The full Senate Finance Committee gave a favorable report on H.3985 (Reps. Lucas, G. M. Smith and Stavrinakis), the annual tax Conformity legislation, on Tuesday, March 12.
UPDATE: The Conformity bill received a second reading on the floor of the full Senate on Thursday, March 14. The bill is expected to have its third reading next week, then would need the procedural formality of being ratified. The movement of the Conformity bill has drawn the attention of the Governor’s office that it could be arriving for signature soon.
The bill updates the reference to the Internal Revenue Code to state income tax laws and provides that if the IRS Code sections adopted by the state are extended, then these sections are also extended for South Carolina income tax purposes.
The Conformity bill has been moving along with little resistance since it was introduced in the House on Feb. 14. Once in the Senate, it was also approved by the Senate Finance Sales and Income Tax Subcommittee.
Sen. Sean Bennett (R-Dorchester), co-chair of the Senate Finance Taxation System Review and Reform Subcommittee, took the opportunity Tuesday to remind Senate members about the committee and that it will meet again soon. The work of the tax review committee is not expected to hold up the Conformity bill.