SALT Report 3218 – On Tuesday, January 14th 2014, State Sen. Marlon Kimpson, (D-Charleston) filed Senate Bill 870 to implement a recommendation by the state’s Tax Realignment Commission establishing a system for online retailers to collect South Carolina state sales tax and remit it to the state Department of Revenue. Kimpson says the state is missing out on millions of dollars each year and Senate Bill 870 would help collect them.
SB 870 will amend the code of laws of South Carolina, 1976, by adding section 12-36-71 so as to provide that a retailer is presumed to be liable for the sales tax or responsible for collecting and remitting the use tax if the retailer enters into an agreement with a resident of this state under which the resident, for consideration, refers potential customers, whether by an internet link or otherwise, to require such retailers to obtain a retail license and remit sales and use tax on all taxable retail sales, and to provide exceptions.
Notwithstanding any other provision of law, a retailer is presumed to be liable for the sales tax or responsible for collecting and remitting the use tax if the retailer enters into an agreement with a resident of this State under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet website or otherwise, to the retailer.
The threshold for enforcement of this rebuttable presumption will be $10,000 in the preceding 12 calendar months.
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