South Carolina General Assembly
116th Session, 2005-2006
S. 1065
STATUS INFORMATION
General Bill
Sponsors: Senator Grooms
Document Path: l:\council\bills\gjk\20724sd06.doc
Companion/Similar bill(s): 1245, 4530, 4913
Introduced in the Senate on January 19, 2006
Introduced in the House on March 8, 2006
Last Amended on May 11, 2006
Currently residing in the Senate
Summary: Property tax assessments
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
1/19/2006 Senate Introduced and read first time SJ-5
1/19/2006 Senate Referred to Committee on Finance SJ-5
3/1/2006 Senate Committee report: Favorable with amendment Finance SJ-23
3/2/2006 Senate Amended SJ-19
3/2/2006 Senate Read second time SJ-19
3/7/2006 Senate Read third time and sent to House SJ-10
3/8/2006 House Introduced and read first time HJ-6
3/8/2006 House Referred to Committee on Ways and Means HJ-6
5/10/2006 House Committee report: Favorable with amendment Ways and Means HJ-3
5/11/2006 House Amended HJ-21
5/11/2006 House Read second time HJ-59
5/11/2006 House Unanimous consent for third reading on next legislative day HJ-59
5/12/2006 House Read third time and returned to Senate with amendments HJ-3
VERSIONS OF THIS BILL
1/19/2006
3/1/2006
3/2/2006
5/10/2006
5/11/2006
1 Indicates Matter Stricken
2 Indicates New Matter
3
4 AMENDED
5 May 11, 2006
6
7 S. 1065
8
9 Introduced by Senator Grooms
10
11 S. Printed 5/11/06--H.
12 Read the first time March 8, 2006.
13
14
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1
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7
8
9 A BILL
10
11 TO AMEND SECTION 12-37-712, CODE OF LAWS OF
12 SOUTH CAROLINA, 1976, RELATING TO ACCESS TO A
13 MARINA AND ITS BUSINESS RECORDS FOR THE
14 PURPOSE OF MAKING PROPERTY TAX ASSESSMENTS, SO
15 AS TO DEFINE “BUSINESS RECORDS” FOR PURPOSES OF
16 THIS SECTION.
17 Amend Title To Conform
18
19 Be it enacted by the General Assembly of the State of South
20 Carolina:
21
22 SECTION 1.A. Chapter 54, Title 12 of the 1976 Code is amended
23 by adding:
24
25 “Section 12-54-126. A person operating a business within this
26 State who has been issued a license or licenses by the department,
27 after closing, selling, or otherwise transferring the business to
28 another person, shall return all licenses issued by the department to
29 the department for cancellation and remit unpaid or accrued taxes.
30 The department may refuse to issue a license to a person and may
31 revoke one or more licenses held by a person who has failed to
32 comply with the provisions of this section.”
33
34 B. This section is effective October 1, 2006.
35
36 SECTION 2.A. Chapter 54 of Title 12 of the 1976 Code is
37 amended by adding:
38
39 “Section 12-54-196. (A) If a retailer collects from the
40 purchaser a state or local sales tax in an amount that exceeds the
41 amount authorized pursuant to Section
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1 12-36-940, or the amount required to be collected pursuant to
2 Section 12-36-1350, the retailer may be held liable for a
3 penalty equal to one hundred fifty percent of the amount of tax
4 collected that exceeds the amount authorized to be collected from
5 the purchaser pursuant to Section 12-36-940 or required to be
6 collected from the purchaser pursuant to Section 12-36-1350. The
7 assessment or remittance of this penalty does not relieve the
8 retailer of an obligation the retailer has to repay the purchaser tax
9 collected that exceeds the amount authorized or required to be
10 collected from the purchaser pursuant to Chapter 36 of this title.
11 (B) Notwithstanding the provisions of subsection (A), a retailer
12 is not subject to this penalty if the retailer:
13 (1) made a good faith effort to determine the proper tax rate;
14 (2) made a good faith effort to determine whether or not an
15 exemption or exclusion was applicable; or
16 (3) refunds to the purchaser the amount that exceeded the
17 amount authorized or required to be collected on a particular sale
18 within ninety days of being notified and receiving documentation
19 of the proper tax rate or the applicability of the exemption or
20 exclusion.
21 (C) The department, at its discretion, may extend the time for
22 issuing a refund pursuant to subsection (B)(3) to avoid the penalty
23 if the retailer makes a request in writing to the department.
24 (D) The imposition of the penalty must be based on the facts
25 and circumstances and is at the sole discretion of the department.”
26
27 B. This section takes effect upon approval by the Governor and
28 applies to taxes collected beginning in tax year 2006.
29
30 SECTION 3. Section 12-4-780 of the 1976 Code, as added by Act
31 399 of 2000, is redesignated as follows:
32
33 “Section 12-4-395. The department may accept, on terms and
34 conditions it establishes, payments to it by credit cards. This
35 authority includes a determination not to accept credit card
36 payments or to accept credit card payments only for certain classes
37 of payments as specified by the department. Notwithstanding
38 another provision of law, the State Treasurer may enter into
39 contracts on behalf of the department by which the department
40 may accept credit card payments. The department may withhold
41 the actual cost of processing credit card payments from deposits of
42 the payments and may treat these withholdings as reimbursements
43 of the associated expenditures.”
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1 SECTION 4. Section 12-6-40(A)(1)(a) of the 1976 Code, as last
2 amended by Act 145 of 2005, is further amended to read:
3
4 “(a) Except as otherwise provided, „Internal Revenue Code‟
5 means the Internal Revenue Code of 1986, as amended through
6 December 31, 2004 2005, and includes the effective date
7 provisions contained in it.”
8
9 SECTION 5.A. Section 12-6-545 of the 1976 Code, as added by
10 Act 41 of 2005, is further amended to read:
11
12 Section 12-6-545. (A) As used in this section:
13 (1) „Active trade or business income or loss‟ means income
14 or loss of an individual, estate, trust, or any other entity except
15 those taxed or exempted from tax pursuant to Sections 12-6-530
16 through 12-6-550 resulting from the ownership of an interest in a
17 pass-through business. Active trade or business income or loss
18 does not include:
19 (a)(i) passive investment income as defined in Internal
20 Revenue Code Section 1362(d) generated by a pass-through
21 business and income of the same type regardless of the type of
22 pass-through business generating it; and
23 (ii) expenses related to passive investment;
24 (b) capital gains and losses;
25 (c) any payments for services referred to in Internal
26 Revenue Code Section 707(c);
27 (d) amounts reasonably related to personal services. All
28 amounts paid as compensation and all guaranteed payments for
29 services, but not for the use of capital, as defined in Internal
30 Revenue Code Section 707(c) are deemed to be reasonably related
31 to personal services. In addition, if an owner of a pass-through
32 entity who performs personal services for the entity is not paid a
33 reasonable amount for those personal services as compensation or
34 payments referred to in Internal Revenue Code Section 707(c), all
35 of the owner‟s income from the entity is presumed to be amounts
36 reasonably related to personal services. For purposes of this
37 section, amounts reasonably related to personal services include
38 amounts reasonably related to the personal services of the owner,
39 the owner‟s spouse, and any person claimed as a dependent on the
40 owner‟s income tax return.
41 (2) „Pass-through businesses‟ mean sole proprietorships,
42 partnerships, and „S‟ corporations, including limited liability
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1 companies taxed as sole proprietorships, partnerships, or „S‟
2 corporations.
3 (B)(1) Notwithstanding Section 12-6-510, an a taxpayer may
4 elect annually to have the income tax at the rate provided in item
5 (2) of this subsection is imposed annually on the active trade or
6 business income received by the owner of a pass-through business.
7 For joint returns, the election is effective for both spouses. The
8 amount subject to tax pursuant to this section is not subject to tax
9 pursuant to Section 12-6-510.
10 (2) The rate of the income tax imposed pursuant to this
11 subsection is:
12 Taxable Year Beginning in Rate of Tax
13 2006 6.5 percent
14 2007 6 percent
15 2008 5.5 percent
16 after 2008 5 percent
17 (C) Notwithstanding any other provision of this chapter, active
18 trade or business loss must first be deducted, dollar for dollar
19 against active trade or business income. Any remaining active
20 trade or business loss is multiplied by a fraction, the numerator of
21 which is the rate of tax imposed pursuant to subsection (B)(2) of
22 this section, and the denominator of which is the highest income
23 tax rate imposed pursuant to Section 12-6-510. The resulting
24 amount is deductible from income taxed under Section 12-6-510 if
25 otherwise allowable.
26 (D) The department may issue guidance as to what expenses
27 reduce active trade or business income.
28 (E)(1) Notwithstanding item (A)(1)(e) of this section, if a
29 taxpayer owns an interest in one or more pass-through businesses
30 that have a total gross income of less than one million dollars and
31 taxable income of less than one hundred thousand dollars, then the
32 taxpayer may elect, instead of determining the actual amount of
33 active trade or business income related to his personal services, to
34 treat fifty percent of his active trade or business income as not
35 related to his personal services. For purposes of this item, the term
36 taxpayer includes both taxpayers who file a joint return.
37 (2) The department may provide other methods that may be
38 used to determine an amount that is considered to be unrelated to
39 the owner‟s personal services if it determines that the benefits to
40 the State of taxing income from personal services at a higher rate
41 are insufficient to justify the burdens imposed on the taxpayer.”
42
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1 B. This section takes effect for tax years beginning on or after
2 January 1, 2006.
3
4 SECTION 6.A. Section 12-6-3350 of the 1976 Code is amended
5 to read:
6
7 “Section 12-6-3350. (A) Taxpayers A taxpayer having
8 contracts a contract with this State who subcontract subcontracts
9 with minority firms are a socially and economically disadvantaged
10 small business is eligible for an income tax credit equal to four
11 percent of the payments to a minority that subcontractor for work
12 pursuant to the state contract. The subcontractor must be certified
13 as a minority firm socially and economically disadvantaged small
14 business as defined in Section 11-35-5010 and regulations
15 thereunder pursuant to it.
16 (B) The credit is limited to a maximum of twenty-five fifty
17 thousand dollars annually. A taxpayer is eligible to claim the
18 credit for six ten consecutive taxable years beginning with the
19 taxable year in which the credit is first claimed first payment is
20 made to the subcontractor that qualifies for the credit. After the
21 above six ten consecutive taxable years, the taxpayer is no longer
22 eligible for the credit regardless of whether or not the taxpayer
23 claimed the credit in a year.
24 subsequent to the year in which the credit was first claimed.
25 (C) A taxpayer claiming the credit shall maintain evidence of
26 work performed for a state the contract by the minority
27 subcontractor and shall present the evidence at the time of filing its
28 state income tax return in a manner prescribed by the department.”
29
30 B. Section 11-35-5230(B)(1) - (4) of the 1976 Code, as last
31 amended by Act 153 of 1997 is further amended to read:
32
33 “(1) Firms with state contracts A taxpayer having a contract
34 with this State that subcontracts with minority firms shall be a
35 socially and economically disadvantaged small business is eligible
36 for an income tax credit equal to four percent of the payments to
37 minority that subcontractors for work pursuant to a state the
38 contract. Such The subcontractors must be certified as to the
39 criteria of a minority firm a socially and economically
40 disadvantaged small business as defined in Section 11-35-5010 of
41 this code and any regulations which may be promulgated
42 thereunder under it.
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1 (2) The tax credit is limited to a maximum of twenty-five fifty
2 thousand dollars annually. A firm shall be taxpayer is eligible to
3 claim a tax credit for a period of five ten consecutive years from
4 the date the first income tax credit is claimed beginning with the
5 taxable year in which the first payment is made to the
6 subcontractor that qualifies for the credit.
7 (3) Any firm desiring to be certified as a minority firm socially
8 and economically disadvantaged small business shall make
9 application apply to the Small and Minority Business Assistance
10 Office (SMBAO) as defined by Section 11-35-5270, on such forms
11 as may be prescribed by that office.
12 (4) Firms A taxpayer claiming the income tax credit shall
13 maintain evidence of work performed for a state contract by
14 minority the subcontractors and shall present such evidence on a
15 form and in a manner prescribed by the Department of Revenue at
16 the time of filing its state income tax return and claim such credit
17 at the time of filing. All records shall must be available for audit
18 by the Department of Revenue in accordance with prevailing tax
19 statutes.”
20
21 C. This section takes effect upon approval by the Governor and
22 applies to taxable years beginning after December 31, 2006.
23
24 SECTION 7.A. Section 12-6-3360(C)(1), as last amended by Act
25 157 of 2005, is further amended to read:
26
27 “(1) Subject to the conditions provided in subsection (N) of
28 this section, a job tax credit is allowed for five years beginning in
29 year two after the creation of the job for each new full-time job
30 created if the minimum level of new jobs is maintained. The credit
31 is available to taxpayers with one hundred or more employees that
32 increase employment by ten or more full-time jobs, and no credit is
33 allowed for the year or any subsequent year in which the net
34 employment increase falls below the minimum level of ten. The
35 amount of the initial job credit is as follows:
36 (a) Eight thousand dollars for each new full-time job
37 created in distressed counties.
38 (b) Four thousand five hundred dollars for each new
39 full-time job created in least developed counties.
40 (c) Three thousand five hundred dollars for each new
41 full-time job created in under developed counties.
42 (d) Two thousand five hundred dollars for each new
43 full-time job created in moderately developed counties.
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1 (e) One thousand five hundred dollars for each new
2 full-time job created in developed counties.”
3
4 B. This section takes effect upon approval by the Governor and
5 applies to taxable years beginning in and after January 1, 2006.
6
7 SECTION 8. Section 12-6-3360(M)(8) of the 1976 Code is
8 amended to read:
9
10 “(8) „Distribution facility‟ means an establishment where
11 shipments of tangible personal property are processed for delivery
12 to customers. The term does not include an establishment where
13 retail sales of tangible personal property are made to retail
14 customers on more than twelve days a year except for a facility
15 which processes customer sales orders by mail, telephone, or
16 electronic means, if the facility also processes shipments of
17 tangible personal property to customers and if at least seventy-five
18 percent of the dollar amount of goods sold through the facility are
19 sold to customers outside of South Carolina. Retail sales made
20 inside the facility to employees working at the facility are not
21 considered for purposes of the twelve-day and seventy-five percent
22 limitation. For purposes of this definition, „retail sale‟ and
23 „tangible personal property‟ have the meaning provided in Chapter
24 36 of this title.”
25
26 SECTION 9. Section 12-37-220(B)(32)(7) of the 1976 Code is
27 amended to read:
28
29 “(7) „distribution facility‟ means an establishment where
30 shipments of tangible personal property are processed for delivery
31 to customers, but the term “distribution facility” does not include
32 an establishment which operates as a location where retail sales of
33 tangible personal property are made to customers. A distribution
34 facility includes establishments which process customer sales
35 orders by mail, telephone, or electronic means, if the establishment
36 also processes shipments of tangible personal property to
37 customers. The terms “retail sale”, and “tangible personal
38 property”, for purposes of this definition, have those meanings as
39 contained in Chapter 36 of Title 12 has the meaning provided
40 pursuant to Section 12-6-3360(M)(8).”
41
42 SECTION 10.A. Section 12-6-3375 of the 1976 Code, as added
43 by Act 124 of 2005, is amended to read:
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1 “Section 12-6-3375. (A) Companies primarily engaged in
2 manufacturing, warehousing, or distribution, which use port
3 facilities in this State and which increase their base port cargo
4 volume at these facilities by a minimum of five percent over 2005
5 totals, are eligible to take either a five hundred dollar additional tax
6 credit for each new full-time job created, or an additional two
7 percent investment tax credit for investments in new facilities,
8 plants, and equipment. Companies may also take an additional
9 two hundred fifty dollar tax credit for each new full-time job
10 created, or an additional one percent investment tax credit for each
11 incremental two and one-half percent increase in port cargo
12 volume which is over and above the minimum five percent
13 increase in base volume. An annual maximum of one thousand
14 five hundred dollars per job or a six percent investment tax credit
15 applies in regard to the tax credits authorized by this section. The
16 credit may only be claimed by the manufacturer, warehouse, or
17 distribution company which owns the cargo at the time the port
18 facilities are used.
19 (B) Base year port cargo volume must be at least seventy-five
20 net tons of noncontainerized cargo or ten loaded TEUs for a
21 company to be eligible for the credits provided for in this section.
22 (C) For every year in which a taxpayer claims the credit, the
23 taxpayer shall attach a schedule to the taxpayer‟s state income tax
24 return, which shall set forth the following information, as a
25 minimum, in addition to the information required by law and by
26 the Department of Revenue:
27 (1) a description of how the base year port traffic and the
28 increase in port traffic was determined;
29 (2) the amount of the base year port traffic;
30 (3) the amount of the increase in port traffic for the taxable
31 year, including information which demonstrates an increase in port
32 traffic in excess of the minimum amount required to claim the tax
33 credits under this section;
34 (4) any tax credit utilized by the taxpayer in prior years;
35 (5) the amount of tax credit carried over from prior years;
36 (6) the amount of tax credit utilized by the taxpayer in the
37 current taxable year; and
38 (7) he amount of tax credit to be carried over to subsequent
39 tax years.
40 (D) As used in this section:
41 (1) “TEU” means twenty-foot equivalent unit.
42 (2) “Base port cargo volume” means the total amount of net
43 tons of noncontainerized or twenty-foot equivalent units (TEUs) of
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1 product actually transported by way of a waterborne ship through a
2 port facility during the period from January 1, 2005, through
3 December 31, 2005. For companies who locate in South Carolina
4 after the effective date of this section, their base cargo volume will
5 be measured by their first calendar year as long as they meet the
6 requirements of seventy-five net tons of noncontainerized cargo or
7 ten loaded TEUs. Base port cargo volume must be recalculated
8 during the period from January 1, 2015 to December 31, 2015 and
9 every tenth year thereafter.
10 (3) “Port facility” means any publicly or privately owned
11 facility located within this State through which cargo is transported
12 by way of a waterborne ship or vehicle to or from destinations
13 outside this State and which handles cargo owned by third parties
14 in addition to cargo owned by the port facility‟s owner.
15 (4) “Port traffic” means the total amount of net tons of
16 noncontainerized cargo or containers measured in twenty-foot
17 equivalent units (TEUs) of cargo transported by way of a
18 waterborne ship or vehicle through a port facility.
19 (5) “New job” has the meaning defined in Section
20 12-6-3360(M)(3).
21 (6) “Full-time” has the meaning defined in Section
22 12-6-3360(M)(4).
23 (7) “Warehousing facility” has the meaning defined in
24 Section 12-6-3360(M)(7).
25 (8) “Distribution facility” has the meaning defined in
26 Section 12-6-3360(M)(8).
27 (E) Job tax credit provisions and procedures contained in
28 Section 12-6-3360 and investment tax credit provisions and
29 procedures contained in Section 12-14-60 apply to the tax credits
30 provided by this section mutatis mutandi in the manner determined
31 by the Department of Revenue.
32 (F) A company which increases its base port cargo volume at
33 Ports Authority facilities may take either the additional job tax
34 credits or the additional investment tax credits as provided by this
35 section, but not both.
36 (G) The maximum amount of tax credits allowed to all
37 qualifying taxpayers pursuant to this section may not exceed eight
38 million dollars per calendar year. Tax credits allowed shall be
39 allocated based on the date an application is received by the
40 Coordinating Council for Economic Development.
41 The Coordinating Council has sole discretion in determining
42 eligibility for additional credits provided by this section.
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1 An application must be submitted to the Coordinating Council
2 with the same information as required by subsection (C), and any
3 other information required by the Coordinating Council.
4 (A)(1) A taxpayer engaged in manufacturing, warehousing, or
5 distribution which uses port facilities in this State and which
6 increases its port cargo volume at these facilities by a minimum of
7 five percent in a single calendar year over its base year port cargo
8 volume is eligible to claim a tax credit in the amount determined
9 by the Coordinating Council for Economic Development (council).
10 (2) The maximum amount of tax credits allowed to all
11 qualifying taxpayers pursuant to this section may not exceed eight
12 million dollars for each calendar year. A qualifying taxpayer may
13 not receive more than one million dollars for each calendar year
14 except as provided in subsection (B)(2). The Coordinating
15 Council has sole discretion in allocating credits provided by this
16 section, taking into consideration the following factors:
17 (a) the amount of base year port cargo volume;
18 (b) the total and percentage increase in port cargo volume;
19 (c) the number of qualifying taxpayers;
20 (d) the type of cargo transported; and
21 (e) other factors related to the economic benefit of the
22 State, as determined by the Coordinating Council.
23 (3) If the credit exceeds the taxpayer‟s tax liability for the
24 taxable year, the excess amount may be carried forward and
25 claimed against income taxes in the next five succeeding taxable
26 years.
27 (4) The credit may be claimed by the taxpayer as provided in
28 (A)(1) only if the taxpayer owns the cargo at the time the port
29 facilities are used.
30 (B)(1) For every year in which a taxpayer claims the credit, the
31 taxpayer shall submit an application to the council by March first
32 of the calendar year after the calendar year in which the increase in
33 port cargo volume occurs. The taxpayer shall attach a schedule to
34 the taxpayer‟s application to the council with the following
35 information and information requested by the council or the
36 department:
37 (a) a description of how the base year port cargo volume
38 and the increase in port cargo volume was determined;
39 (b) the amount of the base year port cargo volume;
40 (c) the amount of the increase in port cargo volume for the
41 taxable year stated both as a percentage increase and as a total
42 increase in net tons of noncontainerized cargo and TEUs of cargo,
43 including information which demonstrates an increase in port
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1 cargo volume in excess of the minimum amount required to claim
2 the tax credits pursuant to this section;
3 (d) any tax credit utilized by the taxpayer in prior years;
4 and
5 (e) the amount of tax credit carried over from prior years.
6 (2) If on March fifteenth of each year, the
7 eight-million-dollar amount of credit is not fully allocated among
8 qualifying taxpayers, then those taxpayers who have been allocated
9 the maximum one million dollar credit for a year must be allowed
10 a pro-rata share of the remaining allocated credit up to eight
11 million dollars.
12 (3) To receive the credit the taxpayer shall claim the credit
13 on its income tax return in a manner prescribed by the department.
14 The department may require a copy of the certification form issued
15 by the council be attached to the return or otherwise provided.
16 (C) As used in this section:
17 (1) „TEU‟ means a „twenty-foot equivalent unit‟; a
18 volumetric measure based on the size of a container twenty feet
19 long by eight feet wide by eight feet, six inches high.
20 (2) „Base year port cargo volume‟ initially means the total
21 amount of net tons of noncontainerized cargo or TEUs of cargo
22 actually transported by way of a waterborne ship through a port
23 facility during the period from January 1, 2005, through December
24 31, 2005. Base year port cargo volume must be at least
25 seventy-five net tons of noncontainerized cargo or ten TEUs for a
26 taxpayer to be eligible for the credits provided in this section. For
27 a taxpayer that does not ship that amount in the year ending
28 December 31, 2005, including a taxpayer who locates in South
29 Carolina after December 31, 2005, its base cargo volume will be
30 measured by the initial January first through December thirty-first
31 calendar year in which it meets the requirements of seventy-five
32 net tons of noncontainerized cargo or ten loaded TEUs. Base year
33 port cargo volume must be recalculated each calendar year after
34 the initial base year.
35 (3) „Port facility‟ means any publicly or privately owned
36 facility located within this State through which cargo is transported
37 by way of a waterborne ship or vehicle to or from destinations
38 outside this State and which handles cargo owned by third parties
39 in addition to cargo owned by the port facility‟s owner.
40 (4) „Port cargo volume‟ means the total amount of net tons
41 of noncontainerized cargo or containers measured in twenty-foot
42 equivalent units (TEUs) of cargo transported by way of a
43 waterborne ship or vehicle through a port facility.
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1 (D) Notwithstanding Section 12-54-240, the department and the
2 Department of Commerce may exchange information submitted by
3 a taxpayer pursuant to this section.”
4
5 B. Section 12-54-240(B) of the 1976 Code, as last amended by Act
6 145 of 2005, is further amended by adding an appropriately
7 numbered item at the end to read:
8
9 “( ) exchange of information between the department and the
10 Department of Commerce pursuant to Section 12-6-3375.”
11
12 C. This section takes effect upon approval by the Governor and
13 applies to tax years beginning after December 31, 2004.
14
15 SECTION 11.A. Section 12-6-3385(A) of the 1976 Code is
16 amended to read:
17
18 “(A)(1) A student is allowed a refundable individual income
19 tax credit equal to twenty-five percent, not to exceed eight hundred
20 fifty dollars in the case of four-year institutions and twenty-five
21 percent, not to exceed three hundred fifty dollars in the case of
22 two-year institutions for tuition paid an institution of higher
23 learning or a designated institution as provided for in this section
24 during a taxable year. The amount of the tax credit claimed up to
25 the limits authorized in this section for any taxable year may not
26 exceed the amount of tuition paid during that taxable year.
27 (2)(a) Tuition credits may not be claimed for more than four
28 consecutive years after the student enrolls in an eligible institution.
29 (b) The credit period is suspended for a qualifying student
30 required to withdraw from an institution of higher learning to serve
31 on active military duty if the service member re-enrolls in an
32 eligible institution within twelve months upon demobilization and
33 provides official documentation from the Armed Forces to verify
34 the dates of active duty military service.
35 (c) However, extensions An extension of the credit period
36 may be granted due to medical necessity as defined by the
37 Commission on Higher Education.
38 (3) The credit may be claimed by the student or by an
39 individual eligible to claim the student as a dependent on his
40 federal income tax return, whoever actually paid the tuition. The
41 department shall prescribe a form for claiming the credit.”
42
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1 B. This section takes effect upon approval by the Governor and
2 applies to qualifying students required to withdraw from a
3 qualifying institution to serve on active military duty on or after
4 January 1, 2000.
5
6 SECTION 12.A. Section 12-6-3535(A) of the 1976 Code, as last
7 amended by Act 138 of 2005, is amended to read:
8
9 “(A) A taxpayer who is allowed a federal income tax credit
10 under pursuant to Section 47 of the Internal Revenue Code for
11 making qualified rehabilitation expenditures for a certified historic
12 structure located in this State is allowed to claim a credit against
13 income or license tax imposed pursuant to this title taxes imposed
14 by Sections 12-6-510 and 12-6-530 and license fees imposed by
15 Chapter 20 of Title 12. For the purposes of this section, „qualified
16 rehabilitation expenditures‟ and „certified historic structure‟ are
17 defined as provided in the Internal Revenue Code Section 47 and
18 the applicable treasury regulations. The amount of the credit is ten
19 percent of the expenditures that qualify for the federal credit. To
20 claim the credit allowed by this subsection, the taxpayer must
21 attach to the return a copy of the section of the federal income tax
22 return showing the credit claimed, along with any other
23 information that the Department of Revenue determines is
24 necessary for the calculation of the credit provided by this
25 subsection.”
26
27 B. Section 12-6-3535(C)(2) of the 1976 Code, as last amended by
28 Act 138 of 2005, is amended to read:
29
30 “(2) The credit earned pursuant to this section by an „S‟
31 corporation owing corporate level income tax must be used first at
32 the entity level. Any Remaining credit passes through to each
33 shareholder in a percentage equal to each shareholder‟s percentage
34 of stock ownership. The credit earned pursuant to this section by a
35 general partnership, limited partnership, limited liability company,
36 or any other entity taxed as a partnership pursuant to Subchapter K
37 of the Internal Revenue Code must be passed through to its
38 partners and may be allocated among any of its partners, including
39 without limitation, an allocation of the entire credit to one partner,
40 in any a manner agreed by the partners that is consistent with
41 Subchapter K of the Internal Revenue Code. As used in this item
42 the term „partner‟ means a partner, member, or owner of an interest
43 in the pass-through entity, as applicable.”
[1065] 13
1 C. This section takes effect upon approval by the Governor and
2 applies to tax years beginning in 2006.
3
4 SECTION 13.A. Section 12-6-5030(B) of the 1976 Code, as last
5 amended by Act 145 of 2005, is further amended to read:
6
7 “(B)(1)A composite return is a single return for two or more
8 taxpayers having the same tax year in which each participant‟s
9 share of the partnerships or „S‟ Corporation‟s taxable income or
10 loss tax is separately computed separately and added together to
11 arrive at the total tax due on the composite return. The partnership
12 or „S‟ Corporation may elect to determine each participant‟s tax
13 due by one of the following methods:
14 (a) for a participant who provides an affidavit to the
15 department through the entity stating that he has no income other
16 than the income from the entity:
17 (i) compute the participant‟s South Carolina income
18 tax using the pro rata share of the standard deduction or itemized
19 deductions, and personal exemption amount exemptions for each
20 participant pursuant to Section 12-6-1720(2) in the same manner as
21 if it was being separately reported; or
22 (ii) compute the participant‟s South Carolina income
23 tax without regard to any deductions or exemptions in the same
24 manner as if it were being separately reported; or
25 (b) for a participant who does not provide an affidavit to
26 the department through the entity stating that he has no income
27 other than the income from the entity, compute each participant‟s
28 share of South Carolina income tax without regard to any
29 deductions or exemptions by using the active trade or business
30 income rate provided in Section 12-6-545 on his active trade or
31 business income, and using the highest marginal rate in Section
32 12-6-510 for other income.
33 (2) The composite return is signed by a general an
34 authorized partner, or an authorized officer of the „S‟ Corporation,
35 or an authorized member of a limited liability company taxed as a
36 partnership or „S‟ Corporation.”
37
38 B. This section takes effect upon approval by the Governor for
39 taxable years beginning after 2005.
40
41 SECTION 14. Section 12-10-80(D)(2) of the 1976 Code, as last
42 amended by Act 339 of 2000, is further amended to read:
[1065] 14
1 “(2) The amount that may be claimed as a job development
2 credit by a qualifying business is limited by this subsection and by
3 the revitalization agreement. The council may approve a waiver of
4 ninety-five percent of the limits provided in item (1) for a
5 qualifying business making a significant capital investment as
6 defined in Section 4-12-30(D)(4), 4-29-67(D)(4), or
7 12-44-30(87).”
8
9 SECTION 15. Section 12-23-810 of the 1976 Code is amended
10 to read:
11
12 “Section 12-23-810. (A) Every hospital licensed as a general
13 hospital by the Department of Health and Environmental Control is
14 subject to the payment of an excise, license, or privilege tax. Each
15 hospital‟s tax must be based on the total expenditures of each
16 hospital as a percentage of total hospital expenditures statewide.
17 (B) [Reserved].
18 (C) Total annual revenues from the tax, exclusive of penalties
19 and interest, in subsection (A) of this section initially must equal
20 twenty-nine and one-half two hundred sixty-four million dollars.
21 The amount of a general hospital‟s tax must be derived from
22 Schedule B, Part 1 of the hospital‟s cost report. The initial annual
23 tax must be collected, beginning July 1, 2006, based upon the
24 reconciled account of a general hospital subject to this article,
25 considering partial payments and an uncollected portion of the
26 previous assessment pursuant to this article for the fiscal year
27 ending June 30, 2006. Upon notification from the Department of
28 Revenue, on behalf of and based on calculations performed by the
29 Department of Health and Human Services, a general hospital shall
30 remit the balance due based on a payment schedule as determined
31 by the Department of Health and Human Services.”
32
33 SECTION 16. Section 12-23-830 of the 1976 Code is amended
34 to read:
35
36 “Section 12-23-830. (A) On the first day of each quarter, each
37 general hospital shall remit one-fourth of its annual tax to the
38 Department of Revenue. The tax must be paid for each quarter a
39 hospital is in operation. If a hospital ceases operations, the taxes
40 not paid as a result of the cessation of operations must be
41 apportioned among other hospitals in operation.
42 (B) Beginning July 1, 2006, on the first day of each quarter, a
43 general hospital shall remit to the Department of Revenue
[1065] 15
1 one-fourth of a second, and each successive, annual tax as
2 calculated pursuant to subsection (A), based upon operations
3 conducted during fiscal year ending June 30, 2007, and each
4 successive state fiscal year. The tax must be paid for each quarter
5 a hospital is in operation. If a hospital ceases operation, the taxes
6 unpaid as a result of the cessation of operation, must be
7 apportioned among other hospitals remaining in operation.”
8
9 SECTION 17. Section 12-23-840 of the 1976 Code is amended
10 to read:
11
12 “Section 12-23-840. Revenues derived under the provisions of
13 this article must be deposited in the Medicaid Expansion Fund
14 created by Section 44-6-155. In addition to the purposes specified
15 in Section 44-6-155, monies in the Medicaid Expansion Fund must
16 be used to provide healthcare coverage to the Medicaid-eligible
17 and uninsured populations in South Carolina.”
18
19 SECTION 18.A. Items (15), (39), (55) as last amended by Act
20 69 of 2003, (61), and (62), as last amended by Act 69 of 2003, all
21 of Section 12-28-110 of the 1976 Code, are amended to read:
22
23 “(15) „Diesel fuel‟ means a liquid, including biodiesel and a
24 biodiesel blend that is commonly or commercially known or sold
25 as a fuel that is suitable for use in a diesel-powered highway
26 vehicle. A liquid meets this requirement if, without further
27 processing or blending, the liquid has practical and commercial
28 fitness for use in the propulsion engine of a diesel-powered
29 highway vehicle. However, a liquid does not possess this practical
30 and commercial fitness solely by reason of its possible or rare use
31 as a fuel in the propulsion engine of a diesel-powered highway
32 vehicle. „Diesel fuel‟ does not include jet fuel if the buyer is
33 registered to purchase jet fuel subject to federal taxes applicable to
34 jet fuel and the seller obtains certification of that fact satisfactory
35 to the Internal Revenue Service before making the sale.
36 (39) „Motor fuel‟ means gasoline, diesel fuel, substitute fuel,
37 and blended fuel.
38 (55) „Motor fuel subject to the user fee‟ means gasoline, diesel
39 fuel, kerosene, blended fuel, substitute fuel, and blends of them
40 and any other substance blended with them.
41 (61) „Transport truck‟ means a semitrailer or trailer combination
42 rig designed or used to transport liquid motor fuel over the
43 highways.
[1065] 16
1 (62) „Transporter‟ means any operator of a pipeline, barge,
2 railroad or transport truck a person engaged in the business of
3 transporting motor fuels subject to the user fee.”
4
5 B. Section 12-28-110 of the 1976 Code, as last amended by Act 69
6 of 2003, is further amended by adding at the end:
7
8 “(69) „Substitute fuel‟ means a liquid that is commonly and
9 commercially known or sold as a fuel that is suitable for use in a
10 highway vehicle. The fuel meets this requirement if, without
11 further processing or blending, the fuel is a fluid and has practical
12 and commercial fitness for use in the propulsion of a highway
13 vehicle. This includes all liquids regardless of temperature or
14 pressure.
15 (70) „Biodiesel‟ means a fuel composed of mono-alkyl esters of
16 long chain fatty acids generally derived from vegetable oils or
17 animal fats, commonly known as B100, that is commonly and
18 commercially known or sold as a fuel that is suitable for use in a
19 highway vehicle. The fuel meets this requirement if, without
20 further processing or blending, the fuel is a fluid and has practical
21 and commercial fitness for use in the propulsion of a highway
22 vehicle.
23 (71) „Biodiesel blend‟ means a blend of biodiesel fuel with
24 petroleum based diesel fuel, commonly designated Bxx where xx
25 represents the volume percentage of biodiesel fuel in the blend (for
26 example B20 is 20 percent biodiesel, 80 percent petro diesel), and
27 that is commonly and commercially known or sold as a fuel that is
28 suitable for use in a highway vehicle. The fuel meets this
29 requirement if, without further processing or blending, the fuel is a
30 fluid and has practical and commercial fitness for use in the
31 propulsion of a highway vehicle.”
32
33 C. Section 12-28-310(A) of the 1976 Code, as last amended by
34 Act 161 of 2005, is further amended to read:
35
36 “(A) Subject to the exemptions provided in this chapter, a user
37 fee of sixteen cents a gallon is imposed on:
38 (1) all gasoline, gasohol, or blended fuels containing
39 gasoline that are used or consumed for any purpose in this State;
40 and
41 (2) all diesel fuel, substitute fuels, or alternative fuels, or
42 blended fuels containing diesel fuel that are used or consumed in
[1065] 17
1 this State in producing or generating power for propelling motor
2 vehicles.”
3
4 D. Section 12-28-330 of the 1976 Code, as last amended by Act
5 161 of 2005, is further amended to read:
6
7 “Section 12-28-330. The department considers it a rebuttable
8 presumption, subject to proof of exemption pursuant to Article 7 of
9 this chapter, that all motor fuel subject to the user fee removed
10 from a terminal in this State, or imported into this State other than
11 by a bulk transfer within the bulk transfer terminal system or
12 delivered into an end user‟s storage tank, is to be used or
13 consumed in this State, in the case of gasoline, gasohol, or blended
14 fuels containing gasoline and is to be used or consumed on the
15 highways in this State in producing or generating power for
16 propelling motor vehicles in the case of all other taxable motor
17 fuel.”
18
19 E. Section 12-28-790(C) and (D) of the 1976 Code is amended to
20 read:
21
22 “(C) Where a refund is payable to a supplier, the supplier may
23 claim a credit in lieu of the refund.
24 (D) To facilitate efficient administration and in lieu of any
25 instead of the individual refund procedures, the department may
26 provide by regulation an alternative election by the applicant for a
27 refund by way of credit against state income tax liability.”
28
29 F. Section 12-28-970(A) as last amended by Act 69 of 2003, is
30 further amended to read:
31
32 “(A) A backup user fee equal to the user fee imposed by Section
33 12-28-310 is imposed and must be administered in accordance
34 with regulations promulgated procedures established by the
35 department on the use on the highways of motor fuel subject to the
36 user fee by an end user, including operators of state and local
37 government vehicles, American Red Cross vehicles, and buses,
38 and other persons exempted from the full federal highway tax,
39 unless the person is exempted otherwise under Section
40 12-28-710(A)(12), upon the delivery in this State into the fuel
41 supply tank of a highway vehicle of:
42 (1) diesel fuel that contains a dye;
[1065] 18
1 (2) motor fuel subject to the user fee on which a claim for
2 refund has been made;
3 (3) alternative fuels; or
4 (4) liquid substitute fuel on which a user fee previously has
5 not been imposed by this chapter.”
6
7 G. Section 12-28-970 of the 1976 Code, as last amended by Act
8 69 of 2003, is further amended by adding:
9
10 “(C)(1)A back-up user fee equal to the user fee imposed by
11 Section 12-28-310 is imposed on a liquid or gas that is not
12 otherwise taxed pursuant to this chapter and that is commonly or
13 commercially known or sold as a fuel suitable for use in a highway
14 vehicle. The user fee is due upon the first receipt of the product
15 when received from a source outside of South Carolina by any
16 wholesaler, retailer, or end-user and the user fee is imposed upon,
17 and is the liability of, the wholesaler, retailer, or end-user who first
18 received the product into the State.
19 (2) A back-up user fee equal to the user fee imposed by
20 Section 12-28-310 is imposed on any liquid or gas that is not
21 otherwise taxed pursuant to this chapter and that is commonly or
22 commercially known or sold as a fuel suitable for use in a highway
23 vehicle. The user fee is due upon the first sale or use of the
24 product when produced in this State by a person and the user fee is
25 imposed upon the first in-state sale or use by that person. The user
26 fee is imposed upon, and is the liability of, the producer of the
27 product.”
28
29 H. Section 12-28-975(A) and (C) of the 1976 Code, as last
30 amended by Act 69 of 2003, is further amended to read:
31
32 “(A) If an exporter diverts motor fuel subject to the user fee
33 removed from a terminal in this State from an intended destination
34 outside South Carolina as shown on the terminal-issued shipping
35 papers to a destination within this State, the exporter, in addition to
36 compliance with the notification provided for by Section
37 12-28-780, shall notify and pay the user fee imposed by Section
38 12-28-310 to the State upon the same terms and conditions as if the
39 exporter were an occasional importer licensed under Section
40 12-28-905(A) without deduction for the allowances provided by
41 Section 12-28-960. The supplier and exporter under this
42 subsection by mutual agreement may permit the supplier to assume
[1065] 19
1 the exporter‟s liability and adjust the exporter‟s user fees payable
2 to the supplier.
3 (C) If an unlicensed importer diverts motor fuel subject to the
4 user fee from a destination outside this State to a destination inside
5 this State after having removed the product from a terminal outside
6 South Carolina, the importer, in addition to compliance with the
7 notification provided for by Section 12-28-1525, shall notify the
8 State and shall pay the user fee imposed by this chapter to South
9 Carolina upon the same terms and conditions as if the unlicensed
10 importer were a licensed occasional importer subject to Section
11 12-28-905(A) without deduction for the allowances provided by
12 Section 12-28-960. An importer who has purchased the product
13 from a licensed supplier, by mutual agreement with the supplier,
14 may permit the supplier to assume the importer‟s liability and
15 adjust the importer‟s user fees payable to the supplier. “
16
17 I. Section 12-28-990 of the 1976 Code, as last amended by Act 69
18 of 2003, is further amended to read:
19
20 “Section 12-28-990. (A) Each A person (i) blending materials
21 including blendstocks, additives, and fuel grade ethanol on which
22 the user fee has not been paid, including blendstocks, additives,
23 and fuel grade ethanol with motor fuels subject to the user fee as to
24 for which the user fee has been paid or accrued; or (ii)
25 manufacturing or otherwise producing a substitute fuel or diesel
26 fuel, unless dye was added in a manner that conforms to federal
27 requirements established by the Internal Revenue Code and
28 regulations exempting the product from the motor fuel tax pursuant
29 to Section 12-28-710(11) shall remit the user fee imposed by this
30 chapter.
31 (B) A fuel vendor subject to the user fee under subsection (A)
32 shall remit the user fee with the report required under pursuant to
33 Section 12-28-1390(B).
34 (C) Any A person other than a fuel vendor liable for the user
35 fee payable under pursuant to subsection (A) shall remit the user
36 fee directly to the department within thirty days of the blending or
37 manufacturing event in accordance with regulations promulgated
38 procedures established by the department.
39 (D) A person subject to the user fee payable pursuant to
40 subsection (A) must be licensed by the department as a blender or
41 a manufacturer.”
42
[1065] 20
1 J. Section 12-28-1120 of the 1976 Code, as last amended by Act
2 69 of 2003, is further amended to read:
3
4 “Section 12-28-1120. Each person A transporter who is not
5 licensed as a supplier shall obtain a transporter‟s license before
6 transporting motor fuel subject to the user fee by whatever manner
7 from a point outside this State to a point inside South Carolina, or
8 from a point inside this State to a point outside South Carolina,
9 regardless of whether the person is engaged for hire in interstate
10 commerce or for hire in intrastate commerce. The registration fee
11 for a transporter‟s license is fifty dollars.”
12
13 K. Section 12-28-1370(A) of the 1976 Code, as last amended by
14 Act 69 of 2003, is further amended to read:
15
16 “(A) A person licensed as a transporter in this State engaged in
17 interstate commerce shall file monthly reports with the department,
18 on forms prescribed and furnished by the department, concerning
19 the amount of motor fuel subject to the user fee transported by
20 transport truck across the borders of this State from a point outside
21 this State to a point inside South Carolina, from a point inside this
22 State to a point outside South Carolina, or between two points in
23 this State.”
24
25 L. This section takes effect July 1, 2006.
26
27 SECTION 19.A. Section 12-33-245(A) of the 1976 Code, as last
28 amended by Act 139 of 2005, is further amended to read:
29
30 “(A) In addition to taxes imposed pursuant to the provisions of
31 Sections 12-33-230, 12-33-240, Article 5 of this chapter, and
32 Chapter 36, Title 12, there is imposed an excise tax equal to five
33 percent of the gross proceeds of the sales of alcoholic liquor by the
34 drink for on-premises consumption in an establishment licensed
35 for sales pursuant to Article 5, Chapter 6, Title 61 or at a location
36 holding a temporary license or permit that authorizes the sale of
37 liquor by the drink. All proceeds of this excise tax must be
38 deposited to the credit of the general fund of the State. Except
39 with respect to the distribution of the revenue of this tax, this
40 excise tax is considered to be imposed pursuant to Chapter 36,
41 Title 12. For purposes of this subsection, „gross proceeds of sales‟
42 has the meaning as provided in Section 12-36-90, except that the
43 sales tax imposed under Chapter 36, Title 12 is not included in
[1065] 21
1 „gross proceeds of sales‟. The term „gross proceeds of sales‟ also
2 includes, but is not limited to, the retail value of a complimentary
3 or discounted beverage containing alcoholic liquor, an amount
4 charged for ice for a drink containing alcoholic liquor, and an
5 amount charged for a nonalcoholic beverage that is sold or used as
6 a mixer for a drink containing alcoholic liquor.”
7
8 B. Chapter 6, Title 61 of the 1976 Code is amended by adding:
9
10 Section 61-6-720. Notwithstanding any other provision of this
11 title, a person who operates in this State a bakery for the
12 preparation of food items, in which food items alcoholic beverages
13 are used as ingredients, and which food items are manufactured for
14 and sold at wholesale, must apply for a special bakery food
15 manufacturer‟s license from the department, in accordance with
16 Section 61-2-100, to purchase the alcoholic beverages from a
17 wholesaler licensed pursuant to Section 61-6-100(2), or from a
18 retailer licensed pursuant to Section 61-6-100(3), or from a
19 manufacturer in containers holding greater quantities of alcoholic
20 liquor than wholesalers or retailers have authority to sell. The
21 department must establish the form of the application for the
22 special bakery food manufacturer‟s license. The license fee for
23 this biennial license is one thousand dollars. Alcoholic liquor
24 purchased pursuant to this section may only be used in the
25 preparation of food items. The department must revoke the special
26 bakery food manufacturer‟s license of any operator which permits
27 the consumption of alcoholic liquor as a beverage of liquor
28 purchased pursuant to this section or which transfers alcoholic
29 liquor purchased pursuant to this section to any other person.
30
31 SECTION 20.A. Section 12-36-90(2) of the 1976 Code, as last
32 amended by Act 139 of 2005, is further amended by adding an
33 appropriately lettered item at the end to read:
34
35 “( ) tangible personal property purchased by a person engaged
36 in the business of servicing a warranty, maintenance, or similar
37 service contract for use in replacing a defective part under the
38 contract if tax was paid on the sale or the renewal of the contract
39 and the customer is not charged for labor or material when the part
40 is replaced.”
41
42 B. This section takes effect October 1, 2005.
[1065] 22
1 SECTION 21.A. Section 12-36-910(B) of the 1976 Code, as last
2 amended by Act 161 of 2005, is further amended by adding an
3 appropriately numbered item to read:
4
5 “( ) gross proceeds accruing or proceeding from the sale or
6 renewal of warranty, maintenance, or similar service contracts for
7 tangible personal property, whether or not the contracts are
8 purchased in conjunction with the sale of tangible personal
9 property.”
10
11 B. This section takes effect October 1, 2005.
12
13 SECTION 22. Section 12-36-2120(51) of the 1976 Code, as last
14 amended by Act 399 of 2000, is further amended to read:
15
16 “(51) material handling systems and material handling
17 equipment used in the operation of a distribution facility or a
18 manufacturing facility including, but not limited to, racks used in
19 the operation of a distribution facility or a manufacturing facility
20 and either used or not used to support a facility structure or part of
21 it. To qualify for this exemption, the taxpayer shall notify the
22 department before the first month it uses the exemption and shall
23 invest at least thirty-five million dollars in real or personal
24 property in this State over the five-year period beginning on the
25 date provided by the taxpayer to the department in its notices. The
26 taxpayer shall notify the department in writing that it has met the
27 thirty-five million dollar investment requirement or, after the
28 expiration of the five years, that it has not met the thirty-five
29 million dollar investment requirement. The department may assess
30 any tax due on material handling systems and material handling
31 equipment purchased tax-free pursuant to this item but due the
32 State as a result of the taxpayer‟s failure to meet the thirty-five
33 million dollar investment requirement. The running of the periods
34 of limitations for assessment of taxes provided in Section 12-54-85
35 is suspended for the time period beginning with notice to the
36 department before the taxpayer uses the exemption and ending
37 with notice to the department that the taxpayer either has met or
38 has not met the thirty-five million dollar investment requirement.”
39
40 SECTION 23.A. Section 12-36-2120 of the 1976 Code, as last
41 amended by Act 164 of 2005, is further amended by adding an
42 appropriately numbered item at the end to read:
[1065] 23
1 “( ) the sale or renewal of a warranty, maintenance, or similar
2 service contract for tangible personal property if the sale or
3 purchase of the tangible personal property covered by the contract
4 is exempt or excluded from the tax imposed by this chapter.”
5
6 B. This section takes effect October 1, 2005.
7
8 SECTION 24. Section 12-37-2740 of the 1976 Code, as added
9 by Act 101 of 2001, is amended to read:
10
11 “Section 12-37-2740. (A) The Department of Motor Vehicles
12 shall suspend the driver‟s license and vehicle registration of a
13 person who fails to pay personal property tax on a vehicle. The
14 request to suspend must be an electronic notification from the
15 county treasurer of the county where in which the tax is
16 delinquent. Before the electronic notification is sent to the
17 department Department of Motor Vehicles, the county treasurer
18 shall notify the delinquent taxpayer of the pending suspension by
19 letter. The letter must be developed by the county treasurers in
20 conjunction with the department Department of Motor Vehicles
21 and used uniformly throughout the State. The letter must advise the
22 person of the pending suspension and the steps necessary to
23 prevent the suspension from being entered on the person‟s driving
24 and registration records. Each A county must allow thirty days for
25 the payment of taxes before the county notifies the department
26 Department of Motor Vehicles to suspend the person‟s driver‟s
27 license and vehicle registration.
28 (B) Notwithstanding the provisions of Sections 56-1-460 and
29 56-9-500, a charge of driving under suspension when if the
30 suspension is solely for failure to pay property taxes or the
31 reinstatement fee required for the property tax suspension does not
32 require proof of financial responsibility. A person shall is not be
33 subject to a custodial arrest solely for being under suspension
34 pursuant to provisions contained in this section. Upon conviction:
35 (1) For a first offense under this section, the penalty is a fine
36 not to exceed fifty dollars.
37 (2) For a second offense under this section, the penalty is a
38 fine not to exceed two hundred fifty dollars.
39 (3) For a third or subsequent offense under this section, the
40 penalty must not exceed the general criminal jurisdiction of a
41 magistrate‟s court is a fine not to exceed five hundred dollars, or
42 imprisonment not to exceed thirty days, or both.
[1065] 24
1 (C) Notwithstanding the provisions of subsections (A) and (B)
2 of this section or the provisions of Section 56-1-460, a charge of
3 driving under suspension issued solely as a result of this section
4 must be dismissed if the person provides proof on the person‟s
5 court date that the personal property taxes on the vehicle which
6 resulted in the charge being issued have been paid.
7 (D) Before the reinstatement of a driver‟s license or vehicle
8 registration suspended due to a violation of pursuant to this
9 section, a fee of fifty dollars must be paid to the department
10 Department of Motor Vehicles. The department Department of
11 Motor Vehicles may retain revenues generated by payment of the
12 reinstatement fees pursuant to this section for use in defraying
13 costs associated with suspension and reinstatement actions
14 pursuant to this section. Fees collected in excess of actual
15 departmental direct costs related to suspension and reinstatement
16 actions pursuant to this section must be deposited to the credit of
17 the general fund of the State at the end of each fiscal year.”
18
19 SECTION 25. Section 12-37-2890 of the 1976 Code, as added
20 by Act 161 of 2005, is amended to read:
21
22 “Section 12-37-2890. (A) Upon request of by the Department
23 of Revenue, and after the time period for all appeals of any tax due
24 is exhausted, the Department of Public Safety Motor Vehicles shall
25 suspend the driver‟s license and vehicle registration of a person
26 who that fails to file and or pay a motor carrier property tax on a
27 vehicle, pursuant to this article. The request to suspend must be an
28 electronic notification from the Department of Revenue to the
29 Department of Motor Vehicles. Before notification is sent to the
30 Department of Public Safety Motor Vehicles, the Department of
31 Revenue shall notify the delinquent taxpayer by certified letter of
32 the pending suspension and of the steps necessary to prevent the
33 suspension from being entered on the person‟s taxpayer‟s driving
34 and registration records. The department shall allow thirty days
35 for payment of taxes before notifying the Department of Public
36 Safety Motor Vehicles to suspend the driver‟s license and vehicle
37 registration.
38 (B) Notwithstanding the provisions of Sections 56-1-460 and
39 56-9-500, a charge of driving under suspension when the
40 suspension is solely for failure to file and or pay a motor carrier
41 property tax or the reinstatement fee required for the property tax
42 does not require proof of financial responsibility. A person is not
43 subject to a custodial arrest solely for being under suspension
[1065] 25
1 pursuant to this section. Upon conviction of a violation of this
2 section, the taxpayer is subject to:
3 (1) for a first offense a fine not to exceed fifty dollars;
4 (2) for a second offense a fine not to exceed two hundred
5 fifty dollars; and
6 (3) for a third or subsequent offense under this Section, the
7 penalty is a fine not to exceed five hundred dollars or
8 imprisonment not to exceed thirty days, or both.
9 (C) Notwithstanding the provisions of subsections (A) and (B)
10 of this section or the provisions of Section 56-1-460, a charge of
11 driving under suspension issued solely as a result of this section
12 must be dismissed if the taxpayer provides proof on the taxpayer‟s
13 court date that the personal property taxes on the vehicle which
14 resulted in the charge being issued have been paid.
15 (D) Before the reinstatement of a driver‟s license or vehicle
16 registration suspended due to a violation of this section, a fee of
17 fifty dollars must be paid to the Department of Motor Vehicles.
18 The Department of Motor Vehicles may retain revenues generated
19 by payment of the reinstatement fees pursuant to this section for
20 use in defraying costs associated with suspension and
21 reinstatement actions pursuant to this section. Fees collected in
22 excess of actual departmental direct costs related to suspension and
23 reinstatement actions pursuant to this section must be deposited to
24 the credit of the general fund of the State at the end of each fiscal
25 year.”
26
27 SECTION 26. Section 12-43-335(C) of the 1976 Code, as last
28 amended by Act 69 of 2003, is further amended to read:
29
30 “(C) For the purpose of assessing property of railroads, private
31 carlines, airlines, water, power, telephone, cable television, sewer
32 and pipeline companies, as provided in Section 12-4-540(A), the
33 department shall follow the Sector 22 classification of the most
34 recent North American Industry Classification System Manual, as
35 follows:
36 (1) Sector 482;
37 (2) Sector 485, except subsectors 4851, 48521, 48531,
38 48541, 4859, and 488490;
39 (3) Sector 424, except subsectors 48411, 48422, 492, 493,
40 and 488490;
41 (4) Sector 483, except subsectors 48311, 483113, 483211,
42 and 483114;
43 (5) Sector 481, except subsectors 4812 and 48811;
[1065] 26
1 (6) Sector 486;
2 (7) Sector 57 51, except subsectors 51511 and 51512;
3 (8) Sector 22, except subsectors 56292, 562211, 562212,
4 562213, 562219, 488119, 56291, 56171, 562998, 22133, and
5 22131.”
6
7 SECTION 27.A. Section 12-54-155 of the 1976 Code is
8 amended to read:
9
10 “Section 12-54-155. (a)(A)(1) If there is an underpayment
11 attributable to either a substantial understatement of tax for any a
12 taxable period or a substantial valuation misstatement, there must
13 be added to the tax an amount equal to twenty-five percent of the
14 amount of any the underpayment attributable to the
15 understatement.
16 (2) This section does not apply to a portion of an
17 underpayment attributable to fraud on which a penalty is imposed
18 pursuant to Section 12-54-43(G).
19 (3) This section does not apply to a portion of an
20 underpayment on which a penalty for underpayment of property
21 tax on business-related property is imposed pursuant to Section
22 12-54-43(L).
23 (b)(1)(A)(B)(1)(a) For purposes of this section, there is a
24 substantial understatement of tax for any a taxable period if the
25 amount of the understatement for the taxable period exceeds the
26 greater of ten percent of the tax required to be shown on the return
27 for the taxable period or five thousand dollars.
28 (B)(b) In the case of a corporation other than an „S‟
29 Corporation or a personal holding company, (as defined in
30 IRCInternal Revenue Code Section 542), paragraph item (1) must
31 be applied by substituting „ten thousand dollars‟ for „five thousand
32 dollars‟.
33 (2)(A)(a) For purposes of paragraph item (1),
34 “Understatement” „understatement‟ means the excess of the
35 amount of the tax required to be shown on the return for the
36 taxable period over the amount of the tax imposed which is shown
37 on the return.
38 (B)(b) The amount of the understatement under
39 subparagraph (A) subitem (a) must be reduced by that portion of
40 the understatement which is attributable to (i) the tax treatment of
41 any an item: (i) by the taxpayer if there is or was substantial
42 authority for such that treatment, or (ii) any item with respect to
43 which the relevant facts affecting the item‟s tax treatment are
[1065] 27
1 adequately disclosed in the return or in a statement attached to the
2 return and there is a reasonable basis for the tax treatment of the
3 item by the taxpayer. For purposes of (B)(2)(b)(ii) a corporation
4 must not be treated as having a reasonable basis for its tax
5 treatment of an item attributable to a multiple-party financing
6 transaction if the treatment does not clearly reflect the income of
7 the corporation. For purposes of this paragraph, the words
8 „substantial authority‟ and „adequately disclosed‟ must be
9 interpreted in accordance with Treasury Regulation Section
10 1.6662-4 as of the date on which the Internal Revenue Code is
11 applied to state tax laws pursuant to Section 12-6-40.
12 (C)(i) In case of any item attributable to a tax shelter:
13 (I) subparagraph (B)(ii) does not apply; and
14 (II) subparagraph (B)(i) does not apply unless (in
15 addition to meeting the requirements of the subparagraph) the
16 taxpayer reasonably believed that the tax treatment of the item by
17 the taxpayer was more likely than not the proper treatment.
18 (c)(i) Subitem (b) does not apply to an item attributable to
19 a tax shelter.
20 (ii) For purposes of clause subsubitem (i), „tax shelter‟
21 means:
22 (I)(A) a partnership or other entity;
23 (II)(B) and an investment plan or arrangement, ; or
24 (III)(C) any other another plan or arrangement if the
25 principal purpose of the partnership, entity, plan, or arrangement is
26 the avoidance or evasion of income tax.
27 (C) For purposes of this section, there is a substantial valuation
28 misstatement if the:
29 (1) value of property or the adjusted basis of property
30 claimed on a return of tax imposed in Title 12 is two hundred
31 percent or more of the amount determined to be the correct amount
32 of the valuation or adjusted basis; or
33 (2)(a) price for property or services for use of property
34 claimed on the return in connection with a transaction between
35 persons described in Internal Revenue Code Section 482 is two
36 hundred percent or more, or fifty percent or less, of the amount
37 determined pursuant to Section 482 to be the correct amount of the
38 price; or
39 (b) net Internal Revenue Code Section 482 transfer price
40 adjustment for the taxable year exceeds the lesser of five million
41 dollars or ten percent of the taxpayer‟s South Carolina gross
42 receipts.
[1065] 28
1 (D)(1) A penalty must not be imposed pursuant to this section
2 with respect to a portion of an underpayment if it is shown that
3 there was a reasonable cause for the portion and that the taxpayer
4 acted in good faith with respect to the portion. For purposes of this
5 item, the words „reasonable cause‟ and „good faith‟ must be
6 interpreted in accordance with Treasury Regulation Section
7 1.6664-4 as of the date on which the Internal Revenue Code is
8 applied to state tax laws pursuant to Section 12-6-40.
9 (2) In the case of underpayment attributable to a substantial
10 valuation misstatement with respect to charitable deduction
11 property, item (1) does not apply if:
12 (a) the claimed value of the property was based on a
13 qualified appraisal made by a qualified appraiser; and
14 (b) in addition to obtaining the appraisal, the taxpayer
15 made a good faith investigation of the value of the contributed
16 property.
17 (3) For purposes of this subsection, the term „charitable
18 deduction property‟ means property contributed by the taxpayer in
19 a contribution for which a deduction was claimed under Internal
20 Revenue Code Section 170. For purposes of item (2) the term does
21 not include securities for which as of the date of the contribution,
22 market quotations are readily available on an established securities
23 market.
24 (E) As used in this section, „Internal Revenue Code‟ refers to
25 the Internal Revenue Code as applied to state tax laws pursuant to
26 Section 12-6-40.”
27
28 B. This section takes effect upon approval by the Governor and
29 applies for tax periods beginning after December 31, 2006.
30
31 SECTION 28. Section 12-60-30(10) of the 1976 Code, as last
32 amended by Act 69 of 2003, is further amended to read:
33
34 “(10) „Department determination‟ means the final
35 determination within the department from which an individual can
36 a person may request a contested case hearing before the
37 Administrative Law Judge Division Court.”
38
39 SECTION 29.A. Section 12-60-470(C) of the 1976 Code, as last
40 amended by Act 69 of 2003, is further amended to read:
41
42 “(C)(1)Only the taxpayer legally liable for the tax may file a
43 claim for refund or receive a refund, except that after the
[1065] 29
1 application of Section 12-60-490 against the person claiming or
2 receiving the refund:
3 (1)(a) a person who acts as a collector and remitter of state
4 taxes may claim a credit or refund of the tax collected, but only if
5 the person establishes that he has paid the tax in question to the
6 State; and
7 (a)(i) repaid the tax to the person from whom he
8 collected it; or
9 (b)(ii) obtained the written consent of the person from
10 whom he collected the tax to the allowance of the credit or refund;
11 (2)(b) a purchaser who has paid sales tax to a retailer for a
12 specific transaction may claim a refund if the retailer who paid the
13 sales tax to the State has assigned, in writing, the right to a refund
14 of that sales tax to the purchaser;
15 (3)(2) except as allowed in items (1) and (2) above, the
16 taxpayer legally liable for the tax may only assign a refund to
17 another person only after the taxpayer‟s claim is allowed, the
18 amount of the refund is finally decided, and the department has
19 approved the refund. The assignment must be in writing.
20 (3) A credit card or debit card issuer may claim a refund on
21 behalf of a foreign mission or a foreign diplomat for purchases
22 exempt from the sales and use tax imposed pursuant to Chapter 36
23 of this title as a result of treaties signed by the United States if the:
24 (i) credit card or debit card issuer is authorized by the United
25 States Department of State to participate in a diplomatic tax
26 exemption program allowing the card or card issuer to seek
27 refunds in accordance with procedures established by the United
28 States Department of State; (ii) sale to the foreign mission or
29 foreign diplomat qualifies as exempt under treaties signed by the
30 United States; (iii) Department of Revenue approves the refund;
31 and (iv) credit or debit card issuer credits the foreign mission‟s or
32 foreign diplomat‟s credit card or debit card account to reflect the
33 issuance of the refund.
34 (4) The provisions of Section 12-60-490 also apply to a
35 person claiming or receiving a refund pursuant to this section,
36 except for a credit card or debit card issuer seeking a sales and use
37 tax refund on behalf of a foreign mission or foreign diplomat
38 pursuant to subsection (C)(3) above. A refund may be issued only
39 after the application of Section 12-60-490 against the taxpayer
40 legally liable for the tax and, if applicable, against another person
41 claiming or receiving the refund pursuant to this subsection.
42 (5) In case of a claim for refund filed by, or a refund
43 assigned to, a person other than the taxpayer legally liable for the
[1065] 30
1 tax, the department may advise the person who filed the claim or
2 who was assigned the refund that, if applicable, the refund was
3 reduced or eliminated as a result of taxes owed by the taxpayer
4 legally liable for the tax and the application of Section 12-60-490
5 and the amount by which the refund was reduced by taxes owed by
6 the taxpayer legally liable for the tax.”
7
8 B. This section takes effect July 1, 2006.
9
10 SECTION 30. Sections 12-4-770 and 12-36-530 of the 1976
11 Code are hereby repealed
12
13 SECTION 31. Section 12-6-5590(E) and (F) of the 1976 Code,
14 as added by Act 145 of 2005, is amended to read:
15
16 “(E) A contribution of an otherwise “qualified conservation
17 contribution” as defined in Section 170(h) of the Internal Revenue
18 Code shall be deemed not to have the requisite donative intent if
19 the underlying property is used for, or associated with, the playing
20 of golf, or is planned to be so used or associated.
21 (F) The department shall examine the substance, rather than
22 merely the form, of the contribution and related and surrounding
23 transactions, and may use the step transaction, economic reality,
24 quid pro quo, personal benefit, and other judicially developed
25 doctrines in determining whether the requisite donative intent is
26 present.”
27
28 SECTION 32. Section 12-58-160(B) of the 1976 Code, as added
29 by Act 76 of 1995, is amended to read:
30
31 “(B) When the department releases a lien erroneously filed,
32 notice of that fact must be mailed to the taxpayer and upon the
33 request of the taxpayer, a copy of the release must be mailed
34 forwarded to the major credit reporting companies in the county
35 where the lien was filed . Submission of data under this section
36 does not constitute a violation of Section 30-2-50.
37
38 SECTION 33. The fourth paragraph of Section 12-37-250 of the
39 1976 Code is amended to read:
40
41 “When any person who was entitled to a homestead tax
42 exemption under this section dies or any person who was not
43 sixty-five years of age or older, blind, or disabled on or before
[1065] 31
1 December thirty-first preceding the application period, but was at
2 least sixty-five years of age, blind, or disabled at the time of his
3 death and was otherwise entitled dies and the surviving spouse is at
4 least fifty years of age and acquires complete fee simple title or a
5 life estate to the dwelling place within nine months after the death
6 of the spouse, the dwelling place is exempt from real property
7 taxes to the same extent and obtained in accordance with the same
8 procedures as are provided for in this section for an exemption
9 from real property taxes so long as the spouse remains unmarried
10 and the dwelling place is utilized as the permanent home and legal
11 residence of the spouse. A surviving spouse who disposes of the
12 dwelling place and acquires another residence in this State for use
13 as a dwelling place may apply for and receive the exemption on
14 the newly acquired dwelling place. The spouse shall inform the
15 county auditor of the change in address of the dwelling place.”
16
17 SECTION 34. Chapter 37, Title 12 of the 1976 Code is amended
18 by adding:
19
20 “Section 12-37-714. In addition to any other provisions of law
21 subjecting boats and boat motors to property tax in this State:
22 (1) A boat, including its motor if separately taxed, used in
23 interstate commerce having a tax situs in this State and at least one
24 other state is subject to property tax in this State. The value of
25 such a boat must be determined based on the fair market value of
26 the boat multiplied by a fraction representing the number of days
27 present in this State. The fraction is determined by dividing the
28 number of days the boat was present in this State by three hundred
29 and sixty-five days. A boat used in interstate commerce must be
30 physically present in this State for thirty days in the aggregate in a
31 property tax year to become subject to ad valorem taxation.
32 (2) A boat, including its motor if the motor is separately taxed,
33 which is not currently taxed in this State and is not used
34 exclusively in interstate commerce, is subject to property tax in
35 this State if it is present within this State for sixty consecutive days
36 or for ninety days in the aggregate in a property tax year. Upon
37 written request by a tax official, the owner must provide
38 documentation or logs relating to the whereabouts of the boat in
39 question. Failure to produce requested documents creates a
40 rebuttable presumption that the boat in question is taxable within
41 this State.”
42
[1065] 32
1 SECTION 35. Section 12-51-150 of the 1976 Code is amended
2 to read:
3
4 “Section 12-51-150. In the case that the official in charge of the
5 tax sale discovers before a tax title has passed, the failure of any
6 action required to be properly performed, the official may void the
7 tax sale and refund the amount paid, and the actual interest earned,
8 to the successful bidder. If the full amount of the taxes,
9 assessments, penalties, and costs have not been paid, the property
10 must be brought to tax sale as soon as practicable.”
11
12 SECTION 36.A. Article 25, Chapter 6, Title 12 of the 1976
13 Code is amended by adding:
14
15 “Section 12-6-3600. (A) For taxable years beginning after
16 2006, and before 2014, there is allowed a credit against the tax
17 imposed pursuant to this chapter for any ethanol facility which is
18 in production at the rate of at least twenty-five percent of its name
19 plate design capacity for the production of ethanol, before
20 denaturing, on or before December 31, 2009. The facility must be
21 placed in use after 2006. The credit equals twenty cents a gallon
22 of ethanol produced and is allowed for sixty months beginning
23 with the first month for which the facility is eligible to receive the
24 credit and ending not later than December 31, 2014. The credit
25 only may be claimed if the ethanol facility maintains an average
26 production rate of at least twenty-five percent of its name plate
27 design capacity for at least six months after the first month for
28 which it is eligible to receive the credit.
29 (B) As used in this section:
30 (1) „Ethanol facility‟ means a plant or facility primarily
31 engaged in the production of ethanol or ethyl alcohol
32 derived from grain components, coproducts, or byproducts; and
33 (2) „Name plate design capacity‟ means the original
34 designed capacity of an ethanol facility. Capacity may be
35 specified as bushels of grain ground or gallons of ethanol produced
36 a year.
37 (C) An ethanol facility eligible for a tax credit under subsection
38 (A) of this section also shall receive a credit against the tax
39 imposed pursuant to this chapter the amount of twenty cents a
40 gallon of ethanol produced in excess of the original name plate
41 design capacity which results from expansion of the facility
42 completed after 2006 and before 2009. The tax credit is allowed
43 for sixty months beginning with the first month for which
[1065] 33
1 production from the expanded facility is eligible to receive the tax
2 credit and ending not later than 2014.
3 (D)(1) Pursuant to this chapter, beginning January 1, 2014, an
4 ethanol facility must receive a credit against the tax imposed in the
5 amount of seven and one-half cents a gallon of ethanol, before
6 denaturing, for new production for a period not to exceed thirty-six
7 consecutive months.
8 (2) For purposes of this subsection, „new production‟ means
9 production which results from a new facility, a facility which has
10 not received credits before 2014, or the expansion of the capacity
11 of an existing facility by at least two million gallons first placed
12 into service after 2014, as certified by the design engineer of the
13 facility to the Department of Revenue.
14 (3) For expansion of the capacity of an existing facility,
15 „new production‟ means annual production in excess of twelve
16 times the monthly average of the highest three months of ethanol
17 production at an ethanol facility during the twenty-four-month
18 period immediately preceding certification of the facility by the
19 design engineer.
20 (4) Credits are not allowed pursuant to this subsection for
21 expansion of the capacity of an existing facility until production is
22 in excess of twelve times the three-month average amount
23 determined pursuant to this subsection during any
24 twelve-consecutive-month period beginning no sooner than
25 January 1, 2014.
26 (5) The amount of a credit granted pursuant to this section
27 based on new production must be approved by the Department of
28 Revenue based on the ethanol production records as may be
29 necessary to reasonably determine the level of new production.
30 (E)(1) The credits described in this section are allowed only for
31 ethanol produced at a plant in this State at which all fermentation,
32 distillation, and dehydration takes place. Credit is not allowed for
33 ethanol produced or sold for use in the production of distilled
34 spirits.
35 (2) Not more than twenty-five million gallons of ethanol
36 produced annually at an ethanol facility is eligible for the credits in
37 subsections (A) and (C) of this section, and the credits only may be
38 claimed by a producer for the periods specified in subsections (A)
39 and (C) of this section.
40 (3) Not more than ten million gallons of ethanol produced
41 during a twelve-consecutive-month period at an ethanol facility is
42 eligible for the credit described in subsection (D) of this section,
[1065] 34
1 and the credit only may be claimed by a producer for the periods
2 specified in subsection (D) of this section.
3 (4) Not more than one hundred twenty-five million gallons
4 of ethanol produced at an ethanol facility by the end of the
5 sixty-month period set for in subsection (A) or (C) of this section
6 is eligible for the credit under the subsection. An ethanol facility
7 which receives a credit for ethanol produced under subsection (A)
8 or (C) of this section may not receive a credit pursuant to
9 subsection (D) of this section until its eligibility to receive a credit
10 under subsection (A) or (C) of this section has been completed.
11 (E) The Department of Revenue shall prescribe an application
12 form and procedures for claiming credits under this section.
13 (F) For purposes of ascertaining the correctness of any
14 application for claiming a credit allowed pursuant to this section,
15 the Department of Revenue may examine or cause to have
16 examined, by any agent or representative designated for that
17 purpose, any books, papers, records, or memoranda bearing upon
18 these matters.”
19
20 B.1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended
21 by adding:
22
23 “Section 12-6-3610. (A) As used in this section, renewal fuel
24 means liquid nonpetroleum based fuels that can be placed in motor
25 vehicle fuel tanks and used as a fuel in a highway vehicle. It
26 includes all forms of fuel commonly or commercially known or
27 sold as biodiesel and ethanol.
28 (B) A taxpayer that constructs and installs and places in service
29 in this State a qualified commercial facility for dispensing
30 renewable fuel is allowed a credit equal to twenty-five percent of
31 the cost to the taxpayer against the taxpayer‟s liability for a tax
32 imposed pursuant to this chapter constructing and installing the
33 part of the dispensing facility, including pumps, storage tanks, and
34 related equipment, that is directly and exclusively used for
35 dispensing or storing renewable fuel. A facility is qualified if the
36 equipment used to store or dispense renewable fuel is labeled for
37 this purpose and clearly identified as associated with renewable
38 fuel. The entire credit may not be taken for the taxable year in
39 which the facility is placed in service but must be taken in three
40 equal annual installments beginning with the taxable year in which
41 the facility is placed in service. If, in one of the years in which the
42 installment of a credit accrues, the portion of the facility directly
43 and exclusively used for dispensing or storing renewable fuel is
[1065] 35
1 disposed of or taken out of service, the credit expires and the
2 taxpayer may not take any remaining installment of the credit. The
3 unused portion of an unexpired credit may be carried forward for
4 not more than ten succeeding taxable years.
5 (C) A taxpayer that constructs and places in service in this State
6 a commercial facility for processing renewable fuel is allowed a
7 credit equal to twenty-five percent of the cost to the taxpayer of
8 constructing and equipping the facility. The entire credit may not
9 be taken for the taxable year in which the facility is placed in
10 service but must be taken in seven equal annual installments
11 beginning with the taxable year in which the facility is placed in
12 service. If, in one of the years in which the installment of a credit
13 accrues, the facility with respect to which the credit was claimed is
14 disposed of or taken out of service, the credit expires and the
15 taxpayer may not take any remaining installment of the credit. The
16 unused portion of an unexpired credit may be carried forward for
17 not more than ten succeeding taxable years.
18 (D) A taxpayer that claims any other credit allowed under this
19 article with respect to the costs of constructing and installing a
20 facility may not take the credit allowed in this section with respect
21 to the same costs.”
22
23 B.2. Section 12-6-3610 of the 1976 Code as added by this section
24 is repealed effective for facilities placed in service after 2011.
25
26 B.3. Notwithstanding the general effective date of this act, this
27 section takes effect upon approval of this act by the Governor and
28 applies for facilities placed in service after 2006.
29
30 C. Article 7, Chapter 28, Title 12 of the 1976 Code is amended
31 by adding:
32
33 “Section 12-28-745. (A) Renewable fuel exempt from tax
34 pursuant to Section 12-28-710(A)(17), whether blended with other
35 fuels or used in its pure state, is fully exempt from taxation and is
36 not subject to the refund procedures contained in this article. If
37 blended with other nonexempt motor fuels, the nonexempt portion
38 of the blended fuel must be taxed as prescribed by law.
39 (B) The sale of fuels exempt from tax under Section
40 12-28-710(A)(17) must be documented and reported to the
41 department by the supplier of renewable fuel according to
42 procedures prescribed by the department.”
43
[1065] 36
1 D.1. Section 12-28-110(39) of the 1976 Code is amended to read:
2
3 “(39) „Motor fuel‟ means gasoline, diesel fuel, renewable fuel,
4 and blended fuel.”
5 D.2. Section 12-28-110 of the 1976 Code is amended by adding
6 at the end:
7 “(69) „Biodiesel‟ means vegetable or animal based fuels used
8 as a substitute for diesel fuel.
9 (70) „Renewable fuel‟ means liquid nonpetroleum based fuels
10 that can be placed in vehicle fuel tanks and used as a fuel in a
11 highway vehicle. It includes all forms of fuel commonly or
12 commercially known or sold as biodiesel and ethanol.”
13
14 E. Section 12-28-710(A) of the 1976 Code is amended by adding
15 a new item at the end to read:
16
17 “(17) renewable fuel sold from July 1, 2006 through June 30,
18 2011.”
19
20 F. Section 12-28-990(A) of the 1976 Code is amended to read:
21
22 “(A) Each person blending materials on which the user fee has
23 not been paid including blendstocks, additives, and fuel grade
24 ethanol renewable fuels with motor fuels subject to the user fee as
25 to which the user fee has been paid or accrued shall remit the user
26 fee imposed by this chapter.”
27
28 G. Except where otherwise provided, this SECTION takes effect
29 upon approval by the Governor.
30
31 SECTION 37.A. Article 25, Chapter 6, Title 12 of the 1976
32 Code is amended by adding:
33
34 “Section 12-6-3587. (A) There is allowed as a tax credit
35 against the income tax liability of a taxpayer imposed by this
36 Chapter an amount equal to twenty-five percent of the costs
37 incurred by the taxpayer in the installation of a solar energy
38 heating or cooling system, or both, in a building owned by the
39 taxpayer. The tax credit allowed by this section must not be
40 claimed before the completion of the installation, and must be
41 claimed for the year that the costs are incurred. The amount of the
42 credit may not exceed three thousand five hundred dollars or fifty
43 percent of the taxpayer‟s tax liability for that taxable year,
[1065] 37
1 whichever is less. If the amount of the credit exceeds three
2 thousand five hundred dollars, the taxpayer may carry forward the
3 excess for up to ten years.
4 (B) „System‟ includes all controls, tanks, pumps, heat
5 exchangers, and other equipment used directly and exclusively for
6 the conversion of solar energy for heating or cooling. The term
7 „system‟ does not include any land or structural elements of the
8 building such as walls and roofs or other equipment ordinarily
9 contained in the structure.”
10
11 B. This SECTION takes effect upon approval by the Governor and
12 applies to installation costs incurred in taxable years beginning on
13 or after January 1, 2006.
14
15 SECTION 38. Article 25, Chapter 6, Title 12 of the 1976 Code
16 is amended by adding:
17
18 “Section 12-6-3620. (A) For taxable years beginning after
19 2006, there is allowed a tax credit against the tax imposed pursuant
20 to Section 12-6-530 for twenty-five percent of the costs incurred
21 by a taxpayer for use of methane gas taken from a landfill to
22 provide power for a manufacturing facility.
23 (B) The tax credit allowed by this section may not exceed fifty
24 percent of the liability of the taxpayer for the tax imposed pursuant
25 to Section 12-6-530. Unused credits may be carried forward for
26 ten years.
27 (C) For purposes of this section, manufacturing facility is as
28 defined in Section 12-6-3360(M)(5).”
29
30 SECTION 39.A. Section 12-37-224 of the 1976 Code, as added
31 by Act 114 of 1999, is amended to read:
32
33 “Section 12-37-224. A motor home on which the interest
34 portion of indebtedness is deductible pursuant to the Internal
35 Revenue Code as an interest expense on a qualified primary or
36 second residence is also a primary or second residence for
37 purposes of ad valorem property taxation in this State and is
38 considered real property rather than personal property for property
39 tax purposes. By ordinance, the governing body of a county may
40 extend the provisions of this section to a boat that meets the same
41 qualifications required for motor homes pursuant to this section.”
42
[1065] 38
1 B. Article 5, Chapter 37, Title 12 of the 1976 Code is amended by
2 adding:
3
4 “Section 12-37-712. In addition to any other provisions of law
5 subjecting boats and boat motors to property tax in this State:
6 (1) A boat, including its motor if separately taxed, used in
7 interstate commerce having a tax situs in this State and at least one
8 other state is subject to property tax in this State. The value of
9 such a boat must be determined based on the fair market value of
10 the boat multiplied by a fraction representing the number of days
11 present in this State. The fraction is determined by dividing the
12 number of days the boat was present in this State by three hundred
13 and sixty-five days. A boat used in interstate commerce must be
14 physically present in this State for thirty days in the aggregate in a
15 property tax year to become subject to ad valorem taxation.
16 (2) A boat, including its motor if the motor is separately
17 taxed, which is not currently taxed in this State and is not used
18 exclusively in interstate commerce, is subject to property tax in
19 this State if it is present within this State for sixty consecutive days
20 or on ninety days in the aggregate in a property tax year. Upon
21 written request by a tax official, the owner must provide
22 documentation or logs relating to the whereabouts of the boat in
23 question. Failure to produce requested documents creates a
24 rebuttable presumption that the boat in question is taxable within
25 this State.”
26
27 C. This SECTION takes effect upon approval by the Governor and
28 applies for property tax years beginning after 2005.
29
30 SECTION 40. Section 12-37-712 of the 1976 Code, as added by
31 Act 145 of 2005, is amended to read:
32
33 “Section 12-37-712. A marina must provide immediate access
34 to its business records and premises to city, county, and state tax
35 authority employees for the purpose of making a property tax
36 assessment. For the purposes of this section, „marina‟ means a
37 facility that provides mooring or dry storage for watercraft on a
38 leased or rental basis, and „business records‟ means only the name
39 and billing address of the person leasing or renting space for a boat
40 in a marina, as well as the make, model, and year, if available.”
41
42 SECTION 41. A.Article 1, Chapter 37, Title 12 of the 1976
43 Code is amended by adding:
[1065] 39
1 “Section 12-37-140. With respect to millage imposed to service
2 general obligation debt incurred by a political subdivision or a
3 school district of this State and the calculation of the limits on
4 bonded indebtedness imposed on political subdivisions and school
5 districts pursuant to Article X, Sections 14 and 15 of the
6 constitution of this State, when a complete or partial
7 successor-in-interest to, or other transferee of, the political
8 subdivision or school district or other associate of any kind of a
9 political subdivision or school district, undertakes all or a portion
10 of the operation or assumes all or a portion of a duty of the
11 political subdivision or school and in so doing incurs debt, that
12 debt is deemed general obligation debt of the political subdivision
13 or school district.”
14
15 B. The provisions of this section apply with regard to all transfers
16 made after June 30, 2006, to which Section 12-37-140 of the 1976
17 Code, as added by this section, applies.
18
19 SECTION. 42. A.Section 4-12-30(B)(1) of the 1976 Code, as last
20 amended by Act 69 of 2003, is further amended to read:
21
22 “(1) Title to the property must be held by the county. In the
23 case of a project located in an industrial development park, as
24 defined in Section 4-1-170, title may be held by more than one
25 county, if each county is a member of the industrial development
26 park. Any real property transferred to the county through a lease
27 agreement must include a legal description and plat of the real
28 property. Property titled in the name of a county pursuant to this
29 section is considered privately-owned for purposes of Section
30 58-3-240.”
31
32 B. Section 4-29-67(B)(1) of the 1976 Code, as last amended by Act
33 69 of 2003, is further amended to read:
34
35 “(1) Title to the property must be held by the county. In the case
36 of a project located in an industrial development park as defined in
37 Section 4-1-170, title may be held by more than one county, if
38 each county is a member of the industrial development park. Real
39 property transferred to the county through a lease agreement must
40 include a legal description and plat of the real property. Property
41 titled in the name of a county pursuant to this section is considered
42 privately-owned for purposes of Section 58-3-240.”
43
[1065] 40
1 SECTION 43. Except as otherwise provided elsewhere in this
2 act, this act takes effect upon approval of the Governor.
3 ----XX----
4
[1065] 41