South Carolina General Assembly
116th Session, 2005-2006

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S. 32

STATUS INFORMATION

General Bill
Sponsors: Senators Richardson, Elliott and Mescher
Document Path: l:\council\bills\ggs\22811htc05.doc

Introduced in the Senate on January 11, 2005
Currently residing in the Senate Committee on Finance

Summary: Retirement income deduction

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   12/8/2004  Senate  Prefiled
   12/8/2004  Senate  Referred to Committee on Finance
   1/11/2005  Senate  Introduced and read first time SJ-96
   1/11/2005  Senate  Referred to Committee on Finance SJ-96

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

12/8/2004

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 12-6-1170, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RETIREMENT INCOME DEDUCTION AND THE DEDUCTION ALLOWED PERSONS WHO HAVE ATTAINED AGE SIXTY-FIVE FOR PURPOSES OF THE STATE INDIVIDUAL INCOME TAX, SO AS TO ALLOW AN EXEMPTION EQUAL TO ONE HUNDRED PERCENT OF TAXABLE INCOME FOR TAXPAYERS WHO HAVE ATTAINED THE AGE OF SEVENTY YEARS AND TO PROVIDE AN ALTERNATE DEDUCTION FROM TAXABLE INCOME FOR INDIVIDUAL TAXPAYERS OVER SIXTY-FIVE YEARS OF AGE BUT WHO HAVE NOT ATTAINED THE AGE OF SEVENTY YEARS WITH THE TAXPAYER ALLOWED THE GREATER OF THE ORIGINAL DEDUCTION ALLOWED PERSONS WHO HAVE ATTAINED THE AGE OF SIXTY-FIVE YEARS OR THE ALTERNATE DEDUCTION ADDED BY THIS ACT.

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

SECTION    1.    Section 12-6-1170(B) of the 1976 Code is amended to read:

"(B)    (1)    Beginning for the taxable year during which a resident individual taxpayer attains the age of sixty-five years, the resident individual taxpayer is allowed a deduction from South Carolina taxable income received in an amount not to exceed fifteen thousand dollars reduced by any amount the taxpayer deducts pursuant to subsection (A) not including amounts deducted as a surviving spouse. If married taxpayers eligible for this deduction file a joint federal income tax return, then the maximum deduction allowed is fifteen thousand dollars in the case when only one spouse has attained the age of sixty-five years and thirty thousand dollars when both spouses have attained such age.

(2)    Beginning for the taxable year during which a resident individual taxpayer attains the age of seventy years and in lieu of any other deduction allowed pursuant to subsection (A) of this section and items (1) and (3) of this subsection, the taxpayer is allowed a deduction equal to one hundred percent of South Carolina taxable income. This exemption extends to all income reported on a joint federal income tax return filed by the taxpayer regardless of the age of the taxpayer's spouse.

(3)    Beginning for the taxable year during which a resident individual taxpayer attains the age of sixty-six years, the taxpayer is allowed a deduction from South Carolina taxable income which is the greater of the deduction allowed pursuant to subsection (A) of this section and item (1) of this subsection or this item. The deduction allowed by this item is a percentage of South Carolina taxable income based on the age of the taxpayer as provided below:

Percentage deduction

Taxable year during from South Carolina

which taxpayer attains age taxable income

66 20

67 40

68 60

69 80

If married taxpayers file a joint federal income tax return and both taxpayers qualify under the age provisions of this item, then the deduction percentages for both taxpayers are added; but not more than one hundred percent. Income received as a surviving spouse pursuant to subsection (A) of this section is not included as taxable income for purposes of calculating the deduction allowed by this item."

SECTION    2.    This act takes effect upon approval by the Governor and applies for taxable years beginning after 2004.

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