Amend the bill, as and if amended, page 28, line 6, by inserting appropriately numbered new SECTIONS to read:
/ SECTION __. A. Section 12-6-510 of the 1976 Code is amended to read:
"Section 12-6-510. (A) For taxable years beginning after 1994, 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 $2,220 2.5 percent of taxable income
Over $2,220 but not over $4,440 $56 plus 3 percent of the excess over $2,220;
Over $4,440 but not over $6,660 $123 plus 4 percent of the excess over $4,440;
Over $6,660 but not over $8,880 $212 plus 5 percent of the excess of $6,660;
Over $8,880 but not over $11,100 $323 plus 6 percent of the excess over $8,880;
Over $11,100 $456 plus 7 percent of the excess over $11,100.
(B) Notwithstanding subsection (A), for tax year 2017, 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:
BUT NOT
OVER OVER --0--
$ 0 $ 3,610 0.00% Times the amount
3,610 7,220 2.90% Times the amount less $105
7,220 10,830 4.00% Times the amount less $184
10,830 14,440 5.00% Times the amount less $292
14,440 18,050 6.00% Times the amount less $437
18,050 6.90% Times the amount less $599
(C) Notwithstanding subsection (A), and subject to subsection (F), for tax year 2018, 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:
BUT NOT
OVER OVER --0--
$ 0 $ 3,680 0.00% Times the amount
3,680 7,360 2.90% Times the amount less $107
7,360 11,040 4.00% Times the amount less $188
11,040 14,720 5.00% Times the amount less $298
14,720 18,400 6.00% Times the amount less $445
18,400 6.90% Times the amount less $611
(D) Notwithstanding subsection (A), and subject to subsection (F), for tax year 2019, 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:
BUT NOT
OVER OVER --0--
$ 0 $ 3,750 0.00% Times the amount
3,750 7,500 2.90% Times the amount less $109
7,500 11,250 4.00% Times the amount less $191
11,250 15,000 5.00% Times the amount less $304
15,000 18,750 6.00% Times the amount less $454
18,750 6.90% Times the amount less $622
(E) Notwithstanding subsection (A), and subject to subsection (F), for taxable years beginning after 2019, 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:
BUT NOT
OVER OVER --0--
$ 0 $ 4,150 0.00% Times the amount
4,150 8,300 2.90% Times the amount less $120
8,300 12,450 4.00% Times the amount less $212
12,450 16,600 5.00% Times the amount less $336
16,600 20,750 6.00% Times the amount less $502
20,750 6.90% Times the amount less $689
(F)(1) Notwithstanding any other provision of this section, the provisions of subsection (C) shall not apply until forecasted general fund growth meets the requirements of subsection (G), the provisions of subsection (D) shall not apply until forecasted general fund growth meets the requirements of subsection (G) twice, and the provisions of subsection (E) shall not apply until forecasted general fund growth meets the requirements of subsection (G) three times.
(2) Once income tax brackets and rates are applicable in a tax year, the same brackets and rates shall continue to apply until general fund growth meets the requirements of this subsection (G) causing new tax brackets and rates to be applicable. In any tax year in which new tax brackets and rates are not applicable, the department shall adjust the income tax brackets in accordance with Section 12-6-520. In the first year income tax brackets and rates become applicable, the income tax brackets must be at least as large as the previous tax year.
(3) The provisions of this subsection no longer apply once the provisions of subsection (E) are applicable; however, an amended return must use the applicable tax brackets and rates of the year for which the return was filed.
(G)(1) Forecasted general fund growth meets the requirements of this section if, beginning with the February 15, 2018 forecast by the Board of Economic Advisors of annual general fund revenue for the upcoming fiscal year, and annually thereafter, general fund revenues are projected to increase by at least one percent. If the February fifteenth forecast meets the requirement, the Executive Director of the Revenue and Fiscal Affairs Office, or his designee, promptly shall certify this result in writing to the Department of Revenue. The provisions of this subsection no longer apply once the tax brackets and rates in subsection (E) are applicable.
(2) For purposes of this subsection, the percentage increase in general funds must be determined by the Revenue and Fiscal Affairs Office by comparing the current fiscal year's recurring general fund expenditure base with the Board of Economic Advisors' February fifteenth forecast of recurring general fund revenue for the upcoming fiscal year. The February fifteenth forecast is considered the final forecast for purposes of making the growth determination. The Revenue and Fiscal Affairs Office shall determine the current fiscal year's recurring general fund expenditure base, and determine any projected increase in general fund revenues.
(3) For purposes of this subsection:
(a) 'Recurring general fund revenue' means the forecast of recurring general fund revenues pursuant to Section 11-9-880 after the amount apportioned to the Trust Fund for Tax Relief, as required in Section 11-11-150, is deducted, and after any projected revenue loss resulting from amendments to Sections 12-6-510 and 12-37-220(B)(52)(a) contained within the South Carolina Infrastructure and Economic Development Reform Act is deducted.
(b) 'Recurring general fund expenditure base' means the total recurring general fund appropriations authorized in the current general appropriations act less any reduced appropriations mandated by the General Assembly or the Executive Budget Office pursuant to Section 11-9-890B, and less any projected revenue loss resulting from amendments to Sections 12-6-510 and 12-37-220(B)(52)(a) contained within the South Carolina Infrastructure and Economic Development Reform Act.
(H) The department may prescribe tax tables consistent with the rates set pursuant to subsection (A) this section."
B. Notwithstanding Section 12-6-520, the Department of Revenue shall not adjust the income tax brackets for any year in which new income tax brackets and rates, pursuant to Section 12-6-510, are first applicable.
SECTION __. A. Section 12-6-520 of the 1976 Code is amended to read:
"Section 12-6-520. (A) Each December 15, the department 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 the rounding amount provided in (1)(f)(6) is 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.
(B) Notwithstanding the provisions of subsection (A), for tax years beginning after 2020, or tax years after which income tax brackets and rates set forth in Section 12-6-510(E) become applicable, whichever occurs later, the department shall make the adjustment required by this section using the tax year 2020 brackets as the base year."
B. This SECTION takes effect upon approval by the Governor and applies to tax years beginning after 2016.
SECTION __. A. Section 12-6-1140(6) of the 1976 Code is amended to read:
"(6) a subsistence allowance of eight nine dollars a day for federal, state, and local law enforcement officers paid by a political subdivision of this State, the government of this State, or the federal government, for each regular work day in a taxable year and full-time firefighters and emergency medical service personnel may deduct as a subsistence allowance eight dollars a day for each regular work day in a taxable year;"
B. This SECTION takes effect upon approval by the Governor and applies to tax years beginning after 2016.
SECTION __. A. Section 12-6-3330(B)(1) of the 1976 Code is amended to read:
"(1) thirty forty-five thousand dollars; or"
B. This SECTION takes effect upon approval by the Governor and applies to tax years beginning after 2016.
SECTION __. A. Section 12-6-3385(A)(1) of the 1976 Code is amended to read:
"(A)(1) A student is allowed a refundable individual income tax credit equal to twenty-five percent, not to exceed eight hundred fifty one thousand five hundred dollars in the case of both four-year institutions and twenty-five percent, not to exceed three hundred fifty dollars in the case of two-year institutions for tuition paid an institution of higher learning or a designated institution as provided in this section during a taxable year. The amount of the tax credit claimed up to the limits authorized in this section for any taxable year may not exceed the amount of tuition paid during that taxable year."
B. This SECTION takes effect upon approval by the Governor and applies to tax years beginning after 2016.
SECTION __. A. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3632. There is allowed as a nonrefundable credit against the tax imposed pursuant to Section 12-6-510 on a full-year resident individual taxpayer an amount equal to three and one-half percent of the earned income tax credit (EITC) allowed the taxpayer pursuant to Internal Revenue Code Section 32."
B. This SECTION takes effect upon approval by the Governor and applies to tax years beginning after 2016.
SECTION __. A. Section 12-37-220(B) of the 1976 Code, as last amended by Act 23 of 2015, is further amended by adding an item at the end to read:
"(52)(a) Nineteen and five one-hundredths percent of the property tax value of manufacturing property assessed for property tax purposes pursuant to Section 12-43-220(a)(1). For purposes of this item, when the exemption is applied to real property, it must be applied to the property tax value as it may be adjusted downward to reflect the limit imposed pursuant to Section 6, Article X, of the South Carolina Constitution, 1895.
(b) Nine and one-half percent of the property tax value of business personal property required to be reported and returned annually to the Department of Revenue or county auditors assessed for property tax purposes pursuant to Section 12-43-220(f).
(c) The revenue loss resulting from the exemption allowed by this item must be reimbursed and allocated to the political subdivisions of this State, including school districts, in the same manner as the Trust Fund for Tax Relief. In calculating estimated state individual and corporate income tax revenues for a fiscal year, the Board of Economic Advisors shall deduct amounts sufficient to account for the reimbursement required by this item.
(d) Notwithstanding any other provision of law, property exempted from property tax in the manner provided in this item is considered taxable property for purposes of bonded indebtedness pursuant to Section 15, Article X of the Constitution of this State."
B. (A) Notwithstanding the exemption amount allowed pursuant to item (52)(a) added pursuant to subsection A of this SECTION, the percentage exemption amount is phased in in two equal and cumulative percentage installments, pursuant to subsection (B), applicable for property tax years beginning after 2017.
(B)(1) Notwithstanding any other provision of this SECTION, beginning with the February 15, 2018, forecast by the Board of Economic Advisors of annual general fund revenue for the upcoming fiscal year, and annually thereafter, the scheduled percentage exemption, set forth in subsection (A), shall take effect only if general fund revenues are projected to increase by at least one percent. The next scheduled percentage exemption shall not take effect until the February fifteenth forecast meets the requirements for an exemption, mutatis mutandis. If the February fifteenth forecast meets the requirement for an exemption, the Executive Director of the Revenue and Fiscal Affairs Office, or his designee, promptly shall certify this result in writing to the Department of Revenue. Once both installments required by subsection (A) have been made, the provisions of this item no longer apply.
(2) For purposes of this subsection, the percentage increase in general funds must be determined by the Revenue and Fiscal Affairs Office by comparing the current fiscal year's recurring general fund expenditure base with the Board of Economic Advisors' February fifteenth forecast of recurring general fund revenue for the upcoming fiscal year. The February fifteenth forecast is considered the final forecast for purposes of making the growth determination. The Revenue and Fiscal Affairs Office shall determine the current fiscal year's recurring general fund expenditure base, and determine any projected increase in general fund revenues.
(3) For purposes of this subsection:
(a) 'Recurring general fund revenue' means the forecast of recurring general fund revenues pursuant to Section 11-9-880 after the amount apportioned to the Trust Fund for Tax Relief, as required in Section 11-11-150, is deducted, and after any projected revenue loss resulting from amendments to Sections 12-6-510 and 12-37-220(B)(52)(a) contained within the South Carolina Infrastructure and Economic Development Reform Act is deducted.
(b) 'Recurring general fund expenditure base' means the total recurring general fund appropriations authorized in the current general appropriations act less any reduced appropriations mandated by the General Assembly or the Executive Budget Office pursuant to Section 11-9-890B, and less any projected revenue loss resulting from amendments to Sections 12-6-510 and 12-37-220(B)(52)(a) contained within this act.
C. This SECTION takes effect upon approval by the Governor and for purposes of item (52)(b) first applies to property tax years beginning after 2016, and for purposes of item (52)(a) first applies to property tax years beginning after 2017. /
Renumber sections to conform.
Amend title to conform.