Cindi sent this to me this morning, and I apologize for just getting to the e-mail and passing it on now — I’ve had three candidate interviews today. Anyway, here’s what she sent me:
Since the House adopted an amendment to the Senate cigarette tax bill (a very minor amendment), there was no vote on the bill itself. (As I explained in a recent column, once the House votes to amend the Senate amendment, the bill automatically goes to back to the Senate; so in a sense if you vote for ANY amendment, you are at least voting in support of the bill.) So while it’s extremely doubtful that the House will override a veto, we can’t know or sure. It could be that some of the representatives who voted for a revenue-neutral bill simply PREFER that, but would still support the Senate version if it’s that or nothing.
The closest I see to an indication of willingness to accept the Senate version (and it is a far-from-perfect indication) is the first vote, on a motion to send the bill to committee, which likely would have killed it. I would read voting against that motion (ie, voting YES on the tabling motion, below) as support for the cigarette tax increase:H. 3567–SENATE AMENDMENTS AMENDED AND RETURNED TO THE SENATE
The Senate Amendments to the following Bill were taken up for consideration:H. 3567 <http://www.scstatehouse.net/cgi-bin/web_bh10.exe?bill1=3567&session=117> ( Word <http://www.scstatehouse.net/sess117_2007-2008/bills/3567.doc> version) — Reps. Rice, Gullick, Cotty and Agnew: A BILL TO AMEND SECTION 12-21-620, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION ON CIGARETTES, SO AS TO INCREASE THE AMOUNT OF TAX ON EACH CIGARETTE FROM THREE AND ONE-HALF MILLS TO TWO CENTS; TO ADD SECTION 44-6-157 SO AS TO PROVIDE THAT THE REVENUE GENERATED FROM THE TAXATION ON CIGARETTES MUST BE USED TO EXPAND MEDICAID COVERAGE TO CHILDREN EIGHTEEN YEARS OF AGE AND YOUNGER WHOSE FAMILY INCOME DOES NOT EXCEED TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL; AND TO CREATE THE HEALTH CARE TRUST FUND TO PROVIDE MEDICAID BENEFITS TO INDIVIDUALS WHOSE FAMILY INCOME DOES NOT EXCEED ONE HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL AND WHO ARE UNINSURED AND TO PROVIDE THAT REVENUE IN EXCESS OF THE CHILDREN’S MEDICAID COVERAGE FROM THE CIGARETTE TAX MUST BE CREDITED TO THE HEALTH CARE TRUST FUND; AND TO AMEND SECTION 12-36-910, AS AMENDED, RELATING TO SALES TAXES GENERALLY, SO AS TO PROVIDE THAT AS OF JULY 1, 2009, THE THREE PERCENT SALES TAX IS ELIMINATED ON UNPREPARED FOOD WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE FOR CERTAIN GENERAL FUND TRANSFERS TO THE EDUCATION IMPROVEMENT ACT FUND FOR EACH FISCAL YEAR TO OFFSET EIA REVENUES LOST AS A RESULT OF THE LOSS OF SALES TAX ON THE SALE OF UNPREPARED FOOD, AND TO REDUCE THE SALES TAX ON UNPREPARED FOOD TO TWO PERCENT AS OF JULY 1, 2007, AND ONE PERCENT AS OF JULY 1, 2008.
Rep. SHOOPMAN moved to recommit the Bill to the Committee on Ways and Means.
Rep. OTT moved to table the motion.
Rep. MULVANEY demanded the yeas and nays which were taken, resulting as follows:
Yeas 84; Nays 31
Those who voted in the affirmative are:
Alexander Allen Anderson
Anthony Bales Ballentine
Bannister Bingham Bowen
Brady Branham Brantley
Breeland G. Brown R. Brown
Clyburn Cobb-Hunter Coleman
Cotty Crawford Dantzler
Davenport Delleney Erickson
Frye Funderburk Govan
Gullick Hagood Harrison
Hart Harvin Haskins
Hayes Herbkersman Hiott
Hodges Hosey Howard
Huggins Hutson Jefferson
Jennings Kelly Kennedy
Knight Limehouse Lucas
Mack Mahaffey McLeod
Miller Mitchell Moss
J. H. Neal J. M. Neal Neilson
Ott Owens Parks
Phillips Pinson E. H. Pitts
Rice Rutherford Scarborough
Scott Sellers Simrill
Skelton F. N. Smith G. M. Smith
J. E. Smith J. R. Smith Spires
Stavrinakis Stewart Taylor
Toole Vick Weeks
Whitmire Williams YoungTotal–84
Those who voted in the negative are:
Barfield Battle Bedingfield
Cato Chalk Clemmons
Cooper Duncan Edge
Gambrell Haley Hardwick
Harrell Kirsh Leach
Littlejohn Loftis Lowe
Mulvaney Perry M. A. Pitts
Sandifer Shoopman D. C. Smith
G. R. Smith Talley Thompson
Umphlett Walker White
Witherspoon
Total–31
So, the motion to recommit the Bill was tabled.——————————————————————————————————-
I believe this is what many considered the critical amendment — the one by Harrell and Cooper to use all the proceeds for tax breaks for health insurance. It was defeated 60-58, with a yes vote being to stick with the Senate version (or, one could argue, to hold out for SOME OTHER proposal yet to be voted on at the time).
Reps. HARRELL and COOPER proposed the following Amendment No. 4A (Doc Name COUNCIL\BBM\10648HTC08), which was tabled:
Amend the bill, as and if amended, by striking the remainder of the bill after line 12 beginning on page 2 and inserting:
/ (B) For all purposes of reporting, payment, collection, and enforcement, the surtax imposed by this section is deemed to be imposed pursuant to Section 12-21-620.(C) For purposes of this section and Section 12-21-620(2), ‘cigarette’ means:
(1) any roll for smoking containing tobacco wrapped in paper or in any substance other than a tobacco leaf; or
(2) any roll for smoking containing tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1). However, such a roll is not considered to be a cigarette for purposes of this section and Section 12-21-620(2) if the roll is not treated like a cigarette for federal excise tax purposes under the applicable federal law in effect on July 1, 2008.
(D) Notwithstanding another provision of law providing for the crediting of the revenues of license or other taxes, the revenue of the surtax imposed pursuant to this section must be credited to the general fund of the State and used to replace income and sales tax revenues not collected in a fiscal year in the following amounts:
(1) the amount of state sales tax revenue as estimated by the Board of Economic Advisors not collected because of:
(a) the sales tax exemption allowed pursuant to Section 12-36-2120(76); and
(b) the exemption allowed pursuant to Section 12-36-2120(74) reduced by the amount of sales tax revenue not collected pursuant to that exemption as it applied in fiscal year 2007-2008.
(2) five million dollars for the smoking cessation income tax credit pursuant to Section 12-6-3671 with any unused revenue added to the amounts available pursuant to item (4) of this subsection;
(3) four million dollars for cancer screening with any unused revenue added to the amounts available pursuant to item (4) of this subsection;
(4) the balance of the revenue, as estimated by the Board of Economic Advisors, for the small business health insurance income tax credit allowed pursuant to Section 12-6-3673.
(E) Revenue of the tax imposed pursuant to subsection (A) replacing sales tax revenue must be credited as sales tax revenues are credited by law."
SECTION 2. Section 1 of Act 99 of 2007 is amended by deleting subsections B and C which 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.
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 12-36-2120 of the 1976 Code, is amended by adding a new item (76) to read:"(76) the gross proceeds of the sale of legend or prescription drugs or medicines, legend or prescription biologicals, and legend or prescription bioabsorbable implant devices dispensed or administered to a patient or otherwise used in the treatment of a patient in the office of a medical doctor licensed pursuant to Chapter 47 of Title 40 or of a dentist licensed pursuant to Chapter 15 of Title 40, and not otherwise exempted."
SECTION 4. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3671. (A) There is allowed as a refundable credit against the income tax liability of a resident individual the expenses incurred by the taxpayer in a taxable year for participating in a smoking cessation program undertaken by the taxpayer prescribed by and under the supervision of a physician licensed pursuant to Chapter 47 of Title 40, to include physicians fees and costs of FDA approved smoking cessation therapies and other smoking cessation methods approved by the supervising physician. Only a taxpayer who has expenses for a smoking cessation program no portion of which is paid or covered by a third party payer, is eligible for this credit. The Department of Revenue shall prescribe a form on which this credit must be claimed that must be filed with the taxpayer’s South Carolina individual income tax return. The form must require that information and documentation determined necessary by the department for the administration of this credit.(B) The credit allowed pursuant to this section is not included in the calculation of the taxpayer’s income tax liability on the return, but is instead calculated by the Department of Revenue after the close of the filing season and paid to the taxpayer as provided in subsection (C).
(C) Each eligible taxpayer incurring smoking cessation expenses in any year is entitled to a credit for that year in the amount of three hundred dollars or the amount of his expenses, whichever is less. If the amount available to fund this credit as provided by law in any year is not sufficient to give all eligible taxpayers their full credit, then the Department of Revenue shall proportionately reduce these credits accordingly. If the amount available to fund these credits as provided by law in any year exceeds the total amount of the credits claimed by all taxpayers as provided above, then any taxpayer with expenses over three hundred dollars for that year is entitled to an additional credit as determined by the department equal to his excess expenses stated as a percentage of all excess expenses times the available funds.
Section 12-6-3672. (A) There is allowed as a refundable credit against the income tax liability of a resident individual the costs incurred by the taxpayer in a taxable year for cancer screening. Only a taxpayer who has expenses for such a screening no portion of which is paid or covered by a third party payer, is eligible for this credit. The Department of Revenue shall prescribe a form on which this credit must be claimed that must be filed with the taxpayer’s South Carolina individual income tax return. The form must require that information and documentation determined necessary by the department for the administration of this credit.
(B) The credit allowed pursuant to this section is not included in the calculation of the taxpayer’s income tax liability on the return, but is instead calculated by the Department of Revenue after the close of the filing season and paid to the taxpayer as provided in subsection (C).
(C) Each eligible taxpayer incurring cancer screening expenses in any year is entitled to a credit for that year in the amount of three hundred dollars for each screening or the amount of the expenses, whichever is less. If the amount available to fund this credit as provided by law in any year is not sufficient to give all eligible taxpayers their full credit, then the Department of Revenue shall proportionately reduce these credits accordingly. If the amount available to fund these credits as provided by law in any year exceeds the total amount of the credits claimed by all taxpayers as provided above, then any taxpayer with expenses over three hundred dollars for that year is entitled to an additional credit as determined by the department equal to his excess expenses stated as a percentage of all excess expenses times the available funds.
Section 12-6-3673. (A) As used in this section, a ‘qualifying small business taxpayer’ is a taxpayer resident and domiciled in this State with fewer than twenty employees, all of whom are based in this State claiming a federal income deduction for employee health insurance premiums on all employees.
(B) A qualifying small business taxpayer is allowed a refundable state income tax credit as provided in subsection (C) against the tax imposed pursuant to this chapter for health insurance premiums deducted by the taxpayer on the taxpayer’s federal income tax return. The Department of Revenue shall prescribe a form on which this credit must be claimed that must be filed with the taxpayer’s South Carolina individual income tax return. The form must require that information and documentation determined necessary by the department for the administration of this credit.
The credit allowed pursuant to this section is not included in the calculation of the taxpayer’s income tax liability on the return, but is instead calculated by the Department of Revenue after the close of the filing season and paid to the taxpayer as provided in subsection (C).
(C) Each eligible taxpayer deducting health insurance premium expenses in any year is entitled to a credit for that year in the amount of three hundred dollars or the amount of the expenses, whichever is less for each employee covered. If the amount available to fund this credit as provided by law in any year is not sufficient to give all eligible taxpayers their full credit, then the Department of Revenue shall proportionately reduce these credits accordingly. If the amount available to fund these credits as provided by law in any year exceeds the total amount of the credits claimed by all taxpayers as provided above, then any taxpayer with expenses over three hundred dollars for that year is entitled to an additional credit as determined by the department equal to his excess expenses stated as a percentage of all excess expenses times the available funds."
SECTION 5. This act takes effect upon approval by the Governor, and where not otherwise provided, sales tax provisions in this act take effect July 1, 2008, and income tax provisions in this act apply for taxable years beginning after 2007. /
Renumber sections to conform.
Amend title to conform.Rep. COOPER explained the amendment.
Rep. SCOTT moved to table the amendment.
Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:
Yeas 60; Nays 58
Those who voted in the affirmative are:
Alexander Allen Anderson
Anthony Bales Battle
Bowen Bowers Branham
Brantley Breeland G. Brown
R. Brown Clyburn Cobb-Hunter
Coleman Cotty Dantzler
Davenport Funderburk Govan
Gullick Haley Hart
Harvin Hayes Hodges
Hosey Howard Jefferson
Jennings Kennedy Knight
Mack Mahaffey McLeod
Miller Mitchell Moss
J. H. Neal J. M. Neal Neilson
Ott Owens Parks
Phillips Pinson Rice
Rutherford Sandifer Scott
Sellers D. C. Smith F. N. Smith
J. E. Smith Stavrinakis Vick
Walker Weeks WilliamsTotal–60
Those who voted in the negative are:
Ballentine Bannister Barfield
Bedingfield Bingham Brady
Cato Chalk Clemmons
Cooper Crawford Daning
Delleney Duncan Edge
Erickson Frye Gambrell
Hagood Hardwick Harrell
Harrison Haskins Herbkersman
Hiott Huggins Hutson
Kelly Kirsh Leach
Limehouse Littlejohn Loftis
Lowe Lucas Merrill
Mulvaney Perry E. H. Pitts
M. A. Pitts Scarborough Shoopman
Simrill Skelton G. R. Smith
J. R. Smith Spires Stewart
Talley Taylor Thompson
Toole Umphlett Viers
White Whitmire Witherspoon
Young
Total–58————————————————————
Here’s the vote on the amendment to use all the proceeds for income tax reduction:
Rep. MERRILL proposed the following Amendment No. 7A (Doc Name COUNCIL\BBM\10655HTC08), which was tabled:
Rep. SCOTT moved to table the amendment.Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:
Yeas 68; Nays 52Those who voted in the affirmative are:
Alexander Allen Anderson
Anthony Bales Battle
Bowers Brady Branham
Brantley Breeland G. Brown
R. Brown Clyburn Cobb-Hunter
Coleman Cotty Dantzler
Davenport Funderburk Govan
Gullick Haley Harrison
Hart Harvin Hayes
Hiott Hodges Hosey
Howard Jefferson Jennings
Kennedy Knight Limehouse
Littlejohn Mack Mahaffey
McLeod Miller Mitchell
Moss J. H. Neal J. M. Neal
Neilson Ott Owens
Parks Perry Phillips
Pinson Rice Rutherford
Scott Sellers Skelton
D. C. Smith F.N. Smith J. E. Smith
J. R. Smith Stavrinakis Vick
Walker Weeks Whipper
Whitmire Williams
Total–68Those who voted in the negative are:
Ballentine Bannister Barfield
Bedingfield Bingham Bowen
Cato Chalk Clemmons
Cooper Crawford Daning
Delleney Duncan Edge
Erickson Frye Gambrell
Hagood Hardwick Harrell
Haskins Herbkersman Huggins
Hutson Kelly Kirsh
Leach Loftis Lowe
Lucas Merrill Mulvaney
E. H. Pitts M. A. Pitts Sandifer
Scarborough Shoopman Simrill
G. M. Smith G. R. Smith Spires
Stewart Talley Taylor
Thompson Toole Umphlett
Viers White Witherspoon
YoungTotal–52
So, the amendment was tabled.
Related Posts
Since the legislature is only allocating 3% of the tobacco taxes now to medical services, who is gullible enough to believe they will spend these new taxes on medical care?
“who is gullible enough to believe they will spend these new taxes on medical care?”
I wish I could say thought they would do so after the first year or two.
Who cares? As we have said from the beginning, this is one tax that it doesn’t matter what it’s spent on. You could burn the money, and still accomplish the main goal — reducing teen smoking, meaning fewer people being addicted by adulthood. Raising cigarette taxes has been proved time and again to reduce teen smoking. And most people either take up smoking then, or don’t take it up at all.
That’s why we have favored raising this tax in a vacuum, whereas usually we say state taxes should be neither raised (fat chance) nor lowered (lawmaker’s favorite hobby) outside of comprehensive tax reform.
When it’s a matter of the revenue produced, we believe we shouldn’t further distort our tax system. The whole shebang needs reform.
But this one’s not about the revenue. It’s about raising the cost of cigarettes. Always has been. Folks who care primarily about how the money is spent are missing the main point.
No, those who think a government should adopt a tax simply to alter behavior and that it would be acceptable to “burn the money” generated are “missing the point.”
Maybe we should use the money to prop up the Fourth Estate. It’s going bankrupt.
Let’s call Brad out.
If this tax isn’t about the money, why don’t we use this new tax revenue to abolish some other tax, like the property tax on automobiles?
News flash, Brad: it has been illegal for teenagers to buy cigarettes for a long time.
Brad, Thank you for publishing this list of traitors. I’m going to print it and make copies so that all my friends who smoke can take it with them to the polls.
Raising the price of cigarettes is the best thing we can do to keep our kids from ever starting to smoke and help smokers to quit.
The House and Senate have shown great leadership. I hope the Governor will rise to the occasion and put South Carolina first, and let this bill become law.
No Collins, The best thing we could do is to make cigarettes illegal and treat them like a drug. We could also stop being hypocrites which children pick up on. If you don’t want your children to do drugs them stop doing them yourself. Taking just one drink in the presence of a child turns you into a hypocrite.
Instead of a piece meal distruction of the tobacco industry, why not set a date when they must go out of business. Then you would have the law on your side. But, using the tobacco industry as a source of blood money is sick and pathetic. If you want people to quit smoking then outlaw the cigarettes instead of raping the victims go after the source. But, alas the nonsmokers are too cowardly to take on anything except mob rule.
Well, Governor Sanford did the right thing and vetoed this odious tax.
The House upheld the veto.
Fascism is defeated, but will be back tomorrow.
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