H 3028 General Bill, By Davenport and W.D. Smith
 A BILL TO AMEND SECTION 12-6-530, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE FIVE PERCENT CORPORATE INCOME TAX RATE IMPOSED PURSUANT TO THE
 SOUTH CAROLINA INCOME TAX ACT, SO AS TO PROVIDE FOR GRADUATED CORPORATE INCOME
 TAX RATES RANGING FROM ONE AND ONE-HALF PERCENT TO FIVE PERCENT.

   12/04/02  House  Prefiled
   12/04/02  House  Referred to Committee on Ways and Means
   01/14/03  House  Introduced and read first time HJ-21
   01/14/03  House  Referred to Committee on Ways and Means HJ-21

TO AMEND SECTION 12-6-530, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FIVE PERCENT CORPORATE INCOME TAX RATE IMPOSED PURSUANT TO THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO PROVIDE FOR GRADUATED CORPORATE INCOME TAX RATES RANGING FROM ONE AND ONE-HALF PERCENT TO FIVE PERCENT.

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

SECTION    1.    Section 12-6-530 of the 1976 Code is amended to read:

"Section 12-6-530.    (A)    An income tax at the rate provided in subsection (B) is imposed annually at the rate of five percent on the South Carolina taxable income of every corporation, other than those described in Sections 12-6-540 and 12-6-550, and any other entity taxed using the rates of a corporation for federal income tax purposes, transacting, conducting, or doing business within this State or having income within this State, regardless of whether these activities are carried on in intrastate, interstate, or foreign commerce. The terms 'transacting', 'conducting', and 'doing business' include transacting or engaging in any activity for the purpose of financial profit or gain.

(B)    The brackets and rates of the tax imposed pursuant to subsection (A) are:

Taxable Income                                    Applicable Rate

Not over $100,000                                1.5 percent of taxable income

Over $100,000 but not                        $1500 plus three percent of

over $250,000                                        the excess over $100,000

Over $250,000 but not                        $6000 plus four percent of the

over $500,000                                        excess over $250,000

Over $500,000                                    $16,000 plus five percent of

the excess over $500,000."

SECTION    2.    This act takes effect upon approval by the Governor and applies for corporate tax years beginning after 2002.