South Carolina General Assembly
111th Session, 1995-1996

Bill 36


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       36
Type of Legislation:               General Bill GB
Introducing Body:                  Senate
Introduced Date:                   19950110
Primary Sponsor:                   Passailaigue 
All Sponsors:                      Passailaigue, Rose, Giese,
                                   Courson, Wilson, Reese
Drafted Document Number:           RES9409.ELP
Residing Body:                     Senate
Current Committee:                 Finance Committee 06 SF
Subject:                           Income tax exemption for
                                   aging



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

Senate  19950110  Introduced, read first time,             06 SF
                  referred to Committee
Senate  19940919  Prefiled, referred to Committee          06 SF

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 ARTICLE 3, CHAPTER 7, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-7-238 SO AS TO EXEMPT FROM STATE INCOME TAX RESIDENT INDIVIDUALS WHO HAVE ATTAINED THE AGE OF SIXTY-FIVE YEARS, TO PHASE IN THE EXEMPTION OVER FIVE YEARS, TO PROVIDE ALLOCATION OF INCOME BETWEEN CERTAIN SPOUSES FOR PURPOSES OF THE EXEMPTION, AND TO PROVIDE THAT THE SOUTH CAROLINA TAX COMMISSION SHALL PRESCRIBE THE METHOD OF ALLOCATION.

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

SECTION 1. Article 3, Chapter 7, Title 12 of the 1976 Code is amended by adding:

"Section 12-7-238. The South Carolina taxable income of a resident individual who has attained the age of sixty-five years is exempt from the tax imposed pursuant to Section 12-7-210 beginning with the taxable year in which he attains the age of sixty-five years as follows:

(1) for taxable years beginning in 1995, twenty percent of taxable income is exempt;

(2) for taxable years beginning in 1996, forty percent of taxable income is exempt;

(3) for taxable years beginning in 1997, sixty percent of taxable income is exempt;

(4) for taxable years beginning in 1998, eighty percent of the taxable income is exempt; and

(5) for taxable years beginning after 1999, one hundred percent of taxable income is exempt. The South Carolina taxable income of a married individual eligible for this exemption who files a joint federal income tax return with a spouse who is not eligible for the exemption must be allocated between the spouses and only that South Carolina taxable income attributable to the eligible spouse is eligible for the exemption. The commission shall prescribe the method of allocation."

SECTION 2. Upon the approval by the Governor, this act is effective for taxable years beginning after 1994.

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