| Printed Page 3270, May 10 | Printed Page 3290, May 10 |

The SPEAKER granted Reps. THOMAS, D. SMITH, CANTY and DELLENEY a leave of the House due to a Joint Judicial Screening Committee meeting.

The following Bill was taken up.

S. 547 -- Senator Peeler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5 TO CHAPTER 15, TITLE 56 SO AS TO PROVIDE REQUIREMENTS FOR WHOLESALE MOTOR VEHICLE AUCTIONS AND FOR WHOLESALE MOTOR VEHICLE AUCTION LICENSE PLATES.

The Education and Public Works Committee proposed the following Amendment No. 1 (Doc Name L:\council\legis\amend\PFM\7456BDW.95), which was adopted.

Amend the bill, as and if amended, by striking section 56-15-600(A), page 4, beginning on line 21, and inserting:

/(A) The department may issue to a licensed wholesale motor vehicle auction, upon application and payment of the required fee to the department, wholesale motor vehicle auction license plates. The license plates are exclusively for the use of transporting motor vehicles in the course of doing business as a wholesale motor vehicle auction and must not be attached permanently. The license plate expires twelve months from the month of issuance. The documentation evidencing transport in the ordinary course of doing business as a wholesale motor vehicle auction must be by form approved by the Department of Revenue and Taxation. The form at all times must accompany the license plates. A person who does not use the license plate exclusively to transport motor vehicles in the course of doing business as a wholesale motor vehicle auction is guilty of a misdemeanor and, upon conviction, must be fined five hundred dollars./

Amend further, Section 56-15-600(C), page 4, line 41, by striking /one hundred/ and inserting /seventy-five/, so that when amended the subsection reads:

/(C) A wholesale motor vehicle auction may be issued two license plates for the first twenty vehicles auctioned during the preceding year and one additional license plate for each fifty vehicles auctioned beyond the initial twenty during the preceding year but not to exceed seventy-five license plates. For good cause shown, the department in its discretion may issue additional license plates. If the wholesale motor vehicle auction has been

Amend title to conform.

Rep. TOWNSEND explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

The following Bill was taken up.

S. 285 -- Senators Passailaigue, Rose and McConnell: A BILL TO AMEND SECTION 12-7-20, AS AMENDED, OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO UPDATE THE REFERENCE DATE WHEREBY THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986.

The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name L:\council\legis\amend\PFM\7474HTC.95), which was adopted.

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Section 12-7-20(11) of the 1976 Code, as last amended by Section 6, Part II, Act 497 of 1994, is further amended to read:

"(11) `Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1994, and includes the provisions of Section 162(l) thereof as amended by P.L. 104-7."

SECTION 2. A. Section 12-2-20 of the 1976 Code, as added by Act 50 of 1991, is amended to read:

"Section 12-2-20. As used in this title and unless otherwise required by the context, the term `person' includes an individual, a trust, estate, partnership, receiver, association, company, limited liability company, corporation, or any other entity or group."

B. Section 12-7-1210 of the 1976 Code, as last amended by Act 516 of 1994, is further amended by deleting subsection (D) which reads:

C. Section 12-54-10 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 12-54-10. The word `person' or `taxpayer', for the purpose of this chapter, unless otherwise required by the text, includes any individual, firm, partnership, limited liability company, association, corporation, receiver, trustee, fiduciary, or any other group or combination acting as a unit and the State or any agency or instrumentality, authority, or political subdivision thereof, including municipalities. `Commission' or `Department' means the South Carolina Department of Revenue and Taxation."

D. Section 12-54-227(A) of the 1976 Code, as added by Act 50 of 1991, is amended to read:

"(A) As provided by Section 12-4-340, the commission department, for the purposes of collecting delinquent taxes due from a taxpayer not residing in this State, may contract with a collection agency, within or without this State, for the collection of the delinquent taxes, including penalties and interest. Delinquent tax claims may be assigned to the collection agency, for the purpose of litigation in the agency's name and at the agency's expense, as a means of facilitating and expediting the collection process. For purposes of this section, a delinquent tax claim is defined as a tax liability that is due and owing for a period longer than six months and for which the taxpayer has been given at least three notices requesting payment, one of which has been sent by certified or registered mail. The notice sent by certified or registered mail will include a statement that the matter of the taxpayer's delinquency may be referred to a collection agency in the taxpayer's home state."

E. Section 12-54-240(B) of the 1976 Code, as last amended by Act 516 of 1994, is further amended by adding two appropriately numbered items at the end to read:

"( ) disclosure and presentation of any documents and other information in a bankruptcy proceeding relating to a claim or potential claim, including submission of the claim; disclosure of documents and information to the Trustee and U. S. Trustee; and disclosure of documents and information to the debtor in bankruptcy and the debtor's attorney;

( ) disclosure of information in accordance with the provisions of Article 5, Chapter 55 of Title 38, the `Omnibus Insurance Fraud and Reporting Immunity Act'."

"(E) By applying for a certificate of authority to transact business in this State, the foreign limited liability partnership agrees to be subject to the jurisdiction of the Department of Revenue and Taxation and the South Carolina courts to determine its South Carolina tax liability, including withholding and estimated taxes, together with any related interest and penalties, if any. Registering is not an admission of tax liability."

G. Section 33-43-1002 of the 1976 Code, as added by Act 448 of 1994, is amended by adding:

"(D) By applying for a certificate of authority to transact business in this State, the foreign limited liability company agrees to be subject to the jurisdiction of the Department of Revenue and Taxation and the South Carolina courts to determine its South Carolina tax liability, including withholding and estimated taxes, together with any related interest and penalties, if any. Registering is not an admission of tax liability."

H. Subsection B of this section is effective for tax years beginning after 1994.

SECTION 3. Section 12-7-1140 of the 1976 Code is amended to read:

"Section 12-7-1140. Net income of the above classes having been separately allocated, A taxpayer whose principal business in this State is (a) manufacturing or any form of collecting, buying, assembling, or processing goods and materials within this State, or (b) selling, distributing, or dealing in tangible personal property within this State, shall make returns and pay annually an income tax upon a proportion of its remaining net income computed on the basis of the arithmetical average of the three ratios stated in Sections 12-7-1150 to 12-7-1170 which includes its income apportioned to this state. Its income apportioned to this state is determined by multiplying the net income remaining after allocation under Sections 12-7-1120 and 12-7-1130 by a fraction, the numerator of which is the property ratio, plus the payroll ratio, plus twice the sales ratio, and the denominator of which is four. However, where the sales ratio does not exist, the denominator of the fraction is the number of existing ratios, and where the sales ratio exists but the payroll ratio or the property ratio does not exist, the denominator of the fraction is the number of existing ratios plus one. The property, payroll, and sales ratios must be determined in accordance with Sections 12-7-1150, 12-7-1160, and 12-7-1170, respectively."

Section 12-60-10. This chapter may be cited as the South Carolina Revenue Procedures Act.

Section 12-60-20. It is the intent of the General Assembly to provide the people of this State with a straightforward procedure to determine any disputed revenue liability. The South Carolina Revenue Procedures Act must be interpreted and construed in accordance with, and in furtherance of, that intent.

Section 12-60-30. As used in this chapter and in Chapter 54 of this Title except when the context clearly indicates a different meaning:

(1) `Administrative Law Judge Division' means the Administrative Law Judge Division created by Section 1-23-500. The Administrative Law Judge Division holds all of the contested case hearings except for DMV matters.

(2) Assessment means the department s final determination of any tax due.

(3) Classification means the various categories of property subject to property tax to which specific property tax assessment ratios apply.

(4) Contested Case Hearing has the same meaning as it has in Section 1-23-310. It is a hearing conducted pursuant to Article 3, Chapter 23 of Title 1, the South Carolina Administrative Procedures Act, and includes the hearings conducted by:

(a) The Administrative Law Judge Division to review county boards of assessment appeals decisions, county auditor decisions, decisions on claims for refund made by a majority of county auditor, county treasurer, and county assessor, and department determinations other than DMV matters;

(b) The DMV hearing officers to review department determinations regarding DMV matters.

(5) County assessor or assessor means any county officer or official who issues an official property tax assessment for real property.

(6) County auditor or auditor means any county officer or official who issues an official property tax assessment for personal property.

(7) County board of assessment appeals or county board means the board of assessment appeals which considers appeals pursuant to Section 12-43-300.

(9) Department means the South Carolina Department of Revenue and Taxation.

(10) Department determination means the final determination within the department from which an individual can request a contested case hearing before the Administrative Law Judge Division, or the DMV hearing officers.

(11) Department representative means the person appointed by the department to prepare the department s determination and represent the department at the contested case hearing.

(12) Director means the director of the department.

(13) DMV hearing officers means Department of Public Safety hearing officers.

(14) DMV matters means matters related to driver licenses, motor vehicle registrations, and motor vehicle titles.

(15) Exhaustion of the taxpayer s administrative remedy means that the taxpayer has:

(a) exhausted his prehearing remedy, and

(b) had a hearing held pursuant to the Administrative Procedures Act with the Administrative Law Judge Division, or the DMV hearing officers, as appropriate.

(16) Exhaustion of the taxpayer s prehearing remedy means that the taxpayer:

(a) filed a written protest as required by this Chapter;

(b) attended the conference with the county board of assessment appeals for the purposes of Subarticle 9, Article 9 of this chapter, or met with the auditor for purposes of Subarticle 13, Article 9 of this chapter; and

(c) provided the facts, the law, and any other authority supporting the taxpayer s position to:

(i) the county board of assessment appeals at its conference for appeals made pursuant to Subarticle 9, Article 9 of this chapter,

(ii) the auditor in the taxpayer s protest or claim for refund for appeals made pursuant to Subarticle 13, Article 9 of this chapter, or

(iii) the department representative in the protest for regulatory violation matters, and within thirty days after filing the protest for other matters, or such later date agreed to by the department representative. For the purpose of this section regulatory violation matters are violations of a

(17) Mathematical or clerical error means:

(a) an error in addition, subtraction, multiplication, or division shown on a return;

(b) an incorrect use of any table provided by the department for use with any return, if the incorrect use is apparent from the existence of other information on the return;

(c) an omission of information which is required to be supplied on the return to substantiate an entry on the return; or

(d) an entry of a deduction or credit item in an amount which exceeds the statutory limit that is either:

(i) a specified monetary amount; or

(ii) a percentage, ratio, or fraction, if the items entering into the application of that limit appear on the return.

(18) Property tax means all ad valorem taxes on real and personal property.

(19) Property tax assessment means any valuation or determination of property value for annual property tax purposes arrived at by multiplying the fair market value or special use value of the property by the appropriate assessment ratio for the taxable property s classification.

(20) Property tax assessment ratio means the percentages established for the property classification by Section 12-43-220.

(21) Property tax assessor means the county assessor, the county auditor, the department, or any government official who issues a property tax assessment.

(22) Property taxpayer means a person who is liable for, or whose property or interest in property, is subject to, or liable for, any property tax imposed by this title.

(23) Proposed assessment means the first written notice sent or given to the taxpayer stating that a division within the department has concluded that a tax is due. The term proposed assessment does not include the auditor s work papers, draft audit reports, or any document specifically stating that it is not a proposed assessment.

(24) Protest means a written appeal of a proposed assessment made in accordance with this chapter.

(25) Special use value means property valued pursuant to Section 12-43-220(d).

(27) Tax or taxes mean all taxes, licenses, permits, fees, or other amounts, including interest and penalties, imposed by this title, or subject to assessment or collection by the department.

(28) Tax notice or tax bill means the demand for payment of property taxes.

(29) Taxpayer means a person who is liable for a tax or who is responsible for collecting and remitting a tax. Taxpayer includes any licensee, and any applicant for a license, issued by or administered by the department.

Section 12-60-40. (A) A taxpayer may waive his rights under this chapter, providing the waiver is in writing and is signed by the taxpayer or his representative. The department and a taxpayer may agree to extend any time limitations or waive any requirements provided in Article 5 or Article 9 of this chapter.

(B) Time limitations provided under this chapter and Chapter 54 are suspended during a stay ordered by the Taxpayers Rights Advocate.

Section 12-60-50. For purposes of this chapter, when the last day of any specified time period is a Saturday, Sunday, or a legal holiday, the end of the period is extended to the next business day. For purposes of this chapter, a legal holiday is any day the department or the offices of the United States Postal Service are closed and for Subarticles 9 and 13 of Article 9 any day the county office is closed.

Section 12-60-60. No action of a court, an administrative law judge, or a hearing officer can stay or prevent the department or any officer of the State charged with a duty in the collection of taxes, from acting to collect a tax, whether or not the tax is legally due.

Section 12-60-70. No writ of mandamus may be granted or issued from a court, administrative law judge, or hearing officer directing or compelling the reception of any funds not authorized to be received by law.

Section 12-60-80. There is no remedy other than those provided in this chapter in any case involving the illegal or wrongful collection of taxes, or attempt to collect taxes.

Section 12-60-90. (A) For the purposes of this section, the administrative tax process includes all matters connected with presentation to any state or local tax authority, or any of their officials or employees, relating to a client s rights, privileges, or liabilities under laws, regulations, or rules administered by state or local tax authorities. These

(B) State and local government tax officials, and state and local government employees, may represent their offices, agencies, or both, during the administrative tax process.

(C) Taxpayers may be represented during the administrative tax process by:

(1) the same individuals who can represent them in administrative tax proceedings with the Internal Revenue Service pursuant to Section 10.3 (a), (b), and (c), Section 10.7 (a)(1) through (4) and (7), and Section 10.7 (b) and (c) of United States Treasury Department Circular No. 230; and

(2) a real estate appraiser who is registered, licensed, or certified pursuant to Chapter 60 of Title 40 during the administrative tax process in a matter limited to questions concerning the valuation of real property.

(D) The department may suspend or disbar from practice in the administrative tax process, any person authorized by these rules to represent taxpayers, if the person is shown to be incompetent, disreputable, or fails or refuses to comply with the rules in subsection (E), or in any manner, with intent to defraud, wilfully and knowingly deceives, misleads, or threatens any claimant or prospective claimant, by word, circular, letter, or by advertisement. For the purposes of this section, disreputable conduct is defined in Section 10.51 of United States Treasury Department Circular No. 230.

(E) Representatives of taxpayers must comply with the duties and restrictions contained in Sections 10.20 through 10.24 and 10.27 through 10.33 of United States Treasury Department Circular No. 230.

(F) For the purposes of this section:

(1) references to United States Treasury Department Circular No. 230 mean the United States Treasury Department Circular No. 230 as revised through the date provided for in the definition of the Internal Revenue Code in Section 12-7-20(11).

(2) references in United States Treasury Department Circular No. 230 to:

(a) the United States or Federal are deemed to include references to this State, any of its political subdivisions, or any two or more of them,

| Printed Page 3270, May 10 | Printed Page 3290, May 10 |