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

1 South Carolina General Assembly 2 116th Session, 2005-2006 3 4 H. 3153 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Reps. Harrell, Wilkins, Littlejohn, Young, Kirsh, Bailey, Battle, Rice, Hinson and Sandifer 10 Document Path: l:\council\bills\bbm\10460mm05.doc 11 12 Introduced in the House on January 11, 2005 13 Currently residing in the House Committee on Ways and Means 14 15 Summary: Distribution facility defined 16 17 18 HISTORY OF LEGISLATIVE ACTIONS 19 20 Date Body Action Description with journal page number 21 12/15/2004 House Prefiled 22 12/15/2004 House Referred to Committee on Ways and Means 23 1/11/2005 House Introduced and read first time HJ-103 24 1/11/2005 House Referred to Committee on Ways and Means HJ-103 25 26 27 VERSIONS OF THIS BILL 28 29 12/15/2004 30 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 12 1976, BY ADDING SECTION 12-6-60 SO AS TO PROVIDE 13 FOR DETERMINATION OF A NEXUS WITH THIS STATE 14 FOR PURPOSES OF INCOME TAX AND CORPORATE 15 LICENSE FEE IN CONNECTION WITH A DISTRIBUTION 16 FACILITY AND TO DEFINE “DISTRIBUTION FACILITY”; 17 AND BY ADDING SECTION 12-36-2690 SO AS TO PROVIDE 18 FOR DETERMINATION OF A NEXUS WITH THIS STATE 19 FOR SALES AND USE TAX PURPOSES IN CONNECTION 20 WITH A DISTRIBUTION FACILITY AND TO DEFINE 21 “DISTRIBUTION FACILITY”. 22 23 Be it enacted by the General Assembly of the State of South 24 Carolina: 25 26 SECTION 1. A. Chapter 6 of Title 12 of the 1976 Code is 27 amended by adding: 28 29 “Section 12-6-60. (A) Notwithstanding another provision of 30 this chapter, whether or not a person has nexus with South 31 Carolina for income tax and corporate license fee purposes, is 32 determined without regard to whether the person: 33 (1) owns or utilizes a distribution facility within South 34 Carolina; 35 (2) owns or leases property at a distribution facility within 36 South Carolina that is used at, or distributed from, that facility; or 37 (3) sells property shipped or distributed from a distribution 38 facility within South Carolina. 39 (B) The distribution facility is not considered to be a fixed 40 place of business in South Carolina for the purposes of nexus. 41 (C) For purposes of this section, a distribution facility is 42 defined in Section 12-6-3360.”

1 [3153] 1 1 2 B. Chapter 36 of Title 12 of the 1976 Code is amended by 3 adding: 4 5 “Section 12-36-2690. (A). Notwithstanding another provision of 6 this chapter, owning or utilizing a distribution facility within South 7 Carolina is not considered in determining whether the person has a 8 physical presence in South Carolina sufficient to establish nexus 9 with South Carolina for sales and use tax purposes. 10 (B) For purposes of this section, a distribution facility is 11 defined in Section 12-6-3360.” 12 13 SECTION 2. This act takes effect upon approval by the Governor 14 and applies to taxable years beginning January 1, 2006. 15 ----XX---- 16

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