Reference is to the bill as introduced.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Title 12 of the 1976 Code is amended by adding:
Section 12-69-10. This chapter may be cited as the 'Motorsports Entertainment Complex Investment Act'.
Section 12-69-20. For
purposes of this chapter:
(1) 'Company' means any
corporation, partnership, limited liability company, or other
business entity.
(2) 'Department' means
the Department of Revenue.
(3) 'Motorsports
entertainment complex' has the same meaning as provided in
Section 12-21-2425.
Section 12-69-30. (A)
A company, upon making application for,
meeting the requirements of, and receiving written certification
of that designation from the department, as provided in
subsection (B), is exempt from state and local sales tax on
building materials, supplies, fixtures, and equipment for the
construction, repair, or improvement of or that become a part of
a motorsports entertainment complex.
(B) A company shall
become a qualified company by applying with the department. The
director of the department shall approve the application so long
as the application is accompanied by a practical plan to make a
capital investment of at least ten million dollars on any
motorsport entertainment complex in this State within the
five-year period immediately following the approval of the
application. Upon receiving written certification from the
department, a company may utilize the exemption specified in
subsection (A). (C) Once a
company has met the requirements of subsection (B), the
department shall issue a sales and use tax exemption certificate
to the company as evidence of the exemption. The exemption is
effective upon receipt and shall remain effective until December
thirty-first of the fifth full calendar year after its issuance.
Once the exemption certificate is ineffective, the company must
return the exemption certificate to the department and submit a
report to the department of the actual expenditures made in
South Carolina in connection with the investment. The company
must designate a member or representative of the company to work
with the department on reporting of the investment.
(D) A company that is
approved and receives a sales and use tax exemption certificate
but fails to meet the capital investment requirements within the
five-year period, is liable for the sales and use taxes that
would have been paid had the approval not been granted in the
same proportion as the actual capital investment failed to meet
the required capital investment. The company must be given a
sixty-day period in which to pay the sales and use taxes without
incurring penalties. The sales and use taxes are considered due
as of the date the tangible personal property was purchased in
or brought into South Carolina for use, storage, or
consumption.
(E) At the time the
company is certified by the department it may make an
irrevocable assignment of future payments attributable to the
rebates made pursuant to this section. For purposes of this
section, 'designated trustee' means the single financier or
financial institution designated by the council to receive all
assignments of payments made pursuant to this chapter and to the
terms of an agreement entered into by the company. If a company
elects to assign payments to the designated trustee, the
election must be made on a form provided by the department
including a waiver of the provisions of Section 12-54-240, and
the payments may be paid only to the designated trustee. The
company must file an application for the assignment with the
director of the department no later than sixty days after
certification."
SECTION 2. This act takes effect upon approval by the Governor and applies to tax years beginning after 2016. /
Renumber sections to conform.
Amend title to conform.