Download This Bill in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
H. 3673
STATUS INFORMATION
General Bill
Sponsors: Reps. E.H. Pitts, Ballentine, Cotty, Stewart, Herbkersman, Kelly, Mulvaney, Rice, D.C. Smith and Whitmire
Document Path: l:\council\bills\ggs\22783mm07.doc
Introduced in the House on March 8, 2007
Currently residing in the House Committee on Ways and Means
Summary: Sales and use tax
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
-------------------------------------------------------------------------------
3/8/2007 House Introduced and read first time HJ-9
3/8/2007 House Referred to Committee on Ways and Means HJ-10
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-625 SO AS TO IMPOSE AN ADDITIONAL LICENSE TAX ON EACH CIGARETTE SUBJECT TO THE LICENSE TAX ON CIGARETTES IN AN AMOUNT EQUAL TO 3.25 CENTS ON EACH CIGARETTE, TO ESTABLISH THE GROCERIES' SALES TAX RELIEF FUND TO RECEIVE THE REVENUE OF THIS TAX AND PROVIDE FOR THE USE OF THIS FUND FOR THE ELIMINATION OF THE STATE SALES AND USE TAX ON THE GROSS PROCEEDS OF THE SALE OR SALES PRICE OF UNPREPARED FOOD, AND TO PROVIDE FOR THE COLLECTION AND ENFORCEMENT OF THIS ADDITIONAL TAX; TO AMEND SECTION 12-36-910, AS AMENDED, RELATING TO THE IMPOSITION OF THE STATE SALES AND USE TAX, SO AS TO DELETE LANGUAGE PROVIDING FOR A THREE PERCENT SALES AND USE TAX ON THE GROSS PROCEEDS OF THE SALE OR SALES PRICE OF UNPREPARED FOOD; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO THE EXEMPTIONS FROM THE STATE SALES AND USE TAX, SO AS TO INCLUDE THE GROSS PROCEEDS OF THE SALE OR SALES PRICE OF UNPREPARED FOOD.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-625. (A) There is imposed a surtax on cigarettes subject to the tax imposed pursuant to Section 12-21-620(1) in an amount equal to 3.25 cents on each cigarette.
(B) Notwithstanding another provision of law providing for the crediting of the revenues by license or other taxes, the revenue of the surtax imposed by this section must be credited to the Groceries' Sales Tax Relief Fund established pursuant to subsection (C) and used only for the purpose prescribed in subsection (C).
(C)(1) There is created the Groceries' Sales Tax Relief Fund into which must be deposited the revenue of the surtax collected pursuant to subsection (A). The fund must be separate and distinct from the general fund and may be used only for the purpose prescribed in this subsection. Earnings on investments from this fund must remain part of the separate fund and must not be deposited in the general fund, except as otherwise provided in this subsection.
(2) Monies in the fund must be used to eliminate the state sales and use tax imposed on the gross proceeds of the sale or sales price of unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons.
(3) Monies in the fund must be transferred by the State Treasurer to the general fund each fiscal year in the amount estimated by the Board of Economic Advisors to equal revenue not received as a result of the elimination of the sales and use tax on unprepared food as provided in this subsection.
(4) Monies not expended from the fund during a fiscal year must be carried forward to the succeeding fiscal year and used for the same purpose.
(D) For all purposes of reporting, payment, collection, and enforcement, the surtax imposed by this section is deemed to be imposed pursuant to Section 12-21-620(1)."
SECTION 2. Section 12-36-910(D) of the 1976 Code, as added by Act 388 of 2006, is amended to read:
"(D)(1) Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, the sales and use tax on the gross proceeds of sales or sales price of unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons is three percent.
(2) There is transferred from the general fund of the State to the EIA Fund in fiscal year 2006-2007 the revenue estimated by the Board of Economic Advisors to equal EIA revenue not received as a result of the two percent sales tax differential provided pursuant to this subsection. RESERVED."
SECTION 3. Section 12-36-2120 of the 1976 Code, as last amended by Act 386 of 2006, is further amended by adding an appropriately numbered item at the end to read:
"( ) unprepared food that lawfully may be purchased with United States Department of Agricultural food coupons."
SECTION 4. This act takes effect upon approval by the Governor.
This web page was last updated on Monday, October 10, 2011 at 1:35 P.M.