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TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO CLARIFY THAT THE EXEMPTIONS ALLOWED FOR OTHERWISE QUALIFYING DURABLE MEDICAL EQUIPMENT AND MEDICAL SUPPLIES MUST BE SOLD PURSUANT TO WRITTEN PRESCRIPTION OR CERTIFICATE OF MEDICAL NECESSITY; AND TO AMEND ACT 99 OF 2007, RELATING TO SALES TAX EXEMPTIONS, SO AS TO REVISE THE SCHEDULE OF THE PHASE-IN OF THE SALES TAX FOR DURABLE MEDICAL EQUIPMENT AND RELATED SUPPLIES AND TO ELIMINATE THE REVENUE GROWTH REQUIREMENT FOR THE PHASE-IN OF THIS EXEMPTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-2120(74) of the 1976 Code, as added by Act 99 of 2007, is amended to read:
"(74) durable medical equipment and related supplies sold pursuant to written prescription or certificate of medical necessity:
(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."
SECTION 2. Subsections B and C of Section 1 of Act 99 of 2007 are amended to read:
"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 as provided in the following schedule:
Beginning July 1 Applicable Rate
2008 4.5 percent
2009 3 percent
2010 2 percent
2011 1 percent
After June 30, 2012, the provisions of this subsection no longer apply.
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 3. Section 1 of this act takes effect upon approval of this act by the Governor. Section 2 of this act takes effect July 1, 2008.
This web page was last updated on Monday, June 22, 2009 at 2:54 P.M.