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718

VIEWS: 2 PAGES: 71

									BIL:     718
TYP:     General Bill GB
INB:     Senate
IND:     20010529
PSP:     Leatherman
SPO:     Leatherman
DDN:     l:\council\bills\gjk\20740htc01.doc
CBN:     4052
RBY:     House
LAD:     20010621
SUB:     Fee in lieu of county property taxes, industrial development projects,
         assessments; Businesses, Political Subdivisions



HST:

Body     Date       Action Description                        Com     Leg Involved
______   ________   _______________________________________   _______ ____________
House    20020115   Continued
House    20020109   Debate adjourned on Senate
                    amendments until Tuesday, 20020115
Senate   20010621   House amendments amended,
                    returned to House with amendment
House    20010621   Read third time, returned to
                    Senate with amendment
House    20010620   Debate adjourned until
                    Thursday, 20010621
House    20010607   Amended, read second time
House    20010607   Debate adjourned
House    20010606   Recalled from Committee                   30 HWM
House    20010605   Introduced, read first time,              30 HWM
                    referred to Committee
------   20010605   Companion Bill No. 4052
Senate   20010601   Read third time, sent to House
Senate   20010531   Read second time, unanimous consent
                    for third reading on Friday,
                    20010601
Senate   20010530   Committee report: Favorable               06 SF
Senate   20010529   Introduced, read first time,              06 SF
                    referred to Committee



Versions of This Bill


Revised on 20010530
Revised on 20010606
Revised on 20010607
Revised on 20010621


TXT:
 1   Indicates Matter Stricken
 2   Indicates New Matter
 3
 4   HOUSE AMENDMENTS AMENDED
 5   June 21, 2001
 6
 7                                                     S. 718
 8
 9                  Introduced by Senator Leatherman
10
11 S. Printed 6/21/01--S.
12 Read the first time June 5, 2001.
13
14




     [718-1]
 1
 2
 3
 4
 5
 6
 7
 8
 9                                A BILL
10
11   TO AMEND SECTION 4-29-67, AS AMENDED, CODE OF
12   LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
13   FEE IN LIEU OF PROPERTY TAX ALLOWED CERTAIN
14   DEVELOPMENT PROJECTS, SO AS TO PROVIDE
15   ADDITIONAL TIME FOR THE REQUIRED NEW
16   INVESTMENT THRESHOLDS TO BE MET IN THE CASE OF
17   A BUSINESS ELIGIBLE FOR THE FOUR PERCENT
18   ASSESSMENT RATIO IN THE FEE AGREEMENT.
19     Amend Title To Conform
20
21   Be it enacted by the General Assembly of the State of South
22   Carolina:
23
24   SECTION 1. Section 12-24-40 of the 1976 Code is amended by
25   adding a new item (15) to read:
26
27      “(15) transferring title to facilities for transmitting electricity
28   that is transferred, sold, or exchanged by electrical utilities,
29   municipalities, electric cooperatives, or political subdivisions to a
30   limited liability company which is subject to regulation under the
31   Federal Power Act (16 U.S.C. Section 791(a)) and which is formed
32   to operate or to take functional control of electric transmission
33   assets as defined in the Federal Power Act;”
34
35   SECTION 2. Section 12-36-2120 of the 1976 Code is amended
36   by adding a new item (59) to read:
37
38     “(59) facilities for transmitting electricity that is transferred,
39   sold, or exchanged by electrical utilities, municipalities, electric
40   cooperatives, or political subdivisions to a limited liability
41   company which is subject to regulation under the Federal Power
42   Act (16 U.S.C. Section 791(a)) and which is formed to operate or

     [718]                             1
 1   to take functional control of electric transmission assets as defined
 2   in the Federal Power Act;”
 3
 4   SECTION 3. Section 12-6-3410(J) of the 1976 Code is amended
 5   by adding a new item to read:
 6
 7      “(9) ‘corporation’, ‘corporate’, ‘company’, and ‘taxpayer’ for
 8   purposes of this section also include a limited liability company
 9   which is subject to regulation under the Federal Power Act (16
10   U.S.C. Section 791(a)) and which is formed to operate or to take
11   functional control of electric transmission assets as defined in the
12   Federal Power Act regardless of whether the limited liability
13   company is treated as a partnership or as a corporation for South
14   Carolina income tax purposes. If treated as a partnership, a limited
15   liability company that qualifies for a credit under this section
16   passes the credit through to its members in proportion to their
17   interests in the limited liability company. Each member’s share of
18   the credit is nonrefundable but is allowed as a credit against any
19   tax under Section 12-6-530 or Section 12-20-50. Each member
20   may carry any unused credit forward as provided in subsection (F).
21   The limited liability company may not carry forward a credit that
22   passes through to its members.”
23
24   SECTION 4. Chapter 10, Title 12 of the 1976 Code is amended
25   by adding:
26
27      “Section 12-10-95. (A) Subject to the conditions in this section,
28   a business engaged in manufacturing or processing operations or
29   technology intensive activities at a manufacturing, processing, or
30   technology intensive facility as defined in Section 12-6-3360(M)
31   and that meets the requirements of Section 12-10-50(B) may
32   negotiate with the council to claim as a credit against withholding
33   five hundred dollars a year for the retraining of a production or
34   technology employee if retraining is necessary for the qualifying
35   business to remain competitive or to introduce new technologies.
36   In addition to the yearly limits, the retraining credit claimed
37   against withholding may not exceed two thousand dollars over five
38   consecutive years for each retrained production or technology
39   employee.
40      (B) A qualifying business is eligible to claim as a retraining
41   credit against withholding the lower amount of the following:
42        (1) the retraining credit for the applicable withholding period
43   as determined by subsection (A); or

     [718]                             2
 1        (2) withholding paid to the State for the applicable
 2   withholding period.
 3      (C) All retraining must be approved by a technical college
 4   under the jurisdiction of the State Board for Technical and
 5   Comprehensive Education. A qualifying business must submit a
 6   retraining program for approval by the appropriate technical
 7   college. The approving technical college may provide the
 8   retraining itself, subject to the retraining program, or contract with
 9   other training entities to provide the required retraining.
10      (D) Travel and lodging expenses and wages for retraining
11   participants are not reimbursable.
12      (E) The qualifying business must match on a dollar-for-dollar
13   basis the amount claimed as a credit against withholding for
14   retraining. When applicable, the total amount of retraining credits
15   and matching funds must be paid to the technical college that
16   provides the training. All training costs, including costs in excess
17   of the retraining credits and matching funds, are the responsibility
18   of the business.
19      (F) A qualifying business claiming retraining credits pursuant
20   to this section is subject to the reporting and audit requirements in
21   Section 12-10-80(A).
22      (G) A qualifying business may not claim retraining credit for
23   training provided to the following production or technology
24   employees:
25        (a) temporary or contract employees; and
26        (b) employees who are subject to a revitalization agreement,
27   including a preliminary revitalization agreement.”
28
29   SECTION 5. Section 12-2-25 of the 1976 Code is amended to
30   read:
31
32      “Section 12-2-25. (A) As used in this title and unless
33   otherwise required by the context:
34        (1) ‘partnership’ includes a limited liability company taxed
35   for South Carolina income tax purposes as a partnership.;
36        (2) ‘partner’ includes any a member of a limited liability
37   company taxed for South Carolina income tax purposes as a
38   partnership.;
39        (3) ‘corporation’ includes a limited liability company or
40   professional or other association taxed for South Carolina income
41   tax purposes as a corporation.; and



     [718]                             3
 1         (4) ‘shareholder’ includes any a member of a limited
 2   liability company taxed for South Carolina income tax purposes as
 3   a corporation.
 4      (B) Single-member limited liability companies which are not
 5   taxed for South Carolina income tax purposes as a corporation, and
 6   grantor trusts, to the extent they are grantor trusts, will be ignored
 7   for all South Carolina tax purposes. For South Carolina tax
 8   purposes:
 9         (1) a single-member limited liability company, which is not
10   taxed for South Carolina income tax purposes as a corporation, is
11   not regarded as an entity separate from its owner;
12         (2) a ‘qualified subchapter ‘S’ subsidiary’, as defined in
13   Section 1361(b)(3)(B) of the Internal Revenue Code, is not
14   regarded as an entity separate from the ‘S’ corporation that owns
15   the stock of the qualified subchapter ‘S’ subsidiary; and
16         (3) a grantor trust, to the extent that it is a grantor trust, is
17   not regarded as an entity separate from its grantor.
18      (C) For purposes of this section, the Internal Revenue Code
19   reference is as provided in Section 12-6-40(A).”
20
21   SECTION 6. Section 12-6-40 of the 1976 Code, as last amended
22   by Section 7, Part II, Act 387 of 2000, is further amended to read:
23
24      “Section 12-6-40. (A)(1) ‘Internal Revenue Code’ means the
25   Internal Revenue Code of 1986 as amended through December 31,
26   1999 2000, and includes the effective date provisions contained
27   therein in it.
28         (2)(a) For purposes of this title, ‘Internal Revenue Code’ is
29   deemed to contain all changes necessary for the State to administer
30   its provisions. Unless a different meaning is required:
31              ( i) ‘Secretary’, ‘Secretary of the Treasury’, or
32   ‘Commissioner’ means the Director of the Department of Revenue.
33              ( ii) ‘Internal Revenue Service’ means the department.
34              (iii) ‘Return’ means the appropriate state return.
35              ( iv) ‘Income’ includes the modifications required by
36   Article 9 of this chapter and allocation and apportionment as
37   provided in Article 17 of this chapter.
38      Other terms in the Internal Revenue Code must be given the
39   meanings necessary to effectuate this item.
40           (b) For purposes of Internal Revenue Code Sections 67
41   (Two Percent Floor on Miscellaneous Itemized Deductions), 71
42   (Alimony and           Separate    Maintenance      Payments),    85
43   (Unemployment Compensation), 165 (Losses), 170 (Charitable

     [718]                              4
 1   Contributions), 213 (Medical and Dental Expenses), 219
 2   (Retirement Savings), 469 (Passive Activity Losses and Credits
 3   Limited), and 631 (Gain or Loss in the Case of Timber, Coal, or
 4   Domestic Iron Ore), ‘Adjusted Gross Income’ for South Carolina
 5   income tax purposes means a taxpayer’s adjusted gross income for
 6   federal income tax purposes without regard to the adjustments
 7   required by Article 9 and Article 17 of this chapter.
 8           (c) For a taxpayer utilizing the provisions of Internal
 9   Revenue Code Section 1341 (Computation of Tax where Taxpayer
10   Restores Substantial Amount Held under Claim of Right) for
11   South Carolina tax purposes the phrase ‘taxes imposed by this
12   chapter’ means taxes imposed by Chapter 6 of this title.
13           (d) The terms defined in Internal Revenue Code Sections
14   7701, 7702, and 7703 have the same meaning for South Carolina
15   income tax purposes, unless a different meaning is clearly
16   required.
17      (B) All elections made for federal income tax purposes in
18   connection with Internal Revenue Code Sections adopted by this
19   State automatically apply for South Carolina income tax purposes
20   unless otherwise provided. A taxpayer may not make an election
21   solely for South Carolina income tax purposes except for elections
22   not applicable for federal purposes, including filing a combined or
23   composite return as provided in Sections 12-6-5020 and
24   12-6-5030, respectively.
25      (C) For purposes of Internal Revenue Code Sections 67 (Two
26   Percent Floor on Miscellaneous Itemized Deductions), 71
27   (Alimony and         Separate     Maintenance      Payments),   85
28   (Unemployment Compensation), 165 (Losses), 170 (Charitable
29   Contributions), 213 (Medical and Dental Expenses), 219
30   (Retirement Savings), 469 (Passive Activity Losses and Credits
31   Limited), and 631 (Gain or Loss in the Case of Timber, Coal, or
32   Domestic Iron Ore), “Adjusted Gross Income” for South Carolina
33   income tax purposes means a taxpayer’s adjusted gross income for
34   federal income tax purposes without regard to the adjustments
35   required by Article 9 and Article 17 of this chapter.
36      (D) For a taxpayer utilizing the provisions of Internal Revenue
37   Code Section 1341 (Computation of Tax where Taxpayer Restores
38   Substantial Amount Held under Claim of Right) for South
39   Carolina tax purposes the phrase “taxes imposed by this chapter”
40   means taxes imposed by Chapter 6 of this title.
41      (E) The terms defined in Internal Revenue Code Sections 7701,
42   7702, and 7703 have the same meaning for South Carolina income
43   tax purposes, unless a different meaning is clearly required.

     [718]                            5
 1     (F)(C) If a taxpayer complies with the provisions of Internal
 2   Revenue Code Section 367 (Foreign Corporations), it is not
 3   necessary for the taxpayer to obtain the approval of the
 4   department. The taxpayer shall attach a copy of the approval
 5   received from the Internal Revenue Service to its next South
 6   Carolina income tax return.”
 7
 8   SECTION 7. Section 12-6-50(11) of the 1976 Code is amended to
 9   read:
10
11     “(11) Sections 861 through 908, 912, and 931 through 940, and
12   944 through 989 relating to the taxation of foreign income;”
13
14   SECTION 8. Section 12-6-2210(A) of the 1976 Code is amended
15   to read:
16
17      “(A) If the entire business of a taxpayer is transacted or
18   conducted within this State, the income tax as provided in this
19   chapter is measured by the entire net income of the taxpayer for
20   the taxable year. The entire business of the taxpayer is transacted
21   and or conducted within the State if the taxpayer is not subject to a
22   net income tax or a franchise tax measured by net income in
23   another state, the District of Columbia, a territory or possession of
24   the United States, or a foreign country, or and would not be subject
25   to a net income tax in another such taxing jurisdiction if the other
26   taxing jurisdiction adopted the net income tax laws of this State.”
27
28   SECTION 9. Section 12-6-3330(C)(2) of the 1976 Code is
29   amended to read:
30
31      “(2) The term ‘South Carolina earned income’ means income
32   which that is earned income within the meaning of Internal
33   Revenue Code Section 911(d)(2) or 401(c)(2)(C) which and is
34   taxable in this State, except that:
35        (a) it does not include an amount:
36           ( i) received from a retirement plan or an annuity;
37           ( ii) paid or distributed from an individual retirement plan
38   as defined in Internal Revenue Code Section 7701(a)(37);
39           (iii) received as deferred compensation; or
40           ( iv) received for services performed by an individual
41   employed by his spouse within the meaning of Internal Revenue
42   Code Section 3121(b)(3)(A)(B) as amended through December 31,
43   1987; and

     [718]                             6
 1        (b) Internal Revenue Code Section 911(d)(2)(B) must be
 2   applied without regard to the phrase ‘not in excess of thirty percent
 3   of his share of net profits of such trade or business’.”
 4
 5   SECTION 10. Section 12-6-3410(J)(1) and (4) are amended to
 6   read:
 7
 8      “(1) ‘Corporate headquarters’ means the facility or portion of a
 9   facility where corporate staff employees are physically employed,
10   and where the majority of the company’s financial, personnel,
11   legal, planning, information technology, or other headquarters
12   related functions are handled either on a regional or national basis.
13   A corporate headquarters must be a regional corporate
14   headquarters or a national corporate headquarters as defined
15   below:
16         (a) National corporate headquarters must be the sole
17   corporate headquarters in the nation and handle headquarters
18   related functions on a national basis. A national headquarters shall
19   be deemed to handle headquarters related functions on a national
20   basis from this State if the corporation has a facility in this State
21   from which the corporation engages in interstate commerce by
22   providing goods or services for customers outside of this State in
23   return for compensation.
24         (b) Regional corporate headquarters must be the sole
25   corporate headquarters within the region and must handle
26   headquarters related functions on a regional basis. For purposes of
27   this section, ‘region’ or ‘regional’ means a geographic area
28   comprised of either:
29            ( i) at least five states, including this State, or
30            (ii) two or more states, including this State, if the entire
31   business operations of the corporation are performed within fewer
32   than five states.
33      (4) ‘Headquarters related functions and services’ are those
34   functions involving financial, personnel, administrative, legal,
35   planning, information technology, or similar business functions.”
36
37   SECTION 11. Section 12-6-3500 of the 1976 Code is amended
38   to read:
39
40     “Section 12-6-3500. If the right to receive retirement income
41   by a taxpayer allowed the deduction pursuant to Section 12-6-1170
42   was earned by the taxpayer while residing in another state which
43   imposed state income tax on the employee’s contributions, a credit

     [718]                             7
 1   is allowed against the taxpayer’s South Carolina income tax
 2   liability in an amount sufficient to offset the taxes paid the other
 3   state. This credit must be claimed over the taxpayer’s lifetime. The
 4   department shall prescribe the amount of the annual credit based
 5   on the taxpayer’s life expectancy at the time of the election made
 6   pursuant to the taxpayer first claims the retirement income
 7   deduction pursuant to Section 12-6-1170, and may require the
 8   documentation it determines necessary to verify the amount of
 9   income tax paid the other state on the contributions. Regardless of
10   the tax rates applicable on the contributions in the other state, the
11   total of the credit allowed may not exceed an amount determined
12   by multiplying the contributions taxed in each year by the marginal
13   South Carolina individual income tax rate for that year.”
14
15   SECTION 12. Section 12-6-3520 of the 1976 Code is amended
16   to read:
17
18      “Section 12-6-3520. (A) There shall be is allowed as a tax
19   credit against the income tax liability of a taxpayer an amount
20   equal to fifty percent of the costs incurred by the taxpayer for
21   habitat management or construction and maintenance of
22   improvements on real property that are made to land as described
23   in Section 50-15-55(A) and which meets meet the requirements of
24   regulations promulgated by the Department of Natural Resources
25   pursuant to Section 50-15-55(A). For purposes of this section,
26   ‘costs incurred’ means those monies spent or revenue foregone for
27   habitat management or construction and maintenance, but does not
28   include revenue foregone as increases in land values or speculative
29   costs related to development.
30      (B) All costs must be incurred on land that has been designated
31   as a certified management area for endangered species enumerated
32   in Section 50-15-40 or for nongame and wildlife species
33   determined to be in need management under Section 50-15-30.
34      (C) The tax credit allowed by this section must be claimed in
35   the year that such the costs, as provided in subsection (B), are
36   incurred as provided for in subsection (B). The This credit
37   established by this section taken in one year may not exceed fifty
38   percent of the taxpayer’s income tax liability due pursuant to
39   Section 12-6-510 or 12-6-530 for that year. If the amount of the
40   credit exceeds the taxpayer’s income tax liability for that taxable
41   year, the taxpayer may carry forward any the excess for up to ten
42   years.


     [718]                             8
 1      (D) If during any taxable year the landowner voluntarily
 2   chooses to leave the agreement made concerning the certified areas
 3   during any taxable year after taking the tax credit, then the
 4   taxpayer’s tax liability for the current taxable year must be
 5   increased by the full amount of any credit claimed in prior
 6   previous years with respect to the property.
 7      (E)(1) An ‘S’ corporation, limited liability company, or
 8   partnership that qualifies for the credit under pursuant to this
 9   section as an ‘S’ corporation or partnership entitles may pass
10   through the credit earned to each shareholder of the ‘S’
11   corporation, member of the limited liability company, or partner of
12   the partnership to a nonrefundable credit against taxes. Any credit
13   generated by an ‘S’ corporation must first be used against any tax
14   liability of the ‘S’ corporation under Section 12-6-530. Any
15   remaining credit passes through to the shareholders of the ‘S’
16   corporation.
17         (2) The amount of the credit allowed a shareholder, member,
18   or partner, or owner of a limited liability company pursuant to this
19   section is equal to the shareholder’s percentage of stock
20   ownership, the member’s interest in the limited liability company,
21   or the partner’s interest in the partnership, for the taxable year,
22   multiplied by the amount of the credit that the taxpayer would have
23   been entitled to if it were taxed as a corporation earned by the
24   entity. Credit earned by an ‘S’ corporation owing corporate level
25   income tax must be used first at the entity level. Only the
26   remaining credit passes through to the shareholders of the ‘S’
27   corporation.
28         (3) For purposes of this subsection, ‘limited liability
29   company’ means a limited liability company taxed like a
30   partnership.”
31
32   SECTION 13. Section 12-10-30 of the 1976 Code, as last
33   amended by Act 399 of 2000, is further amended to read:
34
35     “Section 12-10-30. As used in this chapter:
36     (1) ‘Council’ means the Advisory Coordinating Council for
37   Economic Development.
38     (2) ‘Department’ means the South Carolina Department of
39   Revenue.
40     (3) ‘Employee’ means an employee of the qualifying business
41   who works full time within the enterprise zone at the project.
42     (4) ‘Gross wages’ means wages subject to withholding.


     [718]                            9
 1      (5) ‘Job development credit’ means the amount a qualifying
 2   business may claim as a credit against employee withholding
 3   pursuant to Sections 12-10-80 and 12-10-81 and a revitalization
 4   agreement.
 5      (6) ‘New job’ means a job created or reinstated as defined in
 6   Section 12-6-3360(M)(3).
 7      (7) ‘Qualifying business’ means a business that meets the
 8   requirements of Section 12-10-50 and other applicable
 9   requirements of this chapter and, where required pursuant to
10   Section 12-10-50, enters into a revitalization agreement with the
11   council to undertake a project pursuant to the provisions of this
12   chapter.
13      (8) ‘Project’ means an investment for one or more purposes
14   pursuant to this chapter needed for a qualifying business to locate,
15   remain, or expand in this State and otherwise fulfill the
16   requirements of this chapter.
17      (9) ‘Preliminary revitalization agreement’ means the
18   application by the qualifying business for benefits pursuant to
19   Section 12-10-80 or 12-10-81 if the council approves the
20   application and agrees in writing at the time of approval to allow
21   the approved application to serve as the preliminary revitalization
22   agreement. The date of the preliminary revitalization agreement is
23   the date of the council approval.
24      (10) ‘Revitalization agreement’ means an executed agreement
25   entered into between the council and a qualifying business that
26   describes the project and the negotiated terms and conditions for a
27   business to qualify for a job development credit pursuant to
28   Section 12-10-80 or 12-10-81.
29      (11) ‘Qualifying expenditures’ means those expenditures that
30   meet the requirements of Section 12-10-80(C) or 12-10-81(D).
31      (12) ‘Withholding’ means employee withholding pursuant to
32   Chapter 8 of this title.
33      (13) ‘Technology employee’ means an employee whose job
34   qualifies for jobs tax credit pursuant to at a technology intensive
35   facility as defined in Section 12-6-3360(M)(14) who is directly
36   engaged in technology intensive activities at that facility.
37      (14) ‘Production employee’ means an employee directly
38   engaged in manufacturing or processing at a manufacturing or
39   processing facility as defined in Section 12-6-3360(M).
40      (15) ‘Retraining agreement’ means an agreement entered into
41   between a business and the council in which a qualifying business
42   is entitled to retraining credit pursuant to Section 12-10-95.


     [718]                            10
 1      (16) ‘Retraining credit’ means the amount that a business may
 2   claim as a credit against withholding pursuant to Section 12-10-95
 3   and the retraining agreement.
 4      (17) ‘Technology intensive activities’ means the design,
 5   development, and introduction of new products or innovative
 6   manufacturing processes, or both, through the systematic
 7   application of scientific and technical knowledge at a technology
 8   intensive facility as defined in Section 12-6-3360(M).”
 9
10   SECTION 14. Section 12-10-50 of the 1976 Code, as last
11   amended by Act 399 of 2000, is further amended to read:
12
13      “Section 12-10-50. (A) To qualify for the benefits provided in
14   this chapter, a business must be located within this State and must:
15      (1) be engaged primarily in a business of the type identified in
16   Section 12-6-3360;
17      (2) provide a benefits package, including health care, to
18   full-time employees at the project;
19      (3) enter into a revitalization agreement that is approved by the
20   council and that describes a minimum job requirement and
21   minimum capital investment requirement for the project as
22   provided in Section 12-10-90, except that a revitalization
23   agreement is not required for a qualifying business with respect to
24   Section 12-10-80(D); and
25      (4) have negotiated incentives that council has determined are
26   appropriate for the project, and the council shall certify that:
27         (a) the total benefits of the project exceed the costs to the
28   public; and
29         (b) the business otherwise fulfills the requirements of this
30   chapter.
31      (B) To qualify for benefits pursuant to Section 12-10-95, a
32   business must:
33         (1) be engaged in manufacturing or processing operations or
34   technology intensive activities at a manufacturing, processing, or
35   technology intensive facility as defined in Section 12-6-3360(M);
36         (2) provide a benefits package, including health care, to
37   employees being retrained; and
38         (3) enter into a retraining agreement with the council.”
39
40   SECTION 15. Section 12-10-80 of the 1976 Code, as last
41   amended by Act 399 of 2000, is further amended to read:
42


     [718]                            11
 1      “Section 12-10-80. (A) A business that qualifies pursuant to
 2   Section 12-10-50(A) and has certified to the council that the
 3   business has met the minimum job requirement and minimum
 4   capital investment provided for in the revitalization agreement may
 5   claim job development credits as determined by this section.
 6        (1) A business may claim job development credits against its
 7   withholding on its quarterly state withholding tax return for the
 8   amount of job development credits allowable pursuant to this
 9   section.
10        (2) A business that is current with respect to its withholding
11   tax and other tax due and owing the State and that has maintained
12   its minimum employment and investment levels identified in the
13   revitalization agreement may claim the credit on a quarterly basis
14   beginning with the first quarter after the council’s certification to
15   the department that the minimum employment and capital
16   investment levels were met for the entire quarter. If a qualifying
17   business is not current as to all taxes due and owing to the State as
18   of the date of the return on which the credit would be claimed,
19   without regard to extensions, the business is barred from claiming
20   the credit that would otherwise be allowed for that quarter.
21        (3) A qualifying business may receive claim its initial job
22   development credit only after the council has certified to the
23   department that the qualifying business has met the required
24   minimum employment and capital investment levels.
25        (4) To be eligible to apply to the council to claim a job
26   development credit, a qualifying business shall create at least ten
27   new, full-time jobs, as defined in Section 12-6-3360(M), at the
28   project described in the revitalization agreement within five years
29   of the effective date of the agreement.
30        (5) A qualifying business is eligible to claim a job
31   development credit pursuant to the revitalization agreement for not
32   more than fifteen years.
33        (6) To the extent any return of an overpayment of
34   withholding that results from claiming job development credits is
35   not used as permitted by subsection (C) or (D) by Section
36   12-10-95, it must be treated as misappropriated employee
37   withholding.
38        (7) Except as provided in subsection (D), Job development
39   credits may not be claimed for purposes of this section with regard
40   to an employee whose job was created in this State before the
41   taxable year of the qualifying business in which it enters into a
42   preliminary revitalization agreement.


     [718]                            12
 1         (8) If a qualifying business claims job development credits
 2   pursuant to this section, it shall make its payroll books and records
 3   available for inspection by the council and the department at the
 4   times the council and the department request. Each qualifying
 5   business claiming job development credits pursuant to this section
 6   shall file with the council and the department the information and
 7   documentation requested by the council or department respecting
 8   employee withholding, the job development credit, and the use of
 9   any overpayment of withholding resulting from the claiming of a
10   job development credit according to the revitalization agreement.
11         (9) Each qualifying business claiming in excess of ten
12   thousand dollars in a calendar year must furnish an audited report
13   prepared by an independent certified public accountant that
14   itemizes the sources and uses of the funds. The audited report must
15   be filed with the council and the department no later than June
16   thirtieth following the calendar year in which the job development
17   credits are claimed, except when a qualifying business obtains the
18   written approval by the council for an extension of that date.
19   Extensions may be granted only for good cause shown. The
20   department shall impose a penalty pursuant to Section 12-54-210
21   for all reports filed after June thirtieth or the approved extension
22   date, whichever is later.
23         (10) Each qualifying business claiming ten thousand dollars
24   or less in any calendar year must furnish a report prepared by the
25   company that itemizes the sources and uses of the funds. This
26   report must be filed with the council and the department no later
27   than June thirtieth following the calendar year in which the job
28   development credits are claimed, except when a qualifying
29   business obtains the written approval by the council for an
30   extension of that date. Extensions may be granted only for good
31   cause shown. The department shall impose a penalty pursuant to
32   Section 12-54-210 for all reports filed after June thirtieth or the
33   approved extension date, whichever is later.
34         (11) An employer may not claim an amount that results in an
35   employee’s receiving a smaller amount of wages on either a
36   weekly or on an annual basis than the employee would receive
37   otherwise in the absence of this chapter.
38      (B)(1) The maximum job development credit a qualifying
39   business may claim for new employees is limited to the lesser of
40   withholding tax paid to the State on a quarterly basis or the sum of
41   the following amounts:



     [718]                            13
 1           (a) two percent of the gross wages of each new employee
 2   who earns 6.74 dollars $6.95 or more an hour but less than 8.99
 3   dollars $9.27 an hour;
 4           (b) three percent of the gross wages of each new
 5   employee who earns 8.99 dollars 9.27 or more an hour but less
 6   than 11.23 dollars $11.58 an hour;
 7           (c) four percent of the gross wages of each new employee
 8   who earns 11.23 dollars $11.58 or more an hour but less than 16.85
 9   dollars $17.38 an hour; and
10           (d) five percent of the gross wages of each new employee
11   who earns 16.85 dollars $17.38 or more an hour.
12        (2) The hourly gross wage figures in item (1) must be
13   adjusted annually by an inflation factor determined by the State
14   Budget and Control Board. The amount that may be claimed by a
15   qualifying business is limited by subsection (C) and the
16   revitalization agreement. The council may approve a waiver of
17   ninety-five percent of the limits pursuant to subsection (C) for
18   qualifying businesses making a significant capital investment as
19   defined in Section 4-12-30(D)(4) or Section 4-29-67(D)(4).
20      (C) To claim a job development credit, the qualifying business
21   must incur qualified expenditures at the project or for utility or
22   transportation improvements that serve the project. To be
23   qualified, the expenditures must be:
24        (1) incurred during the term of the revitalization agreement,
25   including a preliminary revitalization agreement, or within sixty
26   days before the execution of a revitalization agreement, including a
27   preliminary revitalization agreement council’s receipt of an
28   application for benefits pursuant to this section;
29        (2) authorized by the revitalization agreement; and
30        (3) used for any of the following purposes:
31           (a) training costs and facilities;
32           (b) acquiring and improving real estate whether
33   constructed or acquired by purchase, or in cases approved by the
34   council, acquired by lease or otherwise;
35           (c) improvements to both public and private utility
36   systems including water, sewer, electricity, natural gas, and
37   telecommunications;
38           (d) fixed transportation facilities including highway, rail,
39   water, and air;
40           (e) construction or improvements of real property and
41   fixtures constructed or improved primarily for the purpose of
42   complying with local, state, or federal environmental laws or
43   regulations;

     [718]                            14
 1           (f) employee relocation expenses associated with new or
 2   expanded technology intensive facilities as defined in Section
 3   12-6-3360(M)(14);
 4           (g) financing the costs of a purpose described in items (a)
 5   through (f).
 6      (D)(1) The amount of job development credits a qualifying
 7   business may claim for its use for qualifying expenditures is
 8   limited according to the designation of the county as defined in
 9   Section 12-6-3360(B) as follows:
10           (1)(a) one hundred percent of the maximum job
11   development credits may be claimed by businesses located in
12   counties designated as ‘least developed’;
13           (2)(b) eighty-five percent of the maximum job
14   development credits may be claimed by businesses located in
15   counties designated as ‘underdeveloped’;
16           (3)(c) seventy percent of the maximum job development
17   credits may be claimed by businesses located in counties
18   designated as ‘moderately developed’; or
19           (4)(d) fifty-five percent of the maximum job development
20   credits may be claimed by businesses located in counties
21   designated as ‘developed’.
22        (2) The amount that may be claimed as a job development
23   credit by a qualifying business is limited by this subsection and by
24   the revitalization agreement. The council may approve a waiver of
25   ninety-five percent of the limits provided in item (1) for a
26   qualifying business making a significant capital investment as
27   defined in Section 4-12-30(D)(4), 4-29-67(D)(4), or 12-44-30(8).
28        (3) The county designation of the county in which the
29   project is located at the time the qualifying business enters into a
30   preliminary revitalization agreement with the council remains in
31   effect for the entire period of the revitalization agreement, except
32   as to additional jobs created pursuant to an amendment to a
33   revitalization agreement entered into before June 1, 1997, as
34   provided in Section 12-10-60. In that case the county designation
35   on the date of the amendment remains in effect for the remaining
36   period of the revitalization agreement as to any additional jobs
37   created after the effective date of the amendment. This item does
38   not apply to a business whose application for job development fees
39   or credits pursuant to Section 12-10-81 has been approved by
40   council before the effective date of this act.
41      (E) The council shall certify to the department the maximum
42   job development credit for each qualifying business. After
43   receiving certification, the department shall remit an amount equal

     [718]                            15
 1   to the difference between the maximum job development credit
 2   and the job development credit actually claimed to the State Rural
 3   Infrastructure Fund as defined and provided in Section 12-10-85.
 4      (D)Subject to the conditions in this section, a qualifying
 5   business in this State may negotiate with the council to claim a job
 6   development credit for retraining according to the procedure in
 7   subsection (A) in an amount equal to five hundred dollars a year
 8   for each production and technology employee being retrained,
 9   where this retraining is necessary for the qualifying business to
10   remain competitive or to introduce new technologies. This
11   retraining must be approved and performed by the appropriate
12   technical college under the jurisdiction of the State Board for
13   Technical and Comprehensive Education. The technical college
14   may provide the retraining program delivery directly or contract
15   with other training entities to accomplish the required training
16   outcomes. In addition to the yearly limits, the amount claimed as a
17   job development credit for retraining may not exceed two thousand
18   dollars over five years for each production employee being
19   retrained. Additionally, the qualifying business must match on a
20   dollar-for-dollar basis the amount claimed as a job development
21   credit for retraining. The total amount claimed as job development
22   credits for retraining and all of the matching funds of the
23   qualifying business must be paid to the technical college that
24   provides the training to defray the cost of the training program.
25   Training cost in excess of the job development credits for
26   retraining and matching funds is the responsibility of the
27   qualifying business based on negotiations with the technical
28   college.
29      (E)(F) Any job development credit of a qualifying business
30   permanently lapses upon expiration or termination of the
31   revitalization agreement. If an employee is terminated, the
32   qualifying business immediately must cease to claim job
33   development credits as to that employee.
34      (F) The statute of limitations provided by Section 12-54-85 is
35   suspended until the end of the five-year period described in item
36   (4) of subsection (A) with respect to state withholding taxes
37   pursuant to this section for a business subject to this section.
38      (G) For purposes of the job development credit allowed by this
39   section, an employee is a person whose job was created in this
40   State.
41      (H) Job development credits may not be claimed by a
42   governmental employer who employs persons at a closed or
43   realigned military installation as defined in Section 12-10-88(E).”

     [718]                            16
 1   SECTION 16. Section 12-10-81 of the 1976 Code, as last
 2   amended by Act 399 of 2000, is further amended to read:
 3
 4      “Section 12-10-81. (A) A business may claim a job
 5   development credit as determined by this section if the:
 6         (1) council approves the use of this section for the business;
 7         (2) business qualifies pursuant to Section 12-10-50; and
 8         (3) business is a tire manufacturer that has more than four
 9   hundred twenty-five million dollars in capital invested in this State
10   and employs more than one thousand employees in this State and
11   that commits within a period of five years from the date of a
12   revitalization agreement, to invest an additional three hundred fifty
13   million dollars and create an additional three hundred fifty jobs in
14   this State qualifying for job development fees or credits pursuant
15   to current or future revitalization agreements; except that the
16   business must certify to the council that the business has satisfied
17   all minimum capital investment and job requirements identified in
18   the revitalization agreements but not certified by the council to the
19   department before July 1, 2001. The council, in its discretion, may
20   extend the five-year period for two additional years if the business
21   has made a commitment to the additional three hundred fifty
22   million dollars and makes substantial progress toward satisfying
23   the goal before the end of the initial five-year period. A business
24   that represents to the council its intent to qualify pursuant to this
25   section and is approved by the council may put job development
26   fees computed pursuant to this section into an escrow account until
27   the date the business satisfies certifies to the council that the
28   business has satisfied the capital and job requirements of this
29   section.
30      (B)(1) A business qualifying pursuant to this section may claim
31   its job development credit against its withholding on its quarterly
32   state withholding tax return for the amount of job development
33   credit allowable pursuant to this section for not more than fifteen
34   years. Job development credits allowed pursuant to subsection
35   (C)(1)(a) through (d) of this section apply only to withholding on
36   jobs created pursuant to a revitalization agreement adopted
37   pursuant to this section and to the amounts withheld on wages and
38   salaries on those jobs.
39         (2) A business that is current with respect to its withholding
40   tax as well as any other tax due and owing the State and that has
41   maintained its minimum employment and investment levels
42   identified in the revitalization agreement may claim the credit on a
43   quarterly basis beginning with the quarter subsequent to the

     [718]                            17
 1   council’s certification to the department that the minimum
 2   employment and capital investment levels have been met for the
 3   entire quarter. If a qualifying business is not current as to all taxes
 4   due and owing to the State as of the date of the return on which the
 5   credit would be claimed, without regard to extensions, the business
 6   is barred from claiming the credit that would otherwise be allowed
 7   for that quarter.
 8         (3) To be eligible to apply to the council to claim a job
 9   development credit pursuant to this section, a qualifying business
10   must create at least ten new, full-time jobs as defined in Section
11   12-6-3360(M) at the project or projects described in the
12   revitalization agreement.
13         (4) To the extent a return of an overpayment of withholding
14   that results from claiming job development credits is not used as
15   permitted by subsection (D), it must be treated as misappropriated
16   employee withholding.
17         (5) Job development credits may not be claimed for
18   purposes of this section with regard to an employee whose job was
19   created in this State before the taxable year the qualifying business
20   enters into a preliminary revitalization agreement.
21         (6) If a qualifying business claims job development credits
22   pursuant to this section, it must make its payroll books and records
23   available for inspection by the council and the department at the
24   times the council and the department request. Each qualifying
25   business claiming job development credits pursuant to this section
26   must file with the council and the department the information and
27   documentation they request respecting employee withholding, the
28   job development credit, and the use of overpayment of withholding
29   resulting from the claiming of a job development credit according
30   to the revitalization agreement.
31         (7) Each qualifying business must furnish an audited report
32   prepared by an independent certified public accountant that
33   itemizes the sources and uses of the funds. The audited report must
34   be filed with the council and the department no later than June
35   thirtieth following the calendar year in which the job development
36   credits are claimed, except when a qualifying business obtains
37   written approval of council for an extension of that date.
38   Extensions may be granted for good cause shown. The department
39   shall impose a penalty pursuant to Section 12-54-210 for all
40   reports filed after June thirtieth or the approved extension date,
41   whichever is later.
42         (8) An employer may not claim an amount that results in an
43   employee’s receiving a smaller amount of wages on either a

     [718]                             18
 1   weekly or on an annual basis than the employee would otherwise
 2   receive in the absence of this chapter.
 3      (C)(1) The maximum job development credit a qualifying
 4   business may claim for new employees is determined by the sum
 5   of the following amounts:
 6           (a) two percent of the gross wages of each new employee
 7   who earns $6.74 $6.95 or more an hour but less than $8.99 $9.27
 8   an hour;
 9           (b) three percent of the gross wages of each new
10   employee who earns $8.99 $9.27 or more an hour but less than
11   $11.23 $11.58 an hour;
12           (c) four percent of the gross wages of each new employee
13   who earns $11.23 $11.58 or more an hour but less than $16.85
14   $17.38 an hour;
15           (d) five percent of the gross wages of each new employee
16   who earns $16.85 $17.38 or more an hour; and
17           (e) the increase in the state sales and use tax of the
18   business from the year of the effective date of its revitalization
19   agreement pursuant to this section and subsequent years, over its
20   state sales and use tax for the first of the three years preceding the
21   effective date of this revitalization agreement.
22        (2) The hourly base wages in item (1) must be adjusted
23   annually by the inflation factor determined by the State Budget and
24   Control Board. The amount that may be claimed by a qualifying
25   business is limited by subsection (E) and the negotiated terms of
26   the revitalization agreement. The business may proceed by using
27   either the job development fee escrow procedure available
28   pursuant to revitalization agreements with effective dates before
29   1997, or the job development credit, or a combination of the two.
30   For a business qualifying pursuant to this section, the council also
31   may approve or waive sections of a revitalization agreement and
32   the council’s rules as needed, in the council’s discretion, to assist
33   the business.
34      (D) To claim a job development credit, the qualifying business
35   must incur expenditures at the project or for utility or
36   transportation improvements that serve the project. To be
37   qualified, the expenditures must be:
38        (1) incurred during the term of the revitalization agreement,
39   including a preliminary revitalization agreement, or within sixty
40   days before council’s receipt of an application for benefits
41   pursuant to this section;
42        (2) authorized by the revitalization agreement; and
43        (3) used to reimburse the business for:

     [718]                             19
 1           (a) training costs and facilities;
 2           (b) acquiring and improving real estate whether
 3   constructed or acquired by purchase, or in cases approved by the
 4   council, acquired by lease or otherwise;
 5           (c) improvements to both public and private utility
 6   systems including water, sewer, electricity, natural gas, and
 7   telecommunication;
 8           (d) fixed transportation facilities including highway, rail,
 9   water, and air; or
10           (e) construction or improvements of real property and
11   fixtures constructed or improved primarily for the purpose of
12   complying with local, state, or federal environmental laws or
13   regulations.
14      (E)(1) For purposes of subsection (C)(1)(a) through (d), the
15   amount of job development credits a qualifying business may
16   claim for its use for qualifying expenditures is limited according to
17   the designation of the county as defined in Section 12-6-3360(B)
18   as follows:
19           (a) one hundred percent of the maximum job development
20   credits may be claimed by businesses located in counties
21   designated as ‘least developed’;
22           (b) eighty-five percent of the maximum job development
23   credits may be claimed by businesses located in counties
24   designated as ‘underdeveloped’;
25           (c) seventy percent of the maximum job development
26   credits may be claimed by businesses located in counties
27   designated as ‘moderately developed’; or
28           (d) fifty-five percent of the maximum job development
29   credits may be claimed by businesses located in counties
30   designated as ‘developed’.
31        (2) For purposes of this subsection, the county designation
32   of the county in which the project is located at the time the
33   qualifying business enters into a preliminary revitalization
34   agreement with the council remains in effect for the entire period
35   of the revitalization agreement.
36        (3) The amount claimed by a qualifying business is limited
37   by this subsection and the terms of the revitalization agreements.
38   The business may use either the job development escrow
39   procedure pursuant to revitalization agreements with effective
40   dates before 1997 or the job development credit, or a combination
41   of the two. For a business qualifying pursuant to this section, the
42   council also may approve or waive sections of a revitalization


     [718]                            20
 1   agreement and rules of the council, in the council’s discretion, to
 2   assist the business.
 3         (4) The council shall certify to the department the maximum
 4   job development credit for each qualifying business. After
 5   receiving certification, the department shall remit an amount equal
 6   to the difference between the maximum job development credit
 7   and the job development credit actually claimed to the State Rural
 8   Infrastructure Fund as defined and provided in Section 12-10-85.
 9      (F) A job development credit of a qualifying business
10   permanently lapses upon expiration or termination of the
11   revitalization agreement. If an employee is terminated, the
12   qualifying business immediately must cease to claim job
13   development credits as to that employee.
14      (G) The statute of limitations provided by Section 12-54-85 is
15   suspended until the end of the five-year or seven-year period
16   described in item (3) of subsection (A) with respect to state
17   withholding taxes pursuant to this section for a business subject to
18   this section.
19      (H) For purposes of the job development credit allowed by this
20   section, an employee is a person whose job was created in this
21   State.”
22
23   SECTION 17. Section 12-13-20 of the 1976 Code is amended to
24   read:
25
26      “Section 12-13-20. The term ‘net income’, as used in this
27   chapter, means taxable income as determined for a regular
28   corporation in Chapter 7 6 of this title after deducting all earnings
29   accrued, paid, credited, or set aside for the benefit of holders of
30   savings or investment accounts, any additions to reserves which
31   are required by law, regulation, or direction of appropriate
32   supervisory agencies, and a bad debt deduction. The bad debt
33   deduction allowable for South Carolina income tax purposes is the
34   amount determined under the Internal Revenue Code and the
35   applicable regulations as amended through December 31, 1986 as
36   defined in Section 12-6-40. No deductions from income are
37   allowed for any additions to undivided profits or surplus accounts
38   other than herein required, and for the purposes of this chapter, a
39   state-organized association is allowed the same deductions for bad
40   debt reserves as those allowed to federally organized associations.
41   Associations shall maintain the bad debt reserves allowed as a
42   deduction pursuant to this section in accordance with the
43   provisions of the Internal Revenue Code as amended through

     [718]                            21
 1   December 31, 1986, as defined in Section 12-6-40 and shall keep a
 2   permanent record.         These provisions are controlling
 3   notwithstanding any other provision of law.”
 4
 5   SECTION 18. Section 12-13-60 of the 1976 Code is amended to
 6   read:
 7
 8     “Section 12-13-60. For the purpose of administration,
 9   enforcement, collection, liens, penalties, and other similar
10   provisions, all of the provisions of Chapter 7 6 of this title that may
11   be are appropriate or applicable are adopted and made a part of this
12   chapter, including the requirement to make declarations
13   requirements of declaration and payment of estimated tax and
14   make estimated tax payments.”
15
16   SECTION 19. Section 12-20-90 of the 1976 Code is amended to
17   read:
18
19      “Section 12-20-90. The amount of the license fee required by
20   Section 12-20-50 for a bank holding company, insurance holding
21   company system, and savings and loan holding company must be
22   measured by the capital stock and paid-in surplus of the holding
23   company exclusive of the capital stock and paid-in surplus of a
24   bank, insurer, or savings and loan association that is a subsidiary of
25   the holding company. For the purposes of this section, ‘bank’,
26   ‘bank holding company’, and ‘subsidiary’ of a bank holding
27   company have the same definitions as in Section 34-24-20;
28   ‘insurer’, ‘insurance holding company system’, and a ‘subsidiary’
29   of an insurance holding company system have the same definitions
30   as in Section 38-21-10; and savings and loan ‘association’,
31   ‘savings and loan holding company’, and a ‘subsidiary’ of a
32   savings and loan company have the same definitions as in Section
33   34-28-300.”
34
35   SECTION 20. Section 12-20-110 of the 1976 Code is amended
36   to read:
37
38     “Section 12-20-110. The provisions of this chapter do not
39   apply to any:
40     (1) nonprofit corporation organized under Article 1 of pursuant
41   to Chapter 31 or 33 of Title 33 and exempt from income taxes
42   pursuant to Section 501 of the Internal Revenue Code of 1986;
43     (2) volunteer fire department and rescue squad;

     [718]                             22
 1      (3) cooperative organized under Chapter 45 or 47 of pursuant
 2   to Title 33;
 3      (4) bank, building and loan association, or credit union doing a
 4   strictly mutual business;
 5      (5) insurance company or association including any a fraternal,
 6   beneficial, or mutual protection insurance company; or
 7      (6) foreign corporation whose entire income is not included in
 8   excluded from gross income for federal income tax purposes due
 9   to any a treaty obligation of the United States; or
10      (7) homeowners’ association within the meaning of Internal
11   Revenue Code Section 528(c)(1).”
12
13   SECTION 21. Section 12-28-1135(A) of the 1976 Code is
14   amended to read:
15
16      “(A) Each person who engages in the business of selling taxable
17   motor fuel at wholesale or retail or storing or distributing
18   purchases taxable motor fuel for resale within this State from a
19   licensed terminal supplier first shall obtain a fuel vendor license
20   which is operative for all locations controlled or operated by that
21   licensee in this State or in any other state from which the person
22   removes fuel for delivery and use in South Carolina.”
23
24   SECTION 22. A.Section 12-28-1730(E) of the 1976 Code is
25   amended to read:
26
27      “(E) The department may impose a civil penalty against every
28   terminal operator who wilfully fails to meet shipping paper
29   issuance requirements under Sections 12-28-920, 12-28-1500, and
30   12-28-1575 or wilfully files a return without the supporting
31   schedules as required by the department pursuant to Sections
32   12-28-1330 and 12-28-1340. The civil penalty imposed on the
33   terminal operator is the same as the civil penalty imposed under
34   subsection (B).”
35
36   B. Section 12-28-1730 of the 1976 Code is amended by adding:
37
38     “(H) If a person liable for the tax files a return and wilfully fails
39   to provide all information required by the department, the
40   department may add to the tax the amount provided in Section
41   12-54-43(C)(1).”
42


     [718]                             23
 1   SECTION 23. Section 12-36-90(2)(h) of the 1976 Code is
 2   amended to read:
 3
 4      “(h) the sales price, not including sales tax, of property on sales
 5   which are actually charged off as bad debts or uncollectible
 6   accounts for state income tax purposes. A taxpayer who pays the
 7   tax on the unpaid balance of an account which has been found to
 8   be worthless and is actually charged off for state income tax
 9   purposes may take credit for the tax paid a deduction for the sales
10   price charged off as a bad debt or uncollectible account on a return
11   filed pursuant to this chapter, except that if an amount charged off
12   is later paid in whole or in part to the taxpayer, the amount paid
13   must be included in the first return filed after the collection and the
14   tax paid. The deduction allowed by this provision must be taken
15   within one year of the month the amount was determined to be a
16   bad debt or uncollectible account.”
17
18   SECTION 24. Section 12-36-130 of the 1976 Code, as last
19   amended by Section 2, Act 283 of 2000, is further amended by
20   adding a paragraph at the end to read:
21
22      “The term ‘sales price’ as defined in this section, also does not
23   include the sales price, not including tax, of property on sales
24   which are actually charged off as bad debts or uncollectible
25   accounts for state income tax purposes. A taxpayer who pays the
26   tax on the unpaid balance of an account which has been found to
27   be worthless and is actually charged off for state income tax
28   purposes may take a deduction for the sales price charged of as a
29   bad debt or uncollectible account on a return filed pursuant to this
30   chapter, except that if an amount charged off is later paid in whole
31   or in part to the taxpayer, the amount paid must be included in the
32   first return filed after the collection and the tax paid. The
33   deduction allowed by this paragraph must be taken within one year
34   of the month the amount was determined to be a bad debt or
35   uncollectible account.”
36
37   SECTION 25. Section 12-36-910(B)(3) of the 1976 Code is
38   amended to read:
39
40     “(3) gross proceeds accruing or proceeding from the charges for
41   the ways or means for the transmission of the voice or messages,
42   including the charges for use of equipment furnished by the seller
43   or supplier of the ways or means for the transmission of the voice

     [718]                             24
 1   or messages. Charges for mobile telecommunications services
 2   subject to the tax under this item must be sourced in accordance
 3   with the Mobile Telecommunications Sourcing Act as provided in
 4   Title 4 of the United States Code. The term ‘charges for mobile
 5   telecommunications services’ is defined for purposes of this
 6   section the same as it is defined in the Mobile Telecommunications
 7   Sourcing Act. All other definitions and provisions of the Mobile
 8   Telecommunications Sourcing Act as provided in Title 4 of the
 9   United States Code are adopted;”
10
11   SECTION 26. Section 12-36-910(B) of the 1976 Code is
12   amended by adding:
13
14      “(5) gross proceeds accruing or proceeding from the sale or
15   recharge at retail or prepaid wireless calling arrangements.
16        (a) ‘Prepaid wireless calling arrangements’ means
17   communication services that:
18           ( i) are used exclusively to purchase wireless
19   telecommunications;
20           ( ii) are purchased in advance;
21           (iii) allow the purchaser to originate telephone calls by
22   using an access number, authorization code, or other means
23   entered manually or electronically; and
24           ( iv) are sold in units or dollars which decline with use in a
25   known amount.
26        (b) All charges for prepaid wireless calling arrangements
27   must be sourced to the:
28           ( i) location in this State where the over-the-counter sale
29   took place;
30           ( ii) shipping address if the sale did not take place at the
31   seller’s location and an item is shipped; or
32           (iii) either the billing address or location associated with
33   the mobile telephone number if the sale did not take place at the
34   seller’s location and no item is shipped.”
35
36   SECTION 27. Section 12-36-940 of the 1976 Code is amended
37   to read:
38
39      “Section 12-36-940. (A) Every Each retailer may add to the
40   sales price as a result of the five percent state sales tax:
41        (1) no amount on sales of ten cents or less;
42        (2) one cent on sales of eleven cents and over, but not in
43   excess of through twenty cents;

     [718]                             25
 1         (3) two cents on sales of twenty-one cents and over, but not
 2   in excess of through forty cents;
 3         (4) three cents on sales of forty-one cents and over, but not
 4   in excess of through sixty cents;
 5         (5) four cents on sales of sixty-one cents and over, but not in
 6   excess of through eighty cents;
 7         (6) five cents on sales of eighty-one cents and over, but not
 8   in excess of through one dollar;
 9         (7) one cent additional for each twenty cents or major
10   fraction thereon in excess of it over of one dollar.
11      (B) The inability, impracticability, refusal, or failure to add
12   these amounts to the sales price and collect them from the
13   purchaser does not relieve the taxpayer from the tax levied by this
14   article.
15      (C) For purposes of the state sales tax on accommodations and
16   applicable combined state sales and local tax for counties imposing
17   a local sales tax collected by the department on their behalf,
18   retailers may add to the sales price an amount equal to the total
19   state and local sales tax rate times the sales price. The amount
20   added to the sales price may not be less than the amount added
21   pursuant to subsection (A). In calculating the tax due, retailers
22   may round a fraction of more than one-half of a cent to the next
23   whole cent and a fraction of a cent of one-half or less must be
24   eliminated. The inability, impracticability, refusal, or failure to
25   add the tax to the sales price as allowed by this subsection and
26   collect them from the purchaser does not relieve the taxpayer of his
27   responsibility to pay tax.”
28
29   SECTION 28. Section 12-36-1310(B)(3) of the 1976 Code is
30   amended to read:
31
32      “(3) gross proceeds accruing or proceeding from the charges for
33   the ways or means for the transmission of the voice or messages,
34   including the charges for use of equipment furnished by the seller
35   or supplier of the ways or means for the transmission of the voice
36   or messages. Charges for mobile telecommunications services
37   subject to the tax under this item must be sourced in accordance
38   with the Mobile Telecommunications Sourcing Act as provided in
39   Title 4 of the United States Code. The term ‘charges for mobile
40   telecommunications services’ is defined for purposes of this
41   section the same as it is defined in the Mobile Telecommunications
42   Sourcing Act. All other definitions and provisions of the Mobile


     [718]                            26
 1   Telecommunications Sourcing Act as provided in Title 4 of the
 2   United States Code are adopted;”
 3
 4   SECTION 29. Section 12-37-220(C) of the 1976 Code is
 5   amended to read:
 6
 7      “(C) Upon approval by the governing body of the county, the
 8   five-year partial exemption allowed pursuant to subsections (A)(7),
 9   and (B)(32), and (B)(34) is extended to an unrelated purchaser who
10   acquires the facilities in an arms-length transaction and who
11   preserves the existing facilities and existing number of jobs. The
12   partial exemption applies for the purchaser for five years if the
13   purchaser otherwise meets the exemption requirements.”
14
15   SECTION 30. Section 12-54-43 of the 1976 Code, as last
16   amended by Act 399 of 2000, is further amended by adding an
17   appropriately lettered subsection to read:
18
19     “( ) A failure to deposit or pay taxes deducted and withheld
20   pursuant to Article 5 of Chapter 8 subjects the withholding agent to
21   a penalty of not less than ten dollars nor more than one thousand
22   dollars. The penalty imposed by this item applies to failure to
23   comply with the provisions of Section 12-54-250.”
24
25   SECTION 31. Section 12-54-44(C) of the 1976 Code is
26   amended to read:
27
28     “(C) A failure to deposit or pay taxes deducted and withheld
29   pursuant to Article 5 of Chapter 8 subjects the withholding agent to
30   a penalty of not less than ten dollars nor more than one thousand
31   dollars. The penalty imposed by this item applies to failure to
32   comply with the provisions of Section 12-54-250. Reserved”
33
34   SECTION 32. Chapter 54, Title 12 of the 1976 Code is amended
35   by adding:
36
37      “Section 12-54-195. (A) As used in this section, ‘responsible
38   person’ includes any officer, partner, or employee of the taxpayer
39   who has a duty to pay to the department the sales tax due by the
40   taxpayer or use tax required or authorized to be collected by the
41   retailer pursuant to Chapter 36 of this title.
42      (B) If a retailer adds and collects the sales tax as permitted by
43   Section 12-36-940, or collects the use tax from the purchaser as

     [718]                            27
 1   required by Section 12-36-1350, but the retailer fails to remit the
 2   tax collected to the department, then any responsible person may
 3   be held liable, individually and personally, for a penalty equal to
 4   one hundred percent of the tax collected but not remitted to the
 5   department. The tax is not collectible from the retailer to the
 6   extent the penalty imposed by this subsection is collected from a
 7   responsible person.”
 8
 9   SECTION 33. Section 12-54-85 of the 1976 Code, as last
10   amended by Act 399 of 2000, is further amended by adding an
11   appropriately numbered subsection at the end to read:
12
13      “( )(1) An individual taxpayer is ‘financially disabled’ if he is
14   unable to manage his financial affairs by reason of a medically
15   determinable physical or mental impairment that is expected to
16   result in death or that has lasted or is expected to last for a
17   continuous period of not less than twelve months. An individual
18   taxpayer does not have that impairment for this purpose unless
19   proof of the existence of the impairment is provided to the
20   department in the form and manner the department requests.
21         (2) The running of the period of limitation provided in
22   subsection (F) is suspended during a period an individual taxpayer
23   is considered financially disabled.
24         (3) An individual taxpayer may not be treated as financially
25   disabled during a period that his spouse or another person is
26   authorized lawfully to act on his behalf in financial matters.”
27
28   SECTION 34. Section 12-54-85(F) of the 1976 Code is amended
29   to read:
30
31      “(F)(1) Except as provided in subsection (D) above, claims for
32   credit or refund must be filed within three years of from the time
33   the timely filed return, including extensions, was filed, or two
34   years from the date of payment the tax was paid, whichever is
35   later. If no return was filed, a claim for credit or refund must be
36   filed within two years from the date of payment the tax was paid.
37   A credit or refund may not be made after the expiration of the
38   period of limitation prescribed in this item for the filing of a claim
39   for credit or refund, unless the claim for credit or refund is filed by
40   the taxpayer or determined to be due by the department within that
41   period.
42         (2) If the claim was filed by the taxpayer during the
43   three-year period prescribed in item (1), the amount of the credit or

     [718]                             28
 1   refund may not exceed the portion of the tax paid within the
 2   period, immediately preceding the filing of the claim, equal to
 3   three years plus the period of any extension of time for filing the
 4   return.
 5         (3) If the claim was not filed within the three-year period,
 6   the amount of the credit or refund may not exceed the portion of
 7   the tax paid during the two years immediately preceding the filing
 8   of the claim.
 9         (4) If no claim was filed, the credit or refund may not exceed
10   the amount which would be allowable under item (2) or (3), as the
11   case may be, as if a claim were filed on the date the credit or
12   refund is allowed.
13         (5) For the purposes of this subsection:
14            (a) A return filed before the last day prescribed for the
15   filing is considered as filed on the last day. Payment of any
16   portion of the tax made before the last day prescribed for the
17   payment of the tax is considered made on the last day. The last
18   day prescribed for filing the return or paying the tax must be
19   determined without regard to any extension of time.
20            (b) Any tax actually withheld at the source in respect of
21   the recipient of income, is considered to have been paid by the
22   recipient on the last day prescribed for filing his return for the
23   taxable year, determined without regard to any extension of time
24   for filing the return, with respect to which the taxpayer would be
25   allowed a credit for the amount withheld.
26            (c) Any amount paid as estimated income tax for any
27   taxable year is considered to have been paid on the last day
28   prescribed for filing the return for the taxable year, determined
29   without regard to any extension of time for filing the return.
30         (6) In the case of an individual, the running of the period
31   specified in this subsection is suspended for a period of the
32   individual’s life during which he is financially disabled. For
33   purposes of this item, an individual is financially disabled if he is
34   unable to manage his financial affairs by reason of a medically
35   determinable physical or mental impairment that is not expected to
36   result in death or which has lasted or is expected to last for a
37   continuous period of not less than twelve months. An individual
38   must not be treated as financially disabled for a period during
39   which his spouse or another person is authorized to act on his
40   behalf in financial matters. An individual must not be considered
41   financially disabled unless the following statements are submitted
42   as part of the claim for credit or refund:


     [718]                            29
 1          (a) a written statement signed by a physician qualified to
 2   make the determination that provides the:
 3             ( i) name and a brief description of the physical or
 4   mental impairment;
 5             ( ii) physician’s medical opinion that the physical or
 6   mental impairment prevented the taxpayer from managing his
 7   financial affairs;
 8             (iii) physician’s medical opinion that the taxpayer’s
 9   physical or mental impairment resulted in, or is expected to result
10   in, death, or that it has lasted, or is expected to last, for a
11   continuous period of not less than twelve months; and
12             ( iv) specific time period during which the taxpayer was
13   prevented by the physical or mental impairment from managing his
14   financial affairs, to the best of the physician’s knowledge; and
15          (b) a written statement by the taxpayer or the person
16   signing the claim for credit or refund that the person, including the
17   taxpayer’s spouse, was not authorized to act on his behalf in
18   financial matters for the period during which he was unable to
19   manage his own financial affairs. Alternatively, if a person was
20   authorized to act on the taxpayer’s behalf in financial matters
21   during part of that period of disability, the statement must contain
22   the beginning and ending dates of the period of time the person
23   was authorized; and
24          (c) other information the department may require.
25      The department, in its discretion, may adopt a determination
26   made by the Internal Revenue Service with respect to an
27   individual, and may follow rules issued by the Internal Revenue
28   Service or Department of Treasury with regard to interpreting
29   Internal Revenue Code section 6511(h).”
30
31   SECTION 35. Section 12-54-200 of the 1976 Code is amended
32   to read:
33
34      “Section 12-54-200. (a)(A) The department, at its discretion,
35   after notification as provided in subsection (b) of this section, may
36   require any a person subject to provisions of law administered by
37   the department, not including Section 12-35-330, to post a cash or
38   surety bond, deposit and maintain taxes due including associated
39   penalties and interest in a separate account in a bank or other
40   financial institution in this State, or both, if the person fails to file a
41   timely return or pay any a tax for as many as two tax filing periods
42   in a twelve-month period.


     [718]                               30
 1      (B) The amount of the bond must be determined by the
 2   department and may not be greater than three times the estimated
 3   average liability each filing period of the person required to file the
 4   return. A cash bond must be held by the State Treasurer, without
 5   interest, as surety conditioned upon prompt payment of all taxes,
 6   penalties, and interest imposed by law upon the person.
 7      (C) If a person is required to maintain a separate account, he
 8   must give the name of the financial institution, the account
 9   number, and other information the department requires. Taxes,
10   penalties, and interest due must be withdrawn from the account by
11   preprinted, consecutively numbered checks signed by a properly
12   authorized officer, partner, manager, employee, or member of the
13   taxpayer and made payable to the department. Monies deposited
14   in the account may not be commingled with other funds. The
15   department, at its discretion, may apply Section 12-54-250, if the
16   amount due from the taxpayer is twenty thousand dollars or more.
17      (D) When any a person required to post a bond or maintain a
18   separate account, or both, complies with all requirements of law
19   and regulations for a period of twenty-four consecutive months,
20   the department shall return the bond and cancel the bonding and
21   separate account requirements.
22      (b)(E) The department shall may serve the notice required by
23   subsection (b) of this section by certified mail, or by delivery by an
24   authorized agent of the department delivering the notice to the
25   person in hand or by leaving the notice at the person’s last or usual
26   place of abode or at his place of business or employment. For
27   corporations, partnerships, or trusts, the notice may be delivered by
28   certified mail, or by delivery by an authorized agent for of the
29   department delivering the notice to an officer, partner, or trustee in
30   hand, or by leaving the notice at the officer’s, partner’s, or
31   trustee’s last or usual place of abode or at his place of business or
32   employment.
33      (F) A person who fails to comply with this section is guilty of a
34   misdemeanor and, upon conviction, must be fined not more than
35   five hundred dollars or imprisoned not more than thirty days, or
36   both. Offenses under this section are triable in magistrate’s court.
37   These penalties are in addition to other penalties provided by law.”
38
39   SECTION 36. Section 12-54-227(A)(2) of the 1976 Code is
40   amended to read:
41
42      “(2) For purposes of this section, ‘delinquent tax claim’ means a
43   tax liability that is due and owing for a period longer than six

     [718]                             31
 1   months and for which the taxpayer has been given at least three
 2   notices requesting payment and for any subsequent tax debts
 3   issued, one notice of which has been sent by certified or registered
 4   mail. The notice sent by certified or registered mail must include
 5   includes a statement that the taxpayer’s delinquency may be
 6   referred to a collection agency in the taxpayer’s home state.”
 7
 8   SECTION 37. Section 12-54-240(B)(6) of the 1976 Code is
 9   amended to read:
10
11     “(6) disclosure of a deficiency assessment to a probate court or
12   to an attorney conducting a closing, the filing of a tax lien for
13   uncollected taxes, and the issuance of a notice of levy;”
14
15   SECTION 38. Section 12-56-120 of the 1976 Code is amended
16   to read:
17
18     “Section 12-56-120. The department is and Internal Revenue
19   Service are exempt from the notice and appeal procedures of this
20   chapter. The sole and exclusive appeal procedures procedure for
21   the setoff of any a debt owed to the department is governed by the
22   provisions of Chapter 60 of Title 12 which provides the sole and
23   exclusive remedy for these procedures. The appeal procedure in
24   connection with a liability to the Internal Revenue Service is
25   governed by Title 26 of the United States Code.”
26
27   SECTION 39. Section 12-58-185(A) of the 1976 Code is
28   amended to read:
29
30      “(A) The department, in its discretion, may accept installment
31   payment for amounts due for a period not to exceed one year from
32   the date the payment was due originally. Interest accrues during
33   the installment period, pursuant to Section 12-54-25. In addition,
34   the department may extend the time for payment of an amount due
35   it for a period not to exceed eighteen months from the date fixed
36   for the payment and, in exceptional cases, for a further period not
37   to exceed twelve months. An extension under pursuant to this
38   section may be granted only where if it is shown to the satisfaction
39   of the department that the payment of the amount due it upon the
40   date originally fixed for the payment will result in undue hardship
41   to the taxpayer.”
42


     [718]                            32
 1   SECTION 40. Section 12-60-90(C) of the 1976 Code is
 2   amended to read:
 3
 4      “(C) Taxpayers may be represented during the administrative tax
 5   process by:
 6         (1) the same individuals who can may represent them in
 7   administrative tax proceedings with the Internal Revenue Service
 8   pursuant to Section 10.3 (a), (b), and (c), Section 10.7 (a), (1) (c)(i)
 9   through (4) and (7) (c)(vi), and (c)(viii), and Section 10.7 (b) (d)
10   and (c) (e) of United States Treasury Department Circular No. 230;
11   and
12         (2) a real estate appraiser who is registered, licensed, or
13   certified pursuant to Chapter 60 of Title 40 during the
14   administrative tax process in a matter limited to questions
15   concerning the valuation of real property.”
16
17   SECTION 41. Section 4-37-30(A)(15) of the 1976 Code, as
18   amended by Act 368 of 2000, is further amended to read:
19
20      “(15) The revenues of the tax collected in each county
21   pursuant to this section must be remitted to the State Treasurer and
22   credited to a fund separate and distinct from the general fund of the
23   State. After deducting the amount of refunds made and costs to the
24   Department of Revenue of administering the tax, not to exceed one
25   percent of the revenues, the State Treasurer shall distribute the
26   revenues and all interest earned on the revenues while on deposit
27   with him quarterly to the county in which the tax is imposed and
28   these revenues and interest earnings must be used only for the
29   purpose stated in the imposition ordinance. The State Treasurer
30   may correct misallocation misallocations costs or refunds by
31   adjusting later distributions, but these adjustments must be made in
32   the same fiscal year as the misallocation misallocations. However,
33   allocations made as a result of city or county code errors must be
34   corrected prospectively.”
35
36   SECTION 42. A.Section 6(A) of Act 588 of 1994 is amended to
37   read:
38
39     “(A) The revenues of the tax collected in the county under this
40   act must be remitted to the State Treasurer and credited to a fund
41   separate and distinct from the general fund of the State. After
42   deducting the amount of refunds made and costs to the Department
43   of Revenue and Taxation of administering the tax, not to exceed

     [718]                              33
 1   one percent of the revenues, the State Treasurer shall distribute the
 2   revenues quarterly to the county treasurer who holds the debt
 3   service funds established for payment of principal and interest on
 4   the bonds to which the tax is applicable. The State Treasurer may
 5   correct misallocation misallocations costs or refunds by adjusting
 6   subsequent distributions, but these adjustments must be made in
 7   the same fiscal year as the misallocation. However, allocations
 8   made as a result of city or county code errors must be corrected
 9   prospectively.”
10
11   B. Section 6 of Act 588 of 1994, as last amended by Act 458 of
12   1998, is further amended by adding at the end:
13
14      “(D) Annually, in the month of June, funds collected by the
15   Department of Revenue from the Cherokee County School District
16   1 School Bond-Property Tax Relief Act which are not identified as
17   to the governmental unit due the tax after reasonable effort by the
18   department to determine the source of collection must be
19   transferred to the State Treasurer’s Office. The State Treasurer
20   shall distribute these funds to the county treasurer in the county
21   area in which the tax is imposed and the revenues must be used
22   only for the purposes stated in the imposition resolution. The State
23   Treasurer shall calculate this supplemental distribution on a
24   proportional basis based on the current fiscal year’s county area
25   revenue collections.”
26
27   SECTION 43. A.Section 7A of Act 441 of 2000 is amended to
28   read:
29
30      “(A) The revenues of the tax collected in the county under this
31   act must be remitted to the State Treasurer and credited to a fund
32   separate and distinct from the general fund of the State. After
33   deducting the amount of refunds made and costs to the department
34   of administering the tax, not to exceed one percent of the revenues,
35   the State Treasurer shall distribute the revenues quarterly to the
36   county treasurer, who shall hold the debt service funds for payment
37   of principal and interest on the bonds to which the tax is
38   applicable. The State Treasurer may correct misallocation costs or
39   refunds misallocations by adjusting subsequent distributions, but
40   these adjustments must be made in the same fiscal year as the
41   misallocation. However, allocations made as a result of city or
42   county code errors must be corrected prospectively.”
43

     [718]                            34
 1   B. Section 7 of Act 441 of 2000 is amended by adding at the end:
 2
 3      “(D) Annually, in the month of June, funds collected by the
 4   Department of Revenue from the Chesterfield County School
 5   District School Bond-Property Tax Relief Act which are not
 6   identified as to the governmental unit due the tax after reasonable
 7   effort by the department to determine the source of collection must
 8   be transferred to the State Treasurer’s Office. The State Treasurer
 9   shall distribute these funds to the county treasurer in the county
10   area in which the tax is imposed and the revenues must be used
11   only for the purposes stated in the imposition resolution. The State
12   Treasurer shall calculate this supplemental distribution on a
13   proportional basis based on the current fiscal year’s county area
14   revenue collections.”
15
16   SECTION 44. Section 12-4-580(D)(1) is amended to read:
17
18      “(1) ‘governmental entity’ means the State and any state agency,
19   board, committee, department, department, private or public
20   institution of higher learning; all political subdivisions of the
21   State; and all federal agencies, boards, and departments. ‘Political
22   subdivision’ includes the Municipal Association of South Carolina
23   and the South Carolina Association of Counties when these
24   organizations submit claims on behalf of their members.”
25
26   SECTION 45. RESERVED
27
28   SECTION 46. Chapter 43, Title 12, of the 1976 Code is
29   amended by adding:
30
31      “Section 12-43-285. (A) The governing body of a political
32   subdivision on whose behalf a property tax is billed by the county
33   auditor shall certify in writing to the county auditor that the
34   millage rate levied is in compliance with laws limiting the millage
35   rate imposed by that political subdivision.
36      (B) If a millage rate is in excess of that authorized by law, the
37   county treasurer shall either issue refunds or transfer the total
38   amount in excess of that authorized by law, upon collection, to a
39   separate, segregated fund, which must be credited to taxpayers in
40   the following year as instructed by the governing body of the
41   political subdivision on whose behalf the millage was levied. An
42   entity submitting a millage rate in excess of that authorized by law
43   shall pay the costs of implementing this subsection or a pro rata

     [718]                            35
 1   share of the costs if more than one entity submits an excessive
 2   millage rate.”
 3
 4   SECTION 47. Section 4-1-170 of the 1976 Code is amended to
 5   read:
 6
 7      “Section 4-1-170. (A) By written agreement, counties may
 8   develop jointly an industrial or business park with other counties
 9   within the geographical boundaries of one or more of the member
10   counties as provided in Section 13 of Article VIII of the
11   Constitution of this State. The written agreement entered into by
12   the participating counties must include provisions which:
13         (1) address sharing expenses of the park;
14         (2) specify by percentage the revenue to be allocated to each
15   county;
16         (3) specify the manner in which revenue must be distributed
17   to each of the taxing entities within each of the participating
18   counties.
19      (B) For the purpose of bonded indebtedness limitation and for
20   the purpose of computing the index of taxpaying ability pursuant
21   to Section 59-20-20(3), allocation of the assessed value of property
22   within the park to the participating counties and to each of the
23   taxing entities within the participating counties must be identical to
24   the allocation of revenue received and retained by each of the
25   counties and by each of the taxing entities within the participating
26   counties. Misallocations may be corrected by adjusting later
27   distributions, but these adjustments must be made in the same
28   fiscal year as the misallocations. Provided, however, that the
29   computation of bonded indebtedness limitation is subject to the
30   requirements of Section 4-29-68(E).
31      (C) If the industrial or business park encompasses all or a
32   portion of a municipality, the counties must obtain the consent of
33   the municipality prior to the creation of the multi-county industrial
34   park.”
35
36   SECTION 48. Section 12-51-90(B) of the 1976 Code, as last
37   amended by Act 334 of 2000, is further amended to read:
38
39      “(B) The lump sum amount of interest is due on the whole
40   amount of the delinquent tax sale based on the month during the
41   redemption period the property is redeemed and that rate relates
42   back to the beginning of the redemption period according to the
43   following schedule:

     [718]                             36
 1     Month of Redemption Period Amount of Interest Imposed
 2        Property Redeemed
 3     First three months            three percent of the bid amount
 4     Months four, five, and six    six percent of the bid amount
 5     Months seven, eight, and nine nine percent of the bid amount
 6     Last three months             twelve percent of the bid amount
 7     However, in every redemption, the amount of interest due must
 8   not exceed the amount of the bid on the property submitted on
 9   behalf of the forfeited land commission pursuant to Section
10   12-51-55.”
11
12   SECTION 49. Section 33-44-211(c) of the 1976 Code, as last
13   amended by Act 395 of 2000, is further amended to read:
14
15      “(c) The first annual report must be delivered to the Secretary of
16   State between January first and April first of the year following the
17   calendar year in which a limited liability company was organized
18   or a foreign company was authorized to transact business.
19   Subsequent annual reports must be delivered to the Secretary of
20   State on or before the fifteenth day of the third fourth month
21   following the close of the taxable year.”
22
23   SECTION 50. A.Section 12-36-2620(2) of the 1976 Code is
24   amended to read:
25
26       “(2) a one percent tax, which must be credited as provided in
27   Section 59-21-1010(B). The one percent tax specified in this item
28   does not apply to the issuance of certificates of title or other proof
29   of ownership to an individual eighty-five years of age or older
30   titling or registering a motor vehicle, motorcycle, boat, motor, or
31   airplane for his own personal use, if at the time of sale, the
32   individual requests the one percent exclusion from tax and
33   provides the retailer with proof of age.”
34
35   B. Section 12-36-2630(2) of the 1976 Code is amended to read:
36
37      “(2) a one percent tax, which must be credited as provided in
38   Section 59-21-1010(B). The one percent tax specified in this item
39   (2) does not apply to sales to an individual eighty-five years of age
40   or older purchasing tangible personal property for his own personal
41   use, if at the time of sale, the individual requests the one percent
42   exclusion from tax and provides the retailer with proof of age;
43   and”

     [718]                             37
 1   C. Section 12-36-2640(2) of the 1976 Code is amended to read:
 2
 3       “(2) a one percent tax which must be credited as provided in
 4   Section 59-21-1010(B). The one percent tax specified in this item
 5   does not apply to the issuance of certificates of title or other proof
 6   of ownership to an individual eighty-five years of age or older
 7   titling or registering a motor vehicle, motorcycle, boat, motor, or
 8   airplane for his own personal use, if at the time of sale, the
 9   individual requests the one percent exclusion from tax and
10   provides the retailer with proof of age.”
11
12   D.Article 25, Chapter 36, Title 12 of the 1976 Code is amended by
13   adding:
14
15      “Section 12-36-2646. (A) Retailers shall post a sign at each
16   entrance or each cash register which advises individuals
17   eighty-five years of age or older of the one percent exclusion from
18   tax available under Sections 12-36-2620, 12-36-2630, and
19   12-36-2640.
20      (B) A retailer who fails to post the required signs is subject to a
21   penalty of up to one hundred dollars for each month or portion of
22   the month the sign or signs are not posted. Continued failure to
23   post the signs after a written warning from the Department of
24   Revenue may result in revocation of the retailer’s retail license in
25   accordance with Section 12-54-90. Failure to post the signs does
26   not give rise to a cause of action by an individual eighty-five years
27   of age or older who failed to request the exclusion and provide
28   proof of age at the time of sale.”
29
30   SECTION 51. A. Section 4-12-30(D)(4)(a) of the 1976 Code, as
31   last amended by Act 399 of 2000, is further amended to read:
32
33      “(a) The assessment ratio may not be lower than four percent:
34           (i) in the case of a business which is investing at least two
35   hundred million dollars, which, when added to the previous
36   investments, results in a total investment of at least four hundred
37   million dollars, and which is creating at least two hundred new
38   full-time jobs at the site qualifying for the fee;
39           (ii) in the case of a business which is investing at least four
40   hundred million dollars and which is creating at least two hundred
41   new full-time jobs at a site qualifying for the fee; or
42         (iii) in the case of investments totaling at least four hundred
43   million dollars, in a county classified as either least developed or

     [718]                             38
 1   underdeveloped, by a limited liability company and/or one or more
 2   of the members or equity holders where a member or equity holder
 3   is creating, at a site qualifying for the fee, at least one hundred new
 4   full-time jobs with an average annual salary of at least forty
 5   thousand dollars within four years of the date of execution of the
 6   millage rate agreement; or
 7         (iv) in the case of a sponsor and a sponsor affiliate, who
 8   together are investing at least four hundred million dollars and
 9   creating at least two hundred new full time jobs at the site
10   qualifying for the fee and:
11            a. the investment by the sponsor affiliate is considered
12   necessary and suitable for the operation of the sponsor facility;
13            b. the sponsor affiliate is located contiguous to the sponsor
14   project;
15            c. one hundred percent of the output of the sponsor affiliate
16   is provided to the sponsor for the project; and
17            d. the sponsor affiliate is not considered a supplier of
18   manufactured parts or of any value added output of the sponsor.”
19
20   B. Section 4-12-30(G) of the 1976 Code, as last amended by Act
21   399 of 2000, is further amended to read:
22
23      “(G)(1) The county and the sponsor may enter into an
24   agreement to establish the millage rate, a millage rate agreement,
25   for purposes of calculating payments under subsection (D)(2)(a),
26   and the first five years under subsection (D)(2)(b). This millage
27   rate agreement must may be executed on the date of the
28   inducement agreement or at any time thereafter up to and
29   including, but not later than, the date of the initial lease agreement.
30   This millage rate agreement may be a separate agreement or may
31   be made a part of either the inducement agreement or the initial
32   lease agreement.
33         (2) The millage rate established pursuant to subsection
34   (G)(1) must cannot be lower than the a cumulative property tax
35   millage rate legally levied by or on behalf of all taxing entities
36   within which the subject property is to be located which is the
37   cumulative rate that is applicable during the period beginning on
38   the thirtieth day of June preceding the calendar year in which the
39   millage rate agreement is executed and ending on the date the
40   initial lease agreement is executed. If no a millage rate agreement
41   is not executed on or before the date of the initial lease agreement,
42   the millage rate is deemed considered to be the cumulative
43   property tax millage rate applicable on the thirtieth day of June

     [718]                             39
 1   preceding the calendar year in which the initial lease agreement is
 2   executed by the parties.
 3        (3) For purposes of determining the cumulative property tax
 4   millage rate under pursuant to subsection (G)(2), the millage rate
 5   assessed by a municipality must may not be included in the
 6   computation even if the subject property was located in the
 7   jurisdiction of the taxing entity as of June thirtieth preceding the
 8   calendar year in which the millage rate agreement is executed, if,
 9   pursuant to agreement on the part of the taxing entity at the time of
10   execution of the millage rate agreement, the taxing entity
11   de-annexes the subject property before execution of the initial
12   lease.”
13
14   C. Section 4-29-10(3) of the 1976 Code, as last amended by Act
15   151 of 1997, is further amended to read:
16
17      “(3) ‘Project’ means any land and any buildings and other
18   improvements on the land including, without limiting the
19   generality of the foregoing, water, sewage treatment and disposal
20   facilities, air pollution control facilities, and all other machinery,
21   apparatus, equipment, office facilities, and furnishings which are
22   considered necessary, suitable, or useful by the following investors
23   or any combination of them:
24         (a) any enterprise for the manufacturing, processing, or
25   assembling of any agricultural or manufactured products;
26         (b) any commercial enterprise engaged in storing,
27   warehousing, distributing, transporting, or selling products of
28   agriculture, mining, or industry, or engaged in providing laundry
29   services to hospitals, to convalescent homes, or to medical
30   treatment facilities of any type, public or private, within or outside
31   of the issuing county or incorporated municipality and within or
32   outside of the State;
33         (c) any enterprise for research in connection with any of the
34   foregoing or for the purpose of developing new products or new
35   processes or improving existing products or processes;
36         (d) any enterprise engaged in commercial business
37   including, but not limited to, wholesale, retail, or other mercantile
38   establishments; residential and mixed use developments of two
39   thousand five hundred acres or more; office buildings; computer
40   centers; tourism, sports, and recreational facilities; convention and
41   trade show facilities; and public lodging and restaurant facilities if
42   the primary purpose is to provide service in connection with
43   another facility qualifying under this subitem; and

     [718]                             40
 1         (e) any enlargement, improvement, or expansion of any
 2   existing facility in subitems (a), (b), (c), and (d) of this item.
 3      The term ‘project’ does not include facilities for an enterprise
 4   primarily engaged in the sale or distribution to the public of
 5   electricity, gas, or telephone services. A project may be located in
 6   one or more counties or incorporated municipalities. The term
 7   ‘project’ also includes any structure, building, machinery, system,
 8   land, interest in land, water right, or other property necessary or
 9   desirable to provide facilities to be owned and operated by any
10   person, firm, or corporation for the purpose of providing drinking
11   water, water, or wastewater treatment services or facilities to any
12   public body, agency, political subdivision, or special purpose
13   district. This definition is for purposes of industrial revenue bonds
14   only.”
15
16   D.Section 4-29-10 of the 1976 Code, as last amended by Act 151
17   of 1997, is further amended by adding at the end:
18
19      “(9) ‘Investor’ means one or more entities that sign the
20   inducement agreement with the county and also includes an
21   investor affiliate unless the context clearly indicates otherwise.
22      (10) ‘Investor affiliate’ means an entity that joins with, or is an
23   affiliate of, an investor and that participates in the investment in, or
24   financing of, a project.
25      (11) ‘Business’ means a single entity or two or more entities if
26   they meet the qualifications of Section 4-12-30.”
27
28   E. Section 4-29-67 of the 1976 Code, as last amended by Act 279
29   of 2000, is further amended to read:
30
31      “Section 4-29-67. (A) Notwithstanding the provisions of
32   Section 4-29-60, in the case of a financing agreement in the form
33   of one or more lease agreements for a project qualifying under
34   pursuant to subsection (B), the county and the investor may enter
35   into an inducement agreement which that provides for payment of
36   a fee in lieu of taxes (fee) as provided in this section. All A
37   references reference in this section to a lease agreement shall be
38   deemed also to refer is considered a reference also to a lease
39   purchase agreement.
40      (B) In order for For property to qualify for the fee as provided
41   in subsection (D)(2):
42        (1) Title to the property must be held by the county or, in the
43   case of a project located in an industrial development park as

     [718]                              41
 1   defined in Section 4-1-170, title may be held by more than one
 2   county, provided each county is a member of the industrial
 3   development park. Any real Real property transferred to the
 4   county must include a legal description and plat of the property.
 5         (2) The investment must be a project which that is located in
 6   a single county or an industrial development park as defined in
 7   Section 4-1-170. A project located on a contiguous tract of land in
 8   more than one county, but not in such an industrial development
 9   park, may qualify for the fee provided if:
10            (a) the counties agree on the terms of the fee and the
11   distribution of the fee payment;
12            (b) the minimum millage rate cannot be is not lower than
13   the millage rate applicable to the county in which the greatest
14   amount of investment occurs; and
15            (c) all such the counties must be parties to all agreements
16   establishing the terms of the fee.
17         (3) The minimum level of investment must be at least
18   forty-five million dollars and must be invested within the time
19   period provided in subsection (C).
20         (4)(a) Except as provided in subsections (B)(4)(b) and
21   (D)(4)(a), the investment must be made by a single entity. For
22   purposes of this section, (i) any partnership or other association
23   which properly files its South Carolina income tax returns as a
24   partnership for South Carolina income tax purposes will be treated
25   as a single entity and as a partnership, and (ii) any corporation or
26   other association which properly files its South Carolina income
27   tax returns as a corporation for South Carolina income tax
28   purposes will be treated as a single entity and as a corporation. A
29   corporation and a partnership, which partnership is a “controlled
30   partnership” of the corporation, as provided under Section
31   707(b)(1) of the Internal Revenue Code as defined in Chapter 6 of
32   Title 12, as of the date of the execution of the inducement
33   agreement, and both of which will construct their projects on the
34   same site qualifying for the fee, must be treated as a single entity
35   for purposes of this subsection and subsections (B)(3) and (D)(4).
36   Investment may be made by a business or a combination of
37   businesses, except that each business must invest at least five
38   million dollars at the project.
39            (b)(i) The members of the same controlled group of
40   corporations can qualify for the fee if the combined investment in
41   the county by the members meets the minimum investment
42   requirements. The county and the members investors and investor
43   affiliates who are part of the inducement agreement may agree that

     [718]                            42
 1   any investments by other members of the controlled group investor
 2   affiliates within the time periods provided in subsection (C)(1) and
 3   (2) shall qualify for the payment regardless of whether or not the
 4   member investor affiliate was part of the inducement agreement;
 5   provided, however, in order. to To qualify for the fee, such other
 6   members of the controlled group investor affiliates must be
 7   specifically approved specifically by the county and must agree to
 8   be bound by agreements with the county relating to the fee;
 9   provided, however, such controlled group members except that
10   investor affiliates need not be bound by agreements, or portions of
11   agreements, to the extent such those agreements do not affect the
12   county; provided,. further, that with the consent of the county,
13   such members will not be Investor affiliates are not bound by
14   agreements or portions of agreements which do affect the county.,
15   if the affected county consents not to bind them. Except as
16   otherwise provided in subsection (B)(2), the investments under
17   pursuant to this subsection (B)(4)(b) must be within the same
18   county or industrial park at the same project. Any controlled
19   group member which is claiming the fee must invest at least ten
20   million dollars in the county or industrial park.
21               (ii) The Department of Revenue must be notified in
22   writing of all members investors and investor affiliates which that
23   have investments subject to the fee before or within thirty days
24   after the execution of the lease agreement covering the investment
25   by the member investor or investor affiliate. The Department of
26   Revenue may extend the thirty-day period upon written request.
27   Failure to meet this notice requirement will does not affect
28   adversely affect the fee, but a penalty of up to ten thousand dollars
29   a month or portion of a month with the total penalty not to exceed
30   one hundred twenty thousand dollars may be assessed by the
31   Department of Revenue for late notification for up to ten thousand
32   dollars a month or portion of a month with the total penalty not to
33   exceed one hundred twenty thousand dollars. Members of the
34   controlled group must provide the information considered
35   necessary by the Department of Revenue to ensure that the
36   investors are part of a controlled group.
37              (iii) If, at any time, the controlled group or any former
38   member (who has left the controlled group) no longer has the
39   minimum forty-five million dollars of investment (without regard
40   to depreciation), that group or former member no longer holding
41   the minimum amount of investment as provided in subsection
42   (B)(3) (without regard to depreciation) will investment at the


     [718]                            43
 1   project falls below forty-five million dollars, the investor and
 2   investor affiliate no longer qualify for the fee.
 3              (iv) For purposes of this section, ‘controlled group’ or
 4   ‘controlled group of corporations’ shall have the meaning provided
 5   under Section 1563(a) of the Internal Revenue Code as defined in
 6   Chapter 6 of Title 12 as of the date of the execution of the
 7   inducement agreement (without regard to amendments or
 8   replacements thereof), without regard to subsections (a)(4) and (b)
 9   of Section 1563 If, at any time, a business no longer has a
10   minimum investment of five million dollars at the project, without
11   regard to depreciation, the investor or investor affiliate no longer
12   qualifies for the fee.
13      (C)(1) From the end of the property tax year in which the
14   investor and the county execute an inducement agreement, the
15   investor has seven years in which to enter into an initial lease
16   agreement with the county.
17        (2)(a) From the end of the property tax year in which the
18   investor and the county execute the initial lease agreement, the
19   investor has five years in which to complete its investment for
20   purposes of qualifying for this section. If the investor does not
21   anticipate completing the project within five years, the investor
22   may apply to the county before the end of the five-year period for
23   an extension of time, up to two years, to complete the project. If
24   the The county county’s agrees agreement to grant the extension,
25   the county must do so be in writing, and a copy must be delivered
26   to the Department of Revenue within thirty days of the date the
27   extension was granted. The extension may not exceed two years in
28   which to complete the project.
29           (b) There is no An extension allowed for of the five-year
30   period in which to meet the minimum level of investment is not
31   allowed. If the minimum level of investment is not met within five
32   years, all property under covered by the lease agreement or
33   agreements reverts retroactively to the payments required by
34   Section 4-29-60. The difference between the fee actually paid by
35   the investor and the payment which is due under pursuant to
36   Section 4-29-60 is subject to interest, as provided in Section
37   12-54-25(D).
38           (c) Unless property qualifies as replacement property
39   under pursuant to a contract provision enacted pursuant to
40   subsection (F)(2), any property placed in service after the five-year
41   period, or seven years in the case of a project which has received
42   an extension, is not part of the fee agreement under pursuant to


     [718]                            44
 1   subsection (D)(2) and is subject to the payments required by
 2   Section 4-29-60 if the county has title to:
 3               (i) the property,; or
 4              (ii) to property taxes, as provided in Chapter 37 of Title
 5   12, if the investor has title to the property.
 6            (d) For purposes of those businesses qualifying under
 7   pursuant to Section 4-29-67(D)(4), the five-year period referred to
 8   in this subsection is eight years and the seven-year period is ten
 9   years.
10         (3) The annual fee provided by subsection (D)(2) is
11   available for no more than twenty years. For projects which are
12   completed and placed in service during a period of more than one
13   year, each year’s investment may be subject to the fee in
14   subsection (D)(2) for twenty years to a maximum total of
15   twenty-seven years for the fee for a single project which has been
16   granted an extension. For those businesses qualifying under
17   pursuant to subsection (D)(4), the annual fee is available for no
18   more than thirty years and for those projects placed in service in
19   more than one year, the annual fee is available for a maximum of
20   thirty-seven years.
21         (4) Annually, during During the time period allowed to meet
22   the minimum investment level, the investor annually must provide
23   inform the total amount invested to the appropriate county official
24   of the total amount invested.
25      (D) The inducement agreement must provide for fee payments,
26   to the extent applicable, as follows:
27         (1)(a) Any property, If title to which is of property is
28   transferred to the county, will be the property is subject, before
29   being placed in service, to an annual fee payment as provided in
30   Section 4-29-60 before being placed in service.
31            (b) Any undeveloped land, If title to which undeveloped
32   land, is transferred to the county, will be the undeveloped land is
33   subject, before being developed and placed in service, to an annual
34   fee payment as provided in Section 4-29-60 developed land is
35   before being developed and placed in service. The time during
36   which fee payments are made under pursuant to Section 4-29-60
37   will not be considered are not part of the maximum periods
38   provided in subsections subsection (C)(2) and (C)(3), and no a
39   lease shall be considered is not an ‘initial lease agreement’ for
40   purposes of this section unless and until the first day of the
41   calendar year for which a fee payment is due under pursuant to
42   subsection (D)(2) in connection with such the lease.


     [718]                            45
 1         (2) After property qualifying under pursuant subsection (B)
 2   is placed in service, an annual fee payment, determined in
 3   accordance with one of the following, is due:
 4           (a) an annual payment in an amount not less than the
 5   property taxes that would be due on the project if it were taxable,
 6   but using:
 7                (i) an assessment ratio of not less than at least six
 8   percent, except as provided in subsection (D)(4),; and
 9               (ii) a fixed millage rate as provided in subsection (G),:
10   and
11              (iii) a fair market value estimate determined by the
12   South Carolina Department of Revenue as follows:. (i) The
13   estimate for real property using is the original income tax basis for
14   South Carolina income tax purposes without regard to
15   depreciation. However, if real property is constructed for the fee
16   or is purchased in an arm’s length transaction, fair market value is
17   deemed to equal equals the original income tax basis, otherwise the
18   Department of Revenue will shall determine fair market value by
19   appraisal; and. The estimate (ii) for personal property using is the
20   original income tax basis for South Carolina income tax purposes,
21   less depreciation allowable for property tax purposes,; except that
22   the investor is not entitled to any extraordinary obsolescence.;
23           (b) an annual payment based on any an alternative
24   arrangement yielding a net present value of the sum of the fees for
25   the life of the agreement not less than the net present value of the
26   fee schedule as calculated under pursuant to subsection (D)(2)(a).
27   Net present value calculations performed under pursuant to this
28   subsection must use a discount rate equivalent to the yield in effect
29   for new or existing United States Treasury bonds of similar
30   maturity as published during the month in which the inducement
31   agreement is executed. If no yield is available for the month in
32   which the inducement agreement is executed, the last published
33   yield for the appropriate maturity must be used. If there are no
34   bonds of appropriate maturity available, bonds of different
35   maturities may be averaged to obtain the appropriate maturity.; or
36           (c) an annual payment using a formula that results in a fee
37   not less than the amount required pursuant to subsection (D)(2)(a),
38   except that every fifth year the applicable millage rate is allowed to
39   may increase or decrease in step with the average actual millage
40   rate applicable in the district where the project is located based on
41   the preceding five-year period.
42         (3) At the conclusion of the payments determined pursuant
43   to items (1) and (2) of this subsection, an annual payment the

     [718]                             46
 1   annual fee payment is equal to the taxes due on the project as if it
 2   were taxable. When the property is no longer subject to the fee
 3   under pursuant to subsection (D)(2), the fee or property taxes must
 4   be assessed:
 5            (a) with respect to real property, based on the fair market
 6   value as of the latest reassessment date for similar taxable
 7   property; and
 8            (b) with respect to personal property, based on the
 9   then-depreciated value applicable to such the property under the
10   fee, and thereafter after that continuing with the South Carolina
11   property tax depreciation schedule.
12         (4)(a) The assessment ratio may not be lower than must be at
13   least four percent:
14                 (i) in the case of a business which is investing at least
15   two hundred million dollars, which, when added to the previous
16   investments, results resulting in a total investment of at least four
17   hundred million dollars when added to previous investments, and
18   which is creating at least two hundred new full-time jobs at the site
19   qualifying for the fee;
20                (ii) in the case of a business which is investing at least
21   four hundred million dollars and which is creating at least two
22   hundred new full-time jobs at a site qualifying for the fee; or
23               (iii) in the case of investments totalling totaling at least
24   four hundred million dollars, in a county classified as either least
25   developed or underdeveloped, by a limited liability company
26   and/or or one or more of its members or equity holders, or both of
27   them, where if the member or equity holder is creating, at the site
28   qualifying for the fee, at least one hundred new full-time jobs, at
29   the site qualifying for the fee, with an annual average salary of at
30   least forty thousand dollars within four years of the date of
31   execution of a millage rate agreement.; or
32               (iv) in the case of a business which is investing at least
33   six hundred million dollars in this State.
34                (v) in the case of investments totaling at least four
35   hundred million dollars and creating at least two hundred new
36   full-time jobs at the site qualifying for the fee and:
37                   a. the investment by the investor affiliate is considered
38   necessary and suitable for the operation of the sponsor facility;
39                   b. the investor affiliate is located contiguous to the
40   investor project;
41                   c. one hundred percent of the output of the investor
42   affiliate is provided to the investor for the project; and


     [718]                              47
 1                 d. the investor affiliate is not considered a supplier of
 2   manufactured parts or of any value added output of the investor.
 3           (b) The new full-time jobs requirement of this item does
 4   not apply in the case of a taxpayer which business that paid more
 5   than fifty percent of all property taxes actually collected in the
 6   county for more than the twenty-five years ending on the date of
 7   the agreement paid more than fifty percent of all property taxes
 8   actually collected in the county.
 9           (c) In an instance in which the governing body of a
10   county, has by contractual agreement, has provided for a change in
11   fee-in-lieu of taxes arrangements conditioned on a future
12   legislative enactment, any a new enactment shall does not bind the
13   original parties to the agreement unless the change is ratified by
14   the governing body of the county.
15        (5) Notwithstanding the use of the term ‘assessment ratio’, a
16   business an investor qualifying under pursuant to items item (2) or
17   (4) of this subsection may negotiate an inducement agreement with
18   a county using differing assessment ratios for different assessment
19   years covered by the agreement. However, the The lowest
20   assessment ratio allowed is the lowest ratio for which the business
21   investor may qualify under this section.
22      (E) Calculations pursuant to subsection (D)(2) must be made
23   on the basis that the property, if taxable, is allowed all applicable
24   property tax exemptions except the exemption allowed under
25   pursuant to Section 3(g) of Article X of the Constitution of this
26   State and the exemption exemptions allowed pursuant to Section
27   12-37-220B(32) and (34).
28      (F) With regard to calculation of the fee provided in subsection
29   (D)(2), the inducement agreement may provide for the disposal of
30   property and the replacement of property subject to the fee as
31   follows:
32        (1)(a) If an investor disposes of property subject to the fee,
33   the fee must be reduced by the amount of the fee applicable to that
34   property. (b) Property is disposed of only when it is scrapped or
35   sold in accordance with the lease agreement. (c) If the investor
36   used any method to compute the fee other than that provided in
37   subsection (D)(2)(a), the fee on the property which was disposed
38   of must be recomputed in accordance with subsection (D)(2)(a)
39   and to the extent that the amount which that would have been paid
40   under pursuant to subsection (D)(2)(a) exceeds the fee actually
41   paid by the investor, the investor must pay the difference with the
42   next fee payment due after the property is disposed of. If the
43   investor used the method provided in subsection (D)(2)(c), the

     [718]                             48
 1   millage rate provided in subsection (D)(2)(c) must be used to
 2   calculate the amount which would have been paid under pursuant
 3   to subsection (D)(2)(a). (d) If there is no provision in the
 4   agreement dealing with the disposal of property in accordance with
 5   this subsection, the fee remains fixed and no adjustment to the fee
 6   is allowed for disposed property.
 7         (2) Any property Property which is placed in service as a
 8   replacement for property which that is subject to the fee payment
 9   may become part of the fee payment as provided in this item:
10            (a) Replacement property does not have to serve the same
11   may have a function as that differs from the property it is
12   replacing. Replacement property is deemed considered to replace
13   the oldest real or personal property subject to the fee, whether real
14   or personal, which is and disposed of in the same property tax year
15   as the replacement property is placed in service. Replacement
16   property qualifies for fee treatment provided in subsection (D)(2)
17   only up to the original income tax basis of fee property it is
18   replacing replaces. More than one piece of replacement property
19   can may replace a single piece of fee property. To the extent that
20   the income tax basis of the replacement property exceeds the
21   original income tax basis of the property which it is replacing
22   replaces, the excess amount is subject to payments as provided in
23   Section 4-29-60. Replacement property is entitled to the fee
24   payment for the period of time remaining on the twenty-year fee
25   period for the property which it is replacing replaces.
26            (b) The new replacement property which that qualifies for
27   the fee provided in subsection (D)(2) is recorded using its income
28   tax basis, and the fee is calculated using the millage rate and
29   assessment ratio provided on the original fee property. The fee
30   payment for replacement property must be based on subsections
31   subsection (D)(2)(a) or (D)(2)(c), if the investor originally used
32   this that method, without regard to present value.
33            (c) In order to To qualify as replacement property, title to
34   the replacement property must be held by the county.
35            (d) If there is no provision in the inducement agreement
36   dealing with replacement property, any property placed in service
37   after the time period allowed for investments as provided by
38   subsection (C)(2), is subject to the payments required by Section
39   4-29-60 if the county has title to:
40                (i) the property,; or
41               (ii) to property taxes, as provided in Chapter 37 of Title
42   12, if the investor has title to the property.


     [718]                             49
 1      (G)(1) The county and the investor may enter into an agreement
 2   to establish the millage rate (millage rate agreement) for purposes
 3   of calculating payments under pursuant to subsection (D)(2)(a) and
 4   the first five years under pursuant to subsection (D)(2)(c). This
 5   millage rate agreement must may be executed on the date of the
 6   inducement agreement or at anytime any time thereafter up to and
 7   including, but not later than, the date of the initial lease agreement.
 8   This millage rate agreement may be a separate agreement or may
 9   be made a part of either the inducement agreement or the initial
10   lease agreement.
11         (2) The millage rate established pursuant to item (1) of this
12   subsection cannot must be lower than the a cumulative property
13   tax millage rate legally levied by or on behalf of all taxing entities
14   within which the subject property is to be located which is the
15   cumulative rate that is applicable during the period beginning on
16   the thirtieth day of June preceding the calendar year in which the
17   millage rate agreement is executed and ending on the date the
18   initial lease agreement is executed. If no a millage rate agreement
19   is not executed on or before the date of the initial lease agreement,
20   the millage rate is deemed to be the cumulative property tax
21   millage rate applicable on the thirtieth day of June preceding the
22   calendar year in which the initial lease agreement is executed by
23   the parties.
24      (H)(1) Upon agreement of the parties county, investors, and
25   investor affiliates, and except as provided in subsection (H)(2), an
26   inducement agreement, a millage rate agreement, or both, may be
27   amended or terminated and replaced with regard to all matters
28   including, but not limited to, the addition or removal of controlled
29   group members investors or investor affiliates.
30         (2) No An amendment or a replacement of an inducement
31   agreement or millage rate agreement may not be used to change
32   the millage rate, discount rate, assessment ratio, or length duration
33   of the agreement under any such agreement.; However, except that
34   an existing inducement agreements agreement which that have has
35   not yet been implemented by the execution and delivery of a
36   millage rate agreement or a lease purchase agreement, may be
37   amended up to the date of execution and delivery of a millage rate
38   agreement or a lease purchase agreement in the discretion of the
39   governing body.
40      (I) Investment expenditures incurred by any an investor in
41   connection with a project, or relevant phase of a project for those
42   projects completed and placed in service in more than one year,


     [718]                             50
 1   qualify as expenditures subject to the fee in subsection (D)(2), so
 2   long as these expenditures are incurred:
 3         (1) any time after, or within sixty days before, the county
 4   takes action reflecting or identifying the project or proposed
 5   project or investment including, but not limited to, the adoption of
 6   an inducement or similar resolution by county council; and
 7         (2) before the end of the applicable time period for
 8   investments referenced in subsections subsection (C)(2) and
 9   (C)(3).
10      An inducement agreement must be executed within two years
11   after the date on which the county takes action reflecting or
12   identifying the project or proposed project or investment including,
13   but not limited to, the adoption of an inducement or similar
14   resolution by county council;           otherwise, only investment
15   expenditures made or incurred by any an investor after the date of
16   such the inducement agreement in connection with a project shall
17   qualify as expenditures subject to the fee in subsection (D)(2).
18      (J)(1) Subject to subsection (K), project investment
19   expenditures which are incurred within the applicable time period
20   provided in subsection (I) by an entity investor whose investments
21   are not being computed in at the level of investment for purposes
22   of subsections subsection (B) or (C) shall qualify as investment
23   expenditures subject to the fee in subsection (D)(2) where if the:
24           (a) such expenditures are part of the original cost of the
25   property which is that is transferred, within the applicable time
26   period provided in subsection (I), to one or more other entities
27   which are members of the same controlled group as the transferor
28   entity and investors or investor affiliates whose investments are
29   being computed in at the level of investment for purposes of
30   subsections subsection (B) or (C); and
31           (b) such property would have qualified for the fee in
32   subsection (D)(2) if it had been initially acquired by the transferee
33   entity rather than instead of the transferor entity.
34         (2) The income tax basis of such the property immediately
35   before such the transfer must equal the income tax basis of such
36   the property immediately after such the transfer; provided,
37   however, except that, to the extent income tax basis of such the
38   property immediately after such the transfer unintentionally
39   exceeds the income tax basis of such the property immediately
40   before such the transfer, such the excess shall be is subject to
41   payments under pursuant to Section 4-29-60.
42         (3) The county must agree to any an inclusion in the fee of
43   the property described in subsection (J)(1).

     [718]                            51
 1      (K)(1) Property which has been previously subject to property
 2   taxes in South Carolina will does not qualify for the fee except as
 3   provided in this subsection:
 4           (a) land, excluding improvements thereon on it, on which
 5   a new project will be is located may qualify for the fee even if it
 6   has previously been subject to South Carolina property taxes;
 7           (b) property which that has been subject previously to
 8   South Carolina property taxes, but which has never been placed in
 9   service in South Carolina, may qualify for the fee; and
10           (c) property which has been placed in service in South
11   Carolina and subject to South Carolina property taxes which that is
12   purchased in a transaction other than between any of the entities
13   specified in Section 267(b) of the Internal Revenue Code, as
14   defined under pursuant to Chapter 6 of Title 12 as of the time of
15   the transfer, may qualify for the fee provided if the fee-paying
16   entity investor invests at least an additional forty-five million
17   dollars in the project.
18         (2) Repairs, alterations, or modifications to real or personal
19   property which are not subject to a fee will are not be eligible for a
20   fee, even if they are capitalized expenditures, except for
21   modifications to existing real property improvements which
22   constitute constituting an expansion of such the improvements.
23      (L)(1) For a project not located in an industrial development
24   park as defined in Section 4-1-170, distribution of the fee in lieu of
25   taxes on the project must be made in the same manner and
26   proportion that the millage levied for school and other purposes
27   would be distributed if the property were taxable. For this
28   purpose, the relative proportions must be calculated based on the
29   following procedure: holding constant the millage rate set in
30   subsection (G) and using all tax abatements automatically granted
31   for taxable property, a full schedule of the property taxes that
32   would otherwise have been distributed to each millage-levying
33   entity in the county must be prepared for the life of the agreement,
34   for the maximum time period allowed under pursuant to (C)(3).
35   The property taxes which that would have been paid on the
36   property if it was were owned by the investor to each
37   millage-levying entity as a percentage of the total of such the
38   property taxes for all such the entities determines each entity’s
39   relative shares of each year’s fee payment for all subsequent years
40   of the agreement.
41         (2) For a project located in an industrial development park as
42   defined in Section 4-1-170, distribution of the fee in lieu of taxes


     [718]                             52
 1   on the project must be made in the manner provided for by the
 2   agreement establishing the industrial development park.
 3         (3) A county or municipality or special purpose district that
 4   receives and retains revenues from a payment in lieu of taxes may
 5   use a portion of this revenue for the purposes outlined in Section
 6   4-29-68 without the requirement of issuing special source revenue
 7   bonds or the requirements of Section 4-29-68(A)(4).
 8      (M) As a directly foreseeable result of negotiating the fee, gross
 9   revenue of a school district in which a project is located in any
10   year a fee negotiated pursuant to this section is paid, may not be
11   less than gross revenues of the district in the year before the first
12   year for which a fee in lieu of taxes is paid. In negotiating the fee,
13   the parties shall assume that the formulas for the distribution of
14   state aid at the time of the execution of the inducement agreement
15   must remain unchanged for the duration of the lease agreement.
16      (N) Projects on which a fee in lieu of taxes is paid pursuant to
17   this section are considered taxable property at the level of the
18   negotiated payments for purposes of bonded indebtedness pursuant
19   to Sections 14 and 15 of Article X of the Constitution of this State,
20   and for purposes of computing the index of taxpaying ability
21   pursuant to Section 59-20-20(3). However, for a project located in
22   an industrial development park as defined in Section 4-1-170,
23   projects are considered taxable property in the manner provided in
24   Section 4-1-170 for purposes of bonded indebtedness pursuant to
25   Sections 14 and 15 of Article X of the Constitution of this State,
26   and for purposes of computing the index of taxpaying ability
27   pursuant to Section 59-20-20(3). Provided, however, that the
28   computation of bonded indebtedness limitation is subject to the
29   requirements of Section 4-29-68(E).
30      (O)(1) Any An interest in an inducement agreement, millage
31   rate agreement, and lease agreement, and property to which the
32   agreement relates, may be transferred to any other another entity at
33   any time. Notwithstanding any other another provision of this
34   chapter, any an equity interest in any an entity investor or investor
35   affiliate with an interest in any inducement agreement, millage rate
36   agreement, or lease agreement may be transferred to any other
37   another entity or person at any time.
38         (2) A single entity, or two or more entities which are
39   members of a controlled group, An investor or investor affiliate
40   may enter into any a lending, financing, security, or similar
41   arrangement, or succession of such arrangements, with any a
42   financing entity, concerning all or part of a project and may enter
43   into any a sale-leaseback arrangement, including without

     [718]                             53
 1   limitation, an assignment, a sublease, or similar arrangement, or
 2   succession of such arrangements, with one or more financing
 3   entities, concerning all or part of a project, regardless of the
 4   identity of the income tax owner of the property which is subject to
 5   the fee payment under pursuant to subsection (D)(2). Even though
 6   income tax basis is changed for income tax purposes, neither the
 7   original transfer to the financing entity nor the later transfer from
 8   the financing entity back to the original transferor or members of
 9   its controlled group, investor or investor affiliate pursuant to terms
10   in the sale-leaseback agreement, affects the amount of the fee due.
11         (3) All A transfers transfer undertaken with respect to the
12   project to effect a financing authorized under by subsection (O)
13   must meet the following requirements:
14           (a) The Department of Revenue must receive written
15   notification, in writing within sixty days after the transfer, of the
16   identity of each transferee and other information required by the
17   department with the appropriate returns. Failure to meet this
18   notice requirement will does not affect adversely affect the fee, but
19   a penalty up to ten thousand dollars a year or portion of a year up
20   to a maximum penalty of one hundred twenty thousand dollars
21   may be assessed by the department for late notification for up to
22   ten thousand dollars a year or portion of a year up to a maximum
23   penalty of one hundred twenty thousand dollars.
24           (b) If the financing entity is the income tax owner of
25   property, either:
26              (i) the financing entity is primarily liable for the fee as
27   to that portion of the project to which the transfer relates with the
28   original transferor remaining secondarily liable for the payment of
29   the fee; or
30              (ii) the original transferor must agree to continue to be
31   primarily liable for the payment of the fee as to that portion of the
32   project to which the transfer relates.
33         (4) Before an investor may transfer an inducement
34   agreement, millage rate agreement, lease agreement, or the assets
35   subject to the lease agreement, it must obtain the approval of the
36   county with which it entered into the original inducement
37   agreement, millage rate agreement, or lease agreement. However,
38   no such That approval is not required in connection with transfers
39   to investor affiliates or other financing-related transfers.
40      (P) Reserved.
41      (Q) Reserved.
42      (R) For purposes of subsections (O)(1)(a) and (P), and subject
43   to subsection (U), each transferee, with respect to a project which

     [718]                             54
 1   is the subject of a transfer, shall be considered to have made
 2   amounts of qualified investments represented by the property
 3   interest which is subject to the fee and which is transferred,
 4   without regard to depreciation.
 5      (S) Reserved.
 6      (T)(P) No An inducement agreement, a millage rate agreement,
 7   or a lease agreement, nor or the rights of any an entity investor or
 8   investor affiliate pursuant to any such that agreement, including,
 9   without limitation, the availability of the subsection (D)(2) fee,
10   shall may not be adversely affected adversely if the bonds issued
11   pursuant to any such that agreement are purchased by one or more
12   of the entities which that are or become parties to any such
13   agreement investor or investor affiliates.
14      (U)(1)(Q) Notwithstanding any other provision of this section,
15   if If an investor fails to make the minimum investment required
16   under by subsection (D)(2) within the time provided in subsection
17   (C)(2), then if and to the extent allowed pursuant to an applicable
18   agreement between the investor and the county, the investor is
19   entitled to the benefits of Chapter 12 of this title if and to the
20   extent allowed pursuant to an applicable agreement between the
21   investor and the county, and if the requirements of subsection
22   (B(4)(a) are satisfied. Otherwise, the fee provided in subsection
23   (D)(2) is no longer available and the investor is required to must
24   make the payments which are due under pursuant to Section
25   4-29-60 for the remainder of the lease period.
26         (2) Notwithstanding any other provision of this section, if at
27   any time following the period provided in subsection (C)(2), the
28   investment based income tax basis without regard to depreciation
29   falls below the forty-five million dollar minimum investment to
30   which the fee relates and is held by an entity or controlled group of
31   entities, then if and to the extent allowed pursuant to any
32   applicable agreement between the investor and the county, the
33   investor is entitled to the benefits provided under Chapter 12 of
34   this title. Otherwise, the fee provided in subsection (D)(2) is no
35   longer available and the investor is required to make the payments
36   which are due under Section 4-29-60 for the remainder of the lease
37   period.
38      (V)(R) The minimum amount of the initial investment provided
39   in subsection (B)(2) (B)(3) of this section may not be reduced
40   except by a special vote which, for purposes of this section, means
41   an affirmative vote in each branch of the General Assembly by
42   two-thirds of the members present and voting, but not less than
43   three-fifths of the total membership in each branch.

     [718]                            55
 1      (W)(S)(1) The investor shall file the returns, contracts, and
 2   other information which that may be required by the Department
 3   of Revenue.
 4        (2) Fee payments, and returns calculating fee payments, are
 5   due at the same time as property tax payments and property tax
 6   returns would be due if the property were owned by the party
 7   investor or investor affiliate obligated to make such the fee
 8   payments and file such returns.
 9        (3) Failure to make a timely fee payment and file required
10   returns shall result results in penalties being assessed as if the
11   payment or return was were a property tax payment or return.
12        (4) The Department of Revenue may issue the rulings and
13   promulgate regulations it determines necessary or appropriate to
14   carry out the purpose of this section.
15        (5) The provisions of Chapters 4 and 54 of Title 12,
16   applicable to property taxes, shall apply to this section;, and, for
17   purposes of such that application, the fee shall be considered is
18   considered a property tax. Sections 12-54-20, 12-54-80, and
19   12-54-155 do not apply to this section.
20        (6) Within thirty days of the date of execution of an
21   inducement or lease agreement, a copy of the agreement must be
22   filed with the Department of Revenue and the county auditors
23   auditor and the county assessors assessor for the every county or
24   counties in which the project is located. If the project is located in
25   a multicounty park, the agreements must be filed with the auditors
26   and assessors for all counties participating in the multicounty park.
27      (X)(T) Except as otherwise expressly provided in subsection
28   (C)(2), any a loss of fee benefits under pursuant to this section
29   shall be is prospective only from the date of noncompliance and,
30   subject to subsection (U)(Q), only with respect to that portion of
31   the project to which such the noncompliance relates; provided,
32   however, except that such the loss of fee benefits cannot may not
33   result in the recovery from the fee-paying entity investor and
34   investor affiliate of fee payments for more than:
35        (1) three years from the date a return concerning the fee is
36   filed for the time period during which the noncompliance occurs,.
37   absent a A showing of bad faith noncompliance, in which case
38   such increases the three-year period shall instead be to a ten-year
39   period; or
40        (2) ten years if no such a return is not filed for the time
41   period during which the noncompliance occurs.
42      (Y)(U) Section 4-29-65 shall be inapplicable does not apply with
43   respect to this section. All references in this section to taxes shall

     [718]                             56
 1   be considered to mean means South Carolina taxes unless
 2   otherwise expressly stated.
 3     (Z) Reserved.
 4     (AA)(V)(1) Notwithstanding any other another provision of this
 5   section, in the case of a qualified recycling facility the annual fee is
 6   available for no more than thirty years, and for those projects
 7   constructed or placed in service during a period of more than one
 8   year, the annual fee is available for a maximum of thirty-seven
 9   years.
10         (2) Notwithstanding any other another provision of this
11   section, for a qualified recycling facility, the assessment ratio may
12   not be less than must be at least three percent.
13         (3) Any machinery and equipment foundations, port
14   facilities, or railroad track systems used, or to be used, for a
15   qualified recycling facility is considered tangible personal
16   property.
17         (4) Notwithstanding subsections (F) and (I) of this section,
18   the total costs of all investments made for a qualified recycling
19   facility are eligible for fee payments as provided in this section.
20         (5) For purposes of any fees that may be due on
21   undeveloped property for which title has been transferred to the
22   county by or for the owner or operator of a qualified recycling
23   facility, the assessment ratio is three percent.
24         (6) Notwithstanding subsection (D)(2)(b) of this section, in
25   the case of a qualified recycling facility, net present value
26   calculations performed under pursuant to the that subsection must
27   use a discount rate equivalent to the yield in effect for new or
28   existing United States Treasury bonds of similar maturity as
29   published on any day selected by the investor during the year in
30   which assets are placed into service or in which the inducement
31   agreement is executed.
32         (7) As used in this subsection, ‘qualified recycling facility’
33   and ‘investment’ have the meaning provided in Section
34   12-7-1275(A).
35     (BB)(W)(1) Notwithstanding any other another provision of this
36   section, the fair market value of property of a pharmaceutical
37   company investing more than four hundred million dollars in one
38   county in this State is the lower of the fair market value estimate
39   (1) as determined determines:
40            (a) pursuant to subsection (D)(2)(a)(i),; or
41            (2)(b) as determined by the county in which the
42   investment is located as follows:


     [718]                             57
 1             (a) (i) for real property, using the original income tax
 2   basis for South Carolina income tax purposes without regard to
 3   depreciation, less any such basis amount attributable to cost
 4   overruns, including capitalized interest overruns; and
 5             (b)(ii) for personal property, using the original income
 6   tax basis for South Carolina income tax purposes, less any such
 7   basis amount attributable to cost overruns, including capitalized
 8   interest overruns, and less depreciation allowable for property tax
 9   purposes, except that the investor is not entitled to any
10   extraordinary obsolescence.
11        (2) This subsection applies only to property placed in service
12   before January 1, 2000.”
13
14   F. Section 12-44-50(A)(1)(b)(i) of the 1976 Code is amended to
15   read:
16
17     “(i) by the county, which must not be lower than the a
18   cumulative property tax millage rate legally levied by or on behalf
19   of all millage levying entities within which the project is to be
20   located, which is the cumulative rate that is applicable during the
21   period beginning on the thirtieth day of June preceding the
22   calendar year in which the fee agreement is executed and ending
23   on the date the initial lease agreement is executed; or”
24
25   G.Notwithstanding the provisions of Section 4-12-30(H)(2),
26   Section 4-29-67(H)(2), and Section 12-44-40(L)(2), all of the 1976
27   Code, the parties may agree to change the millage rate under an
28   existing inducement agreement or millage rate agreement for an
29   investment that exceeds two hundred million dollars to a
30   cumulative property tax millage rate legally levied by or on behalf
31   of all taxing entities within which the subject property is to be
32   located that is applicable during the period beginning on the
33   thirtieth day of June preceding the calendar year in which the
34   millage rate agreement is executed and ending on the date the
35   initial lease agreement is executed. A change in millage rates
36   pursuant to this section is applicable prospectively only and not
37   retroactively.
38
39   SECTION 52. Section 12-6-3530(B) and (C) of the 1976 Code, as
40   added by Act 314 of 2000, is amended to read:
41
42    “(B) The total amount of credits allowed pursuant to this section
43   may not exceed in the aggregate five million dollars for all

     [718]                           58
 1   taxpayers and all taxable calendar years and one million dollars for
 2   all taxpayers in one taxable calendar year.
 3      (C) A single community development corporation or
 4   community development financial institution may not receive more
 5   than twenty-five percent of the total tax credits authorized pursuant
 6   to this section in any one taxable calendar year.”
 7
 8   SECTION 53. Article 7, Chapter 21, Title 12 of the 1976 Code is
 9   amended by adding:
10
11      “Section 12-21-1035. (A) Beer brewed on a permitted premises
12   pursuant to Article 17, Chapter 4 of Title 61, must be taxed based
13   on the number of gallons of beer produced on the permitted
14   premises and must be taxed at the same rate of taxation for beer
15   provided in Section 12-21-1020. The permittee shall maintain
16   adequate records as determined by the department to ensure the
17   collection of this tax.
18      (B) The taxes imposed by the provisions of this section, except
19   as otherwise provided, are due and payable in monthly installments
20   on or before the twentieth day of the month following the month in
21   which the tax accrues.
22      (C) On or before the twentieth day of each month, a person on
23   whom the taxes in this section are imposed shall file with the
24   department, on a form designed by it, a true and correct statement
25   showing the total gallons produced and any other information the
26   department may require.
27      (D) At the time of making a monthly report, the person shall
28   compute the taxes due and pay to the department the amount of
29   taxes shown to be due. A return is considered to be timely filed if
30   the return is mailed and has a postmark dated on or before the date
31   the return is required by law to be filed.”
32
33   SECTION 54. Section 61-4-1730 of the 1976 Code, as added by
34   Act 415 of 1996, is amended to read:
35
36      “Section 61-4-1730. Beer brewed on a permitted premises
37   under pursuant to this article must be taxed as provided in Article 7
38   of Chapter 21 of Title 12 Section 12-21-1035. The permittee must
39   shall maintain adequate records as determined by the department to
40   ensure the collection of this tax.”
41
42   SECTION 55. Section 61-4-520(8) of the 1976 Code, as added by
43   Act 445 of 1996, is amended to read:

     [718]                            59
 1      “(8) Notice of application has appeared at least once a week for
 2   three consecutive weeks in a newspaper most likely to give notice
 3   to interested citizens of the county, city, or community in which
 4   the applicant proposes to engage in business. The department must
 5   shall determine which newspapers meet the requirements of this
 6   section based on available circulation figures. However, if a
 7   newspaper is published in the county and historically has been the
 8   newspaper where the advertisements are published, the
 9   advertisements published in that newspaper meet the requirements
10   of this section. The notice must:
11           (a) be in the legal notices section of the newspaper or an
12   equivalent section if the newspaper has no legal notices section;
13           (b) be in large type, covering a space of one column wide
14   and at least two inches deep; and
15           (c) state the type license applied for and the exact location
16   of the proposed business.
17      An applicant for a beer or wine permit and an alcoholic liquor
18   license may use the same advertisement for both if the
19   advertisement is approved by the department.”
20
21   SECTION 56. Section 61-6-1820(4) of the 1976 Code, as added by
22   Act 415 of 1996, is amended to read:
23
24      “(4) Notice of application has appeared at least once a week for
25   three consecutive weeks in a newspaper most likely to give notice
26   to interested citizens of the county, municipality, or community in
27   which the applicant proposes to engage in business. The
28   department must shall determine which newspapers meet the
29   requirements of this section based on available circulation figures.
30   However, if a newspaper is published in the county and historically
31   has been the newspaper where the advertisements are published,
32   the advertisements published in that newspaper meet the
33   requirements of this section. The notice must:
34           (a) be in the legal notices section of the newspaper or an
35   equivalent section if the newspaper has no legal notices section;
36           (b) be in large type, covering a space of one column wide
37   and at least two inches deep; and
38           (c) state the type license applied for and the exact location
39   of the proposed business.
40      An applicant for a beer or wine permit and an alcoholic liquor
41   license may use the same advertisement for both if it is approved
42   by the department.”
43

     [718]                            60
 1   SECTION 57. A.Section 12-43-225 of the 1976 Code, as added
 2   by Act 346 of 2000, is amended to read:
 3
 4      “Section 12-43-225. (A) For subdivision lots in a conditional
 5   or final plat filed recorded on or after 2000 January 1, 2001, and
 6   notwithstanding the provisions of Section 12-43-224 , a
 7   subdivision lot discount is allowed in the valuation of the platted
 8   lots only as provided in subsection (B) of this section, and this
 9   discounted value applies for five property tax years or until the lot
10   is sold, or a certificate of occupancy is issued for the improvement
11   on the lot, or the improvement is occupied, whichever of them
12   elapses or occurs first. When the discount allowed by this section
13   no longer applies, the lots must be individually valued as provided
14   by law.
15      (B) To be eligible for a subdivision lot discount, the final or
16   conditional recorded plat filed must contain at least ten building
17   lots. The owner must shall apply for the discount by means of a
18   written application to the assessor on or before May first of the
19   year for which the discount is claimed. The value of each platted
20   building lot is calculated:
21         (1) by dividing the total number of platted building lots into
22   the value of the entire parcel as undeveloped real property; and
23         (2) as provided in Section 12-43-224 and the difference
24   between the two calculations determined.
25      The value of a lot as determined under Section 12-43-224 is
26   reduced as follows:
27           For lots in plats filed recorded in 2001, the value is reduced
28   by thirty percent of the difference.
29           For lots in plats filed recorded in 2002, the value is reduced
30   by sixty percent.
31           For lots in plats filed recorded after 2002, the value is
32   reduced by one hundred percent of the difference.
33      (C) If a lot allowed the discount provided by this section is sold
34   to the holder of a residential homebuilder’s license or general
35   contractor’s license, the discount continues through the first tax
36   year which ends twelve months from the date of sale if the
37   purchaser files a written application for the discount with the
38   county assessor by March May first of the year for which the
39   applicant is claiming the discount.”
40
41   SECTION 58. The last paragraph of Section 4-29-67(C)(2) of
42   the 1976 Code, as last amended by Act 462 of 1996, is further
43   amended to read:

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 1      “For purposes of those businesses qualifying under Section
 2   4-29-67(D)(4), the five-year period referred to in this subsection is
 3   eight years and the seven-year period is ten years. However, for
 4   those businesses which, after qualifying under Section
 5   4-29-67(D)(4), have more than five hundred million dollars in
 6   capital invested in this State and employ more than one thousand
 7   people in this State, the five-year period referred to in this
 8   subsection is ten years, and the ten-year extended period referred
 9   to in the previous sentence is fifteen years.”
10
11   SECTION 59. Section 4-29-67(C)(3) of the 1976 Code, as last
12   amended by Act 462 of 1996, is further amended to read:
13
14     “(3) The annual fee provided by subsection (D)(2) is available
15   for no more than twenty years. For projects which are completed
16   and placed in service during more than one year, each year’s
17   investment may be subject to the fee in subsection (D)(2) for
18   twenty years to a maximum total of twenty-seven years for the fee
19   for a single project which has been granted an extension. For those
20   businesses qualifying under subsection (D)(4), the annual fee is
21   available for no more than thirty years and for those projects
22   placed in service in more than one year the annual fee is available
23   for a maximum of thirty-seven years forty years or, for those
24   businesses qualifying for the fifteen-year extended period,
25   forty-five years.”
26
27   SECTION 60. A.Section 12-56-20(4) of the 1976 Code is
28   amended by adding at the end:
29
30     “‘Delinquent debt’ also includes any fine, penalty, cost, fee,
31   assessment, surcharge, service charge, restitution, or other amount
32   imposed by a court or as a direct consequence of a final court order
33   which is received by or payable to the clerk of the appropriate
34   court or treasurer of the entity where the court is located.”
35
36   B. The 1976 Code is amended by adding:
37
38      “Section 14-1-202. (A) The clerk of the appropriate court, or
39   county treasurer or municipal treasurer, as appropriate, is
40   authorized to collect any fine, penalty, cost, fee, assessment,
41   surcharge, service charge, restitution, or other amount imposed by
42   a court or as a direct consequence of a court order.


     [718]                            62
 1      (B) The clerk of the appropriate court, or county treasurer or
 2   municipal treasurer, as appropriate, may compromise any fine,
 3   penalty, cost, fee, assessment, surcharge, service charge,
 4   restitution, or other amount imposed by a court or as a direct
 5   consequence of a court order to the extent necessary to collect
 6   these items. If a clerk or treasurer compromises an amount
 7   pursuant to this subsection, the proceeds representing the collected
 8   amount must be distributed pro rata to the entities that otherwise
 9   would have received the original amount.”
10
11   SECTION 61. A.Section 12-44-80 of the 1976 Code is amended
12   by adding at the end:
13
14      “(C) Misallocations of the distribution of the fee payments on
15   the project pursuant to this chapter may be corrected by adjusting
16   later distributions, but these adjustments must be made in the same
17   fiscal year as the misallocations.”
18
19   B. Section 4-12-30(K) of the 1976 Code is amended by adding at
20   the end:
21
22     “(4) Misallocations of the distribution of the fee-in-lieu of taxes
23   on the project pursuant to this chapter may be corrected by
24   adjusting later distributions, but these adjustments must be made in
25   the same fiscal year as the misallocations.”
26
27   C. Section 4-29-67(L) of the 1976 Code, as last amended by Act
28   462 of 1996, is further amended by adding at the end:
29
30     “(4) Misallocations of the distribution of the fee-in-lieu of taxes
31   on the project pursuant to this chapter may be corrected by
32   adjusting later distributions, but these adjustments must be made in
33   the same fiscal year as the misallocations.”
34
35   SECTION 62. A.The 1976 Code is amended by adding:
36
37      “Section 12-45-35. (A) A county treasurer may appoint an
38   employee in his office to be his deputy. The appointment must be
39   filed with the Comptroller General and the governing body of that
40   county. When the appointment is filed, the deputy may act for and
41   on behalf of the county treasurer when the treasurer is
42   incapacitated by reason of a physical or mental disability or during
43   a temporary absence.

     [718]                            63
 1     (B) If there is a vacancy in the office of county treasurer by
 2   reason of death, resignation, or disqualification, the appointed
 3   deputy shall carry out the duties of the office until a successor is
 4   appointed or elected or qualified.”
 5
 6   B. Section 12-39-40 of the 1976 Code is amended to read:
 7
 8     “Section 12-39-40. (A) In the event of a vacancy by reason of
 9   death, resignation or disqualification in the office of county auditor
10   in any county in this State having a chief clerk in the auditor’s
11   office, the duties and functions of such office shall be discharged
12   by the chief clerk in the interval between the occurrence of such
13   vacancy and the appointment and qualification of a successor. A
14   county auditor may appoint an employee in his office to be his
15   deputy. The appointment must be filed with the Comptroller
16   General and the governing body of that county. When the
17   appointment is filed, the deputy may act for and on behalf of the
18   county auditor when the auditor is incapacitated by reason of a
19   physical or mental disability or during a temporary absence.
20     (B) If there is a vacancy in the office of county auditor by
21   reason of death, resignation, or disqualification, the appointed
22   deputy shall carry out the duties of the office until a successor is
23   appointed or elected and qualified.”
24
25   SECTION 63. Section 12-36-90(2) of the 1976 Code, is
26   amended by adding an appropriately lettered subitem to read:
27
28     “( ) interest, fees, or charges however described, imposed on a
29   customer for late payment of a bill for electricity or natural gas, or
30   both, whether or not sales tax is required to be paid on the
31   underlying electricity or natural gas bill.”
32
33   SECTION 64. Section 4-29-67(C)(3) of the 1976 Code, as last
34   amended by Act 462 of 1996, is further amended to read:
35
36     “(3) The annual fee provided by subsection (D)(2) is available
37   for no more than twenty years. For projects which are completed
38   and placed in service during more than one year, each year’s
39   investment may be subject to the fee in subsection (D)(2) for
40   twenty years to a maximum total of twenty-seven years for the fee
41   for a single project which has been granted an extension. For those
42   businesses qualifying under subsection (D)(4), the annual fee is
43   available for no more than thirty years and for those projects

     [718]                             64
 1   placed in service in more than one year the annual fee is available
 2   for a maximum of thirty-seven years forty years or, for those
 3   businesses qualifying for the fifteen-year extended period,
 4   forty-five years.”
 5
 6   SECTION 65. A.Section 4-12-30(D)(4)(a) of the 1976 Code, as
 7   last amended by Act 462 of 1996, is amended by adding at the end:
 8
 9      “(iv) in the case of a business including a corporation, its
10   subsidiaries, and its limited liability company members, that (A)
11   builds a gas-fired combined-cycle power facility and invests at
12   least four hundred million dollars and creates at least twenty-five
13   full-time jobs as defined in Section 12-6-3360(M) at that facility
14   and (B) invests an additional five hundred million dollars in this
15   State.”
16
17   B. Section 4-29-67(D)(4)(a) of the 1976 Code, as last amended by
18   Act 151 of 1997, is further amended by adding at the end:
19
20      “(v) in the case of a business including a corporation, its
21   subsidiaries, and its limited liability company members, that (A)
22   builds a gas-fired combined-cycle power facility and invests at
23   least four hundred million dollars and creates at least twenty-five
24   full-time jobs as defined in Section 12-6-3360(M) at that facility
25   and (B) invests an additional five hundred million dollars in this
26   State.”
27
28   C. Section 12-44-30(8) of the 1976 Code is amended by adding at
29   the end:
30
31      “(d) at least four hundred million dollars in the building of a
32   gas-fired combined-cycle power facility and creates at least
33   twenty-five full-time jobs as defined in Section 12-6-3360(M) at
34   that facility and invests an additional five hundred million dollars
35   in this State.”
36
37   SECTION 66. The last paragraph of Section 4-29-67(C)(2) of
38   the 1976 Code, as last amended by Act 462 of 1996, is further
39   amended to read:
40
41      “For purposes of those businesses qualifying under Section
42   4-29-67(D)(4), the five-year period referred to in this subsection is
43   eight years and the seven-year period is ten years. However, for

     [718]                            65
 1   those businesses which, after qualifying under Section
 2   4-29-67(D)(4), have more than five hundred million dollars in
 3   capital invested in this State and employ more than one thousand
 4   people in this State, the five-year period referred to in this
 5   subsection is ten years, and the ten-year extended period referred
 6   to in the previous sentence is fifteen years.”
 7
 8   SECTION 67. Section 4-29-67(C)(3) of the 1976 Code, as last
 9   amended by Act 462 of 1996, is further amended to read:
10
11     “(3) The annual fee provided by subsection (D)(2) is available
12   for no more than twenty years. For projects which are completed
13   and placed in service during more than one year, each year’s
14   investment may be subject to the fee in subsection (D)(2) for
15   twenty years to a maximum total of twenty-seven years for the fee
16   for a single project which has been granted an extension. For those
17   businesses qualifying under subsection (D)(4), the annual fee is
18   available for no more than thirty years and for those projects
19   placed in service in more than one year the annual fee is available
20   for a maximum of thirty-seven years forty years or, for those
21   businesses qualifying for the fifteen-year extended period,
22   forty-five years.”
23
24   SECTION 68. Section 12-6-3360(B)(5) of the 1976 Code is
25   amended by adding a lettered subitem to read:
26
27      “(e) For a job created in a county that is not traversed by an
28   interstate highway, the credit allowed is one tier higher than the
29   credit for which jobs created in the county would otherwise
30   qualify. This subitem does not apply to a job created in a county
31   eligible for a higher tier pursuant to another provision of this
32   item.”
33
34   SECTION 69. The repeal or amendment by this act of any law,
35   whether temporary or permanent or civil or criminal, does not
36   affect pending actions, rights, duties, or liabilities founded thereon,
37   or alter, discharge, release or extinguish any penalty, forfeiture, or
38   liability incurred under the repealed or amended law, unless the
39   repealed or amended provision shall so expressly provide. After
40   the effective date of this act, all laws repealed or amended by this
41   act must be taken and treated as remaining in full force and effect
42   for the purpose of sustaining any pending or vested right, civil
43   action, special proceeding, criminal prosecution, or appeal existing

     [718]                             66
 1   as of the effective date of this act, and for the enforcement of
 2   rights, duties, penalties, forfeitures, and liabilities as they stood
 3   under the repealed or amended laws.
 4
 5   SECTION 70. If          any     section,   subsection,    paragraph,
 6   subparagraph, sentence, clause, phrase, or word of this act is for
 7   any reason held to be unconstitutional or invalid, such holding
 8   shall not affect the constitutionality or validity of the remaining
 9   portions of this act, the General Assembly hereby declaring that it
10   would have passed these sections, and each and every section,
11   subsection, paragraph, subparagraph, sentence, clause, phrase, and
12   word thereof, irrespective of the fact that any one or more other
13   sections, subsections, paragraphs, subparagraphs, sentences,
14   clauses, phrases, or words hereof may be declared to be
15   unconstitutional, invalid, or otherwise ineffective.
16
17   SECTION 71. Section 12-21-1080 of the 1976 Code is repealed.
18
19   SECTION 72. (A) Regardless of an election made pursuant to
20   Section 12-6-1170 of the 1976 Code to defer until age sixty-five a
21   retirement income deduction, as that section applied for taxable
22   years 1993 through 1997, or in the alternative, in case of a failure
23   to make such an election, a South Carolina individual income
24   taxpayer who received retirement income in one or more of those
25   taxable years and who for one or more of those years claimed no
26   retirement income deduction with respect to that retirement income
27   is allowed a deduction from South Carolina taxable income of
28   retirement income received in such a year not to exceed three
29   thousand dollars.
30      (B) For purposes of this section, “retirement income” has the
31   meaning provided in Section 12-6-1170(4) of the 1976 Code as
32   this section applied in taxable years 1993 through 1997.
33      (C) Notwithstanding the provisions of Section 12-54-85(F) of
34   the 1976 Code relating to the timeliness of claims for refunds and
35   for taxable years 1993, 1994, 1995, 1996 only, the period within
36   which such claims are timely filed is extended through April 15,
37   2002, for taxpayers filing a claim pursuant to this section.
38
39   SECTION 73. SECTIONS 4, 10, 13, 14, 15, and 16 of this act
40   take effect July 1, 2001. SECTIONS 22, 23, 24, 25, and 26 take
41   effect on the first day of the second month following approval by
42   the Governor. The remaining SECTIONS of this act take effect
43   upon approval by the Governor, and SECTIONS 1 and 2 apply

     [718]                            67
 1   with respect to sales or deeds made or recorded after this date and
 2   SECTION 3 is applicable to taxable years beginning after
 3   December 31, 2000; provided, however, the corporate income tax
 4   credit taken against the cost of tangible personal property pursuant
 5   to Section 12-6-3410(D) of the 1976 Code authorized to be taken
 6   by those corporations or companies referred to in Section
 7   12-6-3410(J)(9) of the 1976 Code may be taken for taxable years
 8   beginning after December 31, 2002; SECTIONS 5, 6, 7, 8, 9, 11,
 9   12, 17, and 18 apply to taxable years beginning after December 31,
10   2000; SECTION 34 applies to tax periods beginning after
11   December 31, 1997; and SECTION 46 applies to property tax
12   years beginning after December 31, 1999; and SECTION 51B., F.,
13   and the amendment to Section 4-29-67(G) in SECTION 51E.
14   apply to a fee in lieu of property taxes agreement in which an
15   initial lease agreement is executed on or after that date; and
16   SECTION 51G. is repealed effective December 31, 2001.
17   SECTION 63 applies with respect to retail sales occurring on or
18   after that date and sales before that date for all periods remaining
19   open for the assessment of taxes by agreement or by operation of
20   law. However, a refund is not due a taxpayer or sales and use tax
21   paid on interest, fees, or charges, however described, imposed on a
22   customer for late payment of a bill for electricity or natural gas, or
23   both, before the effective date of this act. Notwithstanding the
24   general effective date provided in this act, subsections A., B., and
25   C. of SECTION 50 take effect July 1, 2001. Subsection D. of
26   SECTION 50 takes effect August 15, 2001.
27                                 ----XX----




     [718]                             68

								
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