The South Carolina House Tax Policy Review Committee voted to adopt a plan to lower the state’s income tax from 7% to 4.5% over a five-year period.
The plan would be funded by state growth and includes a trigger mechanism in the event of decreasing tax revenues to the state.
Personal exemptions would be lowered from $4,150 to $2,370. The plan retains a few exemptions and would allow for bonus depreciation to be deducted by individual taxpayers but not by South Carolina corporate taxpayers.
Once this plan is drafted into bill form and introduced in the House, it will be assigned to the Ways and Means Committee, where the Tax Subcommittee will use it as a working template.
This 14-member ad hoc committee was created in 2016 by Speaker of the House Jay Lucas and is responsible for reviewing South Carolina’s current tax code and submitting suggestions for reform to the Speaker. Committee Chairman Tommy Pope (R-York) had told the committee his goal was to find consensus among the members to send a working template to the House Ways and Means Tax Subcommittee for continued debate.
The SC House Tax Policy Review Committee’s meeting agenda and video archives dating to August 2016 can be found at https://www.scstatehouse.gov/CommitteeInfo/HouseTaxPolicyReviewCommittee/SCHouseTaxPolicyReviewCommittee.php.