Current Status Introducing Body:House Bill Number:3907 Ratification Number:575 Act Number:516 Primary Sponsor:Kirsh Type of Legislation:GB Subject:Income tax deductions, retirement Date Bill Passed both Bodies:19940602 Computer Document Number:JIC/5743HC.93 Governor's Action:S Date of Governor's Action:19940831 Introduced Date:19930413 Date of Last Amendment:19940602 Last History Body:------ Last History Date:19940831 Last History Type:Act No. 516 Scope of Legislation:Statewide All Sponsors:Kirsh Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
---- ------ ------------ ------------------------------ --- ------------
3907 ------ 19940831 Act No. 516
3907 ------ 19940831 Signed by Governor
3907 ------ 19940602 Ratified R 575
3907 Senate 19940602 Concurred in House amendment,
enrolled for ratification
3907 House 19940602 Senate amendments amended,
returned to Senate
3907 House 19940601 Debate adjourned upon Senate
amendments
3907 Senate 19940524 Amended, read third time,
returned to House with
amendments
3907 Senate 19940405 Amended, read second time,
ordered to third reading with
notice of general amendments
3907 Senate 19940331 Committee Report: Favorable 06
with amendment
3907 Senate 19930525 Introduced, read first time, 06
referred to Committee
3907 House 19930520 Read third time, sent to
Senate
3907 House 19930519 Amended, read second time
3907 House 19930505 Committee Report: Favorable 30
with amendment
3907 House 19930413 Introduced, read first time, 30
referred to Committee
View additional legislative information at the LPITS web site.
(A516, R575, H3907)
AN ACT TO AMEND SECTION 12-7-435, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO CLARIFY THE RETIREMENT INCOME EXCLUSION FOR SURVIVING SPOUSES; TO AMEND SECTION 12-7-1260, RELATING TO THE EMPLOYER'S CAPITAL EXPENDITURE CHILD CARE CREDIT, SO AS TO LIMIT THE CREDIT TO EMPLOYERS OF SOUTH CAROLINA RESIDENTS AND TO CAPITAL EXPENDITURES MADE IN THIS STATE; TO AMEND SECTION 12-7-1640, AS AMENDED, RELATING TO THE TIME FOR FILING INCOME TAX RETURNS, SO AS TO PROVIDE THAT ANY TAX DUE MUST BE PAID AT THE TIME THE RETURN IS FILED WITHOUT REGARD TO ANY EXTENSION; TO AMEND SECTION 12-7-2419, RELATING TO THE ELDERCARE TRUST FUND CHECKOFF, SO AS TO CLARIFY THAT THE CHECKOFF APPLIES ONLY TO INDIVIDUAL INCOME TAX RETURNS; TO AMEND THE 1976 CODE BY ADDING SECTIONS 12-7-1145, 12-27-335, AND 12-54-138 SO AS TO PROVIDE FOR APPORTIONING OF INCOME OF A BUSINESS INCORPORATED IN A FOREIGN COUNTRY, TO PROVIDE FURTHER FOR THE APPLICATION OF AND EXEMPTIONS FROM THE MOTOR FUELS TAX TO AN UNLICENSED SUPPLIER, AND TO PROVIDE FOR THE ASSESSMENT AND COLLECTION AS A TAX OF ANY DUPLICATE REFUND ISSUED; TO AMEND SECTION 12-7-430, AS AMENDED, RELATING TO ADJUSTMENTS TO INCOME FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO PROVIDE FOR THE TREATMENT OF FOREIGN DIVIDENDS; TO AMEND SECTION 12-9-40, RELATING TO TAX WITHHOLDING ON DISTRIBUTIONS, SO AS TO ALLOW EXEMPTIONS FROM WITHHOLDING FOR EXEMPT NONRESIDENT SHAREHOLDERS OR PARTNERS; TO AMEND SECTION 12-9-390, AS AMENDED, RELATING TO REQUIREMENTS APPLICABLE TO INCOME TAX WITHHOLDING, SO AS TO PROVIDE THAT THESE REQUIREMENTS AUTOMATICALLY CONFORM TO FEDERAL WITHHOLDING REQUIREMENTS WHEN THE STATE INCOME TAX LAW FEDERAL REFERENCE DATE CHANGES; TO AMEND SECTION 12-21-720, RELATING TO INDICIA FOR PAYMENT OF THE CIGARETTE TAX, SO AS TO AUTHORIZE THE DEPARTMENT TO ALLOW STORAGE OF UNSTAMPED CIGARETTES PRIOR TO DELIVERY OUT OF STATE AND PROVIDE PENALTIES; TO AMEND SECTION 12-27-1510, AS AMENDED, RELATING TO REFUNDS ON GASOLINE AND MOTOR FUELS TAXES, SO AS TO PROHIBIT REFUNDS ON FUEL USED BEFORE A REFUND APPLICATION IS FILED; TO AMEND SECTION 12-31-430, RELATING TO MOTOR CARRIER REPORTS, SO AS TO REVISE THE REPORTING DATES; TO AMEND SECTION 12-36-110, AS AMENDED, RELATING TO THE DEFINITION OF "RETAIL SALE", SO AS TO INCLUDE IN THE DEFINITION LOCAL TELECOMMUNICATIONS SERVICES OF COIN-OPERATED TELEPHONE PROVIDERS; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO CLARIFY THE EXEMPTION FOR GASOLINE AND OTHER FUELS AND THE EXEMPTION ALLOWED FOR SALES OF MOTOR VEHICLES TO CERTAIN MEMBERS OF THE ARMED FORCES; TO AMEND SECTIONS 12-54-40, AS AMENDED, AND 12-54-240, AS AMENDED, RELATING TO THE ENFORCEMENT AND COLLECTION OF STATE TAXES, SO AS TO REVISE PENALTIES AND FURTHER PROVIDE FOR THE USE OF TAX RETURN INFORMATION; TO AMEND SECTION 12-54-420, AS AMENDED, RELATING TO THE DEBT SETOFF ACT, SO AS TO FURTHER DEFINE "CLAIMANT AGENCY" AND TO ALLOW THE SETOFF OF COLLECTION COSTS; TO AMEND SECTION 12-54-810, RELATING TO THE TAXPAYERS' BILL OF RIGHTS, SO AS TO FURTHER PROVIDE FOR THE LIMIT ON INVESTIGATIVE ACTIVITIES OF THE DEPARTMENT; TO REPEAL SECTION 12-21-2040, RELATING TO SOFT DRINK LICENSE TAX CROWNS OR LIDS; TO AMEND THE 1976 CODE BY ADDING SECTIONS 12-4-755 AND 12-4-770 SO AS TO PROVIDE FOR THE APPEAL OF A PROPERTY TAX EXEMPTION DENIAL TO THE DEPARTMENT OF REVENUE AND TAXATION AND PROVIDE THE APPEAL PROCEDURE AND PROVIDE FOR THE APPEAL PROCEDURE FOR AN APPEAL OF A PROPOSED PROPERTY TAX ASSESSMENT TO THE DEPARTMENT FOR PROPERTY ORIGINALLY ASSESSED BY THE DEPARTMENT; TO AMEND THE 1976 CODE BY ADDING SECTION 12-39-70 SO AS TO PROVIDE THE METHOD OF APPRAISING CERTAIN PERSONAL PROPERTY OF BUSINESSES AND OTHER ENTITIES UNDER THE JURISDICTION OF THE COUNTY AUDITOR; TO AMEND THE 1976 CODE BY ADDING SECTION 12-37-120 SO AS TO REQUIRE THE ASSESSED VALUE OF PROPERTY TO BE ROUNDED TO THE NEAREST TEN DOLLARS; TO AMEND SECTION 12-4-320, RELATING TO THE POWERS OF THE DEPARTMENT, SO AS TO AUTHORIZE IT TO PRESCRIBE TEMPORARY RULES FOR FILING, PAYMENT, AND EXTENSIONS IN CASE OF DAMAGE BY OPERATION BY NATURAL FORCES; TO AMEND SECTION 12-4-330, RELATING TO WITNESSES BEFORE THE DEPARTMENT, SO AS TO PROVIDE THAT OUT-OF-STATE APPRAISERS APPEARING BEFORE THE DEPARTMENT DO NOT HAVE TO BE LICENSED OR CERTIFIED IN THIS STATE; TO AMEND SECTION 12-4-720, RELATING TO FILING PROPERTY TAX EXEMPTION APPLICATIONS, SO AS TO REVISE CERTAIN APPLICATIONS; TO AMEND SECTION 12-37-220 OF THE 1976 CODE, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO STANDARDIZE AT TWO VEHICLES THE MOTOR VEHICLE EXEMPTION FOR DISABLED VETERANS, MEDAL OF HONOR RECIPIENTS, PERSONS CONFINED TO WHEELCHAIRS, AND FORMER POW'S AND INCLUDE LEASED VEHICLES, AND TO EXEMPT FURNISHINGS AND FIXTURES IN TIME-SHARE UNITS; TO AMEND SECTION 12-37-800, AS AMENDED, RELATING TO THE PENALTY FOR FAILURE TO MAKE A PROPERTY TAX RETURN, SO AS TO PROVIDE A PENALTY EQUAL TO TWENTY-FIVE PERCENT OF THE TAX DUE FOR MAKING A FALSE RETURN; TO AMEND SECTION 12-37-930, RELATING TO VALUATION OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO PROVIDE THAT "GROSS CAPITALIZED COST" INCLUDES PROPERTY EXPENSED UNDER SECTION 179 OF THE INTERNAL REVENUE CODE OF 1986; TO AMEND SECTION 12-37-2725, AS AMENDED, RELATING TO REFUNDS OF PERSONAL PROPERTY TAXES PAID ON LICENSED MOTOR VEHICLES, SO AS TO ALLOW A REFUND WHEN A VEHICLE OWNER BECOMES A LEGAL RESIDENT OF ANOTHER STATE AND REGISTERS THE VEHICLE IN THE NEW STATE; TO AMEND SECTION 12-43-335, RELATING TO THE CLASSIFICATION OF MERCHANTS' PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO REVISE THE CLASSIFICATIONS AND ADD CLASSIFICATIONS FOR PROPERTY OF MANUFACTURERS, RAILROADS, PRIVATE CARLINES, AIRLINES, WATER, POWER, TELEPHONE, CABLE TELEVISION, SEWER, AND PIPELINE COMPANIES; AND TO AMEND ACT 168 OF 1991, RELATING TO TAXATION, SO AS TO DEFINE "CORPORATION" FOR THE PURPOSES OF THE ALLOWANCE OF THE FIVE-YEAR PROPERTY TAX ABATEMENT ALLOWED A CORPORATION WHICH ACQUIRED EIGHT OR MORE EXISTING TEXTILE MANUFACTURING FACILITIES, AND DELETE A REFERENCE TO COUNTY IN CALCULATING THE REQUIRED NUMBER OF EMPLOYEES TO OBTAIN THE ABATEMENT; TO AMEND SECTION 12-23-60, RELATING TO THE DUE DATE FOR THE ELECTRIC POWER TAX, SO AS TO CHANGE THE DUE DATE; TO REPEAL SECTION 4-9-155, RELATING TO AUDIT STANDARDS FOR COUNTY OFFICIALS; AND TO AMEND SECTION 12-7-1210, RELATING TO CREDITS FOR MARRIED INDIVIDUALS FILING JOINT TAX RETURNS, SO AS TO FURTHER PROVIDE FOR THE DETERMINATION OF THIS CREDIT.
Be it enacted by the General Assembly of the State of South Carolina:
Retirement income
SECTION 1. Section 12-7-435(k)(5) of the 1976 Code, as added by Act 171 of 1991, is amended to read:
"(5) The deduction allowed by this item extends to the taxpayer's surviving spouse and, to the extent the surviving spouse receives retirement income attributable to the deceased spouse, applies in the same manner that the deduction applied to the deceased spouse. If the surviving spouse also has another retirement income, an additional retirement exclusion is allowed."
Childcare credit
SECTION 2. Subsections (A), (B), and (C) of Section 12-7-1260 of the 1976 Code, as added by Act 189 of 1989, are amended to read:
"(A) A taxpayer who employs persons who are residents of this State in any capacity may claim as a credit against his state income tax, bank tax, or premium tax liability an amount equal to fifty percent of his capital expenditures in this State but no more than one hundred thousand dollars for costs incurred in establishing a child care program for his employees. A credit claimed under this section, but not used or available for use in a taxable year, may be carried forward for the next ten taxable years from the close of the tax year in which the expenditures are made until the amount of the credit is taken.
(B) For purposes of this section, `expenditures for costs incurred in establishing a child care program' includes, but is not limited to, expenditures, including mortgage or lease payments, for playground and classroom equipment, kitchen appliances, cooking equipment, and real property, including improvements in this State. The program and operation of the program must meet the licensing, registration, or certification standards prescribed by law.
(C) The taxpayer under subsection (A) also is allowed as a credit against his state income tax, bank tax, or premium tax liability an amount not exceeding fifty percent of the child care payments incurred by the taxpayer to operate a child care program for his employees in this State, or made directly to licensed or registered independent child care facilities in the name of and for the benefit of an employee in this State of the taxpayer, which employee's children are kept at the facility during the employee's working hours. The payment may not exceed the amount charged to other children of like age and abilities of individuals not employed by the taxpayer. The credits allowed by this subsection may not exceed a maximum of three thousand dollars for each employee.
Where an employee in this State chooses to utilize the provisions of this subsection which authorize direct payments to licensed child care facilities not operated by the employer, expenses attendant to the organization and administration of such a direct payment program incurred in the first year are also considered start-up expenses or expenditures for establishing a child care program for purposes of the fifty percent tax credit for start-up expenses authorized by subsection (A)."
Due date
SECTION 3. Section 12-7-1640 of the 1976 Code, as last amended by Act 361 of 1992, is further amended by adding at the end:
"Any tax shown to be due on a return required pursuant to this chapter must be paid at the time the return is due to be filed, without regard to any extension of time granted for filing the return."
Tax return
SECTION 4. Section 12-7-2419 of the 1976 Code, as added by Act 501 of 1992, is amended to read:
"Section 12-7-2419. (A) Each individual required to file a state income tax return who desires to contribute to the Eldercare Trust Fund of South Carolina as created by Section 43-21-160 may designate the contribution on the appropriate state individual income tax form. The contribution may not decrease the income tax liability of any taxpayer and may be made by reducing the income tax refund of any taxpayer by the amount designated or by accepting additional payment from the taxpayer by the amount designated, whichever is appropriate.
(B) All South Carolina individual income tax return forms must contain a designation for a contribution to the Eldercare Trust Fund of South Carolina. The instructions accompanying income tax forms must contain a description of the purpose for which the Eldercare Trust Fund was established and the use of monies from the income tax contribution. Contributions of other amounts may be made directly to the Eldercare Trust Fund.
(C) Taxpayers who are entitled to refunds shall have the refunds reduced by the amount designated by the taxpayer. The commission shall determine annually the total amount so designated, plus the amount received in excess payments and shall report the total amount to the South Carolina Commission on Aging. The commission shall transfer the total amount to the Eldercare Trust Fund at the earliest possible time.
(D) The incremental cost of administration of the contribution must be paid by the trust fund from amounts received pursuant to this section."
Apportionment
SECTION 5. Article 9, Chapter 7, Title 12 of the 1976 Code is amended by adding:
"Section 12-7-1145. A business incorporated in a foreign country is required to apportion only United States source income as determined for federal purposes on form 1120F if elected. No change in the election may be made without permission of the department. Income must be apportioned using rules provided for apportionment in this chapter."
Motor fuels tax
SECTION 6. Article 5, Chapter 29, Title 12 of the 1976 Code is amended by adding:
"Section 12-27-335. (A) The tax imposed by Section 12-29-310 applies to all fuel sold or delivered by a supplier:
(1) to a service station not licensed as a supplier except in accordance with the provisions contained in this section;
(2) to a bulk highway user;
(3) which is sold or delivered into the fuel supply tank of a motor vehicle;
(4) which is consumed by a supplier on the highways in the propulsion of a motor vehicle operated by the supplier.
(B) Sales of a special fuel at a service station are exempt from the tax levied under Section 12-29-310 when the purchases are for nonhighway use or for sale for nonhighway use and are stored separate and apart from facilities servicing motor vehicles, if the separate storage facilities and pumps are prominently and permanently labeled not for highway use. This label must be in plain view of the public to indicate that nontax paid products are contained in the area.
(C) No supplier may deliver special fuel to a service station that is not licensed as a supplier without collecting the tax thereon unless the fuel is delivered into a tank prominently labeled not for highway use as provided in subsection (B)."
Duplicate refund
SECTION 7. Article 5, Chapter 54, Title 12 of the 1976 Code is amended by adding:
"Section 12-54-138. If it is determined that a taxpayer has received a duplicate refund, the department may assess and collect the amount of one of the refund checks in the same manner as a tax. If the taxpayer returns one of the refund checks uncashed, no interest must be charged."
Dividends
SECTION 8. Section 12-7-430(d) of the 1976 Code is amended by adding:
"(9) A dividend from a foreign corporation is treated as a dividend from a domestic corporation for the purposes of the dividends received deduction under Section 243 of the Internal Revenue Code."
Credit
SECTION 9. Section 12-7-1210(B)(2)(a)(v) of the 1976 Code, as added by Act 170 of 1987, is amended to read:
"(v) received for services performed by an individual in the employ of his spouse within the meaning of Internal Revenue Code Section 3121(b)(3)(A) as amended through December 31, 1987; and".
Exempt
SECTION 10. Section 12-9-40(E) of the 1976 Code, as added by Act 501 of 1992, is amended by adding:
"(4) If a nonresident shareholder or partner provides the partnership or `S' corporation with a statement that the shareholder or partner is an organization exempt from income taxes under Internal Revenue Code Section 501(a), then the partnership or `S' corporation is not required to withhold with regard to that partner or shareholder. The statement must contain the shareholder's or partner's name, federal identification number, Internal Revenue Code section exemption number, and a copy of the Internal Revenue Service exemption letter."
Withholding
SECTION 11. Section 12-9-390 of the 1976 Code, as last amended by Act 109 of 1991, is further amended to read:
"Section 12-9-390. (A) (1) Resident withholding agents who are required to deposit and pay withholding to the Internal Revenue Service under the provisions of the Internal Revenue Code as defined in Section 12-7-20(11) and applicable federal regulations adopted by the department, shall remit all South Carolina taxes withheld pursuant to this chapter on or before the date their federal withholding taxes are due.
(2) If a resident withholding agent is required under the Internal Revenue Code to deposit withheld funds at a financial institution, then the withholding agent shall deposit the funds required to be withheld under this chapter at a financial institution selected by the State Treasurer.
(3) If a resident withholding agent is not required to deposit and pay federal withholding to the Internal Revenue Service under the provisions of the Internal Revenue Code and applicable regulations, the resident withholding agent shall remit South Carolina withholding to the department in accordance with subsection (B).
(B) A nonresident withholding agent and a resident withholding agent described in subsection (A)(3) shall make a return and remit taxes withheld under this chapter as follows:
(1) on or before the fifteenth day of the month following the month in which the aggregate amount withheld is five hundred dollars or more; or
(2) on or before the last day of the month following the quarter in which funds were withheld if the aggregate amount withheld in a calendar quarter is less than five hundred dollars.
(C) In order to maintain conformity with the federal withholding system, the department may by rule adopt new federal withholding regulations."
Cigarette tax stamps
SECTION 12. Section 12-21-720 of the 1976 Code is amended to read:
"Section 12-21-720. (A) The license taxes imposed on cigarettes by this article must be paid by affixing stamps in the manner and at the time set forth in this article.
(B) The department may promulgate rules and regulations allowing wholesale dealers in cigarettes to store cigarettes intended to be sold and shipped out of this State in separate compartments of their business without affixing revenue stamps.
Any wholesale dealer in cigarettes violating the rules and regulations permitting the storage of cigarettes without affixing the stamps is liable for the penalties contained in this chapter."
No refund
SECTION 13. Section 12-27-1510 of the 1976 Code, as last amended by Section 173 of Act 181 of 1993, is further amended to read:
"Section 12-27-1510. A person who purchases and uses gasoline and other motor fuels taxed by this chapter and Chapter 29 of this title on trucking equipment for nonhighway purposes, other than propelling a motor vehicle, may apply for a refund of or credit on the fuel tax paid. Fuel refunds or credits for nonhighway use must be in accordance with regulations set forth by the Department of Revenue and Taxation, and procedures used in filing for refunds or credits must be uniform with procedures required by the Internal Revenue Service. A person claiming a fuel tax refund or credit on truck equipment for nonhighway purposes shall make application to the department on proper forms within one year from the date of purchase. No refund must be granted on fuel not used or consumed by the purchaser before the filing of the application. The department may allow quarterly refunds for large users. If auxiliary equipment and the motor vehicle are powered off the same fuel tank, the Department of Revenue and Taxation shall determine what percentage of fuel is allowed for nonhighway purposes and subject to refund."
Report due date
SECTION 14. Section 12-31-430 of the 1976 Code is amended to read:
"Section 12-31-430. Every motor carrier subject to the tax imposed by this chapter shall on or before the last day of April, July, October, and January make to the department the reports of its operations during the quarter of the year ending the last day of the preceding month as the department requires. Nothing in this section may be construed to eliminate the requirement as to registration and identification markers otherwise provided by this chapter."
Coin-operated phones
SECTION 15. Section 12-36-110(1) of the 1976 Code, as last amended by Act 164 of 1993, is further amended by adding:
"(k) sales of all local telecommunications services by local exchange companies (LECs) to customer owned coin-operated telephone (COCOT) providers, as those terms are defined by the South Carolina Public Service Commission. The COCOT providers that purchase these services in order to provide payphone services to their customers are considered to be the users and consumers of the services, and are not subject to sales tax for their subsequent sale of local telecommunications services to their COCOT customers."
Exemption revised
SECTION 16. Section 12-36-2120(15) of the 1976 Code, as last amended by Section 198 of Act 181 of 1993, is further amended to read:
"(15) (a) gasoline and other fuels subject to tax under Chapter 27 of Title 12; however, gasoline used in aircraft is not exempt from the sales and use tax;
(b) fuels subject to tax under Chapter 29 of Title 12; however, if the fuel tax is subsequently refunded under Section 12-29-380, the sales or use tax is due unless otherwise exempt, and the person receiving the refund is liable for the sales or use tax;
(c) fuels used in farm machinery and farm tractors; and
(d) fuels used in commercial fishing vessels."
Exemption revised
SECTION 17. Section 12-36-2120(25) of the 1976 Code, as added by Act 612 of 1990, is amended to read:
"(25) motor vehicles (excluding trucks) or motorcycles, which are required to be licensed to be used on the highways, sold to a resident of another state, but who is located in South Carolina by reason of orders of the United States Armed Forces. This exemption is allowed only if within ten days of the sale the vendor is furnished a statement from a commissioned officer of the Armed Forces of a higher rank than the purchaser certifying that the buyer is a member of the Armed Forces on active duty and a resident of another state or if the buyer furnishes a leave and earnings statement from the appropriate department of the armed services which designates the state of residence of the buyer;"
Penalty
SECTION 18. Section 12-54-40(c)(1) of the 1976 Code is amended to read:
"(1) If any part of an underpayment is due to negligence or disregard of regulations, or if any part of a claim for refund is due to negligence or disregard of regulations, there must be added to the tax an amount equal to the sum of five percent of the underpayment or negligently claimed refund and an amount equal to fifty percent of the interest payable under Section 12-54-20."
Disclosure
SECTION 19. Section 12-54-240(B)(13) of the 1976 Code, as last amended by Section 237, Act 181 of 1993, is amended by adding:
"(13) disclosure of information pursuant to Section 12-54-1010(c) or 12-54-1020(c)."
Definitions
SECTION 20. (A) Section 12-54-420(1) of the 1976 Code, as last amended by Act 10 of 1993, is further amended to read:
"(1) `Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision, and the Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapter 111, 113, or 115 of Title 59. `Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members or other political subdivisions."
(B) Section 12-54-420(4) of the 1976 Code is amended to read:
"(4) `Delinquent debt' means any liquidated sum due and owing any claimant agency, including collection costs, court costs, fines, penalties, and interest which have accrued through contract, subrogation, tort, operation of law, or any other legal theory regardless of whether there is an outstanding judgment for that sum which is legally collectible and for which a collection effort has been or is being made."
Investigation
SECTION 21. Section 12-54-810(A) of the 1976 Code, as added by Act 50 of 1989, is amended to read:
"(A) An officer or employee of the commission acting in connection with any law administered by the department may not knowingly authorize, require, or conduct any investigation of, or surveillance over, any person for any purpose outside the department's responsibilities."
Soft drink crowns repealed SECTION 22. Section 12-21-2040 of the 1976 Code is repealed.
Appeals
SECTION 23. Article 7, Chapter 4, Title 12 of the 1976 Code is amended by adding:
"Section 12-4-755. (A) A taxpayer or his representative may appeal an exemption denial on property owned by the taxpayer. The taxpayer or his representative must give written notice of the appeal to the department within thirty days from the date of the mailing of the proposed denial. All grounds for appeal must be set forth in the notice. Upon receipt of the taxpayer's written notice of appeal, the department shall schedule a hearing for the appeal. No issue or ground may be considered by the department which is not set out in the appeal notice.
(B) After hearing the appeal, the department shall issue a written finding and send copies of the finding to the taxpayer or his representative and the county auditor. The finding to the county auditor is the order for entry upon the assessment rolls of the county as exempt or taxable property.
Section 12-4-770. A taxpayer who disagrees with a proposed assessment of his property made by the property tax division of the department may appeal to the department by giving written notice of the appeal within thirty days of the date of the mailing of the proposed assessment. The original of the notice of appeal must be delivered to the commission chairman and must contain all issues and grounds for the appeal. Any issues and grounds that are not published or contained in the notice of appeal may not be considered by the department in hearing the appeal. The notice of appeal must contain the valuation and assessment which the owner considers to be the fair market value and assessment of the property. The department may, upon request within the thirty-day period, extend the time for filing the written notice of appeal."
Rounding
SECTION 24. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-120. In the calculation of the assessed value of property subject to property tax, the result must be rounded to the nearest ten dollars and this rounded amount is deemed the assessed value of the property."
Assessing
SECTION 25. Chapter 39, Title 12 of the 1976 Code is amended by adding:
"Section 12-39-70. For the purpose of appraising and assessing personal property of businesses and other entities under the jurisdiction of the county auditor, the county auditor shall follow the classification of the most recent Standard Industrial Classification Manual, Bureau of The Budget, as follows:
(1) Division A - Major Groups, 01, 02, 07, 08, 09, unless exempt;
(2) Division H - Major Groups, 60, 61, 62, 63, 64, 65, 66, 67, unless exempt;
(3) Division 1 - Major Group, 70, 80, 81, 82, 83, 84, 86, 87, 88, 89, unless exempt."
Authority
SECTION 26. Section 12-4-320 of the 1976 Code, as added by Act 50 of 1991, is amended by adding:
"(6) if damage by natural forces occurs as defined in Section 12-9-310, prescribe temporary rules including, but not limited to, the filing of returns, payment of taxes, and extensions of due dates."
Appraisers
SECTION 27. Section 12-4-330 of the 1976 Code, as added by Act 50 of 1991, is amended by adding a new subsection to read:
"(E) Out-of-state appraisers serving as witnesses are not required to be licensed or certified in this State. For purposes of this section, out-of-state appraisers are defined as appraisers with a business address outside of this State."
Applications
SECTION 28. Section 12-4-720(A) of the 1976 Code, as added by Act 50 of 1991, is amended to read:
"(A) Applications for property exemptions must be filed as follows:
(1) Except as otherwise provided in items (2) and (3) of this subsection, any tax-exempt property owner or property owner whose property may qualify for property exemption shall file an application for exemption with the department between January first and April fifteenth of the first year for which the exemption is claimed.
(2) Owners of property exempt under Section 12-37-220A(7) and (8), B(32), (33), and (34) shall file an annual application for exemption before the last day of the fourth month after the close of the accounting period regularly employed by the taxpayer for income tax purposes in accordance with Chapter 7 of this title.
(3) Owners of property exempt under Section 12-37-220B(26) and (27) and churches which own motor vehicles shall file an application for exemption within sixty days before or within thirty days after the date on which the motor vehicle was registered or the registration renewal date. Thereafter, except as provided in item (2), the owner is not required to file an additional application, unless there is a change in the status of the property as reported on the initial application or unless requesting an exemption for property which was not included on the initial or subsequent application."
Exemptions
SECTION 29. (A) Items (3), (26), (27), and (29) of Section 12-37-220(B) of the 1976 Code, as last amended by Section 200, Act 181 of 1993, are further amended to read:
"(3) Two personal motor vehicles owned or leased by any disabled veteran designated by the veteran for which special license tags have been issued by the Department of Revenue and Taxation under the provisions of Sections 56-3-1110 to 56-3-1130 or, in lieu of the license, if the veteran has a certificate signed by the county service officer or the Veterans Administration of the total and permanent disability which must be filed with the Department of Revenue and Taxation.
(26) Two personal motor vehicles owned or leased by recipients of the Medal of Honor for which special license tags have been issued by the Department of Revenue and Taxation under the provisions of Article 16 of Chapter 3 of Title 56 .
(27) Two personal motor vehicles, owned or leased either solely or jointly by persons required to use wheelchairs, for which special license tags have been issued by the Department of Revenue and Taxation under the provisions of Section 56-3-1910.
(29) Two personal motor vehicles or trucks, not exceeding three-quarter ton, owned or leased by and licensed and registered in the name of any member or former member of the armed forces who was a prisoner of war (POW) in World War I, World War II, the Korean Conflict, or the Vietnam Conflict and who is a legal resident of this State, for which motor vehicle or truck a special tag has been issued by the Department of Revenue and Taxation in accordance with the provisions of Sections 56-3-1150 and 56-3-1160. This exemption also extends to the surviving spouse of a qualified former POW for the lifetime or until the remarriage of the surviving spouse."
(B) Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item to read:
"( ) Property exempt under subsection A(5) of this section when located in a time-share unit."
Penalties
SECTION 30. Section 12-37-800 of the 1976 Code, as last amended by Act 344 of 1988, is further amended to read:
"Section 12-37-800. (A) If a person fails to list the real or personal property required by law to be listed in any one year, the value of the property may be charged against the person for taxation with a ten percent penalty added, and the taxes and penalty collected as in other cases.
(B) In addition to any other penalty, a person who intentionally makes a false return, wilfully attempts to understate tax liability, or recklessly or intentionally disregards applicable rules or regulations must be assessed a penalty equal to twenty-five percent of the taxes due.
(C) Upon good cause shown, the department may waive or reduce the penalty imposed pursuant to this section."
Depreciation
SECTION 31. The penultimate paragraph of Section 12-37-930 of the 1976 Code is amended to read:
"In no event may the original cost be reduced more than eighty percent. In the year of acquisition, depreciation is allowed as if the property were owned for the full year. The term `original cost' means gross capitalized cost, including property on which the taxpayer made the election allowed pursuant to Section 179 of the Internal Revenue Code of 1986, as shown by the taxpayer's records for income tax purposes."
Cancellation
SECTION 32. Section 12-37-2725 of the 1976 Code, as last amended by Section 215 of Act 181 of 1993 and Part II, Section WW, Act 164 of 1993 is further amended to read:
"Section 12-37-2725. When the title to a licensed vehicle is transferred, or the owner of the vehicle becomes a legal resident of another state and registers the vehicle in the new state of residence, the license plate and registration certificate issued the transferor may be returned for cancellation. The license plate and registration certificate must be delivered to the auditor of the county of the vehicle's registration and tax payment. A request for cancellation must be made in writing to the auditor upon forms approved by the Department of Revenue and Taxation. The auditor, upon receipt of the license plate, registration certificate, and the request for cancellation, shall order and the treasurer shall issue a credit or refund of property taxes paid by the transferor on the vehicle. The amount of the refund of credit is that proportion of the tax paid that is equal to that proportion of the complete months remaining in that tax year. The auditor, within five days thereafter, shall deliver the license plate, registration certificate, and the written request for cancellation to the Department of Revenue and Taxation. Upon receipt, the department shall cancel the license plate and registration certificate and may not reissue the same."
Assessing
SECTION 33. Section 12-43-335 of the 1976 Code, as last amended by Section 224, Act 181 of 1993, is further amended to read:
"Section 12-43-335. (A) For the purpose of assessing property of merchants and related businesses, as provided by Section 12-37-970, the department shall follow the classifications of the most recent Standard Industrial Classification Manual, Bureau of the Budget, as follows:
(1) Division C;
(2) Division E, Major Group 41, except number 414
Major Group 42, except number 4213
Major Group 44, except number 444
Major Group 45, except number 451
Major Group 47
Major Group 48, except numbers 481, 482, 484
Major Group 49, except numbers 491, 493, 494, 4952;
(3) Division F;
(4) Division G;
(5) Division I, Major Groups 72, 73, 75, 76, 78, and 79;
(6) Division K.
(B) For the purpose of assessing property of manufacturers as provided in Section 12-4-540(A), the department shall follow the classifications set out in Division B and Division D of the most recent Standard Industrial Classification Manual, Bureau of the Budget; however, establishments which publish newspapers, books, and periodicals which do not have facilities for printing or which do not actually print their publications are not classified as manufacturers, notwithstanding the provisions of Division D, Major Group 27, relating to printing, publishing, and allied industries.
(C) For the purpose of assessing property of railroads, private carlines, airlines, water, power, telephone, cable television, sewer and pipeline companies, as provided in Section 12-4-540(A), the department shall follow the Division E classification of the most recent Standard Industrial Classification Manual, Bureau of the Budget, as follows:
(1) Major Group 40;
(2) Major Group 41, except numbers 411, 412, 413, 415, and 417;
(3) Major Group 42, except numbers 4212, 4214, 4215, 422, and 423;
(4) Major Group 44, except numbers 441, 442, 443, 448, and 449;
(5) Major Group 45, except numbers 452 and 458;
(6) Major Group 46;
(7) Major Group 48, except numbers 483 and 489;
(8) Major Group 49, except numbers 492, 4953, 4959, 496, and 497."
Abatement
SECTION 34. Section 17(A) of Act 168 of 1991 is amended to read:
"(A) A corporation which acquires eight or more existing textile manufacturing facilities in South Carolina which employed at the time of acquisition a total of three thousand, five hundred or more employees located in this State may receive the five-year abatement pursuant to Section 12-37-220A(7) of the 1976 Code from the time of acquisition. For purposes of this item acquisition means asset transactions which are arms-length and includes new capital. For purposes of this section `corporation' means a single corporation or an `affiliated group' of corporations as defined in Section 1504 of the Internal Revenue Code of 1986, as amended, which may acquire such facilities pursuant to a single transaction. This section also applies to wholly-owned subsidiaries of the corporation which may have acquired any of the eight textile manufacturing facilities from the corporation in a tax-free transaction pursuant to Section 351 of the Internal Revenue Code of 1986, as amended."
Due date
SECTION 35. Section 12-23-60 of the 1976 Code is amended to read:
"Section 12-23-60. Every person subject to the provisions of this article shall on or before the twentieth day of each month make a true and correct return to the department in such form as it may prescribe, showing the exact amount of electric power manufactured, generated or sold, expressed in kilowatt hours, during the previous month, and remit the tax therewith."
Audit standards repealed
SECTION 36. Section 4-9-155 of the 1976 Code is repealed.
Time effective
SECTION 37. This act takes effect upon approval by the Governor.
Approved the 31st day of August, 1994.