Docstoc

Validate Sc Real Estate License

Document Sample
Validate Sc Real Estate License Powered By Docstoc
					 1   Indicates Matter Stricken
 2   Indicates New Matter
 3
 4   CONFERENCE COMMITTEE REPORT ADOPTED -- NOT
 5   PRINTED
 6   June 21, 2007
 7
 8                                                   H. 3749
 9
10   Introduced by Reps. W.D. Smith, Mitchell, Kelly, Littlejohn,
11   Mahaffey, Moss, Phillips, Talley and Walker
12
13   S. Printed 6/6/07--S.                 [SEC 6/20/07 10:06 AM]
14   Read the first time March 22, 2007.
15




     [3749-1]
 1
 2
 3
 4
 5
 6
 7
 8
 9                         A BILL
10
11   TO AMEND SECTION 12-10-80, AS AMENDED, CODE OF
12   LAWS OF SOUTH CAROLINA, 1976, RELATING TO JOB
13   DEVELOPMENT CREDITS, SO AS TO ALLOW A
14   TAXPAYER     WHO    QUALIFIES      FOR    THE     JOB
15   DEVELOPMENT CREDIT AND WHO IS LOCATED IN A
16   MULTI-COUNTY BUSINESS OR INDUSTRIAL PARK TO
17   RECEIVE A CREDIT EQUAL TO THE AMOUNT
18   DESIGNATED TO THE COUNTY WITH THE LOWEST
19   DEVELOPMENT STATUS OF THE COUNTIES CONTAINING
20   THE PARK IN CERTAIN CIRCUMSTANCES; TO AMEND
21   SECTION 11-45-30, AS AMENDED, RELATING TO
22   DEFINITIONS, SO AS TO CLARIFY THE DEFINITION OF
23   „LENDER‟ AND PROVIDE A DEFINITION FOR „INTEREST‟;
24   TO AMEND SECTION 11-45-50, AS AMENDED, RELATING
25   TO REQUIREMENTS FOR THE SUBMISSION OF
26   INVESTMENT PLANS, SO AS TO PROVIDE CLARIFYING
27   LANGUAGE; TO AMEND SECTION 11-45-55, RELATING TO
28   TAX CREDIT CERTIFICATES, SO AS TO REQUIRE THAT
29   THE SOUTH CAROLINA VENTURE CAPITAL AUTHORITY
30   ESTABLISH GUIDELINES FOR PROCEDURES TO ISSUE
31   TAX CREDITS AND DELETE THE REQUIREMENT THAT
32   THE AUTHORITY ALSO ESTABLISH REGULATIONS; TO
33   AMEND SECTION 11-45-70, AS AMENDED, RELATING TO
34   VENTURE CAPITAL INVESTMENT REQUIREMENTS, SO
35   AS TO ALLOW AN INVESTOR TO BE QUALIFIED IF HE
36   PROVES THAT HE HAS MADE PRIOR INVESTMENTS IN
37   SOUTH CAROLINA OR SOUTH CAROLINA BASED
38   COMPANIES; TO ADD SECTION 11-45-105 SO AS TO
39   REQUIRE THE BUDGET AND CONTROL BOARD TO
40   APPROVE GUIDELINES ISSUED BY THE AUTHORITY; TO
41   AMEND SECTIONS 12-21-6520, 12-21-6540, AND 12-21-6590,

     [3749]                    1
 1   ALL AS AMENDED, RELATING TO THE TOURISM
 2   INFRASTRUCTURE ADMISSIONS TAX ACT, SO AS TO
 3   EXTEND THE DEFINITION OF EXTRAORDINARY RETAIL
 4   ESTABLISHMENT, PROVIDE FOR A CONDITIONAL
 5   CERTIFICATION AS SUCH A FACILITY AND THE
 6   BENEFITS UNDER THE ACT, AND MAKE CONFORMING
 7   AMENDMENTS; TO AMEND SECTION 12-6-3415, AS
 8   AMENDED, RELATING TO THE RESEARCH AND
 9   DEVELOPMENT INCOME TAX CREDIT, SO AS TO ALLOW
10   THE CREDIT TO BE CLAIMED AGAINST ALL INCOME
11   TAXES; TO AMEND SECTION 12-20-105, AS AMENDED,
12   RELATING TO CORPORATE LICENSE TAX CREDITS, SO
13   AS TO REVISE ELIGIBILITY REQUIREMENTS; TO AMEND
14   SECTION 4-1-175, AS AMENDED, RELATING TO THE
15   AUTHORIZATION OF SPECIAL SOURCE REVENUE
16   BONDS, SO AS TO REQUIRE A COUNTY, MUNICIPALITY,
17   OR SPECIAL PURPOSE DISTRICT TO PROVIDE A CREDIT
18   AGAINST OR PAYMENT DERIVED FROM THE REVENUES
19   RECEIVED PURSUANT TO A PAYMENT IN LIEU OF
20   TAXES; TO AMEND SECTIONS 4-12-30 AND 4-29-67, BOTH
21   AS AMENDED, BOTH RELATING TO FEE IN LIEU OF
22   PROPERTY TAXES, BOTH SO AS TO ALLOW AN
23   APPLICABLE PIECE OF PROPERTY TO QUALIFY FOR THE
24   ANNUAL FEE IN LIEU OF PROPERTY TAXES FOR AN
25   ADDITIONAL TEN YEARS BY RESOLUTION OF THE
26   COUNTY, TO EXTEND THE MAXIMUM TIME A PROJECT
27   QUALIFIES FOR A FEE FROM THIRTY YEARS TO FORTY
28   YEARS, TO DELETE THE REQUIREMENTS TO QUALIFY
29   FOR A FOUR PERCENT ASSESSMENT RATIO THAT A
30   SPONSOR MUST INVEST A TOTAL OF THREE HUNDRED
31   MILLION DOLLARS WHEN ADDED TO PREVIOUS
32   INVESTMENTS AND THAT A SPONSOR MUST CREATE
33   TWO HUNDRED FULL-TIME JOBS AT A PROJECT
34   INVESTING FOUR HUNDRED MILLION DOLLARS, AND
35   TO DELETE THE REQUIREMENT THAT A DIRECT
36   PAYMENT OF CASH MAY NOT BE MADE TO A SPONSOR
37   BY A COUNTY, MUNICIPALITY, OR SPECIAL PURPOSE
38   DISTRICT; TO AMEND SECTION 12-44-10, RELATING TO
39   THE TITLE OF THE CHAPTER, SO AS TO DELETE THE
40   DATE; TO AMEND SECTION 12-44-30, AS AMENDED,
41   RELATING TO DEFINITIONS, SO AS TO LOWER THE
42   REQUIREMENTS FOR AN ENHANCED INVESTMENT THAT

     [3749]                  2
 1   A SPONSOR INVEST AT LEAST TWO HUNDRED MILLION
 2   DOLLARS AND CREATE TWO HUNDRED FULL-TIME JOBS
 3   TO ONE HUNDRED FIFTY MILLION DOLLARS AND ONE
 4   HUNDRED TWENTY-FIVE JOBS, TO ALLOW A SPONSOR
 5   TO BE EXEMPT FROM THE NEW FULL-TIME JOBS
 6   REQUIREMENT IN CERTAIN CIRCUMSTANCES, TO
 7   ALLOW A SPONSOR TO APPLY FOR AN ADDITIONAL
 8   EXTENSION OF THE INVESTMENT PERIOD FOR
 9   ECONOMIC DEVELOPMENT PROPERTY; TO LOWER THE
10   LEVEL OF INVESTMENT REQUIRED FOR A MINIMUM
11   INVESTMENT FROM FIVE MILLION DOLLARS TO TWO
12   AND ONE-HALF MILLION DOLLARS, AND TO ALLOW A
13   COUNTY      BY   RESOLUTION   TO   EXTEND   THE
14   TERMINATION DATE OF A FEE AGREEMENT UP TO AN
15   ADDITIONAL TEN YEARS; TO AMEND SECTION 12-44-40,
16   AS AMENDED, RELATING TO FEE IN LIEU OF PROPERTY
17   TAXES, SO AS TO CHANGE THE REQUIREMENT THAT A
18   FEE AGREEMENT MUST BE EXECUTED WITHIN FIVE
19   YEARS AFTER THE INDUCEMENT RESOLUTION IS
20   ADOPTED BY THE COUNTY COUNCIL TO QUALIFY FOR
21   STATUS AS ECONOMIC DEVELOPMENT PROPERTY AND
22   INSTEAD REQUIRE THAT THE FEE AGREEMENT MUST
23   BE ADOPTED WITHIN FIVE YEARS AFTER ACTION BY
24   THE COUNTY IDENTIFYING OR REFLECTING THE
25   PROJECT; TO AMEND SECTION 12-44-70, RELATING TO
26   CREDITS AGAINST A FEE IN LIEU OF PROPERTY TAXES,
27   SO AS TO DELETE THE REQUIREMENTS OF THIS
28   SECTION AND ALLOW A COUNTY, MUNICIPALITY, OR
29   SPECIAL PURPOSE DISTRICT TO PROVIDE CREDITS
30   AGAINST THE FEE DUE FROM THE SPONSOR AND TO
31   USE A PORTION OF THE FEES IT RECEIVES FOR
32   SPECIFIED PURPOSES WITHOUT THE REQUIREMENTS OF
33   ISSUING SPECIAL SOURCE REVENUE BONDS; TO AMEND
34   SECTION 12-6-3360, AS AMENDED, RELATING TO THE
35   TARGETED JOBS TAX CREDIT, SO AS TO EXTEND
36   ELIGIBILITY FOR THESE CREDITS; TO AMEND SECTION
37   12-37-220, AS AMENDED, RELATING TO PROPERTY TAX
38   EXEMPTIONS, SO AS TO EXEMPT OTHERWISE EXEMPT
39   PROPERTY LEASED BY A GOVERNMENTAL ENTITY, TO
40   ALLOW A COUNTY COUNCIL BY ORDINANCE TO
41   POSTPONE IMPLEMENTATION OF A COUNTYWIDE
42   ASSESSMENT AND EQUALIZATION PLAN SCHEDULED

     [3749]                 3
 1   FOR 2007 UNTIL 2008; TO AMEND SECTION 61-4-737,
 2   RELATING TO WINE TASTINGS IN PREMISES LICENSED
 3   FOR OFF-PREMISE CONSUMPTION, SO AS TO INCREASE
 4   THE NUMBER OF TASTINGS PERMITTED; BY ADDING
 5   SECTION 12-60-3312 SO AS TO PROVIDE THAT
 6   PROCEEDINGS AND RECORDS OF A CONTESTED CASE
 7   HEARING INVOLVING THE SOUTH CAROLINA REVENUE
 8   PROCEDURES ACT ARE OPEN TO THE PUBLIC; TO
 9   AMEND SECTION 6-34-40, AS AMENDED, RELATING TO
10   TAX CREDITS FOR RETAIL FACILITIES REVITALIZATION,
11   SO AS TO MAKE A TECHNICAL CHANGE AND TO
12   PROVIDE THAT THE DEPARTMENT OF REVENUE MAY
13   PROMULGATE REGULATIONS IN CONNECTION WITH
14   THESE CREDITS, BUT IS NOT REQUIRED TO; TO AMEND
15   SECTION 12-2-20, AS AMENDED, RELATING TO THE
16   DEFINITION OF “PERSON” FOR PURPOSES OF
17   ADMINISTRATION OF TAXES BY THE DEPARTMENT OF
18   REVENUE, SO AS TO ADD A DEFINITION FOR
19   “INDIVIDUAL”; TO AMEND SECTION 12-6-40, AS
20   AMENDED, RELATING TO APPLICABILITY OF THE
21   INTERNAL REVENUE CODE TO THIS STATE, SO AS TO
22   PROVIDE FOR A TAXPAYER FILING A STATE RETURN
23   WITH AN APPROVAL FROM THE INTERNAL REVENUE
24   SERVICE; TO AMEND SECTION 12-6-545, AS AMENDED,
25   RELATING TO INCOME TAX RATES FOR PASS-THROUGH
26   TRADE AND BUSINESS INCOME, SO AS TO CORRECT A
27   CROSS REFERENCE AND TO FURTHER PROVIDE FOR AN
28   ELECTION BY A TAXPAYER OWNING AN INTEREST IN A
29   PASS-THROUGH BUSINESS FOR WHICH A PORTION OF
30   THE ACTIVE INCOME IS RELATED TO HIS PERSONAL
31   SERVICES; TO AMEND SECTION 12-6-1140, AS AMENDED,
32   RELATING TO DEDUCTIONS ALLOWED FROM SOUTH
33   CAROLINA TAXABLE INCOME OF AN INDIVIDUAL, SO
34   AS TO PROVIDE FOR CERTIFICATION FROM A
35   SUPERVISOR OF THE TAXPAYER CLAIMING THE
36   DEDUCTION; TO AMEND SECTION 12-6-3360, AS
37   AMENDED, RELATING TO THE JOB TAX CREDIT, SO AS
38   TO CORRECT CROSS REFERENCES AND TO FURTHER
39   PROVIDE FOR DESIGNATION OF THE CORPORATE
40   HEADQUARTERS OF A GENERAL CONTRACTOR
41   LICENSED IN THIS STATE; TO AMEND SECTION 12-6-3535,
42   AS AMENDED, RELATING TO CREDIT AGAINST THE

     [3749]                   4
 1   STATE INCOME TAX FOR REHABILITATION OF A
 2   CERTIFIED HISTORIC STRUCTURE, SO AS TO PROVIDE
 3   FOR THE FILING OF THE CERTIFICATION BY THE
 4   TAXPAYER WITH A TAX RETURN; TO AMEND SECTION
 5   12-6-3585, RELATING TO THE TAX CREDIT FOR
 6   CONTRIBUTIONS TO THE INDUSTRY PARTNERSHIP
 7   FUND, SO AS TO SUBSTITUTE THE WORD “SINGLE” FOR
 8   “INDIVIDUAL” WHEN DESCRIBING THE TAXPAYER AND
 9   TO PROVIDE FOR AVAILABILITY OF THE QUALIFYING
10   FORM TO THE DEPARTMENT OF REVENUE; TO AMEND
11   SECTION 12-6-3587, RELATING TO A TAX CREDIT FOR
12   INSTALLATION OF A SOLAR ENERGY HEATING OR
13   COOLING SYSTEM, SO AS TO SPECIFY THAT THE
14   INSTALLATION MUST BE DONE IN A BUILDING IN THIS
15   STATE; TO AMEND SECTION 12-6-4980, AS AMENDED,
16   RELATING TO EXTENSION OF TIME FOR FILING
17   RETURNS, SO AS TO PROVIDE FOR AN EXTENSION NOT
18   TO EXCEED SIX MONTHS, TO DELETE THE
19   REQUIREMENT THAT THE EXTENSION BE ALLOWED
20   FOR GOOD CAUSE, AND TO DISALLOW ANOTHER
21   EXTENSION FOR A TAXPAYER WHO FAILS TO MEET THE
22   REQUIREMENT OF THE PREVIOUS EXTENSION; TO
23   AMEND SECTION 12-8-580, AS AMENDED, RELATING TO
24   INCOME TAX WITHHOLDING FROM A NONRESIDENT
25   SELLER, SO AS TO PROVIDE FOR THE REMITTANCE OF
26   WITHHELD AMOUNTS BY A LENDING INSTITUTION,
27   REAL ESTATE AGENT, OR CLOSING ATTORNEY; TO
28   AMEND SECTION 12-8-590, RELATING TO WITHHOLDING
29   INCOME TAX FROM A NONRESIDENT DISTRIBUTEE SO
30   AS TO MAKE TECHNICAL CORRECTIONS; TO AMEND
31   SECTION 12-8-2020, RELATING TO REFUND OR CREDIT
32   FOR OVERPAYMENT OF WITHHELD TAX, SO AS TO
33   DELETE THE REQUIREMENT THAT THE WITHHOLDING
34   AGENT FURNISH EVIDENCE AND TO DELETE TIME AND
35   DOLLAR AMOUNT LIMITATIONS; TO AMEND SECTION
36   12-20-90, AS AMENDED, RELATING TO LICENSE FEES FOR
37   HOLDING COMPANIES, SO AS TO CORRECT A CROSS
38   REFERENCE; TO AMEND SECTION 12-23-20, AS
39   AMENDED, RELATING TO EXEMPTION FROM THE
40   BUSINESS LICENSE TAX, SO AS TO CONFORM THE TIMES
41   FOR WHICH THE ASSESSMENT OF TAXES MAY BE
42   SUSPENDED; TO AMEND SECTION 12-36-2120, AS

     [3749]                  5
 1   AMENDED, RELATING TO EXEMPTIONS FROM THE
 2   STATE SALES TAX, SO AS TO CONFORM THE TIMES FOR
 3   WHICH THE ASSESSMENT OF TAXES MAY BE
 4   SUSPENDED; TO AMEND SECTION 12-36-2510, AS
 5   AMENDED, RELATING TO A CERTIFICATE ALLOWING A
 6   TAXPAYER TO BUY TANGIBLE PERSONAL PROPERTY
 7   TAX FREE AND THE PURCHASER TO BE LIABLE FOR
 8   TAXES, SO AS TO MAKE A TECHNICAL CORRECTION; TO
 9   AMEND SECTION 12-37-270, AS AMENDED, RELATING TO
10   CREDITS TO THE TRUST FUND FOR TAX RELIEF IN AN
11   AMOUNT SUFFICIENT TO PAY REIMBURSEMENT, SO AS
12   TO PERMIT, BUT NOT REQUIRE, THE DEPARTMENT OF
13   REVENUE TO PROMULGATE REGULATIONS IN THAT
14   CONNECTION; TO AMEND SECTION 12-54-70, AS
15   AMENDED, RELATING TO EXTENSION OF TIME FOR
16   FILING RETURNS OR PAYING TAX, SO AS TO PROVIDE
17   FOR AN EXTENSION OF TIME NOT TO EXCEED SIX
18   MONTHS AND TO DELETE THE REQUIREMENT THAT
19   GOOD CAUSE BE SHOWN; TO AMEND SECTION 12-54-85,
20   AS AMENDED, RELATING TO TIME LIMITS ON
21   ASSESSMENTS, SO AS TO PROVIDE FOR THE TOTAL OF
22   ALL TAXES REQUIRED TO BE SHOWN ON A RETURN IN
23   CONNECTION     WITH    DETERMINATION    OF    AN
24   UNDERSTATEMENT OF TAXES, TO PROVIDE FOR TIME
25   LIMITS FOR ASSESSMENT OF USE TAXES, AND TO
26   PROVIDE THAT THE TIME LIMITATIONS DO NOT APPLY
27   TO SUCCESSOR LIABILITY STATUTES; TO AMEND
28   SECTION 12-54-155, AS AMENDED, RELATING TO
29   PENALTIES FOR UNDERSTATEMENT OF TAXES, SO AS
30   TO MAKE A TECHNICAL CORRECTION; TO AMEND
31   SECTION 12-54-240, AS AMENDED, RELATING TO
32   DISCLOSURE OF RECORDS, REPORTS, AND RETURNS
33   FILED WITH THE DEPARTMENT OF REVENUE, SO AS TO
34   PROVIDE FOR DISCLOSURE OF THE TAXPAYER‟S
35   ADDRESS AS SHOWN ON THE RETURN, TO OMIT A
36   CROSS REFERENCE, AND TO ALLOW THE DISCLOSURE
37   OF INFORMATION IN CONNECTION WITH PROCEEDINGS
38   AND RECORDS OF A CONTESTED CASE HEARING OF THE
39   ADMINISTRATIVE LAW COURT PURSUANT TO THE
40   SOUTH CAROLINA REVENUE PROCEDURES ACT; TO
41   AMEND SECTION 12-60-20, AS AMENDED, RELATING TO
42   LEGISLATIVE INTENT IN CONNECTION WITH THE

     [3749]                 6
 1   SOUTH CAROLINA REVENUE PROCEDURES ACT, SO AS
 2   TO INCLUDE DISPUTES CONCERNING PROPERTY TAXES;
 3   TO AMEND SECTION 12-60-90, AS AMENDED, RELATING
 4   TO THE ADMINISTRATIVE TAX PROCESS, SO AS TO
 5   CORRECT A CROSS REFERENCE; TO AMEND SECTION
 6   6-1-320, AS AMENDED, RELATING TO THE LIMIT ON
 7   PROPERTY TAX MILLAGE INCREASES, SO AS TO
 8   PROVIDE THAT A REDUCTION IN POPULATION DOES
 9   NOT DECREASE THE APPLICABLE LIMIT; BY ADDING
10   SECTION 12-4-535 SO AS TO PROVIDE FOR A
11   DEPARTMENT DETERMINATION AS TO VALUATION,
12   ASSESSMENT, OR TAXATION OF PROPERTY; TO AMEND
13   SECTION 12-4-320, RELATING TO POWERS AND DUTIES
14   OF THE DEPARTMENT OF REVENUE, SO AS TO INCLUDE
15   PARTICIPATION IN A NATIONAL AUDIT PROGRAM BY
16   WRITTEN AGREEMENT WITH THE MULTI-STATE TAX
17   COMMISSION AND IN AN INSTALLMENT PAYMENT
18   AGREEMENT WITH A TAXPAYER; TO AMEND SECTION
19   12-6-40, AS AMENDED, RELATING TO APPLICATION OF
20   THE INTERNAL REVENUE CODE TO STATE TAX LAWS,
21   SO AS TO INCLUDE THE CODE THROUGH 2006; TO
22   AMEND SECTION 12-6-50, AS AMENDED, RELATING TO
23   PROVISIONS OF THE INTERNAL REVENUE CODE NOT
24   ADOPTED BY THE STATE, SO AS TO INCLUDE SECTION
25   54; TO AMEND SECTION 12-6-3360, AS AMENDED,
26   RELATING TO THE JOB TAX CREDIT, SO AS TO PROVIDE
27   FOR A HIGHER TIER CREDIT FOR FIVE TAXABLE YEARS
28   IN CERTAIN CASES; TO AMEND SECTION 12-6-3362,
29   RELATING TO SMALL BUSINESS TAX CREDIT, SO AS TO
30   COMMENCE THE CREDIT IN THE YEAR THE JOBS ARE
31   CREATED AND TO PROVIDE FOR ITS CALCULATION; TO
32   AMEND SECTION 12-36-2120, AS AMENDED, RELATING
33   TO EXEMPTIONS FROM THE STATE‟S SALES AND USE
34   TAX, SO AS TO INCLUDE CONSTRUCTION MATERIALS
35   USED TO BUILD OR EXPAND A MANUFACTURING OR
36   DISTRIBUTION FACILITY OR A FACILITY THAT SERVES
37   BOTH PURPOSES AT A SINGLE SITE; TO AMEND SECTION
38   12-54-200,  AS   AMENDED,    RELATING   TO   THE
39   REQUIREMENT OF A BOND TO SECURE THE PAYMENT
40   OF TAXES, SO AS TO ALLOW FOR REQUIREMENT OF
41   PAYMENT IN IMMEDIATELY AVAILABLE FUNDS IF THE
42   AMOUNT DUE IS FIFTEEN THOUSAND DOLLARS OR

     [3749]                 7
 1   MORE; TO AMEND SECTION 12-54-240, AS AMENDED,
 2   RELATING TO DISCLOSURE RECORDS AND REPORTS
 3   FILED WITH THE DEPARTMENT OF REVENUE, SO AS TO
 4   PERMIT DISCLOSURE TO THE STATE TREASURER IN
 5   CONNECTION WITH THE UNCLAIMED PROPERTY ACT
 6   AND, FURTHER, TO PERMIT THE EXCHANGE OF
 7   INFORMATION      IN    CONNECTION       WITH   THE
 8   VERIFICATION OF TAX CREDITS IN CONNECTION WITH
 9   THE VENTURE CAPITAL INVESTMENT ACT; TO AMEND
10   SECTION 12-54-250, AS AMENDED, RELATING TO
11   REQUIREMENT OF PAYMENT IN IMMEDIATELY
12   AVAILABLE FUNDS, SO AS TO DEFINE MORE
13   SPECIFICALLY      “PAYMENT        IN   IMMEDIATELY
14   AVAILABLE FUNDS”; TO AMEND SECTION 12-60-430, AS
15   AMENDED, RELATING TO THE ESTIMATION OF TAX
16   LIABILITY BY THE DEPARTMENT OF REVENUE, SO AS
17   TO INCLUDE THE OCCASION OF A FRIVOLOUS RETURN
18   OR REPORT AND TO PROVIDE FOR DISCLOSURE OF THE
19   DATA IT USES IN THE ESTIMATION TO A COURT; TO
20   AMEND      SECTION     11-11-156,    RELATING   TO
21   REIMBURSEMENTS TO SCHOOL DISTRICTS FROM THE
22   HOMESTEAD EXEMPTION FUND, SO AS TO PROVIDE FOR
23   REIMBURSEMENTS IN THE CASE OF A REDEVELOPMENT
24   PROJECT AREA; TO AMEND SECTION 11-45-55, RELATING
25   TO TAX CREDIT CERTIFICATES IN CONNECTION WITH
26   THE VENTURE CAPITAL INVESTMENT ACT, SO AS TO
27   PERMIT THE EXCHANGE OF INFORMATION WITH THE
28   DEPARTMENT OF REVENUE AND OTHER AGENCIES; TO
29   PROHIBIT THE ASSESSMENT OF A PENALTY AGAINST A
30   SOUTH CAROLINA TAXPAYER FOR FOLLOWING
31   SECTION 401 OF THE FEDERAL TAX INCREASE
32   PREVENTION AND RECONCILIATION ACT OF 2005; BY
33   ADDING SECTIONS 12-6-2252 AND 12-6-2295 SO AS TO
34   FURTHER     PROVIDE     FOR      ALLOCATION    AND
35   APPORTIONMENT OF BUSINESS INCOME FOR STATE
36   INCOME     TAX     PURPOSES     BY    BASING   THE
37   DETERMINATION ONLY ON A SALES FACTOR AND TO
38   DEFINE THE TERMS “SALES” AND “GROSS RECEIPTS”
39   CONSISTENTLY AND SPECIFICALLY FOR THAT
40   PURPOSE; TO AMEND SECTION 12-6-2250, AS AMENDED,
41   RELATING TO THE CONDUCT OF CERTAIN BUSINESSES
42   IN THIS STATE, SO AS TO PROVIDE FOR THE USE OF

     [3749]                  8
 1   PROPERTY, PAYROLL, AND SALES RATIOS IN
 2   DETERMINING THE APPORTIONMENT AND ALLOCATION
 3   AND TO PROVIDE FOR RATES OF REDUCTION OF
 4   INCOME APPORTIONED TO THE STATE THROUGH
 5   TAXABLE YEARS BEGINNING IN 2007 THROUGH 2010; TO
 6   AMEND SECTION 12-6-2280, RELATING TO THE
 7   DEFINITION OF “SALES FACTOR”, SO AS TO DELETE
 8   SOME EXAMPLES AND TO FURTHER EXPLAIN SALES TO
 9   THE UNITED STATES GOVERNMENT; TO AMEND
10   SECTION 12-6-2290, RELATING TO APPORTIONMENT OF
11   INCOME DERIVED FROM OTHER SOURCES, SO AS TO
12   INCLUDE A CROSS REFERENCE TO THE NEW
13   DEFINITION FOR “GROSS RECEIPTS”; TO AMEND
14   SECTION 12-6-1130, AS AMENDED, RELATING TO
15   COMPUTATION OF TAXABLE INCOME, SECTION
16   23-6-2240, RELATING TO APPORTIONMENT OF INCOME
17   AFTER ALLOCATION, AND SECTION 23-6-2290, RELATING
18   TO APPORTIONMENT OF INCOME DERIVED FROM
19   OTHER SOURCES, ALL SO AS TO UPDATE A CROSS
20   REFERENCE      EFFECTIVE  FOR   TAXABLE     YEARS
21   BEGINNING AFTER 2010; TO REPEAL SECTION 12-6-2250
22   RELATING TO THE CONDUCT OF CERTAIN BUSINESSES
23   IN THE STATE, SECTION 12-6-2260 RELATING TO THE
24   PROPERTY FACTOR, AND SECTION 12-6-2270 RELATING
25   TO THE PAYROLL FACTOR, ALL REPEALS EFFECTIVE
26   FOR TAXABLE YEARS BEGINNING AFTER 2010; TO
27   AMEND SECTION 6-5-10, RELATING TO THE AUTHORITY
28   OF LOCAL GOVERNMENTAL ENTITIES TO INVEST, SO AS
29   TO INCLUDE CERTAIN FEDERAL AND STATE
30   OBLIGATIONS; TO AMEND SECTION 12-36-2120, AS
31   AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO
32   AS TO ALLOW A SALES TAX EXEMPTION FOR AN
33   AMUSEMENT PARK RIDE AND ANY PARTS, MACHINERY,
34   AND EQUIPMENT USED TO ASSEMBLE AND MAKE UP AN
35   AMUSEMENT PARK RIDE OR PERFORMANCE VENUE
36   FACILITY AND ANY RELATED OR REQUIRED
37   MACHINERY, EQUIPMENT, AND FIXTURES LOCATED IN
38   AN AMUSEMENT PARK OR THEME PARK THAT MEETS
39   CERTAIN       INVESTMENT     AND    EMPLOYMENT
40   QUALIFICATIONS; BY ADDING SECTION 12-14-80 SO AS
41   TO ALLOW AN ECONOMIC IMPACT ZONE TAX CREDIT
42   AGAINST THE CORPORATE INCOME TAX OR

     [3749]                  9
 1   EMPLOYEES‟       WITHHOLDING       TAX    TO    A
 2   MANUFACTURER THAT IS ENGAGED IN AT LEAST ONE
 3   ECONOMIC IMPACT ZONE, EMPLOYS FIVE THOUSAND
 4   OR MORE FULL-TIME WORKERS IN THIS STATE WITH A
 5   TOTAL CAPITAL INVESTMENT OF NOT LESS THAN TWO
 6   BILLION DOLLARS, AND HAS INVESTED FIVE HUNDRED
 7   MILLION DOLLARS IN THIS STATE; TO AMEND SECTION
 8   12-37-220, AS AMENDED, RELATING TO PROPERTY TAX
 9   EXEMPTIONS, SO AS TO ALLOW A COUNTY GOVERNING
10   BODY TO EXEMPT FROM PROPERTY TAX 42.75 PERCENT
11   OF THE FAIR MARKET VALUE OF A WATERCRAFT AND
12   ITS MOTOR; TO AMEND SECTION 12-6-590, RELATING TO
13   INCOME TAX TREATMENT OF “S” CORPORATIONS, SO
14   AS TO REVISE THAT TREATMENT FOR A BANK
15   SHAREHOLDER; TO AMEND SECTION 12-37-714,
16   RELATING TO PROPERTY TAX ON BOATS WITH SITUS IN
17   SOUTH CAROLINA, SO AS TO TOLL THE TIME PERIODS
18   FOR THE LENGTH OF TIME A BOAT MUST REMAIN IN
19   SOUTH CAROLINA FOR PURPOSES OF DETERMINING
20   PROPERTY TAX ON A BOAT THAT IS SUBJECT TO A
21   WRITTEN CONTRACT FOR REPAIRS IN THE STATE; TO
22   AMEND SECTION 4-29-68, AS AMENDED, RELATING TO
23   SPECIAL SOURCE REVENUE BONDS, SO AS TO ALLOW
24   ADDITIONAL USES FOR BOND PROCEEDS, INCLUDING
25   ACQUIRING AN AIRCRAFT; BY ADDING SECTION
26   46-3-260 SO AS TO ESTABLISH IN THE STATE TREASURY
27   THE     SOUTH    CAROLINA    RENEWABLE     ENERGY
28   INFRASTRUCTURE DEVELOPMENT FUND AND PROVIDE
29   FOR ITS OPERATIONS AND ADMINISTRATION.
30
31   Be it enacted by the General Assembly of the State of South
32   Carolina:
33
34   SECTION 1. Section 12-10-80 of the 1976 Code, as last amended
35   by Act 386 of 2006, is further amended by adding an appropriately
36   lettered subsection at the end to read:
37
38     “( ) A taxpayer who qualifies for the job development credit
39   pursuant to the provisions of this section and who is located in a
40   multi-county business or industrial park jointly established
41   pursuant to Section 13 of Article VIII of the Constitution of this
42   State is allowed a job development credit equal to the amount

     [3749]                          10
 1   allowed pursuant to subsection (D) for the designation of the
 2   county which has the lowest development status of the counties
 3   containing the park if:
 4        (1) the park is developed and established on the
 5   geographical boundary of adjacent counties; and
 6        (2) the written agreement, pursuant to Section 4-1-170,
 7   requires revenue from the park to be allocated to each county on an
 8   equal basis.”
 9
10   SECTION 2. A.Section 11-45-30(10) and (15) of the 1976 Code,
11   as last amended by Act 125 of 2005, is further amended to read:
12
13      “(10) „Lender‟ means a banking institution subject to the
14   income tax on banks under Chapter 11 of Title 12, an insurance
15   company subject to a state premium tax liability under pursuant to
16   Chapter 7 of Title 38, a captive insurance company regulated under
17   pursuant to Chapter 90 of Title 38, a utility regulated under
18   pursuant to Title 58, or any other person approved by the authority
19   pursuant to guidelines and regulations established by the authority
20   pursuant to Section 11-45-100 a financial institution with proven
21   experience in state-based venture capital transactions, pursuant to
22   guidelines established by the authority. Both the guidelines and
23   the lender must be approved by the Budget and Control Board.
24      (15) „Designated investor group‟ means any a person who enters
25   into a designated investor contract with the authority pursuant to
26   Section 11-45-50.
27      (16) „Interest‟ means interest on the outstanding balance owed
28   or owing to a lender by a designated investor group under such
29   calculations, terms, or conditions as determined by the authority,
30   provided that the method of calculating interest may be included in
31   the tax credit certificates to the extent that the authority considers
32   the information necessary or appropriate.”
33
34   B. Section 11-45-50(B)(1) of the 1976 Code, as last amended by
35   Act 125 of 2005, is further amended to read:
36
37     “(1) Each designated investor group selected pursuant to
38   subsection (A)(3) of this section shall enter into a designated
39   investor contract with the authority, which designated investor
40   contract shall must contain those any investment guidelines and
41   those other terms and conditions as the authority may deem
42   considers necessary, advisable, or appropriate.”

     [3749]                            11
 1
 2   C. Section 11-45-55(B) of the 1976 Code, as added by Act 125
 3   of 2005, is further amended to read:
 4
 5      “(B) The authority shall issue tax credit certificates to each
 6   lender contemporaneously with each loan made pursuant to this
 7   chapter in accordance with any guidelines and regulations
 8   established by the authority pursuant to Section 11-45-100. These
 9   guidelines and regulations shall relate to and govern, among other
10   things, The tax credit certificates must describe procedures for the
11   issuance, transfer, and redemption of the certificates, and related
12   tax credits. These certificates shall state also must describe the
13   amounts, year, and conditions for redemption of the tax credits
14   reflected on the certificates. Once a loan is made by a lender, the
15   certificate issued to the lender shall be binding on the authority and
16   this State and may not be modified, terminated, or rescinded. The
17   form of the tax credit certificate must be approved by the Budget
18   and Control Board.”
19
20   D. Section 11-45-70(2)(a) of the 1976 Code, as last amended by
21   Act 125 of 2005, is further amended to read:
22
23      “(a) While each designated investor group shall give preference
24   to investors, otherwise qualified, that agree to maintain either a
25   headquarters or an office staffed by an investment professional in
26   South Carolina, investments may be made with investors not
27   principally located in South Carolina; provided, that if the
28   investors are otherwise qualified under pursuant to this chapter
29   and, together with related companies, have other venture capital
30   investments in South Carolina or in South Carolina based
31   companies or can provide evidence to the authority of prior
32   investments in South Carolina or South Carolina based companies
33   at least equal to the total amount of monies placed with that
34   investor by the designated investor group.”
35
36   E.   Chapter 45, Title 11 of the 1976 Code is amended by adding:
37
38     “Section 11-45-105. Any guideline issued by the authority
39   pursuant to this chapter must be approved by the Budget and
40   Control Board.”
41


     [3749]                            12
 1   SECTION 3. A.Section 12-21-6520(14) of the 1976 Code is
 2   amended to read:
 3
 4         “(14) „Tourism or recreational facility‟ also means an
 5   aquarium or natural history exhibit or museum located within or
 6   directly contiguous to an extraordinary retail establishment as
 7   defined below. An extraordinary retail establishment is a single
 8   store located in South Carolina within two miles of an interstate
 9   highway or in a county with at least three and one-half million
10   visitors a year, and it must be a destination retail establishment
11   which attracts at least two million visitors a year with at least
12   thirty-five percent of those visitors traveling at least fifty miles to
13   the establishment. The extraordinary retail establishment must
14   have a capital investment of at least twenty-five million dollars
15   including land, buildings and site prep preparation costs, and one
16   or more hotels must be built to service the establishments with
17   establishment within three years of occupancy.                    Only
18   establishments which receive a certificate of occupancy after July
19   1, 2006, qualify. The Department of Parks, Recreation and
20   Tourism shall determine and annually certify whether a retail
21   establishment meets these criteria and its judgment is conclusive.
22   The extraordinary retail establishment annually must collect and
23   remit at least two million dollars in sales taxes but is not required
24   to collect or remit admission taxes.”
25
26   B.   Section 12-21-6590 of the 1976 Code is amended to read:
27
28      “Section 12-21-6590. (A) The Department of Parks, Recreation
29   and Tourism may designate no more than four extraordinary retail
30   establishments as defined in Section 12-21-6520(14), and for
31   purposes of this section, sales taxes must be substituted for
32   admissions taxes wherever admission tax appears in this Tourism
33   Infrastructure Admissions Tax Act. For purposes of this section,
34   additional infrastructure improvements include any aquarium or
35   natural history exhibits or museum located within or directly
36   contiguous to the extraordinary retail establishment which are
37   dedicated to public use and enjoyment under such terms and
38   conditions as may be required by the municipality or county in
39   which they are located. Additional infrastructure improvements
40   shall also include site prep, construction of real or personal
41   property, parking, roadways, ingress and egress, utilities and other
42   expenditures on the extraordinary retail establishment which

     [3749]                            13
 1   directly support or service the aquarium or natural history museum
 2   or exhibits. The certification application made under this section
 3   must be executed by both the extraordinary retail establishment as
 4   well as the county or municipality.
 5      (B) Prior to the completion of an extraordinary retail
 6   establishment, an entity may request that the county or
 7   municipality in which the facility is located provide an application
 8   for conditional certification to the Department of Parks, Recreation
 9   and Tourism. The Department of Parks, Recreation and Tourism
10   may grant conditional certification to the entity as an extraordinary
11   retail establishment based on reasonable projections that the
12   facility will meet the requirements of Section 12-21-6520(14)
13   within three years of the certificate of occupancy. If the
14   Department of Parks, Recreation and Tourism grants the
15   conditional certification to the entity as an extraordinary retail
16   establishment, it shall forward the approval for conditional
17   certification to the department. The department shall notify the
18   entity and either the county or the municipality, as applicable, of
19   the approval.
20      An applicant obtaining conditional certification as an
21   extraordinary retail establishment under this section and satisfying
22   the requirements of conditional certification by the dates provided
23   therein, shall be deemed to satisfy all of the requirements of this
24   article pertaining to qualification as an extraordinary retail
25   establishment for the duration of the benefit period. The entity
26   shall be deemed to constitute a major tourism or recreation facility
27   under Section 12-21-6520(12) and shall be entitled to all of the
28   benefits of this article for the duration of the benefit period without
29   any further certification requirements. This subsection shall not be
30   construed to allow an applicant to receive the benefits provided in
31   this article prior to satisfying the requirements of the conditional
32   certification and of Section 12-21-6520(14).
33      The Department of Parks, Recreation and Tourism shall develop
34   application forms and adopt guidelines governing the conditional
35   certification process.
36      (C) If an applicant obtains conditional certification and
37   complies with both the conditional certification and Section
38   12-21-6520(14), then one-half shall be substituted for one-fourth in
39   Section 12-21-6530(A), and no funds will be transferred to the
40   council pursuant to Section 12-21-6540.”
41


     [3749]                            14
 1   SECTION 4. Section 12-21-6540(A) of the 1976 Code is
 2   amended to read:
 3
 4      “(A) During the benefit period, in addition to the amount
 5   described in Section 12-21-6530, except as otherwise provided in
 6   Section 12-21-6590, an additional amount equal to one-fourth of
 7   the license tax paid on admissions to an establishment must be
 8   transferred by the department to the State Treasurer to be deposited
 9   into the fund and distributed pursuant to the approval of the
10   council.”
11
12   SECTION 5. Section 12-6-3415(A) of the 1976 Code is amended
13   to read:
14
15      “Section 12-6-3415. (A) A taxpayer that claims a federal
16   income tax credit pursuant to Section 41 of the Internal Revenue
17   Code for increasing research activities for the taxable year is
18   allowed a credit against any tax due pursuant to Section 12-6-530
19   this chapter or Section 12-20-50 equal to five percent of the
20   taxpayer‟s qualified research expenses made in South Carolina.
21   For the purposes of this credit, qualified research expenses has the
22   same meaning as provided for in Section 41 of the Internal
23   Revenue Code.”
24
25   SECTION 6. Section 12-20-105 of the 1976 Code is amended to
26   read:
27
28      “Section 12-20-105. (A) Any company subject to a license tax
29   under Section 12-20-100 may claim a credit against its license tax
30   liability for amounts paid in cash to provide infrastructure for an
31   eligible project.
32      (B)(1) To be considered an eligible project for purposes of this
33   section, the project must qualify for income tax credits under
34   Chapter 6 of Title 12, withholding tax credit under Chapter 10 of
35   Title 12, income tax credits under Chapter 14 of Title 12, or fees in
36   lieu of property taxes under either Chapter 12 of Title 4, Chapter
37   29 of Title 4, or Chapter 44 of Title 12.
38         (2) If a project consists of an office, business, commercial, or
39   industrial park which is owned or constructed by a county or
40   political subdivision of this State when the qualifying
41   improvements are paid for, the project does not have to meet the
42   qualifications of item (1) to be considered an eligible project.

     [3749]                            15
 1      (C) For the purpose of this section, „infrastructure‟ means
 2   improvements for water, sewer, gas, steam, electric energy, and
 3   communication services made to a building or land that are
 4   considered necessary, suitable, or useful to an eligible project.
 5   These improvements include, but are not limited to:
 6         (1) improvements to both public or private water and sewer
 7   systems;
 8         (2) improvements to both public or private electric, natural
 9   gas, and telecommunications systems including, but not limited to,
10   ones owned or leased by an electric cooperative, electric utility, or
11   electric supplier, as defined in Chapter 27, Title 58;
12         (3) fixed transportation facilities including highway, road,
13   rail, water, and air;
14         (4) for a qualifying project under subsection (B)(2),
15   infrastructure improvements include industrial shell buildings and
16   the purchase of land for an office, business, commercial, or
17   industrial park which is owned or constructed by a county or
18   political subdivision of this State. Nothing in this section shall
19   prohibit the county or political subdivision from selling the
20   industrial shell building or industrial park after the company has
21   paid in cash to provide the infrastructure for an eligible project.
22      (D) A company is not allowed the credit provided by this section
23   for actual expenses it incurs in the construction and operation of
24   any building or infrastructure it owns, leases, manages, or operates.
25      (E) The maximum aggregate credit that may be claimed in any
26   tax year by a single company is three hundred thousand dollars.
27      (F) The credits allowed by this section may not reduce the
28   license tax liability of the company below zero. If the applicable
29   credit originally earned during a taxable year exceeds the liability
30   and is otherwise allowable under subsection (D), the amount of the
31   excess may be carried forward to the next taxable year.
32      (G) For South Carolina income tax and license purposes, a
33   company that claims the credit allowed by this section is ineligible
34   to claim the credit allowed by Section 12-6-3420.”
35
36   SECTION 7. A.Section 4-1-175 of the 1976 Code, as last
37   amended by Act 149 of 1997, is further amended to read:
38
39      “Section 4-1-175. A county or municipality receiving revenues
40   from a payment in lieu of taxes pursuant to Section 13 of Article
41   VIII of the Constitution of this State may issue special source
42   revenue bonds secured by and payable from all or a part of that

     [3749]                           16
 1   portion of the revenues which the county is entitled to retain
 2   pursuant to the agreement required by Section 4-1-170 in the
 3   manner and for the purposes set forth in Section 4-29-68. The
 4   county or municipality may pledge the revenues for the additional
 5   securing of other indebtedness in the manner and for the purposes
 6   set forth in Section 4-29-68.
 7      A county or municipality or special purpose district that receives
 8   and retains revenues from a payment in lieu of taxes pursuant to
 9   Section 13 of Article VIII of the Constitution of this State may use
10   a portion of this revenue for the purposes outlined in Section
11   4-29-68 without the requirement of issuing the special source
12   revenue bonds or meeting the requirements of Section
13   4-29-68(A)(4) by providing a credit against or payment derived
14   from the revenues received and retained under Section 13 of
15   Article VIII of the Constitution of this State.
16      A political subdivision of this State subject to the limitation of
17   either Section 14(7)(a) or Section 15(6) of Article X of the
18   Constitution of this State pledging pursuant to this section all or a
19   portion of the revenues received and retained by that subdivision
20   from a payment in lieu of taxes to the repayment of any bonds
21   shall not include in the assessed value of taxable property located
22   in the political subdivision for the purposes of calculating the limit
23   imposed by those sections of the Constitution any amount
24   representing the value of the property that is the basis of the
25   pledged portion of revenues. If the political subdivision, before
26   pledging revenues pursuant to this section, has included an amount
27   representing the value of a parcel or item of property that is the
28   subject of a payment in lieu of taxes in the assessed value of
29   taxable property located in the political subdivision and has issued
30   general obligation debt within the debt limit calculated on the basis
31   of such assessed value, then it may not pledge pursuant to this
32   section revenues based on the item or parcel of property, to the
33   extent that the amount representing its value is necessary to permit
34   the outstanding general obligation debt within the debt limit of the
35   political subdivision.”
36
37   B. Section 4-12-30(C), (D), (H), and (K) of the 1976 Code, as last
38   amended by Act 384 of 2006, is further amended to read:
39
40     “(C)(1)From the end of the property tax year in which the
41   sponsor and the county execute an inducement agreement, the


     [3749]                            17
 1   sponsor has five years in which to enter into an initial lease
 2   agreement with the county.
 3        (2) From the end of the property tax year in which the
 4   sponsor and the county execute the initial lease agreement, the
 5   sponsor has five years in which to complete its investment for
 6   purposes of qualifying for this section. If the sponsor does not
 7   anticipate completing the project within five years, the sponsor
 8   may apply to the county before the end of the five-year period for
 9   making the minimum investment for an extension of time to
10   complete the project. If the county agrees to grant the extension,
11   the county must do so in writing, and a copy must be delivered to
12   the department within thirty days of the date the extension was
13   granted. The extension may not exceed five years. If a project
14   receives an extension of less than five years, the sponsor may
15   apply to the county before the end of the extension period for an
16   additional extension of time to complete the project for an
17   aggregate extension of not more than five years. Unless approved
18   as part of the original lease documentation, the county council of
19   the county may approve any extension by resolution, a copy of
20   which must be delivered to the department within thirty days of the
21   date the resolution was adopted. There is no extension allowed for
22   the five-year period in which to meet the minimum level of
23   investment. If the minimum level of investment is not met within
24   five years, all property under the lease agreement or agreements,
25   reverts retroactively to the payments required by Section 4-12-20.
26   The difference between the fee actually paid by the sponsor and
27   the payment which is due under Section 4-12-20 is subject to
28   interest, as provided in Section 12-54-25(D). To the extent
29   necessary to determine if a sponsor or sponsor affiliate has met its
30   investment requirements, any statute of limitations that might
31   apply pursuant to Section 12-54-85 is suspended for all sponsors
32   and sponsor affiliates during the time period allowed to make the
33   required investment and the department or county may seek
34   collection of any amount that may be due pursuant to this
35   subsection. Any property placed in service after the five-year
36   period, or ten-year period in the case of a project which has
37   received an extension, is not part of the fee agreement under
38   subsection (D)(2) and is subject to the payments required by
39   Section 4-12-20 if the county has title to the property, or to ad
40   valorem property taxes, if the sponsor has title to the property. For
41   purposes of those sponsors qualifying under subsection (D)(4), the
42   five-year period referred to in this subsection is eight years.

     [3749]                           18
 1         (3) For those sponsors that, after qualifying pursuant to
 2   (D)(4), have more than five hundred million dollars in capital
 3   invested in this State and employ more than one thousand people
 4   in this State, the five-year period referred to in this subsection is
 5   ten years, and the ten-year period for completing the project is
 6   fifteen years.
 7         (4) The annual fee provided by subsection (D)(2) is
 8   available for no more than twenty years for an applicable piece of
 9   property. The sponsor may apply to the county prior to the end of
10   the twenty-year period for an extension of the fee period for up to
11   ten years. The county council of the county shall approve an
12   extension by resolution upon a finding of substantial public
13   benefit. A copy of the resolution shall be delivered to the
14   department within thirty days of the date the resolution was
15   adopted. For projects completed and placed in service during more
16   than one year, each year‟s investment may be subject to the fee in
17   subsection (D)(2) for twenty years or, if extended as provided in
18   this subsection up to thirty years, for an aggregate fee period of to
19   a maximum total of thirty up to forty years for the fee for a single
20   project which has been granted an extension. For those sponsors
21   qualifying under subsection (D)(4), the annual fee is available for
22   no more than thirty years for an applicable piece of property and
23   for those projects placed in service in more than one year the
24   annual fee is available for a maximum of an aggregate fee period
25   of up to forty-three years, or for those sponsors qualifying pursuant
26   to subsection (C)(3), forty-five years.
27         (5) Annually, during the time period allowed to meet the
28   minimum investment level, the sponsor shall provide the total
29   amount invested to the appropriate county official.”
30      “(D) The inducement agreement must provide for fee payments,
31   to the extent applicable, as follows:
32         (1)(a) Any property is subject to an annual fee payment, as
33   provided in Section 4-12-20.
34           (b) Any undeveloped land before being developed and
35   placed in service, is subject to an annual fee payment as provided
36   in Section 4-12-20. The time during which fee payments are made
37   under Section 4-12-20 is not considered part of the maximum
38   periods provided in subsections (C)(2) through (C)(4), and a lease
39   is not considered an „initial lease agreement‟ for purposes of this
40   subsection until the first day of the calendar year for which a fee
41   payment is due under item (2) in connection with the lease.


     [3749]                           19
 1         (2) After property qualifying under subsection (B) is placed
 2   in service, an annual fee payment determined in accordance with
 3   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 an assessment ratio of not less than six percent, or four
 7   percent of those projects qualifying pursuant to subsection (D)(4),
 8   a fixed millage rate as provided in subsection (G), and a fair
 9   market value estimate determined by the department as follows:
10              ( i) for real property, using the original income tax basis
11   for South Carolina income tax purposes without regard to
12   depreciation, if real property is constructed for the fee or is
13   purchased in an arm‟s length transaction; otherwise, the property
14   must be reported at its fair market value for ad valorem property
15   tax purposes as determined by appraisal. The fair market value
16   estimate established for the first year of the fee remains the fair
17   market value of the real property for the life of the fee; and
18              (ii) for personal property, using the original tax basis
19   for South Carolina income tax purposes less depreciation
20   allowable for property tax purposes, except that the sponsor is not
21   entitled to any extraordinary obsolescence.
22           (b) an annual payment as provided in subsection
23   (D)(2)(a), except that every fifth year the applicable millage rate is
24   allowed to increase or decrease in step with the average actual
25   millage rate applicable in the district where the project is located
26   based on the preceding five-year period.
27         (3) At the conclusion of the payments determined pursuant
28   to items (1) and (2) of this subsection, an annual payment equal to
29   the taxes is due on the project as if it were taxable. When the
30   property is no longer subject to the fee under subsection (D)(2), the
31   fee or property taxes must be assessed:
32           (a) with respect to real property, based on the fair market
33   value as of the latest reassessment date for similar taxable
34   property; and
35           (b) with respect to personal property, based on the then
36   depreciated value applicable to such property under the fee, and
37   thereafter continuing with the South Carolina property tax
38   depreciation schedule.
39         (4)(a) The assessment ratio may not be lower than four
40   percent:
41              (i)in the case of a single sponsor investing at least one
42   hundred fifty million dollars, resulting in a total investment of at

     [3749]                            20
 1   least three hundred million dollars when added to previous
 2   investments by a sponsor, and creating at least one hundred
 3   twenty-five new full-time jobs at a project in this State;
 4              (ii) in the case of a single sponsor investing at least four
 5   hundred million dollars and which is creating at least two hundred
 6   new full-time jobs at a project; or
 7              (iii) in the case of a project that satisfies the
 8   requirements of Section 11-41-30(2)(a), and for which the
 9   Secretary of Commerce has delivered certification pursuant to
10   Section 11-41-70(2)(a). business including a corporation, its
11   subsidiaries, and its limited liability company members, that builds
12   a project consisting of gas-fired combined-cycle power facility and
13   invests at least four hundred million dollars and creates at least
14   twenty-five full-time jobs as defined in Section 12-6-3360(M) at
15   that project; or
16              (iv) in the case of a project that satisfies the
17   requirements of Section 11-41-30(2)(a), and for which the
18   Secretary of Commerce has delivered certification pursuant to
19   Section 11-41-70(2)(a).
20           (b) The new full-time jobs requirement of this item does
21   not apply in the case of a sponsor which for more than the
22   twenty-five years ending on the date of the agreement paid more
23   than fifty percent of all property taxes actually collected in the
24   county.
25           (c) In an instance in which the governing body of a county
26   has by contractual agreement provided for a change in fee in lieu
27   of taxes arrangements conditioned on a future legislative
28   enactment, any new enactment shall not bind the original parties to
29   the agreement unless the change is ratified by the governing body
30   of the county.
31      (5) Notwithstanding the use of the term „assessment ratio‟, a
32   sponsor qualifying for the fee may negotiate an inducement
33   agreement with a county using differing assessment ratios for
34   different assessment years or levels of investment covered by the
35   inducement agreement. However, the lowest assessment ratio
36   allowed is the lowest ratio for which the sponsor may qualify
37   under this section.”
38      “(H)(1) Upon agreement of the parties, and except as provided
39   in item (2) of this subsection, an inducement agreement, a millage
40   rate agreement, or both, may be amended or terminated and
41   replaced with regard to all matters including, but not limited to, the
42   addition or removal of sponsors or sponsor affiliates.

     [3749]                            21
 1         (2) No amendment or replacement of an inducement
 2   agreement or millage rate agreement may be used to lower the
 3   millage rate, assessment ratio, or, except as provided in Sections
 4   4-12-30(C)(2) and (C)(4), increase the term of the agreement under
 5   any such agreement. However, existing inducement agreements
 6   which have not yet been implemented by the execution and
 7   delivery of a millage rate agreement or a lease agreement may be
 8   amended up to the date of execution and delivery of a millage rate
 9   agreement or a lease agreement in the discretion of the governing
10   body.
11         (3) An inducement agreement or a lease agreement may
12   provide that a sponsor who has committed to an investment under
13   subsection (D)(4) may continue to receive the benefits of this
14   chapter even if the sponsor fails to make or maintain the required
15   investment or fails to create the jobs required by subsection (D)(4),
16   if the sponsor meets the two and one-half million dollar minimum
17   investment. If the sponsor fails to make or maintain the required
18   investment or create the required number of jobs, the inducement
19   agreement or the lease agreement may not provide for an
20   assessment ratio and an exemption period more favorable than
21   those allowed for the minimum investment. To the extent that the
22   sponsor obtained a four percent assessment ratio under subsection
23   (D)(4), the sponsor must recalculate the fee using a six percent
24   ratio or such other ratio as the inducement agreement or lease
25   agreement may provide for all years in which the four percent
26   assessment ratio was used and pay the county any difference. This
27   difference is subject to interest as provided in Section 12-54-25.”
28      “(K)(1) For a project not located in an industrial development
29   park, as defined in Section 4-1-170, distribution of the fee in lieu
30   of taxes on the project must be made in the same manner and
31   proportion that the millage levied for school and other purposes
32   would be distributed if the property were taxable, but without
33   regard to an exemption otherwise available to the project pursuant
34   to Section 12-37-220 for that year.
35         (2) For a project located in an industrial development park,
36   as defined in Section 4-1-170, distribution of the fee in lieu of
37   taxes on the project must be made in the manner provided for by
38   the agreement establishing the industrial development park.
39         (3) A county or municipality or special purpose district that
40   receives and retains revenues from a payment in lieu of taxes may
41   use a portion of this revenue for the purposes outlined in Section
42   4-29-68 without the requirement of issuing special source revenue

     [3749]                           22
 1   bonds or the requirements of Section 4-29-68(A)(4) by providing a
 2   credit against or payment derived from the fee due from a sponsor.
 3   A direct payment of cash may not be made to the sponsor.
 4         (4) Misallocations of the distribution of the fee in lieu of
 5   taxes on the project pursuant to this chapter may be corrected by
 6   adjusting later distributions, but these adjustments must be made in
 7   the same fiscal year as the misallocations. To the extent
 8   distributions are made improperly in previous years, a claim for
 9   adjustment must be made within one year of the distribution.”
10
11   C. Section 4-29-67(C), (D)(4), (H), and (L)(3) of the 1976 Code,
12   as last amended by Act 384 of 2006, is further amended to read:
13
14      “(C)(1)From the end of the property tax year in which the
15   sponsor and the county execute an inducement agreement, the
16   sponsor has five years in which to enter into an initial lease
17   agreement with the county.
18         (2)(a) From the end of the property tax year in which the
19   sponsor and the county execute the initial lease agreement, the
20   sponsor has five years in which to complete its investment for
21   purposes of qualifying for this section. If the sponsor does not
22   anticipate completing the project within five years, the sponsor
23   may apply to the county before the end of the five-year period for
24   making the investment for an extension of time to complete the
25   project. If the county agrees to grant the extension, it must be in
26   writing, and a copy must be delivered to the department within
27   thirty days of the date the extension was granted. The extension
28   may not exceed five years. If a project receives an extension of
29   less than five years, the sponsor may apply to the county before the
30   end of the extension period for an additional extension of time to
31   complete the project for an aggregate extension of not more than
32   five years. Unless approved as part of the original lease
33   documentation, the county council of the county may approve any
34   extension by resolution, a copy of which must be delivered to the
35   department within thirty days of the date the resolution was
36   adopted.
37           (b) An extension of the five-year period in which to meet
38   the minimum level of investment is not allowed. If the minimum
39   level of investment is not met within five years, all property
40   covered by the lease agreement or agreements reverts retroactively
41   to the payments required by Section 4-29-60. The difference
42   between the fee actually paid by the sponsor and the payment due

     [3749]                           23
 1   pursuant to Section 4-29-60 is subject to interest, as provided in
 2   Section 12-54-25(D). To the extent necessary to determine if a
 3   sponsor or sponsor affiliate has met its investment requirements,
 4   any statute of limitation that might apply pursuant to Section
 5   12-54-85 is suspended for all sponsors and sponsor affiliates and
 6   the department or the county may seek to collect any amounts that
 7   may be due pursuant to this section.
 8           (c) Unless property qualifies as replacement property
 9   pursuant to a contract provision enacted pursuant to subsection
10   (F)(2), property placed in service after the five-year period, or the
11   ten-year period in the case of a project which has received an
12   extension, is not part of the fee agreement pursuant to subsection
13   (D)(2) and is subject to the payments required by Section 4-29-60
14   if the county has title to the property or ad valorem property taxes,
15   if the sponsor has title to the property.
16           (d) For purposes of those businesses qualifying under
17   subsection (D)(4), the five-year period referred to in this
18   subsection is eight years. For those sponsors which, after
19   qualifying pursuant to subsection (D)(4), have more than five
20   hundred million dollars in capital invested in this State and employ
21   more than one thousand people in this State, the five-year period
22   referred to in this subsection is ten years, and the ten-year period is
23   fifteen years.
24         (3) The annual fee provided by subsection (D)(2) is
25   available for no more than twenty years for an applicable piece of
26   property. The sponsor may apply to the county prior to the end of
27   the twenty-year period for an extension of the fee period for up to
28   ten years. The county council of the county may approve an
29   extension by resolution upon a finding of substantial public
30   benefit. A copy of the resolution shall be delivered to the
31   department within thirty days of the date the resolution was
32   adopted. For projects which are completed and placed in service
33   during more than one year, each year‟s investment may be subject
34   to the fee in subsection (D)(2) for twenty years or, if extended as
35   provided in this subsection, up to thirty years, for an aggregate
36   maximum fee period of up to forty years to a maximum total of
37   thirty years for the fee for a single project which has been granted
38   an extension. For those sponsors qualifying under subsection
39   (D)(4), the annual fee is available for no more than thirty years for
40   an applicable piece of property and for those projects placed in
41   service in more than one year, the annual fee is available for a
42   maximum of an aggregate fee period of up to forty-three years or,

     [3749]                            24
 1   for those sponsors qualifying pursuant to item (2)(d), forty-five
 2   years.
 3         (4) During the time period allowed to meet the minimum
 4   investment level, the investor annually must inform the appropriate
 5   county official of the total amount invested.”
 6      “(D)(4)(a) The assessment ratio may not be lower than four
 7   percent:
 8            ( i) in the case of a single sponsor investing at least one
 9   hundred fifty million dollars, resulting in a total investment of at
10   least three hundred million dollars when added to previous
11   investments by a sponsor, and which is creating at least one
12   hundred twenty-five new full-time jobs at the project;
13            (ii) in the case of a single sponsor investing at least four
14   hundred million dollars and which is creating at least two hundred
15   new full-time jobs at the project in this State;
16            (iii) in the case of a project that satisfies the requirements
17   of Section 11-41-30(2)(a), and for which the Secretary of
18   Commerce has delivered certification pursuant to Section
19   11-41-70(2)(a). business including a corporation, its subsidiaries,
20   and its limited liability company members, that builds a project
21   consisting of gas-fired combined-cycle power facility and invests
22   at least four hundred million dollars and creates at least
23   twenty-five full-time jobs as defined in Section 12-6-3360(M) at
24   that project; or
25            (iv) in the case of a project that satisfies the requirements
26   of Section 11-41-30(2)(a), and for which the Secretary of
27   Commerce has delivered certification pursuant to Section
28   11-41-70(2)(a).
29         (b) The new full-time jobs requirement of this item does not
30   apply in the case of a business that paid more than fifty percent of
31   all property taxes actually collected in the county for more than the
32   twenty-five years ending on the date of the lease inducement
33   agreement.
34         (c) In an instance in which the governing body of a county
35   has provided, by contractual agreement, for a change in fee in lieu
36   of taxes arrangements conditioned on a future legislative
37   enactment, a new enactment does not bind the original parties to
38   the agreement unless the change is ratified by the governing body
39   of the county.”
40      “(H)(1) Upon agreement of the parties, and except as provided
41   in subsection (H)(2), an inducement agreement, a millage rate
42   agreement, or both, may be amended or terminated and replaced

     [3749]                            25
 1   with regard to all matters including, but not limited to, the addition
 2   or removal of sponsors or sponsor affiliates.
 3        (2) An amendment or a replacement of an inducement
 4   agreement or millage rate agreement may not be used to lower the
 5   millage rate, discount rate, assessment ratio, or, except as provided
 6   in Sections 4-29-67(C)(2) and (C)(4) increase the term of the
 7   agreement; except that an existing inducement agreement that has
 8   not been implemented by the execution and delivery of a millage
 9   rate agreement or a lease agreement may be amended up to the
10   date of execution and delivery of a millage rate agreement or a
11   lease agreement in the discretion of the governing body.”
12      “(L)(3) A county or municipality or special purpose district that
13   receives and retains revenues from a payment in lieu of taxes may
14   use a portion of this revenue for the purposes outlined in Section
15   4-29-68 without the requirement of issuing special source revenue
16   bonds or the requirements of Section 4-29-68(A)(4) by providing a
17   credit against or payment derived from the fee due from the
18   sponsor. A direct payment of cash may not be made to a sponsor
19   pursuant to these provisions.”
20
21   D. Section 12-44-10 of the 1976 Code is amended to read:
22
23     “Section 12-44-10. This act may be cited as the „Fee in Lieu of
24   Tax Simplification Act of 1997‟.”
25
26   E. Section 12-44-30(7), (13), (14), and (20) of the 1976 Code, as
27   last amended by Act 161 of 2005, is further amended to read:
28
29      “(7) „Enhanced investment‟ means a project which results in a
30   total investment:
31         (a) by a single sponsor of at least two hundred million
32   dollars, resulting in a total investment of at least four hundred
33   million dollars when added to the previous investments, and
34   creating at least two hundred investing at least one hundred fifty
35   million dollars and creating at least one hundred twenty-five new
36   full-time jobs at the project; provided that the new full-time jobs
37   requirement of this subsection does not apply to a taxpayer who
38   paid more than fifty percent of all property taxes actually collected
39   in the county for more than twenty-five years, ending on the date
40   of the fee agreement;



     [3749]                            26
 1         (b) by a single sponsor investing at least four hundred
 2   million dollars and which is creating at least two hundred new
 3   full-time jobs at the project;
 4         (c) by a single sponsor investing at least six hundred million
 5   dollars in this State;
 6         (d) at least four hundred million dollars in the building of a
 7   project consisting of gas-fired combined-cycle power facility by a
 8   sponsor which creates at least twenty-five full-time jobs as defined
 9   in Section 12-6-3360(M) at that project and invests an additional
10   five hundred million dollars in this State. The investment must be
11   made by a sponsor which consists of a corporation, its subsidiaries,
12   and its limited liability companies. The new full-time jobs
13   requirement of this subsection does not apply to a taxpayer which
14   paid more than fifty percent of all property taxes actually collected
15   in the county for more than twenty-five years ending on the date of
16   the fee agreement; or
17         (e) (c) that satisfies the requirements of Section
18   11-41-30(2)(a), and for which the Secretary of Commerce has
19   delivered certification pursuant to Section 11-41-70(2)(a).”
20      “(13) „Investment period‟ means the period beginning with the
21   first day that economic development property is purchased or
22   acquired and ending five years after the commencement date;
23   except that for a project with an enhanced investment as described
24   above, the period ends eight years after the commencement date.
25   The minimum investment must be completed within five years of
26   the commencement date. For an enhanced investment, the
27   applicable minimum investment and job requirements under
28   Section 12-44-30(7) must be completed within eight years of the
29   commencement date. For those sponsors that, after qualifying for
30   the enhanced investment, have more than five hundred million
31   dollars in capital invested in this State and employ more than one
32   thousand people in this State, the investment period ends ten years
33   after the commencement date. If the sponsor does not anticipate
34   completing the project within this period these periods, the sponsor
35   may apply to the county before the end of the investment period
36   for an extension of time to complete the project. If the county
37   agrees to an extension, it must do so in writing and furnish a copy
38   of the extension to the department within thirty days of the date the
39   extension was granted. The extension may not exceed five years in
40   which to complete the project. The extension may not exceed five
41   years. If a project receives an extension of less than five years, the
42   sponsor may apply to the county before the end of the extension

     [3749]                            27
 1   period for an additional extension of time to complete the project
 2   for an aggregate extension of not more than five years. Unless
 3   approved as part of the original fee documentation, the county
 4   council of the county may approve any extension by resolution, a
 5   copy of which must be delivered to the department within thirty
 6   days of the date the resolution was adopted. An extension is not
 7   allowed for the time period in which the sponsor must meet the
 8   minimum investment requirement.”
 9      “(14) „Minimum investment‟ means a project that results in a
10   total an investment by a sponsor of not less than five in the project
11   of at least two and one-half million dollars within the investment
12   period. If a county has an average annual unemployment rate of at
13   least twice the state average during the last twenty-four month
14   period based on data available on the most recent November first,
15   the minimum investment is one million dollars. The department
16   shall designate these reduced investment counties by December
17   thirty-first of each year using data from the South Carolina
18   Employment Security Commission and the United States
19   Department of Commerce. The designations are effective for a
20   sponsor whose fee agreement is signed in the calendar year
21   following the county designation. For all purposes of this chapter,
22   the minimum investment may include amounts expended by a
23   sponsor or sponsor affiliate as a nonresponsible party in a
24   voluntary cleanup contract on the property pursuant to Article 7,
25   Chapter 56 of Title 44, the Brownfields Voluntary Cleanup
26   Program, if the Department of Health and Environmental Control
27   certifies completion of the cleanup. If the amounts under the
28   Brownfields Voluntary Cleanup Program equal at least one million
29   dollars, the investment threshold requirement of this chapter is
30   deemed to have been met.”
31      “(20) „Termination date‟ means the date which is the last day
32   of a property tax year which is the nineteenth year following the
33   first property tax year in which an applicable piece of economic
34   development property is placed in service; provided, however, that
35   the sponsor may apply to the county prior to the termination date
36   for an extension of the termination date beyond the nineteenth year
37   up to ten years. The county council of the county shall approve
38   any extension by resolution upon a finding of substantial public
39   benefit. A copy of the resolution shall be delivered to the
40   department within thirty days of the date the resolution was
41   adopted. With respect to a fee agreement involving an enhanced
42   investment, the termination date is the last day of a property tax

     [3749]                           28
 1   year which is the twenty-ninth year following the first property tax
 2   year in which an applicable piece of economic development
 3   property is placed in service. If the fee agreement is terminated in
 4   accordance with Section 12-44-140, the termination date is the
 5   date the agreement is terminated.”
 6
 7   F. Section 12-44-40(E) and (J) of the 1976 Code, as last
 8   amended by Act 69 of 2003, is further amended to read:
 9
10      “(E) If a fee agreement is not executed within five years after
11   action by the county identifying or reflecting the project, the
12   inducement resolution is adopted by the county council, the real
13   property or tangible personal property of a sponsor for which
14   expenditures have been incurred by the sponsor with respect to the
15   project do not qualify as economic development property. An
16   action includes an inducement resolution adopted by the county
17   council of the county.”
18      “(J)(1) Upon agreement of the parties, and except as provided in
19   item (2), a fee agreement may be amended or terminated and
20   replaced with regard to all matters, including the addition or
21   removal of sponsors or sponsor affiliates.
22         (2) An amendment or replacement of a fee agreement may
23   not be used to lower the millage rate, discount rate, assessment
24   ratio, or, except as provided in Sections 12-44-30(13) and (20),
25   increase the term of the agreement.”
26
27   G. Section 12-44-70 of the 1976 Code, is amended to read:
28
29      “Section 12-44-70. (A) If allowed by the fee agreement and
30   subject to any limitations and conditions contained in the fee
31   agreement, a sponsor may take a credit against the fee established
32   in Section 12-44-50(A)(1) and (3) over the term specified in the
33   fee agreement to offset improvement costs, except that a direct
34   payment of cash must not be made to the sponsor:
35        (1) for a project not located in an industrial development
36   park, to the extent that the cumulative credit taken does not exceed
37   the lesser of:
38           (a) the improvement costs of the project; or
39           (b) the county‟s share of fees distributed from the project
40   under Section 12-44-80(A).
41      A municipality or special purpose district that would otherwise
42   receive a distribution of fee in lieu of taxes under Section

     [3749]                           29
 1   12-44-80(A), may agree to allow to a sponsor a credit against the
 2   fee established in Section 12-44-50(A)(1) or (A)(3) in an amount
 3   not exceeding the share of the fee in lieu of taxes that would have
 4   been distributed to the municipality or special purpose district with
 5   respect to the sponsor‟s project; or
 6        (2) for a project located within an industrial development
 7   park, to the extent that the cumulative credit taken does not exceed
 8   the lesser of:
 9           (a) the improvement costs of the project; or
10           (b) the total amount of fees the county is entitled to retain
11   under the industrial development park agreement.
12      (B) For purposes of this section, improvement costs include the
13   cost of designing, acquiring, constructing, improving, or
14   expanding:
15        (1) the infrastructure serving the project; and
16        (2) improved and unimproved real property, buildings, and
17   structural components of buildings used in the operation of a
18   project in order to enhance economic development.
19      A county, municipality, or special purpose district that receives
20   and retains revenues from a payment in lieu of taxes may use a
21   portion of the revenues for the purposes outlined in Section
22   4-29-68 without the requirements of issuing special source revenue
23   bonds or complying with Section 4-29-68(A)(4) by providing a
24   credit against or payment derived from the fee due from a
25   sponsor.”
26
27   H. If any section, subsection, paragraph, subparagraph, sentence,
28   clause, phrase, or word of this act is for any reason held to be
29   unconstitutional or invalid, such holding shall not affect the
30   constitutionality or validity of the remaining portions of this act,
31   the General Assembly hereby declaring that it would have passed
32   this act, and each and every section, subsection, paragraph,
33   subparagraph, sentence, clause, phrase, and word thereof,
34   irrespective of the fact that any one or more other sections,
35   subsections, paragraphs, subparagraphs, sentences, clauses,
36   phrases, or words hereof may be declared to be unconstitutional,
37   invalid, or otherwise ineffective.
38
39   I. The General Assembly finds that the sections presented in this
40   act constitute one subject as required by Article III, Section 17 of
41   the South Carolina Constitution, in particular finding that each
42   change and each topic relates directly to or in conjunction with

     [3749]                           30
 1   other sections to the subject of tort and other civil action reform as
 2   clearly enumerated in the title.
 3      The General Assembly further finds that a common purpose or
 4   relationship exists among the sections, representing a potential
 5   plurality but not disunity of topics, notwithstanding that reasonable
 6   minds might differ in identifying more than one topic contained in
 7   the act.
 8
 9   J. This SECTION takes effect upon approval by the Governor.
10
11   SECTION 8. Section 12-6-3360(A) of the 1976 Code is amended
12   to read:
13
14      “(A) Taxpayers that operate manufacturing, tourism, processing,
15   warehousing, distribution, research and development, corporate
16   office, qualifying service-related facilities, extraordinary retail
17   establishment, qualifying technology intensive facilities, and banks
18   as defined pursuant to this title are allowed an annual job tax credit
19   as provided in this section. In addition, taxpayers that operate
20   retail facilities and service-related industries qualify for an annual
21   jobs tax credit in counties designated as least developed or
22   distressed, and in counties that are under developed and not
23   traversed by an interstate highway. As used in this section,
24   „corporate office‟ includes general contractors licensed by the
25   South Carolina Department of Labor, Licensing and Regulation.
26   Credits pursuant to this section may be claimed against income
27   taxes imposed by Section 12-6-510 or 12-6-530, bank taxes
28   imposed pursuant to Chapter 11 of this title, and insurance
29   premium taxes imposed pursuant to Chapter 7 of Title 38, and are
30   limited in use to fifty percent of the taxpayer‟s South Carolina
31   income tax, bank tax, or insurance premium tax liability.           In
32   computing a tax payable by a taxpayer pursuant to Section
33   38-7-90, the credit allowable pursuant to this section must be
34   treated as a premium tax paid pursuant to Section 38-7-20.”
35
36   SECTION 9. Section 12-37-220 of the 1976 Code is amended by
37   adding an appropriately numbered item at the end to read:
38
39      “( ) Real property not subject to property tax, leased by a state
40   agency, county, municipality, other political subdivision, or other
41   state entity to an entity that would not be subject to property tax if
42   the entity owned the property.”

     [3749]                            31
 1   SECTION 10. Notwithstanding any other provision of law, a
 2   county council by ordinance may delay implementation of values
 3   in a countywide assessment and equalization plan scheduled for
 4   the current tax year until property tax year 2008. The provisions
 5   of this section do not alter the index of taxpaying ability as defined
 6   in Section 59-20-20(3).
 7
 8   SECTION 11. Section 61-4-737 of the 1976 Code is amended to
 9   read:
10
11     “Section 61-4-737. Notwithstanding any other provision of law
12   or regulation, the holder of a retail wine permit for off-premises
13   consumption whose primary product is beer, wine, or distilled
14   spirits may conduct, in accordance with department rulings or
15   regulations, not more than twenty-four wine tastings at the retail
16   location in a calendar year quarter.”
17
18   SECTION 12.A. Article 13, Chapter 60, Title 12 is amended by
19   adding:
20
21     “Section 12-60-3312. Except as otherwise provided by law or
22   proper judicial order, all proceedings and records of a contested
23   case hearing of the Administrative Law Court of a matter covered
24   by the South Carolina Revenue Procedures Act are open to the
25   public.”
26
27   B. This section takes effect upon approval by the Governor and
28   applies to all tax decisions and associated information filed of
29   record, whether or not the decision in the contested case hearing
30   was issued before, on, or after that date.
31
32   SECTION 13.A. Section 6-34-40(C)(3) and (5) of the 1976
33   Code, as added by Act 285 of 2006, is amended to read:
34
35      “(3) The credit earned pursuant to this subsection by a general
36   partnership, limited partnership, limited liability company, or any
37   other entity taxed as a partnership pursuant to Subchapter K of the
38   Internal Revenue Code must be passed through to its partners and
39   may be allocated among any of its partners, including without
40   limitation, an allocation of the entire credit to one partner, in a
41   manner agreed by the partners that is consistent with Subchapter K
42   of the Internal Revenue Code. As used in this subsection, the term

     [3749]                            32
 1   „partner‟ means a partner, member, or owner of an interest in the
 2   pass through entity, as applicable.
 3     (5) The South Carolina Department of Revenue shall may
 4   promulgate regulations to verify the site‟s eligibility in accordance
 5   with the provisions of this chapter.”
 6
 7   B. This section takes effect upon approval by the Governor and
 8   Subsection (C)(3) applies for rehabilitation expenses for eligible
 9   sites placed in service after June 30, 2006.
10
11   SECTION 14. Section 12-2-20 of the 1976 Code, as last
12   amended by Act 69 of 2003, is further amended to read:
13
14     “Section 12-2-20. As used in this title and in other titles which
15   that provide for taxes administered by the department, and unless
16   otherwise required by the context, the term:
17     (1) „person‟ includes an any individual, a trust, estate,
18   partnership, receiver, association, company, limited liability
19   company, corporation, or any other entity or group; and
20     (2) „individual‟ means a human being.”
21
22   SECTION 15. Section 12-6-40(C) of the 1976 Code, as last
23   amended by Act 89 of 2001, is further amended to read:
24
25      “(C) If a taxpayer complies with the provisions of Internal
26   Revenue Code Section 367 (Foreign Corporations), it is not
27   necessary for the taxpayer to obtain the approval of the
28   department. The A taxpayer filing a paper return shall attach a
29   copy of the approval received from the Internal Revenue Service to
30   its next South Carolina income tax return. A taxpayer filing an
31   electronic return shall keep a copy of the approval with his tax
32   records.”
33
34   SECTION 16.A. Section 12-6-545(E)(1) of the 1976 Code, as
35   last amended by Act 386 of 2006, is further amended to read:
36
37      “(1) Notwithstanding item (A)(1)(ed) of this section, if a
38   taxpayer owns an interest in one or more pass-through businesses
39   that have a total gross income of less than one million dollars and
40   taxable income of less than one hundred thousand dollars and his
41   total South Carolina taxable income from pass-through entities for
42   which he performs personal services is one hundred thousand

     [3749]                           33
 1   dollars or less, excluding capital gains and losses, then the
 2   taxpayer may elect, instead of determining the actual amount of
 3   active trade or business income related to his personal services, to
 4   treat fifty percent of his active trade or business income as not
 5   related to his personal services. For purposes of this item, the term
 6   taxpayer „taxpayer‟ includes both taxpayers who file a joint
 7   return.”
 8
 9   B. This section takes effect upon approval by the Governor and
10   applies to tax years beginning after December 31, 2005.
11
12   SECTION 17.A. Section 12-6-1140(10) of the 1976 Code, as
13   last amended by Act 242 of 2006, is further amended to read:
14
15      “(10)(a) a deduction calculated as provided in this item for a
16   volunteer firefighter, rescue squad member, volunteer member of a
17   Hazardous Materials (HAZMAT) Response Team, reserve police
18   officer, Department of Natural Resources deputy enforcement
19   officer, or member of the State Guard not otherwise eligible for
20   this exemption.
21         (b) An individual may receive only one deduction pursuant
22   to this item. The Board of Economic Advisors annually shall
23   estimate a maximum deduction that may be permitted under this
24   section for a taxable year based on an individual income tax
25   revenue loss of three million one hundred thousand dollars
26   attributable to this deduction and shall certify that maximum
27   deduction to the Department of Revenue and for the applicable
28   taxable year, the maximum deduction amount must not exceed the
29   lesser of the certified estimate or three thousand dollars.
30         (c)(i) Only a volunteer earning a minimum number of points
31   pursuant to Section 23-9-190 is eligible for this deduction unless
32   otherwise provided in this item.
33            (ii) In the case of a reserve police officer and in lieu of
34   minimum points determining eligibility, this deduction is allowed
35   only if the reserve police officer‟s coordinator-supervisor certifies
36   in writing to the officer that the officer met all requirements of
37   Chapter 28, Title 23 applicable to a reserve police officer for the
38   entire taxable year.
39            (iii) In the case of a Department of Natural Resources
40   deputy enforcement officer and in lieu of minimum points
41   determining eligibility, this deduction is allowed only if the deputy
42   enforcement officer‟s supervisor certifies in writing to the officer

     [3749]                           34
 1   that the officer met all requirements of Section 50-3-315 for the
 2   entire taxable year.
 3           (iv) In the case of a member of the State Guard and in lieu
 4   of minimum points determining eligibility, this deduction is
 5   allowed only if the State Guard member completes a minimum of
 6   sixteen hours of training or drill each month, equating to one
 7   hundred ninety-two hours a year, and the member‟s commanding
 8   officer certifies in writing to the member that the member met
 9   these requirements.
10        (d) These certifications from supervisors of taxpayers
11   claiming the deduction must be on a form approved by the
12   Department of Revenue that must be filed with the officer‟s or
13   member‟s tax return for the exemption to be claimed department.
14   The department may require a copy of the certification be attached
15   to the taxpayer‟s income tax return or otherwise be made available
16   to the department.”
17
18   B. This section takes effect upon approval by the Governor and
19   applies to taxable years beginning after 2005.
20
21   SECTION 18.A. Section 12-6-3360(H) of the 1976 Code, as
22   last amended by Act 277 of 2000, is further amended to read:
23
24      “(H) A credit claimed under pursuant to this section but not
25   used in a taxable year may be carried forward for fifteen years
26   from the taxable year in which the credit is earned by the taxpayer.
27   Credits which that are carried forward must be used in the order
28   earned and before jobs credits claimed in the current year. A
29   taxpayer who earns credits allowed by this section and who also is
30   eligible for the moratorium provided in Section 12-6-3365 3367
31   may claim the credits and may carry forward unused credits
32   beginning after the moratorium period expires.”
33
34   B. This section takes effect upon approval by the Governor and
35   applies to taxable years beginning after 2005.
36
37   SECTION 19.A. Section 12-6-3360(M)(1) of the 1976 Code, as
38   last amended by Act 384 of 2006, is further amended to read:
39
40     “(1) „Taxpayer‟ means a sole proprietor, partnership,
41   corporation of any classification, limited liability company, or
42   association taxable as a business entity that is subject to South

     [3749]                           35
 1   Carolina taxes as contained in Sections Section 12-6-510 and,
 2   Section 12-6-530, Chapter 11 of Title 12, and or Chapter 7 of Title
 3   38.”
 4
 5   B. This section takes effect upon approval by the Governor.
 6
 7   SECTION 20.A. Section 12-6-3360(M)(10) of the 1976 Code is
 8   amended to read:
 9
10     “(10) „Corporate office facility‟ means a corporate
11   headquarters that meets the definition of a „corporate headquarters‟
12   contained in Section 12-6-3410(J)(1). The corporate headquarters
13   of a general contractor licensed by the South Carolina Department
14   of Labor, Licensing and Regulation qualifies even if it is not a
15   regional or national headquarters as those terms are defined in
16   Section 12-6-3410(J)(1).”
17
18   B. This section takes effect upon approval by the Governor and
19   applies to tax years beginning after December 31, 2005.
20
21   SECTION 21. Section 12-6-3535(A) of the 1976 Code, as last
22   amended by Act 386 of 2006, and the first paragraph of Section
23   12-6-3535(B), as last amended by Act 69 of 2003, is further
24   amended to read:
25
26      “(A) A taxpayer who is allowed a federal income tax credit
27   pursuant to Section 47 of the Internal Revenue Code for making
28   qualified rehabilitation expenditures for a certified historic
29   structure located in this State is allowed to claim a credit against
30   income taxes imposed by Sections 12-6-510 and 12-6-530 and
31   license fees imposed by Chapter 20 of Title 12 this title. For the
32   purposes of this section, „qualified rehabilitation expenditures‟ and
33   „certified historic structure‟ are defined as provided in the Internal
34   Revenue Code Section 47 and the applicable treasury regulations.
35   The amount of the credit is ten percent of the expenditures that
36   qualify for the federal credit. To claim the credit allowed by this
37   subsection, the a taxpayer filing a paper return must attach to the
38   return a copy of the section of the federal income tax return
39   showing the credit claimed, along with any other information that
40   the Department of Revenue determines is necessary for the
41   calculation of the credit provided by this subsection.


     [3749]                            36
 1      (B) A taxpayer who is not eligible for a federal income tax
 2   credit under Section 47 of the Internal Revenue Code and who
 3   makes rehabilitation expenses for a certified historic residential
 4   structure located in this State is allowed to claim a credit against
 5   the tax imposed by this chapter. The amount of the credit is
 6   twenty-five percent of the rehabilitation expenses. To claim the
 7   credit allowed by this subsection, the a taxpayer filing a paper
 8   return must attach to the return a copy of the certification obtained
 9   from the State Historic Preservation Officer verifying that the
10   historic structure has been rehabilitated in accordance with this
11   subsection, along with all information that the Department of
12   Revenue determines is necessary for the calculation of the credit
13   provided by this subsection. A taxpayer filing an electronic return
14   shall keep a copy of the certification with his tax records.”
15
16   SECTION 22.A. Section 12-6-3585 of the 1976 Code, as added
17   by Act 319 of 2006, is amended to read:
18
19      “Section 12-6-3585. (A) A taxpayer may claim as a credit
20   against his state income tax imposed by Chapter 6 of Title 12, bank
21   tax imposed by Chapter 11 of Title 12, license fees imposed by
22   Chapter 20 of Title 12, or insurance premiums imposed by Chapter
23   7 of Title 38, or any combination of them, one hundred percent of
24   an amount contributed to the Industry Partnership Fund at the
25   South Carolina Research Authority, or an SCRA-designated
26   affiliate, or both, pursuant to Section 13-17-88(E), up to a
27   maximum credit of six hundred fifty thousand dollars for an
28   individual a single taxpayer, not to exceed an aggregate credit of
29   two million dollars for all taxpayers in tax year 2006; up to a
30   maximum credit of one million three hundred thousand dollars for
31   an individual a single taxpayer, not to exceed an aggregate credit
32   of four million dollars for all taxpayers in tax year 2007; and up to
33   a maximum credit of two million dollars for an individual a single
34   taxpayer, not to exceed an aggregate credit of six million dollars
35   for all taxpayers for each tax year beginning after December 31,
36   2007. For purposes of determining a taxpayer‟s entitlement to the
37   credit for qualified contributions for a given tax year in which
38   more than the applicable aggregate annual limit on the credit is
39   contributed by taxpayers for that year, taxpayers who have made
40   contributions that are intended to be qualified contributions earlier
41   in the applicable tax year than other taxpayers must be given
42   priority entitlement to the credit. The SCRA shall certify to

     [3749]                           37
 1   taxpayers who express a bona fide intention of making one or more
 2   qualified contributions as to whether the taxpayer is entitled to that
 3   priority.
 4      (B) The amount of the credit is equal to one hundred percent of
 5   the amount of the taxpayer‟s qualified contributions to the Industry
 6   Partnership Fund, subject to the limitations in this section. The
 7   credit is nonrefundable.
 8      (C) The use of the credit is limited to the taxpayer‟s applicable
 9   income or premium tax or license fee liability for the tax year of
10   the taxpayer after the application of all other credits. An unused
11   credit may be carried forward ten tax years of the taxpayer after
12   the end of the tax year of the taxpayer during which the qualified
13   contribution was made.
14      (D) A contribution is not a qualified contribution if it is subject
15   to conditions or limitations regarding the use of the contribution.
16      (E) „Taxpayer‟ means an individual, corporation, partnership,
17   trust, bank, insurance company, or other entity having a state
18   income or insurance premium tax or license fee liability who has
19   made a qualified contribution.
20      (F) To claim qualify for the credit, the taxpayer shall attach to
21   the return a copy of retain a form provided by SCRA identifying
22   the taxpayer‟s qualified contribution and the year and amount of
23   credit for which the taxpayer qualifies. The Department of
24   Revenue may require a copy of the form be attached to the
25   taxpayer‟s income tax return or be provided otherwise to the
26   department.
27      (G) The Department of Revenue department may require
28   information and submissions by the taxpayer as it considers
29   appropriate in relation to a taxpayer‟s claim of entitlement to the
30   credit.
31      (H) The merger, consolidation, or reorganization of a
32   corporation where tax attributes survive does not create new
33   eligibility in a succeeding corporation, but unused credits may be
34   transferred and continued by the succeeding corporation. In
35   addition, a corporation or partnership may assign its rights to its
36   unused credit to another corporation or partnership if it transfers
37   all, or substantially all, of the assets of the corporation or
38   partnership or all, or substantially all, of the assets of the trade or
39   business or operating division of the corporation or partnership to
40   another corporation or partnership.



     [3749]                            38
 1     (I) A taxpayer who claims the credit may not take a deduction
 2   in relation to the qualified contribution which gives rise to such
 3   credit.”
 4
 5   B. This section takes effect upon approval by the Governor and
 6   applies to tax years beginning after December 31, 2005.
 7
 8   SECTION 23.A. Section 12-6-3587(A) of the 1976 Code, as
 9   added by Act 386 of 2006, is amended to read:
10
11      “(A) There is allowed as a tax credit against the income tax
12   liability of a taxpayer imposed by this chapter an amount equal to
13   twenty-five percent of the costs incurred by the taxpayer in the
14   installation of a solar energy heating or cooling system, or both, in
15   a building in South Carolina owned by the taxpayer. The tax credit
16   allowed by this section must not be claimed before the completion
17   of the installation, and must be claimed for the year that the costs
18   are incurred. The amount of the credit may not exceed three
19   thousand five hundred dollars or fifty percent of the taxpayer‟s tax
20   liability for that taxable year, whichever is less. If the amount of
21   the credit exceeds three thousand five hundred dollars, the
22   taxpayer may carry forward the excess for up to ten years.”
23
24   B. This section takes effect upon approval by the Governor and
25   applies to installation costs incurred after December 31, 2005.
26
27   SECTION 24. Section 12-6-4980 of the 1976 Code, as last
28   amended by Act 363 of 2002, is further amended to read:
29
30      “Section 12-6-4980. (A) The department, for good cause, may
31   allow an extension of time not to exceed six months for filing
32   returns under this chapter or the annual report under Chapter 20 of
33   this title. A taxpayer requesting an extension of time for filing, on
34   or before the date the return or annual report is due, shall submit a
35   tentative return and pay the full amount of the tax and license fee
36   due.
37      (B) When a taxpayer is not required to make a payment of tax
38   at the time of the extension, and the taxpayer has been granted an
39   extension of time to file a federal income tax return, the taxpayer is
40   not required to apply to the department for an extension of time to
41   file the South Carolina return. The department shall accept a copy,
42   if applicable, of a properly filed federal extension attached to the

     [3749]                            39
 1   South Carolina return when filed. Any taxes shown to be due on a
 2   return required pursuant to this chapter must be paid at the time the
 3   return is due to be filed, without regard to any extension of time
 4   granted for filing the return.
 5      (C) An extension may not be granted to a taxpayer who has
 6   been granted an extension for a previous period and has not
 7   fulfilled the requirements of the previous period.”
 8
 9   SECTION 25. Section 12-8-580(D)(2) of the 1976 Code is
10   amended to read:
11
12      “(2) The buyer is liable for the collection and payment of an
13   amount due pursuant to this section. The A lending institution,
14   real estate agent, and or closing attorney are is not liable for the
15   collection of an amount due from the buyer pursuant to this
16   section. However, a lending institution, real estate agent, or
17   closing attorney that has in fact withheld taxes is required timely to
18   remit the amount withheld within the timeframe provided in item
19   (1) of this subsection.”
20
21   SECTION 26. Section 12-8-590(D) of the 1976 Code is
22   amended to read:
23
24      “(D) A partnership required to withhold taxes on distributed or
25   undistributed income shall make a return with each payment of tax
26   to the department disclosing on the return the names, taxpayer
27   identification number, the total amount of South Carolina taxable
28   income paid or credited to each nonresident partner, the tax
29   withheld for each nonresident partner, and any other information
30   the department requires. The partnership shall furnish to each
31   nonresident shareholder partner a written statement as required by
32   Section 12-8-1540(A) as proof of the amount of his share of
33   distributed or undistributed income that has been withheld.”
34
35   SECTION 27. Section 12-8-2020 of the 1976 code is amended
36   to read:
37
38      “Section 12-8-2020. (A) A refund or credit may be allowed
39   for an overpayment of tax withheld under pursuant to this chapter
40   to:



     [3749]                            40
 1         (1) the withholding agent to the extent that the withholding
 2   agent did not withhold the overpayment amount from the taxpayer;
 3   or
 4         (2) the taxpayer to the extent that the overpayment was
 5   withheld from the taxpayer.
 6       (B) A refund or credit may be granted to a withholding agent
 7   who has withheld taxes in error if the withholding agent furnishes
 8   evidence that has refunded or unconditionally credited the amount
 9   erroneously withheld has been refunded or unconditionally
10   credited to the taxpayer and the amount is refunded or credited to
11   the taxpayer before the issuance of the original wage and tax
12   statement for the calendar year.
13       (C) The withholding agent or taxpayer shall apply for a refund
14   or credit under this section within three years from the deemed
15   date of the overpayment. A refund or credit is not allowed for less
16   than one dollar. For purposes of this section, the deemed date of
17   overpayment is the original due date of the return in which the
18   withholding is credited against tax imposed by Chapter 6 of this
19   title.”
20
21   SECTION 28. Section 12-20-90 of the 1976 Code, as last
22   amended by Act 89 of 2001, is further amended to read:
23
24      “Section 12-20-90. The amount of the license fee required by
25   Section 12-20-50 for a bank holding company, insurance holding
26   company system, and savings and loan holding company must be
27   measured by the capital stock and paid-in surplus of the holding
28   company exclusive of the capital stock and paid-in surplus of a
29   bank, insurer, or savings and loan association that is a subsidiary of
30   the holding company. For the purposes of this section, „bank‟,
31   „bank holding company‟, and „subsidiary‟ of a bank holding
32   company have the same definitions as in Section 34-24-20
33   34-25-10; „insurer‟, „insurance holding company system‟, and a
34   „subsidiary‟ of an insurance holding company system have the
35   same definitions as in Section 38-21-10; and savings and loan
36   „association‟, „savings and loan holding company‟, and a
37   „subsidiary‟ of a savings and loan company have the same
38   definitions as in Section 34-28-300.”
39
40   SECTION 29.A. Section 12-23-20(9) of the 1976 Code, as
41   added by Act 335 of 2006, is amended to read:
42

     [3749]                            41
 1      “(9) electricity used by a technology intensive facility as defined
 2   in Section 12-6-3360(M)(14)(b) and qualifying for the sales tax
 3   exemption provided pursuant to Section 12-36-2120(65), and the
 4   equipment and raw materials including, without limitation, fuel
 5   used by such qualifying facility to generate, transform, transmit,
 6   distribute, or manage electricity for use in such a facility. The
 7   running of the periods of limitation within which the department
 8   may assess taxes pursuant to Section 12-54-85 is suspended during
 9   the same time period it is suspended in item (65)(d) of Section
10   12-36-2120.”
11
12   B.   This section takes effect June 6, 2006.
13
14   SECTION 30.A. Section 12-36-2120(66) of the 1976 Code, as
15   added by Act 335 of 2006, is amended to read:
16
17      “(66) electricity used by a technology intensive facility as
18   defined in Section 12-6-3360(M)(14)(b) and qualifying for the
19   sales tax exemption provided pursuant to item (65) of this section,
20   and the equipment and raw materials including, without limitation,
21   fuel used by such qualifying facility to generate, transform,
22   transmit, distribute, or manage electricity for use in such a facility.
23   The running of the periods of limitation within which the
24   department may assess taxes pursuant to Section 12-54-85 is
25   suspended during the same time period it is suspended in item
26   (65)(d) of this section.”
27
28   B.   This section takes effect June 6, 2006.
29
30   SECTION 31. Section 12-36-2510(C) of the 1976 Code, as last
31   amended by Act 145 of 2005, is further amended to read:
32
33      “(C) A seller that complies with the provisions of this section is
34   relieved from any tax otherwise applicable if it is determined that
35   the purchaser improperly claimed an exemption or exclusion by
36   use of a certificate, provided the seller fraudulently did not
37   fraudulently fail to collect or remit the tax, or both, or solicit a
38   purchaser to participate in an unlawful claim of an exemption. The
39   liability for any tax shifts to the purchaser who improperly claimed
40   the exemption or exclusion by use of the certificate.”
41


     [3749]                            42
 1   SECTION 32. Section 12-37-270(C) of the 1976 Code, as last
 2   amended by Act 386 of 2006, is further amended to read:
 3
 4      “(C) The department shall may promulgate regulations
 5   necessary to carry out the provisions of this section.”
 6      SECTION 33. Section 12-54-70(a) of the 1976 Code is
 7   amended to read:
 8      “(a) The department may, for good cause, allow further time for
 9   the filing of returns or remitting of tax due, required under by the
10   provisions of law administered by the department. The request for
11   an extension may be granted only if the request is must be filed
12   with the department on or before the day the return of the tax is
13   due. Except as otherwise provided in this section, the department
14   may allow an extension of time not to exceed six months. A
15   tentative return is required reflecting one hundred percent of the
16   anticipated tax to be paid for the taxable period, to be accompanied
17   by a remittance for the tentative tax liability. Interest at the rate as
18   provided under in Section 12-54-25, calculated from the date the
19   tax was originally due, must be added to the balance due whenever
20   an extension to file or to remit tax due is granted.”
21
22   SECTION 34.A. Section 12-54-85(C) of the 1976 Code, as last
23   amended by Act 399 of 2000, is further amended to read:
24
25      “(C) Taxes may be determined and assessed after the thirty-six
26   month limitation if:
27         (1) there is fraudulent intent to evade the taxes;
28         (2) the taxpayer failed to file a return or document as
29   required by law;
30         (3) there is a twenty percent understatement of the total of
31   all taxes required to be shown on the return or document. The taxes
32   in this case may be assessed at any time within seventy-two
33   months from the date the return or document was filed or due to be
34   filed, whichever is later. For the purpose of this item, the total of
35   all taxes required to be shown on the return is the total of all taxes
36   required to be shown on the return before any reduction for
37   estimated payments, withholding payments, other prepayments, or
38   discount allowed for timely filing of the return and payment of the
39   tax due, but that amount must be reduced by another credit that
40   may be claimed on the return;
41         (4) the person liable for any taxes consents in writing, before
42   the expiration of the time prescribed in this section for assessing

     [3749]                            43
 1   taxes due, to the assessment of the taxes after the time prescribed
 2   by this section. ; or
 3        (5) the tax is a use tax imposed under Chapter 36 of this title,
 4   or a local use tax administered and collected by the department on
 5   behalf of a local jurisdiction, and the assessment of the use tax is
 6   the result of information received from, or as a result of exchange
 7   agreements with, other state or local taxing authorities, regional or
 8   national tax administration organizations, or the federal
 9   government. The use taxes in this case may be assessed at any
10   time within twelve months after the department receives the
11   information, but no later than seventy-two months after the last day
12   the use tax may be paid without penalty.”
13
14   B. This section takes effect upon approval by the Governor and
15   applies to all assessments issued after that date.
16
17   SECTION 35.A. Section 12-54-155(D)(2) of the 1976 Code, as
18   last amended by Act 386 of 2006, is further amended to read:
19
20     “(2) In the case of underpayment attributable to a substantial
21   valuation misstatement with respect to charitable deduction
22   property, item (1) does not apply if unless:
23           (a) the claimed value of the property was based on a
24   qualified appraisal made by a qualified appraiser; and
25           (b) in addition to obtaining the appraisal, the taxpayer
26   made a good faith investigation of the value of the contributed
27   property.”
28
29   B. This section takes effect upon approval by the Governor and
30   applies for tax periods beginning after December 31, 2006.
31
32   SECTION 36. Section 12-54-240(B)(12), as last amended by
33   Act 145 of 2005, and (13) of the 1976 Code, is further amended to
34   read:
35
36      “(12)(a) disclosure to a state agency, county auditor, or county
37   assessor of whether a resident or nonresident tax return was filed
38   by a particular taxpayer, whether the return is joint or individual,
39   the name of any a taxpayer filing jointly with the taxpayer, the
40   taxpayer‟s address as shown on the return, and what county code
41   of residence is contained on the return.


     [3749]                           44
 1       (b) disclosure to any a county auditor or county assessor of
 2   whether the four percent assessment pursuant to Section
 3   12-43-220(c)(1) has been claimed by a taxpayer in any a county.
 4     (13) disclosure of information pursuant to Section
 5   12-54-1010(c) or 12-54-1020(c) Reserved;”
 6
 7   SECTION 37.A. Section 12-54-240(B) of the 1976 Code, as last
 8   amended by Act 386 of 2006, is further amended by adding at the
 9   end:
10
11     “(26) disclosure of information referred to in Section
12   12-60-3312.”
13
14   B. This section takes effect upon approval by the Governor and
15   applies to all tax decisions and associated information filed
16   whether the decision was issued before or after that date.
17
18   SECTION 38.A. Section 12-60-20 of the 1976 Code, as last
19   amended by Act 69 of 2003, is further amended to read:
20
21      “Section 12-60-20. It is the intent of the General Assembly to
22   provide the people of this State with a straightforward procedure to
23   determine any a dispute with the Department of Revenue and a
24   dispute concerning property taxes. The South Carolina Revenue
25   Procedures Act must be interpreted and construed in accordance
26   with, and in furtherance of, that intent.”
27
28   B.   This section takes effect upon approval by the Governor.
29
30   SECTION 39. Section 12-60-90(C) of the 1976 Code, as last
31   amended by Act 69 of 2003, is further amended to read:
32
33      “(C) Taxpayers may be represented during the administrative tax
34   process by:
35         (1) the same individuals who may represent them in
36   administrative tax proceedings with the Internal Revenue Service
37   pursuant to Section 10.3(a), (b), and (c), Section 10.7(a), (c)(1)(i)
38   through (c)(1)(vi), and (c)(2 1)(viii), and Section 10.7(d) and (e) of
39   United States Treasury Department Circular No. 230; and
40         (2) a real estate appraiser who is registered, licensed, or
41   certified pursuant to Chapter 60 of Title 40 during the


     [3749]                            45
 1   administrative tax process in a matter limited to questions
 2   concerning the valuation of real property.”
 3
 4   SECTION 40. Section 6-1-320(A) of the 1976 Code, as last
 5   amended by Act 388 of 2006, is further amended to read:
 6
 7     “(A) Notwithstanding Section 12-37-251(E), a local governing
 8   body may increase the millage rate imposed for general operating
 9   purposes above the rate imposed for such purposes for the
10   preceding tax year only to the extent of the increase in the average
11   of the twelve monthly consumer price indexes for the most recent
12   twelve-month period consisting of January through December of
13   the preceding calendar year, plus, beginning in 2007, the
14   percentage increase in the previous year in the population of the
15   entity as determined by the Office of Research and Statistics of the
16   State Budget and Control Board. If an entity experiences a
17   reduction in population, the percentage change in population is
18   deemed to be zero. However, in the year in which a reassessment
19   program is implemented, the rollback millage, as calculated
20   pursuant to Section 12-37-251(E), must be used in lieu of the
21   previous year‟s millage rate.”
22
23     SECTION 41. Article 5, Chapter 4, Title 12 is amended by
24   adding:
25
26      “Section 12-4-535. (A) the department may issue a department
27   determination directing the appropriate county official to comply
28   with all applicable state law relating to the valuation, assessment,
29   or taxation of property.
30      (B) Within thirty days of the date the department determination
31   is mailed or hand delivered, the county must respond in writing by
32   first class mail or hand delivery to the department and state its
33   agreement or disagreement with the department determination.
34      (C) If the county disagrees with, or fails to respond to, the
35   department determination, the department by its director or
36   designee or the county governing body by resolution may request a
37   contested case hearing before the Administrative Law Court within
38   thirty days after the date the county disagreement notice was, or
39   should have been, mailed or hand delivered. A request for a
40   contested case hearing before the Administrative Law Court must
41   be made in accordance with its rules.


     [3749]                           46
 1      (D) The county governing body by resolution may request a
 2   department determination on any state law regarding the valuation,
 3   assessment, or taxation of property. Within thirty days of a request
 4   by a county governing body, the department may issue, in its
 5   discretion, the determination, which must be issued by first class
 6   mail or hand delivery to the county.”
 7
 8   SECTION 42. Section 12-4-320 of the 1976 Code is amended
 9   by adding an appropriately numbered item at the end:
10
11      “( ) enter into an installment payment agreement with a
12   taxpayer.”
13
14   SECTION 43. Section 12-6-40(A)(1)(a) of the 1976 Code, as
15   last amended by Act 386 of 2006, is further amended to read:
16
17     “(a) Except as otherwise provided, „Internal Revenue Code‟
18   means the Internal Revenue Code of 1986, as amended through
19   December 31, 20052006, and includes the effective date provisions
20   contained in it.”
21
22   SECTION 44.A. Section 12-6-50(2) of the 1976 Code is
23   amended to read:
24
25     “(2) Sections 22 through 5354, 515, 853, 901 through 908, and
26   960 relating to tax credits;”
27
28   B. This section takes effect upon approval by the Governor and
29   applies to tax years beginning after December 31, 2005.
30
31   SECTION 45. Section 12-6-3360(B)(5)(f) and (h) of the 1976
32   Code, as added by Act 161 of 2005 and Act 386 of 2006,
33   respectively, is amended to read:
34
35      “(f) In a county in which one employer has lost at least 1,500
36   jobs in a calendar year, the credit allowed is one tier higher than
37   the credit for which the county would otherwise qualify. The
38   one-tier-higher credit allowed by this subsection is allowed for a
39   three-year period beginning immediately following the year during
40   which the jobs were lost five taxable years for jobs created in
41   2006, 2007, and 2008. This subsection does not apply to a job


     [3749]                           47
 1   created in a county eligible for a higher tier pursuant to another
 2   provision of this section.
 3      (h) In a county in which one employer has lost at least 1,500
 4   jobs in calendar year 2006, the credit allowed is three tiers higher
 5   than the credit for which the county would otherwise qualify. The
 6   three-tier-higher credit allowed by this subsection is allowed for
 7   five taxable years beginning for jobs created in 2007 and 2008.
 8   This subsection does not apply to a job created in a county eligible
 9   for a higher tier pursuant to another provision of this section.”
10
11   SECTION 46.A. Section 12-6-3362(B) of the 1976 Code, as
12   added by Act 389 of 2006, is amended to read:
13
14      “(B) Beginning with the first full month wages are paid for year
15   the new full-time jobs are created, the taxpayer is allowed a jobs
16   tax credit in an amount equal to 8.33 percent of the maximum
17   credit amount calculated pursuant to Section 12-6-3360(C)(2) each
18   month, for not more than sixty consecutive months, multiplied by
19   the number of new full-time jobs for which wages are paid for the
20   full month five consecutive years. A credit is not allowed for any
21   month a year in which the new employment full-time job increase
22   falls below the minimum level of two. To claim the credits
23   allowed pursuant to Section 12-6-3360(C)(2)(a), the minimum
24   gross wages requirement is met if the gross wages paid for the
25   month, when annualized, meet the minimum requirement.”
26
27   B. This section takes effect upon approval by the Governor and
28   applies to tax years beginning after December 31, 2005.
29
30   SECTION 47. A.Section 12-36-2120(67) of the 1976 Code, as
31   added by Act 384 of 2006, is amended to read:
32
33      “(67) effective July 1, 2011, construction materials used in the
34   construction of a new or expanded single manufacturing and or
35   distribution facility, or one that serves both purposes, with a capital
36   investment of at least one hundred million in real and personal
37   property at a single site in the State over an eighteen-month period.
38   The taxpayer must provide notice of the exemption, and the
39   Department of Revenue may assess taxes owing in the manner
40   provided in Section 12-36-2120(51).”
41


     [3749]                            48
 1   B. Notwithstanding the sales and use rates imposed pursuant to
 2   Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed
 3   pursuant to that chapter on the gross proceeds of qualifying
 4   construction materials used in the construction of a single
 5   manufacturing or distribution facility, as provided in item (67), is
 6   four percent for sales from July 1, 2007, through June 30, 2008,
 7   three percent for sales from July 1, 2008, through June 30, 2009,
 8   two percent for sales from July 1, 2009, through June 30, 2010,
 9   and one percent for sales from July 1, 2010, through June 30,
10   2011.
11
12   SECTION 48. Section 12-54-200(C) of the 1976 Code, as last
13   amended by Act 89 of 2001, is further amended to read:
14
15      “(C) If A person is required to maintain a separate account, he
16   must give the name of the financial institution, the account
17   number, and other information the department requires. Taxes,
18   penalties, and interest due must be withdrawn from the account by
19   preprinted, consecutively numbered checks signed by a properly
20   authorized officer, partner, manager, employee, or member of the
21   taxpayer and made payable to the department. Monies deposited in
22   the account may must not be commingled with other funds. The
23   department, at its discretion, may apply Section 12-54-250, if the
24   amount due from the taxpayer is twenty fifteen thousand dollars or
25   more.”
26
27   SECTION 49. Section 12-54-240(B) of the 1976 Code, as last
28   amended by Act 386 of 2006, is further amended by adding
29   appropriately numbered items at the end:
30
31     “( ) disclosure of information to the State Treasurer necessary
32   for the administration and enforcement of the Uniform Unclaimed
33   Property Act;
34     ( ) exchange of information between the department, the
35   Department of Commerce and its agency, the Venture Capital
36   Authority, and the Department of Insurance for the purpose of
37   registering and verifying the existence, possession, transfer, and
38   use of tax credits pursuant to Chapter 45 of Title 11.”
39
40   SECTION 50. Section 12-54-250(A) and (B) of the 1976 Code,
41   as last amended by Act 163 of 2002, is further amended to read:
42

     [3749]                           49
 1      “(A)(1) The South Carolina Department of Revenue may
 2   require, consistent with the cash management policies of the State
 3   Treasurer, that any a person owing fifteen thousand dollars or more
 4   in connection with any return, report, or other document to be filed
 5   with the department or a withholding agent making at least
 6   twenty-four payments in a year pursuant to Section 12-8-1520(D)
 7   shall pay the tax liability to the State no later than the date the
 8   payment is required by law to be made, in funds which that are
 9   available immediately to the State on the date of payment.
10   „Payment in immediately available funds‟ may be made means
11   payment by cash to the main office of the department before five
12   o‟clock p.m. or by any electronic means established by the
13   department, with the approval of the State Treasurer, which
14   ensures the availability settlement of those funds to in the State
15   state‟s account on or before the banking day following the due date
16   of payment the tax as provided by law.
17         (2) Evidence of the payment must be furnished to the
18   department Initiation of the transfer of funds must occur on or
19   before the due date of the tax as provided by law. If payment is
20   made by means other than cash and settlement to the state‟s
21   account does not occur on or before the banking day following the
22   due date of the tax, payment is deemed to occur on the date
23   settlement occurs.
24         (3) Failure to make timely payment in immediately available
25   funds or failure to provide evidence of payment in a timely manner
26   subjects the taxpayer to penalties and interest as provided by law
27   for delinquent or deficient tax payments.
28      (B) The department by rule may prescribe provide alternative
29   periodic filing and payment dates later than the dates otherwise
30   provided by law for any taxes collected by the department in those
31   instances where it is considered to be in the best interest interests
32   of the State. An alternative date may must not be later than the last
33   day of the month in which the tax was otherwise due.”
34
35   SECTION 51. Section 12-60-430 of the 1976 Code, as last
36   amended by Act 69 of 2003, is further amended to read:
37
38      “(A) If a taxpayer fails or refuses to make a report or to file a
39   return required by the provisions of this title or required to be filed
40   with the department, the department may make an estimate of the
41   tax liability from the best information available and issue a
42   proposed assessment for the taxes, including penalties and interest.

     [3749]                            50
 1      (B) If the department determines a return or report filed by a
 2   taxpayer is frivolous, the department may make an estimate of the
 3   tax liability from the best information available and issue a
 4   proposed assessment for the tax, including penalties and interest.”
 5
 6   SECTION 52. Section 11-11-156(D) of the 1976 Code, as added
 7   by Act 388 of 2006, is amended to read:
 8
 9      “(D) Notwithstanding any other another provision of this
10   section, in the case of a redevelopment project area created
11   pursuant to Chapter 6, 7, or 12 of Title 31, the reimbursements
12   provided pursuant to this section for the property tax exemption
13   allowed by Section 12-37-220(B)(47) must include full payment to
14   each taxing entity for the incremental property tax that, in the
15   absence of such exemption, would otherwise be payable to such
16   taxing entity with respect to owner-occupied residential real
17   property located in a redevelopment project area pursuant to the
18   tax increment financing law for cities, counties, or redevelopment
19   authorities. Such payment for incremental property taxes shall be
20   calculated in accordance with the applicable tax increment
21   financing law and shall be based on the assessed value of, and the
22   school operating millage rate otherwise applicable to, the
23   owner-occupied residential property in question the city or county
24   creating the redevelopment project area for amounts that would
25   have been payable to the special tax allocation fund created
26   pursuant to that chapter if no such exemption existed.”
27
28   SECTION 53. Section 11-45-55(I) of the 1976 Code, as added
29   by Act 125 of 2005, is amended by adding at the end:
30
31      “(3) Notwithstanding Section 12-54-240(A), the authority, the
32   Department of Commerce, the Department of Revenue, and the
33   Department of Insurance may exchange information for the
34   purpose of registering and verifying the existence, possession,
35   transfer, and use of tax credits pursuant to this chapter.”
36
37   SECTION 54. A taxpayer must not be penalized for following
38   the provisions of Section 401 of the Federal Tax Increase
39   Prevention and Reconciliation Act of 2005 for South Carolina
40   purposes.
41


     [3749]                          51
 1   SECTION 55. A.Article 17, Chapter 6, Title 12 of the 1976
 2   Code is amended by adding:
 3
 4      “Section 12-6-2252. (A) A taxpayer whose principal business
 5   in this State is (i) manufacturing or a form of collecting, buying,
 6   assembling, or processing goods and materials within this State, or
 7   (ii) selling, distributing, or dealing in tangible personal property
 8   within this State, shall make returns and pay annually an income
 9   tax that includes its income apportioned to this State. Its income
10   apportioned to this State is determined by multiplying the net
11   income remaining after allocation pursuant to Sections 12-6-2220
12   and 12-6-2230 by the sales factor defined in Section 12-6-2280.
13      (B) If a sales factor does not exist, the remaining net income is
14   apportioned to the business‟s principal place of business.”
15
16   B. This section takes effect upon approval by the Governor and
17   applies for taxable years beginning after 2006.
18
19   SECTION 56. A.Article 17, Chapter 6, Title 12 of the 1976
20   Code is amended by adding:
21
22      “Section 12-6-2295. (A) The terms „sales‟ as used in Section
23   12-6-2280 and „gross receipts‟ as used in Section 12-6-2290
24   include, but are not limited to, the following items if they have not
25   been separately allocated:
26        (1) receipts from the sale or rental of property maintained for
27   sale or rental to customers in the ordinary course of the taxpayer‟s
28   trade or business including inventory;
29        (2) receipts from the sale of accounts receivable acquired in
30   the ordinary course of trade or business for services rendered or
31   from the sale or rental of property maintained for sale or rental to
32   customers in the ordinary course of the taxpayer‟s trade or
33   business if the accounts receivable were created by the taxpayer or
34   a related party. For purposes of this item, a related person includes
35   a person that bears a relationship to the taxpayer as described in
36   Section 267 of the Internal Revenue Code;
37        (3) receipts from the use of intangible property in this State
38   including, but not limited to, royalties from patents, copyrights,
39   trademarks, and trade names;
40        (4) net gain from the sale of property used in the trade or
41   business. For purposes of this subsection, property used in the
42   trade or business means property subject to the allowance for

     [3749]                           52
 1   depreciation, real property used in the trade or business, and
 2   intangible property used in the trade or business which is:
 3            (a) not property of a kind that properly would be
 4   includible in inventory of the business if on hand at the close of the
 5   taxable year; or
 6            (b) held by the business primarily for sale to customers in
 7   the ordinary course of the trade or business;
 8         (5) receipts from services if the entire income-producing
 9   activity is within this State. If the income-producing activity is
10   performed partly within and partly without this State, sales are
11   attributable to this State to the extent the income-producing
12   activity is performed within this State;
13         (6) receipts from the sale of intangible property which are
14   unable to be attributed to any particular state or states are excluded
15   from the numerator and denominator of the factor.
16       (B) The terms „sales‟ as used in Section 12-6-2280 and „gross
17   receipts‟ as used in Section 12-6-2290 do not include:
18         (1) repayment, maturity, or redemption of the principal of a
19   loan, bond, or mutual fund or certificate of deposit or similar
20   marketable instrument;
21         (2) the principal amount received under a repurchase
22   agreement or other transaction properly characterized as a loan;
23         (3) proceeds from the issuance of the taxpayer‟s stock or
24   from sale of treasury stock;
25         (4) damages and other amounts received as the result of
26   litigation;
27         (5) property acquired by an agent on behalf of another;
28         (6) tax refunds and other tax benefit recoveries;
29         (7) pension reversions;
30         (8) contributions to capital, except for sales of securities by
31   securities dealers;
32         (9) income from forgiveness of indebtedness; or
33         (10) amounts realized from exchanges of inventory that are
34   not recognized by the Internal Revenue Code.”
35
36   B. This section takes effect upon approval of this act by the
37   Governor and applies for taxable years beginning after 2006.
38
39   SECTION 57.A. Section 12-6-2250 of the 1976 Code, as last
40   amended by Act 384 of 2006, is further amended to read:
41


     [3749]                            53
 1      “Section 12-6-2250. A taxpayer whose principal business in
 2   this State is (i) manufacturing or any form of collecting, buying,
 3   assembling, or processing goods and materials within this State, or
 4   (ii) selling, distributing, or dealing in tangible personal property
 5   within this State, shall make returns and pay annually an income
 6   tax that includes its income apportioned to this State. Its income
 7   apportioned to this State is determined by multiplying the net
 8   income remaining after allocation pursuant to Sections 12-6-2220
 9   and 12-6-2230 by a fraction, the numerator of which is the number
10   of sales made in South Carolina, and the denominator of which is
11   the total number of sales for the taxpayer. However, if a sales ratio
12   does not exist, the denominator of the fraction is the number of
13   existing ratios, and where the sales ratio exists but the payroll ratio
14   or the property ratio does not exist, the denominator of the fraction
15   is the number of existing ratios plus one. The sales ratios must be
16   determined in accordance with Section 12-6-2280.                    (A)
17      A taxpayer whose principal business in this State is (i)
18   manufacturing or a form of collecting, buying, assembling, or
19   processing goods and materials within this State, or (ii) selling,
20   distributing, or dealing in tangible personal property within this
21   State, shall make returns and pay annually an income tax that
22   includes its income apportioned to this State. Its income
23   apportioned to this State is determined by multiplying the net
24   income remaining after allocation pursuant to Sections 12-6-2220
25   and 12-6-2230 by a fraction, the numerator of which is the
26   property ratio, plus the payroll ratio, plus twice the sales ratio, and
27   the denominator of which is four. However, where the sales ratio
28   does not exist, the denominator of the fraction is the number of
29   existing ratios, and where the sales ratio exists but the payroll ratio
30   or the property ratio does not exist, the denominator of the fraction
31   is the number of existing ratios plus one. The property, payroll,
32   and sales ratios must be determined in accordance with Sections
33   12-6-2260, 12-6-2270, and 12-6-2280, respectively.
34         (B) For taxable years beginning in 2007 through 2010 only, a
35   taxpayer in subsection (A) shall apportion income by using the
36   method provided in Section 12-6-2250(A) and, if applicable, the
37   method provided in Section 12-6-2252. If the calculation
38   permitted in Section 12-6-2252 results in a reduction in income
39   allocated to this State, the reduction is allowed as follows:
40      Taxable year beginning in:        Percentage of reduction allowed
41         2007                           20
42         2008                           40

     [3749]                            54
 1        2009                        60
 2        2010                        80.
 3     (C) For purposes of calculation of the license fee pursuant to
 4   Section 12-20-60, the percentage reduction is applied in the same
 5   manner as in subsection (B).
 6
 7   B. This section takes effect upon approval of this act by the
 8   Governor and applies for taxable years beginning after 2006.
 9
10   SECTION 58.A. Section 12-6-2280 of the 1976 Code is
11   amended to read:
12
13      “Section 12-6-2280. (A) The sales factor is a fraction in which
14   the numerator is the total sales of the taxpayer in this State during
15   the taxable year and the denominator is the total sales of the
16   taxpayer everywhere during the taxable year.
17      (B) The term „sales in this State‟ includes sales of goods,
18   merchandise, or property received by a purchaser in this State
19   other than the .United States Government. The place where goods
20   are received by the purchaser after all transportation is completed
21   is considered as the place at which the goods are received by the
22   purchaser. Direct delivery into this State by the taxpayer to a
23   person designated by a purchaser constitutes delivery to the
24   purchaser in this State.
25      (C) The word „sales‟ includes, but is not limited to:
26        (1) rentals from tangible personal property located in this
27   State which are not separately allocated; and
28        (2) sales of intangible personal property and receipts from
29   services if the entire income-producing activity is within this State.
30   If the income-producing activity is performed partly within and
31   partly without this State, sales are attributable to this State to the
32   extent the income-producing activity is performed within this
33   State. Sales of tangible personal property to the United States
34   government are not included in the numerator or the denominator
35   of the sales factor. Only sales for which the United States
36   government makes direct payment to the seller pursuant to the
37   terms of a contract constitute sales to the United States
38   government.
39      (D) For purposes of this section, items included in sales are as
40   provided in Section 12-6-2295.”
41


     [3749]                            55
 1   B. This section takes effect upon approval of this act by the
 2   Governor and applies for taxable years beginning after 2006.
 3
 4   SECTION 59.A. Section 12-6-2290 of the 1976 Code is
 5   amended to read:
 6
 7      “Section 12-6-2290. If the principal profits or income of a
 8   taxpayer are derived from sources other than those described in
 9   Section 12-6-2250 or Section 12-6-2310, the taxpayer shall
10   apportion its remaining net income using a fraction in which the
11   numerator is gross receipts from within this State during the
12   taxable year and the denominator is total gross receipts from
13   everywhere during the taxable year. For purposes of this section,
14   items included in gross receipts are as provided in Section
15   12-6-2295.”
16
17   B. This section takes effect upon approval of this act by the
18   Governor and applies for taxable years beginning after 2006.
19
20   SECTION 60. A. Section 12-6-1130(6) of the 1976 Code is
21   amended to read:
22
23      “(6) In computing the depletion deduction pursuant to Internal
24   Revenue Code Sections 611 through 613, a taxpayer who allocates
25   or apportions income under pursuant to the provisions of Article
26   17 of this chapter has the option of:
27         (a) apportioning the deduction according to the appropriate
28   South Carolina apportionment percentage provided in Sections
29   12-6-2250 12-6-2252 through 12-6-2310; or
30         (b) allocating the deduction to South Carolina with respect
31   to mines, oil and gas wells, and other natural deposits located in
32   this State. The amount allocated to South Carolina may not exceed
33   fifty percent of the net income apportioned to South Carolina by
34   Sections 12-6-2250 12-6-2252 through 12-6-2310.”
35
36   B.   Section 12-6-2240 of the 1976 Code is amended to read:
37
38      “Section 12-6-2240. All income remaining after allocation
39   under pursuant to Sections 12-6-2220 and 12-6-2230 is
40   apportioned in accordance with Sections 12-6-2250 Section
41   12-6-2252, or one of the special apportionment formulas provided
42   in Sections 12-6-2290 through 12-6-2310.”

     [3749]                          56
 1
 2   C.   Section 12-6-2290 of the 1976 Code is amended to read:
 3
 4      “Section 12-6-2290. If the principal profits or income of a
 5   taxpayer are derived from sources other than those described in
 6   Section 12-6-2250 12-6-2252 or Section 12-6-2310, the taxpayer
 7   shall apportion its remaining net income using a fraction in which
 8   the numerator is gross receipts from within this State during the
 9   taxable year and the denominator is total gross receipts from
10   everywhere during the taxable year. For purposes of this section,
11   items included in gross receipts are as provided in Section
12   12-6-2295.”
13
14   D. Sections 12-6-2250, 12-6-2260, and 12-6-2270 are repealed.
15
16   E. This section takes effect for tax years after 2010.
17
18   SECTION 61. Section 6-5-10(a) of the 1976 Code is amended to
19   read:
20
21      “(a) The governing body of any municipality, county, school
22   district, or other local government unit or political subdivision and
23   county treasurers may invest money subject to their control and
24   jurisdiction in:
25         (1) Obligations of the United States and its agencies thereof;
26   , the principal and interest of which is fully guaranteed by the
27   United States;
28         (2) Obligations issued by the Federal Financing Bank,
29   Federal Farm Credit Bank, the Bank of Cooperatives, the Federal
30   Intermediate Credit Bank, the Federal Land Banks, the Federal
31   Home Loan Banks, the Federal Home Loan Mortgage Corporation,
32   the Federal National Mortgage Association, the Government
33   National Mortgage Association, the Federal Housing
34   Administration, and the Farmers Home Administration, if, at the
35   time of investment, the obligor has a long-term, unenhanced,
36   unsecured debt rating in one of the top two ratings categories,
37   without regard to a refinement or gradation of rating category by
38   numerical modifier or otherwise, issued by at least two nationally
39   recognized credit rating organizations;
40         (23)(i) General obligations of the State of South Carolina or
41   any of its political units; or (ii) revenue obligations of the State of
42   South Carolina or its political units, if at the time of investment,

     [3749]                            57
 1   the obligor has a long-term, unenhanced, unsecured debt rating in
 2   one of the top two ratings categories, without regard to a
 3   refinement or gradation of rating category by numerical modifier
 4   or otherwise, issued by at least two nationally recognized credit
 5   rating organizations;
 6        (34) Savings and Loan Associations to the extent that the
 7   same are insured by an agency of the federal government;
 8        (45) Certificates of deposit where the certificates are
 9   collaterally secured by securities of the type described in (1) and
10   (2) above held by a third party as escrow agent or custodian, of a
11   market value not less than the amount of the certificates of deposit
12   so secured, including interest; provided, however, such collateral
13   shall not be required to the extent the same are insured by an
14   agency of the federal government.
15        (56) Repurchase agreements when collateralized by securities
16   as set forth in this section.
17        (67) No load open-end or closed-end management type
18   investment companies or investment trusts registered under the
19   Investment Company Act of 1940, as amended, where the
20   investment is made by a bank or trust company or savings and loan
21   association or other financial institution when acting as trustee or
22   agent for a bond or other debt issue of that local government unit,
23   political subdivision, or county treasurer if the particular portfolio
24   of the investment company or investment trust in which the
25   investment is made (i) is limited to obligations described in items
26   (1), (2), (3) and (56) of this subsection, and (ii) has among its
27   objectives the attempt to maintain a constant net asset value of one
28   dollar a share and to that end, value its assets by the amortized cost
29   method.
30        (78) A political subdivision receiving Medicaid funds
31   appropriated by the General Assembly in the annual general
32   appropriations act may utilize appropriated funds and other monies
33   generated by hospital operations to participate in principal
34   protected investments in the form of notes, bonds, guaranteed
35   investment contracts, debentures, or other contracts issued by a
36   bank chartered in the United States or agency of a bank if
37   chartered in the United States, financial institution, insurance
38   company, or other entity which provides for full principal payment
39   at the end of a contract term not to exceed twelve years if the
40   issuer has received a rating in one of three highest general rating
41   categories issued by no fewer than two nationally recognized credit
42   rating organizations. No more than forty percent of the

     [3749]                            58
 1   appropriated funds and other monies generated by hospital
 2   operations may be invested in the manner provided in this item.
 3   Revenue realized pursuant to these investments must be expended
 4   on health care services.”
 5
 6   SECTION 62. A.Section 12-36-2120 of the 1976 Code, as last
 7   amended by Act 386 of 2006, is further amended by adding an
 8   appropriately numbered item at the end to read:
 9
10      “( ) an amusement park ride and any parts, machinery, and
11   equipment used to assemble, operate, and make up an amusement
12   park ride or performance venue facility located in a qualifying
13   amusement park or theme park and any related or required
14   machinery, equipment, and fixtures located in the same qualifying
15   amusement park or theme park.
16        (a) To qualify for the exemption, the taxpayer shall meet the
17   investment and job requirements provided in subsubitem (i) of
18   subitem (b) over a five-year period beginning on the date of the
19   taxpayer‟s first use of this exemption. The taxpayer shall notify
20   the Department of Revenue of its intent to qualify and use this
21   exemption and upon receipt of the notification, the department
22   shall issue an appropriate exemption certificate to the taxpayer to
23   be used for qualifying purposes under this item. Within six
24   months after the fifth anniversary of the taxpayer‟s first use of this
25   exemption, the taxpayer shall notify the department, in writing,
26   that it has or has not met the investment and job requirements of
27   this item. If the taxpayer fails to meet the investment and job
28   requirements, the taxpayer shall pay to the State the amount of the
29   tax that would have been paid but for this exemption. The running
30   of the periods of limitations for assessment of taxes provided in
31   Section 12-54-85 is suspended for this time period beginning with
32   the taxpayer‟s first use of this exemption and ending with notice to
33   the department that the taxpayer has or has not met the investment
34   and job requirements of this item.
35        (b) For purposes of this item:
36           (i) „Qualifying amusement park or theme park‟ means a
37   park that is constructed and operated by a taxpayer who makes a
38   capital investment of at least two hundred fifty million dollars at a
39   single site and creates at least two hundred fifty full-time jobs and
40   five hundred part-time or seasonal jobs.
41           (ii) „Related or required machinery, equipment, and
42   fixtures‟ means an ancillary apparatus used for or in conjunction

     [3749]                            59
 1   with an amusement park ride or performance venue facility, or
 2   both, including, but not limited to, any foundation, safety fencing
 3   and equipment, ticketing, monitoring device, computer equipment,
 4   lighting, music equipment, stage, queue area, housing for a ride,
 5   electrical equipment, power transformers, and signage.
 6           (iii) „Performance venue facility‟ means a facility for a live
 7   performance, nonlive performance, including any animatronics and
 8   computer-generated performance, and firework, laser, or other
 9   pyrotechnic show.
10           (iv) „Taxpayer‟ means a single taxpayer or, collectively, a
11   group of one or more affiliated taxpayers. An „affiliated taxpayer‟
12   means a person or entity related to the taxpayer that is subject to
13   common operating control and that is operated as part of the same
14   system or enterprise. The taxpayer is not required to own a
15   majority of the voting stock of the affiliate.”
16
17   B. Notwithstanding the general effective date of this act, this
18   SECTION takes effect on the first day of the month succeeding the
19   month in which this act is approved by the Governor.
20
21   SECTION 63. A.Chapter 14, Title 12 of the 1976 Code is
22   amended by adding:
23
24      “Section 12-14-80. (A) There is allowed an economic impact
25   zone tax credit pursuant to Section 12-14-60 for qualifying
26   investments made by a manufacturer which:
27         (1) is engaged in this State in at least one economic impact
28   zone, as defined in Section 12-14-30(1), in an activity or activities
29   listed under the North American Industry Classification System
30   Manual (NAICS) Section 326;
31         (2) is employing five thousand or more full-time workers in
32   this State and having a total capital investment in this State of not
33   less than two billion dollars; and
34         (3) has invested five hundred million dollars in capital
35   investment in this state between January 1, 2006 and July 1, 2011.
36      (B) A taxpayer that qualifies for the tax credit allowed by this
37   section may claim the credit earned pursuant to this section and
38   credits earned pursuant to Section 12-6-3360 in the manner
39   provided pursuant to Sections 12-6-3360 and 12-14-60, or as a
40   credit in an amount equal to not more than fifty percent of the
41   employee‟s withholding on the taxpayer‟s quarterly withholding
42   tax returns. The taxpayer must elect to take the credit either as an

     [3749]                            60
 1   income tax or a withholding tax credit but not both. A taxpayer
 2   must first take the credits as an income tax credit in a year in
 3   which the taxpayer has a corporate income tax liability. The
 4   withholding tax credit may be taken only when the taxpayer has
 5   used the maximum investment tax credit allowed against the
 6   corporate income tax for that year. The withholding credit may
 7   only be taken for qualifying investments made or placed in service
 8   after July 1, 2007. To claim the credit against the employee‟s
 9   withholding, the taxpayer must be in compliance with its
10   withholding tax and other taxes due to the State.”
11
12   B. This section takes effect July 1, 2007, and applies for capital
13   investments placed in service outside of an economic impact zone
14   after June 30, 2007, and for quarterly state withholding returns due
15   on and after that date, provided that for the period July 1, 2007 to
16   June 30, 2008, a taxpayer using this section many not reduce its
17   state withholding tax to less than the withholding tax remitted for
18   the period June 30, 2006, to July 1, 2007.
19
20   SECTION 64. Section 12-37-220(B)(38) of the 1976 Code is
21   amended to read:
22
23      “(38)(a) Watercraft and motors which have an assessment of
24   not more than fifty dollars.
25           (b) By ordinance, a governing body of a county may
26   exempt from the property tax, forty-two and 75/100 percent of the
27   fair market value of a watercraft and its motor. This exemption for
28   a watercraft motor applies whether the motor is located in, attached
29   to, or detached from the watercraft.”
30
31   SECTION 65. A.Section 12-6-590(B) of the 1976 Code is
32   amended to read:
33
34      “(B) If Internal Revenue Code Section 1374 (Tax Imposed on
35   Certain Built-In Gains and Capital Gains) or 1375 (Tax Imposed
36   on Certain Passive Investment Income) imposes a federal income
37   tax, a South Carolina tax is similarly imposed using the rates set
38   forth in Section 12-6-530. If the exception in Internal Revenue
39   Code Section 1374(c) is effective for federal tax purposes, then
40   this exception is applicable for South Carolina income tax
41   purposes. A taxpayer who is a shareholder in a bank, as defined in
42   Section 581 of the IRC, having a valid federal election under

     [3749]                           61
 1   Subchapter S, is allowed a tax credit that equals the difference
 2   between: (i) the taxpayer‟s tax as computed pursuant to this
 3   chapter, including all credits other than the credit allowed pursuant
 4   to this section; and (ii) the tax as computed pursuant to this
 5   chapter, including all credits other than the credit allowed pursuant
 6   to this section, but excluding the taxpayer‟s prorata share of the net
 7   items of income and expense of the bank. The credit may not
 8   exceed the taxpayer‟s prorata share of the tax imposed on the bank
 9   pursuant to Section 12-11-30. These taxpayers are taxed pursuant
10   to the provisions of this section and Section 12-6-545,
11   notwithstanding       the   exception      contained     in   Section
12   12-6-545(A)(1).”
13
14   B. This section takes effect upon approval by the Governor and
15   applies to calendar years beginning January 1, 2007.
16
17   SECTION 66. Section 12-37-714 of the 1976 Code, as last
18   amended by Act 386 of 2006, is further amended to read:
19
20      “Section 12-37-714.A. In addition to any other provisions of
21   law subjecting boats and boat motors to property tax in this State:
22      (1) A boat, including its motor if separately taxed, used in
23   interstate commerce having a tax situs in this State and at least one
24   other state is subject to property tax in this State. The value of
25   such a boat must be determined based on the fair market value of
26   the boat multiplied by a fraction representing the number of days
27   present in this State. The fraction is determined by dividing the
28   number of days the boat was present in this State by three hundred
29   and sixty-five days. A boat used in interstate commerce must be
30   physically present in this State for thirty days in the aggregate in a
31   property tax year to become subject to ad valorem taxation.
32      (2) A boat, including its motor if the motor is separately taxed,
33   which is not currently taxed in this State and is not used
34   exclusively in interstate commerce, is subject to property tax in
35   this State if it is present within this State for sixty consecutive days
36   or for ninety days in the aggregate in a property tax year. Upon
37   written request by a tax official, the owner must provide
38   documentation or logs relating to the whereabouts of the boat in
39   question. Failure to produce requested documents creates a
40   rebuttable presumption that the boat in question is taxable within
41   this State.


     [3749]                             62
 1      (3) When a boat, or motor if separately taxed, is subject to a
 2   written contract for repairs and located in a marine repair facility in
 3   this State, the time periods provided pursuant to items (1) and (2)
 4   of this section are tolled.”
 5
 6   B. This section takes effect upon approval by the Governor and
 7   is applicable for tax years beginning after 2007.
 8
 9   SECTION 67. Section 4-29-68(A)(2) of the 1976 Code, as last
10   amended by Act 462 of 1996, is further amended to read:
11
12      “(2) The bonds are issued solely for the purpose of paying the
13   cost of designing, acquiring, constructing, improving, or expanding
14   (a) the infrastructure serving the issuer and or the project, (b) for
15   improved or unimproved real estate used in the operation of a
16   manufacturing or commercial enterprise, or (c) aircraft which
17   qualifies as a project pursuant to Section 12-44-30(16), which
18   property is determined by the issuer in order to enhance the
19   economic development of the issuer. and costs Costs of issuance of
20   the bonds also may be paid from bond proceeds. Bonds issued
21   pursuant to this section to finance the acquisition of real or
22   personal property may be additionally secured by a mortgage of
23   that real or personal property.”
24
25   SECTION 68. Chapter 3 of Title 46 of the 1976 Code is
26   amended by adding:
27
28     “Section 46-3-260. (A) There is established in the State
29   Treasury a separate and distinct fund known as the „South Carolina
30   Renewable Energy Infrastructure Development Fund‟.            The
31   revenues of the fund must be distributed by the South Carolina
32   Renewable Energy Revolving Loan Program and the South
33   Carolina Renewable Energy Grant Program. Disbursement of
34   these funds by the loan and grant programs must be approved by
35   the South Carolina Renewable Energy Oversight Committee. The
36   committee shall consist of seven members, one appointed by each
37   of the following persons: the Governor, the Commissioner of
38   Agriculture, the Secretary of Commerce, the President Pro
39   Tempore of the Senate, the Speaker of the House of
40   Representatives, the Chairman of the Senate Finance Committee,
41   and the Chairman of the House Ways and Means Committee.


     [3749]                            63
 1         (1) The South Carolina Renewable Energy Revolving Loan
 2   Program shall provide low interest loans, with a rate not to exceed
 3   the Wall Street Journal prime interest rate, to an individual or
 4   organization that plans to build a qualified renewable energy
 5   production facility. A renewable energy production facility is a
 6   facility that produces energy or transportation fuels from biomass,
 7   solar, or wind resources. A loan from the program may provide up
 8   to fifty percent of the total cost of a project, but must not exceed
 9   two hundred fifty thousand dollars for each project. The
10   Department of Agriculture shall administer the South Carolina
11   Renewable Energy Revolving Loan Program, in cooperation with
12   the South Carolina Institute of Energy Studies.
13         (2) The South Carolina Renewable Energy Grant Program
14   shall provide grants to a private and public entity located in South
15   Carolina for the purpose of assisting the entity to be more
16   competitive in obtaining federal and other available grants that
17   may generate renewable energy-related research and projects to
18   directly benefit the State. The Department of Agriculture shall
19   administer the South Carolina Renewable Energy Grant Program,
20   in cooperation with the South Carolina Institute of Energy Studies
21   and the South Carolina Research Authority. Grants are available
22   in the following three categories:
23           (a) planning grants up to ten thousand dollars are
24   available to a research institution or private organization to
25   develop proposals to obtain federal grants and other funding
26   sources for biomass, solar, and wind energy projects in South
27   Carolina;
28           (b) matching grants up to two hundred thousand dollars
29   are available for research and development projects that relate to
30   development of South Carolina biomass, solar, and wind energy
31   resources, provided that the grant does not exceed fifty percent of
32   the total cost of the project; and
33           (c) matching grants up to two hundred thousand dollars
34   are available for demonstration projects that validate the
35   effectiveness of new and future biomass technologies and
36   products, provided that the grant does not exceed fifty percent of
37   the total cost of the demonstration project.
38      (B) The Department of Revenue may prescribe forms,
39   procedures, issue policy documents and distribute funds as
40   necessary to ensure the orderly and timely implementation of the
41   provisions herein. The Department of Revenue shall coordinate
42   with the Department of Agriculture as necessary.

     [3749]                           64
 1      (C) Unexpended funds received by the Department of Revenue
 2   from proviso 73.17 of the Fiscal Year 2006-07 Appropriation Act
 3   and carried forward must be disbursed to these entities to meet the
 4   requirements of this provision: the Department of Revenue for the
 5   purpose of alternative fuel purchases incentive payments and the
 6   South Carolina Renewable Energy Infrastructure Development
 7   Fund established in this section.
 8
 9   SECTION 69. This act takes effect upon the approval by the
10   Governor, and is applicable for tax years beginning after 2007,
11   except for SECTION 5, relating to Section 12-6-3415(A), which is
12   applicable for tax years beginning after 2006, and SECTION 6,
13   relating to Section 12-20-105, which is applicable for tax years
14   beginning after 2003.
15
16   /s/Sen. Nikki G. Setzler             Rep. Scott F. Talley
17   /s/Sen. William H. O‟Dell         /s/Rep. Herb Kirsh
18   /s/Sen. Thomas C. Alexander       /s/Rep. Kenny Bingham
19      On Part of the Senate.            On Part of the House.
20                             ----XX----




     [3749]                          65

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:11/12/2010
language:English
pages:66
Description: Validate Sc Real Estate License document sample