South Carolina General Assembly
103rd Session, 1979-1980

Bill 719

                    Current Status

Bill Number:               719
Ratification Number:       375
Act Number                 344
Introducing Body:          Senate
Subject:                   Taxation of generation skipping
                           transfers
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A344, R375, S719)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-15-420 SO AS TO PROVIDE FOR THE TAXATION OF GENERATION SKIPPING TRANSFERS.

Be it enacted by the General Assembly of the State of South Carolina:

Taxation of generation skipping transfers

Section 1. The 1976 Code is amended by adding:

"Section 12-15-420. (a) A tax, in addition to any other taxes imposed by this chapter, is imposed upon every generation skipping transfer, subject to the tax imposed by Chapter 13 of Subtitle B of the Internal Revenue Code of 1954, as amended, in an amount equal to the amount allowable as credit for state inheritance taxes under Section 2602 of the Internal Revenue Code (1) when the original transferor was a resident of this State at the date of the original transfer, to the extent such credit exceeds the aggregate amount of all taxes on the same transfer actually paid to the several states of the United States, other than this State; (2) when the original transferor is not a resident of this State but the transfer includes real or personal property with a situs in this State, reduced by an amount which bears the same ratio to the total state inheritance tax credit allowable for federal generation skipping transfer tax purposes as the value of the transferred property taxable by all other states bears to the value of the gross generation skipping transfer for federal generation skipping transfer tax purposes.

(b) Every person required by the Internal Revenue Code to file a return reporting a generation skipping transfer shall file a duplicate copy of the federal return with the Commission on or before the last day prescribed for filing the return.

(c) The tax imposed shall be due upon a taxable distribution or taxable termination as determined under the provisions of the federal generation skipping transfer tax. The person liable for payment of such federal tax shall also be liable for the tax imposed and it shall be paid to the Commission on or before the last day allowed for filing the return with the Commission.

(d) If, after the filing of the duplicate federal return with the Commission, the federal government shall thereafter increase or decrease the amount of the federal generation skipping transfer tax actually due, within thirty days of the increase or decrease, an amended return shall be filed with the Commission reflecting all changes made in the original return and the amount of increase or decrease in the federal generation skipping transfer tax. Based thereon and upon such evidence as it may otherwise acquire, the Commission shall reassess the tax imposed and if it shall determine that there remains due additional tax it shall thereafter issue a notice of proposed assessment pursuant to Section 12-15-830. If the notice of the federal change in tax due is not furnished any additional tax which may be owing may be assessed at any time."

Time effective

Section 2. This act shall take effect upon approval by the Governor.