summary
Introduced
05/13/2021
05/13/2021
In Committee
05/13/2021
05/13/2021
Crossed Over
Passed
Dead
05/12/2022
05/12/2022
Introduced Session
124th General Assembly
Bill Summary
Amend Sections 12-36-60, 12-36-70, As Amended 12-36-90, As Amended 12-36-110, And 12-36-130, As Amended, Code Of Laws Of South Carolina, 1976, All Relating To Definitions For Purposes Of The Sales Tax, So As To Include The Sales Of Services; By Adding Section 12-36-160 So As To Define "services"; To Amend Section 12-36-910, Relating To The Five Percent State Sales Tax Rate, So As To Reduce The Sales Tax Rate To Three Percent; To Amend Section 12-36-920, Relating To The State Accommodations Tax, So As To Make A Conforming Change By Reducing The Rate; To Amend Section 12-36-940, Relating To Amounts That May Be Added To Sales Prices To Account For Tax, So As Authorize The Department To Make Adjustments; To Repeal Article 11 Of Chapter 36, Title 12, Relating To The Additional One Percent Sales And Use Tax; To Amend Sections 12-36-1310 And 12-36-1320, Both Relating To The Use Tax, So As To Make A Conforming Change By Reducing The Rate; To Amend Section 12-36-1710, Relating To The Casual Excise Tax, So As To Make A Conforming Change By Reducing The Rate; To Amend Section 12-36-2120, Relating To Sales Tax Exemptions, So As To Remove The Exemption On Certain Items; To Amend Section 12-36-2530, Relating To Taxes On Items Delivered Out Of State, So As To Make A Conforming Change; To Amend Sections 12-36-2620, 12-36-2630, And 12-36-2640, All Relating To The Crediting Of Certain Taxes, So As To Credit Such Taxes In The Same Proportion As They Were Credited Before The Rate Reduction; To Repeal Section 12-36-2646 Relating To The Tax Exclusion For Individuals At Least Eighty-five Years Of Age; By Adding Section 11-11-270 So As To Create The "tax Reform Reserve Fund" And To Specify Its Purpose; And By Adding Article 11 To Chapter 10, Title 4 So As To Proportionally Reduce Local Sales And Use Taxes In The Same Manner As The State Sales And Use Tax.
AI Summary
This bill makes the following key changes:
This bill expands the definition of "tangible personal property" to include the sale of services. It reduces the state sales tax rate from 5% to 3%, and the state accommodations tax rate from 7% to 5%. It authorizes the Department of Revenue to adjust the amounts that may be added to sales prices to account for the reduced tax rate. It repeals the additional 1% sales and use tax. It makes conforming changes to reduce the use tax rate and the casual excise tax rate from 5% to 3%. It removes certain sales tax exemptions, including for newspapers, religious publications, farm products, and other items. It creates a "Tax Reform Reserve Fund" to cover any loss of sales tax revenue from the rate reduction and potentially provide a future refundable individual income tax credit. It also requires proportional reductions in local sales and use tax rates.
The changes are phased in over several years, with the taxation of services starting at 1% in 2023 and increasing to 3% in 2024, the exemption reductions being implemented gradually, and the state sales tax rate decreasing by 1% each year from 2023 to 2025. The local tax rate reductions are also phased in over this time period.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Referred to Committee on Finance (on 05/13/2021)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.scstatehouse.gov/billsearch.php?billnumbers=0823&session=124&summary=B |
| BillText | https://www.scstatehouse.gov/sess124_2021-2022/prever/823_20210513.htm |
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