H 4013 General Bill, By T.L. Farr
 A Bill to amend Chapter 31 of Title 12, as amended, Code of Laws of South
 Carolina, 1976, relating to road tax on motor carriers, so as to transfer
 administration from the Tax Commission to the Department of Highways and
 Public Transportation, and to provide for the Department of Highways and
 Public Transportation to enter into an agreement known as the "International
 Fuel Tax Agreement".

   04/14/93  House  Introduced and read first time HJ-29
   04/14/93  House  Referred to Committee on Ways and Means HJ-29
   04/05/94         Tabled in committee

A BILL

TO AMEND CHAPTER 31 OF TITLE 12, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ROAD TAX ON MOTOR CARRIERS, SO AS TO TRANSFER ADMINISTRATION FROM THE TAX COMMISSION TO THE DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION, AND TO PROVIDE FOR THE DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION TO ENTER INTO AN AGREEMENT KNOWN AS THE "INTERNATIONAL FUEL TAX AGREEMENT".

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

SECTION 1. Chapter 31 of Title 12 of the 1976 Code is amended to read:

Section 12-31-10. When As used in this chapter, the term:

(1) `Department' means the South Carolina Department of Highways and Public Transportation.

(2) `Motor carrier' means every a person who operates or causes to be operated on any highways in of this State road tractors, truck tractors, trucks having more than two axles, or passenger vehicles designed to seat more than twenty occupants a motor vehicle used, designed, or maintained for the transportation of persons or property and:

(a) having two axles and a gross vehicle weight exceeding twenty-six thousand pounds; or

(b) having three or more axles, regardless of weight; or

(c) is used in combination when the weight of the combination exceeds twenty-six thousand pounds gross vehicle.

For the purposes of this section, the federal government, the State, counties, municipalities, churches, and any agents of them, and special mobile equipment as defined in item (11) of Section 56-3-20(11), shall not be deemed and recreational vehicles are not `motor carriers' as defined in the International Fuel Tax Agreement.

Section 12-31-20. The South Carolina State Highway department shall enforce the provisions of this chapter with respect to the possession of correct registration and display of the proper identification markers marker. The South Carolina Tax Commission shall administer and enforce the provisions of this chapter, except the provisions respecting possession of registration and display of identification markers. Notwithstanding other provisions of this chapter, the department may enter into an agreement with other states in a registration and identification marker reciprocal agreement known as the International Fuel Tax Agreement (IFTA). Qualified vehicles operating in accordance with this agreement are not required to purchase other fuel markers in member states.

Section 12-31-30. For the purposes of administration and enforcement of this chapter, the provisions of Chapter 21 of this Title, wherever applicable, are adopted and made a part hereof of this chapter.

Section 12-31-40. The Commission department and its duly authorized agents and representatives shall have the right at any reasonable time to examine the books and records of any a motor carrier as defined in this chapter.

Section 12-31-50. When any a person is discovered in this State operating a vehicle in violation of any of the provisions of this chapter, it shall be is unlawful for anyone thereafter to operate such the vehicle on the streets or highways in this State except to remove it from the street or highway for the purpose of parking or storing it unless and until a bond in the amount of five hundred dollars is furnished to the State Highway department in such a form and with such a surety or sureties or otherwise as it may prescribe, conditioned upon a proper registration card and identification marker being applied for within ten days and conditioned upon the payment of any taxes, penalties, or interest found to be due pursuant to this chapter.

Section 12-31-210. No motor carrier shall operate or cause to be operated in South Carolina any a vehicle described in Section 12-31-10 until he has secured from the South Carolina Tax Commission department a registration card and an identification marker for each such vehicle. Persons A person purchasing new equipment or corporations a corporation moving new equipment into this State which are required to be registered under this chapter may have not exceeding ten days to register such the new equipment.

Section 12-31-220. (A) A motor carrier having infrequent trips into and through the State may obtain a temporary permit good for one motor vehicle for ten consecutive days beginning and ending on the dates specified on the face of the permit. The fee for the permit is fifteen dollars and no reports are required of the motor carriers. Temporary permits may be issued in lieu instead of biennial registration or the IFTA as required under this chapter and highway use taxes incurred during this period. The temporary permit must be carried in the vehicle for which it was issued at all times when the vehicle is in this State. The commission department may issue a temporary permit by facsimile message, letter, or telegram.

(B) The commission department may engage a person to sell and issue the temporary permits if he purchases the permits from the commission department. No person may sell and issue the permits unless the permits are available to the public on a twenty-four hour basis.

(C) The commission department shall promulgate the necessary regulations necessary for the proper administration of this section.

(D) The permit fee provided by this section is distributed as follows:

(1) four-fifths to the state highway fund;

(2) one fifth to the credit of the general fund of the State.

Section 12-31-230. The South Carolina Tax Commission department shall prepare forms for use in making an applications application for a registration cards card and an identification markers marker in accordance with this chapter, and the applicant shall furnish all the information required by such the forms before a registration card or identification marker is issued.

Section 12-31-240. The registration card and the identification marker shall must be of such a form as the South Carolina Tax Commission may prescribe department prescribes. Each identification marker shall bear bears a number which shall must be the same as the number appearing on the registration card for the same vehicle.

Section 12-31-250. (A) A motor carrier operating motor vehicles in this State shall apply to the South Carolina Tax Commission department biennially for a registration card and identification marker for each power unit it operates in this State, except vehicles qualified under the IFTA in their base state. For issuing each registration card and identification marker, a fee of eight dollars must be paid to the commission department upon application. For a registration card and identification marker issued during the second year of the biennial period, a fee of four dollars must be paid to the commission department. For a registration card and identification marker issued in accordance with the IFTA, a fee of four dollars must be paid to the department. A person violating who violates the provisions of this section, upon conviction, must be punished as provided in Section 12-31-630.

(B) No registration card or identification marker may be issued by the commission department until the fee provided in this section is paid. Thirty percent of the fees provided by this section must be credited to the state highway fund. The remaining portion of the fees must be deposited to the credit of the general fund of the State.

Section 12-31-260. The A registration cards card and identification markers marker provided for must be issued for the period beginning April first each biennium and are valid until March thirty-first of the biennium. A registration card and identification marker issued under the IFTA must be issued annually beginning January first and are valid until December thirty-first. Registration cards and markers that expire September 30, 1992, are extended until March 31, 1993. Beginning October 1, 1992, the South Carolina Tax Commission shall issue biennial registration cards and markers that expire March 31, 1995. All identification markers remain the property of the State.

Section 12-31-270. The registration card shall must be carried in the vehicle for which it was issued at all times when the vehicle is in this State. The identification marker shall must be attached or affixed to the vehicle in the place and manner prescribed by the State Highway department so that it is clearly displayed at all times, and it shall at all times must be kept clearly legible at all times.

Section 12-31-280. In addition to the penalties herein provided, the South Carolina Tax Commission department, may for good cause, may suspend or revoke any a registration card or identification marker issued pursuant to this chapter and, thereupon, shall immediately notify the South Carolina Highway Department.

Section 12-31-410. A road tax for the privilege of using the streets and highways in this State is hereby imposed upon every motor carrier. The tax shall be is equivalent to thirteen cents per the gasoline taxes imposed by the state on each gallon of fuel, calculated on the amount of gasoline or other motor fuel used by such motor carrier in its operations within this State. Except as credit for certain taxes as provided for in this chapter, taxes imposed on motor carriers by this chapter are in addition to any taxes imposed upon such the carriers by any other provision provisions of law.

Section 12-31-420. The amount of tax due must be calculated upon the amount of gasoline or other motor fuel used by the motor carrier in its operation within this State during the reporting period. The Tax Commission department shall develop forms to reflect the tax due in accordance with nationally recognized standards.

Section 12-31-430. Every motor carrier subject to the tax imposed by this chapter shall on or before the twentieth day of April, July, October and January make to the Commission such reports of its operations during the quarter of the year ending the last day of the preceding month as the Commission may require file a report of its operations with the department each calendar quarter. The quarterly reports are due as follows:

(1) first quarter reports on or before April 30;

(2) second quarter reports on or before July 31;

(3) third quarter reports on or before October 31;

(4) fourth quarter reports on or before January 31 of the succeeding year.

Nothing herein shall in this section may be construed to eliminate the requirement as to registration cards and identification markers otherwise provided by this chapter.

Section 12-31-440. The tax herein imposed with respect to each calendar quarter shall must be paid to the Commission department at the same time the report required by this chapter is filed.

Section 12-31-450. Every motor carrier subject to the tax hereby imposed shall be is entitled to a credit on such the tax equivalent to thirteen cents per gasoline taxes imposed by the State on each gallon of fuel on all gasoline or other motor fuel purchased by such the carrier within this State for use in operations either within or without this State and upon which gasoline or other motor fuel the tax imposed by the laws of this State has been paid by such the carrier. Evidence of the payment of such the tax in such a form as may be required by or is satisfactory to the Commission shall department must be furnished by each carrier claiming the credit herein allowed. When the amount of the credit herein provided exceeds the amount of the tax for which the carrier is liable for the same quarter, such the excess may under regulations of the Commission department may be allowed as a credit on the tax for which the carrier would be otherwise liable for another quarter or quarters. The Commission department is hereby authorized to refund the amount of the credit herein allowed if within its discretion the refund is preferable to the credit. Such The refund shall may be made only if the carrier has fully complied with all the rules and regulations of the Commission department and the provisions of this chapter.

Section 12-31-460. In the event that the Commission department discovers from the examination of the books and records of the motor carrier or otherwise that the tax due has not been paid, a notice of assessment for the amount of such the underpayment shall must be issued, together with penalties or interest as provided by this chapter, and the amount of the assessment so issued shall be is due and payable within ten days from the date of the notice.

Section 12-31-470. No assessment shall issue may be issued on account of any tax, or additional tax, or penalty, or interest except in the case of fraud after three years from the date the return is filed.

Section 12-31-480. If any tax, additional tax, interest, or penalty imposed by this chapter remains due and unpaid for a period of ten days, the Commission department shall issue a warrant under its hand and official seal, directed to any duly an authorized agent of the Commission department, commanding him to levy upon and sell the real and personal property of the person for the payment of the amount thereof, with added penalties, interest, and costs of executing the warrant, and to return such the warrant to the Commission department and pay to it the money collected by virtue thereof, by a time to be therein specified not more than sixty days after receipt of the warrant. Immediately upon receipt of the warrant, the duly authorized agent of the Commission department shall file a copy of the warrant with the clerk of court of any county in this State in which property of the taxpayer named in the warrant may be or may have been located, and thereupon. The clerk of court shall enter in the judgment docket, in the column for judgment debtors, the name of the taxpayer mentioned in the warrant, and in appropriate columns, the amount of tax, or portion thereof of the tax, and the penalties for which the warrant was issued, and the date when such the copy was filed, and shall index the warrant upon the index of judgments. Thereupon, The amount of such the warrant so docketed shall become becomes a lien upon the title to and interest in real property or chattels real or any property of the taxpayer, including bank deposits and all other choses in action on property incapable of manual levy or delivery except salaries and wages, pursuant to the provisions of Sections 12-53-10 to 12-53-60.

Section 12-31-490. The excise tax, and penalties, and interest imposed under this chapter shall constitute a first preferred lien upon any a motor vehicle in which fuel taxable under this chapter is used, the lien attaching at the time such the vehicle is operating in this State through the use of such the fuel. The lien shall must not be removed until the excise tax, penalties, and interest, and legal costs are paid or the property subject to the lien is sold in payment thereof, and the lien shall must be paramount to all private liens or encumbrances of whatever character and to the rights of any a conditional vendor or any other another holder of the legal title in or to any such the motor vehicle.

Section 12-31-500. All taxes, and penalties, and interest collected by the Commission department pursuant to the provisions of this chapter shall must be deposited to the credit of the State Treasurer to be applied to the state highway fund.

Section 12-31-610. Whenever it is discovered that any a person has failed to pay the taxes, penalties, or interest, or any part thereof due pursuant to this chapter, the South Carolina Tax Commission department is hereby authorized to make an assessment with respect thereto and there shall must be added to such the assessment a penalty of twenty-five percent thereof and interest at the rate of one-half of one percent per each month or fraction of a month from the time the said tax, penalty, or interest became due until paid.

Section 12-31-620. Should any If a motor carrier fail, neglect, or refuse fails, neglects, or refuses to file the report or to pay the tax due thereon within thirty days after the date for the filing of such the report and the payment of the tax as provided in this chapter, the South Carolina Tax Commission department shall calculate the tax on the basis of the best information available to it and shall assess the tax, together with penalty and interest above provided and, in addition, the penalty provided by Section 12-31-630.

Section 12-31-630. When any a person required to file a report as provided by this chapter fails to file such the report or to pay the tax due thereon within the time for filing the report as prescribed by this chapter, such the person shall be subject to must pay a penalty of not more than fifty dollars for the first failure and not more than one hundred dollars for any subsequent failure. Penalties prescribed by this section shall be are assessed and collected by the Commission department in the same manner as provided by law with respect to any tax deficiency and shall be are subject to all other applicable provisions relating to the assessment and collection of taxes pursuant to this chapter.

Section 12-31-640. Any A person who operates or causes to be operated on any a highway in this State any a motor vehicle that does not carry a registration card as required by this chapter, or any motor vehicle that does not display, in the manner prescribed by this chapter or by the State Highway Department, the identification marker required by this chapter, shall be is guilty of a misdemeanor and, upon conviction, shall must be punished by a fine of fined not more than one hundred dollars. Each day's operation in violation of any a provision of this section shall constitute constitutes a separate offense.

Section 12-31-650. Any A person who wilfully and knowingly makes a false statement, orally or in writing, or in the form of a receipt for sale of motor fuel for the purpose of obtaining or attempting to obtain or to assist any other another person, firm, or corporation to obtain a credit or reduction of liability for taxes under this chapter, shall be is guilty of a misdemeanor and, upon conviction, shall must be fined not less than one hundred dollars nor more than three thousand dollars or be imprisoned for not less than thirty days nor more than one year, or shall be both fined and imprisoned in the discretion of the court.

Section 12-31-660. The Commission shall have department has the power upon good cause being shown to reduce or waive any the penalties provided by this chapter.

Section 12-31-670. Any A person, or officer or employee of any a corporation, or any member or employee of any a partnership, who, with intent to evade any a lawful requirement of this chapter, or any lawful requirement of the Commission department under the provisions of this chapter, shall fail fails to pay any a tax, make any a report, or submit any information required by or under the provisions of this chapter, or who, with like intent, shall make makes a false or fraudulent statement or report, or who shall supply any supplies false or fraudulent information, shall be is guilty of a misdemeanor and, upon conviction, must be fined not to exceed more than five thousand dollars, or be imprisoned not to exceed more than five years, or both, at the discretion of the court."

SECTION 2. This act takes effect upon approval by the Governor.