H 3202 General Bill, By Campsen, Altman, R. Brown, Cato, Chellis, Cotty, 
Dantzler, Easterday, Hamilton, Harrell, Hinson, Law, Leach, Limehouse, 
Littlejohn, Loftis, Lucas, Merrill, Perry, Quinn, Rice, Robinson, Scarborough, 
Simrill, Sinclair, D.C. Smith, W.D. Smith, Stille, Tripp, J. Young and White
 A BILL TO ENACT THE MARRIAGE PENALTY TAX RELIEF ACT BY AMENDING SECTION
 12-6-510, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAX RATES AND
 BRACKETS APPLICABLE TO INDIVIDUALS, ESTATES, AND TRUSTS FOR PURPOSES OF THE
 SOUTH CAROLINA INCOME TAX ACT, SO AS TO ALLOCATE EQUALLY BETWEEN SPOUSES SOUTH
 CAROLINA TAXABLE INCOME REPORTED ON A JOINT RETURN AND APPLY THE RATES AND
 BRACKETS SEPARATELY TO EACH INCOME THEREBY REDUCING THE STATE INCOME TAX
 LIABILITY FOR MARRIED COUPLES FILING JOINT RETURNS; TO REPEAL SECTION
 12-6-3330, RELATING TO THE TWO WAGE EARNER CREDIT FOR MARRIED INDIVIDUALS
 FILING JOINT RETURNS MADE OBSOLETE BY THE PROVISIONS OF THIS ACT, AND TO PHASE
 IN THESE PROVISIONS OVER FIVE TAXABLE YEARS BEGINNING WITH THE 2001 TAXABLE
 YEAR.

   01/09/01  House  Introduced and read first time HJ-82
   01/09/01  House  Referred to Committee on Ways and Means HJ-82

TO ENACT THE MARRIAGE PENALTY TAX RELIEF ACT BY AMENDING SECTION 12-6-510, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAX RATES AND BRACKETS APPLICABLE TO INDIVIDUALS, ESTATES, AND TRUSTS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO ALLOCATE EQUALLY BETWEEN SPOUSES SOUTH CAROLINA TAXABLE INCOME REPORTED ON A JOINT RETURN AND APPLY THE RATES AND BRACKETS SEPARATELY TO EACH INCOME THEREBY REDUCING THE STATE INCOME TAX LIABILITY FOR MARRIED COUPLES FILING JOINT RETURNS; TO REPEAL SECTION 12-6-3330, RELATING TO THE TWO WAGE EARNER CREDIT FOR MARRIED INDIVIDUALS FILING JOINT RETURNS MADE OBSOLETE BY THE PROVISIONS OF THIS ACT, AND TO PHASE IN THESE PROVISIONS OVER FIVE TAXABLE YEARS BEGINNING WITH THE 2001 TAXABLE YEAR.

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

SECTION    1.    This act may be cited as the "Marriage Penalty Tax Relief Act".

SECTION    2.    Section 12-6-510 of the 1976 Code, as added by Act 76 of 1995, is amended by adding at the end:

    "(C)    In the case of married taxpayers filing a joint return pursuant to Section 12-6-5000, South Carolina taxable income is allocated equally between spouses and the rates and brackets provided in subsection (A) are applied separately to each income in determining the joint tax liability."

SECTION    3.    Section 12-6-3330 of the 1976 Code is repealed.

SECTION    4.    (A)    Notwithstanding the provisions of Section 12-6-510(C) of the 1976 Code as added by this act, the reduction in state individual income tax liability allowed pursuant to that subsection for taxable years before 2005 is limited according to the following schedule:

Taxable year                                    Percentage of liability reduction                                                                             allowed

        2001                                                        twenty percent

        2002                                                        forty percent

        2003                                                        sixty percent

        2004                                                        eighty percent

    (B)    Notwithstanding the repeal of Section 12-6-3330 of the 1976 Code, the provisions of that section continue for taxable years before 2005, but the credit is allowed only according to the following schedule:

Taxable year                                    Percentage of credit allowed

        2001                                                        eighty percent

        2002                                                        sixty percent

        2003                                                        forty percent

        2004                                                        twenty percent

SECTION    5.    This act takes effect upon approval by the Governor and applies for taxable years beginning after 2000.