H 4550 General Bill, By Harrell, W.D. Smith, Cooper, Cato, Harrison, Walker, 
Witherspoon, White, Young, Littlejohn, G.R. Smith, Toole, Huggins, Bedingfield, 
Lowe, Viers, Herbkersman, Duncan, Skelton, Haley, Hardwick, Frye, Erickson, 
Bingham, Bowen, Brady, Taylor, Mahaffey, J.R. Smith, Hutson, Pinson, Bannister, 
Clemmons, Delleney, Gambrell, Merrill, Mulvaney, E.H. Pitts, Rice, Sandifer, 
Shoopman, D.C. Smith, Spires, Umphlett, Whitmire, Cotty, Loftis, Vick, Owens, 
Knight, Talley and Leach
 A BILL TO DESIGNATE SECTION 5 OF ACT 115 OF 2007 AS SECTION 12-6-515, CODE OF
 LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDUCTION IN THE SOUTH CAROLINA
 INDIVIDUAL INCOME TAX LIABILITY OF INDIVIDUALS BY SUBJECTING THE BOTTOM OF THE
 2.5 PERCENT STATE INDIVIDUAL INCOME RATE TO A TAX RATE OF ZERO, SO AS TO
 PROVIDE FURTHER RATE REDUCTIONS FOR MARRIED TAXPAYERS BY REDUCING THE THREE
 PERCENT RATE TO TWO PERCENT OVER THREE YEARS AND TO DEFINE "MARRIED TAXPAYER"
 CONSISTENTLY WITH THE DEFINITION FOR MARRIAGE PROVIDED IN THE CONSTITUTION OF
 THIS STATE.

   01/24/08  House  Introduced and read first time HJ-2
   01/24/08  House  Referred to Committee on Ways and Means HJ-3
   01/30/08  House  Member(s) request name added as sponsor: Cotty
   03/11/08  House  Committee report: Favorable Ways and Means HJ-78
   03/13/08  House  Member(s) request name added as sponsor: Loftis
   03/13/08  House  Debate adjourned until Tuesday, March 25, 2008 HJ-27
   03/25/08  House  Member(s) request name added as sponsor: Vick,
                     Owens, Knight
   03/25/08  House  Debate adjourned until Wednesday, March 26, 2008 HJ-42
   03/26/08  House  Debate adjourned until Thursday, March 27, 2008 HJ-29
   03/27/08  House  Debate adjourned until Tuesday, April 1, 2008 HJ-21
   04/01/08  House  Member(s) request name added as sponsor: Talley
   04/01/08  House  Objection by Rep. Cobb-Hunter HJ-28
   04/01/08  House  Requests for debate-Rep(s). Kennedy, JH Neal,
                     Moody-Lawrence, Breeland, Littlejohn, Mack,
                     Haskins, Harvin, Merrill, Cooper, Ott, Skelton,
                     and Thompson HJ-28
   04/02/08  House  Member(s) request name added as sponsor: Leach
   04/02/08  House  Read second time HJ-44
   04/02/08  House  Roll call Yeas-100  Nays-14 HJ-50
   04/03/08  House  Debate adjourned until Tuesday, April 8, 2008 HJ-53
   04/09/08  House  Read third time and sent to Senate HJ-41
   04/09/08  Senate Introduced and read first time SJ-10
   04/09/08  Senate Referred to Committee on Finance SJ-10

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

March 11, 2008

H. 4550

Introduced by Reps. Harrell, W.D. Smith, Cooper, Cato, Harrison, Walker, Witherspoon, White, Young, Littlejohn, G.R. Smith, Toole, Huggins, Bedingfield, Lowe, Viers, Herbkersman, Duncan, Skelton, Haley, Hardwick, Frye, Erickson, Bingham, Bowen, Brady, Taylor, Mahaffey, J.R. Smith, Hutson, Pinson, Bannister, Clemmons, Delleney, Gambrell, Merrill, Mulvaney, E.H. Pitts, Rice, Sandifer, Shoopman, D.C. Smith, Spires, Umphlett, Whitmire and Cotty

S. Printed 3/11/08--H.

Read the first time January 24, 2008.

To whom was referred a Bill (H. 4550) to designate Section 5 of Act 115 of 2007 as Section 12-6-515, Code of Laws of South Carolina, 1976, relating to the reduction in the South Carolina, etc., respectfully

That they have duly and carefully considered the same and recommend that the same do pass:

DANIEL T. COOPER for Committee.

TO DESIGNATE SECTION 5 OF ACT 115 OF 2007 AS SECTION 12-6-515, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDUCTION IN THE SOUTH CAROLINA INDIVIDUAL INCOME TAX LIABILITY OF INDIVIDUALS BY SUBJECTING THE BOTTOM OF THE 2.5 PERCENT STATE INDIVIDUAL INCOME RATE TO A TAX RATE OF ZERO, SO AS TO PROVIDE FURTHER RATE REDUCTIONS FOR MARRIED TAXPAYERS BY REDUCING THE THREE PERCENT RATE TO TWO PERCENT OVER THREE YEARS AND TO DEFINE "MARRIED TAXPAYER" CONSISTENTLY WITH THE DEFINITION FOR MARRIAGE PROVIDED IN THE CONSTITUTION OF THIS STATE.

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

SECTION    1.    A.    Section 5, Act 115 of 2007 is designated Section 12-6-515 and added in Article 5, Chapter 6, Title 12 of the 1976 Code.

B.    Section 12-6-515 of the 1976 Code, as added by subsection A of this section, is amended to read:

"Section 12-6-515.    (A)    Notwithstanding any other provision of law, for taxable years beginning after 2006, the rate of tax imposed pursuant to Section 12-6-510(A) on the lowest bracket of South Carolina taxable income is reduced from 2.5 percent to zero percent, and the Department of Revenue shall adjust amounts due in tax tables prescribed by the department.

(B)(1)    Notwithstanding the provisions of subsection (A) of this section, the rate of tax imposed pursuant to Section 12-6-510(A) on the current three percent bracket of married individuals filing a joint South Carolina income tax return is reduced according to the following schedule:

Taxable Year    Applicable Rate

2008    2.7 percent

2009    2.4 percent

after 2009    2 percent.

(2)    For purposes of this subsection, a married taxpayer is a taxpayer who:

(a)    files a joint federal income tax return for the applicable taxable year; and

(b)    is married in a lawful domestic union as provided pursuant to Section 15, Article XVII of the Constitution of this State.

(3)    The Department of Revenue, in conformity with this subsection, shall adjust amounts due in tax tables prescribed by the department."

SECTION    2.    This act takes effect upon approval by the Governor.