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S. 1188

STATUS INFORMATION

General Bill
Sponsors: Senator Glover
Document Path: l:\council\bills\ggs\22617htc04.doc

Introduced in the Senate on April 21, 2004
Currently residing in the Senate Committee on Finance

Summary: Corporate income tax moratorium

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   4/21/2004  Senate  Introduced and read first time SJ-37
   4/21/2004  Senate  Referred to Committee on Finance SJ-37

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

4/21/2004

TO AMEND SECTION 12-6-3365, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CORPORATE INCOME TAX AND INSURANCE PREMIUM TAX MORATORIUM APPLICABLE TO TAXPAYERS CREATING AND MAINTAINING ONE HUNDRED FULL-TIME NEW JOBS AT A FACILITY IN A COUNTY THAT MEETS THE UNEMPLOYMENT RATE OR PER CAPITA INCOME ELIGIBILITY REQUIREMENTS FOR THIS MORATORIUM, SO AS TO EXTEND THE PER CAPITA INCOME ELIGIBILITY TO THOSE NINE COUNTIES WITH THE LOWEST PER CAPITA INCOME AND TO EXTEND THIS MORATORIUM FOR FIVE YEARS THROUGH JUNE 30, 2010.

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

SECTION    1.    Section 12-6-3365 of the 1976 Code, as last amended by Act 172 of 2004, is further amended to read:

"Section 12-6-3365.    (A)    A taxpayer creating and maintaining at least one hundred full-time new jobs, as defined in Section 12-6-3360(M), at a facility of a type identified in Section 12-6-3360(M) may petition, utilizing the procedure in Section 12-6-2320(B), for a moratorium on state corporate income or insurance premium taxes imposed pursuant to Section 12-6-530 for the ten taxable years beginning the first full taxable year after the taxpayer qualifies and ending either ten years from that year or the year when the taxpayer's number of full-time new jobs falls below one hundred, whichever is earlier.

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

(1)    with an average annual unemployment rate of at least twice the state average during the last twenty-four months, based on the unemployment rate data on November first or that is one of the three nine lowest per capita income counties, based on the average of the three most recent completed calendar years of per capita income data that are available on November first; and

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

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

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

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

(F)    The taxpayer must create the one hundred full-time new jobs within five years from the date it creates the first full-time new job, except that the taxpayer must have hired its first full-time new employee by July 1, 2005 2010, to be eligible for either the ten-year or fifteen-year moratorium.

(G)    The department shall designate the moratorium counties by December thirty-first each year using data from the South Carolina Employment Security Commission and the United States Department of Commerce. The designations are effective for taxable years that begin in the following calendar year."

SECTION    2.    Notwithstanding the provisions of Section 3, Act 277 of 2000, Section 12-6-3365 of the 1976 Code is repealed July 1, 2010, rather than July 1, 2005, as previously provided. This repeal does not affect any moratorium in effect on that date.

SECTION    3.    This act takes effect upon approval by the Governor and with respect to the amendment to Section 12-6-3365(B)(1) of the 1976 Code contained in this act, applies for new full-time jobs created on or after that date.

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