Current Status Bill Number:
477Ratification Number: 406Act Number: 394Type of Legislation: General Bill GBIntroducing Body: SenateIntroduced Date: 19970305Primary Sponsor: RybergAll Sponsors: RybergDrafted Document Number: jic\5782htc.97Date Bill Passed both Bodies: 19980521Governor's Action: SDate of Governor's Action: 19980609Subject: Income tax credit, retirement plan contributions made by taxpayer living in another state, Taxation, Retirement Systems
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ ------ 19980630 Act No. A394 ------ 19980609 Signed by Governor ------ 19980604 Ratified R406 House 19980521 Read third time, enrolled for ratification House 19980520 Read second time House 19980514 Debate adjourned until Wednesday, 19980520 House 19980513 Request for debate by Representative Robinson Kirsh Law Hinson Woodrum Vaughn House 19980512 Debate adjourned until Wednesday, 19980513 House 19980507 Debate adjourned until Tuesday, 19980512 House 19980506 Debate adjourned until Thursday, 19980507 House 19980505 Debate adjourned until Wednesday, 19980506 House 19980430 Debate adjourned until Tuesday, 19980505 House 19980429 Debate adjourned until Thursday, 19980430 House 19980423 Committee report: Favorable 30 HWM House 19980210 Introduced, read first time, 30 HWM referred to Committee Senate 19980206 Read third time, sent to House Senate 19980205 Read second time, unanimous consent for third reading on Friday, 19980206 Senate 19980204 Committee report: Favorable 06 SF Senate 19970305 Introduced, read first time, 06 SF referred to CommitteeView additional legislative information at the LPITS web site.
(A394, R406, S477)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3500, SO AS TO ALLOW A CREDIT IN AN AMOUNT EQUAL TO THE TAXES PAID ON QUALIFIED RETIREMENT PLAN CONTRIBUTIONS MADE BY THE TAXPAYER WHILE RESIDING IN ANOTHER STATE WHICH DID NOT EXEMPT SUCH CONTRIBUTIONS FROM ITS STATE INCOME TAX AND TO PROVIDE THAT THE DEPARTMENT OF REVENUE SHALL PRESCRIBE THE METHOD OF CLAIMING THE CREDIT WHICH MUST BE SPREAD OVER THE LIFE EXPECTANCY OF THE TAXPAYER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
Section 12-6-3500. If the right to receive retirement income by a taxpayer allowed the deduction pursuant to Section 12-6-1170 was earned by the taxpayer while residing in another state which imposed state income tax on the employee's contributions, a credit is allowed against the taxpayer's South Carolina income tax liability in an amount sufficient to offset the taxes paid the other state. This credit must be claimed over the taxpayer's lifetime. The department shall prescribe the amount of the annual credit based on the taxpayer's life expectancy at the time of the election made pursuant to Section 12-6-1170 and may require the documentation it determines necessary to verify the amount of income tax paid the other state on the contributions. Regardless of the tax rates applicable on the contributions in the other state, the total of the credit allowed may not exceed an amount determined by multiplying the contributions taxed in each year by the marginal South Carolina individual income tax rate for that year.
SECTION 2. Upon approval by the Governor, this act is effective for taxable years beginning after 1996.
Approved the 9th day of June, 1998.