Current Status Bill Number:239 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970122 Primary Sponsor:Passailaigue All Sponsors:Passailaigue, Leventis, McConnell, Alexander, Ford, Wilson and Hutto Drafted Document Number:res1218.elp Companion Bill Number:3932 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Sales tax imposed on local telecommunications, cable television, and paging services; telephones, taxation
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19970122 Introduced, read first time, 06 SF
referred to Committee
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TO AMEND CHAPTER 36 OF TITLE 12, RELATING TO SALES AND USE TAX, BY ADDING SECTION 12-36-160, SO AS TO ADD APPROPRIATE DEFINITIONS; TO AMEND SECTIONS 12-36-60, 12-36-70, AS AMENDED, 12-36-110, 12-36-120, 12-36-910, 12-36-1310, AND 12-36-2120, SO AS TO IMPOSE A FIVE PERCENT SALES AND USE TAX ON LOCAL TELECOMMUNICATION SERVICES, CABLE TELEVISION SUBSCRIBER SERVICES, AND PAGING SERVICES; TO REPEAL SUBSECTION II OF SECTION 12-36-2120, RELATING TO EXEMPTIONS FROM SALES TAX, SO AS TO CREATE AN EXCLUSION FOR GROSS PROCEEDS OR SALES PRICE DERIVED FROM TOLL CHARGES FOR VOICE OR MESSAGE TRANSMISSION, CHARGES FOR TELEGRAPH MESSAGES AND CARRIER AND CUSTOMER ACCESS LINE CHARGES FROM SALES TAX; AND TO REPEAL SECTION 12-36-2645, RELATING TO TAXES ON THE PROCEEDS OF 900/976 TELEPHONE SERVICES, SO AS TO REPEAL THE TEN PERCENT SALES TAX IMPOSED UPON THE PROCEEDS OF 900/976 TELEPHONE SERVICES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 12-36-160. (A) `Telecommunication service' means the access to a service for the transmission of voice, data, video signals, or other information by and through any media including, but not limited to, wires, cables, microwaves, light waves, satellites, or any combination of them or similar media, and includes all services as are subject to taxation under Sections 12-36-910(B)(3) and 12-36-1310(B)(3). This term does not include:
(1) services which are ancillary to the providing of telecommunication service but are not directly related to the transmission of voice, data, video signals, or other information including, but not limited to, directory advertising and listings, detailed billing services, bad check charges, and nonrecurring charges for installation, move, change, or termination services;
(2) the right to access and retrieve computer database or on-line information, or both, by and through a telecommunication service; and
(3) the use by a business engaged in providing telecommunication services of its own telecommunication services. However, sales of telecommunication services between related entities are subject to the tax unless otherwise exempt or excluded from the tax.
(B) `Local telecommunication service' means access to a basic local service or a local private line service and enhancements to these services including, but not limited to, call waiting, call forwarding, and three-way calling. This term does not include:
(1) toll charges for the transmission of voice, data video, or other information between telephone exchanges;
(2) carrier access and interconnection charges and customer or subscriber access line charges, or both, approved or established by the Federal Communications Commission or the South Carolina Public Service Commission; or
(3) interstate services.
(C) `Basic local service' means access to a local telephone or other local telecommunication system and the privilege of communication with substantially all persons having telephone stations or other telecommunication stations constituting a part of this local system.
(D) `Local private line service' means access to a telecommunication service whereby the subscriber is entitled to exclusive or priority use of a communications channel or group of communications channels wholly within a local calling area.
(E) `Cable television subscriber services' and `similar video programming services' mean access to video programming that is transmitted to subscribers through any media including, but not limited to, wires, cables, microwaves, light waves, satellites, or any combination of them or similar media."
SECTION 2. Section 12-36-60 of the 1976 Code is amended to read:
"Section 12-36-60. `Tangible personal property' means personal property which may be seen, weighed, measured, felt, touched, or which is in any other manner perceptible to the senses. It also includes services and intangibles, including communications services subject to tax under Sections 12-36-910(B)(3) and 12-36-1310(B)(3), laundry and related services, furnishing of accommodations and sales of electricity, the sale or use of which is subject to tax under this chapter and does not include stocks, notes, bonds, mortgages, or other evidences of debt. Tangible personal property does not include the transmission of computer database information by a cooperative service when the database information has been assembled by and for the exclusive use of the members of the cooperative service."
SECTION 3. Section 12-36-70 of the 1976 Code, as amended by Act 458 of 1996, is further amended to read:
"Section 12-36-70. "Retailer" and "seller" include every person:
(1) (a) selling or auctioning tangible personal property whether owned by the person or others;
(b) furnishing accommodations to transients for a consideration, except an individual furnishing accommodations of less than six sleeping rooms on the same premises, which is the individuals place of abode;
(c) renting, leasing, or otherwise furnishing tangible personal property for a consideration;
(d) operating a laundry, cleaning, dyeing, or pressing establishment for a consideration;
(e) selling electric power or energy;
(f) selling or otherwise furnishing the ways or means for the transmission of the voice or of messages between persons in this State for a consideration the services subject to taxation under Sections 12-36-910(B)(3) and 12-36-1310(B)(3). A person engaged in the business of selling or otherwise furnishing the ways or means for the transmission of the voice or messages as used in this subitem (f) consideration telecommunication services is not considered a processor or manufacturer;
(2) (a) maintaining a place of business or qualifying to do business in this State; or
(b) not maintaining an office or location in this State but soliciting business by direct or indirect representatives, manufacturers agents, distribution of catalogs, or other advertising matter or by any other means, and by reason thereof receives orders for tangible personal property or for storage, use, consumption, or distribution in this State.
The commission department, when necessary for the efficient administration of this chapter, may treat any salesman, representative, trucker, peddler, or canvasser as the agent of the dealer, distributor, supervisor, employer, or other person under whom they operate or from whom they obtain the tangible personal property sold by them, regardless of whether they are making sales on their own behalf or on behalf of the dealer, distributor, supervisor, employer, or other person. The commission department may also treat the dealer, distributor, supervisor, employer, or other person as a retailer for purposes of this chapter.
SECTION 4. Section 12-36-110(1) of the 1976 Code is amended by adding at the end:
"(l) sales, not otherwise exempt or excluded, of local telecommunication services to persons selling faxing services, 900 or 976 telephone services, or both, and computer database or on-line information services, or both. A person selling faxing services, 900 or 976 telephone services, or both, and computer database or on-line information services, or both, is deemed to be the user or consumer of the telephone services and is not subject to the sales and use tax for the subsequent sale of faxing services, 900 or 976 telephone services, or both, and computer database or on-line information services, or both."
SECTION 5. Section 12-36-120 of the 1976 Code, as last amended by Act 431 of 1996, is further amended by adding at the end:
"(6) telecommunication services subject to tax under Section 12-36-910(B)(3) or 12-36-1310(B)(3) to the providers of these services for the purpose of resale and do not include sales to these persons as users or consumers not for resale. This item only is applicable if the seller obtains a resale certificate, on a form provided by the department, from the purchaser before the sale of these services certifying that the services are being purchased for the purpose of resale."
SECTION 6. Section 12-36-910(B)(3) of the 1976 Code is amended to read:
"(3) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages; these telecommunication services:
(a) local telecommunication services;
(b) cable television subscriber services or similar video programming subscriber services;
(c) paging services; or
(d) telephone answering services and voice mail services;"
SECTION 7. Section 12-36-1310(B)(3) of the 1976 Code is amended to read:
"(3) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages; these telecommunication services:
(a) local telecommunication services;
(b) cable television subscriber services or similar video programming subscriber services;
(c) paging services; or
(d) telephone answering services and voice mail services;"
SECTION 8. Section 12-36-1310(C) of the 1976 Code is amended to read:
"(C) When a taxpayer is liable for the use tax imposed by this section on tangible personal property purchased in another state, upon which a sales or use tax was due and paid in the other state, the amount of the sales or use tax due and paid in the other state is allowed as a credit against the use tax due this State, upon proof of payment of the sales or use tax. The provisions of this section do not apply if the state in which the property was purchased does not allow substantially similar tax credits for tangible personal property purchased in this State. If the amount of the sales or use tax paid in the other state is less than the amount of use tax imposed by this article, the user shall pay the difference to the commission department."
SECTION 9. Section 12-36-2120(11) of the 1976 Code is amended to read:
"(11) (a) toll charges for the transmission of voice or messages between telephone exchanges;
(b) charges for telegraph messages; and
(c) carrier access charges and customer access line charges established by the Federal Communications Commission or the South Carolina Public Service Commission (Reserved);"
SECTION 10. Section 12-36-2645 of the 1976 Code is repealed.
SECTION 11. This act takes effect September 1, 1997.