H 3371 — Admissions tax exemption

2025-2026 Bill 3371 Text of Previous Version (Apr.(Dec.

28,06, 2026)2024) - South Carolina Legislature Online South Carolina General Assembly126th Session, 2025-2026Bill 3371Indicates Matter StrickenIndicates New Matter(Text matches printed bills.

Document has been reformatted to meet World Wide Web specifications.) Indicates  Matter  Stricken  Indicates  New  Matter    Committee  ReportA Aprilbill 28,  2026to  amend H.the South Carolina Code of Laws by amending Section 12-21-2420, relating to admissions tax, so as to EXEMPT ADMISSIONS CHARGED BY CERTAIN NONPROFIT BUSINESS LEAGUES AND CHAMBERS OF COMMERCE.

3371   Introduced by Rep.

Hixon   S.

Printed 4/28/26--H.

Read the first time January 14, 2025   ________   The committee on House Ways and Means To whom was referred a Bill (H.

3371) to amend the South Carolina Code of Laws by amending Section 12-21-2420, relating to admissions tax, so as to exempt admissions charged by certain nonprofit business, etc., respectfully Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

      Amend the bill, as and if amended, SECTION 1, by striking Section 12-21-2420(18) and inserting:

    (18) on admissions charged by business leagues or chambers of commerce qualified under 501(c)(6) by the Internal Revenue Service, which are not organized for profit, and no part of whose earnings inure to the benefit of any private shareholder or individual.

Renumber sections to conform.

Amend title to conform.

  B.W.

BANNISTER for Committee.

    statement of estimated fiscal impact Explanation of Fiscal Impact State Expenditure This bill exempts admissions charged by business leagues or chambers of commerce organized as a 501(c)(6) under the IRC from the admissions tax.

Currently, a 5 percent tax is levied on admissions to places of amusement.

This bill will result in a minimal expenditure impact for the DOR to update forms, the department website, and perform system changes for the new exemption.

DOR indicates that the changes can be administered with existing staff and appropriations.

State Revenue This bill exempts admissions charged by business leagues or chambers of commerce organized as a 501(c)(6) under the IRC from the admissions tax.

A 5 percent tax is currently levied on admission to places of amusement, subject to some exemptions.

Currently, admissions charged or sponsored by any eleemosynary and nonprofit corporation or organization organized exclusively for religious, charitable, scientific, civic, fraternal, or educational purposes are exempt from the admissions tax, depending upon how the proceeds generated from admissions are distributed and subject to some exclusions.

Based on conversations with DOR, 501(c)(6) organizations do not currently qualify for an exemption from admissions tax.

Data regarding the amount of admissions tax generated by type of organization are unavailable.

Therefore, in order to estimate the potential impact, Revenue and Fiscal Affairs used the portion of business activity attributable to 501(c)(6) organizations to estimate the percentage of admissions tax attributable to these entities.

According to the Internal Revenue Service, there are currently 711 501(c)(6) organizations registered in South Carolina.

Overall in the U.S., 501(c)(6) organizations generated approximately $58.46 billion in revenue in tax year 2022.

In tax year 2022, U.S.

charitable organizations classified as 501(c)(4)-(7) and (9) reported approximately $424 billion in revenue, U.S.

corporations reported approximately $39.94 trillion in business receipts, and U.S.

partnerships reported approximately $8.34 trillion in business receipts.

  Based on these figures, the share of revenue generating activities by 501(c)(6) organizations in the U.S.

is approximately 0.12 percent.

For this analysis, we have assumed that the percentage of admissions tax generated by the 501(c)(6) charities is relatively the same as the share of overall revenue.

Section 12-62-60 states that 26 percent of the General Fund portion of admissions collections for the previous fiscal year must be allocated to the South Carolina Film Commission of the SC Department of Parks, Recreation and Tourism.

The table below provides the estimated General Fund admissions tax based on the November 18, 2025, forecast by the S.C.

Board of Economic Advisors (BEA).

Based on these figures, the estimated amounts to be transferred to the SC Fillm Commission and total admissions tax revenue are also shown below.

Multiplying the expected total admissions tax revenue by 0.12 percent for FY 2026-27, FY 2027-28, and FY 2028-29 yields approximately $65,000, $67,000, and $69,000, respectively that would be exempted under the bill.

  Estimated Admissions Tax Revenue and Exemption Fiscal Year General Fund Admissions Tax SC Fillm Commission Transfer Total Admissions Tax Estimated 501(c)(6) Exemption* FY 2024-25 $39,965,358 FY 2025-26 (est.) $40,393,000 $10,390,993 $50,783,993 FY 2026-27 (est.) $43,304,000 $10,502,180 $53,806,180 $65,000 FY 2027-28 (est.) $44,192,000 $11,259,040 $55,451,040 $67,000 FY 2028-29 (est.) $45,656,000 $11,489,920 $57,145,920 $69,000 *Figures are rounded.