South Carolina General Assembly
116th Session, 2005-2006

Download This Bill in Microsoft Word format

Indicates Matter Stricken
Indicates New Matter

S. 591

STATUS INFORMATION

General Bill
Sponsors: Senators Moore, Knotts, Reese, Land, Gregory, Short, Hutto, Grooms and Setzler
Document Path: l:\council\bills\ggs\22909htc05.doc

Introduced in the Senate on March 3, 2005
Currently residing in the Senate Committee on Finance

Summary: Five percent maximum rate phased in for taxpayers in the capacity as sole proprietor of certain business

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
    3/3/2005  Senate  Introduced and read first time SJ-19
    3/3/2005  Senate  Referred to Committee on Finance SJ-19

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/3/2005

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

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-537 SO AS TO PROVIDE A MAXIMUM FIVE PERCENT STATE INCOME TAX RATE PHASED IN OVER SIX TAXABLE YEARS ON SOUTH CAROLINA TAXABLE INCOME RECEIVED BY A TAXPAYER IN THE TAXPAYER'S CAPACITY AS A SOLE PROPRIETOR OF A BUSINESS, A SHAREHOLDER OF A SUBCHAPTER "S" CORPORATION, PARTNER IN A PARTNERSHIP, OR MEMBER OF A LIMITED LIABILITY COMPANY.

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

SECTION    1.    Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-537.    (A)    Notwithstanding the rates imposed pursuant to Section 12-6-510, a maximum rate of tax as provided in subsection (B) of this section applies to South Carolina taxable income received by or attributed to a taxpayer as a result of the taxpayer's status as a:

(1)    sole proprietor of a business;

(2)    shareholder of a subchapter 'S' corporation;

(3)    partner in a partnership; or

(4)    member of a limited liability company.

(B)    Taxable Year                                    Maximum Rate of Tax

2005                                                    6.67 percent

2006                                                    6.34 percent

2007                                                    6.00 percent

2008                                                    5.67 percent

2009                                                    5.34 percent

After 2009                                                    5.00 percent

The special rate allowed by this section does not apply for a guaranteed payment to a partner for personal service rendered by the partner for the partnership."

SECTION    2.    This act takes effect upon approval by the Governor

----XX----

This web page was last updated on Friday, December 4, 2009 at 3:30 P.M.