Current Status Bill Number:4036 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19950412 Primary Sponsor:Boan All Sponsors:Boan Drafted Document Number:jic\5771htc.95 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Income tax allocation and sales factor
Body Date Action Description Com Leg Involved
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House 19950412 Introduced, read first time, 30 HWM
referred to Committee
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TO AMEND SECTION 12-7-1140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ALLOCATION OF INCOME FOR PURPOSES OF THE STATE INCOME TAX FOR MULTISTATE BUSINESSES ENGAGED IN MANUFACTURING, OR ANY FORM OF COLLECTING, BUYING, ASSEMBLING, OR PROCESSING GOODS OR MATERIALS IN THIS STATE, OR SELLING, DISTRIBUTING, OR DEALING IN TANGIBLE PERSONAL PROPERTY IN THIS STATE, SO AS TO PROVIDE THAT FOR TAX YEARS BEGINNING AFTER 1994, THE SALES FACTOR MUST BE USED TWICE IN COMPUTING NET INCOME OF THE BUSINESS SUBJECT TO INCOME TAX IN THIS STATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-7-1140 of the 1976 Code is amended to read:
"Section 12-7-1140. Net income of the above classes having been separately allocated, a taxpayer whose principal business in this State is (a) manufacturing or any form of collecting, buying, assembling, or processing goods and materials within this State, or (b) selling, distributing, or dealing in tangible personal property within this State, shall make returns and pay annually an income tax upon a proportion of its remaining net income computed on the basis of the arithmetical average of the three ratios stated in Sections 12-7-1150, 12-74-1160, and to 12-7-1170, but including the sales factor provided in Section 12-7-1170 twice."
SECTION 2. Upon approval by the Governor, this act is effective for taxable years beginning after 1994.