South Carolina General Assembly
116th Session, 2005-2006

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H. 3504

STATUS INFORMATION

General Bill
Sponsors: Reps. E.H. Pitts, Herbkersman, Ott, Haley, J. Brown, J.E. Smith, Bingham, Cobb-Hunter, Hayes, Limehouse, McGee, Kirsh and Pinson
Document Path: l:\council\bills\ggs\22926htc05.doc

Introduced in the House on February 9, 2005
Currently residing in the House Committee on Ways and Means

Summary: Sales tax exemption provided for prosthetic devices used to replace bodily parts and functions

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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    2/9/2005  House   Introduced and read first time HJ-35
    2/9/2005  House   Referred to Committee on Ways and Means HJ-35
   2/10/2005  House   Member(s) request name added as sponsor: Kirsh
   1/12/2006  House   Member(s) request name added as sponsor: Pinson

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

2/9/2005

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM SALES TAX, SO AS TO EXEMPT FROM SALES TAX PROSTHETIC DEVICES USED TO REPLACE BODILY PARTS AND BODILY FUNCTIONS, DISPOSABLE MEDICAL SUPPLIES THAT ARE DISPENSED BY A LICENSED HEALTH CARE PROVIDER, AND EFFECTIVE JULY 1, 2009, DURABLE MEDICAL EQUIPMENT PAID FOR BY MEDICAID AND MEDICARE FUNDS WHERE THE PAYMENT OF SALES TAX IS PROHIBITED AND TO REDUCE BY ONE PERCENT A FISCAL YEAR THE FIVE PERCENT STATE SALES AND USE TAX ON DURABLE MEDICAL EQUIPMENT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 12-36-2120(28) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"(28)(a)    medicine and prosthetic devices used to replace bodily parts and bodily functions that are sold by prescription, prescription medicines used to prevent respiratory syncytial virus, prescription medicines and therapeutic radiopharmaceuticals used in the treatment of cancer, lymphoma, leukemia, or related diseases, including prescription medicines used to relieve the effects of any such treatment, and free samples of prescription medicine distributed by its manufacturer and any use of these free samples;

(b)    hypodermic needles, insulin, alcohol swabs, blood sugar testing strips, monolet lancets, dextrometer supplies, blood glucose meters, and other similar diabetic supplies sold to diabetics under the authorization and direction of a physician;

(c)    disposable medical supplies such as bags, tubing, needles, and syringes, which are used for the intravenous administration of a prescription drug or medicine, and which come into direct contact with the prescription drug or medicine, which are dispensed by a licensed pharmacist in accordance with an individual prescription written for the use of a human being by a licensed health care provider, or which are dispensed by a licensed health care provider for the use of a human being which are used for the intravenous administration of a prescription drug or medicine, and which come into direct contact with the prescription drug or medicine. This exemption applies only to supplies used in the treatment of a patient outside of a hospital, skilled nursing facility, or ambulatory surgical treatment center;

(d)    medicine donated by its manufacturer to a public institution of higher education for research or for the treatment of indigent patients; and

(e)    dental prosthetic devices;

(f)    medicines and their ingredients that are compounded and dispensed or medicines administered to a patient under active treatment by a licensed physician; and

(g)    effective July 1, 2009, durable medical equipment;

(i)        as defined under federal and state Medicaid and Medicare laws;

(ii)    which is paid directly by funds of this State or the United States under the Medicaid or Medicare programs, where state or federal law or regulation authorizing the payment prohibits the payment of the sale or use tax, and

(iii)    sold by a provider who holds a South Carolina retail sales license and whose principal place of business is located in this State."

SECTION    2.    Notwithstanding the rates imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales of durable medical equipment as defined in Section 12-36-2120(28)(g) as added by this act, is four percent for sales from July 1, 2005, through June 30, 2006, three percent for such sales from July 1, 2006, through June 30, 2007, two percent for such sales from July 1, 2007, through June 30, 2008, and one percent for such sales from July 1, 2008, through June 30, 2009. Eighty percent of the revenues of the sales taxes raised by the special tax rates provided pursuant to this section must be credited to the general fund of the State and used as sales taxes are used and the remainder must be credited to the Education Improvement Act Fund. Except where otherwise exempt, the local sales and use taxes authorized by law continue to apply to those sales subject to the reduced state rate of tax provided in this section.

SECTION    3.    This act takes effect July 1, 2005.

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