When did the 1990 South Carolina law require an interstate motor carrier to file a corporate income tax return?

Plain-English summary

SC Information Letter #90-30 listed three conditions that required an interstate motor carrier to file a South Carolina corporate income tax return. Filing was required if the carrier owned or rented South Carolina real or personal property other than mobile property, traveled more than 25,000 mobile-property miles in the state during the tax year, or made more than 12 South Carolina pickups or deliveries. The mileage and pickup-or-delivery tests applied to the holder of Interstate Commerce Commission operating authority, not its agents.

What this means for you

The letter also described a September 11, 1990 filing opportunity for certain unfiled 1987-1989 returns, vehicle-mile apportionment, historical corporate rates, and forms. Treat all of those details as historical.

Subject

Interstate Motor Carriers - Return Requirements

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL90-30.pdf

Original ruling text

SC INFORMATION LETTER #90-30

TO:

Vicki Jinnette Ringer
Public Information Director

FROM:

Deana West, Tax Analyst
Tax Policy and Procedures Department

DATE:

July 31, 1990

SUBJECT:

Interstate Motor Carriers - Return Requirements
(Corporate Income Tax)

REFERENCE:

S. C. Code Ann. Section 12-7-340
(As Enacted June 1990)

AUTHORITY:

S. C. Code Ann. Section 12-3-140 (1976)
SC Revenue Procedure #87-3

SCOPE:

An Information Letter is a temporary document issued for the purpose of disseminating general tax information and to respond to technical questions from within the Commission which are not related to a specific set of facts.

Effective June 13, 1990, Code Section 12-7-340 was enacted to set forth certain conditions which require interstate motor carriers doing de minimis business in South Carolina to file income tax returns. If an interstate motor carrier meets any of the requirements set forth below it must file a South Carolina income tax return: 1. 2.

3.

owns or rents real or personal property in South Carolina, except mobile property; travels more than 25,000 mobile property miles during its tax year in South Carolina, even if the ratio of total mobile property miles traveled for the tax year in South Carolina to all states is less than 10%; or makes over 12 pick ups or deliveries in South Carolina during its tax year.

The provisions of items 2 and 3 only apply to the holder of an operating authority issued by the Interstate Commerce Commission, not to its agents.

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The law also provides that applicable interstate motor carriers who have not filed returns for the tax years 1987, 1988 and 1989 may file returns and pay taxes due plus interest for those years, if the returns are filed and payments made on or before September 11, 1990. Interstate motor carriers, pursuant to Code Section 12-7-640, will "apportion their net apportionable income to South Carolina by use of the ratio of vehicle miles within South Carolina to total vehicle miles everywhere." This ratio will be calculated each tax year on Schedule H-3 of the South Carolina corporation income tax return. The corporate tax rates in South Carolina for the years in question are as follows (Code Section 12-7-230): Year

Tax Rate

Tax Years beginning in 1987
Tax Years beginning in 1988
Tax Years beginning in 1989

6%
5.5%
5%

The forms necessary to be filed are listed below and may be obtained by calling the South Carolina Tax Commission at 803-737-5080: CL-1 - Initial Annual Report of Corporations SCTC-111 - Business Tax Application SC 1120 - Corporate Income Tax Return (Years 1987 - 1989) Persons requiring additional information should contact Alfred Nix in the Field Services Division at 803-737-4814.

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