2005-2006 Bill 3153: Distribution Facility Defined - South Carolina Legislature Online

South Carolina General Assembly

116th Session, 2005-2006

H. 3153

STATUS INFORMATION

General Bill

Sponsors: Reps. Harrell, Wilkins, Littlejohn, Young, Kirsh, Bailey, Battle, Rice, Hinson and Sandifer

Document Path: l:\council\bills\bbm\10460mm05.doc

Introduced in the House on January 11, 2005

Currently residing in the House Committee on Ways and Means

Summary: Distribution facility defined

HISTORY OF LEGISLATIVE ACTIONS

DateBodyAction Description with journal page number

12/15/2004HousePrefiled

12/15/2004HouseReferred to Committee on Ways and Means

1/11/2005HouseIntroduced and read first time HJ103

1/11/2005HouseReferred to Committee on Ways and MeansHJ103

VERSIONS OF THIS BILL

12/15/2004

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12660 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 12362690 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:

SECTION1.A.Chapter 6 of Title 12 of the 1976 Code is amended by adding:

“Section 12660.(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 1263360.”

B.Chapter 36 of Title 12 of the 1976 Code is amended by adding:

“Section 12362690.(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 1263360.”

SECTION2.This act takes effect upon approval by the Governor and applies to taxable years beginning January 1, 2006.

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