S 666 Session 110 (1993-1994)
S 0666 General Bill, By Land
Similar(H 3907)
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 Income Tax, so as to clarify the retirement income exclusion for
surviving spouses; to amend Section 12-7-437, relating to the deduction from
taxable income of a portion of net long-term capital gain, so as to provide
that the deduction applies to net capital gain; to amend Section 12-7-1120,
relating to allocation of income, so as to clarify the allocation of dividends
of Subchapter S corporations; to amend Section 12-7-1260, relating to the
employer's capital expenditure child care credit, so as to limit the credit to
employers of South Carolina residents and to capital expenditures made in this
State; to amend Section 12-7-1640, as amended, relating to the time for filing
income tax returns, so as to provide that any tax due must be paid at the time
the return is filed without regard to any extension; and to amend Section
12-7-2419, relating to the Eldercare Trust Fund checkoff, so as to clarify
that the checkoff applies only to individual income tax returns.
04/13/93 Senate Introduced and read first time SJ-8
04/13/93 Senate Referred to Committee on Finance SJ-8
01/19/94 Senate Committee report: Favorable with amendment
Finance SJ-13
01/20/94 Senate Amended SJ-14
01/20/94 Senate Read second time SJ-14
01/20/94 Senate Ordered to third reading with notice of
amendments SJ-14
01/25/94 Senate Read third time and sent to House SJ-10
01/26/94 House Introduced and read first time HJ-9
01/26/94 House Referred to Committee on Ways and Means HJ-9
Indicates Matter Stricken
Indicates New Matter
COMMITTEE AMENDMENT ADOPTED
January 20, 1994
S. 666
Introduced by SENATOR Land
S. Printed 1/20/94--S.
Read the first time April 13, 1993.
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 INCOME TAX, SO AS TO CLARIFY THE
RETIREMENT INCOME EXCLUSION FOR SURVIVING SPOUSES;
TO AMEND SECTION 12-7-437, RELATING TO THE DEDUCTION
FROM TAXABLE INCOME OF A PORTION OF NET LONG-TERM
CAPITAL GAIN, SO AS TO PROVIDE THAT THE DEDUCTION
APPLIES TO NET CAPITAL GAIN; TO AMEND SECTION
12-7-1120, RELATING TO ALLOCATION OF INCOME, SO AS TO
CLARIFY THE ALLOCATION OF DIVIDENDS OF SUBCHAPTER
S CORPORATIONS; TO AMEND SECTION 12-7-1260, RELATING
TO THE EMPLOYER'S CAPITAL EXPENDITURE CHILD CARE
CREDIT, SO AS TO LIMIT THE CREDIT TO EMPLOYERS OF
SOUTH CAROLINA RESIDENTS AND TO CAPITAL
EXPENDITURES MADE IN THIS STATE; TO AMEND SECTION
12-7-1640, AS AMENDED, RELATING TO THE TIME FOR FILING
INCOME TAX RETURNS, SO AS TO PROVIDE THAT ANY TAX
DUE MUST BE PAID AT THE TIME THE RETURN IS FILED
WITHOUT REGARD TO ANY EXTENSION; AND TO AMEND
SECTION 12-7-2419, RELATING TO THE ELDERCARE TRUST
FUND CHECKOFF, SO AS TO CLARIFY THAT THE CHECKOFF
APPLIES ONLY TO INDIVIDUAL INCOME TAX RETURNS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-7-435(k)(5) of the 1976 Code, as added by
Act 171 of 1991, is amended to read:
"(5) The deduction allowed by this item extends to the
taxpayer's surviving spouse and, to the extent the surviving spouse
receives retirement income attributable to the deceased spouse, applies
in the same manner that the deduction applied to the deceased spouse.
If the surviving spouse also has another retirement income, an
additional retirement exclusion is allowed."
SECTION 2. Subsections (A), (B), and (C) of Section 12-7-1260 of the
1976 Code, as added by Act 189 of 1989, are amended to read:
"(A) A taxpayer who employs persons who are residents
of this State in any capacity may claim as a credit against his state
income tax, bank tax, or premium tax liability an amount equal to fifty
percent of his capital expenditures in this State but no more
than one hundred thousand dollars for costs incurred in establishing a
child care program for his employees. A credit claimed under this
section, but not used or available for use in a taxable year, may be
carried forward for the next ten taxable years from the close of the tax
year in which the expenditures are made until the amount of the credit
is taken.
(B) For purposes of this section, `expenditures for costs incurred in
establishing a child care program' includes, but is not limited to,
expenditures, including mortgage or lease payments, for playground and
classroom equipment, kitchen appliances, cooking equipment, and real
property, including improvements in this State. The program
and operation of the program must meet the licensing, registration, or
certification standards prescribed by law.
(C) The taxpayer under subsection (A) also is allowed as a credit
against his state income tax, bank tax, or premium tax liability an
amount not exceeding fifty percent of the child care payments incurred
by the taxpayer to operate a child care program for his employees in
this State, or made directly to licensed or registered independent
child care facilities in the name of and for the benefit of an employee
in this State of the taxpayer, which employee's children are kept
at the facility during the employee's working hours. The payment may
not exceed the amount charged to other children of like age and abilities
of individuals not employed by the taxpayer. The credits allowed by this
subsection may not exceed a maximum of three thousand dollars for
each employee.
Where an employee in this State chooses to utilize the
provisions of this subsection which authorize direct payments to licensed
child care facilities not operated by the employer, expenses attendant to
the organization and administration of such a direct payment program
incurred in the first year are also considered start-up expenses or
expenditures for establishing a child care program for purposes of the
fifty percent tax credit for start-up expenses authorized by subsection
(A)."
SECTION 3. Section 12-7-1640 of the 1976 Code, as last amended by
Act 361 of 1992, is further amended by adding at the end:
"Any tax shown to be due on a return required pursuant to this
chapter must be paid at the time the return is filed, without regard to any
extension of time granted for filing the return."
SECTION 4. Section 12-7-2419 of the 1976 Code, as added by Act
501 of 1992, is amended to read:
"Section 12-7-2419. (A) Each taxpayer
individual required to file a state income tax return who desires
to contribute to the Eldercare Trust Fund of South Carolina as created
by Section 43-21-160 may designate the contribution on the appropriate
state individual income tax form. The contribution may not
decrease the income tax liability of any taxpayer and may be made by
reducing the income tax refund of any taxpayer by the amount
designated or by accepting additional payment from the taxpayer by the
amount designated, whichever is appropriate.
(B) All South Carolina individual income tax return forms
must contain a designation for a contribution to the Eldercare Trust Fund
of South Carolina. The instructions accompanying income tax forms
must contain a description of the purpose for which the Eldercare Trust
Fund was established and the use of monies from the income tax
contribution. Contributions of other amounts may be made directly to
the Eldercare Trust Fund.
(C) Taxpayers who are entitled to refunds shall have the refunds
reduced by the amount designated by the taxpayer. The
commission department shall determine annually the
total amount so designated, plus the amount received in excess payments
and shall report the total amount to the South Carolina Commission
on Aging Division on Aging, Office of the Governor. The
commission department shall transfer the total amount
to the Eldercare Trust Fund at the earliest possible time.
(D) The incremental cost of administration of the contribution must
be paid by the trust fund from amounts received pursuant to this
section."
SECTION 5. This act takes effect upon approval by the Governor.
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