S*0477(Rat #0406, Act #0394 of 1998)  General Bill, By Ryberg
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 12-6-3500, SO AS TO ALLOW A CREDIT IN AN AMOUNT EQUAL TO THE TAXES PAID ON
 QUALIFIED RETIREMENT PLAN CONTRIBUTIONS MADE BY THE TAXPAYER WHILE RESIDING IN
 ANOTHER STATE WHICH DID NOT EXEMPT SUCH CONTRIBUTIONS FROM ITS STATE INCOME
 TAX AND TO PROVIDE THAT THE DEPARTMENT OF REVENUE SHALL PRESCRIBE THE METHOD
 OF CLAIMING THE CREDIT WHICH MUST BE SPREAD OVER THE LIFE EXPECTANCY OF THE
 TAXPAYER.

   03/05/97  Senate Introduced and read first time SJ-6
   03/05/97  Senate Referred to Committee on Finance SJ-6
   02/04/98  Senate Committee report: Favorable Finance SJ-16
   02/05/98  Senate Read second time SJ-22
   02/05/98  Senate Unanimous consent for third reading on next
                     legislative day SJ-22
   02/06/98  Senate Read third time and sent to House SJ-1
   02/10/98  House  Introduced and read first time HJ-8
   02/10/98  House  Referred to Committee on Ways and Means HJ-9
   04/23/98  House  Committee report: Favorable Ways and Means HJ-47
   04/29/98  House  Debate adjourned until Thursday, April 30, 1998 HJ-45
   04/30/98  House  Debate adjourned until Tuesday, May 5, 1998 HJ-14
   05/05/98  House  Debate adjourned until Wednesday, May 6, 1998 HJ-18
   05/06/98  House  Debate adjourned until Thursday, May 7, 1998 HJ-12
   05/07/98  House  Debate adjourned until Tuesday, May 12, 1998 HJ-11
   05/12/98  House  Debate adjourned until Wednesday, May 13, 1998 HJ-16
   05/13/98  House  Requests for debate-Rep(s). Robinson, Kirsh, Law,
                     Hinson, Woodrum & Vaughn HJ-17
   05/14/98  House  Debate adjourned until Wednesday, May 20, 1998 HJ-31
   05/20/98  House  Read second time HJ-156
   05/20/98  House  Roll call Yeas-97  Nays-2 HJ-157
   05/21/98  House  Read third time and enrolled HJ-23
   06/04/98         Ratified R 406
   06/09/98         Signed By Governor
   06/09/98         Effective date Upon approval by the Governor,
                     this act is effective for taxable years
                     beginning after 1996
   06/25/98         Copies available
   06/30/98         Act No. 394

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3500, SO AS TO ALLOW A CREDIT IN AN AMOUNT EQUAL TO THE TAXES PAID ON QUALIFIED RETIREMENT PLAN CONTRIBUTIONS MADE BY THE TAXPAYER WHILE RESIDING IN ANOTHER STATE WHICH DID NOT EXEMPT SUCH CONTRIBUTIONS FROM ITS STATE INCOME TAX AND TO PROVIDE THAT THE DEPARTMENT OF REVENUE SHALL PRESCRIBE THE METHOD OF CLAIMING THE CREDIT WHICH MUST BE SPREAD OVER THE LIFE EXPECTANCY OF THE TAXPAYER.

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

Credit allowed

SECTION 1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

Section 12-6-3500. If the right to receive retirement income by a taxpayer allowed the deduction pursuant to Section 12-6-1170 was earned by the taxpayer while residing in another state which imposed state income tax on the employee's contributions, a credit is allowed against the taxpayer's South Carolina income tax liability in an amount sufficient to offset the taxes paid the other state. This credit must be claimed over the taxpayer's lifetime. The department shall prescribe the amount of the annual credit based on the taxpayer's life expectancy at the time of the election made pursuant to Section 12-6-1170 and may require the documentation it determines necessary to verify the amount of income tax paid the other state on the contributions. Regardless of the tax rates applicable on the contributions in the other state, the total of the credit allowed may not exceed an amount determined by multiplying the contributions taxed in each year by the marginal South Carolina individual income tax rate for that year.

Time effective

SECTION 2. Upon approval by the Governor, this act is effective for taxable years beginning after 1996.

Approved the 9th day of June, 1998.