S 36 Session 110 (1993-1994)
S 0036 General Bill, By Passailaigue and M.T. Rose
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Article 25
in Chapter 21 of Title 12, relating to stamp and business license taxes, so as
to enact "The Marijuana and Controlled Substance Tax Act of 1993", to provide
a penalty, and to establish the State Controlled Substances Tax Account.
01/12/93 Senate Introduced and read first time SJ-36
01/12/93 Senate Referred to Committee on Finance SJ-36
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING ARTICLE 25 IN CHAPTER 21 OF TITLE 12,
RELATING TO STAMP AND BUSINESS LICENSE TAXES, SO AS
TO ENACT "THE MARIJUANA AND CONTROLLED
SUBSTANCE TAX ACT OF 1993", TO PROVIDE A
PENALTY, AND TO ESTABLISH THE STATE CONTROLLED
SUBSTANCES TAX ACCOUNT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 21 of the 1976 Code is amended by adding:
"Article 25
The Marijuana and
Controlled Substance Tax Act of 1993
Section 12-21-3710. This article may be cited as The Marijuana and
Controlled Substance Tax Act of 1993.
Section 12-21-3720. As used in this article:
(1) `Marijuana' means any marijuana, whether real or counterfeit, as
defined in Section 44-53-110, that is held, possessed, transported,
transferred, sold, or offered to be sold in violation of the laws of this
State.
(2) `Controlled substance' means a drug or substance, whether real
or counterfeit, as defined in Section 44-53-110, that is held, possessed,
transported, transferred, sold, or offered to be sold in violation of the
laws of this State. `Controlled substance' does not include marijuana.
(3) `Dealer' means a person who in violation of the laws of this State
manufactures, produces, ships, transports, or imports into South Carolina
or in any manner acquires or possesses more than forty-two and one-half
grams of marijuana, or seven or more grams of a controlled substance,
or ten or more dosage units of a controlled substance which is not sold
by weight. A quantity of marijuana or other controlled substance is
measured by the weight of the substance whether pure or impure or
dilute, or by dosage units when the substance is not sold by weight, in
the dealer's possession. A quantity of a controlled substance is dilute if
it consists of a detectable quantity of pure controlled substance and any
excipients or fillers.
(4) `Commission' means the South Carolina Tax Commission.
Section 12-21-3730. The commission shall administer this article.
Payments required by this article must be made to the commission on the
form provided by the commission. Dealers are not required to give their
name, address, social security number, or other identifying information
on the form. The commission shall collect all taxes under this article.
Section 12-21-3740. The commission may promulgate regulations
necessary to enforce this article. The commission shall adopt a uniform
system of providing, affixing, and displaying official stamps, official
labels, or other official indicia for marijuana and controlled substances
on which a tax is imposed.
Section 12-21-3750. No dealer may possess any marijuana or
controlled substance upon which a tax is imposed unless the tax has
been paid on the marijuana or other controlled substance as evidenced
by a stamp or other official indicia.
Section 12-21-3760. Nothing in this article may provide immunity
for a dealer from criminal prosecution pursuant to the laws of this State.
Section 12-21-3770. Nothing in this article requires persons
lawfully in possession of marijuana or a controlled substance to pay the
tax required under this article.
Section 12-21-3780. For the purpose of calculating the tax under
Section 12-21-3790, a quantity of marijuana or other controlled
substance is measured by the weight of the substance whether pure or
impure or dilute, or by dosage units when the substance is not sold by
weight, in the dealer's possession. A quantity of pure controlled
substance is dilute if it consists of a detectable quantity of pure
controlled substance and any excipients or fillers.
Section 12-21-3790. A tax is imposed on marijuana and controlled
substances as defined in Section 12-21-3720 at the following rate:
(1) on each gram of marijuana, or each portion of a gram, three
dollars fifty cents; and
(2) on each gram of controlled substance, or portion of a gram,
two hundred dollars; or
(3) on each fifty dosage units of a controlled substance that is not
sold by weight, or portion thereof, two thousand dollars.
Section 12-21-3800. (A) A dealer violating this article is subject to
a penalty of one hundred percent of the tax in addition to the tax
imposed by Section 12-21-3790. The penalty must be collected as part
of the tax.
(B) In addition to the tax penalty imposed, a dealer distributing or
possessing marijuana or controlled substances without affixing the
appropriate stamps, labels, or other indicia is guilty of a misdemeanor
and, upon conviction, must be imprisoned for not more than five years
or fined not more than ten thousand dollars, or both.
Section 12-21-3810. Official stamps, labels, or other indicia to be
affixed to all marijuana or controlled substances must be purchased from
the commission. The purchaser shall pay one hundred percent of face
value for each stamp, label, or other indicia at the time of the purchase.
Section 12-21-3820. (A) When a dealer purchases, acquires,
transports, or imports into this State marijuana or controlled substances
on which a tax is imposed by Section 12-21-3790, and if the indicia
evidencing the payment of the tax have not already been affixed, the
dealer shall have them permanently affixed on the marijuana or
controlled substance immediately after receiving the substance. Each
stamp or other official indicia may be used only once.
(B) Taxes imposed upon marijuana or controlled substances by this
article are due and payable immediately upon acquisition or possession
in this State by a dealer.
Section 12-21-3830. An assessment for a dealer not possessing
valid stamps or other official indicia showing that the tax has been paid
is considered a jeopardy assessment or collection, as provided in Article
3 of Chapter 53.
Section 12-21-3840. (A) Neither the commission nor a public
employee may reveal facts contained in a report or return required by
this article or any information obtained from a dealer, nor may any
information contained in such a report or return or obtained from a
dealer be used against the dealer in a criminal proceeding, unless
independently obtained, except in connection with a proceeding
involving taxes due under this article from the dealer making the return.
(B) A person violating this section is guilty of a felony and, upon
conviction, must be imprisoned for not more than five years or fined not
more than ten thousand dollars, or both.
(C) This section does not prohibit the commission from publishing
statistics that do not disclose the identity of dealers or the contents of
particular returns or reports.
Section 12-21-3850. The commission shall credit the proceeds of
the tax levied by this article to a special fund, which shall be separate
and distinct from the general fund, to be called the State Controlled
Substances Tax Account until the tax proceeds are unencumbered. Tax
proceeds are unencumbered when the taxpayer no longer has a current
legal right to challenge the assessment of the tax. The proceeds and all
interest accruing on the special fund shall be utilized at the discretion of
the chief justice of the Supreme Court for equipment and travel
reimbursement expenses for members of the judiciary.
All surplus funds, including accrued interest, remaining in the special
fund at the end of a fiscal year may be carried forward for each
subsequent fiscal year following establishment of the State Controlled
Substances Tax Account."
SECTION 2. This act takes effect July 1, 1993.
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