With the hours ticking away before the end of the legislative session, the S.C. Senate introduced a bill for Tax Conformity on Thursday, May 10.
The “South Carolina Taxpayer Protection and Relief Act” (S. 1258), sponsored by Senate Finance Chair Hugh Leatherman (R-Florence), was sent to the Senate Committee on Finance. It can be read here.
In addition to conforming to the Federal Tax Code through Feb. 9, 2018, the bill offers a South Carolina standard deduction for taxpayers who claim the standard deduction on their federal return in amounts of $7,570 for those single or married filing separately, $11,355 for head of household and $15,140 if married filing jointly or qualifying widow(er).
Among the bill’s proclamations:
“The General Assembly finds that it must take steps to preserve, restore, and/or increase the levels and amounts of certain tax deductions and exemptions historically enjoyed by everyday ordinary South Carolina taxpayers, while preserving the state’s current tax benefits for taxpayers with children under the age of six, seniors, and military retirees, taxpayers with capital gains income as well as businesses with pass-through income, thereby helping to preserve South Carolina’s simple, low, and competitive state individual income tax structure and burden well into the future.”
It also declares it is time “to modernize the state’s individual income tax brackets by adjusting the brackets for full inflation annually, thereby ensuring that South Carolina’s taxpayers keep more of their hard-earned dollars each year, and do so at a faster pace, and by immediately phasing-in, rather than delaying, one new and one expanded state income tax credit each designed to benefit hard-working South Carolinians.”
Last week, the S.C. House sent a tax conformity bill H. 5341 to the Senate that included a $1,525 personal exemption.
This is a developing story, please check back to scacpa.org for updates.