Current Status Introducing Body:Senate Bill Number:534 Ratification Number:177 Act Number:111 Primary Sponsor:Helmly Type of Legislation:GB Subject:Income tax withholding Companion Bill Number:534 Date Bill Passed both Bodies:May 27, 1991 Computer Document Number:BR1/1031.SD Governor's Action:S Date of Governor's Action:May 31, 1991 Introduced Date:Jan 23, 1991 Date of Last Amendment:Apr 18, 1991 Last History Body:------ Last History Date:May 31, 1991 Last History Type:Act No. 111 Scope of Legislation:Statewide All Sponsors:Helmly Land Rose Passailaigue Long Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
534 ------ May 31, 1991 Act No. 111
534 ------ May 31, 1991 Signed by Governor
534 ------ May 30, 1991 Ratified R 177
534 Senate May 27, 1991 Concurred in House amendment,
enrolled for ratification
534 House Apr 19, 1991 Read third time, returned
with amendment
534 House Apr 18, 1991 Unanimous consent for third
reading on next Legislative
day
534 House Apr 18, 1991 Amended, read second time
534 House Apr 10, 1991 Committee Report: Favorable 30
with amendment
534 House Feb 20, 1991 Introduced, read first time, 30
referred to Committee
534 Senate Feb 19, 1991 Read third time, sent to House
534 Senate Feb 14, 1991 Amended, read second time,
ordered to third reading with
notice of general amendments
534 Senate Feb 13, 1991 Committee Report: Favorable 06
with amendment
534 Senate Jan 23, 1991 Introduced, read first time, 06
referred to Committee
View additional legislative information at the LPITS web site.
(A111, R177, S534)
AN ACT TO AMEND SECTION 12-9-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WITHHOLDING REQUIREMENTS FROM CERTAIN PAYMENTS FOR STATE INCOME TAX PURPOSES, SO AS TO PROVIDE THAT THE EXEMPTION FROM WITHHOLDING REQUIREMENTS OF UTILITIES HIRING OR CONTRACTING WITH NONRESIDENT UTILITIES TO PERFORM SERVICES OF A TEMPORARY NATURE RELATING TO DAMAGE CAUSED BY NATURAL FORCES ALSO INCLUDES ELECTRIC COOPERATIVES AND ALSO APPLIES TO COUNTIES MAKING SUCH PAYMENTS TO A PERSON NOT IN ITS REGULAR EMPLOY, AND TO PROVIDE THAT THESE PROVISIONS RELATING TO COUNTIES ARE RETROACTIVE TO DECEMBER 31, 1988; AND TO ADD SECTION 12-37-905 SO AS TO PROVIDE THAT EVERY PERSON REQUIRED BY LAW TO MAKE A PROPERTY TAX RETURN TO THE COUNTY AUDITOR MUST FILE THE RETURN WITH THE COUNTY AUDITOR ON OR BEFORE APRIL THIRTIETH FOR PROPERTY OWNED AS OF THE PRECEDING DECEMBER THIRTY-FIRST.
Be it enacted by the General Assembly of the State of South Carolina:
Additional withholding exemptions
SECTION 1. Section 12-9-310 of the 1976 Code, as last amended by Act 424 of 1990, is further amended to read:
"Section 12-9-310. (A) Every person, firm, corporation, association, joint-stock company, partnership, fiduciary, or the State of South Carolina, or any political subdivision of the State or any agency or any instrumentality or authority thereof, and any municipality, located within or doing business within the State, having an income within the State or having an employee earning income within this State, or in any manner whatever subject to the jurisdiction of this State, the United States or any political subdivision thereof, or any instrumentality or agency of the United States or any political subdivision thereof, or any other state or political subdivision or instrumentality or agency thereof:
(1) making payment of wages at the rate of eight hundred dollars or more per year subject to withholding shall deduct and withhold upon such wages an estimated income tax determined in accordance with tables and rules promulgated by the commission; but the commission may, in its discretion, exempt an employer from the provisions hereof who makes payment of wages to a legal resident of South Carolina, where such resident is employed in another state having income taxes withheld therein for the other state from the wages of the legal resident of this State;
(2) making payments to a nonresident of rentals or royalties at the rate of eight hundred dollars or more a year for the use of or for the privilege of using property in this State, or making payments of prizes or winnings to a resident or nonresident, shall withhold seven percent of the total amount of each payment. The rental of residential housing units, when four or fewer units are owned by a nonresident, is not subject to withholding under this section. For payments to a corporation the withholding must be at the rate of six percent. In regard to bingo prizes or winnings paid to residents or nonresidents of this State, seven percent of the total amount of each payment of five hundred dollars or more must be withheld. The provisions of this item do not apply to spectator sporting events for which an admission is charged;
(3) hiring or contracting or having a contract with a nonresident taxpayer conducting a business or performing personal services of a temporary nature carried on within this State, where the contract exceeds ten thousand dollars or reasonably could be expected to exceed ten thousand dollars, must withhold two percent of each and every payment made to these nonresidents. This item does not apply to a utility hiring or contracting or having a contract with any nonresident utility or to a county hiring or contracting with a person not in its regular employ to perform services of a temporary nature relating to damage caused by natural forces. For purposes of this item:
(a) `natural forces' means conflagration, flood, storm, earthquake, hurricane, or other public calamity;
(b) `utility' means a person, public utility, electric cooperative, special purpose district, authority, or political subdivision producing, storing, conveying, transmitting, or distributing communication, electricity, gas, water, steam, or sewerage; and
(c) `county' means a county of this State.
This item also does not apply to amounts paid to:
a nonresident contractor performing work under a contract with the South Carolina Department of Highways and Public Transportation; and
a nonresident subcontractor performing work for a contractor who is operating under a contract with the South Carolina Department of Highways and Public Transportation.
(4) making any distribution of South Carolina taxable income to a nonresident beneficiary of any estate or trust shall withhold from the distribution seven percent of the beneficiary's South Carolina taxable income attributable to the distribution. The amounts withheld must be paid over each year to the commission with the annual tax return of the estate or trust. The nonresident beneficiary may claim the amount withheld as a credit against any South Carolina income tax liability and shall receive a refund of any excess. A trust that is exempt from taxation pursuant to Internal Revenue Code Section 501 is not subject to this item.
(B) The conditions set forth in items (2) and (3) of subsection (A) of this section may be waived by the commission, provided the payee shall insure the commission by bond, secured by an insurance company licensed by the South Carolina Insurance Commission, or deposit of securities subject to approval by the State Treasurer, or cash which shall not bear interest, that the payee will comply with all applicable provisions of Chapter 5 of this title and with the withholding requirements insofar as his obligations as a withholding agent are concerned."
Effect of amendments
SECTION 2. The provisions of Section 12-9-310(A)(3) of the 1976 Code, as amended by Section 1 of this act, are effective in regard to payments made by a county to another person on or after December 31, 1988.
Required dates of property tax returns
SECTION 3. (A) Article 5, Chapter 12, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-905. Notwithstanding any other provision of this title, every person required by law to make a property tax return to the county auditor must file the return with the county auditor on or before April thirtieth for property owned as of the preceding December thirty-first."
(B) Upon approval by the Governor, this section is effective for taxable years beginning after 1989.
Time effective
SECTION 4. This act takes effect upon approval by the Governor.
Approved the 31st day of May, 1991.