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COMMITTEE REPORT
April 30, 2002
H. 4337
Introduced by Reps. Campsen, Chellis, Barfield, Harrell and Easterday
S. Printed 4/11/02--H.
Read the first time August 16, 2001.
To whom was referred a Bill (H. 4337) to amend Section 12-6-3910, Code of Laws of South Carolina, 1976, relating to the due dates for quarterly payments of estimated state income tax by enacting, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, in SECTION 2, page 1, by striking /2001/ and inserting /2002/. So when amended, SECTION 2 reads:
/SECTION 2. This act takes effect upon approval by the Governor and applies for taxable years beginning after 2002./
Renumber sections to conform.
Amend totals and title to conform.
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT 1/
This bill is expected to result in a loss of general fund interest revenue in earnings on investments by the State Treasurer of an estimated $92,100 in FY 2002-03.
Explanation
This bill would create the "South Carolina Estimated Income Tax Payment Reform Act". This bill would amend Section 12-6-3910(A)(3)(b) to change the due date for the first quarterly corporate declaration from March to April. The BEA estimates that corporations will remit an estimated $139,800,000 in corporate declarations in FY 2002-03. The changing of the first quarterly corporate declaration by one month will not affect total corporate declarations for the fiscal year; however, it will delay the deposit of tax revenue with the State Treasurer by one month providing fewer state funds to be invested. This will result in a one-time loss of interest revenue to the state. The BEA forecasts the deposit of an estimated $22,100,000 of quarterly corporate declarations in March 2003. Multiplying $22,100,000 by an average interest rate of 5.0 percent currently received by the state on financial investments, and multiplying by one-twelfth, yields a loss of interest revenue in earnings on investments by the State Treasurer of an estimated $92,100 in FY 2002-03. This bill takes effect upon approval by the Governor and applies for taxable years beginning after 2001.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND SECTION 12-6-3910, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUE DATES FOR QUARTERLY PAYMENTS OF ESTIMATED STATE INCOME TAX BY ENACTING THE SOUTH CAROLINA ESTIMATED INCOME TAX PAYMENT REFORM ACT, SO AS TO CHANGE THE DUE DATE FOR THE FIRST CORPORATE INCOME TAX ESTIMATED PAYMENT FROM MARCH 15 TO APRIL 15.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. This act may be cited as the "South Carolina Estimated Income Tax Payment Reform Act".
B. Section 12-6-3910(A)(3)(b) of the 1976 Code is amended to read:
"(b) The due dates of the installment payments for calendar year corporations are:
First quarter: March April 15
Second quarter: June 15
Third quarter: September 15
Fourth quarter: December 15."
SECTION 2. This act takes effect upon approval by the Governor and applies for taxable years beginning after 2001.
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