South Carolina General Assembly
110th Session, 1993-1994

Bill 4765


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Introducing Body:               House
Bill Number:                    4765
Primary Sponsor:                Richardson
Committee Number:               30
Type of Legislation:            GB
Subject:                        Income tax deduction,
                                retirement income exclusion
Residing Body:                  House
Current Committee:              Ways and Means
Computer Document Number:       JIC/5467HC.94
Introduced Date:                19940217
Last History Body:              House
Last History Date:              19940217
Last History Type:              Introduced, read first time,
                                referred to Committee
Scope of Legislation:           Statewide
All Sponsors:                   Richardson
                                Meacham
                                A. Young
                                Kelley
                                Barber
                                J. Bailey
                                Corning
                                Simrill
                                Keegan
                                R. Young
                                Keyserling
                                Harrell
                                Witherspoon
                                Cato
                                Riser
                                Gonzales
Type of Legislation:            General Bill



History


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

4765  House   19940217      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 INDIVIDUAL INCOME TAX, SO AS TO ELIMINATE THE RETIREMENT INCOME EXCLUSION ELECTION AND PROVIDE FOR THE DEDUCTION OF ALL RETIREMENT INCOME BEGINNING FOR THE TAXABLE YEAR THE TAXPAYER ATTAINS AGE SIXTY-FIVE.

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

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

(1) Retirement income received by a resident individual taxpayer who before or during the applicable taxable year has attained age sixty-five. The deduction allowed by this item extends to a deceased taxpayer's surviving spouse, regardless of age, but only for retirement income attributable to the deceased taxpayer.

(2) For purposes of this item `retirement income' means the total of all otherwise taxable income received in a taxable year by a taxpayer who has attained age sixty five or the taxpayer's surviving spouse 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."

SECTION 2. Upon approval by the Governor, this act is effective for taxable years beginning after 1993.

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