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COMMITTEE REPORT
February 12, 2002
S. 852
S. Printed 2/12/02--S.
Read the first time January 9, 2002.
To whom was referred a Bill (S. 852) to amend Section 12-44-30, as amended, Code of Laws of South Carolina, 1976, relating to definitions for purposes of the Fee In Lieu of Tax Simplification Act, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, SR. for Committee.
REVENUE IMPACT 1/
This bill is not expected to have an impact on general fund revenue in FY2002-03.
Explanation
This bill amends Section 12-44-30(13) of the "Fee in Lieu of Tax Simplification Act" to extend the investment time period for an entity to complete a qualified capital project that meets the minimum investment requirement from two years to five years in order to retain the fee-in-lieu of property taxes arrangement. This arrangement is subject to the approval by the respective county council. The minimum investment level for a qualified project must be at least five million dollars. This bill also amends Section 12-44-90 to allow the Department of Revenue to permit a taxpayer that is paying a fee-in-lieu of taxes, to grant an extension of up to sixty days from the day the tax return is due, to file a tax return. No extension may be granted to a taxpayer that has already been granted an extension from a previous filing period. Because these provisions only affect local property taxes, this bill is not expected to have an impact on general fund revenue in FY2002-03.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND SECTION 12-44-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE FEE IN LIEU OF TAX SIMPLIFICATION ACT, SO AS TO INCREASE THE EXTENSION ALLOWED IN THE INVESTMENT PERIOD FROM TWO TO FIVE YEARS; AND TO AMEND SECTION 12-44-90, RELATING TO THE FILING REQUIREMENTS UNDER THE FEE IN LIEU OF TAX SIMPLIFICATION ACT, SO AS TO ALLOW THE DEPARTMENT OF REVENUE TO GRANT A MAXIMUM SIXTY-DAY EXTENSION FOR FILING RETURNS AND TO PROVIDE THE REQUIREMENTS TO OBTAIN THE EXTENSION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-44-30(13) of the 1976 Code is amended to read:
"(13) 'Investment period' means the period beginning sixty days before the county takes action or identifies the project under Section 12-44-40(C), and ending five years after the commencement date; except that for a project with an enhanced investment as described above, the period ends eight years after the commencement date. The minimum investment must be completed within five years of the commencement date. For an enhanced investment, the enhanced investment must be completed within eight years of the commencement date. If the sponsor does not anticipate completing the project within this period, the sponsor may apply to the county before the end of the period for an extension of time to complete the project. If the county agrees to an extension, it must do so in writing and furnish a copy of the extension to the Department of Revenue within thirty days of the date the extension was granted. The extension may not exceed two five years in which to complete the project. An extension is not allowed for the time period in which the sponsor must meet the minimum investment requirement."
SECTION 2. Section 12-44-90 of the 1976 Code is amended by adding at the end:
"(H) The department, for good cause, may allow additional time for filing of returns required under this chapter. The request for an extension may be granted only if the request is filed with the department on or before the day the return is due. However, the extension must not exceed sixty days from the date the return is due. The department shall develop applicable forms and procedures for handling and processing extension requests. An extension may not be granted to a taxpayer who has been granted an extension for a previous period and has not fulfilled the requirements of the previous period."
SECTION 3. This act takes effect upon approval by the Governor.
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