SCACS has been working with the legislature, state agencies, and other tobacco stakeholders to statutorily extend a grace period to allow retailers to sell tobacco products that don’t have tobacco stamps affixed to them. The Department of Revenue granted retailers a 90 day grace period that ends on April 1st, 2019. Without legislation extending the timeline, all tobacco products without tax stamps affixed would then be considered contraband.
Governor McMaster & Staff
Attorney General Alan Wilson and Staff
Hartley Powell, Director of Department of Revenue & staff
House Ways & Means Chairman Murrell Smith (R – Sumter)
Senate Labor & Commerce Chairman Thomas Alexander (R-Oconee)
We have met with Chairman Murrell Smith and Chairman Thomas Alexander regarding this issue and they both agreed to introduce Joint Resolutions extending the date to July 1. Senator Alexander introduced a Joint Resolution (S.398) on 1/22/19. The Senate Finance Subcommittee took the bill up on 1/29/19 where it was amended to extend the grace period to October 1 and it received a favorable report. S.398 received an unanimous favorable report from the full Senate Finance Committee.
Joint Resolutions in both the House and Senate came up on 2/7/19 at the exact same time. Both bodies adopted amendments to give tobacco retailers until October 1st to get tax paid, but unstamped cigarettes sold or otherwise disposed of. The House then passed their amended version on 2nd reading and then voted by unanimous consent to give it a 3rd and final reading on 2/8/19. It will head to Senate on Tuesday 2/12/19.
The Senate adjourned debate on their resolution when Senator Malloy from Darlington wanted the weekend to “talk to his folks back home”. The Senate sponsor, Senator Alexander, as well as the Senate Finance Committee staff have been alerted that the House version is headed their way with the hopes that they can act on that version since it will have already passed that one body.
Rep. Gary Simrill (R-York) and Rep. Todd Rutherford (D-Richland) pre-filed H.3274 (Tobacco Pre-emption) that would prevent local governments from banning certain tobacco and vaping products. This bill would prevent any local government from banning tobacco/e-cigarette products based on ingredients, flavors and licensing requirements on those products.
Gary Simrill, House Majority Leader (R-York)
Todd Rutherford, House Minority Leader (D-Richland)
SCACS testified in support of this bill at the Ways & Means subcommittee and it received a favorable report unanimously. The bill was then reported out favorably by the full Ways & Means committee. It will likely be taken up in the House as early as next week (Week of February 4th). It will be important that we have SCACS members reach out to their legislators to push them to support this statewide tobacco pre-emption bill.
Rep. Beth Bernstein (D-Richland) introduced 3 bills in the House regarding prevention of youth access to vaping products. The 3 bills were combined into one bill (H.3420). The bill addresses youth vaping prevention at schools, requiring additional measures for online purchases of vaping products, and preventing youth from entering tobacco/e-cigarette shops. SCACS worked with Rep. Beth Bernstein to add additional language to ensure that the legislation would not prevent youth from entering convenience stores.
Rep. Beth Bernstein (D-Richland)
SCACS successfully worked with Rep. Beth Bernstein to ensure that the legislation would not prevent youth from entering convenience stores. The bill was adopted unanimously by the House Judiciary Committee and is scheduled to be taken up in the House chamber next week (Week of February 4th).
The SC Chamber and Republicans are pushing for wholesale tax reform. This would include getting rid of certain exemptions that are currently in statute.
SC Chamber of Commerce
Speaker of the House, Jay Lucas (R-Darlington)
House Ways & Means Chairman Murrell Smith (R – Sumter)
Senate Finance Chairman Hugh Leatherman (R – Florence)
Bills have not been introduced yet, but we are monitoring this because we anticipate that large tax reform could have an impact on SCACS members.
2018 Legislative Issues:
H. 3529 – Auxiliary Containers (Plastic Bag Bill)
On Jan. 10, the S.C. Conservation Coalition held a briefing for legislators where Folly Beach Mayor Tim Goodwin gave an update on the plastic bag legislation from 2017. Mayor Goodwin stated that the bill takes away a town or city’s ability to address local problems with pollution, and violates home rule. The majority of legislators in attendance were senators, who have not yet had the opportunity to hear testimony or take action on the bill. The bill remains on the House floor, after debate was adjourned on the bill on Jan. 10.
S. 831/H. 3777 – Cigarette Tax Stamps
S. 831 classifies cigarettes found at any point within the State without the required stamps contraband goods under certain circumstances, including if the cigarettes are found in the possession of a person offering them for sale or distribution and that person is not the first to receive the untaxed cigarettes in the state, or if the person is offering them for sale at retail within the state. The Senate passed the bill in February, and the House Ways and Means Committee has yet to act on the bill.
S. 575/H. 3664 – Cigarette Surtax
S. 575 revises the weight limitation on cigarettes from 3 pounds or less per one thousand cigarettes to 4.5 pounds or less per one thousand cigarettes. The bill also exempts cigarettes wrapped in tobacco leaf with no filter. The bill was introduced in 2017, and has yet to be taken up by the Senate Finance Committee.
H. 3650 – SC Business License Tax Standardization Act
The Business License Tax Standardization Act amends and standardizes how localities can impose business licenses taxes. It is an effort to ease regulatory burdens on businesses operating in multiple localities. The bill was recommitted to the House Labor, Commerce and Industry Committee in March.
S. 819 – Beverage Container Recycling Act – New Introduction for 2018
The Beverage Container Recycling Act requires a refundable deposit for certain types of beverage containers, and establishes provisions for redemption centers that may be operated by a store. The bill was pre-filed in December 2017 and referred to committee on Jan. 9.
Help SCACS – Make your Voice Heard!
Dear SCACS Member,
Make your voice heard! As a benefit of being a member of the South Carolina Association of Convenience Stores (SCACS), you have asked SCACS to fight for you at the statehouse level and keep you updated on legislative issues that arise.
Well, you have the opportunity to help SCACS, as owners, employees, voters, volunteers and contributors to the communities where you live and work, your voice and opinions are extremely important and influential to SCACS and our grassroot efforts.
SCACS has worked with a company called RAP Index and now has a way to gauge the reach of our collective networks and enable us to effectively plan for the future policy discussions. By understanding our network of relationships with elected officials, we can build advocacy programs that help advance our positions on any number of legislative issues that directly impact you and your business.
Please take a few minutes of your time to take this brief survey below by clicking on the link or button below, because your participation WILLmake a difference for SCACS.
Thank you for your time and support,
Chairman of the Legislative Committee