S 0473 General Bill, By J.M. Waddell, J.C. Hayes, Leatherman and I.E. Lourie
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 12-54-260 so as to provide for the collection of delinquent state taxes by
 setting off delinquent taxes against amounts due the taxpayer for providing
 goods and services to the State, to provide that the South Carolina Tax
 Commission shall provide appropriate information to the Comptroller General
 for the purpose of making setoffs, to require amounts set off to be remitted
 to the Commission, to provide for written notices of the setoff to the
 taxpayers, and to provide for review of setoffs by the Commission.

   01/15/91  Senate Introduced and read first time SJ-10
   01/15/91  Senate Referred to Committee on Finance SJ-10
   02/13/91  Senate Committee report: Favorable Finance SJ-15
   02/14/91  Senate Read second time SJ-18
   02/14/91  Senate Ordered to third reading with notice of
                     amendments SJ-18
   02/19/91  Senate Read third time and sent to House SJ-13
   02/20/91  House  Introduced and read first time HJ-18
   02/20/91  House  Referred to Committee on Ways and Means HJ-19

February 13, 1991

S. 473

Introduced by SENATORS Waddell, Leatherman, Lourie and Hayes

S. Printed 2/13/91--S.

Read the first time January 15, 1991.

To whom was referred a Bill (S. 473), to amend the Code of Laws of South Carolina, 1976, by adding Section 12-54-260 so as to provide for the collection of delinquent state taxes, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

JAMES M. WADDELL, JR., for Committee.

STATEMENT OF ESTIMATED FISCAL IMPACT

Senate Bill 473 adds Section 12-54-260 so as to provide for the collection of delinquent state taxes by setting off delinquent taxes against amounts due the taxpayer for providing goods and services to the state, to provide that the South Carolina Tax Commission shall provide appropriate information to the Comptroller General for the purpose of making setoffs, to require amounts set off to be remitted to the Commission, to provide for written notices of the setoff to the taxpayers, and to provide for review of setoffs by the Commission.

This bill would increase state revenue by an undeterminable amount.

Approved By:

S. Hunter Howard, Jr.

S.C. Tax Commission

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-54-260 SO AS TO PROVIDE FOR THE COLLECTION OF DELINQUENT STATE TAXES BY SETTING OFF DELINQUENT TAXES AGAINST AMOUNTS DUE THE TAXPAYER FOR PROVIDING GOODS AND SERVICES TO THE STATE, TO PROVIDE THAT THE SOUTH CAROLINA TAX COMMISSION SHALL PROVIDE APPROPRIATE INFORMATION TO THE COMPTROLLER GENERAL FOR THE PURPOSE OF MAKING SETOFFS, TO REQUIRE AMOUNTS SET OFF TO BE REMITTED TO THE COMMISSION, TO PROVIDE FOR WRITTEN NOTICES OF THE SETOFF TO THE TAXPAYERS, AND TO PROVIDE FOR REVIEW OF SETOFFS BY THE COMMISSION.

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

SECTION 1. Article 1, Chapter 54, Title 12 of the 1976 Code is amended by adding:

"Section 12-54-260. (A) As used in this section:

(1) `Delinquent taxes' mean state taxes including penalty, interest, and costs for which a warrant for distraint has been issued and filed by the commission.

(2) `Commission' means the South Carolina Tax Commission.

(3) `Payment owed by the State' means amounts for which the Comptroller General is responsible for payment and which result from goods or services rendered or to be rendered to the State or its agencies or political subdivisions.

(4) `Collecting agency' means the Comptroller General.

(B) The commission may collect delinquent taxes by means of a setoff procedure as provided in this section.

(C) The commission shall provide to the Comptroller General the names, social security numbers, or federal employer identification numbers, or other identifying information considered necessary by the Comptroller General to determine whether a payment owed by the State to a taxpayer is a payment due a taxpayer owing delinquent taxes.

(D) Based solely on the information furnished by the commission, the Comptroller General shall determine if a payment owed by the State is payable to a taxpayer owing delinquent taxes and on this determination he shall remit the payment to the commission. The commission shall promptly notify the delinquent taxpayer of the payment. Remitting of the payment to the commission terminates the Comptroller General's responsibilities under this section, except as otherwise provided by law. The commission's notice to the taxpayer must:

(1) be in writing;

(2) specify the amount paid to the commission;

(3) state the total amount the commission determines to be due from the taxpayer;

(4) specify the name, address, and telephone number of an employee of the commission whom the taxpayer can contact to discuss the delinquent tax liability.

(E) Reviews of setoffs are with the commission and information furnished by the commission to the Comptroller General is considered correct and reliable for use by the Comptroller General in applying the setoff procedure."

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