Bill 3195

                    Current Status

Bill Number:               3195
Ratification Number:       157
Act Number                 100
Introducing Body:          House
Subject:                   Relating to the tax on workers'
                           compensation insurers

(A100, R157, H3195)

AN ACT TO AMEND SECTION 38-7-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TAX ON WORKERS' COMPENSATION INSURERS, SO AS TO PROVIDE THAT FOR FISCAL YEAR 1990-91 THE TAX IS AT THE RATE OF THREE AND ONE-HALF PERCENT OF THE AMOUNT OF THE PREMIUMS RECEIVED FOR WORKERS' COMPENSATION INSURANCE AND FOR FISCAL YEAR 1991-92 AND AFTERWARD THE TAX IS AT THE RATE OF TWO AND ONE-HALF PERCENT OF THE AMOUNT OF THE PREMIUMS; AND TO AMEND SECTION 42-5-190, RELATING TO THE TAX ON SELF-INSURERS UNDER THE WORKERS' COMPENSATION LAW, SO AS TO PROVIDE THAT FOR FISCAL YEAR 1990-91 THE MAINTENANCE TAX IS AT THE RATE OF THREE AND ONE-HALF PERCENT AND FOR FISCAL YEAR 1991-92 AND AFTERWARD THE TAX IS AT THE RATE OF TWO AND ONE-HALF PERCENT.

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

Tax rate lowered; workers' compensation insurers

SECTION 1. Section 38-7-50 of the 1976 Code is amended to read:

"Section 38-7-50. Every insurer insuring employers in this State against liability for personal injuries to their employees or death caused by the injuries, under the provisions of Title 42, shall pay a tax upon the premiums received whether in cash or notes in this State, or on account of business done in this State, for such insurance in this State at the rate of four and one-half percent of the amount of the premiums. For fiscal year 1990-91, the tax is at the rate of three and one-half percent of the amount of the premiums. For fiscal year 1991-92 and thereafter, the tax is at the rate of two and one-half percent of the amount of the premiums. This tax is in lieu of all other taxes on these premiums and must be assessed and collected as provided in this chapter. However, the insurers must be credited with all canceled or returned premiums actually refunded during the year on workers' compensation insurance including any unused premiums refunded or credited to policyholders as dividends.

If an insurer fails or refuses to make the return required by Section 38-7-60, the commissioner shall assess the tax against the insurer at the rate provided for in this chapter on the amount of premiums he considers just and the proceedings thereon must be the same as if the return had been made."

Tax rate lowered; self-insurers

SECTION 2. Section 42-5-190 of the 1976 Code is amended to read:

"Section 42-5-190. Every employer carrying his own risk under the provisions of Section 42-5-20 shall report under oath to the South Carolina Workers' Compensation Commission his actual cost incurred under the provisions of this title. The report must be made in the form prescribed by the commission and at the time provided by law for premium reports by insurance carriers. The commission shall assess against the actual cost incurred a maintenance tax computed by taking four and one-half percent of the actual cost of operating under the provisions of this title as determined by the commission. For fiscal year 1990-91, the maintenance tax is at the rate of three and one-half percent. For fiscal year 1991-92 and thereafter, the maintenance tax is at the rate of two and one-half percent. The assessments must be paid to the commission which, in turn, shall deposit them with the State Treasurer."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.