Current Status Bill Number:354 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970212 Primary Sponsor:Leatherman All Sponsors:Leatherman Drafted Document Number:dka\4057mm.97 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Income tax refunds, administrative expenses provided in refund setoff claim, service claims; Taxation
Body Date Action Description Com Leg Involved
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Senate 19970212 Introduced, read first time, 06 SF
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND SECTION 12-56-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DETERMINATION BY THE DEPARTMENT OF REVENUE OF WHETHER A REFUND IS DUE THE DEBTOR IN A REFUND SETOFF CLAIM, SO AS TO PROVIDE FOR PAYMENT OF THE DEPARTMENT'S ADMINISTRATIVE EXPENSES; AND TO AMEND SECTION 12-56-70, RELATING TO PRIORITY OF CLAIMS TO A REFUND, SO AS TO REDUCE TO LAST THE PRIORITY OF INTERNAL REVENUE SERVICE CLAIMS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-56-60(B) of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"(B) Upon receiving the certification of the claimant agency of the amount of the delinquent debt, the department shall determine if the debtor is due a refund. If the debtor is due a refund of more than twenty-five dollars, the department shall set off the delinquent debt against the amount of the refund in excess of twenty-five dollars and transfer the amount set off to the claimant agency. The department may retain an amount not to exceed twenty-five dollars of each refund set off to defray its administrative expenses. No apportionment is required in cases of refunds resulting from filing joint returns. The department shall consider any certified delinquent debt and debtor list provided by a claimant agency as correct. Reviews of refund setoffs are with the claimant agency. If, after appropriate review, the claimant agency determines that the setoff amount is excessive, it shall refund the appropriate amount to the taxpayer. If, after appropriate review, the claimant agency determines that it is entitled to no part of the amount set off, it shall refund the entire amount plus the administrative fee retained by the department. That portion of the refund reflecting the administrative fee must be paid from claimant agency funds. If a refund has been retained in error, the claimant agency shall pay interest to the taxpayer calculated as provided in Section 12-54-20 from the date provided by law, after which interest is paid on refunds until the appeal is final except that. However, no interest accrues when the claimant agency is the Office of Child Support Services of the South Carolina Department of Social Services."
SECTION 2. Section 12-56-70 of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"Section 12-56-70. Claims to refunds allowed to be set off under this article must be made by a claimant agency filing a written notice with the commission department of its intention to effect collection through setoff under this article. The following is the order of priority for multiple claims filed:
(1) claims of the Department of Revenue;
(2) claims of the Division of Child Support Enforcement of the State Department of Social Services;
(3) other claims of the State Department of Social Services and other state agencies;
(4) claims of the Internal Revenue Service and claims filed by institutions of higher learning;
(5) claims of other agencies not given a specific priority;
(6) claims of the Internal Revenue Service.
Priority within a class in which multiple claims are filed is the order in time in which the claimant agencies filed the written notice with the commission department of the intention to effect collection through setoff under this article."
SECTION 3. This act takes effect upon approval by the Governor.