Download This Version in Microsoft Word format

Bill 3649

Indicates Matter Stricken

Indicates New Matter

AMENDED

May 25, 2000

H. 3649

S. Printed 5/25/00--S.

Read the first time May 4, 1999.

TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "NEW JOB" FOR PURPOSES OF CLAIMING THE JOB TAX CREDIT, SO AS TO INCLUDE A JOB REINSTATED AFTER THE EMPLOYER HAS REBUILT A FACILITY DUE TO INVOLUNTARY CONVERSION, BY EMINENT DOMAIN OR CONDEMNATION, OF A PRIOR EXISTING FACILITY; AND TO AMEND SECTIONS 12-10-30, AS AMENDED, AND 12-10-35, BOTH RELATING TO QUALIFICATION OF A BUSINESS PURSUANT TO THE ENTERPRISE ZONE ACT OF 1995, SO AS TO CONFORM CRITERIA TO INCLUDE THE DEFINITION OF "NEW JOB" AS A JOB CREATED OR REINSTATED PURSUANT TO SECTION 12-6-3360.

Amend Title To Conform

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

SECTION 1. A. Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3365. (A) A taxpayer creating and maintaining at least one hundred full-time new jobs, as defined in Section 12-6-3360(M), at a facility of a type identified in Section 12-6-3360(M) is allowed a moratorium on state corporate income taxes imposed pursuant to Section 12-6-530 for the ten taxable years beginning the first full taxable year after the taxpayer qualifies and ending either ten years from that year or the year when the taxpayer's number of full-time new jobs falls below one hundred, whichever is earlier.

(B) To qualify for the moratorium pursuant to subsection (A), a taxpayer must create at least one hundred full-time new jobs at a facility in a county:

(1) with an average annual unemployment rate of at least twice the state average during the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data; and

(2) in which at least ninety percent of the taxpayer's total investment in this State is located.

(C) The moratorium applies to that portion of the taxpayer's corporate income tax that represents the ratio of the company's new investment in the qualifying county to its total investment in this State.

(D) The department shall prescribe certification procedures to ensure that the taxpayer may claim the moratorium in future years even if a particular county is removed from the list of moratorium counties.

(E) If the taxpayer creates and maintains at least two hundred full-time new jobs within five years from the date the taxpayer creates the first full-time new job at the facility, the moratorium period is fifteen taxable years, beginning the first full taxable year after the taxpayer qualifies and ending either fifteen years from that year or the year when the taxpayer's number of full-time new jobs falls below two hundred, whichever is earlier.

(F) The taxpayer must create the one hundred full-time new jobs within five years from the date it creates the first full-time new job, except that the taxpayer must have hired its first full-time new employee by July 1, 2005, to be eligible for either the ten-year or fifteen-year moratorium."

B. Section 12-6-3360(H) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(H) A credit claimed under this section but not used in a taxable year may be carried forward for fifteen years from the taxable year in which the credit is earned by the taxpayer. Credits which are carried forward must be used in the order earned and before jobs credits claimed in the current year. A taxpayer who earns credits allowed by this section and who also is eligible for the moratorium provided in Section 12-6-3365, may claim the credits and may carry forward unused credits beginning after the moratorium period expires."

C. Section 12-6-3360(M)(6) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(6) 'Processing facility' means an establishment engaged in services such as manufacturing-related, computer-related, communication-related, energy-related, or transportation-related services, but the term "processing facility" does not include an establishment where retail sales of tangible personal property or services are made to retail customers that prepares, treats, or converts tangible personal property into finished goods or another form of tangible personal property. The term also includes a business entity engaged in processing agricultural, aquacultural, or maricultural products. It does not include an establishment in which retail sales of tangible personal property are made to retail customers."

D. Section 12-10-80(C) of the 1976 Code, as last amended by Act 151 of 1997, is further amended to read:

"(C) In order To claim a job development credit, the qualifying business must incur expenditures at the above-described facility or for utility or transportation improvements that serve this serving the facility. To be qualified expenditures (a) the expenditures are incurred must be incurred (a) during the term of the revitalization agreement or within sixty days before the execution of a revitalization agreement, including a preliminary revitalization agreement, (b) the expenditures must be by according to the revitalization agreement, and (c) the expenditures are for any of the following purposes:

(1) training costs and facilities;

(2) acquiring and improving real estate, whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise;

(3) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunications;

(4) fixed transportation facilities including highway, rail, water, and air;

(5) construction or improvements of any real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations;

(6) financing the costs of a purpose described in items (1) through (5);

(7) the amount of job development credits a qualifying business may claim for its use for qualifying expenditures is limited according to the designation of the county as defined in Section 12-6-3360 as follows:

(a) one hundred percent of the maximum job development credits may be claimed by businesses located in counties designated as 'least developed';

(b) eighty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'under developed';

(c) seventy percent of the maximum job development credits may be claimed by businesses located in counties designated as 'moderately developed'; or

(d) fifty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'developed'.

The council shall certify to the department the maximum job development credit for each qualifying business. After receiving certification, the department shall remit an amount equal to the difference between the maximum job development credit and the job development credit actually claimed to the State Rural Infrastructure Fund as defined and provided in Section 12-10-85."

E. Chapter 10, Title 12 of the 1976 Code is amended by adding:

"Section 12-10-82. At the time the qualifying business enters into a revitalization agreement, it may make, with the approval of council, an irrevocable assignment of future payments attributable to the job development credit made pursuant to this chapter to the designated trustee. For purposes of this chapter, 'designated trustee' means the single financial institution designated by the council to receive all assignments of payments made pursuant to this chapter and to the terms of an agreement entered into by the qualifying business. If a qualifying business elects to assign payments to the designated trustee, the election must be made on a form provided by the department, including a waiver of confidentiality pursuant to Section 12-54-240, and the payments may be paid only to the designated trustee."

SECTION 2. A. Section 12-10-20(1) of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"(1) that the economic well-being of the citizens of the State will be is enhanced by the increased development and growth of industry within the State, and that it is in the best interest interests of the State to induce the location or expansion of manufacturing, processing, services, distribution, warehousing, research and development, corporate offices, and certain tourism facilities projects within the State in order to promote the public purpose of creating new jobs within the State;"

B. Section 12-10-30 of the 1976 Code, as last amended by Act 93 of 1999, is further amended to read:

"Section 12-10-30. As used in this chapter:

(1) 'Council' means the Advisory Coordinating Council for Economic Development.

(2) 'Department' means the South Carolina Department of Revenue.

(3) 'Employee' means an employee of the qualifying business who works full time within the enterprise zone at the project.

(4) 'Manufacturing' means engagement primarily in an activity or activities listed under the Standard Industrial Classification (SIC) Codes 20 through 39 as published in the Office of Management and Budget's Standard Industrial Classification Manual. 'Job development credit' means the amount a qualifying business may claim as a credit against employee withholding pursuant to Sections 12-10-80 and 12-10-81 and a revitalization agreement.

(5) 'New job' means a job created or reinstated as defined in Section 12-6-3360(M)(3).

(6) 'Qualifying business' means an employer a business that meets the requirements of Section 12-10-50 and other applicable requirements of this chapter and, where required under pursuant to Section 12-10-50, enters into a revitalization agreement with the council to undertake a project under pursuant to the provisions of this chapter.

(7) 'Project' means an investment for one or more purposes in Section 12-10-80(B) pursuant to this chapter needed for a qualifying business to locate, remain, or expand in an enterprise zone this State and otherwise fulfill the requirements of this chapter.

(8) Reserved. 'Preliminary revitalization agreement' means the application by the qualifying business for benefits pursuant to Section 12-10-80 if the council approves the application and agrees in writing at the time of approval to allow the approved application to serve as the preliminary revitalization agreement. The date of the preliminary revitalization agreement is the date of the council approval.

(9) 'Revitalization agreement' means an executed agreement entered into between the council and a qualifying business that describes the project and the negotiated terms and conditions for a business to qualify for a job development credit pursuant to Section 12-10-80 or 12-10-81.

(10) 'Qualifying expenditures' means those expenditures that meet the requirements of Section 12-10-80(C) or 12-10-81(D).

(9)(11) 'Withholding' means employee withholding under pursuant to Chapter 9 8 of this title.

(12) 'Gross wages' means wages subject to withholding."

C. Section 12-10-50 of the 1976 Code, as last amended by Act 114 of 1999, is further amended to read:

"Section 12-10-50. To qualify for the benefits provided in this chapter, a business must be located within this State and satisfy the following criteria must:

(1) it must be engaged primarily engaged in a business of the type identified in Section 12-6-3360;

(2) the business shall provide a benefits package, including health care, to full-time employees which includes health care at the project;

(3) the business shall enter into a revitalization agreement which that is approved by the council and that describes a minimum job requirement and minimum capital investment requirement for the project as provided in Section 12-10-90, except that no a revitalization agreement is not required for a qualifying business with respect to Section 12-10-80(D)(E); and,

(4) the council shall determine that the have negotiated incentives that council has determined are appropriate for the project, and the council shall certify that:

(a) the total benefits of the project exceed the costs to the public; and that

(b) the business otherwise fulfills the requirements of this chapter. No provision of this chapter must be construed to allow the council to negotiate a fee-in-lieu of property taxes agreement or approve job training or retraining."

D. Section 12-10-60 of the 1976 Code, as last amended by Act 114 of 1999, is further amended to read:

"Section 12-10-60. (A) The council may enter into a revitalization agreement with each qualifying business with respect to the project. The terms and provisions of each revitalization agreement must be determined by negotiations between the council and the qualifying business. The decision to enter into a revitalization agreement with a qualifying business is solely within the discretion of the council and a qualifying business does not have a right of appeal from the council's decision based on the appropriateness of the negotiated incentives to the project and the determination that approval of the project is in the best interests of the State. The revitalization agreement must set a date by which the qualifying business shall have completed the project. Within three months of the completion date, the qualifying business shall document the actual costs of the project in a manner acceptable to the council.

(B) If a qualifying business that entered into a revitalization agreement before January 1, 1997, receives council approval to amend its revitalization agreement to increase its minimum job requirement, the law in effect on the date of the amendment determines the amount of job development credit a qualifying business may claim pursuant to Section 12-10-80 for additional jobs created after the date of the amendment. This subsection does not apply to a business whose application for job development fees or credits pursuant to Section 12-10-81 has been approved by council before the effective date of this Act."

E. Section 12-10-80 of the 1976 Code, as last amended by Act 151 of 1997, is further amended to read:

"Section 12-10-80. (A) A business that qualifies under pursuant to Section 12-10-50 and which has met the minimum job requirement and minimum capital investment provided for in the final revitalization agreement may claim a job development credit credits as determined by this section.

(1) A business may claim its job development credit credits against its withholding on its quarterly state withholding tax return for the amount of job development credit credits allowable under pursuant to this section. The credit must be claimed on a quarterly basis. In order to claim a job development credit, the business must be current with respect to its withholding tax as well as any other tax due and owing the State, and must have maintained its minimum employment requirement for the entire quarter.

(2) A business that is current with respect to its withholding tax and other tax due and owing the State and that has maintained its minimum employment and investment levels identified in the revitalization agreement may claim the credit on a quarterly basis beginning with the first quarter after the council's certification to the department that the minimum employment and capital investment levels were met for the entire quarter.

(3) A qualifying business may receive its initial job development credit only after the council has certified to the department that the qualifying business has met the required minimum employment and capital investment levels.

(4) To be eligible to apply to the council to claim a job development credit, a qualifying business shall create at least ten new, full-time jobs, as defined in Section 12-6-3360(M), at the South Carolina facility project described in the revitalization agreement within five years of the effective date of the agreement.

(5) A qualifying business is eligible to claim a job development credit under pursuant to the revitalization agreement for not more than fifteen years.

(6) To the extent any return of an overpayment of withholding that results from claiming job development credits is not used as permitted by subsection (C) or (D)(E), it must be treated as misappropriated employee withholding.

(7) Except as provided in subsection (E), job development credits may not be claimed for purposes of (B) and (C) this section with regard to any an employee whose job was created in this State before the taxable year of the qualifying business in which it enters into a preliminary revitalization agreement.

(8) If a qualifying business claims job development credits under pursuant to this section, it shall make its payroll books and records available for inspection by the council and the department at the times the council and the department request. Each qualifying business claiming job development credits under pursuant to this section shall file with the council and the department the information and documentation requested by the council or department respecting employee withholding, the job development credit, and the use of any overpayment of withholding resulting from the claiming of a job development credit according to the revitalization agreement that the council or department requests.

(9) Each qualifying business which claims claiming in excess of ten thousand dollars in any a calendar year shall must furnish an audited report prepared by an independent certified public accountant which that itemizes the sources and uses of the funds. The audited report must be filed with the council and the department no later than June thirtieth following the calendar year in which the job development credits are claimed, except when a qualifying business obtains the written approval by the council for an extension of that date. Extensions may be granted only for good cause shown.

(10) Each qualifying business claiming ten thousand dollars or less in any calendar year must furnish a report prepared by the company that itemizes the sources and uses of the funds. This report must be filed with the council and the department no later than June thirtieth following the calendar year in which the job development credits are claimed, except when a qualifying business obtains the written approval by the council for an extension of that date. Extensions may be granted only for good cause shown.

(11) No An employer may not claim an amount that results in any employee ever an employee's receiving a smaller amount of wages on either a weekly or on an annual basis than the employee would receive otherwise receive in the absence of this chapter.

(B)(1) The maximum job development credit a qualifying business may claim for new employees is determined by limited to the lesser of withholding tax paid to the State on a quarterly basis or the sum of the following amounts:

(1)(a) two percent of the gross wages of each new employee who earns 6.34 6.74 dollars or more an hour but less than 8.45 8.99 dollars an hour;

(2)(b) three percent of the gross wages of each new employee who earns 8.45 8.99 dollars or more an hour but less than 10.57 11.23 dollars an hour;

(3)(c) four percent of the gross wages of each new employee who earns 10.57 11.23 dollars or more an hour but less than 15.85 16.85 dollars an hour; and

(4)(d) five percent of the gross wages of each new employee who earns 15.85 16.85 dollars or more an hour.

(2) The hourly gross wage figures set forth in this section item (1) must be adjusted annually by an inflation factor determined by the State Budget and Control Board. The amount which that may be claimed by a qualifying business is limited by subsection (C)(6) (D)(1) and the revitalization agreement. The council may approve a waiver of ninety-five percent of the limits under pursuant to subsection (C)(6) (D)(1) for qualifying businesses making a significant capital investment as defined in Section 4-12-30(D)(4) or Section 4-29-67(D)(4). The maximum job development credit that can be claimed is limited to the lesser of withholding paid to the State on a quarterly basis or the amount allowed by this subsection.

(C) In order To claim a job development credit, the qualifying business must incur qualified expenditures at the above-described facility project or for utility or transportation improvements that serve this facility the project. To be qualified expenditures (a) the expenditures are must be:

(1) incurred during the term of the revitalization agreement or within sixty days before the execution of a revitalization agreement, including a preliminary revitalization agreement, (b) the expenditures must be;

(2) authorized by the revitalization agreement,; and (c) the expenditures are

(3) used for any of the following purposes:

(1)(a) training costs and facilities;

(2)(b) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise;

(3)(c) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunications;

(4)(d) fixed transportation facilities including highway, rail, water, and air;

(5)(e) construction or improvements of any real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations;.

(6)(D)(1) The amount of job development credits a qualifying business may claim for its use for qualifying expenditures is limited according to the designation of the county as defined in Section 12-6-3360(B) as follows:

(a) one hundred percent of the maximum job development credits may be claimed by businesses located in counties designated as 'least developed';

(b) eighty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'underdeveloped';

(c) seventy percent of the maximum job development credits may be claimed by businesses located in counties designated as 'moderately developed'; or

(d) fifty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'developed'.

(2) The county designation of the county in which the project is located at the time the qualifying business enters into a preliminary revitalization agreement with the council remains in effect for the entire period of the revitalization agreement, except as to additional jobs created pursuant to an amendment to a revitalization agreement entered into before June 1, 1997, as provided in Section 12-10-60. In that case the county designation on the date of the amendment remains in effect for the remaining period of the revitalization agreement as to any additional jobs created after the effective date of the amendment. This item does not apply to a business whose application for job development fees or credits pursuant to Section 12-10-81 has been approved by council before the effective date of this Act.

(3) The council shall certify to the department the maximum job development credit for each qualifying business. After receiving certification, the department shall remit an amount equal to the difference between the maximum job development credit and the job development credit actually claimed to the State Rural Infrastructure Fund as defined and provided in Section 12-10-85.

(D)(E) Subject to the conditions in this section, any a qualifying business in this State may negotiate with the council to claim a job development credit for retraining according to the procedure in subsection (A) in an amount equal to five hundred dollars a year for each production employee being retrained, where this retraining is necessary for the qualifying business to remain competitive or to introduce new technologies. This retraining must be approved by and performed by the appropriate technical college under the jurisdiction of the State Board for Technical and Comprehensive Education serving the designated enterprise zone. The technical college may provide the retraining program delivery directly or contract with other training entities to accomplish the required training outcomes. In addition to the yearly limits, the amount claimed as a job development credit for retraining may not exceed two thousand dollars over five years for each production employee being retrained. Additionally, the qualifying business must match on a dollar-for-dollar basis the amount claimed as a job development credit for retraining. The total amount claimed as job development credits for retraining and all of the qualifying business' matching funds of the qualifying business must be paid to the technical college that provides the training to defray the cost of the training program. Any training cost in excess of the job development credits for retraining and matching funds is the responsibility of the qualifying business based on negotiations with the technical college.

(E)(F) Any job development credit of a qualifying business permanently lapses upon expiration or termination of the revitalization agreement. If an employee is terminated, the qualifying business immediately shall must cease to claim job development credits.

(G) The statute of limitations provided by Section 12-54-85 is suspended until the end of the five-year period described in item (4) of subsection (A) with respect to state withholding taxes pursuant to this section for a business subject to this section.

(F)(H) For purposes of the job development credit allowed by this section, an employee is a person whose job was created in this State.

(G)(I) Job development credits may not be claimed by a governmental employer who employs persons at a closed or realigned military installation as defined in Section 12-10-88(E)."

F. Section 12-10-81 of the 1976 Code, as added by Act 93 of 1999, is amended to read:

"Section 12-10-81. (A) A business may claim a job development credit as determined by this section if the:

(1) council approves the use of this section for the business;

(2) business qualifies pursuant to Section 12-10-50; and

(3) business is a tire manufacturer which that has more than four hundred twenty-five million dollars in capital invested in this State and employs more than one thousand employees in this State and which that commits within a period of five years from the date of a revitalization agreement, to invest an additional three hundred fifty million dollars and create an additional three hundred fifty jobs in this State qualifying for job development fees or credits pursuant to current or future revitalization agreements. The council, in its discretion, may extend the five-year period for two additional years if the business has made a commitment to the additional three hundred fifty million dollars and makes substantial progress toward satisfying the goal before the end of the initial five-year period. A business that represents to the council its intent to qualify pursuant to this section and is approved by the council may put job development fees computed pursuant to this section into an escrow account until the date the business satisfies the capital and job requirements of this section.

(B)(1) A business qualifying pursuant to this section may claim its job development credit against its withholding on its quarterly state withholding tax return for the amount of job development credit allowable pursuant to this section for not more than fifteen years. Job development credits allowed under pursuant to subsection (C)(1)(a) through (d) of this section apply only to withholding on jobs created pursuant to a revitalization agreement adopted under pursuant to this section and to the amounts withheld on wages and salaries on those jobs. The credit must be claimed on a quarterly basis. To claim a job development credit, the business must be current with respect to its withholding tax and other tax due and owing the State, and must have maintained its minimum employment requirement for the entire quarter.

(2) A business that is current with respect to its withholding tax as well as any other tax due and owing the State and that has maintained its minimum employment and investment levels identified in the revitalization agreement may claim the credit on a quarterly basis beginning with the quarter subsequent to the council's certification to the department that the minimum employment and capital investment levels have been met for the entire quarter.

(3) To be eligible to apply to the council to claim a job development credit pursuant to this section, a qualifying business must create at least ten new, full-time jobs as defined in Section 12-6-3360(M) at the South Carolina facility or facilities project or projects described in the revitalization agreement.

(3)(4) To the extent a return of an overpayment of withholding that results from claiming job development credits is not used as permitted by subsection (D), it must be treated as misappropriated employee withholding.

(5) Job development credits may not be claimed for purposes of this section with regard to an employee whose job was created in this State before the taxable year the qualifying business enters into a preliminary revitalization agreement.

(4)(6) If a qualifying business claims job development credits pursuant to this section, it must make its payroll books and records available for inspection by the council and the department at the times the council and the department request. Each qualifying business claiming job development credits pursuant to this section must file with the council and the department the information and documentation they request respecting employee withholding, the job development credit, and the use of any overpayment of withholding resulting from the claiming of a job development credit according to the revitalization agreement that the council or department requests.

(7) Each qualifying business must furnish an audited report prepared by an independent certified public accountant which that itemizes the sources and uses of the funds. The audited report must be filed with the council and the department no later than June thirtieth following the calendar year in which the job development credits are claimed, except when a qualifying business obtains written approval of council for an extension of that date. Extensions may be granted for good cause shown.

(8) An employer may not claim an amount that results in an employee employee's receiving a smaller amount of wages on either a weekly or on an annual basis than the employee would otherwise receive in the absence of this chapter.

(C)(1) The maximum job development credit a qualifying business may claim for new employees is determined by the sum of the following amounts:

(a) two percent of the gross wages of each new employee who earns $6.34 $6.74 or more an hour but less than $8.45 $8.99 an hour;

(b) three percent of the gross wages of each new employee who earns $8.45 $8.99 or more an hour but less than $10.57 $11.23 an hour;

(c) four percent of the gross wages of each new employee who earns $10.57 $11.23 or more an hour but less than $15.85 $16.85 an hour;

(d) five percent of the gross wages of each new employee who earns $15.85 $16.85 or more an hour; and

(e) the increase in the state sales and use tax of the business from the year of the effective date of its revitalization agreement pursuant to this section and subsequent years, over its state sales and use tax for the first of the three years preceding the effective date of this revitalization agreement.

(2) The hourly gross base wages in item (1) must be adjusted annually by the inflation factor determined by the State Budget and Control Board for the purposes of Section 12-10-80(3). The amount which that may be claimed by a qualifying business is limited by subsection (E) and the negotiated terms of the revitalization agreement. The business may proceed by using either the job development fee escrow procedure available pursuant to revitalization agreements with effective dates before 1997, or the job development credit, or a combination of the two. For a business qualifying pursuant to this section, the council also may approve or waive sections of a revitalization agreement and the council's rules as needed, in the council's discretion, to assist the business.

(D) To claim a job development credit, the qualifying business must incur expenditures at the facility project or for utility or transportation improvements that serve the facility project. To be qualified, the expenditures must be:

(1) incurred during the term of the revitalization agreement, including a preliminary revitalization agreement, or within sixty days before the execution of a revitalization agreement including a preliminary revitalization agreement council's receipt of an application for benefits pursuant to this section;

(2) authorized by the revitalization agreement,; and

(3) used to reimburse the business for:

(1)(a) training costs and facilities;

(2)(b) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise;

(3)(c) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunication;

(4)(d) fixed transportation facilities including highway, rail, water, and air; or

(5)(e) construction or improvements of real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations.

(E)(1) For purposes of subsection (C)(1)(a) through (d), the amount of job development credits a qualifying business may claim for its use for qualifying expenditures is limited according to the designation of the county as defined in Section 12-6-3360(B) as follows:

(a) one hundred percent of the maximum job development credits may be claimed by businesses located in counties designated as 'least developed';

(b) eighty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'underdeveloped';

(c) seventy percent of the maximum job development credits may be claimed by businesses located in counties designated as 'moderately developed'; or

(d) fifty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'developed'.

(2) For purposes of this subsection, the county designation of the county in which the project is located at the time the qualifying business enters into a preliminary revitalization agreement with the council remains in effect for the entire period of the revitalization agreement.

(3) The council shall certify to the department the maximum job development credit for each qualifying business. After receiving certification, the department shall remit an amount equal to the difference between the maximum job development credit and the job development credit actually claimed to the State Rural Infrastructure Fund as defined and provided in Section 12-10-85.

(F) A job development credit of a qualifying business permanently lapses upon expiration or termination of the revitalization agreement. If an employee is terminated, the qualifying business immediately must cease to claim job development credits.

(F)(G) The statute of limitations provided by Section 12-54-85 is suspended until the end of the five-year or seven-year period described in item (3) of subsection (A) with respect to state withholding taxes under pursuant to this section for a business subject to this section.

(H) For purposes of the job development credit allowed by this section, an employee is a person whose job was created in this State."

G. Section 12-10-100(C) of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"(C) By March first May fifteenth of each year, the council shall prepare a public document that itemizes each revitalization agreement concluded during the prior previous calendar year. The report shall must list each revitalization agreement, the results of each cost/benefits analysis, and receipts and expenditures of application fees. This document must be forwarded to the State Budget and Control Board, Senate Finance Committee, and House Ways and Means Committee. This document may not contain any proprietary or confidential information that is otherwise exempt under pursuant to Chapter 4 of Title 30, the Freedom of Information Act, and nothing in this section must not be construed to require the release of such that exempt information."

H. Section 12-36-2120(17) of the 1976 Code, as last amended by Act 346 of 1996, is further amended to read:

"(17) machines used in manufacturing, processing, recycling, compounding, mining, or quarrying tangible personal property for sale. 'Machines' include the parts of machines, attachments, and replacements used, or manufactured for use, on or in the operation of the machines and which (a) are necessary to the operation of the machines and are customarily so used, or (b) are necessary to comply with the order of an agency of the United States or of this State for the prevention or abatement of pollution of air, water, or noise that is caused or threatened by any machine used as provided in this section. This exemption does not include automobiles or trucks. As used in this item 'recycling' means any a process by which materials which that otherwise would otherwise become solid waste are collected, separated, or processed and reused, or returned to use in the form of raw materials or products, including composting, for sale. However, In applying this exemption to machines used in recycling, the following percentage of the gross proceeds of sale, or sales price of, machines used in recycling are exempt from the taxes imposed by this chapter:

Fiscal Year of Sale Percentage

Fiscal year 1997-98 fifty percent

After June 30, 1998 one hundred percent;"

SECTION 3. A. Section 12-36-2120(51) of the 1976 Code, as last amended by Act 151 of 1997, is further amended to read:

"(51) material handling systems and material handling equipment including, but not limited to, racks, whether or not the racks are used in the operation of a distribution facility or a manufacturing facility and either used or not used to support a facility structure or part thereof, used in the operation of a distribution facility or a manufacturing facility of it. In order To qualify for this exemption, the taxpayer shall notify the department before the first month it uses the exemption and shall invest at least thirty-five million dollars in any real or personal property in this State over the five-year period beginning on the date provided by the taxpayer to the department in its notices. The taxpayer shall notify the department in writing that it has met the thirty-five million dollar investment requirement or, after the expiration of the five years, that it has not met the thirty-five million dollar investment requirement. The department may assess any tax due on material handling systems and material handling equipment purchased tax-free pursuant to this item but due the State as a result of the taxpayer's failure to meet the thirty-five million dollar investment requirement. The running of the periods of limitations for assessment of taxes provided in Section 12-54-85 is suspended for the time period beginning with notice to the department before the taxpayer uses the exemption and ending with notice to the department that the taxpayer either has met or has not met the thirty-five million dollar investment requirement."

B. Section 12-36-2680 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"Section 12-36-2680. The department shall prescribe an exemption certificate for use by persons purchasing items exempt pursuant to items (5), (6), (7), (16), (18), (23), (32), and (44) of Section 12-36-2120. This exemption certificate may be presented upon each purchase by the holder, or the retailer may keep on file a copy of the certificate on file. When an exempt sale is made pursuant to a certificate on file, the purchaser must note on the purchase invoice the exempt items, and state that the items are to be used for exempt purposes. When the purchase order meets the requirements of this section, the liability for any tax determined to be due is solely on the purchaser purchaser's."

SECTION 4. A. Section 12-2-75 of the 1976 Code, as last amended by Act 114 of 1997, is further amended to read:

"Section 12-2-75. (A) Returns filed by taxpayers with the department must be signed by the following:

(1) corporate returns by an authorized officer of the corporation;

(2) partnership returns by a its manager or an authorized general partner of the partnership;

(3) trust and estate returns by the trustee, personal representative, executor, or administrator, whichever is applicable;

(4)(a) except as provided in subsections subitems (b) and (c), individual returns must be signed by the individual;

(b) deceased individual returns for individuals who would have been required to file a state tax return while living by the personal representative, administrator, or executor of the decedent's estate and the tax must be levied upon and collected from the estate;

(c) if an individual is unable to make a return or payment, including an estimated tax payment, it must be made by an authorized agent, a guardian, or other person charged with the conduct of the business of the taxpayer;

(5) returns for any other person by an authorized officer or owner.

(B) In the instructions to a return, or otherwise, the department may authorize taxpayers to sign returns by other means, including electronically, and may authorize the signature to be filed or deposited with and be kept or forwarded by a third party."

B. Chapter 4, Title 12 of the 1976 Code is amended by adding:

"Section 12-4-780. The department may accept, on terms and conditions it establishes, payments to it by credit cards. This authority includes a determination not to accept credit card payments or to accept credit card payments only for certain classes of payments as specified by the department. Notwithstanding another provision of law, the State Treasurer may enter into contracts on behalf of the department by which the department may accept credit card payments. The department may withhold the actual cost of processing credit card payments from deposits of the payments and may treat these withholdings as reimbursements of the associated expenditures."

C. Section 12-6-4910(1)(a) of the 1976 Code, as last amended by Act 114 of 1999, is further amended to read:

"(a) an individual not listed in subitem (c) whose federal filing status is single, surviving spouse, or head of household who has a gross income for the taxable year of at least the federal exemption amount plus the applicable basic standard deduction, plus any deduction the taxpayer qualifies for pursuant to Section 12-6-1170(B). If the individual is sixty-five or older, the standard deduction is increased as provided in Internal Revenue Code Section 63(c)(3) and 63(f)(1)(A), without regard to a reduction for the retirement income deduction, and whose filing status is:

(i) single, surviving spouse, or head of household; or

(ii) married, filing separately, and whose spouse does not itemize deductions."

D. Section 12-8-550 of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"Section 12-8-550. (A) A person hiring or contracting with a nonresident conducting a business or performing personal services of a temporary nature within this State shall withhold two percent of each payment in which the South Carolina portion of the contract exceeds or could reasonably be expected to exceed ten thousand dollars. This item section does not apply to a nonresident which registered with the Secretary of State or the Department of Revenue and by that registration has agreed to be subject to the jurisdiction of the department and the courts of this State to determine its South Carolina tax liability, including withholding and estimated taxes, together with any related interest and penalties, if any. Registering with the Secretary of State or the department is not an admission of tax liability nor must this act of registering be construed to does it require the filing of an income tax or franchise (license) tax return. If the person hiring, contracting, or having a contract with a nonresident obtains an affidavit from the nonresident stating that the nonresident is registered with the department or with the Secretary of State, the person is not responsible for the withholding.

(B) The department may revoke the exemption granted by registering with the Secretary of State or the department if it determines that the nonresident taxpayer is not cooperating with the department in the determination of the nonresident taxpayer's correct South Carolina tax liability. This revocation does not revive the duty of a person hiring, contracting, or having a contract with a nonresident to withhold, until the person receives notice of the revocation.

(C) This section does not apply to payments on purchase orders for tangible personal property when those payments are not accompanied by services to be performed in this State."

E. Section 12-8-580(B)(2) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(2) A sale does not include tax exempt or tax deferred transactions, other than installment sales. The sale of a principal residence is considered a deferred transaction which is not subject to withholding if the following conditions are met:

(a) the seller reinvests the proceeds into a new principal residence pursuant to Internal Revenue Code Section 1034 or elects the one time exclusion pursuant to Internal Revenue Code Section 121; and

(b) the buyer obtains an affidavit described in subsection (E) which states that:

(i) the sale is not subject to tax because Internal Revenue Code Section 1034 or 121 applies;

(ii) the seller acknowledges his obligation to file a South Carolina income tax return for the year of the sale; and

(iii) the seller acknowledges his obligation to file an amended South Carolina income tax return for the year of the sale if the seller fails to comply with Internal Revenue Code Section 1034."

F. Section 12-10-35(A) of the 1976 Code, as last amended by Act 100 of 1999, is further amended to read:

"(A) If a qualifying business creates at least one hundred new full-time jobs, as defined and determined in Section 12-6-3360, in a county (1) with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years based on the two most recent calendar years of data available on November 1 of the preceding year, or (2) which is one of the three lowest per capita income counties based on the average of the three most recent years of average per capita income data, and at least ninety percent of the investment of the qualifying business in this State is in that county, then the company is allowed a moratorium on state corporate income taxes imposed pursuant to Section 12-6-530 for the company's first ten taxable years beginning with the taxable year after it first qualifies. The moratorium applies to that portion of the company's corporate income tax that represents the ratio that the company's new investment is of its total investment in this State."

SECTION 5. Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-5095. For purposes of a return filed pursuant to this chapter, all amounts may be rounded by the department or the taxpayer to the nearest whole dollar. An amount of fifty cents or more may be rounded to the next dollar. An amount of less than fifty cents may be eliminated."

SECTION 6. Section 12-36-550 of the 1976 Code, as added by Act 612 of 1990, is amended to read:

"Section 12-36-550. The license provided for in this article:

(1) is valid so long as the person to whom it is issued continues in the same business, unless revoked by the commission department. It is presumed that a retailer is not continuing in the same business and must surrender the retail sales license if the retailer has no retail sales for twenty-four consecutive months. To allow the license to remain valid, the retailer may submit an affidavit to the department swearing that the business is continuing;

(2) must at all times be conspicuously displayed at the place for which it was issued;

(3) is not transferable or assignable."

SECTION 7. Section 12-36-2670 of the 1976 Code, as added by Act 361 of 1992, is amended to read:

"Section 12-36-2670. The commissioners director or their designees his designee may administer an oath to a person or take the acknowledgement of a person with respect to a return or report required by this title or the regulations of the commission department."

SECTION 8. Section 12-36-2120(40), (41), and (42) of the 1976 Code are amended to read:

"(40) containers and chassis, including all parts, components, and attachments, sold to international shipping lines which have a contractual relationship with the South Carolina State Ports Authority and which are used in the import or export of goods to and from this State. The exemption allowed by this item is effective for sales after June 30, 1982;

(41) items sold by organizations exempt under Section 12-37-220 A(3) and (4) and B(5), (6), (7), (8), (12), (16), (19), (22), and (24), if the net proceeds are used exclusively for exempt purposes and no benefit inures to any individual. An organization whose sales are exempted by this item is also exempt from the retail license tax provided in Article 5 of this chapter. The exemption allowed by this item is effective for sales after June 30, 1989;

(42) depreciable assets, used in the operation of a business, pursuant to the sale of the business. This exemption only applies when the entire business is sold by the owner of it, pursuant to a written contract and the purchaser continues operation of the business. The exemption allowed by this item is effective for sales after June 30, 1987.;"

SECTION 9. Section 12-44-160 of the 1976 Code, as added by Act 149 of 1997, is amended to read:

"Section 12-44-160. This chapter must be construed liberally in accordance with the findings in Section 12-44-20 with due regard to the paramount importance of the county council approvals required throughout this chapter. If the General Assembly adopts enabling legislation, property that would be exempt under this chapter but is held not to be exempt because of the unconstitutionality or illegality of this chapter, or any portion of it, is exempt from property tax under Section 4-29-67 or Chapter 12 of this title if the project and county approval would have met the requirements for exemption under them, except that fees in lieu of taxes must have been, and must continue to be, made in the amounts required by Section 4-29-67 or Chapter 12 of this title. If all or part of this chapter is determined to be unconstitutional or otherwise illegal by a court of competent jurisdiction, a sponsor has one hundred eighty days from the date of the determination to transfer title to economic development property to the county and have it qualify for a fee in lieu of taxes pursuant to Chapter 12 of Title 4 or Section 4-29-67."

SECTION 10. A. Section 12-54-25(C) of the 1976 Code, as last amended by Act 432 of 1998, is further amended to read:

"(C)(1) Any tax refunded or credited must include interest on the amount of the credit or refund from the later latest of either the date the tax was paid, or the original due date of the return, or the last day prescribed for paying the tax if no return is required, to either the date the refund was sent or delivered to the taxpayer or the date the credit was made.

(2) This interest must be paid by drawing upon funds from the type of tax being refunded or credited. The funds withdrawn may be expended by the department in the payment of interest on refunds.

(3) Interest on an overpayment is not allowed pursuant to this subsection on an overpayment if it is refunded:

(a) within seventy-five days after the last day prescribed for filing the tax return, without regard to an extension of time for filing, or within seventy-five days after the last day prescribed for paying the tax if no return is required;

(b) within seventy-five days after the return is filed, in the case of a return filed after the last date; or

(c) within seventy-five days after the taxpayer files a claim for a credit or refund for the overpayment of tax for the period between the filing of the claim to the payment of the refund."

B. Section 12-54-43(C) of the 1976 Code, as added by Act 114 of 1999, is amended to read:

"(C)(1) In the case of failure to file a return on or before the date prescribed by law, determined with regard to any extension of time for filing, there must be added to the amount required to be shown as tax on the return, a penalty of five percent of the amount of the tax if the failure is for not more than one month, with an additional five percent for each additional month or fraction of the month during which the failure continues, not exceeding twenty-five percent in the aggregate.

(2) In case of a failure to file a return of tax within sixty days of the date prescribed for filing the return, determined with regard to any extension of time for filing, the addition to tax must not be less than the lesser of one hundred dollars or one hundred percent of the amount required to be shown as tax on the return, except in those cases in which the tax owed is one hundred dollars or less.

(3) For the purpose of this subsection, the amount of tax required to be shown on the return must be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return."

C. Section 12-54-100 of the 1976 Code is amended to read:

"Section 12-54-100. (A) In the administration of a state tax law, the Commission or its director or his duly authorized agent, may for the purpose of ascertaining the correctness of any a return, or making a determination of the or fixing tax liability, or inspection of licenses, may examine the or investigate the place of business, tangible personal property, facilities, computers, computer programs, electronic data, books, invoices, papers, records, memoranda, vouchers, other documents, equipment, or licenses of the taxpayer or other person bearing upon the matters required to be included on any a return.

(B) The taxpayer or other person and his agents and employees shall exhibit to the director these places and items and facilitate the examination or investigation.

(C) A taxpayer, upon request, may delay the examination up to thirty days., except that the provisions of this section subsection do not apply if there is reasonable evidence that the taxpayer is about to destroy or remove the books, papers, records, or memoranda items from the State or otherwise make them unavailable for examination or inspection investigation.

(D) The director may employ proper and reasonable audit methods necessary to the examination or investigation, including the use of sampling."

SECTION 11. Section 12-54-227(B) of the 1976 Code, as added by Act 50 of 1991, is amended to read:

"(B)(1) Fees for services, reimbursements, or other remuneration to the collection agency must be based on the amount of tax, penalty, and interest actually collected. Each contract entered into between the commission department and the collection agency must provide for the payment of fees for these services, reimbursements, or other remuneration not in excess of fifty percent of the total amount of delinquent taxes, penalties, and interest actually collected.

(2) All funds collected, less the fees for collection services as provided in the contract, must be remitted to the commission department within forty-five days from the date of collection from a taxpayer. The department may refund the fees for collection services to the collection agency, if all funds collected are remitted gross of fees. Forms to be used for these remittances must be prescribed by the commission department."

SECTION 12. Section 12-54-240(B) of the 1976 Code is amended by adding at the end:

"(21) disclosure of information, including statistics classified to prevent their identification to certain items on reports or returns, filed in a return pursuant to Chapter 36, Title 12, for accommodations taxes imposed pursuant to Section 12-36-920 and sales and use taxes collected by and reported to the Department of Parks, Recreation and Tourism including, but not limited to, statistics reflecting tourism activity;

(22) disclosure of information contained in a return filed pursuant to Article 17, Chapter 21, Title 12, for the purpose of complying with the Tourism Infrastructure Admissions Tax Act."

SECTION 13. A. Section 12-60-3370 of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"Section 12-60-3370. Except as otherwise provided below, a taxpayer shall pay, or post a bond for, all taxes, including interest, penalties, and other amounts not including penalties or civil fines, determined to be due by the Administrative Law Judge or DMV hearing officer before appealing the decision to the circuit court. For property tax cases covered by Section 12-60-2140 or 12-60-2550, the taxpayer need pay only pay the amount assessed under pursuant to the appropriate section."

B. Section 12-60-20 of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"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 dispute with the Department of Revenue. The South Carolina Revenue Procedures Act must be interpreted and construed in accordance with, and in furtherance of, that intent."

C. Section 12-60-50(27) of the 1976 Code, as last amended by Act 465 of 1996, is further amended to read:

"(27) 'Tax' or 'taxes' means all taxes, licenses, permits, fees, or other amounts, including interest, and penalties regulatory and other penalties, and civil fines, imposed by this title, or subject to assessment or collection by the department, including property subject to collection pursuant to Chapter 18 of Title 27."

SECTION 14. A. Section 26-5-20 of the 1976 Code, as added by Act 374 of 1998, is amended by adding:

"(5) facilitate and promote interstate and international use of electronic commerce and online government."

B. Article 3, Chapter 5 of Title 26 of the 1976 Code, as added by Act 374 of 1998, is amended by adding:

"Section 26-5-370. Electronic signatures or records from other jurisdictions having commensurate requirements as provided for in this chapter and which also grant reciprocal recognition to electronic signatures or records from this State must be afforded the same status, effect, validity, and enforceability as those recognized under this chapter."

C. Chapter 5, Title 26 of the 1976 Code, as added by Act 374 of 1998, is amended by adding:

Section 26-5-710. The Computer Crime Act, as contained in Chapter 16 of Title 16, is expressly made applicable to and incorporated in Chapter 5 of Title 26."

SECTION 15. Section 12-4-755 of the 1976 Code is repealed.

SECTION 16. A. Section 12-28-1910(A) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(A) The department or its appointees including federal government employees or persons operating under contract with the State, upon presenting appropriate credentials, may conduct inspections and remove samples of fuel from a vehicle, tank, or another container to determine coloration of diesel fuel or to identify shipping paper violations at any place where taxable fuel is or may be produced, stored, or loaded into transport vehicles. Inspection must be performed in a reasonable manner consistent with the circumstances. However, prior notice is not required. Inspectors physically may inspect, examine, or otherwise search a tank, reservoir, or other container that can or may be used for the production, storage, or transportation of fuel. Inspection may be made of equipment used for, or in connection with, the production, storage, or transportation of fuel. Inspectors may demand to be produced for immediate inspection the shipping papers, documents, and records required to be kept by a person transporting fuel. These places may include, but are not limited to, a:

(1) terminal;

(2) fuel storage facility that is not a terminal;

(3) retail fuel facility;

(4) highway rest stops; or

(5) designated inspection site defined as any state highway or waterway inspection station, weigh station, agricultural inspection station, mobil mobile station, or other location designated by the department either fixed or mobile."

B. Chapter 28, Title 12 of the 1976 Code is amended by adding:

"Section 12-28-2940. Acquisitions by the Department of Transportation under the 'C' Fund program are exempt from the requirements of all appraisal provisions of Title 28, Chapter 2 (Sections 28-2-10 et seq.), and Sections 1-11-110, 3-5-50, 3-5-100, 3-5-330, 4-17-20, 5-27-150, 5-31-420, 5-31-430, 5-31-440, 5-31-610, 5-35-10, 6-11-130, 6-23-290, 13-1-350, 13-11-80, 24-1-230, 28-3-20, 28-3-30, 28-3-140, 28-3-460, 46-19-130, 48-11-110, 48-15-30, 48-15-50, 48-17-30, 48-17-50, 49-17-1050, 49-19-1060, 49-19-1440, 50-13-1920, 50-19-1320, 51-13-780, 54-3-150, 55-9-80, 55-11-10, 57-3-700, 57-5-370, 57-5-380, 57-21-200, 57-25-190, 57-25-470, 57-25-680, 57-27-70, 58-9-2030, 58-15-410, 58-17-1200, 13-1-1330, 58-27-130, 58-31-50, 59-19-200, 59-105-40, 59-117-70, 59-123-90."

C. Chapters 27 and 29 of Title 12 of the 1976 Code are repealed.

SECTION 17. A. Section 12-37-220(B)(1) and (2) of the 1976 Code, as last amended by Act 107 of 1997, is further amended to read:

"(1)(a) The dwelling house in which he resides and a lot not to exceed one acre of land owned in fee or for life, or jointly with a spouse, by any a veteran who is one hundred percent permanently and totally disabled from a service-connected disability, if the veteran or qualifying surviving spouse files a certificate, signed by the county service officer, of the total and permanent disability with the State Department of Revenue. The exemption is allowed the surviving spouse of the veteran and also is also allowed to the surviving spouse of a serviceman or law enforcement officer as defined in Section 23-6-400(D)(1) killed in action in the line of duty who owned the lot and dwelling house in fee or for life, or jointly with his spouse, so long as the spouse does not remarry, resides in the dwelling, and obtains by devise the fee or a life estate in the dwelling. A surviving spouse who disposes of the exempt dwelling and acquires another residence in this State for use as a dwelling house with a value no greater than one and one-half times the fair market value of the exempt dwelling may apply for and receive the exemption on the newly acquired dwelling, but no a subsequent dwelling of a surviving spouse is not eligible for exemption under pursuant to this item. The spouse shall inform the Department of Revenue of the change in address of the dwelling. The dwelling house is defined as a person's legal residence. To qualify for the exemption, the dwelling house must be the domicile of the person who qualifies for the exemption.

(b) When a trustee holds legal title to a dwelling for a beneficiary and the beneficiary is a person who qualifies otherwise for the exemption provided in subitem (a) and the beneficiary uses the dwelling as his domicile, the dwelling is exempt from property taxation in the same amount and manner as dwellings are exempt pursuant to subitem (a).

(2)(a) The dwelling house in which he resides and a lot not to exceed one acre of land owned in fee or for life, or jointly with his a or her spouse, by a paraplegic or hemiplegic person, or in trust for his or her benefit, is exempt from all property taxation provided the person furnishes satisfactory proof of his disability to the State Department of Revenue. The exemption is allowed to the surviving spouse of the person so long as the spouse does not remarry, resides in the dwelling, and obtains by devise the fee or a life estate in the dwelling. The dwelling house is defined as the person's legal residence. To qualify for the exemption, the dwelling house must be the domicile of the person who qualifies for the exemption. For purposes of this item, a hemiplegic person is a person who has paralysis of one lateral half of the body resulting from injury to the motor centers of the brain.

(b) When a trustee holds legal title to a dwelling for a beneficiary and the beneficiary is a person who qualifies otherwise for the exemption provided in subitem (a) and the beneficiary uses the dwelling as his domicile, the dwelling is exempt from property taxation in the amount and manner as dwellings are exempt pursuant to subitem (a)."

B. Section 12-37-930(34) of the 1976 Code, as added by Act 93 of 1999, is amended to read:

"(34) Class 100 or better as defined in Federal Standard 209E Clean Room Modules and Associated Mechanical Systems, Process Piping, Wiring, Environmental Systems, and Water Purification Systems Use of Clean Rooms ............... 10%

Includes waffle flooring, wall and ceiling panels; foundation improvements that isolate the clean room to control vibrations; clean air handling and filtration systems; piping systems for fluids and gases used in the manufacturing process and that touch the product during the fabrication of semiconductors, flat panel displays, and liquid crystal displays; process equipment energy control systems; ultra pure water processing and wastewater recycling systems; and safety alarm and monitoring systems. A manufacturer who uses a Class 100 or better clean room, as that term is defined in Federal Standard 209E, in manufacturing its product may elect an annual allowance for depreciation for property tax purposes of ten percent on clean room modules and associated mechanical systems, and on process piping, wiring environmental systems, and water purification systems associated with the clean room instead of a depreciation allowance for which the manufacturer otherwise is entitled. Included are waffle flooring, wall and ceiling panels, foundation improvements that isolate the clean room to control vibrations, clean air handling and filtration systems, piping systems for fluids and gases used in the manufacturing process and in the clean room that touch the product during the process, flat panel displays, and liquid crystal displays, process equipment energy control systems, ultra pure water processing and wastewater recycling systems, and safety alarm and monitoring systems."

C. Section 12-43-220(f) of the 1976 Code, as last amended by Act 528 of 1978, is further amended to read:

"(f) Except as specifically provided by law all other personal property shall must be taxed on an assessment of ten and one-half percent of fair market value of such the property, except that commercial fishing boats shall must be taxed on an assessment of five percent of fair market value. As used in this item 'commercial fishing boats' shall mean means boats licensed by, or using commercial fishing equipment licensed by, the Department of Natural Resources and which are used exclusively for commercial fishing, shrimping, or crabbing."

D. Sections 12-43-280 and 12-43-290 of the 1976 Code are repealed.

SECTION 18. A. Section 4-12-30(B)(4)(b) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(b)(i) The members of the same controlled group of corporations can may qualify for the fee if the combined investment in the county by the members meets the minimum investment requirements each member invests the minimum level of investment as specified in subsection (B)(3). The county and the members who are part of the inducement agreement may agree that any investments by other members of the controlled group within the time periods provided in subsections (C)(1) and (C)(2) qualify for the payment whether or not the member was part of the inducement agreement. However, in order To qualify for the fee, the other members of the controlled group must be approved specifically approved by the county and must agree to be bound by agreements with the county relating to the fee, but except that the controlled group members need are not be bound by agreements, or portions of agreements, to the extent the agreements do not affect the county. Except as otherwise provided in subsection (B)(2), the investments under pursuant to this subsection (B)(4)(b) must be within the same county or industrial park. Any controlled group member which is claiming the fee shall invest at least five million dollars in the county or industrial park.

(ii) The department must be notified in writing of all members which have investments subject to the fee before or within ninety days after the end of the calendar year during which the project or phase of the project was first placed in service. The department may extend this period upon written request. Failure to meet this notice requirement does not adversely affect the fee adversely, but a penalty may be assessed by the department for late notification in the amount of ten thousand dollars a month or portion of a month, but not to exceed fifty thousand dollars. Members of the controlled group shall provide the information considered necessary by the department to ensure that the investors are part of a controlled group.

(iii) If at any time the controlled group, or any a former member which has left the controlled group, no longer has the minimum five million dollars of investment minimum level of investment as provided in subsection (B)(3), without regard to depreciation, that group or former member no longer holding the minimum amount of investment as provided in subsection (B)(3), without regard to depreciation, no longer qualifies for the fee.

(iv) For purposes of this section, 'controlled group' or 'controlled group of corporations' has the meaning provided under in Section 1563(a) of the Internal Revenue Code, as defined in Chapter 6 of Title 12 as of the date of the execution of the inducement agreement, without regard to amendments or replacements thereof, of it and without regard to subsections (a)(4) and (b) of Section 1563."

B. Section 4-12-30(O) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(O) Notwithstanding any other provision of this section, if at any time following the period provided in subsection (C)(2), the investment based on income tax basis without regard to depreciation falls below the five-million-dollar-minimum investment to which the fee relates minimum level of investment provided in subsection (B)(3) at any time following the period provided in subsection (C)(2), the fee provided in subsection (D)(2) is no longer available and the investor is required to must make the payments which are due under pursuant to Section 4-12-20 for the remainder of the lease period."

C. Section 12-44-130(A) of the 1976 Code, as added by Act 149 of 1997, is amended to read:

"(A) To be eligible for the fee, a sponsor affiliate must invest five million dollars the minimum investment as defined in Section 12-44-30(14). The county and the members who are part of the fee agreement may agree that investments by other members of the controlled group within the investment period qualify for the payment regardless of whether the member was part of the fee agreement, except that the new sponsor affiliate must invest at least five million dollars the minimum investment in the project. To qualify for the exemption, the other members of the controlled group must be approved specifically by the county and must agree to be bound by agreements with the county relating to the exemption. These controlled group members need are not be bound by agreements, or portions of agreements, which do not affect the county."

SECTION 19. Chapter 10 of Title 4 of the 1976 Code, is amended by adding:

"Section 4-10-67. Local option use tax collected by the department in conjunction with the filing of individual income tax returns must be deposited to a local option supplemental revenue fund and distributed in accordance with Section 4-10-60 to those counties generating less than their minimum distribution."

SECTION 20. A. Section 12-37-2810 (A) of the 1976 Code, as last amended by Act 442 of 1998, is further amended to read:

"(A) 'Motor carrier' means a person who owns, controls, operates, manages, or leases a motor vehicle or bus for the transportation of property or persons in intrastate or interstate commerce except for scheduled intercity bus service and farm vehicles using FM tags as allowed by the Department of Motor Vehicles. A motor carrier is defined further as being a South Carolina-based International Registration Plan registrant or owning or leasing real property within this State used directly in the transportation of freight or persons."

B. Section 12-37-2840 of the 1976 Code, as last amended by Act 442 of 1998, is further amended to read:

"Section 12-37-2840. (A) Motor carriers must file an annual property tax return with the Department of Revenue no later than June 30 for the preceding calendar year and remit one-half of the tax due or the entire tax due as stated on the return. If the motor carrier fails to file its return, the department shall issue a proposed assessment which assumes all mileage was within this State. If the motor carrier fails to pay either one-half of the tax due or the entire tax due as of June 30, the department must issue a proposed assessment for the entire tax to the motor carrier. The tax as shown in the proposed assessment must be paid in full by cashier's check, money order, or cash within thirty days of the issuance of the proposed assessment, or the taxpayer may appeal the proposed assessment within thirty days using the procedures provided in subarticle 1, Article 5, Chapter 60 of this title.

(B)(1) If one-half of the tax is remitted on or before June 30, the remaining one-half of the tax due must be paid to the Department of Revenue on or before December 31 of that year. If the motor carrier fails to remit the remaining tax due pursuant to this section, the department shall issue a proposed assessment notice to the motor carrier. demanding payment for the entire amount shown to be due. If the motor carrier fails to remit the tax due within thirty days of receipt of the notice, the Department of Revenue shall notify the Department of Public Safety, which may not renew the registrations of the motor vehicles required by this article to be on the property tax return. A twenty-five percent penalty must be added to the property tax due and the tax and penalty must be paid in full by cashier's check, money order, or cash. The penalty required by this section is instead of all other penalties and interest required by law.

Upon payment in full, the Department of Revenue shall notify the Department of Public Safety which then shall allow for registrations of the motor vehicles.

(2) The tax shown in the proposed assessment must be paid in full by cashier's check, money order, or cash or appealed within thirty days of the issuance of the proposed assessment. The taxpayer may appeal the proposed assessment using the procedures provided in subarticle 1, Article 5, Chapter 60 of this title.

(C) If a motor carrier fails to timely file the return as required by this section, the department shall issue a proposed assessment which assumes all mileage of the motor carrier's fleet was driven within this State. A taxpayer may appeal this proposed assessment using the procedures provided in subarticle 1, Article 5, Chapter 60 of this title.

(D) A twenty-five percent penalty must be added to the property tax due if the motor carrier fails to file a return or pay any tax due, including the one-half of the tax due on June 30, as required by this section. The penalty must be applied the day after the date that the return was due to be filed or the tax was due to be paid. This penalty is instead of all other penalties and interest required by law, except those provided in Section 12-54-44.

(E) If the motor carrier fails to remit the tax due within thirty days of receipt of the proposed assessment and the taxpayer fails to appeal the proposed assessment as provided in subsection (B), the department shall assess the tax. Tax due pursuant to this section is subject to the collection procedures provided in Chapter 54, of this title, except that the penalty provisions of Section 12-54-43 do not apply."

C. Chapter 37 of Title 12 of the 1976 Code, is amended by adding:

"Section 12-37-2842. (A) The Department of Motor Vehicles, at the time of first registration by a motor carrier as defined in this article, shall notify the registrant of the Department of Revenue's registration and filing requirements and supply the required registration forms.

(B) The motor carrier must register with the Department of Revenue within thirty days following the year in which the vehicle or bus was first registered for operation in South Carolina.

(C) A motor carrier must notify the Department of Revenue, on forms supplied by the department, of a motor vehicle or bus that is disposed of before December 31."

D. Section 12-37-2845 of the 1976 Code is repealed.

SECTION 21. A. Section 12-54-85(B) and (C) of the 1976 Code, as last amended by Act 86 of 1997, is further amended to read:

"(B) Except as otherwise provided in this section,:

(1) if the a tax, except for a penalty described in item (2), is not required to be remitted with a return or document, the amount of taxes must be determined and assessed within thirty-six months after the later of the date the tax was due or the first date on which any part of the tax was paid; and

(2) a penalty that is not associated with the assessment of a tax must be determined and assessed within thirty-six months after the date of the violation giving rise to the penalty.

(C) Taxes may be determined and assessed after the thirty-six month limitation if:

(1) in the case of income, estate and generation skipping transfer taxes, the taxes are assessed within one hundred eighty days of receiving notice from the Internal Revenue Service of a final determination of a tax adjustment made by the Internal Revenue Service;

(2)(1) there is fraudulent intent to evade the taxes;

(3)(2) the taxpayer failed to file a return or document as required by law;

(4)(3) there is a twenty percent understatement of the total taxes required to be shown on the return or document. The taxes in this case may be assessed at any time within seventy-two months from the date the return or document was filed or due to be filed, whichever is later;

(5)(4) the person liable for any taxes consents in writing, before the expiration of the time prescribed in this section for assessing taxes due, to the assessment of the taxes after the time prescribed by this section."

B. Section 12-54-85(D) of the 1976 Code, as last amended by Act 114 of 1999, is further amended to read:

"(D)(1) A corporation shall notify the department in writing of all changes in taxable income reported to the Internal Revenue Service when the taxable income is changed by the Internal Revenue Service. Notification to the department must be made within ninety days after a final determination is received from the Internal Revenue Service. Notification of adjustments made by the Internal Revenue Service must be made under separate cover from a return filed or due to be filed with the department.

Notwithstanding any restrictions on filing a claim for refund provided in subsection (F) below, a corporation may file a claim for refund resulting from an overpayment due to changes in taxable income made by the Internal Revenue Service within ninety days from the date the Internal Revenue Service changes the taxable income. Taxes due to an understatement of taxes resulting from adjustments of the Internal Revenue Service also may be determined and assessed after the thirty-six month limitation if:

(a) except as provided in item (b), in the case of income, estate, and generation skipping transfer taxes, the taxes are assessed before one hundred eighty days after the department receives notice from the taxpayer of a final determination of a tax adjustment made by the Internal Revenue Service; or

(b) in the case of individual income tax returns described in subitem (4)(c) below, the taxes are assessed before one hundred eighty days after the department receives notice of the tax adjustment from the Internal Revenue Service or the taxpayer, whichever occurs first.

(2) A person, including a pass-through entity, who conducts a trade or business, other than a trade or business of being an employee, shall notify the department in writing of all changes in taxable income reported to the Internal Revenue Service when the taxable income is changed by the Internal Revenue Service. Notification to the department must be made before one hundred eighty days after a final determination of a tax adjustment is made by the Internal Revenue Service.

(3) Notwithstanding a restriction on filing a claim for refund provided in subsection (F), a person may file a claim for refund resulting from an overpayment due to changes in taxable income made by the Internal Revenue Service, if the claim for refund is filed no later than one hundred eighty days after the date a final determination of a tax adjustment is made by the Internal Revenue Service. The refund described in this subsection applies only to the overpayment of taxes resulting from adjustments of the Internal Revenue Service.

(4) For the purposes of this subsection (D):

(a) the date the Internal Revenue Service makes a final determination of a tax adjustment is the federal assessment date;

(b) underpayments and overpayments resulting from adjustments of the Internal Revenue Service include both the year for which the adjustments were made and other tax years affected by the adjustments; and

(c) the individual income tax returns referred to in subitem (D)(1)(b) are those individual income tax returns that do not include income, deductions, or credits from a trade or business, other than the trade or business of being an employee."

SECTION 22. Section 56-3-240 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( ) In addition to other registration requirements the department shall collect a federal employer identification number or social security number when a vehicle is registered with a gross vehicle weight of more than twenty-six thousand pounds or as a bus common carrier."

SECTION 23. A. Section 12-6-1120(3) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(3) Reserved The exclusion permitted by Internal Revenue Code Section 1031 is not permitted for the sale or exchange of real estate located in this State unless the real estate received in the exchange is located in this State."

B. Section 12-6-1180 of the 1976 Code is repealed.

C. Notwithstanding the general effective date of this act, this section applies for taxable years beginning after 1998.

SECTION 24. A. Chapter 45, Title 12 of the 1976 Code is amended by adding:

"Section 12-45-420. Notwithstanding another provision of law, a committee composed of the county auditor, county treasurer, and county assessor may waive, dismiss, or reduce a penalty levied against real or personal property in the case of an error by the county."

B. Section 12-43-217 of the 1976 Code is amended by adding:

"(C) Postponement of the implementation of revised values pursuant to subsection (B) shall also postpone any requirement for submission of a reassessment program for approval by the Department of Revenue."

C. This SECTION takes effect upon approval by the Governor.

SECTION 25. A. The General Assembly finds that (1) it is necessary to clarify the law as to the person or entity liable for payment of the ad valorem tax on real property and to provide a specific procedure for both the enforcement of payment of the tax on the property and the protection of the rights of all holders of interest in the property, and (2) this may be cited as "The Real Property Tax Liability Act".

B. Chapter 45, Title 12 of the 1976 Code is amended by adding:

"Section 12-45-78. If a homestead exemption is granted pursuant to Section 12-37-250 or a residential classification is made pursuant to Section 12-43-220(c) after payment of the property tax for that year, a resulting overpayment must be refunded to the owner of record at the time the exemption is granted or the classification is made."

C. Section 12-37-610 of the 1976 Code, as last amended by Act 431 of 1996, is further amended to read:

"Section 12-37-610. Every Each person is liable to pay taxes and assessments on the real estate which property that, as of December thirty-first of the year preceding the tax year, he owns in fee, for life, or as trustee, as recorded in the public records for deeds of the county in which the property is located, or on the real property that, as of December thirty-first of the year preceding the tax year, he has care of as guardian, executor, or committee or may have the care of as guardian, executor, trustee, or committee."

D. Section 12-51-40 of the 1976 Code, as last amended by Act 285 of 1998, is further amended to read:

"Section 12-51-40. After the county treasurer issues his execution against a defaulting taxpayer in his jurisdiction, as provided in Section 12-45-180, signed by him or his agent in his official capacity, directed to the officer authorized to collect delinquent taxes, assessments, penalties, and costs, requiring him to levy the execution by distress and sale of so much of the defaulting taxpayer's estate, real or personal, or both, as may be sufficient or property transferred by the defaulting taxpayer, the value of which generated all or part of the tax, to satisfy the taxes, assessments, penalties, and costs, the officer to which the execution is directed shall:

(a) On April first or as soon thereafter after that as practicable, mail a notice of delinquent property taxes, penalties, assessments, and costs to the current owner defaulting taxpayer and to a grantee of record at of the property, whose value generated all or part of the tax. The notice must be mailed to the best address available, which is either the address shown on the deed conveying the property to him, the property address, or such other corrected or forwarding address that the current owner of record has filed with the appropriate tax authority, of which corrected or forwarding address the officer authorized to collect delinquent taxes, assessments, penalties, and costs has actual knowledge, or to a known grantee of the delinquent taxpayer of the property on which the delinquency exists of which the officer authorized to collect delinquent taxes, penalties, and costs has actual knowledge. The notice must specify that if the taxes, penalties, assessments, and costs are not paid, the property must be advertised and sold to satisfy the delinquency.

(b) If the taxes remain unpaid after thirty days from the date of mailing of the delinquent notice, or as soon thereafter as practicable, take exclusive possession of so much of the current owner of record's property as is necessary to satisfy the payment of the taxes, assessments, penalties, and costs. In the case of real property, exclusive possession is taken by mailing a notice of delinquent property taxes, assessments, penalties, and costs to the current owner defaulting taxpayer and any grantee of record of the property at the address shown on the tax receipt or to an address of which the officer has actual knowledge, by 'certified mail, return receipt requested-restricted delivery' pursuant to the United States Postal Service 'Domestic Mail Manual Section S912'. If the addressee is an entity instead of an individual, the notice must be mailed to its last known post office address by certified mail, return receipt requested, as described in Section S912. In the case of personal property, exclusive possession is taken by mailing the notice of delinquent property taxes, assessments, penalties, and costs to the person at the address shown on the tax receipt or to an address of which the officer has actual knowledge. All delinquent notices shall specify that if the taxes, assessments, penalties, and costs are not paid before a subsequent sales date, the property must be duly advertised and sold for delinquent property taxes, assessments, penalties, and costs. The return receipt of the 'certified mail' notice is equivalent to 'levying by distress'.

(c) In the event If the 'certified mail' notice has been returned, take exclusive physical possession of the property against which the taxes, assessments, penalties, and costs were assessed by posting a notice at one or more conspicuous places on the premises, in the case of real estate, reading: 'Seized by person officially charged with the collection of delinquent taxes of (name of political subdivision) to be sold for delinquent taxes', the posting of the notice is equivalent to levying by distress, seizing, and taking exclusive possession thereof of it, or by taking exclusive possession of personalty. In the case of personal property, the person officially charged with the collection of delinquent taxes is not required to move the personal property from where situated at the time of seizure and further, the personal property may not be moved after seized by anyone under penalty of conversion unless delinquent taxes, assessments, penalties, and costs have been paid. Mobile homes are considered to be personal property for the purposes of this section unless the owner gives written notice to the auditor of the mobile home's annexation to the land on which it is situated.

(d) The property must be advertised for sale at public auction. The advertisement must be in a newspaper of general circulation within the county or municipality, if applicable, and must be entitled 'Delinquent Tax Sale'. It shall must include the delinquent taxpayer's name and the description of the property, a reference to the county auditor's map-block-parcel number being sufficient for a description of realty. The advertising must be published once a week prior to before the legal sales date for three consecutive weeks for the sale of real property, and two consecutive weeks for the sale of personal property. All expense expenses of the levy, seizure, and sale must be added and collected as additional costs, and shall must include, but not be limited to, the expense expenses of taking possession of real or personal property, advertising, storage, identifying the boundaries of the property, and mailing certified notices. When the real property is divisible, the tax assessor, county treasurer, and county auditor shall may ascertain that portion of the property that is sufficient to realize a sum upon sale sufficient to satisfy the payment of the taxes, assessments, penalties, and costs. In such those cases, the officer shall may partition the property and furnish a legal description of it.

(e) As an alternative, upon approval by the county governing body, a county may use the procedures provided in Chapter 56, Title 12 as the initial step in the collection of delinquent taxes on real and personal property.

(f) For the purpose of enforcing payment and collection of property taxes when the true owner is unknown because of the death of the owner of record and the absence of probate administration of the decedent's estate, the property must be advertised and sold in the name of the deceased owner of record."

E. Section 12-51-50 of the 1976 Code, as last amended by Act 146 of 1997, is further amended to read:

"Section 12-51-50. The property duly advertised must be sold, by the person officially charged with the collection of delinquent taxes, at public auction at the courthouse or other convenient place within the county, if designated and advertised, on a legal sales date during regular hours for legal tender payable in full by cash, cashier's check, certified check, or money order on the date of the sale. In case If the defaulting taxpayer or the grantee of record of the property has more than one item advertised to be sold, as soon as sufficient funds have been accrued to cover all of the defaulting taxpayer's delinquent taxes, assessments, penalties, and costs, no further items may not be sold."

F. Section 12-51-55 of the 1976 Code, as last amended by Act 431 of 1996, is further amended to read:

"Section 12-51-55. The officer charged with the duty to sell real property and mobile or manufactured housing for nonpayment of ad valorem property taxes shall submit a bid on behalf of the Forfeited Land Commission equal to the amount of all unpaid property taxes, penalties, and costs including taxes levied for the year in which the redemption period begins. If The Forfeited Land Commission determines real property on which delinquent taxes are due may be contaminated, the commission must annually notify the delinquent tax collector in writing before ordering a tax sale. A bid is not required on behalf of the forfeited land commission on this property is not required to bid on property known or reasonably suspected to be contaminated. If the contamination becomes known after the bid or while the commission holds the title, the title is voidable at the election of the commission. If the property is not redeemed, the excess above the amount of taxes, penalties, and costs for the year in which the property was sold must first be applied first to the taxes becoming due during the redemption period."

G. Section 12-51-60 of the 1976 Code, as last amended by Act 285 of 1998, is further amended to read:

"Section 12-51-60. The successful bidder at the delinquent tax sale shall pay legal tender as provided in Section 12-51-50 to the person officially charged with the collection of delinquent taxes in the full amount of the bid on the day of the sale. Upon payment, the person officially charged with the collection of delinquent taxes shall furnish the purchaser a receipt for the purchase money and. He must attach a copy of the receipt to the execution with the endorsement of his actions, which must be retained by him. Expenses of the sale must be paid first and the balance of all delinquent tax sale monies collected must be turned over to the treasurer. Upon receipt of the funds, the treasurer shall mark immediately mark the public tax records regarding the property sold as follows: Paid by tax sale held on (insert date). All other monies received, including any excess after payment of delinquent taxes, assessments, penalties, and costs, must be retained, paid out, and accounted for by the delinquent tax collector. Once a tax deed has been issued, the current defaulting taxpayer and the owner of record immediately before the end of the redemption period must be notified in writing by the delinquent tax collector of any excess due. The notice must be addressed and mailed to the current owner of record in the manner provided in Section 12-51-40(b) for taking exclusive possession of real property. Expenses of providing this notice are considered costs of the sale for purposes of determining the amount, if any, of the excess."

H. Section 12-51-90 of the 1976 Code, as last amended by Act 332 of 1996, is further amended to read:

"Section 12-51-90. (A) The defaulting taxpayer, any a grantee from the owner, or any mortgage or defaulting taxpayer, a mortgagee, a judgment creditor, or a lessee of the property, may within twelve months from the date of the delinquent tax sale, may redeem each item of real estate by paying to the person officially charged with the their collection, of the delinquent taxes, assessments, penalties, and costs, together with eight percent interest as provided in subsection (B) on the whole amount of the delinquent tax sale bid. In the case of a redemption in the last six months of the redemption period, for all real property except that classified pursuant to Section 12-43-220(c) at the time of the delinquent sale, the applicable rate of interest is twelve percent. If prior to the expiration of the redemption period, If the purchaser assigns his interest in any real property purchased at a delinquent tax sale, before the expiration of the redemption period, the grantee from the successful bidder shall furnish the person officially charged with the collection of delinquent taxes a conveyance, witnessed and notarized conveyance. The person officially charged with the collection of delinquent taxes shall replace the successful bidder's name and address with the grantee's name and address in the delinquent tax sale book.

(B)(1) Interest accrues on the whole amount of the delinquent tax sale bid according to the following schedule, based on the month of the redemption period the property is redeemed:

Month of Redemption Interest Imposed

First three months three percent

Months four, five, and six six percent

Months seven, eight, and nine nine percent

Final three months twelve percent

(2) The amount of interest due at any time during the redemption period may not exceed the amount of the bid on the property submitted on behalf of the Forfeited Land Commission pursuant to Section 12-51-55."

I. Section 12-51-120 of the 1976 Code, as last amended by Act 431 of 1996, is further amended to read:

"Section 12-51-120. Neither more than forty-five days nor less than twenty days prior to before the end of the redemption period for real estate sold for taxes, the person officially charged with the collection of delinquent taxes shall mail a notice by 'certified mail, return receipt requested-restricted delivery' to the owner of record immediately preceding the end of the redemption period at as provided in Section 12-51-40(b) to the defaulting taxpayer and to a grantee, mortgagee, or lessee of the property of record in the appropriate public records of the county. The notice must be mailed to the best address of the owner available to the person officially charged with the collection of delinquent taxes that the real property described on the notice has been sold for taxes and if not redeemed by paying taxes, assessments, penalties, costs and interest at the applicable rate on the bid price in the total amount of _____ dollars on or before _____ (twelve months from date of sale) (date) __________, a tax title will must be delivered to the successful purchaser at the tax sale. Under Pursuant to this chapter, the return of the certified mail 'undelivered' is not grounds for a tax title to be withheld or be found defective and ordered set aside or canceled of record."

J. Section 12-51-130 of the 1976 Code, as last amended by Act 34 of 1997, is further amended to read:

"Section 12-51-130. Upon failure of the defaulting taxpayer, any a grantee from the owner, or any mortgage a mortgagee, or a judgment creditor, or a lessee of the property to redeem realty within the time period allowed for redemption, the person officially charged with the collection of delinquent taxes, shall within thirty days or as soon thereafter after that as possible, shall make a tax title to the purchaser or the purchaser's assignee. Delivery of the tax title to the clerk of court or register of deeds is considered 'putting the purchaser, (or assignee), in possession'. The tax title shall must include, among other things, the name of the defaulting taxpayer, the name of any grantee of record of the property, the date of the execution, the date the realty was posted and by whom, and the dates each certified notice was mailed to the party or parties of interest, to whom mailed and whether or not received by the addressee. The successful purchaser, (or assignee), is responsible in the amount of fifteen dollars for the cost of the tax title plus any documentary stamps necessary to be affixed and recording fees. The successful purchaser, (or assignee), shall pay the amounts to the person officially charged with the collection of delinquent taxes before delivery of the tax title to the clerk of court or register of deeds and, upon payment, the person officially charged with the collection of delinquent taxes is responsible for promptly transmitting the tax title to the clerk of court or register of deeds for recording and remitting the recording fee and documentary stamps cost. In case If the tax sale of an item produced an overage in more cash above than the full amount due in taxes, assessments, penalties, and costs, the overage shall belong belongs to the defaulting taxpayer owner of record immediately before the end of the redemption period to be claimed or assigned according to law. These sums are payable ninety days after execution of the deed unless a judicial action is instituted during that time by another claimant. If neither claimed nor assigned within five years of date of public auction tax sale, the overage shall escheat to the general fund of the governing body. Prior to Before the escheat date unclaimed overages must be kept in a separate account and must be invested so as not to be idle and the governing body of the political subdivision is entitled to the earnings for keeping the overage. On escheat date the overage must be transferred to the general funds of the governing body."

K. Article 3, Chapter 49, Title 12 of the 1976 Code is repealed.

L. This SECTION takes effect January 1, 2001, except that subsection H. takes effect upon approval by the Governor and applies to redemptions of property sold at delinquent tax sales held after that date.

SECTION 26. A. Section 12-6-3510 of the 1976 Code, as added by Act 385 of 1998, is amended to read:

"Section 12-6-3510. (A) There is allowed as a nonrefundable A taxpayer may claim a credit against any tax imposed pursuant to this chapter of an amount equal to thirty-three percent, but not more than fifteen thousand dollars, of a the taxpayer's cash investment in a qualified South Carolina motion picture project. A taxpayer may claim no more than one credit in connection with the production of a single qualified South Carolina motion picture project. This credit is allowed over more than one taxable year but a taxpayer's total credit in all years, toward any such project, may not exceed fifteen thousand dollars. Any unused credit may be carried forward to five fifteen succeeding taxable years. For an investment made after the effective date of this section, the credit is allowed for a taxable year after December 31, 1998, beginning in the calendar year the project is registered as a qualified South Carolina motion picture project.

(B) In addition to the credit provided in subsection (A), a nonrefundable credit is allowed against any taxes imposed pursuant to this chapter A taxpayer may claim a credit in an amount equal to thirty-three percent of the value of a taxpayer's investment in the construction or conversion, or equipping, or any combination of these activities, of a motion picture production facility or post-production facility in this State in which the taxpayer purchases an ownership interest with the taxpayer's investment. No credit is allowed unless the total amount invested in the motion picture production facility has been expended directly in this State and is not less than two million dollars, exclusive of land costs, or the total amount invested in a post-production facility has been expended directly in this State and is not less than one million dollars, exclusive of land costs. Documentation sufficient to provide confirmation of this threshold must accompany the application for the credit. Any unused credit may be carried forward to five fifteen succeeding taxable years. The total amount of credit, which may be claimed by all taxpayers with respect to the construction, or conversion, or equipping, or any combination of these activities, of a single motion picture production facility or post-production facility may not exceed five million dollars. A taxpayer may claim the credit allowed by this section only one time in connection with a single motion picture production facility and one time in a single post-production facility.

(C) Credits allowed under this section are allocated to partners, limited liability company members, and subchapter "S" corporation shareholders based on the percentage of their interest. The credit is earned when the cash is spent or when qualifying real property is dedicated for use as part of a motion picture production facility or post-production facility. If a motion picture project, motion picture production facility, or post-production facility fails to meet the requirements of the section within three years from the end of the taxpayer's tax year when the credit was first claimed, then any taxpayer which claimed the credit shall increase its income tax liability in the fourth year by an amount equal to the amount of credits claimed in prior tax years with respect to the motion picture project, motion picture production facility, or post-production facility.

(D) Notwithstanding the amount of the credits allowed by this section, these credits, when combined with any other state income tax credits allowed the taxpayer for a particular taxable year, cannot reduce the taxpayer's South Carolina income tax liability more than fifty percent.

(E) All documentation provided by investors and their agents to the Department of Revenue in connection with claiming the credits allowed by this section is considered a tax return and subject to the penalty provisions of Section 12-54-40(f).

(F) As used in this section:

(1) 'Investment' means cash with respect to subsection (A) of this section, and with respect to subsection (B) of this section cash or the fair market value of real property with any improvements thereon, or any combination of these. To qualify as 'investment', cash must have been expended for services performed in this State, for tangible personal property dedicated to first use in this State, or for real property in this State. Investments in the form of real property must be real property located in this State on which facilities are located and can include the fair market value of a long-term lease of real property minus the fair market value of any consideration paid for the lease.

(2) 'Motion picture company' means an enterprise that is in the business of filming or producing motion pictures, or both.

(3) 'Motion picture production facility' means a site in this State that contains soundstages designed for the express purpose of film and television production for both theatrical and video release. Production includes, but is not limited to, motion pictures, made-for-television movies, and episodic television to a national audience. The motion picture production facility site must include production offices, construction shops/mills, prop and costume shops, storage area, parking for production vehicles, all of which complement the production needs and orientation of the overall facility purpose. The term does not include television stations, recording studios, or facilities predominately used to produce videos, commercials, training films, or advertising films. 'Motion picture facility' also includes a facility designed for the express purpose of accomplishing the post-production stage of film and television production for both theatrical and video release including, but not limited to, the creation of visual effects, editing, and sound mixing for motion picture/television projects. A post-production facility site is not required to contain a soundstage nor be physically located at or near soundstages.

(4)(3) 'Motion picture project' means a product intended for commercial exploitation that incurs at least one million dollars of costs directly in this State to produce a master negative motion picture for theatrical or television exhibition in the United States and in which at least twenty percent of total filming days of principal photography, but not fewer than ten filming days, is filmed in this State.

(4) 'Post-production facility' means a site in this State designated for the express purpose of accomplishing the post-production stage of film and television production for both theatrical and video release including the creation of visual effects, editing, and sound mixing. A post-production facility site is not required to contain a soundstage or be physically located at or near soundstages.

(5) 'Qualified South Carolina motion picture project' means a motion picture project which has registered by submitting its record of allocation of credits and documentation to the Department of Revenue, certifying that an amount equal to at least fifty percent of the total amount invested by all South Carolina investors in a single motion picture project, multiplied by five, has been expended directly in this State and that at least twenty percent of the total filming days of principal photography but not less than ten filming days, is filmed in this State. Before registration, all documentation of a motion picture project required to meet the credit requirements, must be received by the department.

(6)(a) In subsection (A) 'taxpayer' means the investor who invests in a qualified motion picture project.

(b) In subsection (B) 'taxpayer' means the investor who invests in the company that constructs, converts, or equips a 'qualified South Carolina motion picture production facility'.

(c) 'Taxpayer', with respect to a motion picture equity fund created for the sole, expressed purpose of facilitating a slate of 'qualified South Carolina motion picture projects', means the investors, partners, limited liability company members, and subchapter 'S' corporation shareholders who invest in the motion picture equity fund. Credits allowed under this subitem are allocated to the fund, based upon thirty-three percent of the cash value of its investment in a 'qualified South Carolina motion picture project' and distributed to equity fund members based upon the percentage of their interest in the equity fund."

B. This SECTION takes effect upon approval by the Governor and may be claimed by a taxpayer for tax years beginning after December 31, 1999, for qualifying motion picture projects and South Carolina motion picture production facilities if the taxpayer has not claimed the credit for these projects or facilities under the previous law. This section is repealed effective for taxable years beginning after June 30, 2005, but this repeal does not affect credits previously earned.

SECTION 27. Section 33-44-211(c) of the 1976 Code is amended to read:

"(c) The first annual report must be delivered to the Secretary of State between January first and April first of the year following the calendar year in which a limited liability company was organized or a foreign company was authorized to transact business. Subsequent annual reports must be delivered to the Secretary of State between January first and April first of the ensuing calendar years on or before the fifteenth day of the third month following the close of the taxable year."

SECTION 28. Article 1, Chapter 11, Title 6 of the 1976 Code is amended by adding:

"Section 6-11-330. (A) The governing body of the district, by a resolution adopted by two-thirds vote of all members of the governing body, request that board members be elected in a nonpartisan general election. If adopted, a certified copy of the resolution and a map clearly setting out the lines of the boundaries of the district in the county or counties in which the district is situated and the boundaries of single-member districts, if any, must be presented to the county election commission before August first of a general election held in an even-numbered year for the election to be held at the general election in November of that year.

(B)(1) Notice of the election must be published by the governing body of the district at least three times before the election, including:

(a) not less than sixty days before the date of the election;

(b) a date not more than fifteen and not less than ten days before the date of the election; and

(c) two weeks after the first date of publication.

(2) The notice must appear in a newspaper of general circulation within the district and contain, at a minimum, the following:

(a) the full name of the district and its governing body;

(b) the names, addresses, and telephone numbers of the members of the district's governing body;

(c) the existing means of appointment of members of the district's governing body;

(d) a brief description of the governmental services provided by the district;

(e) a map showing generally the boundaries of the district and the boundaries of single-member districts, if any;

(f) a list of precincts and polling places in which ballots may be cast;

(g) an explanation of the procedure to be followed for election of members of the district's governing body.

(C) On the first Tuesday following the first Monday in November in the year immediately following the year of the resolution, the voters shall elect commissioners for all seats on the district's governing body. Candidates must file, pursuant to the provisions of Section 6-11-70(B), with the county election commission. All commissioners must be elected for terms of four years with terms staggered so that a simple majority of the commissioners are elected in the next ensuing general election year, and the remaining commissioners are elected at the next following general election. The commissioners receiving the highest number of votes shall receive the four-year terms. Those remaining commissioners shall serve terms of two years. At the expiration of the two-year terms, these commissioners are elected for terms of four years. All members serve until their successors are elected and qualify. The terms of office of commissioners whose seats are subject to contest in general election shall expire fourteen days following the general election.

(D) Each special purpose district shall provide by resolution for the election of its board. Boards shall select one of the following methods of election:

(1) members of the board elected from the district at large;

(2) members of the board elected from single-member election districts from the boundaries which have been drawn by the board set forth in the resolution required by Section 6-11-330(A); or

(3) some members of the board elected from single-member election districts and the remainder elected from the district at large.

(E) For the initial election of commissioners, all seats are considered vacant. From among the commissioners elected in the initial election, a simple majority serve terms which expire fourteen days following the general election held three years after the initial election. Those commissioners entitled to serve the initial three-year terms are those commissioners equal in number to a simple majority of the membership who received the highest number of votes cast in the initial election. The remaining commissioners serve terms which expire fourteen days following the general election held in the year following the initial election.

(F) The county election commission shall conduct and supervise the elections for commissioners in the manner governed by the election laws of this State, mutatis mutandis. Vacancies must be filled in the manner provided in Section 7-13-190."

Section 6-11-332. Notwithstanding the provisions of Section 2-1-240 or any other provision of law, in the case of special purpose districts, the governing bodies of which are presently appointed by the Governor, these appointments shall continue to be made in the manner presently provided by law. However, in the case of legislative delegations or members of them presently authorized to recommend or nominate to the Governor persons for membership on special purpose district governing bodies, this authority is limited to the making of nonbinding recommendations."

SECTION 29. This act takes effect upon approval by the Governor, except that SECTION 1 A. and B. apply to tax years beginning after 1997; SECTION 1 A. and B. are repealed effective July 1, 2005, but the repeal does not affect any moratorium in effect on that date; SECTION 3 applies to sales occurring after the date of approval by the Governor; SECTION 4 applies to taxable years beginning after December 31, 2000; SECTION 5 applies to returns filed after December 31, 1999; SECTION 10 A. applies to taxable periods ending after December 31, 1999; SECTION 10 B. applies to tax returns due after October 31, 2000, and does not affect an action or proceeding commenced or a right accrued before October 1, 2000; and SECTION 18 applies to inducement agreements entered into after December 31, 2000.

This web page was last updated on Friday, June 26, 2009 at 3:00 P.M.