Current Status Introducing Body:House Bill Number:4691 Ratification Number:599 Act Number:464 Primary Sponsor:Committee (30) Type of Legislation:GB Subject:Tax refunds, payment of Date Bill Passed both Bodies:19940602 Computer Document Number:JIC/5461HC.94 Governor's Action:L Line items vetoed Date of Governor's Action:19940629 Introduced Date:19940208 Date of Last Amendment:19940602 Action on Governor's Veto:S Scope of Legislation:Statewide Sponsor Committee:Ways and Means Sponsor Committee Number:30 Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
---- ------ ------------ ------------------------------ --- ------------
4691 House 19950117 Vetoes 1 through 4 - Sustained
4691 House 19950112 Debate adjourned upon veto
until Tuesday, January 17, 1995
4691 ------ 19940629 Act No. 464
4691 ------ 19940629 Line items vetoed by Governor:
Sections 2, 7, 8, and 9 of the
1992-93 Surplus General Fund
Revenues
4691 ------ 19940602 Ratified R 599
4691 Senate 19940602 Ordered enrolled for
ratification
4691 House 19940602 Free Conference Committee 99
Report received, adopted
4691 House 19940602 Free Conference Powers 99 Boan
granted, appointed Reps. to Cobb-Hunter
Committee of Free Conference Hallman
4691 Senate 19940602 Free Conference Committee 99
Report received, adopted
4691 Senate 19940602 Free Conference Powers 99 Drummond
granted, appointed Senators J. Verne
to Committee of Free Smith
Conference Leventis
4691 Senate 19940527 Conference powers granted, 98 Drummond
appointed Senators to J. Verne
Committee of Conference Smith
Leventis
4691 House 19940526 Conference powers granted, 98 Boan
appointed Reps. to Committee Cobb-Hunter
of Conference Hallman
4691 House 19940526 Insists upon amendment
4691 Senate 19940526 Non-concurrence in House
amendment
4691 House 19940511 Senate amendments amended,
returned to Senate
4691 House 19940510 Debate adjourned on Senate
amendments until Wednesday,
19940511
4691 Senate 19940426 Amended, read third time,
returned to House with
amendments
4691 Senate 19940421 Debate adjourned
4691 Senate 19940412 Read second time, carrying
over all amendments to third
reading, retaining its status
on the Special Order Calendar
4691 Senate 19940331 Made Special Order
4691 Senate 19940308 Committee Report: Favorable 06
with amendment
4691 Senate 19940222 Introduced, read first time, 06
referred to Committee
4691 House 19940218 Read third time, sent to
Senate
4691 House 19940217 Amended, read second time,
unanimous consent for third
reading on Friday, February
18, 1994
4691 House 19940216 Debate interrupted
4691 House 19940215 Debate interrupted by
adjournment
4691 House 19940208 Introduced, read first time
View additional legislative information at the LPITS web site.
(A464, R599, H4691)
AN ACT TO APPROPRIATE FISCAL YEAR 1992-93 SURPLUS GENERAL FUND REVENUES AND ALLOW THESE APPROPRIATIONS TO BE CARRIED FORWARD AND EXPENDED FOR THE SAME PURPOSE IN FISCAL YEAR 1994-95; TO AMEND SECTION 12-47-440, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAX ABATEMENTS OR REFUNDS FROM THE DEPARTMENT OF REVENUE AND TAXATION, SO AS TO PROVIDE THAT THESE REFUND PROVISIONS APPLY TO ANY TAX OR FEE ADMINISTERED BY THE DEPARTMENT, TO RATIFY THE TERMS OF THE SETTLEMENT OF THE BASS AND PERRI CASES, TO PROVIDE FOR STATE INDIVIDUAL INCOME TAX REFUNDS FOR CERTAIN FEDERAL RETIREES TO BE PAID IN TWO EQUAL INSTALLMENTS IN 1995 AND 1996 AND PROVIDE THE TERMS AND CONDITIONS UNDER WHICH THESE REFUNDS MUST BE CLAIMED AND PAID, TO PROVIDE FOR THE PAYMENT OF REFUNDS PAID TO INTESTATE DECEDENTS PURSUANT TO THE SETTLEMENT AGREEMENT AND THIS ACT, TO INCREASE TEMPORARILY THE BORROWING AUTHORITY FROM THE INCOME RESERVE FUND UNDER THE INSTALLMENT PURCHASE PROGRAM FOR INITIATING THE STATE HOUSE RENOVATION PROJECT, TO EXTEND THE RETIREMENT INCENTIVE ELECTION PERIOD IN THE CASE OF CERTAIN APPOINTED STATEWIDE OFFICIALS AND IN CERTAIN HARDSHIP CASES; TO AMEND ACT 164 OF 1993, THE GENERAL APPROPRIATIONS ACT FOR FISCAL YEAR 1993-94, BY DELETING PARAGRAPH 3.54 OF PART I, SO AS TO ELIMINATE THE TRANSFER OF LEGISLATIVE BRANCH CARRIED FORWARD APPROPRIATIONS TO THE GENERAL FUND OF THE STATE; AND TO REPEAL SECTION 12-47-447 OF THE 1976 CODE, RELATING TO PAYMENT OF TAX REFUNDS.
Be it enacted by the General Assembly of the State of South Carolina:
Appropriations
SECTION 1. From fiscal year 1992-93 general fund surplus revenues, there is appropriated from the general fund of the State:
(1) $30,000,000 for the payment of valid state individual income tax refunds due taxpayers pursuant to the agreement settling Bass, et al. v. South Carolina and Perri, et al. v. South Carolina, as such refund claims are determined by the South Carolina Department of Revenue and Taxation under the terms of that agreement.
(2) $2,716,158 to the Division of General Services, State Budget and Control Board, for the State House renovations project. (3) $2,000,000 to the Department of Corrections for personnel and training costs associated with opening new prisons.
Repeal
SECTION 2. Section 12-47-447 of the 1976 Code is repealed.
Tax refunds
SECTION 3. (A) Section 12-47-440 of the 1976 Code is amended to read:
"Section 12-47-440. Notwithstanding any other provisions of law, if it appears to a person that any tax or fee administered by the department has been erroneously, improperly, or illegally assessed, collected, or otherwise paid over to the department, the person, by whom or on whose behalf the tax or fee was paid, may apply to the department to abate or refund in whole or in part the tax or fee. If the department, after having given the person a reasonable opportunity to be heard, declines to make the abatement or refund, the person may, within thirty days of the date of receipt of notice of the department's action declining the abatement or refund, bring an action against the department for recovery of the tax or fee. The provisions of this section apply whether or not the tax or fee in question was paid under protest, but are only available where the application provided for here is made in writing to the department within three years from the date the tax or fee was due to have been paid, without regard to extensions of time for payment, or if a later date would result, within one year of payment where an additional tax or fee is assessed and paid. The action must be brought in the court of common pleas for Richland County except that a resident of this State may elect to bring the action in the court of common pleas for the county of his residence. A taxpayer or licensee who brings an action provided for in Sections 12-47-210 and 12-47-220 is considered as having elected his remedy and is denied the benefits of this section."
(B) This section takes effect upon approval of this act by the Governor and applies to tax periods beginning in 1990 and thereafter and to tax periods beginning before 1990 only if the claim for refund is one that is under review by the Department of Revenue and Taxation on the effective date of this act and is not a claim for refund arising under or based upon Davis v. Michigan.
Federal retiree refunds
SECTION 4. (A) In recognition of the substantial legal issues and uncertain financial liability that confronted the State of South Carolina in Bass v. State of South Carolina and Perri v. State of South Carolina, the General Assembly finds the proposed settlement reached in those cases to be fair and reasonable. By this act, the General Assembly ratifies and approves the terms agreed to in the settlement and pledges the financial resources of the State to implement the terms and conditions of the settlement as approved by the circuit court.
(B) (1) A timely filed claim for refund for any tax year rendering the taxpayer eligible for a refund under the settlement agreement is deemed a timely filed claim for refund for all taxable years to which the settlement agreement applies, except that any additional refunds due a taxpayer as a result of this item for those years for which a claim was not filed must be paid as provided in item (4). No further action is required for any such taxpayer to receive the refund allowed by this item for those years. All protests filed pursuant to the settlement agreement on the issue of which taxable years were included in the taxpayer's claim for refund are extinguished on the effective date of this section.
(2) A taxpayer who failed to timely file a claim for refund for any year as provided in the settlement agreement is nevertheless eligible for a refund if the taxpayer files a claim for refund with the Department of Revenue and Taxation within the extension period. The refund due a taxpayer under this item must be paid as provided in item (4). One claim for refund is sufficient for all applicable years.
(3) The Department of Revenue and Taxation shall place a notice in newspapers of general circulation in this State notifying taxpayers of the provisions of this subsection with special emphasis on the provisions of item (2) and the duration of the extension period. The department shall also provide written notification to each county veterans' affairs offices.
(4) Refunds payable under this subsection must be calculated in the manner provided by law but without interest and must be paid in two equal installments in October, 1995, and October, 1996. After any constitutional requirements are met, the amounts required for these refunds must be the first priority item in appropriations from the Capital Reserve Fund for fiscal years 1994-95 and 1995-96.
(5) The ability to file claim for refunds under this subsection or the extension of claims filed for one year to other years as provided in this subsection is a privilege granted taxpayers as a matter of fairness by the General Assembly and as such normal rules and laws of procedure do not apply in these cases. Therefore, the determination of the validity of any claim for refund filed or deemed to be filed pursuant to this subsection is solely within the jurisdiction of the Department of Revenue and Taxation and its determination is final and not subject to additional administrative or judicial review. A taxpayer who files a claim for refund or who is deemed to have filed a claim for refund under this subsection is ineligible to pursue that claim for refund under any other provision of law.
(6) As used in this subsection:
(a) "Extension period" is the period beginning April 16, 1992, and ending on the fortieth day after the effective date of this section. (b) "Claim for refund" for purposes of item (2) is a written communication filed by a taxpayer with the Department of Revenue and Taxation received or bearing a postmark during the extension period which contains information sufficient for the department to identify the taxpayer and determine the validity of the claim. Any claim for refund is deemed to be for taxable years 1985, 1986, 1987, and 1988 to the extent the taxpayer received federal pension income in those years.
(c) "Taxpayer" means an individual who filed South Carolina individual income tax returns in any of the years 1985, 1986, 1987, or 1988 whose South Carolina taxable income included federal pension income. In the case of a deceased taxpayer, the surviving spouse, heirs, or personal representative of the deceased taxpayer entitled to receive the refund allowed by this subsection may file the appropriate claim for refund on behalf of the deceased taxpayer. For purposes of paying refunds in the case of a testate deceased taxpayer, such refunds must be paid to the deceased taxpayer's personal representative. Refunds due an intestate deceased taxpayer under the provisions of this subsection must be paid as provided in subsection (D).
(d) "Refund" means a payment made pursuant to item (4).
(e) "Settlement agreement" means the agreement settling the claims arising under the Bass and Perri cases approved by the court on March 2, 1994.
(C) (1) Notwithstanding the provisions of Section 12-7-2250 of the 1976 Code and Title 62 of the 1976 Code, amounts payable to intestate federal retirees due under the settlement agreement in Bass v. South Carolina and Perri v. South Carolina must be paid pursuant to the terms of the settlement so that the amount owed any intestate deceased federal retiree under the settlement is paid to the deceased retiree's surviving spouse, or if there is no surviving spouse, to the then living children of the retiree in equal shares and if there are no children, to the general fund of the State. This refund by the State, directly to the surviving spouse or then living children operates as a complete acquittal and discharge to the State of liability from any suit, claim, or demand of any nature by any heir, distributee, creditor of the decedent, or any other person. An heir or beneficiary of the intestate deceased retiree who does not receive any portion of the refund hereunder has no claim against any other heir or beneficiary who does receive a portion or all of the refund hereunder.
(2) To conform with the settlement agreement and notwithstanding the provisions of Section 12-7-2260 of the 1976 Code, if checks issued to any federal retirees under the agreement are returned to the Department of Revenue and Taxation as undeliverable, the department shall supply to class counsel for the federal retirees a list of those federal retirees for whom checks are undelivered, with class counsel having one year from the date of the check to deliver the check to the retiree, surviving spouse, or living children, and upon failure to deliver, the funds represented by the checks must be paid to the general fund of the State with the state's liability extinguished from any future suit, claim, or demand by the retiree, the retiree's surviving spouse, children, or estate. The actions of any party taken pursuant to the authority contained in this subsection are not considered in violation of Sections 12-7-1680 or 12-54-240(A) of the 1976 Code.
(D) Refunds paid pursuant to subsection (B) on behalf of an intestate deceased taxpayer must be paid as provided in subsection (C) and are subject to the terms and conditions provided in subsection (C) except that the refund amounts are as calculated under subsection (B)(4) and the Department of Revenue and Taxation shall perform the functions assigned to class counsel in subsection (C).
Carry forward
SECTION 5. The appropriations authorized in this act for fiscal year 1993-94 are authorized to be carried forward and expended for the same purposes in fiscal year 1994-95.
Borrowing limit
SECTION 6. The borrowing authority and limitation of thirty-five million dollars set forth in Section 1-1-1020 of the 1976 Code, as amended, is increased to thirty-five million five hundred thousand dollars beginning on the effective date of this section and ending December 31, 1995. The five hundred thousand dollar increase in borrowing authority is to be used exclusively for initiating the State House Renovation Project which shall include, but not be limited to, payment of architectural and engineering fees and the costs associated with the transition of State House occupants to, location of, and renovation of an alternate location. All funds borrowed under this authorization must be repaid, with interest, in a lump-sum payment as soon as monies are made available through a regular or supplemental appropriation authorization.
Retirement incentive
SECTION 7. In the case of a statewide public official appointed by the Governor with the advice and consent of the Senate whose term expired in June, 1992, and who continues to serve on a holdover basis on the effective date of this act, the time to make the irrevocable retirement incentive election authorized pursuant to Section 17P.6, Part I, Act 164 of 1993 is extended for a period ending June 30, 1994, if the agency with which the official is associated agrees to the extension. All other requirements of Section 17P.6, Part I, Act 164 of 1993 apply with respect to the eligibility of such an official for the retirement incentive.
Retirement incentive
*SECTION 8. In the case of an employee retiring by July 1, 1994, as a result of the need to deal with a severe family hardship arising after November 1, 1993, the time to make the irrevocable retirement incentive election authorized pursuant to Section 17P.6, Part I, Act 164 of 1993 is extended for a period ending June 30, 1994, but this extension applies only if the employee's agency head approves the extension and determines that such a hardship has arisen.
Deletion
*SECTION 9. Act 164 of 1993, the general appropriations act for fiscal year 1993-94, is amended by deleting paragraph 3.54 of Part I.
Time effective
SECTION 10. Except where otherwise stated, this act takes effect upon approval by the Governor.
Printer's Date -- July 7, 1994 -- S.
*Provisions printed in italic boldface were vetoed by the Governor June 29, 1994.
Provisions not vetoed by the Governor took effect June 29, 1994.
At the time this act was printed, the General Assembly had not taken action on the vetoes.