Current Status Bill Number:4853 Ratification Number:541 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19980319 Primary Sponsor:Boan All Sponsors:Boan Drafted Document Number:DKA\4757MM.98 Date Bill Passed both Bodies:19980616 Date of Last Amendment:19980616 Governor's Action:S Date of Governor's Action:19980831 Subject:Motor fuel tax, gasoline tax; exemptions from; sale or use of dyed fuel; Taxation, kerosene
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19980831 Signed by Governor
------ 19980617 Ratified R541
House 19980616 Ordered enrolled for ratification
House 19980616 Free Conference Committee Report 99 HFCC
adopted
Senate 19980616 Free Conference Committee Report 89 SFCC
adopted
House 19980616 Free Conference Powers granted, 99 HFCC H. Brown
appointed Reps. to Committee of Boan
Free Conference Young-
Brickell
Senate 19980616 Free Conference Powers granted, 89 SFCC Drummond
appointed Senators to Committee Land
of Free Conference McConnell
House 19980616 Conference powers granted, 98 HCC H. Brown
appointed Reps. to Committee of Boan
Conference Young-
Brickell
Senate 19980616 Conference powers granted, 88 SCC Drummon
appointed Senators to Committee Land
of Conference McConnell
Senate 19980616 Insists upon amendment
House 19980604 Non-concurrence in Senate amendment
Senate 19980604 Read third time, returned to House
with amendment
Senate 19980604 Amended
Senate 19980603 Amended
Senate 19980526 Read second time, notice of
general amendments
Senate 19980520 Recalled from Committee 06 SF
Senate 19980505 Introduced, read first time, 06 SF
referred to Committee
House 19980430 Read third time, sent to Senate
House 19980429 Amended, read second time
House 19980423 Committee report: Favorable with 30 HWM
amendment
House 19980319 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
(A442, R541, H4853)
AN ACT TO AMEND SECTION 12-28-710, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM TAX ON MOTOR FUEL, SO AS TO EXEMPT KEROSENE IN CERTAIN INSTANCES AND MOTOR FUEL USED TO TRANSPORT STUDENTS BY STATE-FUNDED INSTITUTIONS OF HIGHER LEARNING; TO AMEND SECTION 12-28-1730, RELATING TO PENALTIES IN CONNECTION WITH TAX ON MOTOR FUEL, SO AS TO FURTHER PROVIDE FOR THE CIVIL PENALTIES WHICH MAY BE IMPOSED REGARDING THE SALE OR USE OF DYED FUEL; TO REPEAL SECTIONS 12-31-220 AND 12-31-250 RELATING TO TEMPORARY AND BIENNIAL REGISTRATION CARDS AND IDENTIFICATION MARKERS FOR MOTOR CARRIERS; TO AMEND ARTICLE 1, CHAPTER 49, TITLE 12, RELATING TO LIENS AND SUITS FOR THE ENFORCED COLLECTION OF TAXES, BY ADDING SECTION 12-49-85 SO AS TO PROVIDE FOR THE REMOVAL OF A TAX, ASSESSMENT, OR PENALTY WHICH PROVES TO BE UNCOLLECTIBLE; TO AMEND SECTION 12-37-251, AS AMENDED, RELATING TO THE HOMESTEAD EXEMPTION FROM PROPERTY TAXES LEVIED FOR SCHOOL OPERATIONS, SO AS TO DELETE LANGUAGE REFERRING TO THE CALCULATION OF THE ROLLBACK MILLAGE IN A YEAR OF REASSESSMENT; TO AMEND SECTION 12-43-220, AS AMENDED, RELATING TO ASSESSMENT RATIOS FOR PROPERTY TAXES, SO AS TO REQUIRE THE OWNER-OCCUPANT OF A LEGAL RESIDENCE THAT IS BEING PURCHASED BY CONTRACT OF SALE TO RECORD THE CONTRACT IN ORDER TO QUALIFY FOR THE FOUR PERCENT ASSESSMENT RATIO; TO AMEND SECTION 12-54-85, RELATING TO TIME LIMITATIONS FOR ASSESSMENT OF TAXES, SO AS TO PROVIDE THAT THE ASSESSMENT OF THE TAX OCCURS ON THE LATER OF THE LAST DAY THE TAX MAY BE PAID WITHOUT PENALTY OR THE DATE OF THE TAX NOTICE; TO AMEND SECTION 12-60-2520, RELATING TO TAXPAYER OBJECTION TO A PROPERTY TAX ASSESSMENT, SO AS TO PROVIDE FOR AGREEMENT WITH THE OBJECTION WITHOUT A CONFERENCE; TO AMEND SECTION 12-60-2910, AS AMENDED, RELATING TO TAXPAYER OBJECTION TO A PERSONAL PROPERTY TAX ASSESSMENT OR A DENIAL OF A HOMESTEAD EXEMPTION, SO AS TO CONFORM THE DEFINITION OF WHEN THE ASSESSMENT OF THE TAX OCCURS; TO REPEAL SECTION 12-43-225, RELATING TO SPECIAL ASSESSMENT RATIOS, AND SECTION 12-49-80, RELATING TO LAWSUITS BY THE STATE TO COLLECT BACK TAXES; TO AMEND SECTION 61-2-100, RELATING TO PERSONS ALLOWED TO BE LICENSEES OR PERMITTEES OF THE DEPARTMENT OF REVENUE FOR PURPOSES OF SELLING ALCOHOLIC LIQUORS, BEER, AND WINE, SO AS TO PROVIDE FOR THE ISSUANCE OF A LICENSE OR PERMIT TO AN INDIVIDUAL OR TO A BUSINESS OR OTHER ENTITY AND TO ESTABLISH REQUIREMENTS FOR BEING ISSUED THE LICENSE OR PERMIT; TO AMEND SECTION 61-6-505, RELATING TO THE ISSUANCE OF A TEMPORARY LICENSE TO THE PURCHASER OF A RETAIL BUSINESS WHICH SELLS ALCOHOLIC BEVERAGES, SO AS TO INCLUDE ONE WHO ACQUIRES THE BUSINESS BY TRANSFER OTHER THAN PURCHASE; TO AMEND SECTION 61-6-2005, RELATING TO THE ISSUANCE OF A TEMPORARY LICENSE TO THE PURCHASER OF A RETAIL BUSINESS WHICH SELLS ALCOHOLIC LIQUORS IN MINIBOTTLES, SO AS TO INCLUDE ONE WHO ACQUIRES THE BUSINESS BY TRANSFER OTHER THAN PURCHASE; TO AMEND SECTION 61-4-210, RELATING TO THE ISSUANCE OF A TEMPORARY LICENSE TO THE PURCHASER OF A RETAIL BUSINESS WHICH SELLS BEER OR WINE, SO AS TO INCLUDE ONE WHO ACQUIRES THE BUSINESS BY TRANSFER OTHER THAN PURCHASE; TO AMEND SECTION 61-6-2890, RELATING TO STORAGE OF ALCOHOLIC LIQUORS IN A WAREHOUSE, SO AS TO DELETE THE REQUIREMENT OF A BOND; TO REPEAL SECTIONS 61-6-300, 61-6-310, 61-6-320, 61-6-330, 61-6-340, AND 61-6-350, ALL RELATING TO LICENSE BONDS FOR MANUFACTURERS, RETAILERS, AND WHOLESALERS OF ALCOHOLIC BEVERAGES; TO AMEND SECTION 33-44-801, RELATING TO THE DISSOLUTION OF A LIMITED LIABILITY COMPANY, SO AS TO DELETE THE DISSOCIATION OF A MEMBER AS A DISSOLVING EVENT; TO AMEND SECTION 33-44-103, RELATING TO THE OPERATING AGREEMENT OF A LIMITED LIABILITY COMPANY, AND SECTION 33-44-404, RELATING TO MANAGEMENT OF A LIMITED LIABILITY COMPANY, BOTH SO AS TO REFLECT THE DELETION OF THE DISSOCIATION OF A MEMBER AS A DISSOLVING EVENT; TO AMEND SECTION 33-44-503, RELATING TO RIGHTS OF A TRANSFEREE OF AN INTEREST IN A LIMITED LIABILITY COMPANY, SO AS TO RENUMBER A CROSS REFERENCE TO SECTION 33-44-801; TO AMEND SECTION 33-44-603, RELATING TO THE EFFECT OF A MEMBER'S DISSOCIATION FROM A LIMITED LIABILITY COMPANY, AND SECTION 33-44-701, RELATING TO COMPANY PURCHASE OF AN INTEREST IN A LIMITED LIABILITY COMPANY, BOTH SO AS TO REFLECT THE DELETION OF THE DISSOCIATION OF A MEMBER AS A DISSOLVING EVENT; TO AMEND SECTION 12-37-2810, RELATING TO MOTOR CARRIERS FOR PURPOSES OF ASSESSMENT OF PROPERTY TAXES, SO AS TO INCLUDE "BUS" IN THE DEFINITIONS OF A MOTOR VEHICLE OF MOTOR CARRIER; TO AMEND SECTION 12-37-2820, AS AMENDED, RELATING TO THE VALUATION OF MOTOR VEHICLES OF MOTOR CARRIERS, SO AS TO DEFINE "GROSS CAPITALIZED COST"; TO AMEND SECTION 12-37-2830, AS AMENDED, RELATING TO THE VALUATION OF MOTOR VEHICLES OF MOTOR CARRIERS, SO AS TO DELETE REFERENCE TO THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-37-2840, AS AMENDED, RELATING TO THE FAILURE OF A MOTOR CARRIER TO FILE AN ANNUAL PROPERTY TAX RETURN, SO AS TO PROVIDE FOR A PROPOSED ASSESSMENT BY THE DEPARTMENT OF REVENUE WHICH ASSUMES ALL MILEAGE WAS WITHIN THIS STATE; TO AMEND SECTION 12-37-2850, AS AMENDED, RELATING TO THE ESTABLISHMENT OF A STATEWIDE AVERAGE MILLAGE FOR ASSESSMENT OF TAXES ON MOTOR VEHICLES OF MOTOR CARRIERS, SO AS TO REQUIRE THE PUBLISHING OF THE AVERAGE MILLAGE BY JUNE 1; TO AMEND SECTION 4-10-40, AS AMENDED, RELATING TO THE CREDIT OF REVENUES FROM THE PROPERTY TAX CREDIT FUND TO PROPERTY TAX LIABILITY, SO AS TO INCLUDE LIABILITY FOR FEES IN LIEU OF TAXES ARISING OUT OF LOCATION IN A MULTI-COUNTY INDUSTRIAL OR BUSINESS PARK; TO AMEND SECTION 12-14-40, RELATING TO THE DESIGNATION OF AN ECONOMIC IMPACT ZONE, SO AS TO DELETE THE FIFTEEN-YEAR "SUNSET" ON SUCH ZONES; TO AMEND SECTION 12-14-60, AS AMENDED, RELATING TO THE STATE INCOME TAX INVESTMENT CREDIT ALLOWED FOR CERTAIN INVESTMENTS IN ECONOMIC IMPACT ZONES, SO AS TO DELETE THE FIVE PERCENT CREDIT AND REPLACE IT WITH A GRADUATED PERCENTAGE FROM ONE TO FIVE PERCENT BASED ON THE INVESTMENT'S USEFUL LIFE AND TO LIMIT THE TOTAL CREDIT ALLOWED A UTILITY FOR INVESTMENTS MADE AFTER JUNE 30, 1998, TO FIVE MILLION DOLLARS, LIMIT ALL CREDITS FOR INVESTMENTS MADE BEFORE JULY 1, 1998, TO NO MORE THAN FIFTY PERCENT OF THE TAX LIABILITY, AND TO MAKE OTHER TECHNICAL CHANGES; AND TO PROVIDE VARIOUS EFFECTIVE DATES.
Be it enacted by the General Assembly of the State of South Carolina:
Exemptions from tax on motor fuel
SECTION 1. Section 12-28-710(9) and (12) of the 1976 Code, as last amended by Act 461 of 1996, is further amended to read:
"(9) kerosene and diesel fuel used as heating oil or in trains or used in equipment not licensed as a motor vehicle other than as expressly exempted under another provision;
(12) taxable motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation program and transportation of students by state-funded institutions of higher learning;"
Penalties
SECTION 2. Section 12-28-1730(F) of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"(F) The department shall impose a civil penalty in an amount equivalent to that imposed by Section 6715 of the Internal Revenue Code on the operator of a vehicle who knowingly violates the prohibition on the sale or use of dyed fuel upon public highways of this State."
Repeal
SECTION 3. Sections 12-31-220 and 12-31-250 of the 1976 Code are repealed.
Uncollectible property tax, assessment, or penalty; rollback millage; assessment ratio; "assessment of the tax"; written objection to assessment; objection to denial of homestead exemption; repeal
SECTION 4. A. Article 1, Chapter 49, Title 12 of the 1976 Code is amended by adding:
"Section 12-49-85. (A) If the person officially charged with the collection of ad valorem taxes on real or personal property for a county determines that the tax, assessment, or penalty is uncollectible, he shall record that determination and the reason for it on a list he maintains. At least annually he shall provide the list to the county auditor, who may remove a particular determination from the duplicate list, but the auditor shall record the removal and the reason for it as prescribed by the Comptroller General.
(B) The reasons for removal of a tax, assessment, or penalty from the duplicate list may include, but are not limited to:
(1) insufficient property of the person charged with the uncollectible tax, assessment, or penalty to collect it;
(2) collection of the tax, assessment, or penalty has been enjoined by a competent court.
(C) Subject to the provisions of Section 12-54-85(E), the auditor and the person officially charged with the collection of ad valorem taxes shall review the list annually. If it is later determined that the tax, assessment, or penalty was improperly removed from the duplicate list or is collectible, it must be returned to the duplicate list for collection, with all penalties and interest accruing."
B. Section 12-37-251(E) of the 1976 Code, as last amended by Act 401 of 1996, is further amended to read:
"(E) Rollback millage is calculated by dividing the prior year property tax revenues by the adjusted total assessed value applicable in the year the values derived from a countywide equalization and reassessment program are implemented. This amount of assessed value must be adjusted by deducting assessments added for property or improvements not previously taxed, for new construction, and for renovation of existing structures."
C. Section 12-43-220(c) of the 1976 Code, as last amended by Act 431 of 1996, is further amended by adding:
"(5) To qualify for the four percent assessment ratio, the owner-occupant of a legal residence that is being purchased under a contract for sale or a bond for title must record the contract for sale or the bond for title in the office of the register of mesne conveyances or the clerk of court in those counties where the office of the register of mesne conveyances has been abolished.
For purposes of this subsection, a contract for sale or a bond for title is the sale of real property by a seller, who finances the sale and retains title to the property solely as security for the debt."
D. Section 12-54-85(E) of the 1976 Code is amended to read:
"(E) A tax may not be collected by levy, warrant for distraint, or proceedings in court, unless the:
(1) levy, warrant for distraint, or proceedings in court were begun within ten years after the assessment of the tax;
(2) taxpayer has agreed to extend this period; or
(3) running of this period is suspended in accordance with this section.
For property tax purposes, the 'assessment of the tax' occurs on the later of the last day the tax may be paid without penalty or the date of the tax notice."
E. Section 12-60-2520(B) of the 1976 Code, as added by Act 60 of 1995, is amended to read:
"(B) If, upon examination of the property taxpayer's written objection, the county assessor agrees with the taxpayer, the county assessor must correct the error. If, upon the examination, the county assessor does not agree with the taxpayer, the assessor shall schedule a conference with the property taxpayer within thirty days of the date of the request for a meeting or as soon after that as practical. If the matter is not resolved at the conference, the assessor shall advise the property taxpayer of the right to protest and provide the taxpayer a form on which to file the protest. The property taxpayer has thirty days after the date of the conference to file a written protest with the assessor. The protest must contain:
(1) the name, address, and telephone number of the property taxpayer;
(2) a description of the property in issue;
(3) a statement of facts supporting the taxpayer's position;
(4) a statement outlining the reasons for the appeal, including any law or other authority, upon which the taxpayer relies; and
(5) the value and classification which the property taxpayer considers the fair market value, special use value, if applicable, and the proper classification.
The taxpayer may use the form prepared by the department, but use of the form is not mandatory."
F. Section 12-60-2910(A) of the 1976 Code, as last amended by Act 431 of 1996, is further amended to read:
"(A) A property taxpayer may object to a personal property tax assessment or a denial of a homestead exemption made by the county auditor by requesting, in writing, to meet with the auditor at any time on or before the later of:
(1) thirty days after the tax notice is mailed; or
(2) last day the tax levied upon the assessment may be timely paid."
G. Sections 12-43-225 and 12-49-80 of the 1976 Code are repealed.
H. Notwithstanding the general effective date of this act, this section is effective for property tax years beginning after 1998.
Issuance of licenses and permits; temporary licenses for transferees of licensed businesses; warehouse storage; repeal
SECTION 5. A. Section 61-2-100 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-2-100. (A) The department may issue licenses and permits authorized under this title to qualifying persons. Licenses and permits may be issued only to the person who is the owner of the business seeking the permit or license.
(B) The department shall initiate action to revoke any permit or license that is issued to any person who is not the owner of the licensed business or when the licensed individual or an individual principal of the licensed business is under twenty-one years of age.
(C) If application is made for a license or permit under this title by a person other than an individual, all principals are deemed to be the applicant under Section 61-2-160.
(D) The department may not issue a license or permit under this title to any person unless the person and all principals are of good moral character.
(E) The department may not issue a license or permit under this title to an individual under twenty-one years of age or a business with an individual principal under twenty-one years of age.
(F) Businesses licensed or permitted by the department under this title must designate with the department an agent and mailing address for service of notices. Any required notice may be given by handing it to the agent in person or leaving the notice at his office with a clerk or other person in charge of the office, or if there is no one in charge, leaving it in a conspicuous place in the office; or, if the office is closed or the person to be served has no office, leaving a copy at his dwelling place with a person of suitable age and discretion residing in the dwelling place; or by serving it on an employee at the licensed place of business; or by mailing it by first class mail to the agent at his last known address, postage prepaid. No person may act as agent for more than one business entity unless the person has an ownership interest in the business entities.
(G) Nothing in this section may be construed to alter the effect of Sections 61-6-140 and 61-6-150.
(H) As used in this title and unless otherwise required by the context:
(1) 'Person' includes an individual, a trust, estate, partnership, limited liability company, receiver, association, company, corporation, or any other group.
(2) 'Principal' of a business or entity means a person who is described in any one or more of the following terms:
(a) an officer of the business or entity which owns the business;
(b) a partner other than a limited partner who cannot exercise any management control;
(c) a manager of the limited liability company which is managed by managers;
(d) a member of the limited liability company which is not managed by managers;
(e) a fiduciary, including personal representatives, trustees, guardians, committees, and receivers, who manage, hold, or control title to or who is otherwise in direct or indirect control of the business;
(f) a person who owns twenty-five percent or more of the combined voting power of the business or entity;
(g) a person who owns twenty-five percent or more of the value of the business entity; or
(h) an employee who has day-to-day operational management responsibilities for the business or entity.
(i) a license or permit may be issued to a publicly held corporation, which is deemed the applicant under Section 61-2-160 and the corporation shall designate an officer or other employee of good moral character, over the age of twenty-one and a resident of this State in whose name the permit or license must be held on behalf of the corporation and the corporation may substitute an officer or employee if the individual is of good moral character, over the age of twenty-one, and a resident of this State, and upon notice in writing of the substitution to the department."
B. Section 61-6-505 of the 1976 Code, as added by Act 458 of 1996, is amended to read:
"Section 61-6-505. (A) A person who purchases or acquires by lease, inheritance, divorce decree, eviction, or otherwise a retail business which sells alcoholic beverages from a holder of a retail liquor license at the business, upon initiating the application process for a permanent retail liquor license, may be issued a temporary retail liquor license by the department at the time of the purchase or acquisition if the location for which the temporary license is sought is not considered by the department to be a public nuisance and:
(1) the applicant currently holds a valid retail liquor license; or
(2) the applicant has had a criminal history background check conducted by the State Law Enforcement Division within the past thirty days.
(B) A temporary license issued pursuant to subsection (A) is valid until a permanent license is approved or disapproved by the department, but in no case is it valid for more than one hundred twenty days from the date of issuance.
(C) Notwithstanding subsection (B), the department may revoke a temporary license if the applicant fails to pursue the permanent license in a timely manner, as set forth by the department by regulation.
(D) The department shall collect a fee of twenty-five dollars for each temporary license sought. The funds generated by this fee must be deposited in the general fund of the State."
C. Section 61-6-2005 of the 1976 Code, as added by Act 458 of 1996, is amended to read:
"Section 61-6-2005. (A) A person who purchases or acquires by lease, inheritance, divorce decree, eviction, or otherwise a retail business which sells alcoholic liquors in sealed containers of two ounces or less from a holder of a license to sell alcoholic liquors in sealed containers of two ounces or less at the business, upon initiating the application process for a permanent license, may be issued a temporary license by the department at the time of the purchase or acquisition if the location for which the temporary license is sought is not considered by the department to be a public nuisance and:
(1) the applicant currently holds a valid license to sell alcoholic liquors in sealed containers of two ounces or less; or
(2) the applicant has had a criminal history background check conducted by the State Law Enforcement Division within the past thirty days.
(B) A temporary license issued pursuant to subsection (A) is valid until a permanent license is approved or disapproved by the department, but in no case is it valid for more than one hundred twenty days from the date of issuance.
(C) Notwithstanding subsection (B), the department may revoke a temporary license if the applicant fails to pursue the permanent license in a timely manner, as set forth by the department by regulation.
(D) The department shall collect a fee of twenty-five dollars for each temporary license sought. The funds generated by this fee must be deposited in the general fund of the State."
D. Section 61-4-210 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-4-210. (A) A person who purchases or acquires by lease, inheritance, divorce decree, eviction, or otherwise a retail business which sells beer or wine from a holder of a retail permit to sell beer or wine at the business, upon initiating the application process for a biennial retail beer or beer and wine permit, may be issued a temporary retail beer or beer and wine permit by the department at the time of the purchase or acquisition if the location for which the temporary permit is sought is not considered by the department to be a public nuisance and:
(1) the applicant currently holds a valid beer or beer and wine permit; or
(2) the applicant has had a criminal history background check conducted by the division within the past thirty days.
(B) A temporary beer or beer and wine permit issued pursuant to subsection (A) is valid until a biennial retail beer or beer and wine permit is approved or disapproved by the department, but in no case is it valid for more than one hundred twenty days from the date of issuance.
(C) Notwithstanding subsection (B), the department may revoke a temporary retail beer or beer and wine permit if the applicant fails to pursue the biennial retail beer or beer and wine permit in a timely manner, as set forth by regulation of the department.
(D) The department shall collect a fee of twenty-five dollars for each temporary beer or beer and wine permit. The funds generated by this fee must be deposited in the general fund of the State."
E. Section 61-6-2890 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2890. (A) A registered producer may not store alcoholic liquors in a warehouse of the registered producer unless licensed by the department. Application for license to operate a warehouse must be filed on forms prescribed by the department.
(B) When an application for a warehouse license is submitted, a fee of four hundred dollars must be paid to the department. Where application is made for a warehouse license on or after March 1, the fee is one hundred fifty dollars. A warehouse license is valid from the date of issue until the second August 31 after the issuance of the license."
F. Sections 61-6-300, 61-6-310, 61-6-320, 61-6-330, 61-6-340, and 61-6-350 of the 1976 Code are repealed.
G. Subsection A. of this section takes effect upon approval by the Governor and applies for applications pending on that date and for applications filed on or after that date. The remaining provisions of this section take effect July 1, 1998.
Dissolution of a limited liability company
SECTION 6. Section 33-44-801 of the 1976 Code, as added by Act 343 of 1996, is amended to read:
"Section 33-44-801. A limited liability company is dissolved, and its business must be wound up, upon the occurrence of any of the following events:
(1) an event specified in the operating agreement;
(2) consent of the number or percentage of members specified in the operating agreement;
(3) an event that makes it unlawful for all or substantially all of the business of the company to be continued, but a cure of illegality within ninety days after notice to the company of the event is effective retroactively to the date of the event for purposes of this section;
(4) on application by a member or a dissociated member, upon entry of a judicial decree that:
(a) the economic purpose of the company is likely to be unreasonably frustrated;
(b) another member has engaged in conduct relating to the company's business that makes it not reasonably practicable to carry on the company's business with that member;
(c) it is not otherwise reasonably practicable to carry on the company's business in conformity with the articles of organization and the operating agreement;
(d) the company failed to purchase the petitioner's distributional interest as required by Section 33-44-701; or
(e) the managers or members in control of the company have acted, are acting, or will act in a manner that is illegal, oppressive, fraudulent, or unfairly prejudicial to the petitioner;
(5) on application by a transferee of a member's interest, a judicial determination that it is equitable to wind up the company's business:
(a) after the expiration of the specified term, if the company was for a specified term at the time the applicant became a transferee by way of member dissociation, transfer, or entry of a charging order that gave rise to the transfer; or
(b) at any time, if the company existed at will at the time the applicant became a transferee by way of member dissociation, transfer, or entry of a charging order that gave rise to the transfer."
Winding up of the business of a limited liability company
SECTION 7. Section 33-44-103(b)(6) of the 1976 Code, as added by Act 343 of 1996, is amended to read:
"(6) vary the requirement to wind up the limited liability company's business in a case specified in Section 33-44-801(3) or (4); or"
Management of limited liability company
SECTION 8. Section 33-44-404(a)(2) and (b)(2) of the 1976 Code, as added by Act 343 of 1996, is amended to read:
"(2) except as otherwise provided in subsection (c), any matter relating to the business of the company may be decided by a majority of the members."
"(2) except as otherwise provided in subsection (c), any matter relating to the business of the company may be exclusively decided by the manager or, if there is more than one manager, by a majority of the managers; and"
Rights of transferee of an interest in a limited liability company
SECTION 9. Section 33-44-503(e) of the 1976 Code, as added by Act 343 of 1996, is amended to read:
"(e) A transferee who does not become a member shall:
(1) receive, in accordance with the transfer, distributions to which the transferor would otherwise be entitled;
(2) receive, upon dissolution, and winding up of the limited liability company's business:
(i) in accordance with the transfer, the net amount otherwise distributable to the transferor;
(ii) a statement of account only from the date of the latest statement of account agreed to by all the members;
(3) seek under Section 33-44-801(5) a judicial determination that it is equitable to dissolve and wind up the company's business."
Effect of dissociation of a member of a limited liability company
SECTION 10. Section 33-44-603 of the 1976 Code, as added by Act 343 of 1996, is amended to read:
"Section 33-44-603. Upon a member's dissociation:
(1) in an at-will company, the company must cause the dissociated member's distributional interest to be purchased under Article 7;
(2) in a term company, if the company:
(a) dissolves and winds up its business on or before the expiration of its specified term, Article 8 applies to determine the dissociated member's rights to distributions;
(b) does not dissolve and wind up its business on or before the expiration of its specified term, the company must cause the dissociated member's distributional interest to be purchased under Article 7 on the date of the expiration of the term specified at the time of the member's dissociation;
(3) the member's right to participate in the management and conduct of the company's business terminates, except as otherwise provided in Section 33-44-803, and the member ceases to be a member and is treated the same as a transferee of a member;
(4) the member's duty of loyalty under Section 33-44-409(b)(3) terminates; and
(5) the member's duty of loyalty under Section 33-44-409(b)(1) and (2) and duty of care under Section 33-44-409(c) continue only with regard to matters arising and events occurring before the member's dissociation, unless the member participates in winding up the company's business pursuant to Section 33-44-803."
Company purchase of a distributional interest in a limited liability company
SECTION 11. Section 33-44-701(c) of the 1976 Code, as added by Act 343 of 1996, is amended to read:
"(c) If the price and other terms of a purchase of a distributional interest are fixed or are to be determined by the operating agreement, the price and terms fixed or determined govern the purchase unless the purchaser defaults. If a default occurs, the dissociated member is entitled to commence a proceeding to have the company dissolved pursuant to Section 33-44-801(4)(d)."
Definitions; valuation of motor vehicles of motor carriers; filing of return; proposed assessment; average statewide millage
SECTION 12. A. Section 12-37-2810 of the 1976 Code, as added by Act 461 of 1996, is amended to read:
"Section 12-37-2810. As used in this article, unless the context requires otherwise:
(A) 'Motor carrier' means a person who owns, controls, operates, manages, or leases a motor vehicle or bus for the transportation of property or persons in intrastate or interstate commerce except for scheduled intercity bus service. A motor carrier is defined further as being a South Carolina-based International Registration Plan registrant or owning or leasing real property within this State used directly in the transportation of freight or persons.
(B) 'Motor vehicle' means a motor propelled vehicle used for the transportation of property on a public highway with a gross vehicle weight of greater than twenty-six thousand pounds.
(C) 'Highway' means all public roads, highways, streets, and ways in this State, whether within a municipality or outside of a municipality.
(D) 'Person' means any individual, corporation, firm, partnership, company or association, and includes a guardian, trustee, executor, administrator, receiver, conservator, or a person acting in a fiduciary capacity.
(E) 'Semitrailers' means every vehicle with or without motive power, other than a pole trailer, designed for carrying property and for being drawn by a motor vehicle and constructed so that a part of its weight and of its load rests upon or is carried by another vehicle.
(F) 'Trailers' means every vehicle with or without motive power, other than a pole trailer, designed for carrying property and for being drawn by a motor vehicle and constructed so that no part of its weight rests upon the towing vehicle.
(G) 'Bus' means every motor vehicle designed for carrying more than sixteen passengers and used for the transportation of persons, for compensation, other than a taxicab or intercity bus."
B. Section 12-37-2820 of the 1976 Code, as last amended by Act 125 of 1997, is further amended to read:
"Section 12-37-2820. (A) The Department of Revenue annually shall assess, equalize, and apportion the valuation of all motor vehicles of motor carriers. The valuation must be based on fair market value for the motor vehicles and an assessment ratio of nine and one-half percent as provided by Section 12-43-220(g). Fair market value is determined by depreciating the gross capitalized cost of each motor vehicle by an annual percentage depreciation allowance down to ten percent of the cost as follows:
(1) Year One - .90
(2) Year Two - .80
(3) Year Three - .65
(4) Year Four - .50
(5) Year Five - .35
(6) Year Six - .25
(7) Year Seven - .20
(8) Year Eight - .15
(9) Year Nine - .10
(B) 'Gross capitalized cost', as used in this section, means the original cost upon acquisition for income tax purposes, not to include taxes, interest, or cab customizing."
C. Section 12-37-2830 of the 1976 Code, as last amended by Act 125 of 1997, is further amended to read:
"Section 12-37-2830. The value of a motor carrier's vehicles subject to property taxes in this State must be determined based on the ratio of total mileage operated within this State during the preceding calendar year to the total mileage of its entire fleet operated within and without this State during the same preceding calendar year."
D. Section 12-37-2840 of the 1976 Code, as last amended by Act 125 of 1997, is further amended to read:
"Section 12-37-2840. Motor carriers must file an annual property tax return with the Department of Revenue no later than June 30 for the preceding calendar year and remit one-half or the entire tax due as stated on the return. If the motor carrier fails to file its return, the department shall issue a proposed assessment which assumes all mileage was within this State. If one-half of the tax is remitted on or before June 30, the remaining one-half of the tax due must be paid to the Department of Revenue on or before December 31. If the motor carrier fails to remit tax due pursuant to this section, the department shall issue a notice to the motor carrier demanding payment for the entire amount shown to be due. If the motor carrier fails to remit the tax due within thirty days of receipt of the notice, the Department of Revenue shall notify the Department of Public Safety, which may not renew the registrations of the motor vehicles required by this article to be on the property tax return. A twenty-five percent penalty must be added to the property tax due and the tax and penalty must be paid in full by cashier's check, money order, or cash. The penalty required by this section is instead of all other penalties and interest required by law.
Upon payment in full, the Department of Revenue shall notify the Department of Public Safety which then shall allow for registrations of the motor vehicles."
E. Section 12-37-2850 of the 1976 Code, as last amended by Act 125 of 1997, is further amended to read:
"Section 12-37-2850. The Department of Revenue shall assess annually the taxes due based on the value determined in Section 12-28-2820 and an average millage for all purposes statewide for the preceding calendar year and shall publish the average millage for the preceding year by June 1 of each year. The taxes assessed must be paid to the Department of Revenue no later than December 31 of each year and may be made in two equal installments. Distribution of the taxes paid must be made by the State Treasurer's Office based on the distribution formula contained in Section 12-37-2870."
F. This section takes effect upon approval by the Governor for calendar years beginning after December 31, 1997.
Distribution of revenue allocated to Property Tax Credit Fund
SECTION 13. Section 4-10-40(B) of the 1976 Code, as last amended by Act 109 of 1991, is further amended to read:
"(B)(1) All of the revenue received by a county and municipality from the Property Tax Credit Fund must be used to provide a credit against the property tax liability of taxpayers in the county and municipality in an amount determined by multiplying the appraised value of the taxpayer's taxable property by a fraction in which the numerator is the total estimated revenue received by the county or municipality from the Property Tax Credit Fund during the applicable fiscal year of the political subdivision, and the denominator is the total of the appraised value of taxable property in the county or municipality as of January 1 of the applicable taxable year.
(2) For purposes of this chapter:
(a) property tax liability includes liability to pay fees in lieu of property taxes;
(b) taxable property includes exempt property for which the owner must pay fees in lieu of property taxes; and
(c) reference to liability for fees in lieu of tax applies to fees arising pursuant to Section 4-1-170 in connection with location in a multi-county industrial or business park as provided in Section 13 of Article VIII of the Constitution of the State of South Carolina."
Economic impact zone; designation; investment tax credit
SECTION 14. A. Section 12-14-40 of the 1976 Code, as added by Act 25 of 1995, is amended to read:
"Section 12-14-40. (A) The designation of an area as an economic impact zone must be made by the State Budget and Control Board.
(B) A designation may be revoked by the General Assembly only after a hearing on the record in which officials of the county or municipality involved may participate."
B. Section 12-14-60 of the 1976 Code, as amended by Act 151 of 1997, is further amended to read:
"Section 12-14-60. (A)(1) There is allowed an economic impact zone investment tax credit against the tax imposed pursuant to Chapter 6 of this title for any taxable year in which the taxpayer places in service economic impact zone qualified manufacturing and productive equipment property.
(2) The amount of the credit allowed by this section is equal to the aggregate of:
three-year property one percent of total aggregate bases for all three-year property that qualifies;
five-year property two percent of total aggregate bases for all five-year property that qualifies;
seven-year property three percent of total aggregate bases for all seven-year property that qualifies;
ten-year property four percent of total aggregate bases for all ten-year property that qualifies;
fifteen-year property five percent of total aggregate bases for or greater all fifteen-year or greater property that qualifies.
For purposes of this section, whether property is three-year property, five-year property, seven-year property, ten-year property, or fifteen-year property is determined based on the applicable recovery period for such property under Section 168(e) of the Internal Revenue Code.
(B) For purposes of this section:
(1) 'economic impact zone qualified manufacturing and productive equipment property' means any property:
(a) which is used as an integral part of manufacturing or production, or used as an integral part of extraction of or furnishing transportation, communications, electrical energy, gas, water, or sewage disposal services in the economic impact zone;
(b) which is tangible property to which Section 168 of the Internal Revenue Code applies;
(c) which is Section 1245 property (as defined in Section 1245(a)(3)of the Internal Revenue Code); and
(d)(i) the construction, reconstruction, or erection of which is completed by the taxpayer in the economic impact zone; or
(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer inside the economic impact zone.
(2) In the case of any computer software which is used to control or monitor a manufacturing or production process inside the economic impact zone and with respect to which depreciation (or amortization in lieu of depreciation) is allowable, the software must be treated as qualified manufacturing and productive equipment property.
(C) This section does not apply to any property to which the other tax credits would apply unless the taxpayer elects to waive the application of the other credits to the property.
(D) Unused credit allowed pursuant to this section may be carried forward for ten years from the close of the tax year in which the credit was earned.
(E) If during any taxable year and before the end of applicable recovery period for such property as determined under Section 168(e) of the Internal Revenue Code, the taxpayer disposes of or removes from the economic impact zone, economic impact zone qualified manufacturing and productive equipment property, then the tax due under Chapter 6 by the taxpayer for the current taxable year must be increased by an amount of any credit claimed in prior years with respect to such property determined by assuming the credit is earned ratably over the useful life of the property and recapturing pro rata the unearned portion of the credit.
(F) For South Carolina income tax purposes, the basis of the economic impact zone qualified manufacturing and productive equipment property must be reduced by the amount of any credit claimed with respect to the property. If a taxpayer is required to recapture the economic impact zone investment tax credit in accordance with subsection (E), the taxpayer may increase the basis of the property by the amount of any basis reduction attributable with claiming the economic impact zone investment tax credit in prior years. The basis must be increased in the year in which the credit is recaptured.
(G) Credits claimed under this section for taxable years beginning after 1997 for investments made before July 1, 1998, may not reduce a taxpayer's state income tax liability by more than fifty percent.
(H) The credit allowed by this section for investments made after June 30, 1998, is limited to no more than five million dollars for an entity subject to the license tax as provided in Section 12-20-100.
(I) Notwithstanding any amendments to Section 12-14-60 of the 1976 Code enacted in the 1998 session of the General Assembly reducing the percentage amount of the economic impact zone investment tax credit or otherwise reducing the amount of the credit allowed, in the case of investments at a project operated by a company pursuant to a revitalization agreement entered into between the company and the South Carolina Advisory Council for Economic Development effective on or before July 1, 1996, the provisions of Section 12-14-60 in existence prior to the 1998 amendment shall apply."
Time effective
SECTION 15. This act takes effect upon approval by the Governor.
Approved the 31st day of August, 1998.