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403Ratification Number: 310Act Number: 308Introducing Body: SenateSubject: Relating to filing income tax returns
(A308, R310, S403)
AN ACT TO AMEND SECTION 12-7-1640, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FILING INCOME TAX RETURNS, SO AS TO CLARIFY FILING REQUIREMENTS FOR EXEMPT ORGANIZATIONS, TO AMEND SECTION 12-7-2240, AS AMENDED, RELATING TO TAX REFUNDS, SO AS TO PROVIDE A PROCEDURE FOR A TAXPAYER TO CHALLENGE WITHHOLDING OF A REFUND BECAUSE OF A STUDENT LOAN DEFAULT, TO AMEND SECTION 12-19-20, AS AMENDED, RELATING TO LICENSE FEES OF CORPORATIONS, SO AS TO CLARIFY REPORTING REQUIREMENTS OF EXEMPT ORGANIZATIONS, TO AMEND ARTICLE 19, CHAPTER 21, OF TITLE 12 OF THE 1976 CODE, RELATING TO THE TAX ON X-RATED MOVIES, SO AS TO MOVE TO THE ARTICLE THE PROVISIONS RELATING TO COIN-OPERATED MACHINES AND DEVICES AND OTHER AMUSEMENTS ADMINISTERED BY THE SOUTH CAROLINA TAX COMMISSION, TO AMEND THE 1976 CODE BY ADDING SECTION 12-35-1125, SO AS TO EXEMPT INDIVIDUALS RENTING ACCOMMODATIONS TO TRANSIENTS FOR ONE WEEK OR LESS IN A CALENDAR QUARTER FROM OBTAINING RETAIL LICENSES AND TO PRESCRIBE A METHOD FOR THEIR PAYING SALES AND ACCOMMODATIONS TAXES ON RENTALS, AND TO REPEAL CHAPTERS 11 AND 15 OF TITLE 52 OF THE 1976 CODE, RELATING TO POOL, BILLIARDS, AND COIN-OPERATED MACHINES AND DEVICES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-7-1640 of the 1976 Code is amended to read:
"Section 12-7-1640. Returns must be in the form as the Commission may from time to time prescribe and must be filed with the Commission on or before the fifteenth day of the fourth month next after the preceding income year, except returns of corporations, which shall file returns on or before the fifteenth day of the third month next after the preceding income year. Returns of information provided for by Section 12-7-1590 must be filed before March fifteenth of each year and shall set forth the information required by Section 12-7-1590 for the calendar year next preceding. Returns required to be filed by organizations exempt under Internal Revenue Code Section 501 must be filed in accordance with Internal Revenue Code Section 6033.
In the case of sickness, absence, or other disability, or good cause, the Commission may allow further time for the filing of the returns required by this section. The Commission may require the filing of tentative return showing the amount of tax estimated to be due, in which case at least one fourth of the amount of tax estimated due by a corporation, and the entire amount of tax estimated by an individual or a fiduciary, must be paid. The completed return must be filed within the time allowed by the Commission and the balance of the tax or installment of the tax due must be paid in full."
SECTION 2. Subsection A of Section 12-7-2240 of the 1976 Code is amended by adding a new paragraph at the end of the subsection to read:
"In order to obtain any refund due a taxpayer which is withheld under this subsection for the purpose of offsetting defaulted amounts on educational loans, the taxpayer shall apply in writing for a hearing with the appropriate educational institution to which the refund was transferred within thirty days of the date of the mailing of notice."
SECTION 3. Section 12-19-20 of the 1976 Code, as amended by Act 54 of 1977, is further amended to read:
"Section 12-19-20. Every corporation organized under the laws of this State and every corporation organized to do business under the laws of any other state, territory, or country and qualified to do business in South Carolina and any other corporation required by Section 12-7-230 to file income tax returns shall, in addition to any and all other requirements of law, make a report annually to the Tax Commission on or before the fifteenth day of the third month next after the preceding income year in a form prescribed by the Tax Commission containing information and facts the Commission may require for the administration of the provisions of this chapter. Organizations exempt from taxation under Internal Revenue Code Section 501, in addition to other requirements of law, shall make a report to the Commission on or before the fifteenth day of the fifth month following the close of the taxable year."
Coin operated machines and devices
SECTION 4. Article 19, Chapter 21, of Title 12 of the 1976 Code is amended to read:
Coin-Operated Machines and Devices
and Other Amusements
Section 12-21-2710. It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.
Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both.
Section 12-21-2712. Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by Section 12-21-2710 must be seized by any officer of the law and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if he is satisfied that it is in violation of Section 12-21-2710 or any other law of this State he shall direct that it be immediately destroyed.
Section 12-21-2714. Any person who operates or causes to be operated, or who attempts to operate, or attempts to cause to be operated any automatic vending machine, slot machine, coin-box telephone, or other such receptacle (receptacle) designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service by means of a slug or any false, counterfeited, mutilated, sweated, or foreign coin or by any means whatsoever not lawfully authorized by the owner, lessee, or licensee of the receptacle or who shall take, obtain, or receive from or in connection with any receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service any goods, wares, merchandise, gas, electric current, or other article of value or the use or enjoyment of any telephone or telegraph facilities, or service, or of any musical instrument, phonograph, or other property, without depositing in and surrendering to the receptacle lawful coin of the United States of America in the amount required by the owner, lessee, or licensee of the receptacle is guilty of a misdemeanor and, upon conviction, must be punished by a fine or imprisonment, in the discretion of the court.
Section 12-21-2716. Any person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the contents of any automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service or who, knowing that the same is intended for unlawful use, manufactures for sale, or sells, or gives away any slug, device, or substance intended or calculated to be placed or deposited in the automatic vending machine, slot machine, coin-box telephone or other receptacle, depository, or contrivance is guilty of a misdemeanor and, upon conviction, must be punished by a fine or imprisonment, in the discretion of the court.
Section 12-21-2718. Every person required to obtain a license required under Sections 12-21-2720 and 12-21-2730 shall maintain records showing the manufacturers' serial number, model, or type of machine.
Section 12-21-2720. Every person who maintains for use or permits the use of, on any place or premises occupied by him, any of the machines or devices described below shall apply for and procure from the South Carolina Tax Commission a license for the privilege of making use of every such machine in South Carolina, and shall pay for the license a tax of twenty-five dollars for each machine described in item (1) below, one hundred dollars for each machine described in item (2) below, and three hundred sixty-five dollars for each machine described in item (3) below.
Municipalities may increase the amount charged as license for the operation of the machines over the maximum amounts allowed before March 28, 1956, by a sum not to exceed twenty percent. No municipality may limit the number of machines within the boundaries of the municipality.
(1) Any machine for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes wherein is deposited any coin or thing of value.
(2) Any machine for the playing of amusements, or video games, without free play feature operated by a slot wherein is deposited any coin or thing of value; and any machine for the playing of games or amusements, which has a free play feature, operated by a slot wherein is deposited any coin or thing of value and the machine is of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls can be altered or changed.
(3) Any machine of the nonpayout type, in-line pin game, or video game with free play feature operated by a slot wherein is deposited any coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls can be altered or changed.
Section 12-21-2722. In lieu of the license required under Sections 12-21-2720, 12-21-2728, and 12-21-2730 the Commission may issue a temporary license to those persons making application to operate machines defined in Sections 12-21-2720 and 12-21-2730 at a recognized county or state fair. The temporary license provided under this section is the total amount of license fees required on all machines for which application is made, based upon one-twelfth of the annual license required under Sections 12-21-2720, 12-21-2728, and 12-21-2730. The license is valid for the specific location designated on the license and the number of machines for which application was made and expires when the designated fair officially ends.
Section 12-21-2724. Upon application being made for a license to operate any machine or apparatus under this article, the Commission may presume that the operation of the machine or apparatus is lawful and when a license has been issued for the operation thereof the sum paid for the license may not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.
Section 12-21-2726. Every person who maintains for use or permits the use of, on any place or premises occupied by him, any machine subject to the license imposed by this article shall by way of proof of licensing have a current license attached to the machine, or alternatively the person shall have in his possession and produce on demand a receipt for a cashier's check, money order, or certified check not more than thirty days old made payable to the order of the South Carolina Tax Commission showing thereon the name or model except that those machines described in and licensed as Item (3) machines may by way of proof of licensing, have a current license on display at the premises occupied by him. The owners of those machines described in and licensed as Item (3) machines are specifically allowed to take advantage of those provisions of the United States Code which also authorize a tax credit for state imposed taxes.
Section 12-21-2728. Each person who leases or owns a location where ten or more machines, as defined by Section 12-21-2720, are located shall pay a license tax of one thousand dollars. The Commission may issue a temporary license which does not exceed ten consecutive days for which a license tax of two hundred fifty dollars is required.
For the purposes of this section 'location' means one individual building. In any amusement park where there is more than one building in which machines subject to this section are in use, and the buildings are within one thousand feet of each other, then the buildings are considered only one location if all the machines in the location are owned by the same person.
The license herein provided is in addition to all other licenses. Every person subject to the licensing requirements of this section shall, in advance, on or before the first day of July of each year, obtain a license for the privileges previously mentioned. All the licenses shall expire on the thirtieth day of June following date of issue. The application for a license under this section must be filed on blanks to be furnished by the Commission. Any person required to obtain a license by this section who fails to obtain the license within the time provided is subject to a penalty of not more than five hundred dollars. The Commission may waive the penalty in whole or in part.
Section 12-21-2730. Every person owning or operating any billiard or pocket billiard table,
footsball table, bowling lane table, or skeeball table for profit shall apply for and procure from the Commission a license for the privilege of operating the table and pay for the license a tax of twenty-five dollars for each table owned or operated.
The license provided in this section must be issued and is valid in accordance with Section 12-21-2734.
Section 12-21-2732. Every person who maintains for use or permits the use, on any place or premises occupied by him, any machines subject to the license imposed by Section 12-21-2730 shall see that the proper state license is attached to a permanent, nontransferable part of the machine before its operation is commenced.
Section 12-21-2734. Every person subject to payment of tax under this article shall, in advance, on or before the first day of July of each year or before doing any act taxable under the provisions of this article, apply for and obtain from the Commission a state license for the privilege of engaging in the business and shall pay the tax levied therefor. All the licenses shall expire the thirtieth day of June following the date of issue. If any license required herein is purchased after July first, the license fee must be prorated on a monthly basis. Failure to obtain or renew a license as required by this article makes the person liable for the penalties imposed in this article.
Section 12-21-2736. The issuance of a license under the provisions of this article by the Commission does not make lawful the operation of any gambling machine or device, the operation of which is made unlawful under the laws of this State.
Section 12-21-2738. Any person who fails, neglects, or refuses to comply with the terms and provisions of this article or who fails to attach the required license to any machine, apparatus, billiard, or pocket billiard table, as herein required, is subject to a penalty of fifty dollars for each failure, and the penalty must be assessed and collected by the Commission.
Section 12-21-2740. Any license tax or penalties herein provided are a first preferred lien upon any and all of the property of the person charged therewith and the Commission may issue its execution therefor as is provided in Section 12-21-3020.
Section 12-21-2742. In addition to the penalties above provided, any machine, apparatus, billiard, or pocket billiard table not having attached thereto the required license, or which is improperly licensed, must be seized and confiscated by the Commission, its agents or employees, and sold at public auction after thirty days advertisement. Upon payment of the license required, the Commission may, within its discretion, return any property so seized and confiscated and compromise any penalty assessed.
Section 12-21-2744. The owner or person from whom the property is seized may at any time within five days after the seizure repossess the property by filing with the Commission a bond in cash or a bond executed by a surety company authorized to do business in this State in double the amount of the tax and penalties due. Within ten days thereafter the person must bring action in a court of competent jurisdiction to have the seizure set aside, otherwise the bond so filed must be declared forfeited by the Commission.
Section 12-21-2746. Municipalities and counties may levy a license tax on the business taxed under this article, but in no case may a tax so levied exceed one half of the amount levied by the State before March 28, 1956."
SECTION 5. Article 9, Chapter 35, of Title 12 of the 1976 Code is amended by adding:
"Section 12-35-1125. Any person furnishing accommodations to transients, as prescribed under Section 12-35-1120, for one week or less in any calendar quarter is exempt from the licensing requirements of this chapter. Taxes resulting from the furnishing of accommodations as described in this section must be remitted on an annual basis at the same time as returns prescribed under Section 12-7-1640 for individual income tax purposes. The Commission shall specify forms for the remittance of taxes and deposit funds as prescribed by law. The provisions of this section do not include rental agencies or persons having more than one rental unit."
SECTION 6. Chapters 11 and 15 of Title 52 of the 1976 Code are repealed.
SECTION 7. This act shall take effect upon approval by the Governor.