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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-60 SO AS TO PROVIDE FOR DETERMINATION OF A NEXUS WITH THIS STATE FOR PURPOSES OF INCOME TAX AND CORPORATE LICENSE FEE IN CONNECTION WITH A DISTRIBUTION FACILITY AND TO DEFINE "DISTRIBUTION FACILITY"; AND BY ADDING SECTION 12-36-2690 SO AS TO PROVIDE FOR DETERMINATION OF A NEXUS WITH THIS STATE FOR SALES AND USE TAX PURPOSES IN CONNECTION WITH A DISTRIBUTION FACILITY AND TO DEFINE "DISTRIBUTION FACILITY".
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. Chapter 6 of Title 12 of the 1976 Code is amended by adding:
"Section 12-6-60. (A) Notwithstanding another provision of this chapter, whether or not a person has nexus with South Carolina for income tax and corporate license fee purposes, is determined without regard to whether the person:
(1) owns or utilizes a distribution facility within South Carolina;
(2) owns or leases property at a distribution facility within South Carolina that is used at, or distributed from, that facility; or
(3) sells property shipped or distributed from a distribution facility within South Carolina.
(B) The distribution facility is not considered to be a fixed place of business in South Carolina for the purposes of nexus.
(C) For purposes of this section, a distribution facility is defined in Section 12-6-3360."
B. Chapter 36 of Title 12 of the 1976 Code is amended by adding:
"Section 12-36-2690. (A). Notwithstanding another provision of this chapter, owning or utilizing a distribution facility within South Carolina is not considered in determining whether the person has a physical presence in South Carolina sufficient to establish nexus with South Carolina for sales and use tax purposes.
(B) For purposes of this section, a distribution facility is defined in Section 12-6-3360."
SECTION 2. This act takes effect upon approval by the Governor and applies to taxable years beginning January 1, 2006.
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