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Indicates Matter Stricken
Indicates New Matter
AMENDED
June 7, 2001
S. 718
S. Printed 6/7/01--H.
Read the first time June 5, 2001.
TO AMEND SECTION 4-29-67, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FEE IN LIEU OF PROPERTY TAX ALLOWED CERTAIN DEVELOPMENT PROJECTS, SO AS TO PROVIDE ADDITIONAL TIME FOR THE REQUIRED NEW INVESTMENT THRESHOLDS TO BE MET IN THE CASE OF A BUSINESS ELIGIBLE FOR THE FOUR PERCENT ASSESSMENT RATIO IN THE FEE AGREEMENT.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-24-40 of the 1976 Code is amended by adding a new item (15) to read:
"(15) transferring title to facilities for transmitting electricity that is transferred, sold, or exchanged by electrical utilities, municipalities, electric cooperatives, or political subdivisions to a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act;"
SECTION 2. Section 12-36-2120 of the 1976 Code is amended by adding a new item (59) to read:
"(59) facilities for transmitting electricity that is transferred, sold, or exchanged by electrical utilities, municipalities, electric cooperatives, or political subdivisions to a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act;"
SECTION 3. Section 12-6-3410(J) of the 1976 Code is amended by adding a new item to read:
"(9) 'corporation', 'corporate', 'company', and 'taxpayer' for purposes of this section also include a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act regardless of whether the limited liability company is treated as a partnership or as a corporation for South Carolina income tax purposes. If treated as a partnership, a limited liability company that qualifies for a credit under this section passes the credit through to its members in proportion to their interests in the limited liability company. Each member's share of the credit is nonrefundable but is allowed as a credit against any tax under Section 12-6-530 or Section 12-20-50. Each member may carry any unused credit forward as provided in subsection (F). The limited liability company may not carry forward a credit that passes through to its members."
SECTION 4. Chapter 10, Title 12 of the 1976 Code is amended by adding:
"Section 12-10-95. (A) Subject to the conditions in this section, a business engaged in manufacturing or processing operations or technology intensive activities at a manufacturing, processing, or technology intensive facility as defined in Section 12-6-3360(M) and that meets the requirements of Section 12-10-50(B) may negotiate with the council to claim as a credit against withholding five hundred dollars a year for the retraining of a production or technology employee if retraining is necessary for the qualifying business to remain competitive or to introduce new technologies. In addition to the yearly limits, the retraining credit claimed against withholding may not exceed two thousand dollars over five consecutive years for each retrained production or technology employee.
(B) A qualifying business is eligible to claim as a retraining credit against withholding the lower amount of the following:
(1) the retraining credit for the applicable withholding period as determined by subsection (A); or
(2) withholding paid to the State for the applicable withholding period.
(C) All retraining must be approved by a technical college under the jurisdiction of the State Board for Technical and Comprehensive Education. A qualifying business must submit a retraining program for approval by the appropriate technical college. The approving technical college may provide the retraining itself, subject to the retraining program, or contract with other training entities to provide the required retraining.
(D) Travel and lodging expenses and wages for retraining participants are not reimbursable.
(E) The qualifying business must match on a dollar-for-dollar basis the amount claimed as a credit against withholding for retraining. When applicable, the total amount of retraining credits and matching funds must be paid to the technical college that provides the training. All training costs, including costs in excess of the retraining credits and matching funds, are the responsibility of the business.
(F) A qualifying business claiming retraining credits pursuant to this section is subject to the reporting and audit requirements in Section 12-10-80(A).
(G) A qualifying business may not claim retraining credit for training provided to the following production or technology employees:
(a) temporary or contract employees; and
(b) employees who are subject to a revitalization agreement, including a preliminary revitalization agreement."
SECTION 5. Section 12-2-25 of the 1976 Code is amended to read:
"Section 12-2-25. (A) As used in this title and unless otherwise required by the context:
(1) 'partnership' includes a limited liability company taxed for South Carolina income tax purposes as a partnership.;
(2) 'partner' includes any a member of a limited liability company taxed for South Carolina income tax purposes as a partnership.;
(3) 'corporation' includes a limited liability company or professional or other association taxed for South Carolina income tax purposes as a corporation.; and
(4) 'shareholder' includes any a member of a limited liability company taxed for South Carolina income tax purposes as a corporation.
(B) Single-member limited liability companies which are not taxed for South Carolina income tax purposes as a corporation, and grantor trusts, to the extent they are grantor trusts, will be ignored for all South Carolina tax purposes. For South Carolina tax purposes:
(1) a single-member limited liability company, which is not taxed for South Carolina income tax purposes as a corporation, is not regarded as an entity separate from its owner;
(2) a 'qualified subchapter 'S' subsidiary', as defined in Section 1361(b)(3)(B) of the Internal Revenue Code, is not regarded as an entity separate from the 'S' corporation that owns the stock of the qualified subchapter 'S' subsidiary; and
(3) a grantor trust, to the extent that it is a grantor trust, is not regarded as an entity separate from its grantor.
(C) For purposes of this section, the Internal Revenue Code reference is as provided in Section 12-6-40(A)."
SECTION 6. Section 12-6-40 of the 1976 Code, as last amended by Section 7, Part II, Act 387 of 2000, is further amended to read:
"Section 12-6-40. (A)(1) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1999 2000, and includes the effective date provisions contained therein in it.
(2)(a) For purposes of this title, 'Internal Revenue Code' is deemed to contain all changes necessary for the State to administer its provisions. Unless a different meaning is required:
( i) 'Secretary', 'Secretary of the Treasury', or 'Commissioner' means the Director of the Department of Revenue.
( ii) 'Internal Revenue Service' means the department.
(iii) 'Return' means the appropriate state return.
( iv) 'Income' includes the modifications required by Article 9 of this chapter and allocation and apportionment as provided in Article 17 of this chapter.
Other terms in the Internal Revenue Code must be given the meanings necessary to effectuate this item.
(b) For purposes of Internal Revenue Code Sections 67 (Two Percent Floor on Miscellaneous Itemized Deductions), 71 (Alimony and Separate Maintenance Payments), 85 (Unemployment Compensation), 165 (Losses), 170 (Charitable Contributions), 213 (Medical and Dental Expenses), 219 (Retirement Savings), 469 (Passive Activity Losses and Credits Limited), and 631 (Gain or Loss in the Case of Timber, Coal, or Domestic Iron Ore), 'Adjusted Gross Income' for South Carolina income tax purposes means a taxpayer's adjusted gross income for federal income tax purposes without regard to the adjustments required by Article 9 and Article 17 of this chapter.
(c) For a taxpayer utilizing the provisions of Internal Revenue Code Section 1341 (Computation of Tax where Taxpayer Restores Substantial Amount Held under Claim of Right) for South Carolina tax purposes the phrase 'taxes imposed by this chapter' means taxes imposed by Chapter 6 of this title.
(d) The terms defined in Internal Revenue Code Sections 7701, 7702, and 7703 have the same meaning for South Carolina income tax purposes, unless a different meaning is clearly required.
(B) All elections made for federal income tax purposes in connection with Internal Revenue Code Sections adopted by this State automatically apply for South Carolina income tax purposes unless otherwise provided. A taxpayer may not make an election solely for South Carolina income tax purposes except for elections not applicable for federal purposes, including filing a combined or composite return as provided in Sections 12-6-5020 and 12-6-5030, respectively.
(C) For purposes of Internal Revenue Code Sections 67 (Two Percent Floor on Miscellaneous Itemized Deductions), 71 (Alimony and Separate Maintenance Payments), 85 (Unemployment Compensation), 165 (Losses), 170 (Charitable Contributions), 213 (Medical and Dental Expenses), 219 (Retirement Savings), 469 (Passive Activity Losses and Credits Limited), and 631 (Gain or Loss in the Case of Timber, Coal, or Domestic Iron Ore), "Adjusted Gross Income" for South Carolina income tax purposes means a taxpayer's adjusted gross income for federal income tax purposes without regard to the adjustments required by Article 9 and Article 17 of this chapter.
(D) For a taxpayer utilizing the provisions of Internal Revenue Code Section 1341 (Computation of Tax where Taxpayer Restores Substantial Amount Held under Claim of Right) for South Carolina tax purposes the phrase "taxes imposed by this chapter" means taxes imposed by Chapter 6 of this title.
(E) The terms defined in Internal Revenue Code Sections 7701, 7702, and 7703 have the same meaning for South Carolina income tax purposes, unless a different meaning is clearly required.
(F)(C) If a taxpayer complies with the provisions of Internal Revenue Code Section 367 (Foreign Corporations), it is not necessary for the taxpayer to obtain the approval of the department. The taxpayer shall attach a copy of the approval received from the Internal Revenue Service to its next South Carolina income tax return."
SECTION 7. Section 12-6-50(11) of the 1976 Code is amended to read:
"(11) Sections 861 through 908, 912, and 931 through 940, and 944 through 989 relating to the taxation of foreign income;"
SECTION 8. Section 12-6-2210(A) of the 1976 Code is amended to read:
"(A) If the entire business of a taxpayer is transacted or conducted within this State, the income tax as provided in this chapter is measured by the entire net income of the taxpayer for the taxable year. The entire business of the taxpayer is transacted and or conducted within the State if the taxpayer is not subject to a net income tax or a franchise tax measured by net income in another state, the District of Columbia, a territory or possession of the United States, or a foreign country, or and would not be subject to a net income tax in another such taxing jurisdiction if the other taxing jurisdiction adopted the net income tax laws of this State."
SECTION 9. Section 12-6-3330(C)(2) of the 1976 Code is amended to read:
"(2) The term 'South Carolina earned income' means income which that is earned income within the meaning of Internal Revenue Code Section 911(d)(2) or 401(c)(2)(C) which and is taxable in this State, except that:
(a) it does not include an amount:
( i) received from a retirement plan or an annuity;
( ii) paid or distributed from an individual retirement plan as defined in Internal Revenue Code Section 7701(a)(37);
(iii) received as deferred compensation; or
( iv) received for services performed by an individual employed by his spouse within the meaning of Internal Revenue Code Section 3121(b)(3)(A)(B) as amended through December 31, 1987; and
(b) Internal Revenue Code Section 911(d)(2)(B) must be applied without regard to the phrase 'not in excess of thirty percent of his share of net profits of such trade or business'."
SECTION 10. Section 12-6-3410(J)(1) and (4) are amended to read:
"(1) 'Corporate headquarters' means the facility or portion of a facility where corporate staff employees are physically employed, and where the majority of the company's financial, personnel, legal, planning, information technology, or other headquarters related functions are handled either on a regional or national basis. A corporate headquarters must be a regional corporate headquarters or a national corporate headquarters as defined below:
(a) National corporate headquarters must be the sole corporate headquarters in the nation and handle headquarters related functions on a national basis. A national headquarters shall be deemed to handle headquarters related functions on a national basis from this State if the corporation has a facility in this State from which the corporation engages in interstate commerce by providing goods or services for customers outside of this State in return for compensation.
(b) Regional corporate headquarters must be the sole corporate headquarters within the region and must handle headquarters related functions on a regional basis. For purposes of this section, 'region' or 'regional' means a geographic area comprised of either:
( i) at least five states, including this State, or
(ii) two or more states, including this State, if the entire business operations of the corporation are performed within fewer than five states.
(4) 'Headquarters related functions and services' are those functions involving financial, personnel, administrative, legal, planning, information technology, or similar business functions."
SECTION 11. Section 12-6-3500 of the 1976 Code is amended to read:
"Section 12-6-3500. If the right to receive retirement income by a taxpayer allowed the deduction pursuant to Section 12-6-1170 was earned by the taxpayer while residing in another state which imposed state income tax on the employee's contributions, a credit is allowed against the taxpayer's South Carolina income tax liability in an amount sufficient to offset the taxes paid the other state. This credit must be claimed over the taxpayer's lifetime. The department shall prescribe the amount of the annual credit based on the taxpayer's life expectancy at the time of the election made pursuant to the taxpayer first claims the retirement income deduction pursuant to Section 12-6-1170, and may require the documentation it determines necessary to verify the amount of income tax paid the other state on the contributions. Regardless of the tax rates applicable on the contributions in the other state, the total of the credit allowed may not exceed an amount determined by multiplying the contributions taxed in each year by the marginal South Carolina individual income tax rate for that year."
SECTION 12. Section 12-6-3520 of the 1976 Code is amended to read:
"Section 12-6-3520. (A) There shall be is allowed as a tax credit against the income tax liability of a taxpayer an amount equal to fifty percent of the costs incurred by the taxpayer for habitat management or construction and maintenance of improvements on real property that are made to land as described in Section 50-15-55(A) and which meets meet the requirements of regulations promulgated by the Department of Natural Resources pursuant to Section 50-15-55(A). For purposes of this section, 'costs incurred' means those monies spent or revenue foregone for habitat management or construction and maintenance, but does not include revenue foregone as increases in land values or speculative costs related to development.
(B) All costs must be incurred on land that has been designated as a certified management area for endangered species enumerated in Section 50-15-40 or for nongame and wildlife species determined to be in need management under Section 50-15-30.
(C) The tax credit allowed by this section must be claimed in the year that such the costs, as provided in subsection (B), are incurred as provided for in subsection (B). The This credit established by this section taken in one year may not exceed fifty percent of the taxpayer's income tax liability due pursuant to Section 12-6-510 or 12-6-530 for that year. If the amount of the credit exceeds the taxpayer's income tax liability for that taxable year, the taxpayer may carry forward any the excess for up to ten years.
(D) If during any taxable year the landowner voluntarily chooses to leave the agreement made concerning the certified areas during any taxable year after taking the tax credit, then the taxpayer's tax liability for the current taxable year must be increased by the full amount of any credit claimed in prior previous years with respect to the property.
(E)(1) An 'S' corporation, limited liability company, or partnership that qualifies for the credit under pursuant to this section as an 'S' corporation or partnership entitles may pass through the credit earned to each shareholder of the 'S' corporation, member of the limited liability company, or partner of the partnership to a nonrefundable credit against taxes. Any credit generated by an 'S' corporation must first be used against any tax liability of the 'S' corporation under Section 12-6-530. Any remaining credit passes through to the shareholders of the 'S' corporation.
(2) The amount of the credit allowed a shareholder, member, or partner, or owner of a limited liability company pursuant to this section is equal to the shareholder's percentage of stock ownership, the member's interest in the limited liability company, or the partner's interest in the partnership, for the taxable year, multiplied by the amount of the credit that the taxpayer would have been entitled to if it were taxed as a corporation earned by the entity. Credit earned by an 'S' corporation owing corporate level income tax must be used first at the entity level. Only the remaining credit passes through to the shareholders of the 'S' corporation.
(3) For purposes of this subsection, 'limited liability company' means a limited liability company taxed like a partnership."
SECTION 13. Section 12-10-30 of the 1976 Code, as last amended by Act 399 of 2000, 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) 'Gross wages' means wages subject to withholding.
(5) '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.
(6) 'New job' means a job created or reinstated as defined in Section 12-6-3360(M)(3).
(7) 'Qualifying business' means a business that meets the requirements of Section 12-10-50 and other applicable requirements of this chapter and, where required pursuant to Section 12-10-50, enters into a revitalization agreement with the council to undertake a project pursuant to the provisions of this chapter.
(8) 'Project' means an investment for one or more purposes pursuant to this chapter needed for a qualifying business to locate, remain, or expand in this State and otherwise fulfill the requirements of this chapter.
(9) 'Preliminary revitalization agreement' means the application by the qualifying business for benefits pursuant to Section 12-10-80 or 12-10-81 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.
(10) '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.
(11) 'Qualifying expenditures' means those expenditures that meet the requirements of Section 12-10-80(C) or 12-10-81(D).
(12) 'Withholding' means employee withholding pursuant to Chapter 8 of this title.
(13) 'Technology employee' means an employee whose job qualifies for jobs tax credit pursuant to at a technology intensive facility as defined in Section 12-6-3360(M)(14) who is directly engaged in technology intensive activities at that facility.
(14) 'Production employee' means an employee directly engaged in manufacturing or processing at a manufacturing or processing facility as defined in Section 12-6-3360(M).
(15) 'Retraining agreement' means an agreement entered into between a business and the council in which a qualifying business is entitled to retraining credit pursuant to Section 12-10-95.
(16) 'Retraining credit' means the amount that a business may claim as a credit against withholding pursuant to Section 12-10-95 and the retraining agreement.
(17) 'Technology intensive activities' means the design, development, and introduction of new products or innovative manufacturing processes, or both, through the systematic application of scientific and technical knowledge at a technology intensive facility as defined in Section 12-6-3360(M)."
SECTION 14. Section 12-10-50 of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"Section 12-10-50. (A) To qualify for the benefits provided in this chapter, a business must be located within this State and must:
(1) be engaged primarily in a business of the type identified in Section 12-6-3360;
(2) provide a benefits package, including health care, to full-time employees at the project;
(3) enter into a revitalization agreement 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 a revitalization agreement is not required for a qualifying business with respect to Section 12-10-80(D); and
(4) 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
(b) the business otherwise fulfills the requirements of this chapter.
(B) To qualify for benefits pursuant to Section 12-10-95, a business must:
(1) be engaged in manufacturing or processing operations or technology intensive activities at a manufacturing, processing, or technology intensive facility as defined in Section 12-6-3360(M);
(2) provide a benefits package, including health care, to employees being retrained; and
(3) enter into a retraining agreement with the council."
SECTION 15. Section 12-10-80 of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"Section 12-10-80. (A) A business that qualifies pursuant to Section 12-10-50(A) and has certified to the council that the business has met the minimum job requirement and minimum capital investment provided for in the revitalization agreement may claim job development credits as determined by this section.
(1) A business may claim job development credits against its withholding on its quarterly state withholding tax return for the amount of job development credits allowable pursuant to this section.
(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. If a qualifying business is not current as to all taxes due and owing to the State as of the date of the return on which the credit would be claimed, without regard to extensions, the business is barred from claiming the credit that would otherwise be allowed for that quarter.
(3) A qualifying business may receive claim 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 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 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) by Section 12-10-95, it must be treated as misappropriated employee withholding.
(7) Except as provided in subsection (D), 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 of the qualifying business in which it enters into a preliminary revitalization agreement.
(8) If a qualifying business claims job development credits 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 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.
(9) Each qualifying business claiming in excess of ten thousand dollars in a calendar year must furnish an audited report prepared by an independent certified public accountant 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. The department shall impose a penalty pursuant to Section 12-54-210 for all reports filed after June thirtieth or the approved extension date, whichever is later.
(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. The department shall impose a penalty pursuant to Section 12-54-210 for all reports filed after June thirtieth or the approved extension date, whichever is later.
(11) An employer may not claim an amount that results in an employee's receiving a smaller amount of wages on either a weekly or on an annual basis than the employee would receive otherwise in the absence of this chapter.
(B)(1) The maximum job development credit a qualifying business may claim for new employees is limited to the lesser of withholding tax paid to the State on a quarterly basis or the sum of the following amounts:
(a) two percent of the gross wages of each new employee who earns 6.74 dollars $6.95 or more an hour but less than 8.99 dollars $9.27 an hour;
(b) three percent of the gross wages of each new employee who earns 8.99 dollars 9.27 or more an hour but less than 11.23 dollars $11.58 an hour;
(c) four percent of the gross wages of each new employee who earns 11.23 dollars $11.58 or more an hour but less than 16.85 dollars $17.38 an hour; and
(d) five percent of the gross wages of each new employee who earns 16.85 dollars $17.38 or more an hour.
(2) The hourly gross wage figures in item (1) must be adjusted annually by an inflation factor determined by the State Budget and Control Board. The amount that may be claimed by a qualifying business is limited by subsection (C) and the revitalization agreement. The council may approve a waiver of ninety-five percent of the limits pursuant to subsection (C) for qualifying businesses making a significant capital investment as defined in Section 4-12-30(D)(4) or Section 4-29-67(D)(4).
(C) To claim a job development credit, the qualifying business must incur qualified expenditures at the project or for utility or transportation improvements that serve the 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 for any of the following purposes:
(a) training costs and facilities;
(b) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise;
(c) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunications;
(d) fixed transportation facilities including highway, rail, water, and air;
(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;
(f) employee relocation expenses associated with new or expanded technology intensive facilities as defined in Section 12-6-3360(M)(14);
(g) financing the costs of a purpose described in items (a) through (f).
(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:
(1)(a) one hundred percent of the maximum job development credits may be claimed by businesses located in counties designated as 'least developed';
(2)(b) eighty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'underdeveloped';
(3)(c) seventy percent of the maximum job development credits may be claimed by businesses located in counties designated as 'moderately developed'; or
(4)(d) fifty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as 'developed'.
(2) The amount that may be claimed as a job development credit by a qualifying business is limited by this subsection and by the revitalization agreement. The council may approve a waiver of ninety-five percent of the limits provided in item (1) for a qualifying business making a significant capital investment as defined in Section 4-12-30(D)(4), 4-29-67(D)(4), or 12-44-30(8).
(3) 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.
(E) 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)Subject to the conditions in this section, 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 and technology 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 and performed by the appropriate technical college under the jurisdiction of the State Board for Technical and Comprehensive Education. 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 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. 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 must cease to claim job development credits as to that employee.
(F) 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.
(G) For purposes of the job development credit allowed by this section, an employee is a person whose job was created in this State.
(H) 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)."
SECTION 16. Section 12-10-81 of the 1976 Code, as last amended by Act 399 of 2000, is further 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 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 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; except that the business must certify to the council that the business has satisfied all minimum capital investment and job requirements identified in the revitalization agreements but not certified by the council to the department before July 1, 2001. 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 certifies to the council that the business has satisfied 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 pursuant to subsection (C)(1)(a) through (d) of this section apply only to withholding on jobs created pursuant to a revitalization agreement adopted pursuant to this section and to the amounts withheld on wages and salaries on those jobs.
(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. If a qualifying business is not current as to all taxes due and owing to the State as of the date of the return on which the credit would be claimed, without regard to extensions, the business is barred from claiming the credit that would otherwise be allowed for that 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 project or projects described in the revitalization agreement.
(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.
(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 overpayment of withholding resulting from the claiming of a job development credit according to the revitalization agreement.
(7) Each qualifying business must furnish an audited report prepared by an independent certified public accountant 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. The department shall impose a penalty pursuant to Section 12-54-210 for all reports filed after June thirtieth or the approved extension date, whichever is later.
(8) An employer may not claim an amount that results in an 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 $6.74 $6.95 or more an hour but less than $8.99 $9.27 an hour;
(b) three percent of the gross wages of each new employee who earns $8.99 $9.27 or more an hour but less than $11.23 $11.58 an hour;
(c) four percent of the gross wages of each new employee who earns $11.23 $11.58 or more an hour but less than $16.85 $17.38 an hour;
(d) five percent of the gross wages of each new employee who earns $16.85 $17.38 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 base wages in item (1) must be adjusted annually by the inflation factor determined by the State Budget and Control Board. The amount 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 project or for utility or transportation improvements that serve the 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 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:
(a) training costs and facilities;
(b) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise;
(c) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunication;
(d) fixed transportation facilities including highway, rail, water, and air; or
(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 amount claimed by a qualifying business is limited by this subsection and the terms of the revitalization agreements. The business may use either the job development escrow procedure 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 rules of the council, in the council's discretion, to assist the business.
(4) 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 as to that employee.
(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 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."
SECTION 17. Section 12-13-20 of the 1976 Code is amended to read:
"Section 12-13-20. The term 'net income', as used in this chapter, means taxable income as determined for a regular corporation in Chapter 7 6 of this title after deducting all earnings accrued, paid, credited, or set aside for the benefit of holders of savings or investment accounts, any additions to reserves which are required by law, regulation, or direction of appropriate supervisory agencies, and a bad debt deduction. The bad debt deduction allowable for South Carolina income tax purposes is the amount determined under the Internal Revenue Code and the applicable regulations as amended through December 31, 1986 as defined in Section 12-6-40. No deductions from income are allowed for any additions to undivided profits or surplus accounts other than herein required, and for the purposes of this chapter, a state-organized association is allowed the same deductions for bad debt reserves as those allowed to federally organized associations. Associations shall maintain the bad debt reserves allowed as a deduction pursuant to this section in accordance with the provisions of the Internal Revenue Code as amended through December 31, 1986, as defined in Section 12-6-40 and shall keep a permanent record. These provisions are controlling notwithstanding any other provision of law."
SECTION 18. Section 12-13-60 of the 1976 Code is amended to read:
"Section 12-13-60. For the purpose of administration, enforcement, collection, liens, penalties, and other similar provisions, all of the provisions of Chapter 7 6 of this title that may be are appropriate or applicable are adopted and made a part of this chapter, including the requirement to make declarations requirements of declaration and payment of estimated tax and make estimated tax payments."
SECTION 19. Section 12-20-90 of the 1976 Code is amended to read:
"Section 12-20-90. The amount of the license fee required by Section 12-20-50 for a bank holding company, insurance holding company system, and savings and loan holding company must be measured by the capital stock and paid-in surplus of the holding company exclusive of the capital stock and paid-in surplus of a bank, insurer, or savings and loan association that is a subsidiary of the holding company. For the purposes of this section, 'bank', 'bank holding company', and 'subsidiary' of a bank holding company have the same definitions as in Section 34-24-20; 'insurer', 'insurance holding company system', and a 'subsidiary' of an insurance holding company system have the same definitions as in Section 38-21-10; and savings and loan 'association', 'savings and loan holding company', and a 'subsidiary' of a savings and loan company have the same definitions as in Section 34-28-300."
SECTION 20. Section 12-20-110 of the 1976 Code is amended to read:
"Section 12-20-110. The provisions of this chapter do not apply to any:
(1) nonprofit corporation organized under Article 1 of pursuant to Chapter 31 or 33 of Title 33 and exempt from income taxes pursuant to Section 501 of the Internal Revenue Code of 1986;
(2) volunteer fire department and rescue squad;
(3) cooperative organized under Chapter 45 or 47 of pursuant to Title 33;
(4) bank, building and loan association, or credit union doing a strictly mutual business;
(5) insurance company or association including any a fraternal, beneficial, or mutual protection insurance company; or
(6) foreign corporation whose entire income is not included in excluded from gross income for federal income tax purposes due to any a treaty obligation of the United States; or
(7) homeowners' association within the meaning of Internal Revenue Code Section 528(c)(1)."
SECTION 21. Section 12-28-1135(A) of the 1976 Code is amended to read:
"(A) Each person who engages in the business of selling taxable motor fuel at wholesale or retail or storing or distributing purchases taxable motor fuel for resale within this State from a licensed terminal supplier first shall obtain a fuel vendor license which is operative for all locations controlled or operated by that licensee in this State or in any other state from which the person removes fuel for delivery and use in South Carolina."
SECTION 22. A. Section 12-28-1730(E) of the 1976 Code is amended to read:
"(E) The department may impose a civil penalty against every terminal operator who wilfully fails to meet shipping paper issuance requirements under Sections 12-28-920, 12-28-1500, and 12-28-1575 or wilfully files a return without the supporting schedules as required by the department pursuant to Sections 12-28-1330 and 12-28-1340. The civil penalty imposed on the terminal operator is the same as the civil penalty imposed under subsection (B)."
B. Section 12-28-1730 of the 1976 Code is amended by adding:
"(H) If a person liable for the tax files a return and wilfully fails to provide all information required by the department, the department may add to the tax the amount provided in Section 12-54-43(C)(1)."
SECTION 23. Section 12-36-90(2)(h) of the 1976 Code is amended to read:
"(h) the sales price, not including sales tax, of property on sales which are actually charged off as bad debts or uncollectible accounts for state income tax purposes. A taxpayer who pays the tax on the unpaid balance of an account which has been found to be worthless and is actually charged off for state income tax purposes may take credit for the tax paid a deduction for the sales price charged off as a bad debt or uncollectible account on a return filed pursuant to this chapter, except that if an amount charged off is later paid in whole or in part to the taxpayer, the amount paid must be included in the first return filed after the collection and the tax paid. The deduction allowed by this provision must be taken within one year of the month the amount was determined to be a bad debt or uncollectible account."
SECTION 24. Section 12-36-130 of the 1976 Code, as last amended by Section 2, Act 283 of 2000, is further amended by adding a paragraph at the end to read:
"The term 'sales price' as defined in this section, also does not include the sales price, not including tax, of property on sales which are actually charged off as bad debts or uncollectible accounts for state income tax purposes. A taxpayer who pays the tax on the unpaid balance of an account which has been found to be worthless and is actually charged off for state income tax purposes may take a deduction for the sales price charged of as a bad debt or uncollectible account on a return filed pursuant to this chapter, except that if an amount charged off is later paid in whole or in part to the taxpayer, the amount paid must be included in the first return filed after the collection and the tax paid. The deduction allowed by this paragraph must be taken within one year of the month the amount was determined to be a bad debt or uncollectible account."
SECTION 25. Section 12-36-910(B)(3) of the 1976 Code is amended to read:
"(3) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages. Charges for mobile telecommunications services subject to the tax under this item must be sourced in accordance with the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code. The term 'charges for mobile telecommunications services' is defined for purposes of this section the same as it is defined in the Mobile Telecommunications Sourcing Act. All other definitions and provisions of the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code are adopted;"
SECTION 26. Section 12-36-910(B) of the 1976 Code is amended by adding:
"(5) gross proceeds accruing or proceeding from the sale or recharge at retail or prepaid wireless calling arrangements.
(a) 'Prepaid wireless calling arrangements' means communication services that:
( i) are used exclusively to purchase wireless telecommunications;
( ii) are purchased in advance;
(iii) allow the purchaser to originate telephone calls by using an access number, authorization code, or other means entered manually or electronically; and
( iv) are sold in units or dollars which decline with use in a known amount.
(b) All charges for prepaid wireless calling arrangements must be sourced to the:
( i) location in this State where the over-the-counter sale took place;
( ii) shipping address if the sale did not take place at the seller's location and an item is shipped; or
(iii) either the billing address or location associated with the mobile telephone number if the sale did not take place at the seller's location and no item is shipped."
SECTION 27. Section 12-36-940 of the 1976 Code is amended to read:
"Section 12-36-940. (A) Every Each retailer may add to the sales price as a result of the five percent state sales tax:
(1) no amount on sales of ten cents or less;
(2) one cent on sales of eleven cents and over, but not in excess of through twenty cents;
(3) two cents on sales of twenty-one cents and over, but not in excess of through forty cents;
(4) three cents on sales of forty-one cents and over, but not in excess of through sixty cents;
(5) four cents on sales of sixty-one cents and over, but not in excess of through eighty cents;
(6) five cents on sales of eighty-one cents and over, but not in excess of through one dollar;
(7) one cent additional for each twenty cents or major fraction thereon in excess of it over of one dollar.
(B) The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect them from the purchaser does not relieve the taxpayer from the tax levied by this article.
(C) For purposes of the state sales tax on accommodations and applicable combined state sales and local tax for counties imposing a local sales tax collected by the department on their behalf, retailers may add to the sales price an amount equal to the total state and local sales tax rate times the sales price. The amount added to the sales price may not be less than the amount added pursuant to subsection (A). In calculating the tax due, retailers may round a fraction of more than one-half of a cent to the next whole cent and a fraction of a cent of one-half or less must be eliminated. The inability, impracticability, refusal, or failure to add the tax to the sales price as allowed by this subsection and collect them from the purchaser does not relieve the taxpayer of his responsibility to pay tax."
SECTION 28. Section 12-36-1310(B)(3) of the 1976 Code is amended to read:
"(3) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages. Charges for mobile telecommunications services subject to the tax under this item must be sourced in accordance with the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code. The term 'charges for mobile telecommunications services' is defined for purposes of this section the same as it is defined in the Mobile Telecommunications Sourcing Act. All other definitions and provisions of the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code are adopted;"
SECTION 29. Section 12-37-220(C) of the 1976 Code is amended to read:
"(C) Upon approval by the governing body of the county, the five-year partial exemption allowed pursuant to subsections (A)(7), and (B)(32), and (B)(34) is extended to an unrelated purchaser who acquires the facilities in an arms-length transaction and who preserves the existing facilities and existing number of jobs. The partial exemption applies for the purchaser for five years if the purchaser otherwise meets the exemption requirements."
SECTION 30. Section 12-54-43 of the 1976 Code, as last amended by Act 399 of 2000, is further amended by adding an appropriately lettered subsection to read:
"( ) A failure to deposit or pay taxes deducted and withheld pursuant to Article 5 of Chapter 8 subjects the withholding agent to a penalty of not less than ten dollars nor more than one thousand dollars. The penalty imposed by this item applies to failure to comply with the provisions of Section 12-54-250."
SECTION 31. Section 12-54-44(C) of the 1976 Code is amended to read:
"(C) A failure to deposit or pay taxes deducted and withheld pursuant to Article 5 of Chapter 8 subjects the withholding agent to a penalty of not less than ten dollars nor more than one thousand dollars. The penalty imposed by this item applies to failure to comply with the provisions of Section 12-54-250. Reserved"
SECTION 32. Chapter 54, Title 12 of the 1976 Code is amended by adding:
"Section 12-54-195. (A) As used in this section, 'responsible person' includes any officer, partner, or employee of the taxpayer who has a duty to pay to the department the sales tax due by the taxpayer or use tax required or authorized to be collected by the retailer pursuant to Chapter 36 of this title.
(B) If a retailer adds and collects the sales tax as permitted by Section 12-36-940, or collects the use tax from the purchaser as required by Section 12-36-1350, but the retailer fails to remit the tax collected to the department, then any responsible person may be held liable, individually and personally, for a penalty equal to one hundred percent of the tax collected but not remitted to the department. The tax is not collectible from the retailer to the extent the penalty imposed by this subsection is collected from a responsible person."
SECTION 33. Section 12-54-85 of the 1976 Code, as last amended by Act 399 of 2000, is further amended by adding an appropriately numbered subsection at the end to read:
"( )(1) An individual taxpayer is 'financially disabled' if he is unable to manage his financial affairs by reason of a medically determinable physical or mental impairment that is expected to result in death or that has lasted or is expected to last for a continuous period of not less than twelve months. An individual taxpayer does not have that impairment for this purpose unless proof of the existence of the impairment is provided to the department in the form and manner the department requests.
(2) The running of the period of limitation provided in subsection (F) is suspended during a period an individual taxpayer is considered financially disabled.
(3) An individual taxpayer may not be treated as financially disabled during a period that his spouse or another person is authorized lawfully to act on his behalf in financial matters."
SECTION 34. Section 12-54-85(F) of the 1976 Code is amended to read:
"(F)(1) Except as provided in subsection (D) above, claims for credit or refund must be filed within three years of from the time the timely filed return, including extensions, was filed, or two years from the date of payment the tax was paid, whichever is later. If no return was filed, a claim for credit or refund must be filed within two years from the date of payment the tax was paid. A credit or refund may not be made after the expiration of the period of limitation prescribed in this item for the filing of a claim for credit or refund, unless the claim for credit or refund is filed by the taxpayer or determined to be due by the department within that period.
(2) If the claim was filed by the taxpayer during the three-year period prescribed in item (1), the amount of the credit or refund may not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to three years plus the period of any extension of time for filing the return.
(3) If the claim was not filed within the three-year period, the amount of the credit or refund may not exceed the portion of the tax paid during the two years immediately preceding the filing of the claim.
(4) If no claim was filed, the credit or refund may not exceed the amount which would be allowable under item (2) or (3), as the case may be, as if a claim were filed on the date the credit or refund is allowed.
(5) For the purposes of this subsection:
(a) A return filed before the last day prescribed for the filing is considered as filed on the last day. Payment of any portion of the tax made before the last day prescribed for the payment of the tax is considered made on the last day. The last day prescribed for filing the return or paying the tax must be determined without regard to any extension of time.
(b) Any tax actually withheld at the source in respect of the recipient of income, is considered to have been paid by the recipient on the last day prescribed for filing his return for the taxable year, determined without regard to any extension of time for filing the return, with respect to which the taxpayer would be allowed a credit for the amount withheld.
(c) Any amount paid as estimated income tax for any taxable year is considered to have been paid on the last day prescribed for filing the return for the taxable year, determined without regard to any extension of time for filing the return.
(6) In the case of an individual, the running of the period specified in this subsection is suspended for a period of the individual's life during which he is financially disabled. For purposes of this item, an individual is financially disabled if he is unable to manage his financial affairs by reason of a medically determinable physical or mental impairment that is not expected to result in death or which has lasted or is expected to last for a continuous period of not less than twelve months. An individual must not be treated as financially disabled for a period during which his spouse or another person is authorized to act on his behalf in financial matters. An individual must not be considered financially disabled unless the following statements are submitted as part of the claim for credit or refund:
(a) a written statement signed by a physician qualified to make the determination that provides the:
( i) name and a brief description of the physical or mental impairment;
( ii) physician's medical opinion that the physical or mental impairment prevented the taxpayer from managing his financial affairs;
(iii) physician's medical opinion that the taxpayer's physical or mental impairment resulted in, or is expected to result in, death, or that it has lasted, or is expected to last, for a continuous period of not less than twelve months; and
( iv) specific time period during which the taxpayer was prevented by the physical or mental impairment from managing his financial affairs, to the best of the physician's knowledge; and
(b) a written statement by the taxpayer or the person signing the claim for credit or refund that the person, including the taxpayer's spouse, was not authorized to act on his behalf in financial matters for the period during which he was unable to manage his own financial affairs. Alternatively, if a person was authorized to act on the taxpayer's behalf in financial matters during part of that period of disability, the statement must contain the beginning and ending dates of the period of time the person was authorized; and
(c) other information the department may require.
The department, in its discretion, may adopt a determination made by the Internal Revenue Service with respect to an individual, and may follow rules issued by the Internal Revenue Service or Department of Treasury with regard to interpreting Internal Revenue Code section 6511(h)."
SECTION 35. Section 12-54-200 of the 1976 Code is amended to read:
"Section 12-54-200. (a)(A) The department, at its discretion, after notification as provided in subsection (b) of this section, may require any a person subject to provisions of law administered by the department, not including Section 12-35-330, to post a cash or surety bond, deposit and maintain taxes due including associated penalties and interest in a separate account in a bank or other financial institution in this State, or both, if the person fails to file a timely return or pay any a tax for as many as two tax filing periods in a twelve-month period.
(B) The amount of the bond must be determined by the department and may not be greater than three times the estimated average liability each filing period of the person required to file the return. A cash bond must be held by the State Treasurer, without interest, as surety conditioned upon prompt payment of all taxes, penalties, and interest imposed by law upon the person.
(C) If a person is required to maintain a separate account, he must give the name of the financial institution, the account number, and other information the department requires. Taxes, penalties, and interest due must be withdrawn from the account by preprinted, consecutively numbered checks signed by a properly authorized officer, partner, manager, employee, or member of the taxpayer and made payable to the department. Monies deposited in the account may not be commingled with other funds. The department, at its discretion, may apply Section 12-54-250, if the amount due from the taxpayer is twenty thousand dollars or more.
(D) When any a person required to post a bond or maintain a separate account, or both, complies with all requirements of law and regulations for a period of twenty-four consecutive months, the department shall return the bond and cancel the bonding and separate account requirements.
(b)(E) The department shall may serve the notice required by subsection (b) of this section by certified mail, or by delivery by an authorized agent of the department delivering the notice to the person in hand or by leaving the notice at the person's last or usual place of abode or at his place of business or employment. For corporations, partnerships, or trusts, the notice may be delivered by certified mail, or by delivery by an authorized agent for of the department delivering the notice to an officer, partner, or trustee in hand, or by leaving the notice at the officer's, partner's, or trustee's last or usual place of abode or at his place of business or employment.
(F) A person who fails to comply with this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than thirty days, or both. Offenses under this section are triable in magistrate's court. These penalties are in addition to other penalties provided by law."
SECTION 36. Section 12-54-227(A)(2) of the 1976 Code is amended to read:
"(2) For purposes of this section, 'delinquent tax claim' means a tax liability that is due and owing for a period longer than six months and for which the taxpayer has been given at least three notices requesting payment and for any subsequent tax debts issued, one notice of which has been sent by certified or registered mail. The notice sent by certified or registered mail must include includes a statement that the taxpayer's delinquency may be referred to a collection agency in the taxpayer's home state."
SECTION 37. Section 12-54-240(B)(6) of the 1976 Code is amended to read:
"(6) disclosure of a deficiency assessment to a probate court or to an attorney conducting a closing, the filing of a tax lien for uncollected taxes, and the issuance of a notice of levy;"
SECTION 38. Section 12-56-120 of the 1976 Code is amended to read:
"Section 12-56-120. The department is and Internal Revenue Service are exempt from the notice and appeal procedures of this chapter. The sole and exclusive appeal procedures procedure for the setoff of any a debt owed to the department is governed by the provisions of Chapter 60 of Title 12 which provides the sole and exclusive remedy for these procedures. The appeal procedure in connection with a liability to the Internal Revenue Service is governed by Title 26 of the United States Code."
SECTION 39. Section 12-58-185(A) of the 1976 Code is amended to read:
"(A) The department, in its discretion, may accept installment payment for amounts due for a period not to exceed one year from the date the payment was due originally. Interest accrues during the installment period, pursuant to Section 12-54-25. In addition, the department may extend the time for payment of an amount due it for a period not to exceed eighteen months from the date fixed for the payment and, in exceptional cases, for a further period not to exceed twelve months. An extension under pursuant to this section may be granted only where if it is shown to the satisfaction of the department that the payment of the amount due it upon the date originally fixed for the payment will result in undue hardship to the taxpayer."
SECTION 40. Section 12-60-90(C) of the 1976 Code is amended to read:
"(C) Taxpayers may be represented during the administrative tax process by:
(1) the same individuals who can may represent them in administrative tax proceedings with the Internal Revenue Service pursuant to Section 10.3 (a), (b), and (c), Section 10.7 (a), (1) (c)(i) through (4) and (7) (c)(vi), and (c)(viii), and Section 10.7 (b) (d) and (c) (e) of United States Treasury Department Circular No. 230; and
(2) a real estate appraiser who is registered, licensed, or certified pursuant to Chapter 60 of Title 40 during the administrative tax process in a matter limited to questions concerning the valuation of real property."
SECTION 41. Section 4-37-30(A)(15) of the 1976 Code, as amended by Act 368 of 2000, is further amended to read:
"(15) The revenues of the tax collected in each county pursuant to this section must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues and all interest earned on the revenues while on deposit with him quarterly to the county in which the tax is imposed and these revenues and interest earnings must be used only for the purpose stated in the imposition ordinance. The State Treasurer may correct misallocation misallocations costs or refunds by adjusting later distributions, but these adjustments must be made in the same fiscal year as the misallocation misallocations. However, allocations made as a result of city or county code errors must be corrected prospectively."
SECTION 42. A. Section 6(A) of Act 588 of 1994 is amended to read:
"(A) The revenues of the tax collected in the county under this act must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue and Taxation of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer who holds the debt service funds established for payment of principal and interest on the bonds to which the tax is applicable. The State Treasurer may correct misallocation misallocations costs or refunds by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocation. However, allocations made as a result of city or county code errors must be corrected prospectively."
B. Section 6 of Act 588 of 1994, as last amended by Act 458 of 1998, is further amended by adding at the end:
"(D) Annually, in the month of June, funds collected by the Department of Revenue from the Cherokee County School District 1 School Bond-Property Tax Relief Act which are not identified as to the governmental unit due the tax after reasonable effort by the department to determine the source of collection must be transferred to the State Treasurer's Office. The State Treasurer shall distribute these funds to the county treasurer in the county area in which the tax is imposed and the revenues must be used only for the purposes stated in the imposition resolution. The State Treasurer shall calculate this supplemental distribution on a proportional basis based on the current fiscal year's county area revenue collections."
SECTION 43. A. Section 7A of Act 441 of 2000 is amended to read:
"(A) The revenues of the tax collected in the county under this act must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the department of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer, who shall hold the debt service funds for payment of principal and interest on the bonds to which the tax is applicable. The State Treasurer may correct misallocation costs or refunds misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocation. However, allocations made as a result of city or county code errors must be corrected prospectively."
B. Section 7 of Act 441 of 2000 is amended by adding at the end:
"(D) Annually, in the month of June, funds collected by the Department of Revenue from the Chesterfield County School District School Bond-Property Tax Relief Act which are not identified as to the governmental unit due the tax after reasonable effort by the department to determine the source of collection must be transferred to the State Treasurer's Office. The State Treasurer shall distribute these funds to the county treasurer in the county area in which the tax is imposed and the revenues must be used only for the purposes stated in the imposition resolution. The State Treasurer shall calculate this supplemental distribution on a proportional basis based on the current fiscal year's county area revenue collections."
SECTION 44. Section 12-4-580(D)(1) is amended to read:
"(1) 'governmental entity' means the State and any state agency, board, committee, department, department, private or public institution of higher learning; all political subdivisions of the State; and all federal agencies, boards, and departments. 'Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members."
SECTION 45. RESERVED
SECTION 46. Chapter 43, Title 12, of the 1976 Code is amended by adding:
"Section 12-43-285. (A) The governing body of a political subdivision on whose behalf a property tax is billed by the county auditor shall certify in writing to the county auditor that the millage rate levied is in compliance with laws limiting the millage rate imposed by that political subdivision.
(B) If a millage rate is in excess of that authorized by law, the county treasurer shall either issue refunds or transfer the total amount in excess of that authorized by law, upon collection, to a separate, segregated fund, which must be credited to taxpayers in the following year as instructed by the governing body of the political subdivision on whose behalf the millage was levied. An entity submitting a millage rate in excess of that authorized by law shall pay the costs of implementing this subsection or a pro rata share of the costs if more than one entity submits an excessive millage rate."
SECTION 47. Section 4-1-170 of the 1976 Code is amended to read:
"Section 4-1-170. (A) By written agreement, counties may develop jointly an industrial or business park with other counties within the geographical boundaries of one or more of the member counties as provided in Section 13 of Article VIII of the Constitution of this State. The written agreement entered into by the participating counties must include provisions which:
(1) address sharing expenses of the park;
(2) specify by percentage the revenue to be allocated to each county;
(3) specify the manner in which revenue must be distributed to each of the taxing entities within each of the participating counties.
(B) For the purpose of bonded indebtedness limitation and for the purpose of computing the index of taxpaying ability pursuant to Section 59-20-20(3), allocation of the assessed value of property within the park to the participating counties and to each of the taxing entities within the participating counties must be identical to the allocation of revenue received and retained by each of the counties and by each of the taxing entities within the participating counties. Misallocations may be corrected by adjusting later distributions, but these adjustments must be made in the same fiscal year as the misallocations. Provided, however, that the computation of bonded indebtedness limitation is subject to the requirements of Section 4-29-68(E).
(C) If the industrial or business park encompasses all or a portion of a municipality, the counties must obtain the consent of the municipality prior to the creation of the multi-county industrial park."
SECTION 48. Section 12-51-90(B) of the 1976 Code, as last amended by Act 334 of 2000, is further amended to read:
"(B) The lump sum amount of interest is due on the whole amount of the delinquent tax sale based on the month during the redemption period the property is redeemed and that rate relates back to the beginning of the redemption period according to the following schedule:
Month of Redemption Period Amount of Interest Imposed
Property Redeemed
First three months three percent of the bid amount
Months four, five, and six six percent of the bid amount
Months seven, eight, and nine nine percent of the bid amount
Last three months twelve percent of the bid amount
However, in every redemption, the amount of interest due must not exceed the amount of the bid on the property submitted on behalf of the forfeited land commission pursuant to Section 12-51-55."
SECTION 49. Section 33-44-211(c) of the 1976 Code, as last amended by Act 395 of 2000, is further 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 on or before the fifteenth day of the third fourth month following the close of the taxable year."
SECTION 50. A. Section 12-36-2620(2) of the 1976 Code is amended to read:
"(2) a one percent tax, which must be credited as provided in Section 59-21-1010(B). The one percent tax specified in this item does not apply to the issuance of certificates of title or other proof of ownership to an individual eighty-five years of age or older titling or registering a motor vehicle, motorcycle, boat, motor, or airplane for his own personal use, if at the time of sale, the individual requests the one percent exclusion from tax and provides the retailer with proof of age."
B. Section 12-36-2630(2) of the 1976 Code is amended to read:
"(2) a one percent tax, which must be credited as provided in Section 59-21-1010(B). The one percent tax specified in this item (2) does not apply to sales to an individual eighty-five years of age or older purchasing tangible personal property for his own personal use, if at the time of sale, the individual requests the one percent exclusion from tax and provides the retailer with proof of age; and"
C. Section 12-36-2640(2) of the 1976 Code is amended to read:
"(2) a one percent tax which must be credited as provided in Section 59-21-1010(B). The one percent tax specified in this item does not apply to the issuance of certificates of title or other proof of ownership to an individual eighty-five years of age or older titling or registering a motor vehicle, motorcycle, boat, motor, or airplane for his own personal use, if at the time of sale, the individual requests the one percent exclusion from tax and provides the retailer with proof of age."
D. Article 25, Chapter 36, Title 12 of the 1976 Code is amended by adding:
"Section 12-36-2646. (A) Retailers shall post a sign at each entrance or each cash register which advises individuals eighty-five years of age or older of the one percent exclusion from tax available under Sections 12-36-2620, 12-36-2630, and 12-36-2640.
(B) A retailer who fails to post the required signs is subject to a penalty of up to one hundred dollars for each month or portion of the month the sign or signs are not posted. Continued failure to post the signs after a written warning from the Department of Revenue may result in revocation of the retailer's retail license in accordance with Section 12-54-90. Failure to post the signs does not give rise to a cause of action by an individual eighty-five years of age or older who failed to request the exclusion and provide proof of age at the time of sale."
SECTION 51. A. Section 4-12-30(D)(4)(a) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"(a) The assessment ratio may not be lower than four percent:
(i) in the case of a business which is investing at least two hundred million dollars, which, when added to the previous investments, results in a total investment of at least four hundred million dollars, and which is creating at least two hundred new full-time jobs at the site qualifying for the fee;
(ii) in the case of a business which is investing at least four hundred million dollars and which is creating at least two hundred new full-time jobs at a site qualifying for the fee; or
(iii) in the case of investments totaling at least four hundred million dollars, in a county classified as either least developed or underdeveloped, by a limited liability company and/or one or more of the members or equity holders where a member or equity holder is creating, at a site qualifying for the fee, at least one hundred new full-time jobs with an average annual salary of at least forty thousand dollars within four years of the date of execution of the millage rate agreement; or
(iv) in the case of a sponsor and a sponsor affiliate, who together are investing at least four hundred million dollars and creating at least two hundred new full time jobs at the site qualifying for the fee and:
a. the investment by the sponsor affiliate is considered necessary and suitable for the operation of the sponsor facility;
b. the sponsor affiliate is located contiguous to the sponsor project;
c. one hundred percent of the output of the sponsor affiliate is provided to the sponsor for the project; and
d. the sponsor affiliate is not considered a supplier of manufactured parts or of any value added output of the sponsor."
B. Section 4-12-30(G) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"(G)(1) The county and the sponsor may enter into an agreement to establish the millage rate, a millage rate agreement, for purposes of calculating payments under subsection (D)(2)(a), and the first five years under subsection (D)(2)(b). This millage rate agreement must may be executed on the date of the inducement agreement or at any time thereafter up to and including, but not later than, the date of the initial lease agreement. This millage rate agreement may be a separate agreement or may be made a part of either the inducement agreement or the initial lease agreement.
(2) The millage rate established pursuant to subsection (G)(1) must cannot be lower than the a cumulative property tax millage rate legally levied by or on behalf of all taxing entities within which the subject property is to be located which is the cumulative rate that is applicable during the period beginning on the thirtieth day of June preceding the calendar year in which the millage rate agreement is executed and ending on the date the initial lease agreement is executed. If no a millage rate agreement is not executed on or before the date of the initial lease agreement, the millage rate is deemed considered to be the cumulative property tax millage rate applicable on the thirtieth day of June preceding the calendar year in which the initial lease agreement is executed by the parties.
(3) For purposes of determining the cumulative property tax millage rate under pursuant to subsection (G)(2), the millage rate assessed by a municipality must may not be included in the computation even if the subject property was located in the jurisdiction of the taxing entity as of June thirtieth preceding the calendar year in which the millage rate agreement is executed, if, pursuant to agreement on the part of the taxing entity at the time of execution of the millage rate agreement, the taxing entity de-annexes the subject property before execution of the initial lease."
C. Section 4-29-10(3) of the 1976 Code, as last amended by Act 151 of 1997, is further amended to read:
"(3) 'Project' means any land and any buildings and other improvements on the land including, without limiting the generality of the foregoing, water, sewage treatment and disposal facilities, air pollution control facilities, and all other machinery, apparatus, equipment, office facilities, and furnishings which are considered necessary, suitable, or useful by the following investors or any combination of them:
(a) any enterprise for the manufacturing, processing, or assembling of any agricultural or manufactured products;
(b) any commercial enterprise engaged in storing, warehousing, distributing, transporting, or selling products of agriculture, mining, or industry, or engaged in providing laundry services to hospitals, to convalescent homes, or to medical treatment facilities of any type, public or private, within or outside of the issuing county or incorporated municipality and within or outside of the State;
(c) any enterprise for research in connection with any of the foregoing or for the purpose of developing new products or new processes or improving existing products or processes;
(d) any enterprise engaged in commercial business including, but not limited to, wholesale, retail, or other mercantile establishments; residential and mixed use developments of two thousand five hundred acres or more; office buildings; computer centers; tourism, sports, and recreational facilities; convention and trade show facilities; and public lodging and restaurant facilities if the primary purpose is to provide service in connection with another facility qualifying under this subitem; and
(e) any enlargement, improvement, or expansion of any existing facility in subitems (a), (b), (c), and (d) of this item.
The term 'project' does not include facilities for an enterprise primarily engaged in the sale or distribution to the public of electricity, gas, or telephone services. A project may be located in one or more counties or incorporated municipalities. The term 'project' also includes any structure, building, machinery, system, land, interest in land, water right, or other property necessary or desirable to provide facilities to be owned and operated by any person, firm, or corporation for the purpose of providing drinking water, water, or wastewater treatment services or facilities to any public body, agency, political subdivision, or special purpose district. This definition is for purposes of industrial revenue bonds only."
D. Section 4-29-10 of the 1976 Code, as last amended by Act 151 of 1997, is further amended by adding at the end:
"(9) 'Investor' means one or more entities that sign the inducement agreement with the county and also includes an investor affiliate unless the context clearly indicates otherwise.
(10) 'Investor affiliate' means an entity that joins with, or is an affiliate of, an investor and that participates in the investment in, or financing of, a project.
(11) 'Business' means a single entity or two or more entities if they meet the qualifications of Section 4-12-30."
E. Section 4-29-67 of the 1976 Code, as last amended by Act 279 of 2000, is further amended to read:
"Section 4-29-67. (A) Notwithstanding the provisions of Section 4-29-60, in the case of a financing agreement in the form of one or more lease agreements for a project qualifying under pursuant to subsection (B), the county and the investor may enter into an inducement agreement which that provides for payment of a fee in lieu of taxes (fee) as provided in this section. All A references reference in this section to a lease agreement shall be deemed also to refer is considered a reference also to a lease purchase agreement.
(B) In order for For property to qualify for the fee as provided in subsection (D)(2):
(1) Title to the property must be held by the county or, in the case of a project located in an industrial development park as defined in Section 4-1-170, title may be held by more than one county, provided each county is a member of the industrial development park. Any real Real property transferred to the county must include a legal description and plat of the property.
(2) The investment must be a project which that is located in a single county or an industrial development park as defined in Section 4-1-170. A project located on a contiguous tract of land in more than one county, but not in such an industrial development park, may qualify for the fee provided if:
(a) the counties agree on the terms of the fee and the distribution of the fee payment;
(b) the minimum millage rate cannot be is not lower than the millage rate applicable to the county in which the greatest amount of investment occurs; and
(c) all such the counties must be parties to all agreements establishing the terms of the fee.
(3) The minimum level of investment must be at least forty-five million dollars and must be invested within the time period provided in subsection (C).
(4)(a) Except as provided in subsections (B)(4)(b) and (D)(4)(a), the investment must be made by a single entity. For purposes of this section, (i) any partnership or other association which properly files its South Carolina income tax returns as a partnership for South Carolina income tax purposes will be treated as a single entity and as a partnership, and (ii) any corporation or other association which properly files its South Carolina income tax returns as a corporation for South Carolina income tax purposes will be treated as a single entity and as a corporation. A corporation and a partnership, which partnership is a "controlled partnership" of the corporation, as provided under Section 707(b)(1) of the Internal Revenue Code as defined in Chapter 6 of Title 12, as of the date of the execution of the inducement agreement, and both of which will construct their projects on the same site qualifying for the fee, must be treated as a single entity for purposes of this subsection and subsections (B)(3) and (D)(4). Investment may be made by a business or a combination of businesses, except that each business must invest at least five million dollars at the project.
(b)(i) The members of the same controlled group of corporations can qualify for the fee if the combined investment in the county by the members meets the minimum investment requirements. The county and the members investors and investor affiliates who are part of the inducement agreement may agree that any investments by other members of the controlled group investor affiliates within the time periods provided in subsection (C)(1) and (2) shall qualify for the payment regardless of whether or not the member investor affiliate was part of the inducement agreement; provided, however, in order. to To qualify for the fee, such other members of the controlled group investor affiliates must be specifically approved specifically by the county and must agree to be bound by agreements with the county relating to the fee; provided, however, such controlled group members except that investor affiliates need not be bound by agreements, or portions of agreements, to the extent such those agreements do not affect the county; provided,. further, that with the consent of the county, such members will not be Investor affiliates are not bound by agreements or portions of agreements which do affect the county., if the affected county consents not to bind them. 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 at the same project. Any controlled group member which is claiming the fee must invest at least ten million dollars in the county or industrial park.
(ii) The Department of Revenue must be notified in writing of all members investors and investor affiliates which that have investments subject to the fee before or within thirty days after the execution of the lease agreement covering the investment by the member investor or investor affiliate. The Department of Revenue may extend the thirty-day period upon written request. Failure to meet this notice requirement will does not affect adversely affect the fee, but a penalty of up to ten thousand dollars a month or portion of a month with the total penalty not to exceed one hundred twenty thousand dollars may be assessed by the Department of Revenue for late notification for up to ten thousand dollars a month or portion of a month with the total penalty not to exceed one hundred twenty thousand dollars. Members of the controlled group must provide the information considered necessary by the Department of Revenue to ensure that the investors are part of a controlled group.
(iii) If, at any time, the controlled group or any former member (who has left the controlled group) no longer has the minimum forty-five million dollars of investment (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) will investment at the project falls below forty-five million dollars, the investor and investor affiliate no longer qualify for the fee.
(iv) For purposes of this section, 'controlled group' or 'controlled group of corporations' shall have the meaning provided under 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), without regard to subsections (a)(4) and (b) of Section 1563 If, at any time, a business no longer has a minimum investment of five million dollars at the project, without regard to depreciation, the investor or investor affiliate no longer qualifies for the fee.
(C)(1) From the end of the property tax year in which the investor and the county execute an inducement agreement, the investor has seven years in which to enter into an initial lease agreement with the county.
(2)(a) From the end of the property tax year in which the investor and the county execute the initial lease agreement, the investor has five years in which to complete its investment for purposes of qualifying for this section. If the investor does not anticipate completing the project within five years, the investor may apply to the county before the end of the five-year period for an extension of time, up to two years, to complete the project. If the The county county's agrees agreement to grant the extension, the county must do so be in writing, and a copy must be delivered to the Department of Revenue within thirty days of the date the extension was granted. The extension may not exceed two years in which to complete the project.
(b) There is no An extension allowed for of the five-year period in which to meet the minimum level of investment is not allowed. If the minimum level of investment is not met within five years, all property under covered by the lease agreement or agreements reverts retroactively to the payments required by Section 4-29-60. The difference between the fee actually paid by the investor and the payment which is due under pursuant to Section 4-29-60 is subject to interest, as provided in Section 12-54-25(D).
(c) Unless property qualifies as replacement property under pursuant to a contract provision enacted pursuant to subsection (F)(2), any property placed in service after the five-year period, or seven years in the case of a project which has received an extension, is not part of the fee agreement under pursuant to subsection (D)(2) and is subject to the payments required by Section 4-29-60 if the county has title to:
(i) the property,; or
(ii) to property taxes, as provided in Chapter 37 of Title 12, if the investor has title to the property.
(d) For purposes of those businesses qualifying under pursuant to Section 4-29-67(D)(4), the five-year period referred to in this subsection is eight years and the seven-year period is ten years.
(3) The annual fee provided by subsection (D)(2) is available for no more than twenty years. For projects which are completed and placed in service during a period of more than one year, each year's investment may be subject to the fee in subsection (D)(2) for twenty years to a maximum total of twenty-seven years for the fee for a single project which has been granted an extension. For those businesses qualifying under pursuant to subsection (D)(4), the annual fee is available for no more than thirty years and for those projects placed in service in more than one year, the annual fee is available for a maximum of thirty-seven years.
(4) Annually, during During the time period allowed to meet the minimum investment level, the investor annually must provide inform the total amount invested to the appropriate county official of the total amount invested.
(D) The inducement agreement must provide for fee payments, to the extent applicable, as follows:
(1)(a) Any property, If title to which is of property is transferred to the county, will be the property is subject, before being placed in service, to an annual fee payment as provided in Section 4-29-60 before being placed in service.
(b) Any undeveloped land, If title to which undeveloped land, is transferred to the county, will be the undeveloped land is subject, before being developed and placed in service, to an annual fee payment as provided in Section 4-29-60 developed land is before being developed and placed in service. The time during which fee payments are made under pursuant to Section 4-29-60 will not be considered are not part of the maximum periods provided in subsections subsection (C)(2) and (C)(3), and no a lease shall be considered is not an 'initial lease agreement' for purposes of this section unless and until the first day of the calendar year for which a fee payment is due under pursuant to subsection (D)(2) in connection with such the lease.
(2) After property qualifying under pursuant subsection (B) is placed in service, an annual fee payment, determined in accordance with one of the following, is due:
(a) an annual payment in an amount not less than the property taxes that would be due on the project if it were taxable, but using:
(i) an assessment ratio of not less than at least six percent, except as provided in subsection (D)(4),; and
(ii) a fixed millage rate as provided in subsection (G),: and
(iii) a fair market value estimate determined by the South Carolina Department of Revenue as follows:. (i) The estimate for real property using is the original income tax basis for South Carolina income tax purposes without regard to depreciation. However, if real property is constructed for the fee or is purchased in an arm's length transaction, fair market value is deemed to equal equals the original income tax basis, otherwise the Department of Revenue will shall determine fair market value by appraisal; and. The estimate (ii) for personal property using is the original income tax basis for South Carolina income tax purposes, less depreciation allowable for property tax purposes,; except that the investor is not entitled to any extraordinary obsolescence.;
(b) an annual payment based on any an alternative arrangement yielding a net present value of the sum of the fees for the life of the agreement not less than the net present value of the fee schedule as calculated under pursuant to subsection (D)(2)(a). Net present value calculations performed under pursuant to this subsection must use a discount rate equivalent to the yield in effect for new or existing United States Treasury bonds of similar maturity as published during the month in which the inducement agreement is executed. If no yield is available for the month in which the inducement agreement is executed, the last published yield for the appropriate maturity must be used. If there are no bonds of appropriate maturity available, bonds of different maturities may be averaged to obtain the appropriate maturity.; or
(c) an annual payment using a formula that results in a fee not less than the amount required pursuant to subsection (D)(2)(a), except that every fifth year the applicable millage rate is allowed to may increase or decrease in step with the average actual millage rate applicable in the district where the project is located based on the preceding five-year period.
(3) At the conclusion of the payments determined pursuant to items (1) and (2) of this subsection, an annual payment the annual fee payment is equal to the taxes due on the project as if it were taxable. When the property is no longer subject to the fee under pursuant to subsection (D)(2), the fee or property taxes must be assessed:
(a) with respect to real property, based on the fair market value as of the latest reassessment date for similar taxable property; and
(b) with respect to personal property, based on the then-depreciated value applicable to such the property under the fee, and thereafter after that continuing with the South Carolina property tax depreciation schedule.
(4)(a) The assessment ratio may not be lower than must be at least four percent:
(i) in the case of a business which is investing at least two hundred million dollars, which, when added to the previous investments, results resulting in a total investment of at least four hundred million dollars when added to previous investments, and which is creating at least two hundred new full-time jobs at the site qualifying for the fee;
(ii) in the case of a business which is investing at least four hundred million dollars and which is creating at least two hundred new full-time jobs at a site qualifying for the fee; or
(iii) in the case of investments totalling totaling at least four hundred million dollars, in a county classified as either least developed or underdeveloped, by a limited liability company and/or or one or more of its members or equity holders, or both of them, where if the member or equity holder is creating, at the site qualifying for the fee, at least one hundred new full-time jobs, at the site qualifying for the fee, with an annual average salary of at least forty thousand dollars within four years of the date of execution of a millage rate agreement.; or
(iv) in the case of a business which is investing at least six hundred million dollars in this State.
(v) in the case of investments totaling at least four hundred million dollars and creating at least two hundred new full-time jobs at the site qualifying for the fee and:
a. the investment by the investor affiliate is considered necessary and suitable for the operation of the sponsor facility;
b. the investor affiliate is located contiguous to the investor project;
c. one hundred percent of the output of the investor affiliate is provided to the investor for the project; and
d. the investor affiliate is not considered a supplier of manufactured parts or of any value added output of the investor.
(b) The new full-time jobs requirement of this item does not apply in the case of a taxpayer which business that paid more than fifty percent of all property taxes actually collected in the county for more than the twenty-five years ending on the date of the agreement paid more than fifty percent of all property taxes actually collected in the county.
(c) In an instance in which the governing body of a county, has by contractual agreement, has provided for a change in fee-in-lieu of taxes arrangements conditioned on a future legislative enactment, any a new enactment shall does not bind the original parties to the agreement unless the change is ratified by the governing body of the county.
(5) Notwithstanding the use of the term 'assessment ratio', a business an investor qualifying under pursuant to items item (2) or (4) of this subsection may negotiate an inducement agreement with a county using differing assessment ratios for different assessment years covered by the agreement. However, the The lowest assessment ratio allowed is the lowest ratio for which the business investor may qualify under this section.
(E) Calculations pursuant to subsection (D)(2) must be made on the basis that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under pursuant to Section 3(g) of Article X of the Constitution of this State and the exemption exemptions allowed pursuant to Section 12-37-220B(32) and (34).
(F) With regard to calculation of the fee provided in subsection (D)(2), the inducement agreement may provide for the disposal of property and the replacement of property subject to the fee as follows:
(1)(a) If an investor disposes of property subject to the fee, the fee must be reduced by the amount of the fee applicable to that property. (b) Property is disposed of only when it is scrapped or sold in accordance with the lease agreement. (c) If the investor used any method to compute the fee other than that provided in subsection (D)(2)(a), the fee on the property which was disposed of must be recomputed in accordance with subsection (D)(2)(a) and to the extent that the amount which that would have been paid under pursuant to subsection (D)(2)(a) exceeds the fee actually paid by the investor, the investor must pay the difference with the next fee payment due after the property is disposed of. If the investor used the method provided in subsection (D)(2)(c), the millage rate provided in subsection (D)(2)(c) must be used to calculate the amount which would have been paid under pursuant to subsection (D)(2)(a). (d) If there is no provision in the agreement dealing with the disposal of property in accordance with this subsection, the fee remains fixed and no adjustment to the fee is allowed for disposed property.
(2) Any property Property which is placed in service as a replacement for property which that is subject to the fee payment may become part of the fee payment as provided in this item:
(a) Replacement property does not have to serve the same may have a function as that differs from the property it is replacing. Replacement property is deemed considered to replace the oldest real or personal property subject to the fee, whether real or personal, which is and disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies for fee treatment provided in subsection (D)(2) only up to the original income tax basis of fee property it is replacing replaces. More than one piece of replacement property can may replace a single piece of fee property. To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the property which it is replacing replaces, the excess amount is subject to payments as provided in Section 4-29-60. Replacement property is entitled to the fee payment for the period of time remaining on the twenty-year fee period for the property which it is replacing replaces.
(b) The new replacement property which that qualifies for the fee provided in subsection (D)(2) is recorded using its income tax basis, and the fee is calculated using the millage rate and assessment ratio provided on the original fee property. The fee payment for replacement property must be based on subsections subsection (D)(2)(a) or (D)(2)(c), if the investor originally used this that method, without regard to present value.
(c) In order to To qualify as replacement property, title to the replacement property must be held by the county.
(d) If there is no provision in the inducement agreement dealing with replacement property, any property placed in service after the time period allowed for investments as provided by subsection (C)(2), is subject to the payments required by Section 4-29-60 if the county has title to:
(i) the property,; or
(ii) to property taxes, as provided in Chapter 37 of Title 12, if the investor has title to the property.
(G)(1) The county and the investor may enter into an agreement to establish the millage rate (millage rate agreement) for purposes of calculating payments under pursuant to subsection (D)(2)(a) and the first five years under pursuant to subsection (D)(2)(c). This millage rate agreement must may be executed on the date of the inducement agreement or at anytime any time thereafter up to and including, but not later than, the date of the initial lease agreement. This millage rate agreement may be a separate agreement or may be made a part of either the inducement agreement or the initial lease agreement.
(2) The millage rate established pursuant to item (1) of this subsection cannot must be lower than the a cumulative property tax millage rate legally levied by or on behalf of all taxing entities within which the subject property is to be located which is the cumulative rate that is applicable during the period beginning on the thirtieth day of June preceding the calendar year in which the millage rate agreement is executed and ending on the date the initial lease agreement is executed. If no a millage rate agreement is not executed on or before the date of the initial lease agreement, the millage rate is deemed to be the cumulative property tax millage rate applicable on the thirtieth day of June preceding the calendar year in which the initial lease agreement is executed by the parties.
(H)(1) Upon agreement of the parties county, investors, and investor affiliates, and except as provided in subsection (H)(2), an inducement agreement, a millage rate agreement, or both, may be amended or terminated and replaced with regard to all matters including, but not limited to, the addition or removal of controlled group members investors or investor affiliates.
(2) No An amendment or a replacement of an inducement agreement or millage rate agreement may not be used to change the millage rate, discount rate, assessment ratio, or length duration of the agreement under any such agreement.; However, except that an existing inducement agreements agreement which that have has not yet been implemented by the execution and delivery of a millage rate agreement or a lease purchase agreement, may be amended up to the date of execution and delivery of a millage rate agreement or a lease purchase agreement in the discretion of the governing body.
(I) Investment expenditures incurred by any an investor in connection with a project, or relevant phase of a project for those projects completed and placed in service in more than one year, qualify as expenditures subject to the fee in subsection (D)(2), so long as these expenditures are incurred:
(1) any time after, or within sixty days before, the county takes action reflecting or identifying the project or proposed project or investment including, but not limited to, the adoption of an inducement or similar resolution by county council; and
(2) before the end of the applicable time period for investments referenced in subsections subsection (C)(2) and (C)(3).
An inducement agreement must be executed within two years after the date on which the county takes action reflecting or identifying the project or proposed project or investment including, but not limited to, the adoption of an inducement or similar resolution by county council; otherwise, only investment expenditures made or incurred by any an investor after the date of such the inducement agreement in connection with a project shall qualify as expenditures subject to the fee in subsection (D)(2).
(J)(1) Subject to subsection (K), project investment expenditures which are incurred within the applicable time period provided in subsection (I) by an entity investor whose investments are not being computed in at the level of investment for purposes of subsections subsection (B) or (C) shall qualify as investment expenditures subject to the fee in subsection (D)(2) where if the:
(a) such expenditures are part of the original cost of the property which is that is transferred, within the applicable time period provided in subsection (I), to one or more other entities which are members of the same controlled group as the transferor entity and investors or investor affiliates whose investments are being computed in at the level of investment for purposes of subsections subsection (B) or (C); and
(b) such property would have qualified for the fee in subsection (D)(2) if it had been initially acquired by the transferee entity rather than instead of the transferor entity.
(2) The income tax basis of such the property immediately before such the transfer must equal the income tax basis of such the property immediately after such the transfer; provided, however, except that, to the extent income tax basis of such the property immediately after such the transfer unintentionally exceeds the income tax basis of such the property immediately before such the transfer, such the excess shall be is subject to payments under pursuant to Section 4-29-60.
(3) The county must agree to any an inclusion in the fee of the property described in subsection (J)(1).
(K)(1) Property which has been previously subject to property taxes in South Carolina will does not qualify for the fee except as provided in this subsection:
(a) land, excluding improvements thereon on it, on which a new project will be is located may qualify for the fee even if it has previously been subject to South Carolina property taxes;
(b) property which that has been subject previously to South Carolina property taxes, but which has never been placed in service in South Carolina, may qualify for the fee; and
(c) property which has been placed in service in South Carolina and subject to South Carolina property taxes which that is purchased in a transaction other than between any of the entities specified in Section 267(b) of the Internal Revenue Code, as defined under pursuant to Chapter 6 of Title 12 as of the time of the transfer, may qualify for the fee provided if the fee-paying entity investor invests at least an additional forty-five million dollars in the project.
(2) Repairs, alterations, or modifications to real or personal property which are not subject to a fee will are not be eligible for a fee, even if they are capitalized expenditures, except for modifications to existing real property improvements which constitute constituting an expansion of such the improvements.
(L)(1) For a project not located in an industrial development park as defined in Section 4-1-170, distribution of the fee in lieu of taxes on the project must be made in the same manner and proportion that the millage levied for school and other purposes would be distributed if the property were taxable. For this purpose, the relative proportions must be calculated based on the following procedure: holding constant the millage rate set in subsection (G) and using all tax abatements automatically granted for taxable property, a full schedule of the property taxes that would otherwise have been distributed to each millage-levying entity in the county must be prepared for the life of the agreement, for the maximum time period allowed under pursuant to (C)(3). The property taxes which that would have been paid on the property if it was were owned by the investor to each millage-levying entity as a percentage of the total of such the property taxes for all such the entities determines each entity's relative shares of each year's fee payment for all subsequent years of the agreement.
(2) For a project located in an industrial development park as defined in Section 4-1-170, distribution of the fee in lieu of taxes on the project must be made in the manner provided for by the agreement establishing the industrial development park.
(3) A county or municipality or special purpose district that receives and retains revenues from a payment in lieu of taxes may use a portion of this revenue for the purposes outlined in Section 4-29-68 without the requirement of issuing special source revenue bonds or the requirements of Section 4-29-68(A)(4).
(M) As a directly foreseeable result of negotiating the fee, gross revenue of a school district in which a project is located in any year a fee negotiated pursuant to this section is paid, may not be less than gross revenues of the district in the year before the first year for which a fee in lieu of taxes is paid. In negotiating the fee, the parties shall assume that the formulas for the distribution of state aid at the time of the execution of the inducement agreement must remain unchanged for the duration of the lease agreement.
(N) Projects on which a fee in lieu of taxes is paid pursuant to this section are considered taxable property at the level of the negotiated payments for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the index of taxpaying ability pursuant to Section 59-20-20(3). However, for a project located in an industrial development park as defined in Section 4-1-170, projects are considered taxable property in the manner provided in Section 4-1-170 for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the index of taxpaying ability pursuant to Section 59-20-20(3). Provided, however, that the computation of bonded indebtedness limitation is subject to the requirements of Section 4-29-68(E).
(O)(1) Any An interest in an inducement agreement, millage rate agreement, and lease agreement, and property to which the agreement relates, may be transferred to any other another entity at any time. Notwithstanding any other another provision of this chapter, any an equity interest in any an entity investor or investor affiliate with an interest in any inducement agreement, millage rate agreement, or lease agreement may be transferred to any other another entity or person at any time.
(2) A single entity, or two or more entities which are members of a controlled group, An investor or investor affiliate may enter into any a lending, financing, security, or similar arrangement, or succession of such arrangements, with any a financing entity, concerning all or part of a project and may enter into any a sale-leaseback arrangement, including without limitation, an assignment, a sublease, or similar arrangement, or succession of such arrangements, with one or more financing entities, concerning all or part of a project, regardless of the identity of the income tax owner of the property which is subject to the fee payment under pursuant to subsection (D)(2). Even though income tax basis is changed for income tax purposes, neither the original transfer to the financing entity nor the later transfer from the financing entity back to the original transferor or members of its controlled group, investor or investor affiliate pursuant to terms in the sale-leaseback agreement, affects the amount of the fee due.
(3) All A transfers transfer undertaken with respect to the project to effect a financing authorized under by subsection (O) must meet the following requirements:
(a) The Department of Revenue must receive written notification, in writing within sixty days after the transfer, of the identity of each transferee and other information required by the department with the appropriate returns. Failure to meet this notice requirement will does not affect adversely affect the fee, but a penalty up to ten thousand dollars a year or portion of a year up to a maximum penalty of one hundred twenty thousand dollars may be assessed by the department for late notification for up to ten thousand dollars a year or portion of a year up to a maximum penalty of one hundred twenty thousand dollars.
(b) If the financing entity is the income tax owner of property, either:
(i) the financing entity is primarily liable for the fee as to that portion of the project to which the transfer relates with the original transferor remaining secondarily liable for the payment of the fee; or
(ii) the original transferor must agree to continue to be primarily liable for the payment of the fee as to that portion of the project to which the transfer relates.
(4) Before an investor may transfer an inducement agreement, millage rate agreement, lease agreement, or the assets subject to the lease agreement, it must obtain the approval of the county with which it entered into the original inducement agreement, millage rate agreement, or lease agreement. However, no such That approval is not required in connection with transfers to investor affiliates or other financing-related transfers.
(P) Reserved.
(Q) Reserved.
(R) For purposes of subsections (O)(1)(a) and (P), and subject to subsection (U), each transferee, with respect to a project which is the subject of a transfer, shall be considered to have made amounts of qualified investments represented by the property interest which is subject to the fee and which is transferred, without regard to depreciation.
(S) Reserved.
(T)(P) No An inducement agreement, a millage rate agreement, or a lease agreement, nor or the rights of any an entity investor or investor affiliate pursuant to any such that agreement, including, without limitation, the availability of the subsection (D)(2) fee, shall may not be adversely affected adversely if the bonds issued pursuant to any such that agreement are purchased by one or more of the entities which that are or become parties to any such agreement investor or investor affiliates.
(U)(1)(Q) Notwithstanding any other provision of this section, if If an investor fails to make the minimum investment required under by subsection (D)(2) within the time provided in subsection (C)(2), then if and to the extent allowed pursuant to an applicable agreement between the investor and the county, the investor is entitled to the benefits of Chapter 12 of this title if and to the extent allowed pursuant to an applicable agreement between the investor and the county, and if the requirements of subsection (B(4)(a) are satisfied. Otherwise, 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 4-29-60 for the remainder of the lease period.
(2) Notwithstanding any other provision of this section, if at any time following the period provided in subsection (C)(2), the investment based income tax basis without regard to depreciation falls below the forty-five million dollar minimum investment to which the fee relates and is held by an entity or controlled group of entities, then if and to the extent allowed pursuant to any applicable agreement between the investor and the county, the investor is entitled to the benefits provided under Chapter 12 of this title. Otherwise, the fee provided in subsection (D)(2) is no longer available and the investor is required to make the payments which are due under Section 4-29-60 for the remainder of the lease period.
(V)(R) The minimum amount of the initial investment provided in subsection (B)(2) (B)(3) of this section may not be reduced except by a special vote which, for purposes of this section, means an affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting, but not less than three-fifths of the total membership in each branch.
(W)(S)(1) The investor shall file the returns, contracts, and other information which that may be required by the Department of Revenue.
(2) Fee payments, and returns calculating fee payments, are due at the same time as property tax payments and property tax returns would be due if the property were owned by the party investor or investor affiliate obligated to make such the fee payments and file such returns.
(3) Failure to make a timely fee payment and file required returns shall result results in penalties being assessed as if the payment or return was were a property tax payment or return.
(4) The Department of Revenue may issue the rulings and promulgate regulations it determines necessary or appropriate to carry out the purpose of this section.
(5) The provisions of Chapters 4 and 54 of Title 12, applicable to property taxes, shall apply to this section;, and, for purposes of such that application, the fee shall be considered is considered a property tax. Sections 12-54-20, 12-54-80, and 12-54-155 do not apply to this section.
(6) Within thirty days of the date of execution of an inducement or lease agreement, a copy of the agreement must be filed with the Department of Revenue and the county auditors auditor and the county assessors assessor for the every county or counties in which the project is located. If the project is located in a multicounty park, the agreements must be filed with the auditors and assessors for all counties participating in the multicounty park.
(X)(T) Except as otherwise expressly provided in subsection (C)(2), any a loss of fee benefits under pursuant to this section shall be is prospective only from the date of noncompliance and, subject to subsection (U)(Q), only with respect to that portion of the project to which such the noncompliance relates; provided, however, except that such the loss of fee benefits cannot may not result in the recovery from the fee-paying entity investor and investor affiliate of fee payments for more than:
(1) three years from the date a return concerning the fee is filed for the time period during which the noncompliance occurs,. absent a A showing of bad faith noncompliance, in which case such increases the three-year period shall instead be to a ten-year period; or
(2) ten years if no such a return is not filed for the time period during which the noncompliance occurs.
(Y)(U) Section 4-29-65 shall be inapplicable does not apply with respect to this section. All references in this section to taxes shall be considered to mean means South Carolina taxes unless otherwise expressly stated.
(Z) Reserved.
(AA)(V)(1) Notwithstanding any other another provision of this section, in the case of a qualified recycling facility the annual fee is available for no more than thirty years, and for those projects constructed or placed in service during a period of more than one year, the annual fee is available for a maximum of thirty-seven years.
(2) Notwithstanding any other another provision of this section, for a qualified recycling facility, the assessment ratio may not be less than must be at least three percent.
(3) Any machinery and equipment foundations, port facilities, or railroad track systems used, or to be used, for a qualified recycling facility is considered tangible personal property.
(4) Notwithstanding subsections (F) and (I) of this section, the total costs of all investments made for a qualified recycling facility are eligible for fee payments as provided in this section.
(5) For purposes of any fees that may be due on undeveloped property for which title has been transferred to the county by or for the owner or operator of a qualified recycling facility, the assessment ratio is three percent.
(6) Notwithstanding subsection (D)(2)(b) of this section, in the case of a qualified recycling facility, net present value calculations performed under pursuant to the that subsection must use a discount rate equivalent to the yield in effect for new or existing United States Treasury bonds of similar maturity as published on any day selected by the investor during the year in which assets are placed into service or in which the inducement agreement is executed.
(7) As used in this subsection, 'qualified recycling facility' and 'investment' have the meaning provided in Section 12-7-1275(A).
(BB)(W)(1) Notwithstanding any other another provision of this section, the fair market value of property of a pharmaceutical company investing more than four hundred million dollars in one county in this State is the lower of the fair market value estimate (1) as determined determines:
(a) pursuant to subsection (D)(2)(a)(i),; or
(2)(b) as determined by the county in which the investment is located as follows:
(a) (i) for real property, using the original income tax basis for South Carolina income tax purposes without regard to depreciation, less any such basis amount attributable to cost overruns, including capitalized interest overruns; and
(b)(ii) for personal property, using the original income tax basis for South Carolina income tax purposes, less any such basis amount attributable to cost overruns, including capitalized interest overruns, and less depreciation allowable for property tax purposes, except that the investor is not entitled to any extraordinary obsolescence.
(2) This subsection applies only to property placed in service before January 1, 2000."
F. Section 12-44-50(A)(1)(b)(i) of the 1976 Code is amended to read:
"(i) by the county, which must not be lower than the a cumulative property tax millage rate legally levied by or on behalf of all millage levying entities within which the project is to be located, which is the cumulative rate that is applicable during the period beginning on the thirtieth day of June preceding the calendar year in which the fee agreement is executed and ending on the date the initial lease agreement is executed; or"
G. Notwithstanding the provisions of Section 4-12-30(H)(2), Section 4-29-67(H)(2), and Section 12-44-40(L)(2), all of the 1976 Code, the parties may agree to change the millage rate under an existing inducement agreement or millage rate agreement for an investment that exceeds two hundred million dollars to a cumulative property tax millage rate legally levied by or on behalf of all taxing entities within which the subject property is to be located that is applicable during the period beginning on the thirtieth day of June preceding the calendar year in which the millage rate agreement is executed and ending on the date the initial lease agreement is executed. A change in millage rates pursuant to this section is applicable prospectively only and not retroactively.
SECTION 52. Section 12-6-3530(B) and (C) of the 1976 Code, as added by Act 314 of 2000, is amended to read:
"(B) The total amount of credits allowed pursuant to this section may not exceed in the aggregate five million dollars for all taxpayers and all taxable calendar years and one million dollars for all taxpayers in one taxable calendar year.
(C) A single community development corporation or community development financial institution may not receive more than twenty-five percent of the total tax credits authorized pursuant to this section in any one taxable calendar year."
SECTION 53. Article 7, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-1035. (A) Beer brewed on a permitted premises pursuant to Article 17, Chapter 4 of Title 61, must be taxed based on the number of gallons of beer produced on the permitted premises and must be taxed at the same rate of taxation for beer provided in Section 12-21-1020. The permittee shall maintain adequate records as determined by the department to ensure the collection of this tax.
(B) The taxes imposed by the provisions of this section, except as otherwise provided, are due and payable in monthly installments on or before the twentieth day of the month following the month in which the tax accrues.
(C) On or before the twentieth day of each month, a person on whom the taxes in this section are imposed shall file with the department, on a form designed by it, a true and correct statement showing the total gallons produced and any other information the department may require.
(D) At the time of making a monthly report, the person shall compute the taxes due and pay to the department the amount of taxes shown to be due. A return is considered to be timely filed if the return is mailed and has a postmark dated on or before the date the return is required by law to be filed."
SECTION 54. Section 61-4-1730 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-4-1730. Beer brewed on a permitted premises under pursuant to this article must be taxed as provided in Article 7 of Chapter 21 of Title 12 Section 12-21-1035. The permittee must shall maintain adequate records as determined by the department to ensure the collection of this tax."
SECTION 55. Section 61-4-520(8) of the 1976 Code, as added by Act 445 of 1996, is amended to read:
"(8) Notice of application has appeared at least once a week for three consecutive weeks in a newspaper most likely to give notice to interested citizens of the county, city, or community in which the applicant proposes to engage in business. The department must shall determine which newspapers meet the requirements of this section based on available circulation figures. However, if a newspaper is published in the county and historically has been the newspaper where the advertisements are published, the advertisements published in that newspaper meet the requirements of this section. The notice must:
(a) be in the legal notices section of the newspaper or an equivalent section if the newspaper has no legal notices section;
(b) be in large type, covering a space of one column wide and at least two inches deep; and
(c) state the type license applied for and the exact location of the proposed business.
An applicant for a beer or wine permit and an alcoholic liquor license may use the same advertisement for both if the advertisement is approved by the department."
SECTION 56. Section 61-6-1820(4) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(4) Notice of application has appeared at least once a week for three consecutive weeks in a newspaper most likely to give notice to interested citizens of the county, municipality, or community in which the applicant proposes to engage in business. The department must shall determine which newspapers meet the requirements of this section based on available circulation figures. However, if a newspaper is published in the county and historically has been the newspaper where the advertisements are published, the advertisements published in that newspaper meet the requirements of this section. The notice must:
(a) be in the legal notices section of the newspaper or an equivalent section if the newspaper has no legal notices section;
(b) be in large type, covering a space of one column wide and at least two inches deep; and
(c) state the type license applied for and the exact location of the proposed business.
An applicant for a beer or wine permit and an alcoholic liquor license may use the same advertisement for both if it is approved by the department."
SECTION 57. A. Section 12-43-225 of the 1976 Code, as added by Act 346 of 2000, is amended to read:
"Section 12-43-225. (A) For subdivision lots in a conditional or final plat filed recorded on or after 2000 January 1, 2001, and notwithstanding the provisions of Section 12-43-224 , a subdivision lot discount is allowed in the valuation of the platted lots only as provided in subsection (B) of this section, and this discounted value applies for five property tax years or until the lot is sold, or a certificate of occupancy is issued for the improvement on the lot, or the improvement is occupied, whichever of them elapses or occurs first. When the discount allowed by this section no longer applies, the lots must be individually valued as provided by law.
(B) To be eligible for a subdivision lot discount, the final or conditional recorded plat filed must contain at least ten building lots. The owner must shall apply for the discount by means of a written application to the assessor on or before May first of the year for which the discount is claimed. The value of each platted building lot is calculated:
(1) by dividing the total number of platted building lots into the value of the entire parcel as undeveloped real property; and
(2) as provided in Section 12-43-224 and the difference between the two calculations determined.
The value of a lot as determined under Section 12-43-224 is reduced as follows:
For lots in plats filed recorded in 2001, the value is reduced by thirty percent of the difference.
For lots in plats filed recorded in 2002, the value is reduced by sixty percent.
For lots in plats filed recorded after 2002, the value is reduced by one hundred percent of the difference.
(C) If a lot allowed the discount provided by this section is sold to the holder of a residential homebuilder's license or general contractor's license, the discount continues through the first tax year which ends twelve months from the date of sale if the purchaser files a written application for the discount with the county assessor by March May first of the year for which the applicant is claiming the discount."
SECTION 58. The last paragraph of Section 4-29-67(C)(2) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"For purposes of those businesses qualifying under Section 4-29-67(D)(4), the five-year period referred to in this subsection is eight years and the seven-year period is ten years. However, for those businesses which, after qualifying under Section 4-29-67(D)(4), have more than five hundred million dollars in capital invested in this State and employ more than one thousand people in this State, the five-year period referred to in this subsection is ten years, and the ten-year extended period referred to in the previous sentence is fifteen years."
SECTION 59. Section 4-29-67(C)(3) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"(3) The annual fee provided by subsection (D)(2) is available for no more than twenty years. For projects which are completed and placed in service during more than one year, each year's investment may be subject to the fee in subsection (D)(2) for twenty years to a maximum total of twenty-seven years for the fee for a single project which has been granted an extension. For those businesses qualifying under subsection (D)(4), the annual fee is available for no more than thirty years and for those projects placed in service in more than one year the annual fee is available for a maximum of thirty-seven years forty years or, for those businesses qualifying for the fifteen-year extended period, forty-five years."
SECTION 60. A. Section 12-56-20(4) of the 1976 Code is amended by adding at the end:
"'Delinquent debt' also includes any fine, penalty, cost, fee, assessment, surcharge, service charge, restitution, or other amount imposed by a court or as a direct consequence of a final court order which is received by or payable to the clerk of the appropriate court or treasurer of the entity where the court is located."
B. The 1976 Code is amended by adding:
"Section 14-1-202. (A) The clerk of the appropriate court, or county treasurer or municipal treasurer, as appropriate, is authorized to collect any fine, penalty, cost, fee, assessment, surcharge, service charge, restitution, or other amount imposed by a court or as a direct consequence of a court order.
(B) The clerk of the appropriate court, or county treasurer or municipal treasurer, as appropriate, may compromise any fine, penalty, cost, fee, assessment, surcharge, service charge, restitution, or other amount imposed by a court or as a direct consequence of a court order to the extent necessary to collect these items. If a clerk or treasurer compromises an amount pursuant to this subsection, the proceeds representing the collected amount must be distributed pro rata to the entities that otherwise would have received the original amount."
SECTION 61. A. Section 12-44-80 of the 1976 Code is amended by adding at the end:
"(C) Misallocations of the distribution of the fee payments on the project pursuant to this chapter may be corrected by adjusting later distributions, but these adjustments must be made in the same fiscal year as the misallocations."
B. Section 4-12-30(K) of the 1976 Code is amended by adding at the end:
"(4) Misallocations of the distribution of the fee-in-lieu of taxes on the project pursuant to this chapter may be corrected by adjusting later distributions, but these adjustments must be made in the same fiscal year as the misallocations."
C. Section 4-29-67(L) of the 1976 Code, as last amended by Act 462 of 1996, is further amended by adding at the end:
"(4) Misallocations of the distribution of the fee-in-lieu of taxes on the project pursuant to this chapter may be corrected by adjusting later distributions, but these adjustments must be made in the same fiscal year as the misallocations."
SECTION 62. A. The 1976 Code is amended by adding:
"Section 12-45-35. (A) A county treasurer may appoint an employee in his office to be his deputy. The appointment must be filed with the Comptroller General and the governing body of that county. When the appointment is filed, the deputy may act for and on behalf of the county treasurer when the treasurer is incapacitated by reason of a physical or mental disability or during a temporary absence.
(B) If there is a vacancy in the office of county treasurer by reason of death, resignation, or disqualification, the appointed deputy shall carry out the duties of the office until a successor is appointed or elected or qualified."
B. Section 12-39-40 of the 1976 Code is amended to read:
"Section 12-39-40. (A) In the event of a vacancy by reason of death, resignation or disqualification in the office of county auditor in any county in this State having a chief clerk in the auditor's office, the duties and functions of such office shall be discharged by the chief clerk in the interval between the occurrence of such vacancy and the appointment and qualification of a successor. A county auditor may appoint an employee in his office to be his deputy. The appointment must be filed with the Comptroller General and the governing body of that county. When the appointment is filed, the deputy may act for and on behalf of the county auditor when the auditor is incapacitated by reason of a physical or mental disability or during a temporary absence.
(B) If there is a vacancy in the office of county auditor by reason of death, resignation, or disqualification, the appointed deputy shall carry out the duties of the office until a successor is appointed or elected and qualified."
SECTION 63. Section 12-36-90(2) of the 1976 Code, is amended by adding an appropriately lettered subitem to read:
"( ) interest, fees, or charges however described, imposed on a customer for late payment of a bill for electricity or natural gas, or both, whether or not sales tax is required to be paid on the underlying electricity or natural gas bill."
SECTION 64. Section 4-29-67(C)(3) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"(3) The annual fee provided by subsection (D)(2) is available for no more than twenty years. For projects which are completed and placed in service during more than one year, each year's investment may be subject to the fee in subsection (D)(2) for twenty years to a maximum total of twenty-seven years for the fee for a single project which has been granted an extension. For those businesses qualifying under subsection (D)(4), the annual fee is available for no more than thirty years and for those projects placed in service in more than one year the annual fee is available for a maximum of thirty-seven years forty years or, for those businesses qualifying for the fifteen-year extended period, forty-five years."
SECTION 65. A. Section 4-12-30(D)(4)(a) of the 1976 Code, as last amended by Act 462 of 1996, is amended by adding at the end:
"(iv) in the case of a business including a corporation, its subsidiaries, and its limited liability company members, that (A) builds a gas-fired combined-cycle power facility and invests at least four hundred million dollars and creates at least twenty-five full-time jobs as defined in Section 12-6-3360(M) at that facility and (B) invests an additional five hundred million dollars in this State."
B. Section 4-29-67(D)(4)(a) of the 1976 Code, as last amended by Act 151 of 1997, is further amended by adding at the end:
"(v) in the case of a business including a corporation, its subsidiaries, and its limited liability company members, that (A) builds a gas-fired combined-cycle power facility and invests at least four hundred million dollars and creates at least twenty-five full-time jobs as defined in Section 12-6-3360(M) at that facility and (B) invests an additional five hundred million dollars in this State."
C. Section 12-44-30(8) of the 1976 Code is amended by adding at the end:
"(d) at least four hundred million dollars in the building of a gas-fired combined-cycle power facility and creates at least twenty-five full-time jobs as defined in Section 12-6-3360(M) at that facility and invests an additional five hundred million dollars in this State."
SECTION 66. The last paragraph of Section 4-29-67(C)(2) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"For purposes of those businesses qualifying under Section 4-29-67(D)(4), the five-year period referred to in this subsection is eight years and the seven-year period is ten years. However, for those businesses which, after qualifying under Section 4-29-67(D)(4), have more than five hundred million dollars in capital invested in this State and employ more than one thousand people in this State, the five-year period referred to in this subsection is ten years, and the ten-year extended period referred to in the previous sentence is fifteen years."
SECTION 67. Section 4-29-67(C)(3) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"(3) The annual fee provided by subsection (D)(2) is available for no more than twenty years. For projects which are completed and placed in service during more than one year, each year's investment may be subject to the fee in subsection (D)(2) for twenty years to a maximum total of twenty-seven years for the fee for a single project which has been granted an extension. For those businesses qualifying under subsection (D)(4), the annual fee is available for no more than thirty years and for those projects placed in service in more than one year the annual fee is available for a maximum of thirty-seven years forty years or, for those businesses qualifying for the fifteen-year extended period, forty-five years."
SECTION 68. Section 12-6-3360(B)(5) of the 1976 Code is amended by adding a lettered subitem to read:
"(e) For a job created in a county that is not traversed by an interstate highway, the credit allowed is one tier higher than the credit for which jobs created in the county would otherwise qualify. This subitem does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this item."
SECTION 69. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION 70. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed these sections, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 71. Section 12-21-1080 of the 1976 Code is repealed.
SECTION 72. SECTIONS 4, 10, 13, 14, 15, and 16 of this act take effect July 1, 2001. SECTIONS 22, 23, 24, 25, and 26 take effect on the first day of the second month following approval by the Governor. The remaining SECTIONS of this act take effect upon approval by the Governor, and SECTIONS 1 and 2 apply with respect to sales or deeds made or recorded after this date and SECTION 3 is applicable to taxable years beginning after December 31, 2000; provided, however, the corporate income tax credit taken against the cost of tangible personal property pursuant to Section 12-6-3410(D) of the 1976 Code authorized to be taken by those corporations or companies referred to in Section 12-6-3410(J)(9) of the 1976 Code may be taken for taxable years beginning after December 31, 2002; SECTIONS 5, 6, 7, 8, 9, 11, 12, 17, and 18 apply to taxable years beginning after December 31, 2000; SECTION 34 applies to tax periods beginning after December 31, 1997; and SECTION 46 applies to property tax years beginning after December 31, 1999; and SECTION 51B., F., and the amendment to Section 4-29-67(G) in SECTION 51E. apply to a fee in lieu of property taxes agreement in which an initial lease agreement is executed on or after that date; and SECTION 51G. is repealed effective December 31, 2001. SECTION 63 applies with respect to retail sales occurring on or after that date and sales before that date for all periods remaining open for the assessment of taxes by agreement or by operation of law. However, a refund is not due a taxpayer or sales and use tax paid on interest, fees, or charges, however described, imposed on a customer for late payment of a bill for electricity or natural gas, or both, before the effective date of this act. Notwithstanding the general effective date provided in this act, subsections A., B., and C. of SECTION 50 take effect July 1, 2001. Subsection D. of SECTION 50 takes effect August 15, 2001.
This web page was last updated on Thursday, June 25, 2009 at 2:28 P.M.