H*4834 Session 111 (1995-1996)
H*4834(Rat #0528, Act #0431 of 1996) General Bill, By Robinson, R.C. Fulmer,
Harrell, Haskins, R.J. Herdklotz, C.V. Marchbanks, Rice, Sandifer, Trotter and
D.C. Waldrop
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
12-2-75 so as to provide for the method of signing income tax returns; to
amend Section 12-4-310, as amended, relating to duties of the Department of
Revenue and Taxation, so as to revise a reference to the bond requirement for
departmental officers and employees; to amend Section 12-6-50, as amended,
relating to sections of the Internal Revenue Code of 1986 not adopted in the
determination of South Carolina taxable income, so as to delete the exclusion
provisions relating to an innocent spouse.-short title
03/27/96 House Introduced and read first time HJ-23
03/27/96 House Referred to Committee on Ways and Means HJ-25
04/09/96 House Committee report: Favorable with amendment Ways
and Means HJ-12
04/11/96 House Amended HJ-29
04/11/96 House Debate interrupted HJ-30
04/11/96 House Read second time HJ-33
04/16/96 House Read third time and sent to Senate HJ-20
04/17/96 Senate Introduced and read first time SJ-10
04/17/96 Senate Referred to Committee on Finance SJ-10
05/09/96 Senate Recalled from Committee on Finance SJ-36
05/16/96 Senate Amended SJ-57
05/16/96 Senate Read second time SJ-57
05/16/96 Senate Ordered to third reading with notice of
amendments SJ-57
05/21/96 Senate Amended SJ-40
05/21/96 Senate Read third time and returned to House with
amendments SJ-40
05/23/96 House Debate adjourned on Senate amendments until
Tuesday, May 28, 1996 HJ-82
05/28/96 House Debate adjourned on Senate amendments until
Wednesday, May 29, 1996 HJ-97
05/28/96 House Reconsidered HJ-104
05/28/96 House Senate amendment amended HJ-104
05/28/96 House Returned to Senate with amendments HJ-104
05/30/96 Senate Concurred in House amendment and enrolled SJ-70
06/13/96 Ratified R 528
06/19/96 Signed By Governor
06/19/96 Effective date 06/19/96 except where otherwise provided
07/02/96 Copies available
07/02/96 Act No. 431
(A431, R528, H4834)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH
CAROLINA, 1976, BY ADDING SECTION 12-2-75 SO AS TO
PROVIDE FOR THE METHOD OF SIGNING INCOME TAX
RETURNS; TO AMEND SECTION 12-4-310, AS AMENDED,
RELATING TO DUTIES OF THE DEPARTMENT OF REVENUE
AND TAXATION, SO AS TO REVISE A REFERENCE TO THE
BOND REQUIREMENT FOR DEPARTMENTAL OFFICERS AND
EMPLOYEES; TO AMEND SECTION 12-6-50, AS AMENDED,
RELATING TO SECTIONS OF THE INTERNAL REVENUE CODE
OF 1986 NOT ADOPTED IN THE DETERMINATION OF SOUTH
CAROLINA TAXABLE INCOME, SO AS TO DELETE THE
EXCLUSION OF PROVISIONS RELATING TO AN INNOCENT
SPOUSE; TO AMEND SECTION 12-31-60, RELATING TO
PENALTIES PROVIDED UNDER THE INTERNATIONAL FUEL
TAX AGREEMENT, SO AS TO MAKE THESE PENALTIES APPLY
IN LIEU OF OTHER PENALTIES AND INTEREST OTHERWISE
REQUIRED; TO AMEND SECTIONS 12-36-110, 12-36-120,
12-36-1710, 12-36-2110, AND 12-36-2120, ALL AS AMENDED,
RELATING TO THE SOUTH CAROLINA SALES AND USE TAX
ACT, SO AS TO REVISE THE DEFINITIONS OF "RETAIL
SALE" AND "WHOLESALE SALE", CLARIFY A
REFERENCE IN AN EXEMPTION UNDER THE CASUAL EXCISE
TAX, REQUIRE LEASES TO BE IN WRITING FOR PURPOSES OF
OBTAINING THE THREE HUNDRED DOLLARS MAXIMUM
SALES TAX ON CERTAIN ITEMS, CLARIFY THE SALES TAX
EXEMPTION FOR SUPPLIES REQUIRED BY DIABETICS, AND TO
EXEMPT GOODS PROVIDED TO THE FEDERAL GOVERNMENT
WHEN CERTAIN CONDITIONS ARE MET; TO AMEND SECTION
12-39-260, RELATING TO THE DUTIES OF THE COUNTY
AUDITOR, SO AS TO AUTHORIZE THE DEPARTMENT OF
REVENUE AND TAXATION TO APPROVE OTHER MEANS OF
ACCOUNTING FOR AND REPORTING OF REAL ESTATE SALES;
TO AMEND SECTION 12-54-35, RELATING TO THE INNOCENT
SPOUSE RULE, SO AS TO PROVIDE THOSE INSTANCES WHEN
THE RULE DOES NOT APPLY; TO AMEND SECTION 12-54-50, AS
AMENDED, RELATING TO THE PENALTY ON A RETURNED
CHECK FOR TAXES, SO AS TO EXTEND THE PENALTY TO
ELECTRONIC PAYMENTS AND CLARIFY THIS PENALTY AS AN
ADDITION TO ALL OTHER PENALTIES; TO AMEND SECTION
12-54-90, AS AMENDED, RELATING TO THE AUTHORITY OF
THE DEPARTMENT TO REVOKE LICENSES ISSUED TAXPAYERS
FOR VIOLATIONS OR OMISSIONS, SO AS TO CHANGE
REFERENCES FROM "COMMISSION" TO
"DEPARTMENT"; TO AMEND SECTION 12-54-210, AS
AMENDED, RELATING TO THE REQUIREMENT TO MAINTAIN
RECORDS FOR TAX PURPOSES, SO AS TO EXTEND THE
REQUIREMENT TO LICENSES, FEES, AND SURCHARGES AND
TO PROVIDE THE CIRCUMSTANCES UNDER WHICH
MICROFILM RECORDS ARE ADEQUATE; TO REPEAL SECTION
12-6-5040, RELATING TO THE AUTHORITY OF THE
DEPARTMENT TO REQUIRE COPIES OF FEDERAL TAX
RETURNS; TO AMEND SECTION 12-37-220, AS AMENDED,
RELATING TO GENERAL EXEMPTION FROM AD VALOREM
TAXES, SO AS TO PROVIDE TECHNICAL CHANGES,
SUBSTITUTE "WATERCRAFT" FOR
"BOATS", TO PROVIDE THE MAXIMUM ASSESSMENT
FOR WATERCRAFT THAT ARE EXEMPT FROM AD VALOREM
TAXES, TO PROVIDE AN AD VALOREM TAX EXEMPTION FOR
WATERCRAFT TRAILERS AND TO REVISE THE APPLICATION
OF THE EXEMPTION FOR POLLUTION CONTROL EQUIPMENT
IN GREIGE MILLS; TO AMEND SECTION 12-37-252, RELATING
TO THE CLASSIFICATION AND ASSESSMENT OF PROPERTY
QUALIFYING FOR EXEMPTION UNDER SECTION 12-37-250, SO
AS TO PROVIDE THAT A PERSON QUALIFYING FOR THIS
EXEMPTION ALSO MAY QUALIFY FOR A HOMESTEAD EXEMPT
TAX REFUND; TO AMEND SECTION 12-37-275, RELATING TO
THE DATE FOR SUBMISSION FOR REQUESTS FOR
REIMBURSEMENT FOR CERTAIN UNCOLLECTED TAXES, SO AS
TO PROVIDE FOR THE TREATMENT OF ACCOUNTS COVERED
BY THIS PROVISION; TO AMEND SECTION 12-37-610, RELATING
TO LIABILITY FOR PAYMENT OF PROPERTY TAXES, SO AS TO
DELETE OBSOLETE LANGUAGE; TO AMEND SECTION
12-37-930, AS AMENDED, RELATING TO THE VALUATION OF
PROPERTY, DEPRECIATION ALLOWANCES FOR
MANUFACTURER'S MACHINERY AND EQUIPMENT, AND
ADJUSTMENTS IN CERTAIN ALLOWANCES, SO AS TO PROVIDE
TECHNICAL CHANGES, SUBSTITUTE "WATERCRAFT AND
AIRCRAFT" FOR "BOATS AND AIRPLANES" AND
TO PROVIDE THAT THIS PROVISION APPLIES TO CERTAIN
WATERCRAFT AND AIRCRAFT; TO AMEND SECTION 12-43-217,
AS AMENDED, RELATING TO THE CONDUCTING OF CERTAIN
PROPERTY REASSESSMENTS, SO AS TO REVISE THE
REASSESSMENT PERIOD; TO AMEND SECTION 12-43-220, AS
AMENDED, RELATING TO CERTAIN ASSESSMENT RATIOS FOR
PROPERTY SUBJECT TO AD VALOREM TAXATION,
PROCEDURES FOR CLAIMING CERTAIN AD VALOREM
TAXATION CLASSIFICATIONS AND THE ROLL-BACK OF
CERTAIN TAXES, SO AS TO PROVIDE CERTAIN TECHNICAL
CHANGES, ESTABLISH ADDITIONAL REQUIREMENTS TO
QUALIFY FOR THE FOUR PERCENT OWNER-OCCUPIED
RESIDENTIAL PROPERTY ASSESSMENT RATIO AND VARIOUS
METHODS OF PROVIDING DOCUMENTATION TO THE
ASSESSOR OF ELIGIBILITY AND TO PROVIDE EXCEPTIONS,
AND THAT STANDING TIMBER WILL NOT BE USED IN
DETERMINING FAIR MARKET VALUE FOR CERTAIN REAL
PROPERTY; TO AMEND SECTION 12-51-40, AS AMENDED,
RELATING TO EXECUTION COSTS, THE LEVY OF A WARRANT
OR EXECUTION, A NOTICE OF DELINQUENT TAXES, SEIZURE
OF PROPERTY, AND AN ADVERTISEMENT OF SALE, SO AS TO
MAKE A TECHNICAL CHANGE; TO AMEND SECTION 12-51-55,
RELATING TO THE REQUIRED BID ON BEHALF OF FORFEITED
LAND COMMISSION WHEN PROPERTY IS SOLD FOR
NONPAYMENT OF AD VALOREM TAXES, SO AS TO PROVIDE
THE PROCEDURE FOR DISPOSING OF CONTAMINATED REAL
PROPERTY; TO AMEND SECTION 12-60-2510, RELATING TO
PROPERTY TAX ASSESSMENT NOTICES, SO AS TO REVISE THE
DATE WHEN TAX ASSESSMENT NOTICES MUST BE MAILED,
AND TO ELIMINATE CERTAIN INFORMATION FROM A
PROPERTY TAX ASSESSMENT NOTICE; TO AMEND SECTION
12-60-2910, RELATING TO A REQUEST TO MEET WITH AN
AUDITOR REGARDING A PERSONAL PROPERTY TAX
ASSESSMENT, AND A WRITTEN PROTEST FOLLOWING THE
MEETING, SO AS TO REVISE THE PERIOD WHEN A PERSON
MAY MEET WITH AN AUDITOR; TO AMEND SECTION 12-51-60,
AS AMENDED, RELATING TO TAX SALES, SO AS TO PROVIDE
FOR NOTICE OF ANY EXCESS FOR THE SALE DUE THE
DEFAULTING TAXPAYER; TO AMEND SECTION 12-51-120, AS
AMENDED, RELATING TO REDEMPTION OF PROPERTY, SO AS
TO REVISE NOTICE REQUIREMENTS AND CONFORM THE
REFERENCE TO AN INTEREST RATE TO CURRENT LAW; TO
AMEND SECTION 12-54-250, AS AMENDED, RELATING TO
PAYMENT OF TAXES IN FUNDS IMMEDIATELY AVAILABLE, SO
AS TO AUTHORIZE THE DEPARTMENT OF REVENUE TO
PRESCRIBE ALTERNATIVE MEANS FOR FILING TAX RETURNS
AND REPORTS AND PROVIDE FOR THE TIME INTEREST AND
PENALTIES MAY APPLY TO SUCH PAYMENTS; TO ADD
SECTIONS 12-21-3920, 12-21-3940, 12-21-3950, AND 12-21-4060 SO
AS TO PROVIDE DEFINITIONS AND LICENSING REQUIREMENTS
FOR THE GAME OF BINGO; TO AMEND SECTION 12-6-1140, AS
AMENDED, RELATING TO SOUTH CAROLINA INDIVIDUAL
INCOME TAX DEDUCTIONS, SO AS TO DELETE THE
DEDUCTIONS FOR BINGO PRIZES; TO ADD SECTION 12-21-3955
SO AS TO PROVIDE FOR THE DESIGNATION OF A PROMOTER
FOR PURPOSES OF BINGO REGULATION; TO AMEND SECTIONS
12-21-4000 AND 12-21-4030, RELATING TO BINGO, SO AS TO
DELETE CERTAIN REQUIREMENTS OF THE CALLER AND LIMIT
CHARGES FOR CARDS; AND TO AMEND SECTION 12-36-90, AS
AMENDED, RELATING TO THE DEFINITION OF GROSS
PROCEEDS OF SALES FOR PURPOSES OF THE SALES AND USE
TAX, SO AS TO EXCLUDE FROM THE DEFINITION CERTAIN
SOLID WASTE FEES.
Be it enacted by the General Assembly of the State of South
Carolina:
Tax returns
SECTION 1. A. The 1976 Code is amended by adding:
"Section 12-2-75. (A) Returns filed by taxpayers under Section
12-6-4910 must be signed by the following:
(1) corporate returns by an authorized officer of the corporation;
(2) partnership returns by a general partner;
(3) trust and estate returns by the trustee, personal representative,
executor, or administrator, whichever is applicable;
(4)(a) except as provided in subsections (b) and (c), individual
returns must be signed by the individual;
(b) deceased individual returns for individuals who would have
been required to file a state tax return while living by the personal
representative, administrator, or executor of the decedent's estate and the
tax must be levied upon and collected from the estate;
(c) if an individual is unable to make a return or payment,
including an estimated tax payment, it must be made by an authorized
agent, a guardian, or other person charged with the conduct of the
business of the taxpayer.
(B) The department may authorize taxpayers to sign returns by other
means, including electronically."
B. This section is effective for tax years beginning after 1995.
Bond
SECTION 2. Section 12-4-310(7) of the 1976 Code, as last amended by
Act 168 of 1991, is further amended to read:
"(7) require those of its officers, agents, and employees it
designates to give bond for the honest performance of their duties in the
sum and with the sureties it determines; and all premiums on the bonds
must be paid by the commission;"
Innocent spouse
SECTION 3. A. Section 12-6-50(14) of the 1976 Code, as added by
Act 76 of 1995, is amended to read:
"(14) Sections 2001 through 7655, 7801 through 7871, and
8001 through 9602, except for Sections 6654 and 6655 which are
adopted as provided in Section 12-6-3910."
B. This section is effective for tax years beginning after 1995.
Penalties
SECTION 4. Section 12-31-60 of the 1976 Code, as added by Part II,
Act 145 of 1995, is amended to read:
"Section 12-31-60. Penalties and interest provided under the
International Fuel Tax Agreement apply to all reports filed with the State
as a result of the International Fuel Tax Agreement. These penalties are
in lieu of the penalties imposed under Section 12-54-40(b)(1), (b)(2)(a),
or (b)(2)(6) and the interest imposed under Section 12-54-25."
Retail sale
SECTION 5. Section 12-36-110(1)(f) of the 1976 Code is amended to
read:
"(f) (Reserved);"
Wholesale sale
SECTION 6. Section 12-36-120 of the 1976 Code, as last amended by
Act 361 of 1992, is further amended by adding:
"(5) food or drink products to licensed retail merchants for use
as ingredients in preparing ready-to-eat food or drink sold at retail.
These products include cooking oil used as an ingredient. However,
items used or consumed by licensed retail merchants to prepare
ready-to-eat food or drink, such as hickory chips, barbecue briquettes,
gas, or electricity are subject to tax."
Casual excise tax
SECTION 7. Section 12-36-1710(B)(1)(d) of the 1976 Code is amended
to read:
"(d) transferred to a licensed motor vehicle or motorcycle
dealer for the purpose of resale;"
Sales tax cap
SECTION 8. The second paragraph of Section 12-36-2110(A) of the
1976 Code is amended to read:
"In the case of a lease, the total tax rate required by law applies
on each payment until the total tax paid equals three hundred dollars.
Nothing in this section prohibits a taxpayer from paying the total tax due
at the time of execution of the lease, or with any payment under the
lease. To qualify for the tax limitation provided by this section, a lease
must be in writing and specifically state the term of, and remain in force
for, a period in excess of ninety continuous days."
Sales tax exemptions
SECTION 9. Section 12-36-2120(28)(b) of the 1976 Code is amended to
read:
"(b) hypodermic needles, insulin, alcohol swabs, blood sugar
testing strips, monolet lancets, dextrometer supplies, blood glucose
meters, and other similar diabetic supplies sold to diabetics under the
authorization and direction of a physician;"
Sales tax exemptions
SECTION 10. Section 12-36-2120(29) of the 1976 Code is amended to
read:
"(29) tangible personal property purchased by persons under a
written contract with the federal government when the contract
necessitating the purchase provides that title and possession of the
property is to transfer from the contractor to the federal government at
the time of purchase or subsequent to the time of purchase. This
exemption also applies to purchases or tangible personal property used to
fabricate, assemble, construct, or modify personal or real property when
title and possession of the property fabricated, assembled, constructed, or
modified is transferred to the federal government as required by a written
contract necessitating the purchase;"
Real estate sales
SECTION 11. Section 12-39-260 of the 1976 Code is amended to
read:
"Section 12-39-260. (A) Each county auditor shall keep a
record of all sales or conveyances of real property made in the county, in
which he shall enter, in columns, the names of the purchaser and seller,
the quantity of land conveyed and the location and price of such land,
and from such record he shall correct the county duplicates annually.
For the purpose of carrying out this provision, the clerk of courts or
register of mesne conveyances of each county shall have the endorsement
of the county auditor on each deed of conveyance for real property that
the conveyance has been entered in his office before such deed can be
placed on record in the recording office, and the county auditor shall be
entitled to a fee of twenty-five cents, for his own use, for making such
entry and endorsement.
(B) The Department of Revenue and Taxation may approve other
means and methods of processing and accounting for the accurate and
timely recording of sales, transfers, and other conveyances of real
property."
Innocent spouse
SECTION 12. Section 12-54-35 of the 1976 Code, as added by Act 349
of 1988, is amended to read:
"Section 12-54-35. A. Section 6013(e) of the Internal Revenue
Code as defined in Section 12-6-40, applies in the determination of the
liabilities of a spouse, except as follows:
(1) a `substantial understatement' is any understatement regardless of
amount; and
(2) there is no requirement that the liability for tax exceed a specified
percentage of the spouse's income."
B. This section is effective for tax years beginning after 1995.
Penalties
SECTION 13. Section 12-54-50 of the 1976 Code, as last amended by
Act 168 of 1991, is further amended to read:
"Section 12-54-50. When the bank on which an uncertified
check or electronic payment tendered to the department in payment of an
obligation due to the department refuses payment of the check or
electronic payment on account of insufficient funds of the drawer in the
bank and the check or electronic payment is returned to the department, a
penalty of fifteen dollars must be imposed. This penalty is in addition to
and separate from any other penalty that may be imposed by the
department. This section applies to all taxes or license fees levied or
assessed by the department."
Name revised
SECTION 14. Section 12-54-90(A) of the 1976 Code, as amended by
Act 188 of 1989, is further amended to read:
"(A) When a person fails, neglects, violates, or refuses to
comply with a provision of law or regulation administered by the
department, the department, in its discretion, may revoke one or more
licenses held by the taxpayer within ten days of notification in writing of
the taxpayer's failure to comply. The notification may be served by
certified mail or personally."
Records
SECTION 15. Section 12-54-210 of the 1976 Code, as last amended by
Act 76 of 1995, is further amended to read:
"Section 12-54-210. (A) A person liable for a tax, license, fee,
or surcharge administered by the department or for the filing of a return,
including information returns, required by this title shall keep books,
papers, memoranda, records, render statements, make returns, and comply
with regulations as the department prescribes. Persons failing to comply
with the provisions of this section must be penalized in an amount to be
assessed by the department not to exceed five hundred dollars for the
period covered by the return in addition to other penalties provided by
law.
(B) Microfilm reproductions of supporting record of details including,
but not limited to, documents of original entry, purchase orders, invoices,
checks, vouchers, and payroll records may be retained in lieu of actual
documents only when the following conditions are met:
(1) the taxpayer retains the microfilm copies as long as the contents
may become material in the administration of any law administered by
the department;
(2) the taxpayer provides appropriate facilities for preservation of
the films and for the ready inspection and location of the particular
records, including a projector for viewing the records if inspection is
necessary; and
(3) the taxpayer is ready to make transcripts of the information
contained on the microfilm."
Repeal
SECTION 16. Section 12-6-5040 of the 1976 Code is repealed.
Property tax exemptions
SECTION 17. Section 12-37-220(B)(26), (29), and (38) of the 1976
Code, as last amended by Act 125 of 1995, is further amended to
read:
"(26) Two personal motor vehicles owned or leased by
recipients of the Medal of Honor.
(29) Two personal motor vehicles or trucks, not exceeding
three-quarter ton, owned or leased by and licensed and registered in the
name of any member or former member of the armed forces who was a
prisoner of war (POW) in World War I, World War II, the Korean
Conflict, or the Vietnam Conflict and who is a legal resident of this
State. This exemption also extends to the surviving spouse of a qualified
former POW for the lifetime or until the remarriage of the surviving
spouse.
(38) Watercraft and motors which have an assessment of not more
than fifty dollars."
Watercraft trailers exempt
SECTION 18. Section 12-37-220(B) of the 1976 Code is amended by
adding an appropriately numbered item at the end to read:
"( ) watercraft trailers."
Refunds
SECTION 19. Section 12-37-252 of the 1976 Code is amended to
read:
"Section 12-37-252. (A) Notwithstanding any other provision of
law, property that qualifies for the homestead exemption pursuant to
Section 12-37-250 is classified and taxed as residential on an assessment
equal to four percent of the property's fair market value. Any
agriculturally classified lands that are a part of the homestead must be
taxed on an assessment equal to four percent of the lands' value for
agricultural purposes. The county auditor shall notify the county assessor
of the property so qualifying and no further application is required for
such classification and taxation.
(B) When a person qualifies for a refund pursuant to Sections
12-60-2560 and 12-43-220(c) for prior years' eligibility for the four
percent owner-occupied residential assessment ratio, the person also may
be certified for a homestead tax exemption pursuant to Section
12-37-250. This refund does not extend beyond the immediate preceding
tax year. The refund is an exception to the limitations imposed by
Section 12-60-1750."
Reimbursements
SECTION 20. Section 12-37-275 of the 1976 Code is amended to
read:
"Section 12-37-275. Notwithstanding any other provision of
law, requests for reimbursement for taxes not collected the previous year
must not be received by the Comptroller General before January first.
These requests must be for the reimbursement of eligible accounts which
accrue before the first penalty date each year. Those eligible accounts
that accrue or are discovered on or after the first penalty date of the tax
year must be submitted to the Comptroller General in the next year's
reimbursement request. These requests do not extend beyond the
immediate preceding tax year."
Liability for tax
SECTION 21. Section 12-37-610 of the 1976 Code is amended to
read:
"Section 12-37-610. Every person is liable to pay taxes and
assessments on the real estate which he owns or may have the care of as
guardian, executor, trustee, or committee."
Value
SECTION 22. A. The first paragraph immediately preceding the
Schedule of Section 12-37-930 of the 1976 Code, as last amended by Act
69 of 1995, is further amended to read:
"All property must be valued for taxation at its true value in
money which in all cases is the price which the property would bring
following reasonable exposure to the market, where both the seller and
the buyer are willing, are not acting under compulsion, and are
reasonably well informed of the uses and purposes for which it is adapted
and for which it is capable of being used. The fair market value for
vehicles, watercraft, and aircraft must be based on values derived from a
nationally recognized publication of vehicle valuations, except that the
value may not exceed ninety-five percent of the prior year's value.
However, acreage allotments or marketing quota allotments for a
commodity established under a program of the United States Department
of Agriculture is classified as incorporeal hereditaments and the market
value of real property to which they are attached may not include the
value, if any, of the acreage allotment or marketing quota. Fair market
value of manufacturer's machinery and equipment used in the conduct of
the manufacturing business, excluding vehicles, watercraft, and aircraft
required to be registered or licensed by a state or federal agency, must be
determined by reducing the original cost by an annual allowance for
depreciation as stated in the following schedule."
B. This section is effective for tax years beginning after 1996.
Reassessment
SECTION 23. Section 12-43-217 of the 1976 Code, as added by Section
119(C), Part II, Act 145 of 1995, is amended to read:
"Section 12-43-217. Notwithstanding any other provision of
law, once every fifth year each county or the State shall appraise and
equalize those properties under its jurisdiction. Property valuation must
be complete at the end of December of the fourth year and the county or
State shall notify every taxpayer of any change in value or classification
if the change is one thousand dollars or more. In the fifth year, the
county or State shall implement the program and assess all property on
the newly appraised values."
Legal residence
SECTION 24. A. Section 12-43-220(c) of the 1976 Code, as last
amended by Act 145 of 1995, is further amended to read:
"(c)(1) The legal residence and not more than five acres
contiguous thereto, when owned totally or in part in fee or by life estate
and occupied by the owner of the interest, is taxed on an assessment
equal to four percent of the fair market value of the property. If
residential real property is held in trust and the income beneficiary of the
trust occupies the property as a residence, then the assessment ratio
allowed by this item applies if the trustee certifies to the assessor that the
property is occupied as a residence by the income beneficiary of the trust.
When the legal residence is located on leased or rented property and the
residence is owned and occupied by the owner of a residence on leased
property, even though at the end of the lease period the lessor becomes
the owner of the residence, the assessment for the residence is at the
same ratio as provided in this item. If the lessee of property upon which
he has located his legal residence is liable for taxes on the leased
property, then the property upon which he is liable for taxes, not to
exceed five acres contiguous to his legal residence, must be assessed at
the same ratio provided in this item. If this property has located on it
any rented mobile homes or residences which are rented or any business
for profit, this four percent value does not apply to those businesses or
rental properties. For purposes of the assessment ratio allowed pursuant
to this item, a residence does not qualify as a legal residence unless the
residence is determined to be the domicile of the owner-applicant. A
taxpayer may receive the four percent assessment ratio on only one
residence for a tax year.
(2)(i) To qualify for the special property tax assessment ratio allowed
by this item, the owner-occupant must have actually owned and occupied
the residence as his legal residence and been domiciled at that address for
some period during the applicable tax year and remain in that status at
the time of filing the application required by this item.
(ii) This item does not apply unless the owner of the property or the
owner's agent applies for the four percent assessment ratio before the
first penalty date for the payment of taxes for the tax year for which the
owner first claims eligibility for this assessment ratio. In the application
the owner or his agent must certify to the following statement:
`Under penalty of perjury I certify that:
(A) the residence which is the subject of this application is my
legal residence and where I am domiciled; and
(B) that neither I nor any other member of my household own any
other residence in South Carolina which currently receives the
owner-occupant four percent assessment ratio.'
(iii) For purposes of subitem (ii)(B) of this item, `a member of my
household' means:
(A) the owner-occupant's spouse, except when that spouse is
legally separated from the owner-occupant; and
(B) any child of the owner-occupant claimed or eligible to be
claimed as a dependent on the owner-occupant's federal income tax
return.
(iv) In addition to the certification, the burden of proof for
eligibility for the four percent assessment ratio is on the owner-occupant
and the applicant must provide proof the assessor requires including, but
not limited to:
(A) a copy of the owner-occupant's most recently filed South
Carolina individual income tax return;
(B) copies of South Carolina motor vehicle registrations for all
motor vehicles registered in the name of the owner-occupant.
(C) other proof required by the assessor necessary to determine
eligibility for the assessment ratio allowed by this item.
If the assessor determines the owner-occupant ineligible, the six
percent property tax assessment ratio applies and the owner-occupant
may appeal the classification as provided in Chapter 60 of this title.
(v) A member of the armed forces of the United States on active
duty who is a legal resident of and domiciled in another state is
nevertheless deemed a legal resident and domiciled in this State for
purposes of this item if the member's permanent duty station is in this
State. A copy of the member's orders filed with the assessor is
considered proof sufficient of the member's permanent duty station.
(vi) No further applications are necessary from the current owner
while the property for which the initial application was made continues to
meet the eligibility requirements. If a change in ownership occurs,
another application is required. The owner shall notify the assessor of
any change in classification within six months of the change.
(vii) If a person signs the certification, obtains the four percent
assessment ratio, and is thereafter found not eligible, or thereafter loses
eligibility and fails to notify the assessor within six months, a penalty is
imposed equal to one hundred percent of the tax paid, plus interest on
that amount at the rate of one-half of one percent a month, but in no case
less than thirty dollars nor more than the current year's taxes. This
penalty and any interest are considered ad valorem taxes due on the
property for purposes of collection and enforcement.
(viii) Failure to file within the prescribed time constitutes
abandonment of the owner's right for this classification for the current
tax year, but the local taxing authority may extend the time for filing
upon a showing satisfactory to it that the person had reasonable cause for
not filing before the first penalty date.
(3) Notwithstanding any other provision of law, a taxpayer may apply
for a refund of property taxes overpaid because the property was eligible
for the legal residence assessment ratio. The application must be made in
accordance with Section 12-60-2560. The taxpayer must establish that
the property in question was in fact his legal residence and where he was
domiciled. A county council, by ordinance, may allow refunds for the
county government portion of property taxes for such additional past
years as it determines advisable.
(4) A legal residence qualifying for the four percent assessment ratio
provided by this item must have an assessed value of not less than one
hundred dollars."
B. Subsection A of this section is effective for tax years beginning after
1996 and applies for changes in ownership or classification occurring
after 1996.
Value
SECTION 25. Section 12-43-220(d)(4)(A) of the 1976 Code is amended
to read:
"(A) the fair market value without consideration of the standing
timber of such real property under the valuation standard applicable to
other real property in the same classification;"
Delinquent taxes
SECTION 26. Section 12-51-40(b) of the 1976 Code is amended to
read:
"(b) If the taxes remain unpaid after thirty days from the date
of mailing of the delinquent notice, or as soon thereafter as practicable,
take exclusive possession of so much of the defaulting taxpayer's
property as is necessary to satisfy the payment of the taxes, assessments,
penalties, and costs may be taken. In the case of real property, exclusive
possession is taken by mailing a notice of delinquent property taxes,
assessments, penalties, and costs to the defaulting taxpayer at the address
shown on the tax receipt or to a more correct address known to the
officer, by `certified mail, return receipt requested-deliver to addressee
only'. In the case of personal property, exclusive possession is taken by
mailing the notice of delinquent property taxes, assessments, penalties,
and costs to the person at the address shown on the tax receipt or to a
more correct address known to the officer. All delinquent notices shall
specify that if the taxes, assessments, penalties, and costs are not paid
before a subsequent sales date, the property must be duly advertised and
sold for delinquent property taxes, assessments, penalties, and costs. The
return receipt of the `certified mail' notice is equivalent to `levying by
distress'."
Bids
SECTION 27. Section 12-51-55 of the 1976 Code, as added by Act 90
of 1995, is amended to read:
"Section 12-51-55. The officer charged with the duty to sell real
property and mobile or manufactured housing for nonpayment of ad
valorem property taxes shall submit a bid on behalf of the forfeited land
commission equal to the amount of all unpaid property taxes, penalties,
and costs including taxes levied for the year in which the redemption
period begins. If the forfeited land commission determines real property
on which delinquent taxes are due may be contaminated, the commission
must annually notify the delinquent tax collector in writing before
ordering a tax sale. A bid is not required on behalf of the forfeited land
commission on this property. If the property is not redeemed, the excess
above the amount of taxes, penalties, and costs for the year in which the
property was sold must first be applied to the taxes becoming due during
the redemption period."
Reassessment
SECTION 28. Section 12-60-2510(A)(1) of the 1976 Code, as added by
Act 60 of 1995, is amended to read:
"(1) In the case of property tax assessments made by the county
assessor, (a) whenever the assessor increases the fair market or special
use value in making a property tax assessment by one thousand dollars or
more, or (b) whenever the first property tax assessment is made on the
property by a county assessor, the assessor, on or before July first in the
year in which the property tax assessment is made, or as soon thereafter
as practical, shall send the taxpayer a property tax assessment notice. In
years when real property is appraised and assessed under a county
equalization program, substantially all property tax assessment notices
must be mailed by February first of the implementation year. In these
reassessment years, if substantially all of the tax assessment notices are
not mailed by February first, the prior year's property tax assessment
must be the basis for all property tax assessments for the current tax year.
A property tax assessment notice under this subsection must be in writing
and must include:
(a) the fair market value;
(b) the special use value, if applicable;
(c) the assessment ratio;
(d) the property tax assessment;
(e) the percentage change over the prior market value, if there is no
change in use or physical characteristics of the property;
(f) the number of acres or lots;
(g) the location of the property;
(h) the tax map number; and
(i) the appeal procedure."
Appeals
SECTION 29. Section 12-60-2910(A) of the 1976 Code, as added by
Act 60 of 1995, is amended to read:
"(A) A property taxpayer may object to a personal property tax
assessment or a denial of a homestead exemption made by the county
auditor by requesting in writing to meet with the auditor at any time on
or before the last day the tax levied upon the assessment can be timely
paid."
Notice of excess
SECTION 30. Section 12-51-60 of the 1976 Code, as last amended by
Act 296 of 1994, is further amended to read:
"Section 12-51-60. The successful bidder at the delinquent tax
sale shall pay legal tender to the person officially charged with the
collection of delinquent taxes in the full amount of the bid on the day of
the sale. Upon payment, the person officially charged with the collection
of delinquent taxes shall furnish the purchaser a receipt for the purchase
money and attach a copy of the receipt to the execution with the
endorsement of his actions which must be retained by him. Expenses of
the sale must be paid first and the balance of all delinquent tax sale
monies collected must be turned over to the treasurer. Upon receipt of
the funds, the treasurer shall immediately mark the public tax records
regarding the property sold as follows: Paid by tax sale held on (insert
date). All other monies received, including any excess due the defaulting
taxpayer after payment of delinquent taxes, assessments, penalties, and
costs, must be retained, paid out, and accounted for by the delinquent tax
collector. Once a tax deed has been issued, the defaulting taxpayer must
be notified in writing by the delinquent tax collector of any excess due
the taxpayer. The notice must be addressed and mailed to the defaulting
taxpayer in the manner provided in Section 12-51-40(b) for taking
exclusive possession of real property. Expenses of providing this notice
are considered costs of the sale for purposes of determining the amount,
if any, of the excess."
Notice
SECTION 31. Section 12-51-120 of the 1976 Code is amended to
read:
"Section 12-51-120. Neither more than forty-five days nor less
than twenty days prior to the end of the redemption period for real estate
sold for taxes, the person officially charged with the collection of
delinquent taxes shall mail a notice by `certified mail, return receipt
requested- restricted delivery' to the owner of record immediately
preceding the end of the redemption period at the best address of the
owner available to the person officially charged with the collection of
delinquent taxes that the real property described on the notice has been
sold for taxes and if not redeemed by paying taxes, assessments,
penalties, costs and interest at the applicable rate on the bid price in the
total amount of --- dollars on or before ---- (twelve months from date of
sale)
(date) -----,
a tax title will be delivered to the successful purchaser at the tax sale.
Under this chapter, the return of the certified mail `undelivered' is not
grounds for a tax title to be withheld or be found defective and ordered
set aside or canceled of record."
Exemption
SECTION 32. A. Section 12-37-220(A)(8) of the 1976 Code, as last
amended by Section 100A, Part II, Act 497 of 1994, is further amended
to read:
"(8) all facilities or equipment of industrial plants which are
designed for the elimination, mitigation, prevention, treatment, abatement,
or control of water, air, or noise pollution, both internal and external,
required by the state or federal government and used in the conduct of
their business. At the request of the Department of Revenue and
Taxation, the Department of Health and Environmental Control shall
investigate the property of any manufacturer or company, eligible for the
exemption to determine the portion of the property that qualifies as
pollution control property. Upon investigation of the property, the
Department of Health and Environmental Control shall furnish the
Department of Revenue and Taxation with a detailed listing of the
property that qualifies as pollution control property. For equipment that
serves a dual purpose of production and pollution control, the value
eligible for the ad valorem exemption is the difference in cost between
this equipment and equipment of similar production capacity or capability
without the ability to control pollution. For the purposes of this item,
twenty percent of the cost of any piece of machinery and equipment
placed in service in a greige mill qualifies as internal air and noise
pollution control property and is exempt from property taxes. `Greige
mill' means all textile processes from opening through fabric formation
before dyeing and finishing;"
B. This section takes effect upon approval by the Governor and applies
for property for tax years beginning after 1993.
Tax returns
SECTION 33. Section 12-54-250(D) of the 1976 Code, as amended by
Act 181 of 1993, is further amended to read:
"(D) The department may prescribe alternative means other than
paper to file returns and reporting documents necessary for the
administration of this section.
(E) Payment by immediately available funds and filing of the return
are considered simultaneous acts with respect to penalties and interest for
failure to file and failure to pay. Penalties and interest must be
calculated based on the later of the return postmark date or payment
date."
Bingo
SECTION 34. A. The 1976 Code is amended by adding:
"Section 12-21-3920. As used in this article:
(1) `Bingo' or `game' means a specific game of chance, commonly
known as bingo, in which prizes are awarded on the basis of designated
numbers or symbols on a card conforming to numbers and symbols
selected at random.
(2) `Department' means the South Carolina Department of Revenue
and Taxation.
(3) `Card' means a printed or nonprinted design on which there are
arranged five horizontal rows and five vertical columns forming
twenty-five squares. Numbers are printed in twenty-four of the squares,
and the term `free', `free square', or `free space' is printed in the square
or space located in the center of the card. The five columns are
denominated from left to right by the respective letters of the word
`B-I-N-G-O'. Each square in the `B' column contains a number from
one through fifteen inclusive; each square in the `I' column contains a
number from sixteen through thirty inclusive; except for the center space
which is marked as free, each square in the `N' column contains a
number from thirty-one through forty-five inclusive; each square in the
`G' column contains a number from forty-six through sixty inclusive; and
each square in the `O' column contains a number from sixty-one through
seventy-five inclusive. No number may appear twice on the same
card.
(4) `Promoter' means an individual, corporation, partnership, or
organization who is hired by a nonprofit organization to manage, operate,
or conduct the licensee's bingo game. The person hired under written
contract is considered the promoter.
(5) `Nonprofit organization' means an entity which is organized and
operated exclusively for charitable, religious, or fraternal purposes which
is exempt from federal income taxes pursuant to Internal Revenue Code
Section 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19).
(6) `Session' means a consecutive series of games which must occur
only between one o'clock p.m. and one o'clock a.m. No more than one
session may occur during the permitted twelve-hour period. These
limitations do not apply to games operated by state or county fairs.
(7) `Fair' means a recognized annual state or county fair. The fair
must be recognized by the governing body of the county in which it is
held, or in the case of the State, by the South Carolina Agricultural and
Mechanical Society.
(8) `Ball' means a ball, disk, square, or other object upon which is
printed a letter and number which corresponds to the letter and number
of a square on a bingo card.
(9) `Cage' means a device, whether operated manually or by air
blower, in which bingo balls are placed before the bingo game
begins.
(10) `Caller' means the house representative who is responsible for
drawing bingo balls and announcing the configuration and the result of
each drawing to the players.
(11) `Drawing' means the indiscriminate selection of a single ball
from the cage.
(12) `House' means the nonprofit organization and promoter licensed
with the department.
(13) `Marker' means a device which indicates the number called.
(14) `Master-board' means the receptacle used by the house to display
balls which are drawn during the bingo game.
(15) `Player' means one who participates in a game of bingo other
than as an agent, promoter, or representative of the house.
(16) `Fund' means the Parks and Recreation Development Fund.
(17) `Building' means a structure surrounded by exterior walls or
permanent firewalls.
(18) `Manufacturer' means a person who manufactures bingo cards
for use in this State and who is approved by the department.
(19) `Distributor' means a person who brings or sells bingo cards in
this State and who is approved by the department.
Section 12-21-3940. (A) Before conducting a game of bingo, a
nonprofit organization shall file with the department a written application
in a form prescribed by the department, executed, and notarized which
must include:
(1) the name, address, and telephone number of the applicant and
sufficient facts relating to its incorporation and organization to enable the
department to determine whether it is an authorized organization;
(2) a copy of the organization's corporate charter and the Internal
Revenue Service's statement exempting the applicant from federal
income taxes;
(3) the names, addresses, and telephone numbers of the
organization's officers;
(4) the place and time the applicant intends to conduct bingo under
the license for which it applied;
(5) the specific purpose to which the bingo net proceeds are to be
devoted;
(6) the designation of a `promoter' as defined by this article;
(7) a copy of any contract or lease between a promoter and the
nonprofit organization;
(8) the name, address, telephone number, birth date, and Social
Security number of each person who will work at the proposed bingo
games and receive compensation for the work, the nature of the work to
be performed, and a statement as to whether or not the person has been
convicted within the last twenty years of a state or federal felony,
gambling offense, criminal fraud, or a crime that has a sentence of two
or more years;
(9) other information considered necessary by the department.
(B) Upon application for a license, the department has thirty days to
approve or reject the application based on the requirements of this
article.
(C) The nonprofit organization does not need to apply for renewal of
the license as long as there are no changes in the operation or location of
the game. Changes in information supplied on the original application
must be forwarded to the department, in writing, within thirty days of the
change. In the case of a change in the place and time, notice must be
given thirty days before the change.
Section 12-21-3950. (A) A promoter under contract with a licensed
nonprofit organization to manage, operate, or conduct a game shall file a
written application for a promoter's license in a form prescribed by the
department, executed, and notarized, which must include:
(1) the name, address, telephone number, and Social Security
number of the promoter or of each officer if the promoter is a
corporation;
(2) a copy of the promoter's contract or lease with the nonprofit
organization. A contract must exist between the sponsoring organization
and the promoter detailing all expenses;
(3) the name, address, telephone numbers, and Social Security
number of any person working for the promoter at the bingo game and
receiving compensation for the work;
(4) a notarized statement as to whether or not the applicant for a
promoter's license or any of his employees have been convicted within
the last twenty years of a state or federal felony, gambling offense,
criminal fraud, or a crime that has a sentence of two or more years.
(B) Upon application for a license, the department has thirty days to
approve or reject the application based on the requirements of this
article.
(C) A promoter shall file a renewal application each year submitting
any changes in information and documentation previously submitted as
required by this section. The promoter is required to notify the
department, in writing, of any changes in the information supplied on the
application within thirty days of the change.
(D) The license authorized by this section is for the privilege of
engaging in business as a bingo promoter and must be purchased from
the department at a cost of one thousand dollars a year.
A promoter shall obtain a promoter's license for each organization for
which he operates bingo games.
Section 12-21-4060. A person who has been convicted within the last
twenty years of violating a state or federal criminal statute relating to
gaming or gambling, or who has been convicted of any other crime that
has a sentence of two or more years, or where applicable, whose
promoter's license has been revoked by the department is not permitted
to manage or conduct a game or assist in any manner with the bingo
operation.
B. It is the intent of the General Assembly that the provisions of
Sections 12-21-3920, 12-21-3940, 12-21-3950, and 12-21-4060 of the
1976 Code, as added by this section, supersede the provisions of those
sections of the 1976 Code as they may be added by any other enactment
in the 1996 session of the General Assembly.
C. This section takes effect October 1, 1997.
Bingo
SECTION 35. A. Section 12-6-1140 of the 1976 Code, as last amended
by an act of 1996 bearing ratification number 382, is further amended by
deleting the unnumbered item added by Section 2 of that act, which
reads:
"( ) Bingo prizes and winnings as allowed under the game of
bingo provided in Article 24, Chapter 21 of this title."
B. Article 24, Chapter 21, Title 12 of the 1976 Code, as added by an
act of 1996 bearing ratification number 382, is amended by adding:
"Section 12-21-3955. If a nonprofit organization intending to
operate a Class AA or B license does not contract with an outside
promoter, the organization shall designate a member as the
promoter."
C. Section 12-21-4000(5) of the 1976 Code, as added by an act of 1996
bearing ratification number 382, is amended to read:
"(5) Reserved"
D. Section 12-21-4030(A) of the 1976 Code, as added by an act of 1996
bearing ratification number 382, is amended to read:
"(A) A promoter or organization may not impose a charge,
other than as provided in subsection (B), on a player of more than the
face value of each card sold to play bingo."
E. Subsection A of this section takes effect upon approval by the
Governor. The remaining subsections take effect October 1, 1997.
Gross proceeds
SECTION 36. A. Section 12-36-90(2) of the 1976 Code, as last
amended by Act 497 of 1994, is further amended by adding an
appropriately lettered subitem to read:
"( ) fees imposed on the sale of motor oil, new tires, lead-acid
batteries, and white goods pursuant to Article 1, Chapter 96 of Title 44,
including the refundable deposit when a lead-acid battery core is not
returned to a retailer."
B. This section takes effect July 1, 1996.
Time effective
SECTION 37. Except where otherwise provided, this act takes effect
upon approval by the Governor.
Approved the 19th day of June, 1996. |