Current Status Introducing Body:
SenateBill Number: 41Primary Sponsor: PassailaigueCommittee Number: 06Type of Legislation: GBSubject: Income tax exemption for agingResiding Body: SenateCurrent Committee: FinanceComputer Document Number: S.41Introduced Date: 19930112Last History Body: SenateLast History Date: 19930112Last History Type: Introduced, read first time, referred to CommitteeScope of Legislation: StatewideAll Sponsors: Passailaigue RoseType of Legislation: General Bill
Bill Body Date Action Description CMN Leg Involved ____ ______ ____________ ______________________________ ___ ____________ 41 Senate 19930112 Introduced, read first time, 06 referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND ARTICLE 3, CHAPTER 7, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-7-238 SO AS TO EXEMPT FROM STATE INCOME TAX RESIDENT INDIVIDUALS WHO HAVE ATTAINED THE AGE OF SIXTY-FIVE YEARS, TO PHASE IN THE EXEMPTION OVER FIVE YEARS, TO PROVIDE ALLOCATION OF INCOME BETWEEN CERTAIN SPOUSES FOR PURPOSES OF THE EXEMPTION, AND TO PROVIDE THAT THE SOUTH CAROLINA TAX COMMISSION SHALL PRESCRIBE THE METHOD OF ALLOCATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 3, Chapter 7, Title 12 of the 1976 Code is amended by adding:
"Section 12-7-238. The South Carolina taxable income of a resident individual who has attained the age of sixty-five years is exempt from the tax imposed pursuant to Section 12-7-210 beginning with the taxable year in which he attains the age of sixty-five years as follows:
(1) for taxable years beginning in 1994, twenty percent of taxable income is exempt;
(2) for taxable years beginning in 1995, forty percent of taxable income is exempt;
(3) for taxable years beginning in 1996, sixty percent of taxable income is exempt;
(4) for taxable years beginning in 1997, eighty percent of the taxable income is exempt; and
(5) for taxable years beginning after 1998, one hundred percent of taxable income is exempt. The South Carolina taxable income of a married individual eligible for this exemption who files a joint federal income tax return with a spouse who is not eligible for the exemption must be allocated between the spouses and only that South Carolina taxable income attributable to the eligible spouse is eligible for the exemption. The commission shall prescribe the method of allocation."
SECTION 2. Upon the approval by the Governor, this act is effective for taxable years beginning after 1993.