H 3101 General Bill, By Scott and Clark
 A BILL TO AMEND SECTION 12-36-2110, AS AMENDED, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO THE MAXIMUM TAX IMPOSED ON THE SALE OR LEASE OF
 CERTAIN ITEMS, SO AS TO REQUIRE THE DEPARTMENT OF REVENUE TO CUMULATIVELY
 ADJUST THE THREE HUNDRED DOLLAR MAXIMUM TAX IMPOSED ON THE SALE OR LEASE OF
 MOTOR VEHICLES AND MOTORCYCLES IN THE MANNER THAT BRACKETS ARE ADJUSTED IN
 INTERNAL REVENUE CODE SECTION (1)(F).

   12/04/02  House  Prefiled
   12/04/02  House  Referred to Committee on Ways and Means
   01/14/03  House  Introduced and read first time HJ-44
   01/14/03  House  Referred to Committee on Ways and Means HJ-44
   01/29/03  House  Member(s) request name added as sponsor: Clark

H. 3101

TO AMEND SECTION 12-36-2110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MAXIMUM TAX IMPOSED ON THE SALE OR LEASE OF CERTAIN ITEMS, SO AS TO REQUIRE THE DEPARTMENT OF REVENUE TO CUMULATIVELY ADJUST THE THREE HUNDRED DOLLAR MAXIMUM TAX IMPOSED ON THE SALE OR LEASE OF MOTOR VEHICLES AND MOTORCYCLES IN THE MANNER THAT BRACKETS ARE ADJUSTED IN INTERNAL REVENUE CODE SECTION (1)(F).

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 12-36-2110(A) of the 1976 Code is amended to read:

"(A)    Except as provided by subsection (F), the maximum tax imposed by this chapter is three hundred dollars for each sale made after June 30, 1984, or lease executed after August 31, 1985, of each:

(1)    aircraft, including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft;

(2)    motor vehicle;

(3)    motorcycle;

(4)    boat;

(5)    trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, and horse trailers but not including house trailers or campers as defined in Section 56-3-710;

(6)    recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel; or

(7)    self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower.

In the case of a lease, the total tax rate required by law applies on each payment until the total tax paid equals three hundred dollars. Nothing in this section prohibits a taxpayer from paying the total tax due at the time of execution of the lease, or with any payment under the lease. To qualify for the tax limitation provided by this section, a lease must be in writing and specifically state the term of, and remain in force for, a period in excess of ninety continuous days."

SECTION    2.    Section 12-36-2110 of the 1976 Code is amended by adding:

"(F)    Each December fifteenth, the Department of Revenue shall adjust cumulatively the three hundred dollar maximum tax imposed by this section pursuant to subsections (A)(1) and (A)(2) upon the sale or lease of motor vehicles and motorcycles in the manner that brackets are adjusted in Internal Revenue Code Section (1)(f). This adjusted maximum tax applies to sales made and leases executed in the succeeding calendar year. The total maximum tax amount due is the amount due at the time of sale or execution. The rounding amount as provided in Internal Revenue Code Section (1)(f)(6) is ten dollars."

SECTION    3.    This act takes effect upon approval by the Governor and applies to sales made and leases executed after December 31, 2003.