON BEHALF OF THE SOUTH CAROLINA LIQUEFIED PETROLEUM GAS BOARD.

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

Fees and taxes due

Section 1. Section 38-1-50 of the 1976 Code, as added by Act 63 of 1979, is amended to read:

"Section 38-1-50. (a) As soon as practicable after each tax return or other document is filed, the Commissioner, when fees and taxes are involved, shall examine such document and compute the fees and taxes due. If the fees and taxes found due are greater than the amount theretofore paid, the excess must be paid to the Commissioner within fifteen days after notice of the amount due is mailed by the Commissioner. If the amount due is not paid within the fifteen day period, a penalty of five percent of the amount due may be assessed.

(b) If the additional fees and taxes found to be due upon the examination of the document are not paid within fifteen days of notice by the Commissioner, interest shall be added to the amount of the deficiency at the rate of five percent for each month or fraction of a month from the date the tax was originally due until the date the deficiency is paid. The total maximum interest to be charged shall not exceed twenty-five percent. The interest provided for in this section shall be computed from the date the fees or taxes were originally due to the date of payment.

(c) At any time up to one year after the date upon which any original tax return or other document is required to be filed, an insurer or other person may file an amended return to correct errors of overpayment or other errors made by such insurer or person ill the original return or document. No amended return or document shall be filed by any insurer or person or accepted by the Commissioner after the expiration of such one year period. No tax adjustment, deduction, or credit shall be made or taken by such insurer or person, or allowed by the Commissioner, on any return or document filed after the expiration of such one year period for errors claimed to have been made by the insurer or other person in the original return or document.

(d) If, upon examination of any original or amended return or document, it appears to the Commissioner that the amount of fees or taxes due is less than the amount theretofore paid, the excess shall be ordered refunded by the Commissioner. No refunds shall be made with respect to any monies which are distributable to a governmental unit after such distribution has been made.

(e) The provisions of this section shall not apply to the continuation of annual license fees for agencies, brokers, appraisers, or adjusters."

Fees, taxes, penalties, or interest paid under protest

Section 2. Subsection B of Section 38-1-110 of the 1976 Code as added by Act 63 of 1979, is amended to read:

"B. Any insurer or other person paying any fees, taxes, penalties, or interest under protest must within thirty days after making such payment bring an action against the Commissioner for the recovery thereof, in the court of common pleas for Richland County. If it is determined in such action that such fees, taxes, penalties, or interest was unjustly or illegally collected, the court shall so certify of record, and the State Treasurer shall refund the fees, taxes, penalties, or interest to the payor."

Repeal

Section 3. Section 38-3-300 of the 1976 Code is repealed.

Time effective

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