Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
March 12, 2002
H. 4695
Introduced by Reps. Chellis, Robinson, Cotty, Simrill, Altman, Barrett, Battle, Breeland, G. Brown, Campsen, Cato, Dantzler, Easterday, Emory, Freeman, Frye, Harrison, Harvin, Haskins, J. Hines, Hinson, Hosey, Kirsh, Law, Leach, Limehouse, Lloyd, Lucas, Meacham-Richardson, Miller, J.M. Neal, Neilson, Perry, Phillips, Rice, Riser, Sandifer, Sharpe, D.C. Smith, J.R. Smith, Stille, Stuart, Talley, Vaughn, Walker, Webb, Whipper, A. Young and White
S. Printed 3/12/02--S.
Read the first time February 19, 2002.
To whom was referred a Bill (H. 4695) to amend Section 12-6-40, as amended, Code of Laws of South Carolina, 1976, relating to definitions for purposes of the South Carolina Income Tax Act, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, JR. for Committee.
REVENUE IMPACT1/
This bill is expected to reduce general fund estate tax revenue by an estimated $15,500,000 in FY2002-03.
Explanation
This bill would conform South Carolina's tax code to the federal tax code, which is done each year. By doing so, this bill conforms the estate tax law of South Carolina to the changes in the federal estate tax law adopted by Congress in the "Economic Growth and Tax Relief Act of 2001". South Carolina is one of 33 states to "piggy-back" the federal estate tax calculation for purposes of determining estate tax liability. Specifically, South Carolina uses the federal credit for state death tax as the amount owed to South Carolina for estate taxes. Effective for CY2002, federal law reduces the credit for state death tax that is used as a credit to the federal estate tax by 25 percent. As a result of this change, individuals will pay 25 percent less estate tax to South Carolina than would otherwise be collected under current law. Anticipating the effects of this change to federal law and South Carolina's conformity to it, the BEA, at its November 2001 meeting, voted to reduce the FY2002-03 forecast of estimated estate tax revenue by $15.5 million. Conforming the estate tax law of South Carolina to federal law is expected to reduce general fund estate tax revenue by an estimated $15.5 million in FY2002-03.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND SECTION 12-6-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO UPDATE THE REFERENCE DATE WHEREBY THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-40(A)(1) of the 1976 Code, as last amended by Section 6, Act 89 of 2001, is further amended to read:
"(1) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 2000 2001, and includes the effective date provisions contained in it."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on Thursday, June 25, 2009 at 2:22 P.M.