South Carolina General Assembly
110th Session, 1993-1994

Bill 3906


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Introducing Body:               House
Bill Number:                    3906
Primary Sponsor:                Kirsh
Committee Number:               30
Type of Legislation:            GB
Subject:                        Income tax deductions,
                                retirement
Residing Body:                  House
Current Committee:              Ways and Means
Computer Document Number:       JIC/5745HC.93
Introduced Date:                19930413
Last History Body:              House
Last History Date:              19930413
Last History Type:              Introduced, read first time,
                                referred to Committee
Scope of Legislation:           Statewide
All Sponsors:                   Kirsh
Type of Legislation:            General Bill



History


Bill  Body    Date          Action Description              CMN  Leg Involved
____  ______  ____________  ______________________________  ___  ____________

3906  House   19930413      Introduced, read first time,    30
                            referred to Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

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 PROVIDE THAT THE RETIREMENT INCOME DEDUCTION IS THE FIRST THREE THOUSAND DOLLARS OF RETIREMENT INCOME UNTIL AGE SIXTY-FIVE, WHEN THE DEDUCTION IS THE FIRST TEN THOUSAND DOLLARS OF RETIREMENT INCOME.

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

SECTION 1. Section 12-7-435(k) of the 1976 Code, as added by Act 171 of 1991, is amended to read:

"(k) (1) Beginning with the taxable year in which a taxpayer first receives retirement income, the taxpayer may:

(A) deduct his retirement income in an amount not to exceed three thousand dollars annually; or

(B) elect irrevocably to defer claiming a retirement income deduction until the taxable year the taxpayer attains the age of sixty-five years, at which time the taxpayer may deduct his retirement income in an amount not to exceed ten thousand dollars annually.

(2) A taxpayer who does not claim a retirement income deduction before the taxable year in which he attains the age of sixty-five years is considered to have made the election allowed pursuant to subitem (1)(B) of this item.

(3) A taxpayer who has attained the age of sixty-five years before 1994 is considered to have made the election allowed pursuant to subitem (1)(B) of this item.

(4) A taxpayer who in 1993 has not yet attained the age of sixty-five years and who receives retirement income in 1993 may:

(A) deduct his retirement income in an amount not to exceed three thousand dollars annually; or

(B) elect irrevocably to defer claiming a retirement income deduction until the taxable year the taxpayer attains the age of sixty-five years, at which time the taxpayer may deduct his retirement income in an amount not to exceed ten thousand dollars annually.

(5) (2) 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.

(6) (3) For purposes of this item, `retirement income' means the total of all otherwise taxable income not subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from qualified retirement plans which include those plans defined in Internal Revenue Code Sections 401, 403, 408, and 457, and all public employee retirement plans of the federal, state, and local governments, including military retirement for persons with twenty or more years active military duty.

(7) (4) The commission shall prescribe the method of making the election provided in this item and may require the taxpayer to provide information necessary for proper administration of this election.

(8) (5) (A) For a taxpayer born in the years 1943 through 1959, where subitems subitem (1), (2), and (4) of this item refer refers to age sixty-five, the applicable age is sixty-six.

(B) For a taxpayer born after 1959, where subitems subitem (1), (2), and (4) of this item refer refers to age sixty-five, the applicable age is sixty-seven."

SECTION 2. Upon approval by the Governor, this act is effective for taxable years beginning after 1992.

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