South Carolina General Assembly
115th Session, 2003-2004

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Bill 4527

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Indicates New Matter


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

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

May 26, 2004

H. 4527

Introduced by Reps. M.A. Pitts, Bailey and Koon

S. Printed 5/26/04--S.

Read the first time April 20, 2004.

            

THE COMMITTEE ON FINANCE

To whom was referred a Bill (H. 4527) to amend Section 12-6-1140, Code of Laws of South Carolina, 1976, relating to deductions from South Carolina taxable income of individuals, so as to extend, etc., respectfully

REPORT:

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

Amend the bill, as and if amended, by striking Section 12-6-1140(10), as contained in SECTION 1, beginning on page 1, and inserting:

/    (10)    three thousand dollars a deduction calculated as provided in this item for a volunteer firefighter, rescue squad member, or volunteer member of a Hazardous Materials (HAZMAT) Response Team, reserve police officer, or Department of Natural Resources deputy enforcement officer not otherwise eligible for this exemption. An individual may receive only one deduction pursuant to this item. For taxable years after 2000, 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. These certifications must be on a form approved by the Department of Revenue that must be filed with the officer's tax return for the exemption to be claimed.    /

Renumber sections to conform.

Amend title to conform.

HUGH K. LEATHERMAN, SR. for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT1/

This bill, as amended, is expected to reduce general fund individual income tax revenue by an estimated $196,098 in FY2004-05.

Explanation of Amendment (April 14, 2004) - By the House of Representatives

This amendment inserts technical language into the bill to ensure that taxpayers qualified to receive the income tax deduction provided pursuant to SC Code Section 12-6-1140(10) will only receive one deduction even if they qualify under multiple criteria. This technical amendment is not expected to impact revenue in FY2004-05. This bill, as amended, is expected to reduce general fund individual income tax revenue by an estimated $196,098 in FY2004-05.

Explanation of Bill filed January 14, 2004

This bill would amend SC Code Section 12-6-1140(10) to allow an individual serving as a "reserve police officer" a $3,000 individual income tax deduction. After successfully completing sixty hours of course training and passing a comprehensive test administered by the SC Criminal Justice Academy, individuals can be appointed as "reserve police officers" by their local police chief or sheriff to serve the jurisdiction in an auxiliary capacity. To maintain status as reserve police officers and to be eligible for this deduction, qualified individuals must maintain a logged minimum of twenty hours of duty per month or sixty hours per quarter annually. Deputy enforcement officers of the SC Department of Natural Resources are not considered "reserve police officers" and would not be eligible for this deduction. This individual income tax deduction would apply to tax years beginning after 2003. According to information provided by the SC Criminal Justice Academy, there are currently 1,127 reserve police officers certified and registered in the state. Multiplying 1,127 reserve police officers by a $3,000 individual income tax deduction and applying an average tax rate of 5.8 percent reduces general fund individual income tax revenue by an estimated $196,098 in FY2004-05.

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, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME OF INDIVIDUALS, SO AS TO EXTEND THE DEDUCTION ALLOWED AN ELIGIBLE VOLUNTEER FIREMAN, VOLUNTEER RESERVE SQUAD MEMBER, AND VOLUNTEER MEMBER OF A HAZARDOUS MATERIALS (HAZMAT) RESPONSE TEAM TO A RESERVE POLICE OFFICER, TO DELETE OBSOLETE LANGUAGE, AND TO PROVIDE DEDUCTION ELIGIBILITY REQUIREMENTS FOR A RESERVE POLICE OFFICER.

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 363 of 2002, is amended to read:

"(10)    three thousand dollars a deduction calculated as provided in this item for a volunteer firefighter, rescue squad member, or volunteer member of a Hazardous Materials (HAZMAT) Response Team, or reserve police officer not otherwise eligible for this exemption. An individual may receive only one deduction pursuant to this item. For taxable years after 2000, 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. However, 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. The certification must be on a form approved by the Department of Revenue that must be filed with the officer'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 2003.

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