Bill Text: SC H4152 | 2015-2016 | 121st General Assembly | Introduced

South Carolina House Bill 4152 (Prior Session Legislation)

Introduced

Bill Title: Income tax

Spectrum: Moderate Partisan Bill (Republican 25-3)

Status: (Introduced - Dead) 2015-05-27 - Member(s) request name added as sponsor: Johnson [H4152 Detail]

Download: South_Carolina-2015-H4152-Introduced.html

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-517 SO AS TO REPLACE THE INCOME TAX IMPOSED ON THE TAXABLE INCOME OF INDIVIDUALS, ESTATES, TRUSTS, AND CERTAIN OTHER ENTITIES IN TAX YEARS BEGINNING AFTER 2014 BY REDUCING THE RATE OF TAXATION BY ONE QUARTER OF ONE PERCENT FOR FOUR YEARS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-517. (A) Notwithstanding Section 12-6-510, for taxable years beginning after 2014, a tax is imposed on the South Carolina taxable income of individuals, estates, and trusts and any other entity except those taxed or exempted from taxation under Sections 12-6-530 through 12-6-550 computed at the following rates with the income brackets indexed in accordance with Section 12-6-520:

Over But Not Over Tax Plus Rate Of Excess Over

$ 0 $ 2,880 $ 0 0% $ 0

$ 2,880 $ 5,760 $ 0 2.75% $ 2,880

$ 5,760 $ 8,640 $ 46 3.75% $ 5,760

$ 8,640 $11,520 $121 4.75% $ 8,640

$11,520 $14,400 $225 5.75% $11,520

$14,400 $357 6.75% $14,400

(B) Beginning with taxable year 2016, based on the rates and tax brackets that applied in tax year 2015, the rate of tax imposed pursuant to subsection (A) on South Carolina taxable income on all brackets of South Carolina taxable income is reduced by one quarter of one percent each year. The tax rate reductions required by this section are cumulative and shall cease after tax year 2018, at which time the reduction in each affected tax bracket is permanent.

(C) The department may prescribe tax tables consistent with the rates set pursuant to subsection (A). The department cumulatively shall adjust these brackets in the same manner as provided in Section 12-6-520, beginning in tax year 2015 and each year after.

(D) A taxpayer who is eligible to elect the income tax rate established in Section 12-6-545, instead of the income tax rate established in Section 12-6-510, also may elect the income tax rate established in Section 12-6-545, instead of the income tax rate set forth in this section."

SECTION 2. This act takes effect upon approval by the Governor.