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COMMITTEE REPORT
April 18, 2007
H. 3659
S. Printed 4/18/07--H.
Read the first time March 7, 2007.
To whom was referred a Bill (H. 3659) to amend Section 12-33-245, as amended, Code of Laws of South Carolina, 1976, relating to the excise tax on alcoholic liquors for on-premises consumption, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking SECTION 2 and inserting:
/SECTION 2. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
DANIEL T. COOPER for Committee.
REVENUE IMPACT 1/
This bill is expected to reduce general fund alcoholic liquor revenue by an estimated $18,000 in FY2007-08.
Explanation of Amendment (April 10, 2007) - By the Sales and Income Taxes Subcommittee
This amendment would change the effective date of the legislation from "July 1, 2007" to "upon the signature of the Governor".
Explanation of Bill filed March 7, 2007
This bill amends Section 12-33-245 as added by Act 139 of 2005, the liquor-by-the-drink excise tax bill, to update the fiscal year reference dates from fiscal year "2003-04" to fiscal year "2004-05" to ensure that those state agencies, local entities, and counties that received mini bottle tax revenue from the old twenty-five cent tax per mini bottle receive the same amount of revenue from the new five cent excise tax per drink from the new free pour method of dispensing alcohol. Based upon data on the distribution of mini bottle revenue allocated by the South Carolina State Treasurer's Office, changing the fiscal year reference date from FY2003-04 to FY2004-05 would reduce general fund alcoholic liquor revenue by an estimated $18,000 in FY2007-08. This bill would also require that state agencies and local entities that do not receive the same amount of revenue from mini bottle taxes have the difference payable from the general fund within "thirty days after the close of each quarter in a calendar year", instead of within "sixty days after the close of each fiscal year". This provision would accelerate the distribution of the alcohol excise tax revenue to local entities and counties from an annual basis to a quarterly distribution.
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 by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO AMEND SECTION 12-33-245, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXCISE TAX ON ALCOHOLIC LIQUORS FOR ON-PREMISES CONSUMPTION, SO AS TO REQUIRE THAT A STATE AGENCY OR LOCAL ENTITY THAT DOES NOT RECEIVE THE SAME AMOUNT OF REVENUE FROM THE EXCISE TAX AS IT DID FROM THE MINIBOTTLE TAX IN FISCAL YEAR 2004-2005, IT IS TO RECEIVE THE DIFFERENCE FROM THE GENERAL FUND WITHIN THIRTY DAYS AFTER THE CLOSE OF EACH QUARTER IN A CALENDAR YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-33-245(C) of the 1976 Code, as added by Act 139 of 2005, is amended to read:
"(C) Those state agencies and local entities, including counties, which are allocated and receive by law minibottle tax revenues in fiscal year 2003-04 2004-2005 for education, prevention, and other purposes, shall receive at least the same amount of revenues from the new excise tax revenues beginning with the first full fiscal year after sales of liquor by the drink are authorized as they did from minibottle tax revenues during fiscal year 2003-04 2004-2005. If these state agencies and local entities do not, the difference must be made up from the general fund within sixty thirty days after the close of each fiscal quarter in a calendar year."
SECTION 2. This act takes effect July 1, 2007.
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