Bills in the House and Senate have been introduced to start the process of South Carolina’s annual tax Conformity legislation.
H.5365 (Rep. G. Murrell Smith Jr.), relating to the application of the Internal Revenue Code to state income tax laws, was referred to the Committee on Ways and Means on Monday, March 9.
The Senate conformity bill, S.1152, (Senators Leatherman, Setzler and Alexander) was referred to the Committee on Finance on Tuesday, March 10. It was addressed in a subcommittee hearing on Thursday morning, where it was favorably approved. SCACPA Incoming Chair Kenneth L. Newhouse, CPA, USTCP, CITP, CGMA, was on hand to provide testimony to the subcommittee as needed. The bill now goes to the full Senate Finance Committee for approval.
Now that legislative leaders are hearing about the complexity involved in this year’s drive toward tax conformity, the SCACPA Advocacy Team is eager to work with them and their staff so that they can hear about a path forward. SCACPA Advocacy team members have been in touch with legislators through this session, and it is apparent there is a commitment by both bodies to pass a Conformity bill.
The South Carolina Revenue and Fiscal Affairs Office has needed additional time to research conformity’s fiscal impact to the state. Coming into this week, the House Ways and Means Committee has yet to hold a subcommittee meeting on any legislation, as they have been working exclusively on the state budget. Likewise, the Senate had been debating the education reform bill since the first week of session, and it finally passed after eight weeks of debate.
To further complicate this legislative session, the issue of the potential sale of state-owned utility Santee Cooper has taken up a significant amount of time in both bodies as they debate its future.
Please continue to watch the SCACPA blog and social media for updates on Conformity and other Advocacy issues through the Sine Die adjournment scheduled for May 14 via the SCACPA Blog and our social media outlets.