South Carolina General Assembly
117th Session, 2007-2008

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H. 3438

STATUS INFORMATION

General Bill
Sponsors: Rep. Crawford
Document Path: l:\council\bills\bbm\9734htc07.doc
Companion/Similar bill(s): 3482, 3485

Introduced in the House on February 6, 2007
Currently residing in the House Committee on Ways and Means

Summary: Cigarette tax increase

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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    2/6/2007  House   Introduced and read first time HJ-7
    2/6/2007  House   Referred to Committee on Ways and Means HJ-7

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

2/6/2007

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

A BILL

TO AMEND SECTION 12-6-510, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RATES AND INCOME BRACKETS APPLICABLE FOR INDIVIDUALS, ESTATES, AND TRUSTS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO REDUCE THE TOP MARGINAL TAX RATE FROM SEVEN PERCENT TO 6.5 PERCENT AND TO UPDATE THE BRACKETS TO REFLECT PAST INFLATION ADJUSTMENTS, TO AMEND SECTION 12-6-520, RELATING TO ANNUAL INFLATION ADJUSTMENTS TO STATE INDIVIDUAL INCOME TAX BRACKETS, SO AS TO DELETE THE PROVISION LIMITING THE INFLATION ADJUSTMENT TO ONE-HALF OF THE ACTUAL INFLATION RATE AND THE OVERALL FOUR PERCENT LIMIT ON THE TOTAL INFLATION ADJUSTMENT, AND TO DELETE REDUNDANT LANGUAGE, AND TO AMEND SECTION 12-21-620, RELATING TO THE RATES OF THE LICENSE TAX ON TOBACCO PRODUCTS, SO AS TO INCREASE THE TAX ON CIGARETTES FROM .35 CENTS FOR EACH CIGARETTE TO 5.35 CENTS ON EACH CIGARETTE.

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

SECTION    1.        Section 12-6-510(A) of the 1976 Code is amended to read:

"(A)    For taxable years beginning after 1994 2006, a tax is imposed on the South Carolina taxable income of individuals, estates, and trusts and any other entity except those taxed or exempted from taxation under Sections 12-6-530 through 12-6-550 computed at the following rates with the income brackets indexed in accordance with Section 12-6-520:

Not over $2220                    2.5 percent of taxable income

over $2,220 but                    $56 plus 3 percent of

not over $4,440                    the excess over $2,220;

over $4,440 but                    $123 plus 4 percent of

not over $6,660                    the excess over $4,440;

over $6,660 but                    $212 plus 5 percent of

not over $8,880                    the excess of $6,660;

over $8,880 but                    $323 plus 6 percent of

not over $11,100                the excess over $8,880;

over $11,100                            $456 plus 7 percent of

the excess over $11,100.

OVER            BUT NOT

OVER                             -0-

$        0                    $2,630            2.5% Times the amount

2,630                5,260            3% Times the amount less $13

5,260                7,890            4% Times the amount less $66

7,890                10,520            5% Times the amount less $144

10,520                13,150            6% Times the amount less $250

13,150+                or more        6.5% Times the amount less $381."

SECTION    2.    Section 12-6-520 of the 1976 Code is amended to read:

"Section 12-6-520.    Each December 15, the department cumulatively shall cumulatively adjust the brackets in Section 12-6-510 in the same manner that brackets are adjusted in Internal Revenue Code Section 1(f). However, the adjustment is limited to one-half of the adjustment determined by Internal Revenue Code Section 1(f), may not exceed four percent a year, and , but the rounding amount provided in 1(f)(6) is deemed to be ten dollars. The brackets, as adjusted, apply in lieu of those provided in Section 12-6-510 for taxable years beginning in the succeeding calendar year. Inflation adjustments must be made cumulatively to the income tax brackets."

SECTION    3.    A.    Section 12-21-620(1) of the 1976 Code is amended to read:

"(1)    upon all cigarettes made of tobacco or any substitute for tobacco, three and one-half mills 5.35 cents on each cigarette;"

B.    Notwithstanding the general effective date of this act, this section takes effect January 1, 2008.

SECTION    4.    This act takes effect upon approval by the Governor.

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