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Indicates Matter Stricken
Indicates New Matter
Sponsors: Senator Martin
Document Path: l:\s-res\srm\009hogs.sp.srm.docx
Introduced in the Senate on March 13, 2019
Introduced in the House on April 2, 2019
Currently residing in the House Committee on Ways and Means
Summary: Nonrefundable tax credit for donated deer for charity
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 3/13/2019 Senate Introduced and read first time (Senate Journal-page 4) 3/13/2019 Senate Referred to Committee on Finance (Senate Journal-page 4) 3/21/2019 Senate Committee report: Favorable Finance (Senate Journal-page 18) 3/27/2019 Senate Read second time (Senate Journal-page 64) 3/27/2019 Senate Roll call Ayes-39 Nays-0 (Senate Journal-page 64) 3/28/2019 Senate Read third time and sent to House (Senate Journal-page 14) 4/2/2019 House Introduced and read first time (House Journal-page 4) 4/2/2019 House Referred to Committee on Ways and Means (House Journal-page 4)
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VERSIONS OF THIS BILL
Indicates Matter Stricken
Indicates New Matter
March 21, 2019
S. Printed 3/21/19--S.
Read the first time March 13, 2019.
To whom was referred a Bill (S. 647) to amend Section 12-6-3750(a) of the 1976 Code, relating to a nonrefundable tax credit for processing donated deer for charitable distribution, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, SR. for Committee.
Explanation of Fiscal Impact
Introduced on March 13, 2019
This bill is not expected to impact expenditures for DOR. We anticipate that DOR can implement the required changes to forms for the revised tax credit during the annual updates to income tax forms.
This bill adds wild hogs to the nonrefundable tax credit for processing deer for donation to a charitable organization. Section 12-6-3750 provides a credit for a meat packer, butcher, or processing plant licensed or permitted by this State or the United States Department of Agriculture that, during the tax year for which the credit is claimed, had a valid contract with any nonprofit organization to process deer for donation to any charitable organization engaged in distributing food to the needy. No portion of the donated animal may be used by a commercial enterprise. The amount of the credit is $75 for each carcass processed and donated. The credit must be claimed in the year earned and may not be carried to any other taxable year. The bill adds wild hogs to this section. The act takes effect upon approval by the Governor, and we assume that taxpayers will be able to claim the tax credit for tax year 2019.
Current hunting requirements for wild hogs do not allow the Department of Natural Resources (DNR) to determine the number of wild hogs harvested annually. For 2018, DNR reports that 897 wild hogs were harvested and trapped on Wildlife Management Areas. However, this figure does not include all wild hogs harvested.
S.C. Hunters for the Hungry, a 501(c)(3) charity, provided data on the processing of deer and hogs. The organization secured a total 50,660 lbs of venison and 17,975 lbs of wild hog meat last year. Based upon these figures, wild hogs accounted for approximately 26.2 percent. DOR's FY 2015-16 annual report indicates that 18 taxpayers claimed $9,450 in tax credits for the current venison for charity credit. Multiplying 26.2 percent times the reported $9,450 in venison tax credits yields an estimate of $2,475 in additional tax credits for wild hogs.
This analysis may under or overstate the potential tax credits due to data limitations. The tax credit is per carcass, and this estimate does not account for differences in weight or yield between deer and wild hogs. Further, we are unable to determine any potential increase in processing and donation of wild hogs that may occur as a result of providing the tax credit. Given the available data and limitations, we estimate that the bill will reduce general fund income tax revenue by approximately $2,475 per year beginning in FY 2019-20.
Frank A. Rainwater, Executive Director
Revenue and Fiscal Affairs Office
TO AMEND SECTION 12-6-3750(A) OF THE 1976 CODE, RELATING TO A NONREFUNDABLE TAX CREDIT FOR PROCESSING DONATED DEER FOR CHARITABLE DISTRIBUTION, TO INCLUDE WILD HOGS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-3750(A) of the 1976 Code is amended to read:
"Section 12-6-3750. (A) There is allowed a nonrefundable credit against taxes imposed by this chapter for a meat packer, butcher, or processing plant licensed or permitted by this State or the United States Department of Agriculture that, during the tax year for which the credit is claimed, had a valid contract with any nonprofit organization to process deer or wild hogs for donation to any charitable organization engaged in distributing food to the needy. No portion of the donated deer or wild hog may be used by a commercial enterprise. The amount of the credit is seventy-five dollars for each carcass processed and donated. The credit must be claimed in the year earned and may not be carried to any other taxable year."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on April 3, 2019 at 8:36 AM