S*1304(Rat #0513, Act #0462 of 1988)  General Bill, By J.M. Waddell, J.C. Hayes, 
C.T. Hinson, Leatherman, J.M. Long and I.E. Lourie

Similar(H 3956)
 A Bill to amend Section 12-7-1240, Code of Laws of South Carolina, 1976,
 relating to income tax credits, so as to allow the tax credit whenever a
 resident is taxed in another state.

   03/10/88  Senate Introduced and read first time SJ-20
   03/10/88  Senate Referred to Committee on Finance SJ-20
   03/23/88  Senate Committee report: Favorable Finance SJ-20
   03/24/88  Senate Read second time SJ-62
   03/24/88  Senate Unanimous consent for third reading on next
                     legislative day SJ-62
   03/25/88  Senate Read third time and sent to House SJ-34
   03/29/88  House  Introduced and read first time HJ-2375
   03/29/88  House  Referred to Committee on Ways and Means HJ-2375
   04/07/88  House  Committee report: Favorable Ways and Means HJ-2552
   04/14/88  House  Read second time HJ-2960
   04/14/88  House  Unanimous consent for third reading on next
                     legislative day HJ-2963
   04/15/88  House  Read third time and enrolled HJ-3010
   04/19/88         Ratified R 513
   04/22/88         Signed By Governor
   04/22/88         Effective date 04/22/88
   04/22/88         Act No. 462
   05/03/88         Copies available

AN ACT TO AMEND SECTION 12-7-1240, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INCOME TAX CREDITS, SO AS TO ALLOW THE TAX CREDIT WHENEVER A RESIDENT IS TAXED IN ANOTHER STATE.

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

Credit allowed

SECTION 1. Section 12-7-1240, formerly Section 12-7-2410, of the 1976 Code, is amended to read:

"Section 12-7-1240. (A) Individuals who are residents of this State are allowed a credit against the taxes imposed by this chapter for income taxes imposed by and paid to another state on income taxed under this chapter, subject to the following conditions:

(1) The credit is allowed only for taxes paid to the other state on income derived from sources within the state which is taxed under the laws of that state irrespective of the residence of the recipient. However, whenever a taxpayer who is considered to be a resident of this State under the provisions of this chapter and who is considered also to be a resident of another state under the laws of the other state, the commission may, at its discretion, allow a credit against the taxes imposed by this chapter for those taxes imposed by and paid to the other state on income taxed under this chapter.

(2) The fraction of the taxable income for South Carolina income tax purposes which is subject to income tax in another state is ascertained and the South Carolina net income tax before credit under this section must be multiplied by that fraction. The credit allowed is either the product calculated or the income tax actually paid the other state, whichever is smaller.

(3) A copy of a return upon the basis of which the taxes are assessed must be filed with the commission at the time credit is claimed. If credit is claimed on account of a deficiency assessment, a copy of the notice assessing or proposing to assess the deficiency, as well as a receipt showing the payment of the deficiency, must be filed.

(B) If any taxes paid to another state for which a taxpayer has been allowed a credit under this section are at any time credited or refunded to the taxpayer, a tax equal to that portion of the credit allowed for these taxes credited or refunded is due and payable from the taxpayer within sixty days from the date of the receipt of the refund or the notice of the credit. If the amount of the tax is not paid within sixty days of receipt or notice, the taxpayer is subject to the penalties and interest for failure to pay provided for in Chapter 54 of this title."

Provisions effective

SECTION 2. The provisions of Section 12-7-1240 of the 1976 Code, as amended by Section 1 of this act, are effective for tax years beginning after December 31, 1987.

Time effective

SECTION 3. This act takes effect upon approval by the Governor.