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COMMITTEE REPORT
April 13, 2005
H. 3580
Introduced by Reps. Scott, Hosey, Vick, Clyburn, J. Hines, Govan, McCraw, Clark, Anthony, Bales, Branham, Breeland, J. Brown, R. Brown, Ceips, Chalk, Cooper, Davenport, Edge, Emory, Frye, Hamilton, Hardwick, Harrison, Herbkersman, M. Hines, Jefferson, Littlejohn, Mack, Martin, Moody-Lawrence, Ott, Owens, Parks, Phillips, Rhoad, Rice, Simrill, D.C. Smith, G.R. Smith, J.E. Smith, Taylor, Townsend, Umphlett and Witherspoon
S. Printed 4/13/05--H.
Read the first time February 16, 2005.
To whom was referred a Bill (H. 3580) to amend Section 12-6-1140, as amended, Code of Laws of South Carolina, 1976, relating to deductions allowed from South Carolina taxable income of an individual, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT 1/
This bill is expected to reduce general fund individual income tax revenue by an estimated $325,500 in FY2005-06.
Explanation
This bill would amend Section 12-6-1140(10) by allowing an individual serving as a "member of the State Guard" a $3,000 individual income tax deduction. Each member of the SCSG is required to attend classes, schools, and drills one weekend every month. This bill would waive the requirement of satisfying a minimum number of points pursuant to Section 23-9-190 to qualify for the tax deduction by completing a minimum of sixteen hours of training or drill each month and having the member's commanding officer certify in writing to the member that the member met these hourly requirements. This certification would be filed with the SCSG member's tax return in order for the tax deduction to be claimed. According to the Public Information Officer with the SCSG, there are currently 1,550 members in the SCSG. Multiplying 1,550 SCSG members by a $3,000 income tax deduction and applying an average tax rate of 7 percent would reduce general fund individual income tax revenue by an estimated $325,500 in FY2005-06. This individual income tax deduction would apply to tax years beginning after 2004.
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 by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO AMEND SECTION 12-6-1140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS ALLOWED FROM SOUTH CAROLINA TAXABLE INCOME OF AN INDIVIDUAL FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO ALLOW A MAXIMUM THREE THOUSAND DOLLARS A YEAR DEDUCTION FOR MEMBERS OF THE STATE GUARD AND TO PROVIDE THE ELIGIBILITY REQUIREMENTS FOR THIS DEDUCTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-1140(10) of the 1976 Code, as last amended by Act 278 of 2004, is further amended to read:
"(10) a deduction calculated as provided in this item for a volunteer firefighter, rescue squad member, volunteer member of a Hazardous Materials (HAZMAT) Response Team, reserve police officer, or Department of Natural Resources deputy enforcement officer, or member of the State Guard not otherwise eligible for this exemption. An individual may receive only one deduction pursuant to this item. The Board of Economic Advisors annually shall estimate a maximum deduction that may be permitted under this section for a taxable year based on an individual income tax revenue loss of three million one hundred thousand dollars attributable to this deduction and shall certify that maximum deduction to the Department of Revenue and for the applicable taxable year, the maximum deduction amount must not exceed the lesser of the certified estimate or three thousand dollars. Only a volunteer earning a minimum number of points pursuant to Section 23-9-190 is eligible for this deduction. In the case of a reserve police officer and in lieu of minimum points determining eligibility, this deduction is allowed only if the reserve police officer's coordinator-supervisor certifies in writing to the officer that the officer met all requirements of Chapter 28, Title 23 applicable to a reserve police officer for the entire taxable year. In the case of a Department of Natural Resources deputy enforcement officer and in lieu of minimum points determining eligibility, this deduction is allowed only if the deputy enforcement officer's supervisor certifies in writing to the officer that the officer met all requirements of Section 50-3-315 for the entire taxable year. In the case of a member of the State Guard and in lieu of minimum points determining eligibility, this deduction is allowed only if the State Guard member completes a minimum of sixteen hours of training or drill each month, equating to one hundred ninety-two hours a year, and the member's commanding officer certifies in writing to the member that the member met these requirements. These certifications must be on a form approved by the Department of Revenue that must be filed with the officer's or member's tax return for the exemption to be claimed."
SECTION 2. This act takes effect upon approval by the Governor and applies for taxable years beginning after 2004.
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