South Carolina General Assembly
115th Session, 2003-2004

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Bill 5085

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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

COMMITTEE REPORT

May 19, 2004

H. 5085

Introduced by Reps. Cotty, Bales, Battle, Chellis, Frye, Herbkersman, Littlejohn, G.R. Smith and Snow

S. Printed 5/19/04--S.

Read the first time April 28, 2004.

            

THE COMMITTEE ON FINANCE

To whom was referred a Bill (H. 5085) to amend Section 12-6-1140, as amended, Code of Laws of South Carolina, 1976, relating to deductions from South Carolina taxable income of individuals for purposes, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

HUGH K. LEATHERMAN, SR. for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT 1/

This bill would reduce general fund individual income tax collections by an estimated $4,200 in FY 2004-05.

Explanation

This bill would allow an individual to claim an income tax deduction for unreimbursed travel, lodging, and lost wage expenses in the taxable year in which the taxpayer donates one or more organs to another human being for transplantation. Data from the Organ Procurement and Transplantation Network suggest that an average of 40 South Carolina living donors donate organs annually. We anticipate that these 40 donors will have $1,500 of unreimbursed expenses eligible for the deduction in 2004. Multiplying this $60,000 times the highest marginal rate of 7% results in a reduction of general fund individual income tax collections by an estimated $4,200 in FY 2004-05.

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.

A BILL

TO AMEND SECTION 12-6-1140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME OF INDIVIDUALS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO ALLOW A RESIDENT FULL-YEAR INDIVIDUAL TAXPAYER TO DEDUCT FROM SOUTH CAROLINA TAXABLE INCOME AN AMOUNT NOT TO EXCEED TEN THOUSAND DOLLARS OF UNREIMBURSED EXPENSES INCURRED BY THE TAXPAYER IN THE DONATION, WHILE LIVING, OF ONE OR MORE OF THE TAXPAYER'S ORGANS TO ANOTHER HUMAN BEING FOR HUMAN ORGAN TRANSPLANTATION AND TO PROVIDE DEFINITIONS AND THOSE EXPENSES THAT QUALIFY FOR THE DEDUCTION.

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

SECTION    1.    Section 12-6-1140 of the 1976 Code, as last amended by Act 363 of 2002, is further amended by adding an appropriately numbered item at the end to read:

"( )(a)    An amount not to exceed ten thousand dollars of expenses incurred by a resident full-year individual taxpayer in the donation, while living, of one or more of the taxpayer's organs to another human being for human organ transplantation.

(b)    An individual may claim this deduction only once and the deduction is allowed for the taxable year in which the human organ transplantation occurs. Expenses eligible for this deduction are the expenses, to the extent not reimbursed, incurred by the taxpayer donor for travel expenses, lodging expenses, and lost wages related to the taxpayer's organ donation.

(c)    For purposes of this item, 'human organ' means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow."

SECTION    2.    This act takes effect upon approval by the Governor and applies for taxable years beginning after 2003.

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