Current Status Bill Number:
4435Type of Legislation: General Bill GBIntroducing Body: HouseIntroduced Date: 19980120Primary Sponsor: CampsenAll Sponsors: Campsen, F. Smith, Bailey, Quinn, Meacham, Cromer, Beck, Wilkes, Clyburn, Woodrum, Young, Barrett, T. Brown, Hamilton, Limehouse, Robinson, Easterday, Vaughn, Walker, Littlejohn, Sandifer, Davenport, Haskins, Tripp, Leach, Bowers, Bauer, Lanford and PhillipsDrafted Document Number: jic\5122htc.98Residing Body: SenateCurrent Committee: Finance Committee 06 SFSubject: Income tax, reference date updated, Internal Revenue Code of 1986, corporate liquidations, adoption, Taxation
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ Senate 19980421 Introduced, read first time, 06 SF referred to Committee House 19980416 Read third time, sent to Senate House 19980415 Read second time House 19980408 Committee report: Favorable 30 HWM House 19980120 Introduced, read first time, 30 HWM referred to CommitteeView additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
April 8, 1998
Introduced by Reps. Campsen, F. Smith, Bailey, Quinn, Meacham, Cromer, Beck, Wilkes, Clyburn, Woodrum, Young, Barrett, T. Brown, Hamilton, Limehouse, Robinson, Easterday, Vaughn, Walker, Littlejohn, Sandifer, Davenport, Haskins, Tripp, Leach, Bowers, Bauer, Lanford and Phillips
S. Printed 4/8/98--H.
Read the first time January 20, 1998.
To whom was referred a Bill (H. 4435), to amend Section 12-6-40, as amended, Code of Laws of South Carolina, 1976, relating to the reference date whereby this State adopts various provisions of the Internal Revenue Code, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass:
HENRY E. BROWN, JR., for Committee.
This bill will not cause an adjustment to the BEA's 11-10-97 revenue estimate for FY1998-99, due to the annual reference date change. This bill would reduce general fund corporate income tax revenue an estimated $800,000 per fiscal year, beginning in FY 1998-99 due to conforming to the December 31, 1985 Internal Revenue Code relating to corporate liquidations.
The Department of Revenue has advised the BEA that the annual reference date change will cause an estimated revenue reduction of $2.3 million in FY1998-99. The BEA included this revenue reduction in its 11-10-97 estimate of revenue for FY1998-99. No additional adjustment to that revenue estimate is required. The corporate liquidation estimate of $800,000 is based on 1987-1991 data provided by the Joint Committee on Taxation detailing the revenue effects of the 1986 Tax Reform Act on U.S. taxpayers. These U.S. estimates have been adjusted to account for S.C. corporations only. The 1991 estimate was increased by the growth in S.C. corporate income tax revenue from FY 1991-92 to the estimated amount for FY 1998-99.
William C. Gillespie
Board of Economic Advisors
TO AMEND SECTION 12-6-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REFERENCE DATE WHEREBY THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE AND OTHER MATTERS RELATING TO FEDERAL INCOME CONFORMITY, SO AS TO UPDATE THE REFERENCE DATE AND ALLOW A TAXPAYER TO ELECT A 1985 REFERENCE DATE WITH RESPECT TO CERTAIN CORPORATE LIQUIDATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-40(A) of the 1976 Code, as last amended by Section 10A, Part II, Act 155 of 1997, is further amended to read:
"(A) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1996 1997, and includes the effective date provisions contained therein. However, with respect to Subpart B, Part II, Subchapter C of Chapter 1 thereof, relating to corporate liquidations, a taxpayer may elect with respect to that subpart that 'Internal Revenue Code' means the Internal Revenue Code of 1954, as amended through December 31, 1985."
SECTION 2. This act takes effect upon approval by the Governor. The optional reference date allowed pursuant to this act is applicable for taxable years beginning after 1997.