Current Status Introducing Body:House Bill Number:3463 Primary Sponsor:Committee (30) Committee Number:06 Type of Legislation:GB Subject:Motion picture companies, certain tax exemptions Residing Body:Senate Current Committee:Finance Computer Document Number:JIC/5309.HC Introduced Date:Feb 07, 1991 Date of Last Amendment:Mar 06, 1991 Last History Body:Senate Last History Date:Mar 07, 1991 Last History Type:Committed to Committee Scope of Legislation:Statewide Sponsor Committee:Ways and Means Sponsor Committee Number:30 Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
3463 Senate Mar 07, 1991 Committed to Committee 06
3463 House Mar 06, 1991 Senate amendments amended,
returned to Senate
3463 House Feb 28, 1991 Debate adjourned until
Wednesday, March 6
3463 Senate Feb 21, 1991 Amended, read third time,
returned to House with
amendment
3463 Senate Feb 20, 1991 Amended, read second time,
notice of general amendments
3463 Senate Feb 19, 1991 Recalled from Committee, 06
placed on Calendar for
consideration tomorrow
3463 Senate Feb 14, 1991 Introduced, read first time, 06
referred to Committee
3463 House Feb 13, 1991 Read third time, sent to
Senate
3463 House Feb 12, 1991 Read second time
3463 House Feb 07, 1991 Introduced, read first time
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Indicates Matter Stricken
Indicates New Matter
SENATE AMENDMENTS AMENDED--NOT PRINTED BY HOUSE--MARCH 6, 1991. Done 1/13/92
February 21, 1991
H. 3463
S. Printed 2/21/91--S.
Read the first time February 14, 1991.
TO AMEND SECTION 12-9-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATE INCOME TAX WITHHOLDING PAYMENTS, SO AS TO EXEMPT NONRESIDENT MOTION PICTURE COMPANIES FROM THE TWO PERCENT WITHHOLDING ON BUSINESS OF A TEMPORARY NATURE IN THIS STATE AND TO EXEMPT ENTITIES PERFORMING PERSONAL SERVICES FOR MOTION PICTURE COMPANIES IF THE ENTITY PERFORMING THE PERSONAL SERVICES AND THE MOTION PICTURE COMPANY EACH OBTAINS A CERTIFICATE OF AUTHORITY TO CONDUCT BUSINESS IN THIS STATE; AND TO AMEND SECTION 12-36-2120, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT SUPPLIES, TECHNICAL EQUIPMENT, MACHINERY, AND ELECTRICITY SOLD TO MOTION PICTURE COMPANIES AND TO PROVIDE DEFINITIONS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-9-310 of the 1976 Code, as last amended by Act 424 of 1990, is further amended to read:
"Section 12-9-310. (A) Every person, firm, corporation, association, joint-stock company, partnership, fiduciary, or the State of South Carolina, or any political subdivision of the State or any agency or any instrumentality or authority thereof, and any municipality, located within or doing business within the State, having an income within the State or having an employee earning income within this State, or in any manner whatever subject to the jurisdiction of this State, the United States or any political subdivision thereof, or any instrumentality or agency of the United States or any political subdivision thereof, or any other state or political subdivision or instrumentality or agency thereof:
(1) making payment of wages at the rate of eight hundred dollars or more per year subject to withholding shall deduct and withhold upon such wages an estimated income tax determined in accordance with tables and rules promulgated by the commission; but the commission may, in its discretion, exempt an employer from the provisions hereof who makes payment of wages to a legal resident of South Carolina, where such resident is employed in another state having income taxes withheld therein for the other state from the wages of the legal resident of this State;
(2) making payments to a nonresident of rentals or royalties at the rate of eight hundred dollars or more a year for the use of or for the privilege of using property in this State, or making payments of prizes or winnings to a resident or nonresident, shall withhold seven percent of the total amount of each payment. The rental of residential housing units, when four or fewer units are owned by a nonresident, is not subject to withholding under this section. For payments to a corporation the withholding must be at the rate of six percent. In regard to bingo prizes or winnings paid to residents or nonresidents of this State, seven percent of the total amount of each payment of five hundred dollars or more must be withheld. The provisions of this item do not apply to spectator sporting events for which an admission is charged;
(3) hiring or contracting or having a contract with any nonresident taxpayer conducting a business or performing personal services of a temporary nature carried on within this State, where the contract exceeds ten thousand dollars or could reasonably be expected to exceed ten thousand dollars, must withhold two percent of each and every payment made to these nonresidents. The provisions of item (3) do This item does not apply to a utility hiring or contracting or having a contract with any nonresident utility to perform services of a temporary nature relating to damage caused by natural forces. For purposes of this provision item: (a) `natural forces' means conflagration, flood, storm, earthquake, hurricane, or other public calamity, and (b) `utility' means any person, special purpose district, authority, or political subdivision producing, storing, conveying, transmitting, or distributing communication, electricity, gas, water, steam, or sewerage. For purposes of this item, the term nonresident does not include motion picture companies as defined in Section 12-36-2120 nor does it include entities performing personal services for motion picture companies when the motion picture companies and the personal service companies obtain a certificate of authority from the Secretary of State pursuant to Title 33.
(4) making any distribution of South Carolina taxable income to a nonresident beneficiary of any estate or trust shall withhold from the distribution seven percent of the beneficiary's South Carolina taxable income attributable to the distribution. The amounts withheld must be paid over each year to the commission with the annual tax return of the estate or trust. The nonresident beneficiary may claim the amount withheld as a credit against any South Carolina income tax liability and shall receive a refund of any excess. A trust that is exempt from taxation pursuant to Internal Revenue Code Section 501 is not subject to this item.
(B) The conditions set forth in items (2) and (3) of subsection (A) of this section may be waived by the commission, provided the payee shall insure the commission by bond, secured by an insurance company licensed by the South Carolina Insurance Commission, or deposit of securities subject to approval by the State Treasurer, or cash which shall not bear interest, that the payee will comply with all applicable provisions of Chapter 5 of this title and with the withholding requirements insofar as his obligations as a withholding agent are concerned."
SECTION 2. Section 12-36-2120 of the 1976 Code, as added by Section 74, Part II, Act 612 of 1990, is amended by adding an appropriately numbered item to read:
"( ) all supplies, technical equipment, machinery, and electricity sold to motion picture companies for use in filming or producing motion pictures. For the purposes of this item, `motion picture' means any audiovisual work with a series of related images either on film, tape, or other embodiment, where the images shown in succession impart an impression of motion together with accompanying sound, if any, which is produced, adapted, or altered for exploitation as entertainment, advertising, promotional, industrial, or educational media; and a `motion picture company' means a company generally engaged in the business of filming or producing motion pictures."
/SECTION 3. (A) Section 12-36-2120 of the 1976 Code, as added by Section 74, Part II, Act 612 of 1990, is amended by adding two appropriately numbered items to read:
"( ) electricity used exclusively in the production of poultry, livestock, swine, and milk according to the following schedule of the exempt amount:
(a) twenty percent from July 1, 1992, through June 30, 1993;
(b) forty percent from July 1, 1993, through June 30, 1994;
(c) sixty percent from July 1, 1994, through June 30, 1995;
(d) eighty percent from July 1, 1995, through June 30, 1996;
(e) one hundred percent after June 30, 1996;
( ) electricity used to irrigate crops according to the following schedule of the exempt amount:
(a) twenty percent from July 1, 1992, through June 30, 1993;
(b) forty percent from July 1, 1993, through June 30, 1994;
(c) sixty percent from July 1, 1994, through June 30, 1995;
(d) eighty percent from July 1, 1995, through June 30, 1996;
(e) one hundred percent after June 30, 1996;"
(B) Section 12-36-2120(32) of the 1976 Code, as added by Section 74, Part II, Act 612 of 1990, is amended to read:
"(32) natural and liquified petroleum gas used exclusively in the production of poultry, livestock, swine, and milk and used in the production, and packaging of apples and peaches and Agriculture and Aquaculture Products of hardwood caskets silviculture;, except that in the case of the exemption for livestock, swine, and milk, the exempt amounts are as follows:
(a) twenty percent from July 1, 1992, through June 30, 1993;
(b) forty percent from July 1, 1993, through June 30, 1994;
(c) sixty percent from July 1, 1994, through June 30, 1995;
(d) eighty percent from July 1, 1995, through June 30, 1996;
(e) one hundred percent after June 30, 1996;"/
Section ___. Retail sale of food products
SECTION 4. This act takes effect upon approval by the Governor.
SECTION ___. Section 12-36-2120 of the 1976 Code, as added by Section 74, Part II, Act 612 of 1990, is amended by adding an appropriately numbered item to read:
"( ) gross proceeds from the sale of building materials, supplies, fixtures, and equipment for the construction, repair, or improvement of or that become a part of a self-contained enclosure fr structure specifically designed, constructed, and used for the commercial housing of poultry or livestock."