S*0719(Rat #0375, Act #0344 of 1980)  General Bill, By J.M. Waddell, Drummond, 
H. Rubin and H.P. Smith

Similar(H 3301)
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 12-15-420 so as to provide for the taxation of generation skipping transfers.

   01/09/80  Senate Introduced and read first time SJ-28
   01/09/80  Senate Referred to Committee on Finance SJ-28
   01/30/80  Senate Committee report: Favorable Finance SJ-6
   02/13/80  Senate Read second time SJ-10
   02/13/80  Senate Ordered to third reading with notice of
                     amendments SJ-10
   02/19/80  Senate Read third time and sent to House SJ-7
   02/20/80  House  Introduced and read first time HJ-1016
   02/20/80  House  Referred to Committee on Ways and Means HJ-1017
   03/05/80  House  Committee report: Favorable Ways and Means HJ-1240
   03/12/80  House  Read second time HJ-1366
   03/13/80  House  Read third time and enrolled HJ-1407
   03/18/80  Senate Ratified R 375 SJ-10
   03/21/80         Signed By Governor
   03/21/80         Effective date 03/21/80
   03/21/80         Act No. 344
   03/28/80         Copies available

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-15-420 SO AS TO PROVIDE FOR THE TAXATION OF GENERATION SKIPPING TRANSFERS.

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

Taxation of generation skipping transfers

Section 1. The 1976 Code is amended by adding:

"Section 12-15-420. (a) A tax, in addition to any other taxes imposed by this chapter, is imposed upon every generation skipping transfer, subject to the tax imposed by Chapter 13 of Subtitle B of the Internal Revenue Code of 1954, as amended, in an amount equal to the amount allowable as credit for state inheritance taxes under Section 2602 of the Internal Revenue Code (1) when the original transferor was a resident of this State at the date of the original transfer, to the extent such credit exceeds the aggregate amount of all taxes on the same transfer actually paid to the several states of the United States, other than this State; (2) when the original transferor is not a resident of this State but the transfer includes real or personal property with a situs in this State, reduced by an amount which bears the same ratio to the total state inheritance tax credit allowable for federal generation skipping transfer tax purposes as the value of the transferred property taxable by all other states bears to the value of the gross generation skipping transfer for federal generation skipping transfer tax purposes.

(b) Every person required by the Internal Revenue Code to file a return reporting a generation skipping transfer shall file a duplicate copy of the federal return with the Commission on or before the last day prescribed for filing the return.

(c) The tax imposed shall be due upon a taxable distribution or taxable termination as determined under the provisions of the federal generation skipping transfer tax. The person liable for payment of such federal tax shall also be liable for the tax imposed and it shall be paid to the Commission on or before the last day allowed for filing the return with the Commission.

(d) If, after the filing of the duplicate federal return with the Commission, the federal government shall thereafter increase or decrease the amount of the federal generation skipping transfer tax actually due, within thirty days of the increase or decrease, an amended return shall be filed with the Commission reflecting all changes made in the original return and the amount of increase or decrease in the federal generation skipping transfer tax. Based thereon and upon such evidence as it may otherwise acquire, the Commission shall reassess the tax imposed and if it shall determine that there remains due additional tax it shall thereafter issue a notice of proposed assessment pursuant to Section 12-15-830. If the notice of the federal change in tax due is not furnished any additional tax which may be owing may be assessed at any time."

Time effective

Section 2. This act shall take effect upon approval by the Governor.