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Indicates Matter Stricken
Indicates New Matter
CONFERENCE COMMITTEE REPORT ADOPTED -- NOT PRINTED
June 7, 2007
S. 310
S. Printed 5/30/07--S. [SEC 5/31/07 2:04 PM]
Read the first time January 23, 2007.
TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT THE GROSS PROCEEDS OF SALES OR SALES PRICE OF DURABLE MEDICAL EQUIPMENT AND RELATED MEDICAL SUPPLIES ELIGIBLE FOR MEDICARE OR MEDICAID REIMBURSEMENT AND WHICH ARE SOLD BY WRITTEN PRESCRIPTION OR CERTIFICATE OF MEDICAL NECESSITY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) durable medical equipment and related supplies:
(a) as defined under federal and state Medicaid and Medicare laws;
(b) which is paid directly by funds of this State or the United States under the Medicaid or Medicare programs, where state or federal law or regulation authorizing the payment prohibits the payment of the sale or use tax; and
(c) sold by a provider who holds a South Carolina retail sales license and whose principal place of business is located in this State."
B. Notwithstanding the sales and use rates imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales of items described in subsection A of this section is five and one-half percent for such sales from July 1, 2007.
C. Beginning with the February 15, 2008, forecast by the Board of Economic Advisors of annual general fund revenue growth for the upcoming fiscal year, and annually thereafter, if the forecast of that growth equals at least five percent of the most recent estimate by the board of general fund revenues for the current fiscal year, then the applicable state sales and use tax rate imposed on items described in subsection A of this section is reduced, effective the following July first, by one and one-half percent in the first year and by one percent every year thereafter. That reduced rate applies until a subsequent reduction takes effect. If the February fifteenth forecast meets the requirement for a rate reduction, the board promptly shall certify this result in writing to the Department of Revenue. On the July first that the rate attains zero, the provisions of subsections B and C of this section no longer apply.
SECTION 2. Section 12-36-2120(28) of the 1976 Code is amended by adding a new subitem appropriately lettered to read:
"( ) Prescription drugs dispensed to Medicare Part A patients residing in a nursing home are not considered sales to the nursing home and are not subject to the sales tax."
SECTION 3. This act takes effect July 1, 2007.
/s/Harvey S. Peeler, Jr. /s/W. Brian White
/s/Nikki G. Setzler /s/Herb Kirsh
/s/William H. O'Dell /s/Kenneth A. Bingham
On Part of the Senate. On Part of the House.
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