Bill 692

                    Current Status

Bill Number:               692
Ratification Number:       535
Act Number                 428
Introducing Body:          Senate
Subject:                   Relating to the soft drinks tax

(A428, R535, S692)

AN ACT TO AMEND SECTION 12-21-2120, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOFT DRINKS TAX, SO AS TO PROVIDE THAT THE PENALTY FOR FAILURE TO FILE MONTHLY REPORTS OF ALL BOTTLED SOFT DRINKS SOLD OR DISPOSED OF IN THIS STATE IN COMPLIANCE WITH SUCH SECTION SHALL BE TWENTY-FIVE PERCENT OF THE TAXES REQUIRED TO BE PAID AND INTEREST AT THE RATE OF ONE PERCENT PER MONTH OR FRACTION OF A MONTH INSTEAD OF ONE-QUARTER OF ONE PERCENT OF THE AMOUNT OF TAXES DUE AND UNPAID OR UNREPORTED FOR EACH DAY THE TAX REMAINS UNPAID OR UNREPORTED.

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

Soft drink license taxes

Section 1. Section 12-21-2120 of the 1976 Code is amended to read:

"Section 12-21-2120. Instead of paying the tax levied in this article in the manner provided, any manufacturing plant which qualifies for the crown tax exemption and reduced rates under Section 12-21-2050 may pay the tax in the following manner, with respect to bottled soft drinks:

Beginning with soft drink license taxes collected and paid after December 31, 1975, on bottled soft drinks, such manufacturing plants subject to the tax shall make a report to the Commission, in such form as the Commission may prescribe, of all bottled soft drinks sold or disposed of within this State by such manufacturing plants, and to pay the taxes due thereon at the same rates as provided in Section 12-21-2030 not later than the twentieth of the month following the sale of such bottled soft drinks, except that the initial report shall be made on or before January 20, 1976, based on sales for the month of December, 1975. A credit shall be allowed in an amount equal to the sum of the license taxes levied and paid on the January, 1976, return and the dollar value of all crowns and lids and stamps owned on December 31, 1975, against the tax as shown to be due on the January, 1976, return, and returns thereafter required to be filed, such credit being limited however on any monthly return to the amount of the tax increase for the fiscal year to date over the tax actually paid for the corresponding period for the previous fiscal year. If any credit is still due on July 1, 1977, the manufacturer may deduct one-twelfth of such deduction monthly for the next twelve months. Each manufacturing plant filing and paying taxes under this section shall file with the Commission an affidavit showing the total amount of crowns, lids and stamps in its possession on December 31, 1975, for which it intends to receive credit, on or before January 20, 1976. The deduction for crowns, lids and stamps shall be allowed only upon delivery to the Commission of documents of title to such crowns, lids and stamps. Any person who fails to file the report or to pay the tax as prescribed herein shall pay in addition to the tax required to be paid a penalty of twenty-five percent of the tax and interest at the rate of one percent per month or fraction thereof. The interest provided for in this section shall be computed from the date the tax was originally due to the date of payment. The penalties and interest shall be assessed and collected by the Commission in the manner as other taxes are assessed and collected. The Commission may grant any person an extension of time for filing the report and paying the taxes and interest as prescribed herein. Any person filing reports and paying taxes under this section shall file with the Commission: (a) a corporate surety bond payable to the State in a form approved by the Commission and in an amount to be determined by the Commission with a surety or guaranty company authorized to do business in this State; or (b) deposit with the State Treasurer cash in the same amount of the bond as determined by the Commission; or (c) deposit with the Commission securities approved by the State Treasurer in an amount of value equivalent to the amount of bond determined by the Commission. The bond shall be held by the Commission, without interest, as surety conditioned upon lawful operation of the business of the licensed wholesaler and the prompt payment of all taxes and penalties and interest imposed by the law upon such licensed wholesaler. Any manufacturing soft drink plan located within this State, which does not meet the qualifications set forth in Section 12-21-2050, may file its report in accordance with this section."

Time effective

Section 2. This act shall take effect upon the approval by the Governor.