S 0054 General Bill, By M.T. Rose
 A Bill to amend Section 12-7-435, as amended, Code of Laws of South Carolina,
 1976, relating to deductions from South Carolina taxable income for purposes
 of the state individual income tax, so as to allow the deduction of all
 federal civilian and military pension income received by taxpayers, to delete
 provisions limiting such deductions to three thousand dollars, to delete
 obsolete cross-references, and to repeal Section 12-7-436, relating to the
 phase-in of the former three thousand dollar exclusion.

   09/10/90  Senate Prefiled
   09/10/90  Senate Referred to Committee on Finance
   01/08/91  Senate Introduced and read first time SJ-39
   01/08/91  Senate Referred to Committee on Finance SJ-39

A BILL

TO AMEND SECTION 12-7-435, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR PURPOSES OF THE STATE INDIVIDUAL INCOME TAX, SO AS TO ALLOW THE DEDUCTION OF ALL FEDERAL CIVILIAN AND MILITARY PENSION INCOME RECEIVED BY TAXPAYERS, TO DELETE PROVISIONS LIMITING SUCH DEDUCTIONS TO THREE THOUSAND DOLLARS, TO DELETE OBSOLETE CROSS-REFERENCES, AND TO REPEAL SECTION 12-7-436, RELATING TO THE PHASE-IN OF THE FORMER THREE THOUSAND DOLLAR EXCLUSION.

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

SECTION 1. Items (a), (b), (c), and (d) of Section 12-7-435 of the 1976 Code are amended to read:

"(a) Any retired person, or his surviving spouse, who receives a federal civil service retirement annuity is allowed to deduct from taxable income three thousand dollars of the annuity received each taxable year exclusive of any other exemption. The provisions of this item do not apply to retired persons who are now exempt from payment of taxes on federal civil service retirement annuities Reserved.

(b) Any person retired from the uniformed services of the United States with twenty or more years active duty service, or his surviving spouse, is allowed to deduct from taxable income three thousand dollars of his uniformed services retirement pay received each taxable year Reserved.

(c) Any retired person, or his surviving spouse, who attains the age of sixty-five before the close of the taxable year and who receives income under one or more qualified pension programs is allowed to deduct from taxable income three thousand dollars of the pension income received in each taxable year. If the pension income also qualifies for a deduction from taxable income under the provisions of items (a) or (b) of this section, no deduction from taxable income is permitted under the provisions of this item.

(d) All amounts received from the South Carolina Retirement Systems as provided in Title 9 and all federal civilian and military retirement benefits."

SECTION 2. Section 12-7-436 of the 1976 Code is repealed.

SECTION 3. Upon approval by the Governor, this act is effective for taxable years beginning after 1988.