H*4146 Session 111 (1995-1996)
H*4146(Rat #0188, Act #0136 of 1995) General Bill, By House Ways and Means
Similar(S 650, H 3854)
A Bill to amend the 1976 by adding Chapter 28 to Title 12 so as to conform
South Carolina's method of imposing an excise tax on motor fuel to federal
law; to amend Section 12-31-410, relating to the road tax, so as to revise the
amount of the tax; to repeal Sections 39-41-20, 39-41-30, 39-41-40, 39-41-50,
39-41-60, 39-41-100, 39-41-110, 39-41-120, 39-41-130, and 39-41-140, relating
to petroleum and petroleum products, Sections 12-27-210, 12-27-220, 12-27-230,
12-27-240, 12-27-250, 12-27-260, 12-27-270, 12-27-280, 12-27-300, 12-27-310,
12-27-320, 12-27-330, 12-27-340, 12-27-350, 12-27-360, 12-27-400, 12-27-510,
12-27-520, 12-27-530, 12-27-540, 12-27-550, 12-27-560, 12-27-570, 12-27-580,
12-27-590, 12-27-600, 12-27-610, 12-27-710, 12-27-720, 12-27-730, 12-27-740,
12-27-750, 12-27-760, 12-27-770, 12-27-780, 12-27-790, 12-27-800, 12-27-810,
12-27-820, 12-27-830, 12-27-1010, 12-27-1110, 12-27-1120, 12-27-1210,
12-27-1220, 12-27-1230, 12-27-1240, 12-27-1250, 12-27-1260, 12-27-1265, and
12-27-1510 relating to gasoline taxes, Sections 12-29-10, 12-29-20, 12-29-30,
12-29-40, 12-29-110, 12-29-120, 12-29-130, 12-29-140, 12-29-150, 12-29-310,
12-29-320, 12-29-340, 12-29-350, 12-29-360, 12-29-370, 12-29-380, 12-29-390,
12-29-400, 12-29-410, 12-29-420, 12-29-430, 12-29-440, 12-29-610, 12-29-620,
and 12-29-630 relating to the tax on motor fuels other than gasoline, and
Article 1, Chapter 27, Title 12, relating to general provisions for gasoline
taxes; and to provide for appropriate references and duties of the Code
Commissioner.-amended title
04/25/95 House Introduced, read first time, placed on calendar
without reference HJ-9
04/26/95 House Read second time HJ-157
04/27/95 House Read third time and sent to Senate HJ-11
05/01/95 Senate Introduced and read first time SJ-27
05/01/95 Senate Referred to Committee on Finance SJ-27
05/17/95 Senate Recalled from Committee on Finance SJ-8
05/18/95 Senate Read second time SJ-58
05/18/95 Senate Ordered to third reading with notice of
amendments SJ-58
05/23/95 Senate Read third time and enrolled SJ-126
05/23/95 Senate Reconsidered SJ-129
05/23/95 Senate Amended SJ-129
05/23/95 Senate Read third time and returned to House with
amendments SJ-129
05/25/95 House Concurred in Senate amendment and enrolled HJ-68
05/30/95 House Recalled from Legislative Council HJ-15
05/30/95 House Reconsider vote whereby concurred in Senate
amendment and enrolled HJ-100
05/30/95 House Senate amendment amended HJ-101
05/30/95 House Returned to Senate with amendments HJ-102
05/30/95 Senate Concurred in House amendment and enrolled SJ-52
06/06/95 Ratified R 188
06/12/95 Signed By Governor
06/12/95 Effective date 05/01/96
06/12/95 See act for exception to or explanation of
effective date
08/18/95 Copies available
08/18/95 Act No. 136
(A136, R188, H4146)
AN ACT TO AMEND THE 1976 CODE BY ADDING CHAPTER
28 TO TITLE 12 SO AS TO CONFORM SOUTH CAROLINA'S
METHOD OF IMPOSING AN EXCISE TAX ON MOTOR FUEL TO
FEDERAL LAW; TO AMEND SECTION 12-31-410, RELATING TO
THE ROAD TAX, SO AS TO REVISE THE AMOUNT OF THE TAX;
TO REPEAL SECTIONS 39-41-20, 39-41-30, 39-41-40, 39-41-50,
39-41-60, 39-41-100, 39-41-110, 39-41-120, 39-41-130, AND 39-41-140
RELATING TO PETROLEUM AND PETROLEUM PRODUCTS,
SECTIONS 12-27-210, 12-27-220, 12-27-230, 12-27-240, 12-27-250,
12-27-260, 12-27-270, 12-27-280, 12-27-300, 12-27-310, 12-27-320,
12-27-330, 12-27-340, 12-27-350, 12-27-360, 12-27-400, 12-27-510,
12-27-520, 12-27-530, 12-27-540, 12-27-550, 12-27-560, 12-27-570,
12-27-580, 12-27-590, 12-27-600, 12-27-610, 12-27-710, 12-27-720,
12-27-730, 12-27-740, 12-27-750, 12-27-760, 12-27-770, 12-27-780,
12-27-790, 12-27-800, 12-27-810, 12-27-820, 12-27-830, 12-27-1010,
12-27-1110, 12-27-1120, 12-27-1210, 12-27-1220, 12-27-1230,
12-27-1240, 12-27-1250, 12-27-1260, 12-27-1265, AND 12-27-1510
RELATING TO GASOLINE TAXES, SECTIONS 12-29-10, 12-29-20,
12-29-30, 12-29-40, 12-29-110, 12-29-120, 12-29-130, 12-29-140,
12-29-150, 12-29-310, 12-29-320, 12-29-340, 12-29-350, 12-29-360,
12-29-370, 12-29-380, 12-29-390, 12-29-400, 12-29-410, 12-29-420,
12-29-430, 12-29-440, 12-29-610, 12-29-620, AND 12-29-630
RELATING TO THE TAX ON MOTOR FUELS OTHER THAN
GASOLINE, AND ARTICLE 1, CHAPTER 27, TITLE 12, RELATING
TO GENERAL PROVISIONS FOR GASOLINE TAXES; AND TO
PROVIDE FOR APPROPRIATE REFERENCES AND DUTIES OF
THE CODE COMMISSIONER.
Be it enacted by the General Assembly of the State of South
Carolina:
Intent
SECTION 1. It is the intent of the General Assembly in enacting
Chapter 28, Title 12 of the 1976 Code to establish an efficient and
effective motor fuel tax collection and enforcement system adequate to
substantially deter motor fuel tax evasion emanating from sources within
and outside this State. The legislature has determined that two key
elements necessary to achieve this objective are increased conformity
with federal law concerning the imposition of tax on motor fuels and
increased reliance on highway enforcement systems. This act is intended
to conform this state's method of imposing an excise tax on motor fuel to
the Internal Revenue Code and regulations issued pursuant to it, as well
as create a framework for immediate highway enforcement of
anti-smuggling provisions, without materially altering existing petroleum
marketing practices, economics, or relationships.
South Carolina's method of imposing an excise tax on motor fuel
conformed to federal law
SECTION 2. Title 12 of the 1976 Code is amended by adding:
"Chapter 28
Tax on Motor Fuels
Article 1
Definitions
Section 12-28-110. As used in this chapter:
(1) `Alternative fuel' means a liquefied petroleum gas, compressed
natural gas product, or a combination of liquefied petroleum gas and a
compressed natural gas product used in an internal combustion engine or
motor to propel any form of vehicle, machine, or mechanical contrivance.
It includes all forms of fuel commonly or commercially known or sold as
butane, propane, or compressed natural gas.
(2) `Blend stock' includes any petroleum product component of
gasoline, such as naphtha, reformate, or toluene, that can be blended for
use in a motor fuel. However, it does not include any substance that
ultimately is used for consumer nonmotor fuel use and is sold or
removed in drum quantities 55 gallons or less at the time of the removal
or sale.
(3) `Blended fuel' means a mixture composed of gasoline or diesel
fuel and another liquid, other than a de minimis amount of a product
such as carburetor detergent or oxidation inhibitor, that can be used as a
fuel in a highway vehicle.
(4) `Blender' includes a person who produces blended motor fuel
outside the bulk transfer/terminal system.
(5) `Blending' means the mixing of one or more petroleum
products, with or without another product, regardless of the original
character of the product blended, if the product obtained by the blending
is capable of use or otherwise sold for use in the generation of power for
the propulsion of a motor vehicle, an airplane, or a motorboat. It does
not include blending that occurs in the process of refining by the original
refiner of crude petroleum or the blending or products known as
lubricating oil and greases.
(6) `Bulk end user' means a person who receives into the person's
own storage facilities in transport truck lots of taxable motor fuel for the
person's consumption.
(7) `Bulk plant' means a motor fuel storage and distribution facility
that is not a terminal and from which motor fuel may be removed at a
rack.
(8) `Bulk transfer' means a transfer of motor fuel from one location
to another by pipeline tender or marine delivery within bulk
transfer/terminal system.
(9) `Bulk transfer/terminal system' means the motor fuel distribution
system consisting of refineries, pipelines, vessels, and terminals.
Gasoline in a refinery, pipeline, vessel, or terminal is in the bulk
transfer/terminal system. Taxable motor fuel in the fuel supply tank of an
engine, or in a tank car, rail car, trailer, truck, or other equipment
suitable for ground transportation is not in the bulk transfer/terminal
system.
(10) `Director' mean the administrative head of the Department of
Revenue and Taxation or his designee.
(11) `Dead storage' is the amount of taxable motor fuel that will not
be pumped out of a storage tank because the motor fuel is below the
mouth of the draw pipe. For this purpose, a dealer may assume that the
amount of motor fuel in dead storage is two hundred gallons for a tank
with a capacity of ten thousand gallons or less and four hundred gallons
for a tank with a capacity of more than ten thousand gallons.
(12) `Delivery' means the placing of taxable motor fuel or any liquid
into the fuel tank of a motor vehicle.
(13) `Department' means the South Carolina Department of Revenue
and Taxation.
(14) `Destination state' means the state, territory, or foreign country
to which motor fuel is directed for delivery into a storage facility, a
receptacle, a container, or a type of transportation equipment for the
purpose of resale or use.
(15) `Diesel fuel' means a liquid that is commonly or commercially
known or sold as a fuel that is suitable for use in a diesel-powered
highway vehicle. A liquid meets this requirement if, without further
processing or blending, the liquid has practical and commercial fitness
for use in the propulsion engine of a diesel-powered highway vehicle.
However, a liquid does not possess this practical and commercial fitness
solely by reason of its possible or rare use as a fuel in the propulsion
engine of a diesel-powered highway vehicle. `Diesel fuel' does not
include jet fuel if the buyer is registered to purchase jet fuel subject to
federal taxes applicable to jet fuel and the seller obtains certification of
that fact satisfactory to the Internal Revenue Service before making the
sale.
(16) `Diesel-powered highway vehicle' means a motor vehicle
operated on a highway that is propelled by a diesel-powered engine.
(17) `Distributor' means a person who acquires motor fuel from a
supplier or from another distributor for subsequent sale or use.
(18) `Dyed diesel fuel' means diesel fuel that is required to be dyed
under United States Environmental Protection Agency and Internal
Revenue Service rules or pursuant to other requirements subsequently set
by the agency or service including any invisible marker requirements.
(19) `Eligible purchaser' means a person who has been authorized by
the department pursuant to Section 12-28-930 to make the election under
Section 12-28-925.
(20) `Enterer' includes a person who is the importer of record under
federal customs law with respect to taxable motor fuel. If the importer of
record is acting as an agent, the person for whom the agent is acting is
the enterer. If there is no importer of record of taxable motor fuel entered
into this State, the owner of the diesel fuel at the time it is brought into
South Carolina is the enterer.
(21) `Entry' means the importing of taxable motor fuel into this
State. However, if taxable motor fuel is brought into this State in the
fuel tank of a motor vehicle, it is not deemed to be an `entry' if it is not
removed from the fuel tank except as used for the propulsion of that
motor vehicle, except to the extent that taxable motor fuel was acquired
tax-free for export or a refund of tax was claimed as a result of
exportation from the state from which that taxable motor fuel was
transported into South Carolina.
(22) `Ethanol' means `fuel grade ethanol'.
(23) `Export' means to obtain motor fuel in this State for sale or
other distribution in another state. In applying this definition, motor fuel
delivered out-of-state by or for the seller constitutes an export by the
seller and motor fuel delivered out-of-state by or for the purchaser
constitutes an export by the purchaser.
(24) `Exporter' means a person, other than a supplier, who purchases
taxable motor fuel in this State for the purpose of transporting or
delivering the fuel to another state or country.
(25) `Fuel grade ethanol' means American Society for Testing and
Materials standard in effect January 1, 1995, and successor rules, as the
D-4806 specification for denatured fuel grade ethanol for blending with
gasoline for use as automatic spark-ignition engine fuels.
(26) `Fuel transportation vehicle' means a vehicle designed for
highway use which also is designed or used to transport taxable motor
fuels and includes transport trucks and tank wagons.
(27) `Gasohol' means blended fuel composed of gasoline and fuel
alcohol.
(28) `Gasoline' means all products commonly or commercially known
or sold as gasoline that are suitable for use as a motor fuel. It does not
include a product sold as a product other than gasoline and has an
American Society for Testing Materials octane number of less than
seventy-five as determined by the `motor method' and does not include
aviation gasoline if the buyer is registered to purchase aviation gasoline
free of tax and the seller obtains certification of that fact satisfactory to
the Department before making the sale.
(29) `Gasoline blend stocks' includes any petroleum product
component of gasoline, such as naphtha, reformate, or toluene, that can
be blended for use in a motor fuel. However, it does not include any
substance that ultimately is used for consumer nonmotor fuel use and is
sold or removed in drum quantities fifty-five gallons or less at the time
of the removal or sale.
(30) `Gross gallons' means the total, measured product, exclusive of
temperature or pressure adjustments, considerations or deductions, in
United States gallons.
(31) `Heating oil' means a taxable motor fuel that is burned in a
boiler, furnace, or stove for heating or industrial processing purposes.
(32) `Highway vehicle' means a self-propelled vehicle that is
designed for use on a highway.
(33) `Import' means to bring motor fuel into this State for sale, use,
or storage by any means of conveyance other than in the fuel supply tank
of a motor vehicle. In applying this definition, motor fuel delivered into
this State from out-of-state by or for the seller constitutes an import by
the seller, and motor fuel delivered into this State from out-of-state by or
for the purchaser constitutes an import by the purchaser.
(34) `Import verification number' means the number assigned by the
department or its delegate or appointee with respect to a single transport
truck delivery into this State from another state upon request for an
assigned number by an importer or the transporter carrying taxable motor
fuel into this State for the account of an importer.
(35) `In this State' means the area within the borders of South
Carolina including all territories within the borders owned by or added to
the United States of America.
(36) `Invoiced gallons' means the gallons actually billed on an
invoice in payment to a supplier.
(37) `K-1 kerosene' means burner fuel designed for unvented space
heaters which meets American Society for Testing Materials standard
D-3699, in effect January 1, 1995, and successor rules, as the
specification for #1-K kerosene.
(38) `Liquid' means a substance that is liquid in excess of sixty
degrees Fahrenheit and a pressure of fourteen and seven-tenths pounds a
square inch absolute.
(39) `Motor fuel' means gasoline, diesel fuel, and blended fuel.
(40) `Motor fuel transporter' means a person who transports motor
fuel by transport truck or railroad tank car.
(41) `Motor vehicle' means a vehicle that is propelled by an internal
combustion engine or motor and is designed to permit the vehicle's
mobile use on highways. It does not include:
(a) farm machinery including machinery designed for off-road use
but capable of movement on roads at low speeds;
(b) a vehicle operated on rails; or
(c) machinery designed principally for off-road use.
(42) `Net gallons' means the remaining product, after all
considerations and deductions have been made, measured in United States
gallons, corrected to a temperature of sixty degrees Fahrenheit, thirteen
degrees Celsius, and a pressure of fourteen and seven-tenths pounds a
square inch, the ultimate end amount.
(43) `Permissive supplier' means a person who does not meet the
geographic jurisdictional connections to this State required of a supplier
as defined in Section 12-28-920(A), but who:
(a) is a position holder in a federally qualified terminal located
outside this State; or
(b) acquires a product in out-of-state terminals from a position
holder in a transaction that otherwise qualifies as a two-party exchange
under Section 12-28-110(63); and under this subitem and subitem (a);
(c) is registered under Section 4101 of the Internal Revenue Code
for transactions in taxable motor fuels in the bulk transfer/terminal
distribution system.
(44) `Person' means a natural person, a partnership, a firm, an
association, a corporation, a representative appointed by a court, the
State, a political subdivision or any other entity, group, or syndicate.
(45) `Position holder' means the person who holds the inventory
position in motor fuel in a terminal, as reflected on the records of the
terminal operator. A person holds the inventory position in motor fuel
when that person has a contract with the terminal operator for the use of
storage facilities and terminaling services for fuel at the terminal. The
term includes a terminal operator who owns fuel in the terminal.
(46) `Public highway' means the entire width between boundary lines
of each publicly maintained way in this State, including streets and alleys
in municipalities, when any part of the way is open to the public use for
vehicle travel.
(47) `Qualified terminal' means a qualified terminal as defined under
Internal Revenue Code, regulation, and practices and which has been
assigned a terminal control number by the Internal Revenue Service.
(48) `Rack' means a mechanism for delivering motor fuel from a
refinery, a terminal, or a bulk plant into a railroad tank car, a transport
truck, or another means of bulk transfer outside of the bulk
transfer/terminal system.
(49) `Refiner' means a person who owns, operates, or otherwise
controls a refinery within the United States.
(50) `Refinery' means a facility used to produce taxable motor fuel
from crude oil, unfinished oils, natural gas liquids, or other hydrocarbons
and from which taxable motor fuel may be removed by pipeline, by
vessel, or at a rack.
(51) `Removal' means a physical transfer other than by evaporation,
loss, or destruction of taxable motor fuel from a terminal, manufacturing
plant, customs custody, pipeline, marine vessel including barges and
tankers, refinery, or any receptacle that stores taxable motor fuel.
(52) `Retailer' means a person who engages in the business of selling
or distributing to the end user within this State.
(53)(a) `Supplier' means a person who meets all the following
conditions:
(i) is subject to the general taxing jurisdiction of this State;
(ii) is registered under Section 4101 of the Internal Revenue Code
for transactions in taxable motor fuels in the bulk transfer/terminal
distribution system; and
(iii) is one of the following:
1. is the `position holder' in a terminal or refinery in this
State;
2. imports taxable motor fuel into this State from a foreign
country;
3. acquires taxable motor fuel from a terminal or refinery in this
State from a position holder pursuant to a `two-party exchange';
4. is the position holder in a terminal or refinery outside this State
with respect to taxable motor fuel which that person imports into this
State on his account.
(b) A terminal operator is not considered a supplier merely because
the terminal operator handles taxable motor fuel consigned to it within a
terminal. When the term `supplier' is used in this chapter other than in
this section, it is deemed to also refer the term `permissive supplier'
unless provided otherwise.
(54) `Tank wagon' means a straight truck having multiple
compartments designed or used to carry liquid motor fuel.
(55) `Taxable motor fuel' means gasoline, diesel fuel, kerosene, and
blends of them and any other substance blended with them.
(56) `Terminal' is a storage and distribution facility for taxable motor
fuel, supplied by pipeline or marine vessel, which has been registered as
a qualified terminal by the Internal Revenue Service.
(57) `Terminal bulk transfers' include, but are not limited to:
(a) a marine barge movement of fuel from a refinery or terminal to
a terminal;
(b) pipeline movements of fuel from a refinery or terminal to a
terminal;
(c) book transfers of products within a terminal between suppliers
before completion of removal across the rack;
(d) two-party exchanges between licensed suppliers.
(58) `Terminal operator' is a person who owns, operates, or otherwise
controls a terminal and does not use a substantial portion of the taxable
motor fuel that is transferred through or stored in the terminal for its own
use. `For its own use' means for its own consumption or in the
manufacture of products other than motor fuel. A terminal operator may
own the taxable motor fuel that is transferred through or stored in the
terminal.
(59) `Throughputter' means a person who does all of the
following:
(a) receives transfer of taxable motor fuel from refiners, importers,
terminal operators, or other throughputters;
(b) stores the taxable motor fuel in a terminal;
(c) owns the taxable motor fuel or holds the inventory position to
the taxable motor fuel, as reflected on the records of the terminal
operator, at the time of removal or sale from a terminal.
(60) `Transmix' means the buffer or interface between two different
products in a pipeline shipment or a mix of two different products within
a refinery or terminal that results in an off-grade mixture.
(61) `Transport truck' means a semitrailer combination rig designed
or used to transport liquid motor fuel over the highways.
(62) `Transporter' means any operator of a pipeline, barge, railroad
or transport truck engaged in the business of transporting taxable motor
fuels.
(63) `Two-party exchange' means a transaction in which a product is
transferred from one licensed supplier or licensed permissive supplier to
another pursuant to an exchange agreement. An exchange agreement
means an agreement between a licensed supplier or licensed permissive
supplier and another licensed supplier or permissive supplier where one is
a position holder in a terminal who agrees to deliver taxable motor fuel
to the other party or the other party's customer at the loading rack of the
terminal where the delivering party holds an inventory position.
(64) `Ultimate purchaser' means a person who uses taxable motor
fuel.
(65) `Ultimate vendor' means a person who sells taxable motor fuel
to the user of the fuel, the ultimate purchaser.
(66) `Undyed diesel fuel' means diesel fuel that is not subject to the
United States Environmental Protection Agency requirements, or has not
been dyed in accordance with Internal Revenue Service Fuel dyeing
provisions.
(67) `Vehicle fuel tank' means any receptacle on a motor vehicle
from which fuel is supplied for the propulsion of the motor vehicle.
(68) `Wholesaler' means a person who acquires taxable motor fuel
from a supplier or from another wholesaler for subsequent sale and
distribution at wholesale by tank cars, motor vehicles, or both.
Article 3
Imposition of Tax
Section 12-28-310. Subject to the exemptions provided in this chapter,
a tax of sixteen cents a gallon is imposed on all gasoline used or
consumed in this State and upon all diesel fuel used or consumed in this
State in producing or generating power for propelling motor vehicles.
The tax levied on taxable motor fuel pursuant to this chapter is a levy
and assessment on the consumer, and the levy and assessment on other
persons as specified in this chapter are as agents of the State for the
collection of the tax. This section does not affect the method of
collecting the tax as provided in this chapter. The tax imposed by this
section must be collected and paid at those times, in the manner, and by
those persons specified in this chapter.
Section 12-28-320. Except as otherwise provided under Article 7 of
this chapter, the department shall consider it a presumption that all
taxable motor fuel delivered in this State into a motor vehicle fuel supply
tank is to be used or consumed on the highways in this State producing
or generating power for propelling motor vehicles.
Section 12-28-330. The department shall consider it a rebuttable
presumption, subject to proof of exemption under Article 7 of this
chapter, that all taxable motor fuel removed from a terminal in this State,
or imported into this State other than by a bulk transfer within the bulk
transfer terminal system or delivered into an end user's storage tank, is to
be used or consumed on the highways in South Carolina in producing or
generating power for propelling motor vehicles.
Article 5
Measurement of Tax
Section 12-28-510. The tax imposed by this chapter on use of taxable
motor fuel which was imported into this State by a licensed importer,
other than by a bulk transfer, shall arise at the time the product is entered
into the State and shall be measured by invoiced gallons received outside
this State at a refinery, terminal, or at a bulk plant for delivery to a
destination in this State.
Section 12-28-520. (A) Except as provided in Section 12-28-510, the
tax imposed by this chapter on the use of taxable motor fuel must be
measured by invoiced gallons of taxable motor fuel removed, other than
by a bulk transfer, by a licensed supplier from a qualified terminal or
refinery within this State, and from a qualified terminal or refinery
outside this State for delivery to a location in South Carolina as
represented on the shipping papers if the supplier imports the taxable
motor fuel for his own account or the supplier has made a tax
pre-collection election under Section 12-28-910. This tax otherwise
generally must be determined in the same manner as the tax imposed by
Section 4081 of the Internal Revenue Code of 1986, or the Code of
Federal Regulations as it exists as of January 1, 1995, or as subsequently
modified.
(B) The tax imposed by this chapter on use of taxable motor fuel in
this State as measured by gallons removed by a supplier, or terminal
operator, from terminals in this State must be complemented by a tax
measured annually at each terminal in this State by the amount by which
net gallons lost or unaccounted for, including transmix, within each
terminal exceed the sum of net gallon gains plus one-half of one percent
times the number of all net gallons removed from the terminal across the
rack or in bulk.
Section 12-28-530. (A) The tax imposed by Section 12-28-310 on the
date of an increase in the tax rate set out in that section is applicable to
previously taxed taxable motor fuel:
(1) in excess of one thousand gallons held in storage by an end
user;
(2) inventory held for sale by a fuel vendor.
(B) The tax imposed by Section 12-28-310 is applicable to nonexempt
inventory held by a person outside of the bulk transfer system in this
State in quantities which, in the aggregate with respect to the person,
exceed one thousand gallons, to the extent the inventory previously has
not been subject to the tax imposed by this State under the predecessor
motor fuel tax statute. However, no tax is payable with respect to
taxable motor fuel which is dyed diesel fuel or held by an exempt user
including government entities described under Sections 12-28-710(A)(6)
and 12-28-710(A)(12).
(C) Persons in possession of taxable motor fuel subject to this section
shall perform the following:
(1) take an inventory to determine the gallons in storage for
purposes of determining the tax on inventory;
(2) deduct the amount of taxable motor fuel in dead storage;
(3) deduct these gallons in which tax at the full rate previously has
been paid;
(4) take a deduction for gallons of dyed diesel fuel included in item
(1) above, if appropriate;
(5) report the gallons listed in item (1) on forms provided by the
department.
(D) The amount of the inventory tax is equal to the inventory tax rate
times the gallons in storage as determined under subsection (B). The
inventory tax rate is equal to the difference between the increased tax rate
minus the previous tax rate to which those gallons were previously
subjected to tax.
(E) Payment of this floorstock tax must be made in conformity with
Section 12-28-985.
Article 7
Exemptions and Refunds
Section 12-28-710. (A) Subject to the procedural requirements and
conditions set out in this article, the following are exempt from the tax
imposed by Section 12-28-310 on taxable motor fuel:
(1) taxable motor fuel for which proof of export is available in the
form of a terminal issued destination state shipping paper;
(a) exported by a supplier who is licensed in the destination
state;
(b) sold by a supplier to another person for immediate export to a
state for which the destination state taxable motor fuel tax has been paid
to the supplier who is licensed to remit tax to the destination state;
(c) which is destined for use within the destination state for which
an exemption has been made available by the destination state subject to
procedural regulations promulgated by the department;
(2) taxable motor fuel which was acquired by a licensed exporter
and as to which the tax imposed by this chapter previously has been paid
or accrued, which motor fuel was placed into storage in this State and
subsequently was exported by transport truck by or on behalf of the
licensed exporter;
(3) taxable motor fuel which was acquired by an unlicensed
exporter and as to which the tax imposed by this chapter previously has
been paid or accrued and subsequently was exported by transport truck
by or on behalf of the licensed exporter in a diversion across state
boundaries properly reported in conformity with Section 12-28-1525;
(4) taxable motor fuel exported out of a bulk plant in this State in
a tank wagon if the destination of that vehicle does not exceed
twenty-five miles from the borders of this State and as to which the tax
imposed by this chapter previously has been paid or accrued, subject to
gallonage limits and other conditions established by the department;
(5) K-1 kerosene sold at retail through dispensers which have been
designed and constructed to prevent delivery directly from the dispenser
into a vehicle fuel supply tank and K-1 kerosene sold at retail through
nonbarricaded dispensers in quantities of not more than twenty-one
gallons for use other than for highway purposes, under regulations as the
department reasonably requires;
(6) taxable motor fuel sold to the United States or its agencies or
instrumentalities;
(7) subject to determination by the department, that portion of
diesel fuel used to operate equipment attached to a motor vehicle, if the
diesel fuel was placed into the fuel supply tank of a motor vehicle that
has a common fuel reservoir for travel on a highway and for the
operation of equipment;
(8) taxable motor fuel acquired by an end user out-of-state and
carried into this State, retained within and consumed from the same
vehicle fuel supply tank within which it was imported;
(9) diesel fuel used as heating oil or in trains, or used for other
nonhighway purposes other than as expressly exempted under another
provision;
(10) taxable motor fuel which was lost or destroyed as a direct
result of a sudden and unexpected casualty;
(11) taxable diesel which has been contaminated by dye so as to be
unsalable or unusable as highway fuel;
(12) taxable motor fuel used in state-owned school buses and in
state-owned administration and service vehicles used in the pupil
transportation program;
(13) taxable motor fuel used in manufacture of fuel oil;
(14) taxable motor fuel sold for use in commercial shrimp boats;
(15) taxable gasoline used in operating tractors or other farm
equipment used exclusively in farm operations, no part of which is used
in any vehicle or equipment driven upon the public roads, streets, or
highways of this State. A claim for refund must be made under Section
12-28-790.
Section 12-28-720. The exemption for imports:
(1) under Section 12-28-710(A)(1) must be perfected by a deduction
on the report of the supplier which is otherwise responsible for tax on
removal of the product from a terminal or refinery in this State;
(2) under Section 12-28-710(A)(2) and 12-28-710(A)(4) may be
perfected at the option of the exporter by a refund claim if the claim in
the aggregate month to date exceeds one thousand dollars, by a refund
claimed on the licensed exporter report for that month's activity, or under
Section 12-28-710(A)(3) if a diversion by an unlicensed exporter upon a
refund application is made to the department within three years.
Section 12-28-730. Exempt use of K-1 kerosene is governed by
regulations promulgated by the department which must follow regulations
governing the exemption promulgated by the federal government to the
extent that impositions of conforming regulations is practical and does
not work a hardship on sellers and end users in this State.
Section 12-28-740. The exemption for sales of taxable motor fuel for
use by the federal government, federal agencies, instrumentalities, and
federal reservations, and state-owned buses and vehicles used in an
educational program provided under Section 12-28-710(A)(6) and (12)
must be perfected as follows:
(1) by refund claim by a licensed fuel vendor which made a sale of
tax-paid motor fuel as ultimate vendor to an exempt government user
listed above on behalf of the exempt user. The claim must be made
directly to the department under regulations and procedures and on forms
provided by the department. The department shall issue a refund within
thirty days of receipt of the claim for refund from the licensed fuel
vendor;
(2) if the department makes a finding that its collections would not be
jeopardized by application by an ultimate vendor for a Government
Exempt Bulk Sales Permit which entitles that person to make purchases
of fuel tax-free for resale for exempt government use under the following
conditions:
(a) The vendor shall make application with the department for the
permit on a form acceptable to the department. The application must
include:
(i) proof of financial responsibility or bond in an amount not to
exceed the tax on the total gallons to be purchased tax-exempt in any
year;
(ii) an estimate of total tax-exempt gallons to be sold under the
permit on an annual basis, which amount constitutes the limit of
tax-exempt purchases which the applicant is authorized to make, absent
re-application pursuant to subitem (f) of this item;
(iii) the name of the suppliers from which the applicant shall make
the tax-exempt purchases under this permit for the term covered by the
permit. This subitem does not mandate sales by a supplier to another
person;
(iv) a list of government tax-exempt purchasers qualifying under
sub-subitem (iii) of this subitem and estimated volumes for them;
(v) other information the department reasonably requires.
(b) Upon evaluation of the data provided by applicant and
independent investigation of that information the department in its
discretion makes, the department shall issue the permit provided under
this section to the applicant with a copy to each supplier named by the
applicant pursuant to subitem (a) of this item.
(c) In order for a government entity to qualify as a government
tax-exempt purchaser eligible for tax-exempt sales under this section, the
ultimate vendor shall obtain a properly completed Federal Form 1094, its
state equivalent, or successor form from the government entity and shall
send to the department a copy of this form with an estimate of the annual
quantity of taxable motor fuel to be supplied to that government entity
purchaser. The department shall assign an approval number for that
government entity and location and shall issue a permit to the ultimate
vendor authorizing the ultimate vendor to make tax-exempt sales of that
estimated quantity of fuel to the agency.
(d) The department may not require that the identical gallons
purchased by the ultimate vendor under the permit be delivered to the
eligible government entity, only that the total gallons purchased under the
permit tax exempt equal the total gallons delivered to all eligible
government entities.
(e) If the ultimate vendor fails to deliver any quantity of the
tax-exempt purchases to eligible government entities, the ultimate vendor
is liable for the tax on that quantity. If the excess of tax-exempt gallons
purchased exceeds gallons sold for tax-exempt use by ten percent, the
department in its discretion may levy a penalty equal to ten percent of
the tax due in addition to taxes due.
(f) If the ultimate vendor needs to purchase additional gallons above
that estimated to fulfill his commitments, he shall notify the department.
If the department is satisfied with the reports submitted accounting for
the tax-exempt fuel previously submitted, it shall increase the quantity
authorized on the permit and so notify the supplier.
(3) If the sale to the eligible government entities of taxable motor fuel
occur at a fixed retail pump available to the general public by:
(a) application by the ultimate vendor, having made the sale to the
eligible government entity without the tax, for a refund from the
department by submitting the application and supporting documentation
the department reasonably prescribes by regulation;
(b) by application for a refund or credit against its liabilities
otherwise arising under this chapter, if the purchase is charged to a credit
card issued to an eligible government entity, the issuer of the card elects
to be the ultimate vendor, and the federal agency is billed without the
tax;
(c) if the sale to the government entity includes the tax levied by
this chapter, by application for a refund by the government entity from
the department including submitting such supporting documentation the
department reasonably prescribes by regulation.
Section 12-28-750. The exemptions per use pursuant to Section
12-28-710(A)(7) must be perfected by refund claim filed by the end user
who shall provide evidence of an allocation of use satisfactory to the
department.
Section 12-28-760. No tax imposed by this chapter may be paid by or
levied upon motor fuel consumed by an end user who meets the
requirement of Section 12-28-710(A)(8).
Section 12-28-770. The exemption for taxable motor fuel pursuant to
Section 12-28-710(A)(10) and (11) which was purchased tax-paid for a
taxable use and, after the purchase, was contaminated by the presence of
a dye or marker or subject to a sudden and unexpected casualty loss,
must be refunded to the person responsible for the contamination or loss
event upon application and on proof shown acceptable to the
department.
Section 12-28-780. Taxable motor fuel tax that has otherwise been
erroneously paid by a person must be refunded by the department upon
proof shown satisfactory to the department. The department's authority
under this section must be construed broadly to prevent unjust and
unintended payment of taxes on exempt uses or by exempt users.
Section 12-28-785. All exemptions under Section 12-28-710, not
expressly covered under Sections 12-28-720 through 12-28-780, must be
perfected as follows:
(1) A supplier or tank wagon importer shall take a deduction against
taxable motor fuel shown on his monthly report for those gallons of
diesel fuel removed from a terminal or refinery destined for delivery to a
point in this State as shown on the shipping papers, as to which dye was
added in a manner which conforms to federal requirements established by
the Internal Revenue Code and regulations issued under it.
(2) The end user shall apply for refund with respect to taxable motor
fuel purchased by the end user for consumption in an exempt use
described under Section 12-28-710 as to which the tax imposed by this
chapter previously was paid and no refund previously issued.
(3) An importer shall take a deduction against tax owed under Section
12-28-905(A) or (B) or dyed diesel fuel if such diesel fuel would have
met the requirements of item (1).
Section 12-28-790. (A) To claim a refund under Sections 12-28-720
through 12-28-780, a person shall present to the department a statement
that contains a written verification that the claim is made under penalties
of perjury and lists the total amount of taxable motor fuel purchased and
used for exempt purposes. The claim must be filed not more than three
years after the date the taxable motor fuel was purchased. The statement
must show that payment for the purchase has been made and the amount
of tax paid on the purchase has been remitted to the seller.
(B) The department may make investigations it considers necessary
before refunding the taxable motor fuel tax to a person and may
investigate a refund after the refund has been issued and within the time
frame for making adjustments to tax under this chapter.
(C) Where a refund is payable to a supplier, the supplier may claim a
credit in lieu of the refund.
(D) To facilitate efficient administration and in lieu of any of the
individual refund procedures, the department may provide by regulation
an alternative election by the applicant for a refund by way of credit
against state income tax liability.
Section 12-28-795. If a claim for refund is not issued within thirty
days of the filing required by Section 12-28-785, the department shall
pay interest at the rate provided for in Section 12-54-30 from the date of
filing of the claim for refund until a date, determined by the director, that
does not precede by more than thirty days, the date on which the refund
is made.
Article 9
Payments; Liability; Eligibility; Collections
Section 12-28-905. (A) Except as otherwise provided in this chapter,
the tax imposed by Section 12-28-310 on taxable motor fuel measured by
gallons imported from another state must be paid by the licensed
importer who has imported the nonexempt taxable motor fuel within
three business days of the earlier of the time the nonexempt taxable
motor fuel was entered into the State or the time a valid import
verification number required by Section 12-28-1135 was assigned by the
department under regulations the department promulgates. However, if
the supplier has made a blanket election to pre-collect tax under Section
12-28-910(B), he is jointly liable with the importer for the tax and shall
remit the tax to the department on behalf of the importer under the same
terms as a supplier payment under Section 12-28-920, and no import
verification number is required.
(B) Except as otherwise provided in this section, the tax imposed by
Section 12-28-310 on taxable motor fuel measured by gallons imported
from another state must be paid by the licensed bonded importer who has
imported the nonexempt taxable motor fuel during a month before the
twenty-second day of the following month unless the day falls upon a
weekend or state or banking holiday, in which case the liability is due the
next succeeding business day, if before the time of import the importer
obtains a valid import verification number required by Section
12-28-1135, assigned by the department under regulations promulgated
by the department. However, if the supplier has made a blanket election
to pre-collect tax under Section 12-28-910(3), he is jointly liable with the
importer for the tax and shall remit the tax to the department on behalf
of the importer under the same terms as a supplier payment under
Section 12-28-920, and no import verification number is required.
Section 12-28-910. (A) Any licensed supplier or licensed permissive
supplier may make a blanket election with the department to treat all
removals from all of its out-of-state terminals with a destination in this
State as shown on the terminal issued shipping paper as if the removals
were removed across the rack by the supplier from a terminal in this
State for all purposes.
(B) This election must be made by filing `notice of election' with the
department as provided in this section.
(C) The department shall release a list of electing suppliers under
subsection (B) upon request by any person.
(D) The absence of an election by a supplier under this section does
not relieve the supplier of responsibility for remitting the tax imposed by
this chapter upon the removal from an out-of-state terminal for import
into this State by the supplier.
(E) A supplier which makes the election provided by this section shall
pre-collect the tax imposed by this chapter on all removals from a
qualified terminal on its account as a position holder or a person
receiving fuel from a position holder pursuant to a two-party exchange
agreement without regard to the license status of the person acquiring the
fuel from the supplier, the point or terms of sale, or the character of
delivery.
Section 12-28-915. (A) The tax imposed by Section 12-28-310
measured by taxable motor fuel removed by a licensed supplier from a
terminal or refinery in this State other than a bulk transfer, must be
collected and remitted to the State by the supplier, as shown in the
terminal operator's records, who removes the taxable gallons.
(B) The supplier and each reseller shall list the amount of tax as a
separate line item on all invoices or billings.
(C) All tax to be paid by a supplier with respect to gallons removed
on his account during a calendar month is due and payable before the
twenty-second day of the following month unless the day falls upon a
weekend or state or banking holiday in which case the liability is due the
next succeeding business day.
(D) A supplier shall remit late taxes remitted to the supplier by an
eligible purchaser and give timely notification to the department of late
remittances if that supplier previously gave notice to the department of an
uncollectible tax amount pursuant to Section 12-28-940(B).
Section 12-28-920. (A) The terminal operator of a terminal in this
State is jointly and severally liable for the tax imposed under Section
12-28-310 and shall remit payment to this State upon discovery of either
of the following conditions:
(1) The supplier with respect to the taxable motor fuel is a person
other than the terminal operator and is not a licensed supplier. The
terminal operator is relieved of liability if he establishes all of the
following:
(a) The terminal operator has a valid terminal operator's license
issued for the facility from which the motor fuel is withdrawn.
(b) The terminal operator has an unexpired notification certificate
from the supplier as required by the department or the Internal Revenue
Service.
(c) The terminal operator has no reason to believe that any
information on the certificate is false.
(2) In connection with the removal of diesel fuel that is not dyed
and marked in accordance with Internal Revenue Service requirements,
the terminal operator provides a person with a bill of lading, shipping
paper, or similar document indicating that the diesel fuel is dyed and
marked in accordance with Internal Revenue Service requirements.
(B) The terminal operator is severally liable for the tax imposed by
this chapter and measured in accordance with Section 12-28-520(B)
which is not allocable to a licensed supplier and shall remit the tax due
with the annual report required under Section 12-28-1330(E). No tax is
due if the terminal operator can establish by substantial evidence that the
gallons lost were diesel fuel dyed before receipt by that terminal
operator. No collection allowance or deductions are allowed with respect
to payment of this tax. If the gallons lost or unaccounted for exceed five
percent of the gallons removed from that terminal across the rack, a
penalty of one hundred percent of the tax otherwise due must be paid by
the terminal operator with the tax due.
Section 12-28-925. Each supplier and bonded importer who sells
taxable motor fuel shall collect from the purchaser the motor fuel tax
imposed under Section 12-28-310. At the election of an eligible
purchaser evidenced by a written statement from the department as to the
purchaser eligibility status as determined under Section 12-28-930, the
seller may not require a payment of motor fuel tax on transport
truckloads from the purchaser sooner than one business day before the
date on which the tax is required to be remitted by the supplier or
bonded importer under Section 12-28-915. This election is subject to a
condition that the eligible purchaser's remittances of all amounts of tax
due the seller must be paid by electronic funds transfer before the third
preceding day before the date of the remittance by the supplier to the
department. The eligible purchaser's election under this subsection may
be terminated by the seller if the eligible purchaser does not make timely
payments to the seller as required by this section.
Section 12-28-930. Each purchaser who desires to make an election
under Section 12-28-925 shall present evidence to the department that the
applicant was a licensee in good standing under the predecessor motor
fuel statute as to which he remitted tax to the department, or the
applicant meets the financial responsibility and bonding requirements
imposed by this chapter which bond shall conform to the specific
requirements of this section. The department may require a purchaser
who pays the tax to a supplier to file with the department a surety bond
payable to the State, upon which the purchaser is the obligor or other
financial security, in an amount satisfactory to the department. The
department may require that the bond indemnify the department against
uncollectible tax credits claimed by the supplier under Section
12-28-940.
Section 12-28-935. The department may rescind a purchaser's
eligibility and election to defer taxable motor fuel tax remittances after a
hearing and upon a showing of good cause, including failure to make
timely tax deferred payment to a supplier of tax under Section 12-28-930
by sending written notice to all suppliers or publishing notice of the
revocation pursuant to regulations. The department may require further
assurance of the purchaser's financial responsibility, may increase the
bond requirement for that purchaser, or may take other action to ensure
remittance of the taxable motor fuel tax. The department shall follow the
revocation procedures under Section 12-28-1180 in rescinding eligible
purchaser status.
Section 12-28-940. (A) In computing the amount of motor fuel tax
due, the supplier is entitled to a credit against the tax payable in the
amount of tax paid by the supplier that is uncollectible from an eligible
purchaser.
(B) The supplier shall provide notice to the department of a failure to
collect tax within ten days following the earliest date on which the
supplier was entitled to collect the tax from the eligible purchaser under
Section 12-28-925.
(C) The department shall promulgate regulations establishing the
evidence a supplier shall provide to receive the credit.
(D) The credit must be claimed on the first return following the date
of the failure of the eligible purchaser if the payment remains unpaid as
of the filing date of that return or the deduction is disallowed.
(E) The claim for credit must identify the defaulting eligible purchaser
and any tax liability that remains unpaid.
(F) If an eligible purchaser fails to make a timely payment of the
amount of tax due, the supplier's credit is limited to the amount due from
the purchaser, plus any tax that accrues from that purchaser for a period
ending upon the date the supplier receives notice from the department of
revocation of eligible purchaser status.
(G) No additional credit is allowed to a supplier under this section
until the department authorizes the purchaser to make a new election
under Section 12-28-930.
Section 12-28-945. Each licensed tank wagon operator-importer who
is liable for the tax imposed by this chapter on nonexempt motor fuel
imported by a tank wagon as to which tax previously has not been paid
to a supplier, shall remit the taxable motor fuel tax for the preceding
month's import activities with his monthly report of activities. A
licensed tank wagon importer is allowed to retain the tare allowance
provided for in Section 12-28-960(A).
Section 12-28-950. All suppliers and bonded importers required to
remit the motor fuel tax shall remit the motor fuel taxes due by electronic
fund transfer acceptable to the department, if required by regulation. The
transfer or payment must be made on or before the date the tax is
due.
Section 12-28-955. Every supplier and permissive supplier who
properly remits tax under this chapter is allowed to retain one-tenth
percent of the tax imposed by this chapter and collected and remitted by
that supplier in accordance with this chapter to cover the cost of
administration including reporting, audit compliance, dye injection, and
shipping paper preparation.
Section 12-28-960. (A) A tare allowance is allowed to each eligible
purchaser, licensee importer, and supplier who lawfully is engaged in the
distribution of tax-paid motor fuel within this State to offset thermal
shrinkage and measurement differences occurring after removal of the
taxable motor fuel from the terminal. The amount of the tare allowance is
equal to two and sixty-five one-hundredths percent not to exceed two
thousand dollars a month of the amount of the tax imposed by this
chapter and paid by the person, directly or indirectly, subject to the
requirements and limitations set out in subsections (B) and (C).
However, the tare allowance is not applicable more than once to any
taxable motor fuel.
(B) Every eligible purchaser who acquires taxable motor fuel from a
supplier or licensed importer for distribution and use in this State, which
motor fuel was previously subject to the tax imposed by this chapter, is
entitled to the tare allowance provided by subsection (A) by way of
quarterly refund application to the department under regulations
promulgated by and on forms prescribed by the department. The total
amount of tare allowance claimed by the person may not exceed two
thousand dollars for any month.
(C) Every licensed importer and supplier making sales of tax-paid
motor fuel to persons other than eligible purchasers is entitled to the tare
allowance provided by subsection (A) by way of a credit against tax
remittances due to the State payable by the person. The total amount of
tare allowance claimed by the person may not exceed two thousand
dollars for any month.
Section 12-28-965. The tax that a supplier, importer, or fuel vendor
collects on the sale of taxable motor fuel belongs to the State. These
persons shall hold the money in trust for the State and for payment to the
department as provided in this chapter. For a corporation or partnership,
each officer, employee, or member of the employer who is in that
capacity is under a duty to collect the tax and is personally liable for the
tax, penalty, and interest.
Section 12-28-970. (A) A backup tax equal to the tax imposed by
Section 12-28-310 is imposed and must be administered in accordance
with regulations promulgated by the department on the use on the
highways of taxable motor fuel by an end user, including operators of
state and local government vehicles, American Red Cross vehicles, and
buses, and other persons exempted from the full federal highway tax,
unless the person is exempted otherwise under Section 12-28-710(A)(12),
upon the delivery in this State into the fuel supply tank of a highway
vehicle of:
(1) diesel fuel that contains a dye;
(2) taxable motor fuel on which a claim for refund has been
made;
(3) liquid on which tax previously has not been imposed by this
chapter.
(B) The ultimate vendor of taxable motor fuel is jointly and severally
liable for the backup tax imposed by subsection (A) if the ultimate
vendor knows or has reason to know that the motor fuel, as to which tax
imposed by this chapter has not been paid, is or will be consumed in a
nonexempt use.
Section 12-28-975. (A) If an exporter diverts taxable motor fuel
removed from a terminal in this State from an intended destination
outside South Carolina as shown on the terminal-issued shipping papers
to a destination within this State, the exporter, in addition to compliance
with the notification provided for by Section 12-28-780, shall notify and
pay the tax imposed by Section 12-28-310 to the State upon the same
terms and conditions as if the exporter were an occasional importer
licensed under Section 12-28-905(A) without deduction for the
allowances provided by Section 12-28-960. The supplier and exporter
under this subsection by mutual agreement may permit the supplier to
assume the exporter's liability and adjust the exporter's taxes payable to
the supplier.
(B) If an exporter removes from a bulk plant in this State taxable
motor fuel as to which the tax imposed by this chapter previously has
been paid or accrued, the exporter may apply for and the State shall issue
a refund of the tax upon a showing of proof of export satisfactory to the
department in conformity with Section 12-28-720, net of the allowances
provided by Section 12-28-960.
(C) If an unlicensed importer diverts taxable motor fuel from a
destination outside this State to a destination inside this State after having
removed the product from a terminal outside South Carolina, the
importer, in addition to compliance with the notification provided for by
Section 12-28-1525, shall notify the State and shall pay the tax imposed
by this chapter to South Carolina upon the same terms and conditions as
if the unlicensed importer were a licensed occasional importer subject to
Section 12-28-905(A) without deduction for the allowances provided by
Section 12-28-960. An importer who has purchased the product from a
licensed supplier, by mutual agreement with the supplier, may permit the
supplier to assume the importer's liability and adjust the importer's taxes
payable to the supplier.
(D) All licensed importers otherwise shall report and pay tax on
diversions into this State of imported taxable motor fuel under Section
12-28-905(A) or (B) in accordance with the regulations applicable to that
license class. No Section 12-28-960 allowances may be deducted with
respect to diverted shipments. An importer who has purchased the
product from a licensed supplier, by mutual agreement with the supplier,
may permit the supplier to assume the importer's liability and adjust the
importer's taxes payable to the supplier.
(E) If a monthly report is filed or the amount due is remitted later
than the time required by this chapter, the tax remitter shall pay to the
department all of the motor fuel tax the remitter collected from the sale
of taxable motor fuel during the taxable period in addition to penalties
and interest.
(F) If there is a legal diversion from a destination in this State to
another state, Section 12-28-1525 applies, and an unlicensed exporter
diverting the product shall apply for a refund from this State in
conformity with Sections 12-28-710(A)(3) and 12-28-720 less the Section
12-28-960 allowance, except that a supplier may take a credit for
diversions directed by that supplier for his own account, and the exporter,
by mutual agreement with his supplier, may assign his claim to the
supplier for which the supplier may take a credit.
Section 12-28-980. (A) The final report required by Section
12-28-1350 must be accompanied by payment of the final month's
liability except as otherwise provided in this section.
(B) A taxable motor fuel vendor who possessed a license to sell
taxable motor fuel at wholesale or at retail before the effective date of
this chapter who is ineligible to elect eligible purchaser status, or who
otherwise does not apply for or does not receive eligible purchaser status
under Section 12-28-930, in the alternative may elect to make payment of
the tax calculated pursuant to the `Final Report' in Section 12-28-1350 as
provided in this section. The tax must be paid in two equal annual
installments beginning twelve months after the effective date of this
chapter, with no discount or reduced by a fifteen percent discount if paid
in a timely final report.
(C) If a person elects under subsection (B) to defer payment, he is not
eligible to claim eligible purchaser status under Section 12-28-930 for
thirty-six months following the election under subsection (B).
Section 12-28-985. The floorstocks tax report required by Section
12-28-530(A) must be accompanied by payment of the floorstocks tax
calculated in accordance with Section 12-28-530(B). Payment must be
made on or before the due date of that report. The floorstocks tax
imposed on inventory held outside of the bulk transfer system on the
effective date of this chapter reportable under Section 12-28-530(A) is
payable in two equal annual installments beginning twelve months after
the effective date of the act. However, a person may pay the full amount
due with a timely filed return and may take a fifteen percent
discount.
Section 12-28-990. (A) Each person blending untaxed materials,
including blendstocks, additives, and fuel grade ethanol with taxable
motor fuels as to which tax has been paid or accrued shall remit the tax
imposed by this chapter.
(B) A fuel vendor subject to tax under subsection (A) shall remit tax
with the report required under Section 12-28-1390(B).
(C) Any person other than a fuel vendor liable for the tax payable
under subsection (A) shall remit the tax directly to the department within
thirty days of the blending event in accordance with regulations
promulgated by the department.
Section 12-28-995. Subject to gallonage limits and other conditions
established by the department, the department shall provide for the
payment of tax imposed by this chapter by a person importing gasoline
or diesel motor fuel from a bulk plant in another state in a tank wagon if
the destination of that vehicle does not exceed twenty-five miles from the
borders of this State.
Article 11
Licenses
Section 12-28-1100. Each supplier engaged in business in this State as
a supplier first shall obtain a supplier's license. The fee for a supplier's
license is two thousand dollars.
Section 12-28-1105. A person who desires to collect the tax imposed
by this chapter as a supplier and who meets the definition of a permissive
supplier may obtain a permissive supplier's license. Application for or
possession of a permissive supplier's license does not in itself subject the
applicant or licensee to the jurisdiction of this State for a purpose other
than administration and enforcement of this chapter. The fee for a
permissive supplier's license is one hundred dollars.
Section 12-28-1110. Each terminal operator other than a supplier
licensed under Section 12-28-1100 engaged in business in this State as a
terminal operator first shall obtain a terminal operator's license for each
terminal site. The fee for each terminal operator's license is three
hundred dollars.
Section 12-28-1115. The State in its discretion may require an
exporter to obtain an exporter's license first if the exporter exports
products to another state without first paying that destination state's
motor fuel tax to the supplier. The fee for an exporter's license is one
hundred dollars.
Section 12-28-1120. Each person who is not licensed as a supplier
shall obtain a transporter's license before transporting taxable motor fuel
by whatever manner from a point outside this State to a point inside
South Carolina, or from a point inside this State to a point outside South
Carolina, regardless of whether the person is engaged for hire in
interstate commerce or for hire in intrastate commerce. The registration
fee for a transporter's license is fifty dollars.
Section 12-28-1125. (A) Each person who wishes to cause taxable
motor fuel to be delivered into this State on his behalf, for his own
account, or for resale to a purchaser in this State, from another state in a
fuel transport truck or in a pipeline or barge shipment into storage
facilities other than a qualified terminal, shall apply and obtain an
occasional importer's license or a bonded importer's license, at the
discretion of the applicant.
(B) This section does not apply to a person who:
(1) exclusively imports taxable motor fuel which is exempted
because it has been dyed in accordance with Section 12-28-770;
(2) imports nonexempt taxable motor fuels meeting the following
conditions:
(a) The taxable motor fuel is subject to one or more tax
precollection agreements with suppliers as provided under Section
12-28-910.
(b) The taxable motor fuel tax pre-collection by the supplier is
expressly evidenced on the terminal-issued shipping paper as more
specifically provided under Section 12-28-1520.
(C) A person desiring to import taxable motor fuel to a destination in
this State from another specific terminal source state, and who has not
entered into an agreement to prepay this state's taxable motor fuel tax to
the supplier or permissive supplier with respect to the imports, shall
obtain a valid:
(1) occasional importer's license under subsection (A) for the fee of
five hundred dollars; or
(2) bonded importer's license under subsection (A) for the fee of
two thousand dollars subject to the special two million dollar bonding
requirements of Section 12-28-1155(B).
(D) The person described in subsection (C) shall:
(1) obtain an import verification number from the department before
entering South Carolina and no sooner than twenty-four hours before
entering for each separate import into this State;
(2) display the import verification number on the terminal-issued
shipping document required under Section 12-28-1545;
(3) comply with the payment requirements under Sections
12-28-905(A) or (B), whichever is applicable.
(E) The importers' licenses issued pursuant to this section must be
specific to each source of supply state.
Section 12-28-1130. Each person who is an importer of taxable motor
fuel into this State by a tank wagon operating out of or controlling a bulk
plant in another state, if the destination of that tank wagon is within
twenty-five miles of the borders of South Carolina, shall make
application for and obtain a license from the department before engaging
in import activities. However, registration as a tank wagon
operator-importer does not constitute authorization of the persons to
acquire nonexempt motor fuel free of the tax imposed by this chapter at a
terminal either within or outside this State for direct delivery to a
location in South Carolina. A person who possesses a valid importer's
license is eligible as a tank wagon operator-importer without issuance of
a separate license if the importer also operates one or more bulk plants
outside this State. The fee for a tank wagon operator-importer license is
fifty dollars. Operators of tank wagon delivery product into this State
more than twenty-five miles from the border shall apply for an importer's
license under Section 12-28-1125.
Section 12-28-1135. (A) Each person who engages in the business of
selling taxable motor fuel at wholesale or retail or storing or distributing
taxable motor fuel for resale within this State first shall obtain a fuel
vendor license which is operative for all locations controlled or operated
by that licensee in this State or in any other state from which the person
removes fuel for delivery and use in South Carolina.
(B) Each fuel vendor shall maintain detailed records of all purchases
and sales for no less than three years.
(C) All fuel vendor records must be maintained in English and Arabic
numerals or acceptable to electronic formats.
(D) Each fuel vendor shall make an annual report of taxable gallons
sold at retail by county in accordance with Section 12-28-720.
(E) In its discretion, the department may exempt from subsection (A)
persons who possess a valid supplier, terminal operator, carrier, importer,
tank wagon operator, or exporter license. The fee for the full vendor
license is fifty dollars.
Section 12-28-1140. Each application for a license under this chapter
must be made upon a form prepared and furnished by the department. It
must be subscribed to by the applicant and may contain the information
the department reasonably may require for the administration of this
chapter, including the applicant's federal identification number and, with
respect to the applicant for an exporter's license, a copy of the
applicant's license to purchaser or handle taxable motor fuel tax-free in
the specified destination state for which the export license is to be
issued.
Section 12-28-1145. The department shall investigate each applicant
for a license under this chapter. No license may be issued if the
department determines that one or more of the following exists:
(1) The application is not filed in good faith.
(2) The applicant is not the real party in interest.
(3) The license of the real party in interest is revoked for cause.
(4) Other reasonable cause for nonissuance exists.
(5) With respect to an exporter's license the applicant is not licensed
in the intended specific state of destination.
(6) The applicant has a prior conviction for motor fuel tax
evasion.
Section 12-28-1150. Applicants, including corporate officers, partners,
and individuals, for a license issued by the commissioner, may be
required to submit their fingerprints to the department at the time of
applying. Officers of publicly-held corporations and their subsidiaries are
exempt from this fingerprinting provision. Persons, other than applicants
for an importer's license, who possessed licenses issued under a
predecessor statute continuously for three years before the effective date
of this chapter also are exempt from this provision. Fingerprints required
by this section must be submitted on forms prescribed by the department.
The department may forward to the Federal Bureau of Investigation or
any other agency for processing all fingerprints submitted by license
applicants. The receiving agency shall issue its findings to the
department. The license application fee must be used to pay the cost of
the investigation. The department or another state agency may maintain
a file of fingerprints.
Section 12-28-1155. (A) Except as otherwise provided in this section,
concurrently with the filing of an application for a license under this
chapter, the department shall require the applicant to file with the
department a surety bond or cash deposit:
(1) in an amount determined by the director of not less than two
thousand dollars or not more than a three-month tax liability for the
applicant as estimated by the department;
(2) conditioned upon the keeping of records and the making of full
and complete reports and payments as required by this chapter.
(B) Suppliers and bonded importers shall post a bond of not less than
two million dollars, except that with respect to a person registered under
the Internal Revenue Section 4101 as a taxable fuel registrant, the bond
may be reduced to a one million dollar minimum. An applicant
alternatively may show proof of financial responsibility in lieu of posting
of bond. Proof of five million dollars net worth constitutes evidence of
financial responsibility in the absence of circumstances indicating the
department is otherwise at risk with respect to collection of its taxes from
the applicant.
(C) If the applicant files a bond, the bond must:
(1) be with a surety company approved by the department which
may be an affiliate in the business of assuring the obligations;
(2) name the applicant as the principal and the State as the
obliged;
(3) be on forms prescribed by the department.
(D) Fuel vendors defined in Section 12-28-1135, other than persons
required to be licensed under provisions other than in that section, are
exempt from the bonding requirements of this section.
Section 12-28-1160. At the department's reasonable discretion, it may
require a licensee or an applicant to furnish current verified, financial
statements. The department may make independent inquiry into the
financial condition of the applicant and is not required to accept as
accurate financial statements which have not been certified or
independently audited. If the department determines that a licensee's
financial condition warrants an increase in the bond or cash deposit, the
department may require the licensee to furnish an increased bond or cash
deposit.
Section 12-28-1165. (A) The department may require a licensee to
file a new bond with a satisfactory surety in the same form and amount
if:
(1) liability upon the previous bond is discharged or reduced by the
judgment rendered, payment made, or otherwise disposed of;
(2) in the opinion of the department, any surety on the previous
bond becomes unsatisfactory. If the new bond is unsatisfactory, the
department shall cancel the license. If the new bond is furnished
satisfactorily, the department shall release in writing the surety on the
previous bond from liability accruing after the effective date of the new
bond.
(B) If a licensee has a cash deposit with the department and the
deposit is reduced by a judgment rendered, payment made, or otherwise
disposed of, the director may require the licensee to make a new deposit
equal to the amount of the reduction.
Section 12-28-1170. (A) If the department reasonably determines that
the amount of the existing bond or cash deposit is insufficient to ensure
payment to the State of the tax and any penalty and interest for which the
licensee is or may become liable, upon written demand of the
department, the licensee shall file a new bond or increase the cash
deposit. The department shall allow the licensee at least fifteen days to
secure the increased bond or cash deposit.
(B) The new bond or cash deposit must meet the requirements set
forth in this chapter.
(C) If the new bond or cash deposit required under this section is
unsatisfactory, the department shall cancel the licensee's license
certificate.
Section 12-28-1175. (A) Sixty days after making a written request for
release to the department, the surety of a bond furnished by a licensee is
released from any liability to the State accruing on the bond after the
sixty days. The release does not affect any liability accruing before the
expiration of the sixty days.
(B) The department promptly shall notify the licensee furnishing the
bond that a release has been requested. Unless the licensee obtains a new
bond that meets the requirements of this chapter and files with the
department the new bond within sixty days, the department shall cancel
the license.
(C) Sixty days after making a written request for release to the
department, the cash deposit provided by a licensee is canceled as
security for any obligation accruing after expiration of the sixty days.
However, the department may retain all or part of the cash deposit for up
to three years and one day as security for obligations accruing before the
effective date of the cancellation. Any part of the deposit that is not
retained by the department must be released to the licensee. Before the
expiration of the sixty-day period, the licensee shall provide the
department with a bond that satisfies the requirements of this chapter or
the department shall cancel the license.
(D) A licensee who has filed a bond or other security under this
chapter is entitled, on request, to have the department return, refund, or
release the bond or security if, in the judgment of the department, the
licensee continuously has complied with this chapter for the previous
three consecutive years. However, if the department determines that the
revenues of the State would be jeopardized by the return, refund, or
release of bond or security, the department may elect to retain the bond
or security, or having released it, may reimpose a requirement for bond
or security to protect the revenues of this State. The decision of the
department to not release a bond or security may be reviewed, after
application by the licensee, pursuant to the Administrative Procedures
Act.
Section 12-28-1180. (A) Before being denied a license, the
department shall grant the applicant a notice of the proposed denial,
including the reasons for its decision. After having the opportunity to
cure defects in the application, if the applicant does not agree with the
decision, a hearing on the proposed denial is available to the applicant
pursuant to the Administrative Procedures Act.
(B) The department may suspend or revoke a license for failure to
comply with this chapter after at least ten days' notice to the licensee and
a hearing, should such be requested, pursuant to the Administrative
Procedures Act.
Section 12-28-1185. If the applicant and bond are approved, the
department shall issue a license and as many copies as the licensee has
places of business for which a license is required.
Section 12-28-1190. A license is valid until suspended, revoked for
cause, or canceled.
Section 12-28-1195. No license is transferable to another person or to
another place of business. For purposes of this article, a transfer means
transfer of a majority interest in a business association, other than a
publicly-held association, including corporation, out partnerships, trusts,
joint ventures, and any other business associations, to another person. A
substantial change in ownership of a business association other than a
publicly-held business association, must be reported to the department
under regulations promulgated by the department.
Section 12-28-1196. Each license must be preserved and
conspicuously displayed at the place of business for which it is issued.
The department may waive this requirement for any class of licensee in
its discretion.
Section 12-28-1197. Upon the discontinuance of the business or
relocation, the license issued for the location must be surrendered
immediately to the department.
Section 12-28-1199. Whenever a person licensed to do business under
this chapter discontinues, sells, or transfers the business, the licensee
immediately shall notify the department in writing of the discontinuance,
sale, or transfer. The notice must give the date of discontinuance, sale,
or transfer and for the sale or transfer of the business, the name and
address of the purchaser or transferee. The licensee is liable for all taxes,
interest, and penalties that accrue or may be owing and any criminal
liability for misuse of the license that occurs before issuance of the
notice.
Article 13
Reports
Section 12-28-1300. (A) For the purpose of determining the amount
of motor fuel tax due, every supplier shall file with the department, on
forms prescribed and furnished by the department, a verified statement by
the supplier. The department may require the reporting of information
reasonably necessary to determine the amount of motor fuel tax due.
(B) The reports required by this section must be filed with respect to
information for the preceding calendar month before the twenty-second
day of the current month.
(C) The supplier report required by this section must include the
following information, with respect to billed gallons of taxable motor
fuel, for all products in the aggregate, and the supplier shall identify if
the billed gallon is net or gross:
(1) all shipments of taxable motor fuel removed from a terminal in
this State as to which the tax imposed by this chapter previously was
paid or accrued for direct delivery outside this State by the exporter;
(2) removal of gallons of diesel fuel or heating oil from terminals
in this State by the reporting supplier, tax exempt, as to which dye has
been added in accordance with Sections 12-28-710(A)(9) and
12-28-785;
(3) removal of gallons of motor fuel from terminals in this State
by the reporting supplier, tax exempt, for export from this State by that
supplier and as to which the proper motor fuel tax for that other
destination state has been collected or accrued by the reporting supplier at
the time of removal from the terminal, sorted by state of destination;
(4) removal of gallons of motor fuel from terminals in this State
by the reporting supplier, destination state tax exempt, for export by the
persons, sorted by state of destination under claim of destination state tax
exemption for an exempt use recognized by the department under Section
12-28-710(A)(1)(c);
(5) removal of gallons of motor fuel from terminals in this State
by the reporting supplier, tax exempt, for sale to exporters, for export by
the persons, and as to which the proper motor fuel tax for that other
destination state has been collected or accrued by the reporting supplier at
the time of removal from the terminal, sorted by state of destination;
(6) removal of gallons of motor fuel from terminals within this
State for sale by the reporting supplier directly to the United States
Government and its agencies or instrumentalities, or United States
military posts;
(7) removal of gallons of motor fuel from terminals within this
State for sale by the reporting supplier directly to end users other than
the federal government, its agencies and instrumentalities, and United
States military posts, for any other exempt use for which the end users
properly have assigned refund claims to the ultimate vendor and each
distributor in the chain including the reporting supplier;
(8) total removals in this State;
(9) removal of gallons of motor fuel from a terminal in another
state by the reporting supplier, for sale to a licensed importer, tax
exempt, for import into this State by that licensed importer.
(10) removal of gallons of motor fuel from a terminal in another
state by the reporting supplier for import other than by bulk transfer by
that supplier into this State, or for sale by the reporting supplier to a
person for import into this State by that person, and in either case, as to
which this state's tax was accrued by the reporting supplier at the time of
removal from the out-of-state terminal;
(11) removal of gallons of diesel fuel or heating oil from a terminal
in another state by the reporting supplier, for import or for sale for
import into this State, as to which dye has been added in accordance with
Sections 12-28-710(A)(9) and 12-28-785;
(12) total removals from out-of-state terminals with this State as the
state of destination;
(13) corrections made by the supplier pursuant to Section 12-28-795
for changes in destination state which affect the supplier's or his
customer's tax liability to this State;
(14) gallons removed by the supplier from a terminal within or
without this State and sold to another distributor for resale to an end user
for an exempt purpose as to which a refund claim has been assigned by
all parties to the supplier;
(15) other information which the department in its discretion
determines is reasonably required to determine tax liability under this
chapter.
(D) Every licensed supplier or permissive supplier separately shall
disclose and identify in a written statement to the department with the
supplier or permissive supplier report any removal and sale from the bulk
transfer/terminal system in another state by that supplier to a person other
than a licensed supplier, permissive supplier, or importer of gallons of
taxable motor fuel, other than diesel fuel dyed in accordance with
Sections 12-28-710(A)(9) and 12-28-785(1) which gallons are destined
for this State, as shown by the terminal-issued shipping paper, and as to
which gallons the tax imposed by this chapter has not been collected or
accrued by the supplier upon removal. A person who knowingly violates
or knowingly aids or abets another to violate this subdivision is guilty of
a misdemeanor and, upon conviction, must be fined not more than two
hundred dollars or imprisoned not more than thirty days.
(E) Each supplier separately shall identify each sale of K-1 kerosene,
other than dyed diesel fuel, sold free of tax in accordance with reporting
requirements established by the department.
Section 12-28-1305. (A) Each licensed occasional importer shall file
with the department monthly a verified sworn statement of operations
within this State including:
(1) taxable gallons tax prepaid to a supplier upon removal from an
out-of-state terminal;
(2) taxable gallons subject to the three-day payment rule of Section
12-28-905(A) sorted by source state, by supplier, by terminal or by bulk
plant location;
(3) other information with respect to the source and means of
transportation of nonexempt taxable motor fuel as the department in its
discretion may require on forms prescribed and furnished by the
department. However, the department may waive any portion or all of
the reporting requirements if it determines that border states have adopted
and implemented reciprocal terminal report requirements adequate to
assure the department that it receives complete information in respect of
motor fuel removed by and on behalf of suppliers from terminals in
border states which is destined for this State.
(B) A person who knowingly violates or knowingly aids and abets
another to violate this section is guilty of a misdemeanor and, upon
conviction, must be fined not more than two hundred dollars or
imprisoned not more than thirty days.
Section 12-28-1310. (A) Each licensed bonded importer shall file
with the department monthly a verified sworn statement of operations
within this State including:
(1) taxable gallons tax prepaid to a supplier upon removal from an
out-of-state terminal;
(2) taxable gallons subject to tax remittance by the bonded importer
according to Section 12-28-905(B) sorted by source state, supplier,
terminal, or by bulk plant;
(3) other information with respect to the source and means of
transportation of nonexempt taxable motor fuel as the department in its
discretion may require on forms it prescribes and furnishes.
(B) The department may waive any portion or all of the reporting
requirements if it determines that border states have adopted and
implemented reciprocal terminal report requirements adequate to assure
the department that it receives complete information in respect of motor
fuel removed by and on behalf of suppliers from terminals in border
states which is destined for this State.
(C) A person who knowingly violates or knowingly aids and abets
another to violate this section is guilty of a misdemeanor and, upon
conviction, must be fined not more than two hundred dollars or
imprisoned not more than thirty days.
Section 12-28-1320. Each licensed tank importer shall file with the
department monthly a verified sworn statement of operations within this
State plus other information in respect of the source and means of
transportation of nonexempt taxable motor fuel as the department in its
discretion may require on forms it prescribes and furnishes. A person
who knowingly violates or knowingly aids and abets another to violate
this section is guilty of a misdemeanor and, upon conviction, must be
fined not more than two hundred dollars or imprisoned not more than
thirty days.
Section 12-28-1330. (A) A person operating a terminal in this State
shall file with the department monthly a sworn statement of operations
within South Carolina for each terminal within this State including the
information set out in subsection (B) on forms prescribed by the
department. The department may require the reporting of information it
considers reasonably necessary in addition to that required under
subsection (B).
(B) The monthly terminal report required by this section must include
the following information for each terminal location in this State:
(1) terminal code assigned by the Internal Revenue Service; total
inventory at the terminal operated by the terminal operator;
(2) detail schedules of receipts by shipment including:
(a) carrier name or alpha code;
(b) carrier FEIN;
(c) mode of transportation;
(d) date received;
(e) document number;
(f) net gallons received;
(g) product type;
(3) detail schedules of removals by shipment including:
(a) carrier name or alpha code;
(b) carrier FEIN;
(c) mode of transportation;
(d) destination state;
(e) supplier responsible for reporter removal;
(f) supplier FEIN;
(g) date removed from terminal;
(h) document number;
(i) net gallons;
(j) gross gallons.
(C) If the Internal Revenue Service provides a common system of
assigning to carriers alpha-numeric code in lieu of names, this date is
required in lieu of carrier names.
(D) For purposes of reporting and determining tax liability under this
chapter, every licensee shall maintain inventory records as required by
the department.
(E) Each person operating a terminal in this State shall file an annual
report for each terminal within South Carolina on forms provided by the
department. The report must be filed for each calendar year before
February twenty-sixth the following year. This report must include the
following data:
(1) net amount of monthly temperature adjusted, net gallons, gains
or losses;
(2) total net gallons removed from the terminal in bulk and across
the rack during the calendar year;
(3) total net gallons removed across the terminal rack during the
calendar year and other information as the department considers
reasonably necessary to determine the tax liability of the terminal
operator under this chapter;
(4) amount of tax due calculated pursuant to Section
12-28-520(B).
Section 12-28-1340. If the source state does not require a terminal
report which provides data substantially similar to that required by
Section 12-28-1330, a terminal operator subject to the police power of
this State, and who operates a terminal outside that state, shall provide a
report of gallons removed as to which the operator issued a shipping
paper indicating South Carolina as the destination state consistent with
the information required under Section 12-28-1330. This section does
not apply if substantially similar data is readily available to this State
from a federal terminal report or from the source state.
Section 12-28-1350. (A) Every licensee, upon the discontinuance,
sale, or transfer of the business or upon the cancellation, revocation, or
termination by law of a license under Section 12-28-1195 or 12-28-1199
or as otherwise provided, within thirty days, shall make a report as
required under this chapter marked `final report' and shall pay all motor
fuel taxes and penalties that may be due the State except as otherwise
provided by law. The payment must be made to the department in
accordance with Section 12-28-980.
(B) For purposes of this section, a person who was licensed to remit
motor fuel taxes by this State before the effective date of this chapter and
who is not licensed as a supplier under this chapter is deemed to have the
license terminated under this section as of the effective date.
(C) A former licensee must be given the opportunity to apply for
eligible purchaser status as provided in Sections 12-28-925 and
12-28-930 before the effective date of this chapter. If the determination
is not complete before the effective date, collection of tax shown on the
final report of the former license must be delayed until such
determination is complete. However, the final report is due not later than
thirty days after a denial of eligible purchaser status under Section
12-28-980 becomes final.
Section 12-28-1360. (A) A person licensed as an exporter shall file
monthly reports with the department on forms prescribed and furnished
by the department concerning the amount of taxable motor fuel exported
from this State.
(B) The report must contain the following information with respect to
motor fuel other than diesel fuel dyed in accordance with the Internal
Revenue Code:
(1) all shipments of taxable motor fuel removed from a terminal in
this State as to which the tax imposed by this chapter previously was
paid or accrued for direct delivery outside of this State by the
exporter;
(2) all shipments of taxable motor fuel acquired free of this state's
motor fuel tax at a terminal in this State for direct delivery outside of
South Carolina but as to which the destination state's motor fuel tax was
paid or accrued to the supplier at the time of removal from the
terminal;
(3) the gallons delivered to taxing jurisdictions outside this State out
of bulk plant storage and whether by transport truck or tank wagon;
(4) the name and federal employer identification number of the
person receiving the exported taxable motor fuel from the exporter;
(5) the date of the shipments;
(6) the carrier name for alpha code and carrier FEIN.
(C) The department in addition may require the reporting of other
information it considers reasonably necessary to the enforcement of this
chapter.
(D) The department may waive this reporting requirement if it finds
the reports unnecessary to the administration of this chapter.
Section 12-28-1370. (A) A person licensed as a transporter in this
State shall file monthly reports with the department on forms prescribed
and furnished by the department concerning the amount of taxable motor
fuel transported by transport truck across the borders of this State.
(B) If a transporter fails to make the reports required by this section,
the person is subject to a civil penalty of one thousand dollars for each
violation, as reasonably determined by the department.
(C) The reports required by this section are for information purposes
only and the director may waive the filing of the reports if the reports are
unnecessary for the proper administration of this chapter.
(D) This section ceases to be effective if a substantially similar data is
available from federal government sources including a federal terminal
report.
Section 12-28-1380. (A) A person purchasing gallons tax-exempt
acquired pursuant to Section 12-28-740(1) for resale to government
entities exempted under Section 12-28-710 shall file a report.
(B) The report must contain:
(1) total volume of net gallons acquired from the authorized supplier
tax-exempt;
(2) identification of authorized supplier;
(3) a detailed listing of the bulk deliveries to each tax-exempt
person segregated by authorization code;
(4) date of deliveries;
(5) volume delivered;
(6) amount of excess tax-exempt gallons sold over purchases or
excess of tax-exempt purchases over sales;
(7) the amount of penalty at ten percent of the amount by which
excess of tax-exempt purchases over sales exceeds five percent of
tax-exempt purchases;
(8) other information the department may require;
(9) sworn statement by the vendor as to the accuracy of the
information contained in the report.
Section 12-28-1390. (A) A fuel vendor shall file an annual report of
total gallons sold at retail through a retail outlet accessible to the general
public by that vendor by county before January twenty-first annually for
the preceding calendar year.
(B) A fuel vendor shall make and file quarterly reports on the last day
of the month following the close of each calendar quarter of sales of K-1
kerosene, or other untaxed blendstocks, other than dyed diesel fuel, in
accordance with regulations promulgated by the department. The
department may waive this report requirement if it becomes unnecessary
to the administration of this chapter. Persons who are required to identify
separately and schedule sales and transfers of undyed K-1 kerosene in
reports otherwise required by this article are exempt from this
requirement.
(C) A fuel vendor making sales of K-1 kerosene or other untaxed
blendstocks for blending with taxable diesel fuel or gasoline or which
sells untaxed K-1 kerosene or other untaxed motor fuel or blendstocks
for use as taxable motor fuel shall remit monthly a report on or before
the last day of the following month and remit with the report any tax
payable pursuant to this section or Section 12-28-990.
(D) A fuel vendor shall retain for three years all purchase invoices for
taxable motor fuel which clearly must designate the amount of tax paid
to this State as a separate line item. This line item also must be
described generally as a `South Carolina Motor Fuel Tax'. In the
absence of invoices with the disclosures, the fuel vendor is jointly liable
for the state tax imposed by this chapter and the department has authority
to proceed against the fuel vendor to collect the tax.
Article 15
Shipping Requirements
Section 12-28-1500. (A) A person operating a refinery, terminal, or
bulk plant in this State shall prepare and provide to the driver of every
fuel transportation vehicle receiving taxable motor fuel into the vehicle
storage tank at the facility an automated machine-printed shipping
document setting out on its face:
(1) identification by address of the terminal or bulk plant from
which the motor fuel was removed;
(2) date the motor fuel was removed;
(3) amount of motor fuel removed, indicating actual gallons and net
gallons;
(4) state of destination as represented to the terminal operator by the
transporter, the shipper or the shipper's agent;
(5) other information reasonably required by the department for the
enforcement of this chapter.
(B) A terminal operator manually may prepare shipping papers as a
result of extraordinary unforeseen circumstances, including acts of God,
which temporarily interfere with the terminal operator's ability to issue
automated machine-generated shipping papers. However, before
manually preparing the papers, the terminal operator shall provide
telephonic notice to the department and obtain a service interruption
authorization number which the operator's employees shall add to the
manually prepared papers before removal of each affected transport load
from the terminal. The service interruption authorization number is valid
for use by the terminal operator not more than twenty-four hours. If the
interruption has not been cured within the twenty-four hour period,
additional notices to the department are required and interruption
authorization numbers may be issued upon explanation by the terminal
operator satisfactory to the department.
(C) An operator of a bulk plant in this State delivering taxable motor
fuel into a tank wagon or subsequent delivery to an end consumer in this
State is exempt from this section.
(D) A terminal operator may load motor or diesel fuel, of which a
portion is destined for sale or use in this State and a portion is destined
for sale or use in another state. However, the split loads removed must
be documented by the terminal operator by issuing shipping papers
designating the state of destination for each portion of the fuel.
(E) Each terminal operator shall post a conspicuous notice proximally
located to the point of receipt of shipping papers by transport truck
operators. The notice must describe in clear and concise terms the duties
of the transport operator and retail dealer under Section 12-28-1505. The
department by regulation may establish the language, type, style, and
format of the notice.
(F) A person who knowingly violates or knowingly aids and abets
another to violate this section is guilty of a misdemeanor and, upon
conviction, must be fined not more than ten thousand dollars or
imprisoned not more than three years, or both.
Section 12-28-1505. (A) A person transporting taxable motor fuel in
a fuel transportation vehicle upon the public highways of this State
shall:
(1) carry on board the shipping document issued by the terminal
operator or the bulk plant operator of the facility where the taxable motor
fuel was obtained, within or outside this State. The shipping paper must
set out on its face the state of destination of the taxable motor fuel
transported in the vehicle as represented to the terminal operator at the
time the fuel transportation vehicle was loaded or as otherwise provided
in item (3);
(2) show and permit duplication of the shipping document by a law
enforcement officer or representative of the department, upon request,
when transporting, holding, or off-loading the motor fuel described in the
shipping document;
(3) deliver taxable motor fuel described in the shipping document to
a point in the destination state shown on the face of the document unless
the person or his agent does all of the following:
(a) notifies the department or its nominee, before the earlier of
removal from the state in which the shipment originated or the initiation
of delivery, that the person received instructions after the shipping
document was issued to deliver the motor fuel to a different destination
state;
(b) receives from the Secretary of State a verification number
authorizing the diversion;
(c) writes on the shipping document the change in destination state
and the confirmation number for the diversion;
(4) provide a copy of the shipping document to the distributor or
other person who controls the facility to which the motor fuel is
delivered;
(5) meets other conditions the department may reasonably require
for the enforcement of this chapter.
(B) The department shall provide by regulation for handwritten
designations and procedures alternative for operators of tank wagons that
have received taxable motor fuel at a bulk plant for delivery within or
outside this State. A person in violation of this section is guilty of a
misdemeanor and, upon conviction, must be fined not more than two
hundred dollars or imprisoned not more than thirty days.
Section 12-28-1510. Every person transporting taxable motor fuel in
vehicles upon the public highways of this State shall provide the original
or a copy of the terminal-issued shipping document accompanying the
shipment to the operator of the retail outlet, bulk plant end user bulk
storage facility to which delivery of the shipment was made. A person
who knowingly violates or knowingly aids and abets another to violate
this section is guilty of a misdemeanor and, upon conviction, must be
fined not more than two hundred dollars or imprisoned not more than
thirty days.
Section 12-28-1515. An operator of a taxable motor fuel retail outlet,
bulk plant, or bulk end user bulk storage facility shall receive, examine,
and retain for thirty days at the delivery location the terminal-issued
shipping document received from the transporter for every shipment of
taxable motor fuel that is delivered to that location with record retention
of the shipping paper of three years required offsite. A person who
knowingly violates or knowingly aids and abets another to violate this
section is guilty of a misdemeanor and, upon conviction, must be fined
not more than two hundred dollars or imprisoned not more than thirty
days.
Section 12-28-1520. No retail dealer, bulk plant operator, wholesale
distributor, or bulk end user knowingly may accept delivery of taxable
motor fuel into bulk storage facilities in this State if that delivery is not
accompanied by a shipping paper issued by the terminal operator, or bulk
plant operator as provided by regulations, that sets out on its face this
State as the state of destination of the taxable motor fuel or a diversion
verification number pursuant to Section 12-28-1525, and other
information required under Sections 12-28-1540 and 12-28-1545. A
person who knowingly violates or knowingly aids and abets another to
violate this section is guilty of a misdemeanor and, upon conviction, must
be fined not more than two hundred dollars or imprisoned not more than
thirty days.
Section 12-28-1525. (A) The department shall provide for relief in a
case where a shipment of taxable motor fuel legitimately is diverted from
the represented destination state after the shipping paper has been issued
by the terminal operator or where the terminal operator failed to cause
proper information to be printed on the shipping paper.
(B) These relief provisions must include a provision requiring that the
shipper, the transporter, or an agent of either provide notification before
the diversion or correction to the department if an intended diversion or
correction is to occur, and that a verification number be assigned and
manually added to the face of the terminal-issued shipping paper.
(C) The relief provisions must establish a protest procedure so a
person found to be in violation of Section 12-28-1500 or 12-28-1515
may establish a defense to a civil penalty imposed under this chapter for
violation of the section upon establishing substantial evidence satisfactory
to the department that the violation was the result of an honest error
made in the context of a good faith and reasonable effort to properly
account for and report fuel shipments and taxes.
(D) The department shall make reasonable efforts to coordinate with
neighboring states and the Federation of Tax Administrators for the
operation of a common telephonic diversion verification number
assignment system including its shared burdens.
Section 12-28-1530. The supplier and the terminal operator may rely
for all purposes of this chapter on the representation by the transporter,
the shipper, or the shipper's agent as the shipper's intended state of
destination and tax-exempt use. The shipper, the importer, the
transporter, the shipper's agent, and a purchaser, not the supplier or
terminal operator, are jointly liable for any tax otherwise due to the State
as a result of a diversion of the taxable motor fuel from the represented
destination state. A terminal operator may rely on the representation of a
licensed supplier with respect to the supplier's obligation to collect tax
and the related shipping paper representation to be shown on the shipping
paper as provided by Section 12-28-1540(A).
Section 12-28-1535. (A) Except as expressly provided in subsection
(B), no person may sell, use, deliver, or store in this State, or import for
sale, use, delivery, or storage in this State, taxable motor fuel as to which
the tax imposed by Section 12-28-310 previously has not been paid to or
accrued by a licensed supplier or permissive supplier at the time of
removal from a terminal or a license importer, if all the conditions of
Section 12-28-1545 applicable to lawful import by the importer have
been met.
(B) The following are exceptions to subsection (A):
(1) a supplier with respect to taxable motor fuel held within the bulk
transfer/terminal system in this State which was manufactured in South
Carolina or imported into this State in a bulk transfer;
(2) an end user with respect to taxable motor fuel placed in that
person's vehicle supply tank outside of this State;
(3) any person with respect to diesel fuel dyed in accordance with
Section 12-28-770;
(4) taxable motor fuel in the process of exportation by a licensed
exporter in accordance with the shipping papers required by Section
12-28-1505 as to which the destination state tax has been paid or accrued
to the supplier and a statement meeting the requirements of Section
12-28-1540(A)(2) is shown on the shipping papers;
(5) gasoline used in aircraft;
(6) fuel in possession of an end user as to which a refund has been
issued;
(7) federal government exempt fuel under Section
12-28-710(A)(6);
(8) a licensed importer who has met the conditions of Section
12-28-1545.
(C) A person who violates this section is guilty of a misdemeanor
and, upon conviction, must be fined not more than two hundred dollars
or imprisoned not more than thirty days.
Section 12-28-1540. (A) Except as provided in subsections (C) and
(D), no person may operate a transport truck that is engaged in the
shipment of taxable motor fuel on the public highways of this State
without having on board a terminal-issued shipping paper bearing, in
addition to the requirements of Section 12-28-1505, a notation indicating,
with respect to: (1) diesel fuel acquired under claim of exempt use, a
statement indicating the fuel is `DYED DIESEL FUEL, NONTAXABLE
USE ONLY, PENALTY FOR TAXABLE USE' for the load or the
appropriate portion of the load;
(2) any other taxable motor fuel, a notation indicating: `(supplier
name) responsible (state name) motor fuel tax' or any other annotation
acceptable to the department which otherwise indicates that the tax
imposed by this chapter, or by the destination state, has been paid to the
supplier with respect to the entire load or the appropriate portion of
it.
(B) A person is in violation of subsection (A) upon boarding the
vehicle with a shipping paper which does not meet the requirements set
forth in this section.
(C) A licensed importer or a transporter acting in his behalf is exempt
from subsection (A)(2) if Section 12-28-1545 is otherwise applicable.
However, no exemption from this section is effective with respect to
shipments sourced to a state which has adopted reciprocal legislation as
recognized by the department.
(D) The department in its discretion may provide an advance
notification procedure with respect to documentation for imported motor
fuel as to which the importer is unable to obtain terminal-issued shipping
papers which comply with this section.
(E) A person who knowingly violates any part of this section is guilty
of a misdemeanor and, upon conviction, must be fined not more than two
hundred dollars or imprisoned not more than thirty days.
(F) The department, its appointee, or its representative may seize,
confiscate, and dispose of motor fuel which is not accompanied by a
required shipping paper.
Section 12-28-1545. (A) If a licensed importer acquires taxable motor
fuel destined for this State which has neither been dyed in accordance
with the Internal Revenue Code and the regulations issued under it, nor
tax paid to or accrued by the supplier at the time of removal from the
out-of-state terminal, a licensed importer and transporter operating on his
behalf shall meet all of the following conditions before entering motor
fuel onto the highways of this State by loaded transport truck:
(1) The importer or the transporter obtains an import verification
number from the department not sooner than twenty-four hours before
entering this State.
(2) The import verification number is set out prominently and
indelibly on the face of each copy of the terminal-issued shipping paper
carried on board the transport truck.
(3) The terminal origin and the importer's name and address also are
set out prominently on the face of each copy of the terminal-issued
shipping paper.
(4) The terminal-issued shipping paper data otherwise required by
this chapter are present; and
(5) All tax imposed by this chapter with respect to previously
requested import verification number activity on the account of the
importer or the transporter are remitted timely.
(B) A person who knowingly violates or knowingly aids and abets
another to violate this section is guilty of a misdemeanor and, upon
conviction, must be fined not more than ten thousand dollars or
imprisoned not more than three years, or both.
(C) The department, its appointee, or its representative may seize,
confiscate, and dispose of motor fuel which is not accompanied by a
required shipping paper.
Section 12-28-1550. (A) No person may export taxable motor fuel
from this State unless that person has obtained an exporter's license or a
supplier's license or has paid the applicable destination state motor fuel
tax to the supplier and can demonstrate proof of exporting in the form of
a destination state bill of lading.
(B) A person who negligently violates this section is subject to a five
hundred dollar civil penalty for each violation.
(C) A person who knowingly violates or knowingly aids and abets
another to violate this section is guilty of a misdemeanor and, upon
conviction, must be fined not more than ten thousand dollars or
imprisoned not more than three years, or both.
(D) An end user who exports fuel in a vehicle fuel supply tank
incident to interstate transportation is exempt from this section.
Section 12-28-1555. (A) No person may operate or maintain a motor
vehicle on a public highway in this State with taxable motor fuel
contained in the fuel supply tank for the motor vehicle that contains dye
as provided under Section 12-28-770.
(B) This section does not apply to:
(1) persons operating motor vehicles who have received fuel into
their fuel tanks outside of this State in a jurisdiction that permits
introduction of dyed taxable motor fuel of that color and type into the
motor fuel tank of highway vehicles; or
(2) users of dyed fuel on the highway which are lawful under the
Internal Revenue Code and regulations including state and local
government vehicles and buses unless otherwise prohibited by this
chapter.
(C) A person who negligently violates this section is subject to a five
hundred dollar civil penalty.
(D) A person who knowingly violates or knowingly aids and abets
another to violate this section is guilty of a misdemeanor and, upon
conviction, must be fined not more than ten thousand dollars or
imprisoned not more than three years, or both.
Section 12-28-1560. (A) No person may engage in a business activity
in this State as to which a license is required by Article 11 of this chapter
unless the person first obtains the license.
(B) A person who negligently violates this section is guilty of a
misdemeanor and, upon conviction, must be fined not more than two
hundred dollars and imprisoned not more than thirty days, or both. The
violator also is subject to a one thousand dollar civil penalty.
(C) A person who knowingly violates or knowingly aids and abets
another to violate this section is guilty of a misdemeanor and, upon
conviction, must be fined not more than ten thousand dollars or
imprisoned not more than three years, or both.
Section 12-28-1565. (A) No person may sell or purchase a product
for use in the supply tank of a motor vehicle for general highway use
that does not meet ASTM standards as published in the annual Book of
Standards and its supplements unless amended or modified by the
department.
(B) The transporter and the transporter's agent and customer have the
exclusive duty to dispose of any product in violation of this section in the
manner provided by federal and state law.
(C) A person who knowingly violates or knowingly aids and abets
another to violate this section is guilty of a misdemeanor and, upon
conviction, must be fined not more than ten thousand dollars or
imprisoned not more than three years, or both.
Section 12-28-1570. (A) No terminal operator may imprint, and no
supplier may knowingly permit a terminal operator to imprint on his
behalf, a statement on a shipping paper relating to motor fuel to be
delivered to this State or to a state having substantially the same shipping
paper legending requirements with respect to:
(1) a supplier's responsibility or liability for payment of the tax
imposed by this chapter;
(2) the tax-paid or tax-collected status of a taxable motor fuel,
unless the supplier or supplier's representative first provides the terminal
operator with a representation or direction to make the statement on
behalf of the supplier.
(B) A terminal operator who negligently imprints a statement in
violation of this section is subject to a civil penalty of twenty dollars for
each violation.
(C) A terminal operator who knowingly imprints a statement in
violation of this section is guilty of a misdemeanor and, upon conviction,
must be fined not more than ten thousand dollars or imprisoned not more
than three years, or both. The penalties provided in this section are in
addition to any other tax, fines, penalties, or sanctions which may be
imposed.
(D) A supplier who knowingly violates this section is jointly liable
with the terminal operator.
Section 12-28-1575. In general, a notice stating: `DYED DIESEL
FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE'
must be:
(1) provided by the terminal operator to a person who receives dyed
diesel fuel at a terminal rack of that terminal operator;
(2) provided by a seller of dyed diesel fuel to its buyer if the diesel
fuel is located outside the bulk transfer/terminal system and is not sold
from a retail pump posted in accordance with the requirements of item
(3);
(3) posted by a seller on a retail pump where it sells dyed diesel fuel
for use by its buyer.
Section 12-28-1580. The form of notice required under Section
12-28-1575(1) and (2) must be provided by the time of the removal or
sale and must appear on shipping papers, bills of lading, and invoices
accompanying the sale or removal of the dyed diesel fuel.
Section 12-28-1585. (A) A person operating taxable motor fuel
dispenser equipment accessible by the general public shall provide
metering devices for each dispenser and shall maintain records sufficient
to enable the department to determine the volumes dispensed through that
equipment with reasonable accuracy.
(B) No person may exchange, replace, roll back, or otherwise tamper
with the metering equipment without following procedures provided by
the department for legitimate maintenance, repairs, and replacement
purposes.
(C) A person who violates this section is guilty of a misdemeanor
and, upon conviction, must be fined not more than ten thousand dollars
or imprisoned not more than three years, or both.
Section 12-28-1590. A terminal operator in this State and every
supplier licensed by this State for the collection of tax on taxable motor
fuel shall cause terminal-issued shipping papers to meet tamper-resistant
standards the department by regulation may require including messages
which identify whether shipping papers have been photocopied,
numbering systems, and nonreproducible coding, and other devices.
However, the department may not make a regulation effective earlier than
twenty-four months after the promulgation of a final regulation imposing
the requirements.
Section 12-28-1592. No person may operate a tank wagon in this
State unless that tank wagon first is registered under IFTA for use on the
highways of this State and has displayed on the vehicle an IFTA sticker
designating the vehicle for use in this State. However, a vehicle licensed
in this State and exempt from the IFTA regulations is exempt from this
requirement.
Section 12-28-1595. (A) No person may sell or hold for sale dyed
diesel fuel for any use that the person knows or has reason to know is
not a nontaxable use of the diesel fuel.
(B) No person may use or hold for use dyed diesel fuel for a use
other than a nontaxable use if the person knew or had reason to know,
that the diesel fuel was so dyed.
Section 12-28-1597. No person, wilfully with intent to evade tax, may
alter or attempt to alter the strength or composition of a dye or marker in
dyed diesel fuel.
Article 17
Penalties
Section 12-28-1710. A business entity and its officers, employees, and
agents who wilfully participate in an act in violation of Section
12-28-1595 or Section 12-28-1597 are jointly and severally liable with
the entity for the penalty which is the same as imposed under federal
law.
Section 12-28-1720. (A) A supplier, a permissive supplier, or an
importer who knowingly fails to collect and timely remit tax otherwise
required to be paid over to the department pursuant to Section 12-28-905
or 12-28-915 pursuant to a tax precollection agreement under Section
12-28-910 is liable for the uncollected tax plus the penalties provided in
Chapter 54 of Title 12 as appropriately applied by the department. The
burden of proof rests with the department.
(B) A person who fails or refuses to pay over to the State the tax on
taxable motor fuel at the time required in this chapter or who
fraudulently withholds, appropriates, or otherwise uses the money or any
portion of it belonging to the State is guilty of a misdemeanor and, upon
conviction, must be fined as provided in Section 12-54-40(d)(1).
(C) Truck drivers who violate Section 12-28-1510, 12-28-1540, or
12-28-1545 for the first time are guilty of a misdemeanor and, upon
conviction, must be fined not more than two hundred dollars or
imprisoned not more than thirty days, or both. Truck drivers who violate
the sections for the second and all subsequent times are guilty of a
misdemeanor and, upon conviction, must be fined not more than ten
thousand dollars or imprisoned not more than three years, or both.
Section 12-28-1730. (A) If a person liable for the tax files a false or
fraudulent return, there is added to the tax an amount as provided in
Section 12-54-40(d)(1).
(B) The department shall impose a civil penalty of one thousand
dollars for a person's first occurrence of transporting taxable motor fuel
without adequate shipping papers annotated as required under Sections
12-28-1510, 12-28-1540, and 12-28-1545. Each subsequent occurrence
described in this subsection is subject to a civil penalty of five thousand
dollars.
(C) The department shall impose a civil penalty on the operator of a
vehicle of two hundred dollars for the initial occurrence in each calendar
year of a violation of the prohibition of use of dyed taxable motor fuel
on the public highways of this State. Each subsequent offense in a
calendar year is subject to a civil penalty of five thousand dollars.
(D) A supplier who makes sales for export to a person who does not
have an appropriate export license or without collection of the destination
state tax on taxable motor fuel nonexempt in the destination state is
subject to a civil penalty equal to the amount of this state's motor fuel
tax in addition to the tax due to South Carolina.
(E) The department may impose a civil penalty against every terminal
operator who wilfully fails to meet shipping paper issuance requirements
under Sections 12-28-920, 12-28-1500 and 12-28-1575. The civil
penalty imposed on the terminal operator is the same as the civil penalty
imposed under subsection (B).
(F) The department shall impose a civil penalty on the operator of a
vehicle who knowingly violates the prohibition on the sale or use of dyed
fuel upon public highways of this State in an amount equivalent to that
imposed by Section 6714 of the Internal Revenue Code.
(G) An importer or transporter who knowingly imports undyed taxable
motor fuel in a transport truck without a valid importer license or
supplier license and an import verification number or a shipping paper
showing on its face, as required under this chapter, that this state's motor
fuel tax is not due is subject to a civil penalty of ten thousand dollars for
each occurrence. This subsection does not apply to persons transporting
taxable motor fuel through this State in interstate commerce.
Section 12-28-1740. If a person is found operating a motor vehicle in
violation of the shipping paper requirements in Sections 12-28-1505,
12-28-1540, 12-28-1545, and 12-28-1575, the vehicle and its cargo are
subject to impoundment, seizure, and subsequent sale and forfeiture, in
accordance with the general laws of this State respecting seizure and
forfeiture. The failure of the operator of a motor vehicle to have on
board when loaded a terminal-issued bill of lading with a destination
state machine-printed on its face pursuant to Section 12-28-1505 or
which fails to meet the descriptive annotation requirements of Sections
12-28-1540, 12-28-1545, and 12-28-1575, if applicable, is presumptive
evidence of a violation sufficient to warrant impoundment and seizure of
the vehicle and its cargo.
Article 19
Enforcement Powers
Section 12-28-1910. (A) The department or its appointees including
federal government employees or persons operating under contract with
the State, upon presenting appropriate credentials, may conduct
inspections and remove samples of fuel to determine coloration of diesel
fuel or to identify shipping paper violations at any place where taxable
fuel is or may be produced, stored, or loaded into transport vehicles.
Inspection must be performed in a reasonable manner consistent with the
circumstances. However, prior notice is not required. Inspectors
physically may inspect, examine, or otherwise search a tank, reservoir, or
other container that can or may be used for the production, storage, or
transportation of fuel. Inspection may be made of equipment used for, or
in connection with, the production, storage, or transportation of fuel.
Inspectors may demand to be produced for immediate inspection the
shipping papers, documents, and records required to be kept by a person
transporting fuel. These places may include, but are not limited to, a:
(1) terminal;
(2) fuel storage facility that is not a terminal;
(3) retail fuel facility;
(4) highway rest stops; or
(5) designated inspection site defined as any state highway or
waterway inspection station, weigh station, agricultural inspection station,
mobil station, or other location designated by the department either fixed
or mobile.
(B) Inspections to determine violations under this chapter may be
conducted by the Department of Public Safety, agents of the Department
of Revenue and Taxation, motor carrier inspectors in this State in
addition to their duties otherwise defined, and other law enforcement
officers through procedures established by the Department of Revenue
and Taxation. Agents of the Department of Revenue and Taxation have
the same power and authority provided to authorized personnel under the
applicable statute.
(C) An inspector reasonably may detain a person or equipment
transporting fuel in or through this State for the purpose of determining
whether the person is operating in compliance with the provisions of this
chapter and the regulations promulgated pursuant to it. Detainment may
continue for a time only as is necessary to determine whether the person
is in compliance.
Section 12-28-1920. The department may assign qualified persons
who are not state police officers to supervise or operate permanent or
portable weigh stations. A person assigned under this section may stop,
inspect, and issue citations to operators of trucks and trailers, barges or
vessels having a declared gross weight of eleven thousand pounds or
more, and buses, at a permanent weigh station, or other inspection point,
or while operating a clearly marked state police vehicle for violations of
this chapter.
Section 12-28-1930. (A) The department or an authorized deputy,
employee, or agent may audit and examine the records, books, papers,
and equipment of terminal suppliers, importers, wholesalers, jobbers,
retail dealers, terminal operators, fuel vendors, and all private and
common carriers of motor fuel to verify the completeness, truth, and
accuracy of any statement or report and ascertain whether or not the tax
imposed by this law has been paid.
(B) The department has the same general authority provided under
subsection (A) with respect to narrow transportation sampling audits,
except all fuel vendors and bulk purchasers of fuel shall make available
to the department necessary records with respect to the transactions which
the department is attempting to verify during normal business hours at
the person's physical location in this State, or at the department's offices
if the person's location at which the records are located is outside of
South Carolina, within three business days after the request.
(C) The department or an appointee including federal government
employees and persons contracting with the State, upon proof of
credentials shown, in the aggregate referred to for purposes of this
section as fuel inspectors, may inspect and each fuel vendor, motor fuel
transporter, or bulk purchaser shall disclose immediately upon request
any shipping paper required by this chapter to be maintained at the
physical location where the request is made which may include any place
motor fuel is stored or held for sale or transportation.
Section 12-28-1940. (A) A person who refuses to permit an
inspection or audit authorized by this chapter is subject to a civil penalty
of five thousand dollars in addition to any penalty imposed by other
provisions of this chapter.
(B) A person who refuses, for the purpose of evading tax, to allow an
inspection, in addition to being liable for other penalties imposed by this
article, is guilty of a misdemeanor and, upon conviction, must be fined
not more than ten thousand dollars or imprisoned not more than three
years, or both.
Article 21
Specialized Compensating Fuel Taxes
Section 12-28-2110. (A) The department in its discretion may collect
in lieu of the tax imposed by this chapter on taxable motor fuels
consumed on the highways by state and local government diesel and
other federally exempt fuel-powered highway vehicles, a fuel replacement
tax imposed on the operation and the use on the highways of the
vehicles, to be collected and administered in accordance with subsections
(B) and (C).
(B) The tax imposed by this section must be paid before April first
annually by the operator of each state and local government and other
federally exempt vehicles used on the highways in this State. The
amount of tax must be determined by the department to equate to the
amount of motor fuel tax which would have been paid if that tax also is
levied on diesel fuel consumed on the highways in the State and local
government and other federally exempt diesel-powered highway vehicles
by reference to a formula of reasonably expected mileage for that vehicle
and fuel consumption for diesel powered vehicles of similar weight,
design, and intended use.
(C) No person charged with responsibility for operation of a vehicle
covered by this section may permit the operation of any such vehicle on
the highways of this State without the affixation of a decal issued
annually by the department which establishes that the fuel replacement
tax was paid with respect to that vehicle.
Article 23
Petroleum and Petroleum Products
Section 12-28-2310. `Petroleum' or `petroleum product' as used in
this article means gasoline, gasohol, kerosene, diesel fuels, jet fuels, fuel
oil No. 1 through 4, or like product of petroleum, or a product which
may be susceptible for use as petroleum products under whatever named
called.
Section 12-28-2315. The department shall appoint analysts, chemists,
and inspectors required to carry out this article. The inspectors may
examine all barrels, tanks, or other vessels containing petroleum or
petroleum products to see that they are tagged properly as required in this
article and, as directed, collect and test samples of petroleum products
offered for sale in the State, and when so instructed, collect and send
samples to the Department of Agriculture for examination.
Section 12-28-2320. Any inspector who, while in office, is interested,
directly or indirectly, in the manufacture or vending of any gasoline or
illuminating or heating oil is subject to the provisions of Section
12-54-810.
Section 12-28-2325. The Department of Public Safety and law
enforcement agents, upon request of the Department of Revenue and
Taxation, may assist in the enforcement of all laws relating to the
inspection of petroleum products.
Section 12-28-2330. All manufacturers, wholesalers, and jobbers,
before selling or offering for sale in this State any petroleum product
shall file with the department a statement that they desire to do business
in the State and furnish the name or brand of the product which they
desire to sell, with the name and address of the manufacturer and a
statement that the product must comply with the requirements of this
article. Annually on January first, an up-to-date listing must be
submitted by the bonded company covering additional jobbers, dealers,
distributors, consignors, by whatever name called who shall receive and
distribute in bulk quantities the petroleum products in South Carolina.
Section 12-28-2335. When petroleum products are shipped into this
State, the manufacturer or jobber shall give notice to the department of
every shipment in invoiced gallons with the name and gallons on the day
shipment is made. The department may waive this requirement in part or
in full as to any taxpayer if it is redundant or unnecessary.
Section 12-28-2340. The Commissioner of Agriculture may
promulgate regulations prescribing standards for petroleum products and
methods for testing them.
Section 12-28-2345. A person who sells or offers for sale a petroleum
product shall keep an accurate record of all lots of shipments of the
product received by him and the products shipped by him. All delivery
manifests, original and copies, shall show actual destination of products
before they leave the terminal or location of origination. A person who
alters shipping information on shipping documents involving petroleum
products, unless the original and all copies are likewise adjusted and
records amended, is guilty of a misdemeanor and, upon conviction, must
be fined no more than five thousand dollars or imprisoned not more than
one year, or both.
Section 12-28-2350. The department may inspect all records of a
person doing business in this State for the purpose of ascertaining
information relative to the sales, transportation, or possession of
petroleum products. Legible records must be kept at the point of origin
or reasonable approved proximity for auditing purposes. Terminal
operators and suppliers as defined in Section 12-28-110 may maintain
records at an approved central recordkeeping facility within or outside the
State.
Section 12-28-2355. (A) For the purpose of providing funds for
inspecting, testing, and analyzing petroleum products and for general
state purposes, there must be paid to the department a charge of
one-fourth cent a gallon, which liability arises at the same time and is
payable by the same person as the motor fuel tax imposed under this
chapter as if the petroleum product were taxable motor fuel subject to
motor fuel taxes under this chapter. Upon approval of the department, a
surety bond is acceptable as monthly prepayments pending monthly
reports and payments. Determination of acceptable bonding must be
based on distribution, location of terminal facilities, and handling through
other bonded suppliers.
(B) In addition to the inspection fee of one-fourth cent a gallon
imposed pursuant to subsection (A), an environmental impact fee of
one-half cent a gallon is imposed which must be used by the department
for the purposes of carrying out the provisions of this chapter. This
one-half cent a gallon environmental impact fee must be paid and
collected in the same manner that the one-fourth cent a gallon inspection
fee is paid and collected, except that the monies generated from these
environmental impact fees must be transmitted by the Department of
Revenue and Taxation to the Department of Health and Environmental
Control which shall deposit the fees as provided in Section 44-2-40.
Section 12-28-2360. A person may present to the department proof
that he has paid an inspection fee on petroleum products in error or has
paid an inspection fee on shipments of petroleum products subsequently
diverted from the State, whereupon the department shall refund the
amount of the inspection fee to the payee out of the petroleum products
inspection fund, if the proof of the claim is submitted within six months
from the date shown on the delivery manifest.
Section 12-28-2365. Fees must be remitted at the same time and on
the same return as taxes imposed under Section 12-28-310, and all
monies received under this section must be paid into the State Treasury
as provided for in Section 12-28-2355(A) and (B). The monies must be
turned over monthly by the department to the State Treasurer, as are
other funds. The discount allowed for under Sections 12-28-955 and
12-28-960 are not allowed for payments made under Section
12-28-2355.
Section 12-28-2370. The department may promulgate regulations
necessary for carrying out the provisions of this article.
Section 12-28-2375. The provisions of this article do not apply to a
retail dealer in petroleum products, unless the retail dealer sells or offers
to sell petroleum products of a manufacturer, wholesaler, or jobber who
refuses to comply with the provisions of this article.
Section 12-28-2380. All motor fuels placed into motor vehicles for
use in their operation or for the operation of their parts or attachments
are subject to the tax provided in this chapter. This section does not
apply to a seller-user of liquefied petroleum gas.
Section 12-28-2385. Exports of petroleum products are exempt from
the inspection fee imposed by Section 12-28-2355. The export
exemption applicable to the inspection fee on taxable motor fuel must be
perfected in the same manner as the export exemption for taxable motor
fuel.
Article 25
Reports and Bond Requirements
Section 12-28-2510. The department, in addition to other reporting
requirements of this chapter, shall require that the taxes imposed pursuant
to this chapter be reported and aggregated by county based on gallons
sold through a retail outlet accessible to the general public. This
information must be submitted to the department on forms prescribed by
the department annually by February twenty-eighth.
Section 12-28-2520. An oil company may furnish the department with
a statement of assets and liabilities, and if in the judgment of the
department the property owned by the oil company is sufficient to protect
the State in the payment of all gasoline taxes due, a bond is not
required.
Article 27
Deposits and Distributions
Section 12-28-2710. All monies collected by the department under
this chapter must be deposited to the credit of the State Treasurer as
other taxes collected by the department.
Section 12-28-2720. The proceeds from ten and thirty-four hundredths
cents a gallon of the tax on gasoline only as levied and provided for in
this chapter must be distributed as follows: nine and thirty-four
hundredths cents on each gallon must be turned over to the Department
of Transportation for the purpose of that department, and one cent a
gallon must be deposited to the credit of the general fund of the
State.
Section 12-28-2730. (A) One percent of the proceeds from thirteen
cents of the gasoline tax only imposed pursuant to this chapter must be
transmitted to the Department of Natural Resources to be placed to the
credit of a special water recreational resources fund of the State Treasury,
and all balances in the fund must be carried forward annually so that no
part of it reverts to the general fund of the State. All of the funds must
be allocated based upon the number of boats or other watercraft
registered in each county pursuant to law and expended, subject to the
approval of a majority of the county legislative delegation, including a
majority of the resident senators, if any, for the purpose of water
recreational resources. The amounts allocated must be deducted from the
gross proceeds of the gasoline tax before net proceeds to be distributed
are determined. This section does not reduce the one cent a gallon
license tax credited to the general fund of the State pursuant to Section
12-28-2720.
(B) The governing body of a coastal county, upon recommendation of
a majority of the legislative delegation, including a majority of the
resident senators, shall refund to a person purchasing gasoline for use in
commercial or charter fishing boats operated exclusively in the coastal
waters of this State, all or a portion of the state tax on the gasoline
returned to the county pursuant to this section. The refund, if any, must
be made pursuant to regulations established by the governing body of the
county.
(C) The Department of Natural Resources must be reimbursed for
engineering, design, rehabilitation, and law enforcement costs incurred in
the administration of the provisions of this section, but funds for law
enforcement may not exceed one-third of revenues to the special water
recreational resources fund. Funds for reimbursement must be transferred
from funds collected under the provisions of this section.
Section 12-28-2740. (A) The proceeds from two and sixty-six
one-hundredths cents a gallon of the tax on gasoline only as levied and
provided for in this chapter must be deposited with the State Treasurer
and expended for purposes set forth in this section. The monies must be
apportioned among the counties of the State in the following manner:
(1) one-third in the ratio which the land area of the county bears to
the total land area of the State;
(2) one-third in the ratio which the population of the county bears to
the total population of the State as shown by the latest official decennial
census;
(3) one-third in the ratio which the mileage of all rural roads in the
county bears to the total rural road mileage in the State as shown by the
latest official records of the Department of Transportation. The
Department of Revenue and Taxation shall collect the information
required pursuant to Section 12-28-2510 regarding the number of gallons
sold in each county for use in making allocations of donor funds as
provided in subsection (H). The Department of Revenue and Taxation
shall submit the percentage of the total represented by each county to the
Department of Transportation and to each county transportation
committee annually by March thirty-first. Upon request of a county
transportation committee, the Department of Transportation shall continue
to administer the funds allocated to the county.
(B) The funds expended must be approved by and used in furtherance
of a countywide transportation plan adopted by a county transportation
committee. The county transportation committee must be appointed by
the county legislative delegation and must be made up of fair
representation from municipalities and unincorporated areas of the
county. County transportation committees may join in approving a
regional transportation plan, and the funds must be used in furtherance of
the regional transportation plan. This subsection does not prohibit the
county legislative delegation from making project recommendations to
the county transportation committee. A county transportation committee
may expend from the funds allocated under this section an amount not to
exceed one thousand dollars for reasonable administrative expenses
directly related to the activities of the committee. Administrative
expenses may include costs associated with copying, mailings, public
notices, correspondence, and recordkeeping but do not include the
payment of per diem or salaries for members of the committee.
(C) At least twenty-five percent of a county's apportionment of `C'
funds must be expended on the state highway system for construction,
improvements, and maintenance. The county transportation committee, at
its discretion, may expend up to seventy-five percent of `C' construction
funds for activities including, but not limited to, local paving or
improving county roads, for street and traffic signs, and for other paving
projects. Roads constructed of rock must consist of not less than one
inch nor more than two and one-half inches of rock or its equivalent.
(D) The funds allocated to the county also may be used to issue
county bonds or state highway bonds as provided in subsection (J), pay
directly for appropriate projects, including engineering, contracting, and
project supervision, and match federal funds available for appropriate
projects.
(E) All unexpended `C' funds allocated to a county remain in the
account allocated to the county for the succeeding fiscal year and must be
expended as provided in this section.
(F) The countywide and regional transportation plans provided for in
this section must be reviewed and approved by the Department of
Transportation. Before the expenditure of funds by a county
transportation committee, the committee shall adopt specifications for
local road projects. In counties electing to expend their allocation directly
pursuant to subsection (A), specifications of roads built with `C' funds
are to be established by the countywide or regional transportation
committee. In counties in which the county transportation committee
elects to have `C' funds administered by the Department of
Transportation, primary and secondary roads built using `C' funds must
meet Department of Transportation specifications.
(G) This section must not be construed as affecting the plans and
implementation of plans for a Statewide Surface Transportation System
as developed by the Department of Transportation.
(H) For purposes of this subsection, `donor county' means a county
that contributes to the `C' fund an amount in excess of what it receives
under the allocation formula as stated in subsection (A). In addition to
the allocation to the counties pursuant to subsection (A), the Department
of Transportation annually shall transfer from the state highway fund to
the donor counties an amount equal to nine and one-half million dollars
in the ratio of the individual donor county's contribution in excess of `C'
fund revenue allocated to the county under subsection (A) to the total
excess contributions of all donor counties.
(I) In expending funds under this section, counties that provide for
engineering, contracting, and project supervision shall use a procurement
system which requires competitive sealed bids and public advertisement
of all projects. All bids for contracts in excess of one hundred thousand
dollars must be accompanied by certified bid bonds, and all work
awarded under the contracts must be covered by performance and
payment bonds for one hundred percent of the contract value. Bid
summaries must be published in a newspaper of general distribution
following each award.
(J) State highway bonds may be issued for the completion of projects
for which `C' funds may be expended for projects as determined by the
county transportation committee. The applicable source for payment of
principal and interest on the bonds is the share of `C' fund revenues
available for use by the county transportation committee. The application
for the bonds must be filed by the county transportation committee with
the Commission of the Department of Transportation and the State
Treasurer, which shall forward the application to the State Budget and
Control Board. The Budget and Control Board shall consider the
application in the same manner that it considers state highway bonds,
mutatis mutandis.
(K) Members of the committee are insulated from all personal liability
arising out of matters related directly to and within the scope of the
performance of official duties and functions conferred upon the
committee pursuant to this section.
Section 12-28-2750. Subject to the provisions of Section 12-28-2910,
the remainder of the proceeds from the gasoline and fuel taxes levied and
provided for in this chapter must be remitted to the State Highway
Fund.
Article 29
Economic Development
Section 12-28-2910. The first eighteen million dollars generated from
three cents of the tax levied in this chapter must be segregated in a
separate account for economic development. This account may be
expended only upon the authorization of the South Carolina Coordinating
Council for Economic Development which shall establish project
priorities. Funds devoted to the economic development account must
remain in the account if not expended in the previous fiscal year.
Annually, funds from the tax must be deposited to replenish the account
to the extent and in an amount necessary to maintain an uncommitted
and/or an unobligated fund balance of eighteen million dollars but not to
exceed eighteen million dollars for the ensuing fiscal year. The council
may spend no more than two hundred fifty thousand dollars, in the first
year only, for a long-term economic development plan which must be
submitted to the General Assembly on completion of the plan. The
council may spend not more than sixty thousand dollars annually for a
state infrastructure model.
Section 12-28-2920. The department shall review projects for the
possibility of constructing toll roads to defray the cost of these projects
pursuant to the authority granted the department in Section 57-5-1330.
No project may be funded by means of imposing a toll on the users of
the project unless in conjunction with federal funds authorized for use on
toll roads it is determined to be substantially feasible by the department.
The funds derived from tolls must be returned to the State Highway Fund
until the fund is reimbursed or used to service bonded indebtedness for
highway transportation purposes. Upon reimbursement, all toll charges
cease.
Section 12-28-2930. (A)(1) Of total state source highway funds,
including revenues generated by Section 12-28-2740, expended in a fiscal
year on highway, bridge, and building construction, and building
renovation contracts, the Department of Transportation and counties shall
ensure that not less than:
(a) five percent are expended through direct contracts with
estimated values of two hundred fifty thousand dollars or less with small
business concerns owned and controlled by socially and economically
disadvantaged ethnic minorities (MBEs);
(b) five percent are expended through direct contracts with
estimated values of two hundred fifty thousand dollars or less with firms
owned and controlled by disadvantaged females (WBEs).
(2) The two hundred fifty thousand dollars value limits may be
raised in the discretion of the department as MBEs/WBEs are able to
provide bondability.
(B) The department shall certify eligible firms under this section and
shall give at least thirty days' notice to certified firms of contracts to be
let. The department shall take into consideration the location and
availability of MBE or WBE firms in the State when designating projects
to be set aside. No certified MBE or WBE may participate after June 30,
1999, or nine years from the date of the firm's first contract, whichever
is later, if that firm performed at least three million dollars in highway
contracts for four consecutive years while certified as a WBE or MBE.
Firms performing less than three million dollars in highway contracts for
four consecutive years may be recertified for additional five-year periods
based upon recertification reviews by the department.
(C) To achieve the set-asides set forth in subsection (A), the
department shall advertise a number of highway construction projects at
each regularly scheduled highway letting to be bid exclusively by MBEs
and WBEs. The total annual value of those projects awarded must equal
at least ten percent of total state source highway funds expended in each
fiscal year, or otherwise documented as described in subsection (D).
Projects must be awarded when the lowest responsive and responsible
bidder submits a bid within ten percent of the official engineer's
estimate. If the lowest responsive bid exceeds the engineer's estimate by
more than ten percent, the department may enter into negotiation with the
low bidder making reasonable changes in the plans and specifications as
necessary to bring the contract price within the ten percent range. If the
low bidder agrees to the changes and the revised contract price, the
contract must be awarded to the low bidder at the revised price. If the
low bidder can show just cause for his bid exceeding the ten percent
range, the department may award the contract without making any
changes in the plans and specifications or the contract price. If the
department fails to award any advertised project, that project may be
readvertised through the normal bid process and must not be readvertised
for the purpose of achieving the set-asides.
(D) If no MBE or WBE firms certified pursuant to this section are
available to perform a contract, the department shall verify and record
this fact, and the verification must be preserved in department
records.
(E) To facilitate implementation of this section, the department may
waive bonding requirements for contracts let pursuant to this section with
estimated construction costs not exceeding two hundred fifty thousand
dollars a contract, and any contract set aside and awarded to any MBE or
WBE contractor without bonding shall provide expressly that termination
of the contract for default of the contractor renders the contractor
ineligible for any further department nonbonded contracts for a minimum
period of two years from the date of the notice. The department shall act
as bonding company when bonding requirements have been waived. Any
claims brought by subcontractors or suppliers in connection with
nonbonded projects must be heard by the Department Claims Committee
and all legitimate claims must be paid by the department. The committee
shall take into account circumstances such as unsettled payments and
disputes with the department or other circumstances that are beyond the
MBE/WBEs control. Claims resulting in monetary settlements shall
render the MBE/WBEs ineligible for any further department nonbonded
projects until the MBE/WBE has reimbursed or has made acceptable
arrangements to reimburse the department for the amount due as a result
of the settlement.
(F) In awarding any contract pursuant to this section, preference must
be given to an otherwise eligible South Carolina contractor submitting a
responsible bid not exceeding an otherwise eligible out-of-state
contractor's low bid by two and one-half percent.
(G) The department shall establish written guidelines to be used in the
selection and design of projects awarded under this section. Those
guidelines shall outline the types of projects best suited for this program
and other related criteria.
(H) When a MBE or WBE receives a contract, the department shall
furnish a letter, upon request, stating the dollar value and duration of,
and other information about the contract, which may be used by the
MBE or WBE in negotiating lines of credit with lending institutions.
(I) The department shall issue an annual report listing all contracts
awarded pursuant to this section. That report must also include a listing
of all contracts and subcontracts awarded pursuant to Section 106(C) of
the Federal Surface Transportation Act of 1987 (STAA-1987; P.L.
100-17, Section 106(c)). The listings must be both chronological and by
name of participating firms. Entries must include file numbers, locations,
and dollar amounts. The report must also contain information relating to
canceled contracts and subcontracts, subcontractor substitutions, and final
payments to MBE/WBEs.
(J) Any MBE or WBE acting as a prime contractor shall perform at
least thirty percent of the work with his own forces. If thirty percent of
the work is performed with his own forces, the total amount of the
contract is counted toward the MBE/WBE set-asides. If less than thirty
percent is performed by the MBE/WBE, then only that portion performed
by the MBE/WBE is counted toward the set-asides.
(K) The department shall make available technical assistance for
MBEs and WBEs for not less than three hundred thousand dollars. Any
of these funds awarded to small consulting firms owned and controlled
by MBEs or WBEs may count toward the set-asides established in
subsection (A) of this section. The selected firms must be South Carolina
based and experienced in assisting with the development of minority
firms.
(L) Technical assistance provided under subsection (K) must include
written and verbal instruction on competitive bidding, management
techniques, and general business operations. Firms certified under this
section must be represented by a company officer in at least twenty hours
of continuing education a year in order to remain certified. The
department shall implement a system that will designate a lead engineer
to work with MBE/WBEs. This engineer shall work with the office of
compliance, the supportive services contractor, and with the department's
engineers to provide early technical assistance to MBE/WBEs with
contracts in each highway district. The support must include professional
and technical assistance aimed toward meeting the standards, the
specifications, the timing, quality, and other requirements of their
contracts. The department also shall endeavor to utilize the expertise of
established highway, bridge, and building contractors when providing
technical and support services.
(M) Any contracts awarded through the normal bid process to
certified MBEs or WBEs may count toward the set-asides. Subcontracts
entered into between prime contractors and certified MBE/WBEs without
regard to these provisions may be counted toward the set-asides outlined
in subsection (A) of this section if these subcontracts are verified through
the department records.
(N) If any part or provision of this section is declared to be
unconstitutional or unenforceable by a court of competent jurisdiction of
this State, the court's decision, nevertheless, has no effect on the
constitutionality, validity, and enforceability of the other parts and
provisions of this section which are considered severable.
(O) Within one hundred twenty days of the effective date of this
section the department shall promulgate and implement regulations to
administer the provisions of this section."
Road tax revised
SECTION 3. Section 12-31-410 of the 1976 Code is amended to
read:
"Section 12-31-410. A road tax for the privilege of using the
streets and highways in this State is imposed upon every motor carrier.
The tax is equivalent to sixteen cents a gallon, calculated on the amount
of gasoline or other motor fuel used by the 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 taxes imposed upon the carriers by any other provision of
law."
Repeal
SECTION 4. (A) Sections 39-41-20, 39-41-30, 39-41-40, 39-41-50,
39-41-60, 39-41-100, 39-41-110, 39-41-120, 39-41-130, and 39-41-140
of the 1976 Code are repealed effective September 1, 1995.
(B) Sections 12-27-210, 12-27-220, 12-27-230, 12-27-240, 12-27-250,
12-27-260, 12-27-270, 12-27-280, 12-27-300, 12-27-310, 12-27-320,
12-27-330, 12-27-340, 12-27-350, 12-27-360, 12-27-400, 12-27-510,
12-27-520, 12-27-530, 12-27-540, 12-27-550, 12-27-560, 12-27-570,
12-27-580, 12-27-590, 12-27-600, 12-27-610, 12-27-710, 12-27-720,
12-27-730, 12-27-740, 12-27-750, 12-27-760, 12-27-770, 12-27-780,
12-27-790, 12-27-800, 12-27-810, 12-27-820, 12-27-830, 12-27-1010,
12-27-1110, 12-27-1120, 12-27-1210, 12-27-1220, 12-27-1230,
12-27-1240, 12-27-1250, 12-27-1260, 12-27-1265, 12-27-1510, 12-29-10,
12-29-20, 12-29-30, 12-29-40, 12-29-110, 12-29-120, 12-29-130,
12-29-140, 12-29-150, 12-29-310, 12-29-320, 12-29-340, 12-29-350,
12-29-360, 12-29-370, 12-29-380, 12-29-390, 12-29-400, 12-29-410,
12-29-420, 12-29-430, 12-29-440, 12-29-610, 12-29-620 and 12-29-630
and Article 1, Chapter 27, Title 12 of the 1976 Code are repealed
effective May 1, 1996.
Appropriate references
SECTION 5. Except where inappropriate, a reference in a law, a
regulation, or another document to Chapters 27 and 29, Title 12 of the
1976 Code or sections in the chapters is considered a reference to the
appropriate provisions of Chapter 28, Title 12 of the 1976 Code.
Duties of Code Commissioner
SECTION 6. Except where inappropriate, the Code Commissioner
shall:
(1) place all appropriate provisions of acts dealing with Chapter 41 of
Title 39 of the 1976 Code and Chapters 27 and 29 of Title 12 of the
1976 Code enacted in the 1995 session of the General Assembly in the
appropriate part of Chapter 28, Title 12 of the 1976 Code as added by
this act and in so doing he may modify the language of code sections as
necessary to implement the intent of the General Assembly;
(2) delete from the chapter added by this act any provision of law the
subject matter of which was repealed or eliminated by the General
Assembly in the 1995 session;
(3) amend provisions in the chapter added by this act corresponding
to amendments enacted during the 1995 session in other acts to
applicable provisions of the 1976 Code repealed by this act;
(4) correct cross references as he considers necessary in affected
provisions of the 1976 Code.
Time effective
SECTION 7. This act takes effect May 1, 1996, except that the
provisions of Article 23, Chapter 28 of Title 12 of the 1976 Code as
added by this act take effect September 1, 1995.
Approved the 12th day of June, 1995. |