(The Heart Sq.) — South Carolina’s Home of Representatives amended a tax lower invoice and accepted it on Tuesday, establishing a possible convention committee within the waning days of session.
The 2 chambers might determine in convention the way to lower the state’s revenue tax charge.
The complete Home adopted by way of on the Methods and Means Committee suggestion by amending S. 1087, which beforehand handed the Senate, and making it practically equivalent to a beforehand handed Home invoice, H. 4880, earlier than passing the invoice unanimously by a 110-0 vote.
The amended invoice will now head again to the Senate, which might want to concur with the modification. If the Senate rejects the amended invoice, a convention committee can be fashioned.
The amended model of the invoice would lower the state’s high tax charge from 7% to six.5% for the 2022 tax yr. The Home invoice additionally would decrease that high charge by 0.1 share factors annually, beginning in 2023, till it reaches 6%. It additionally would mix the tax brackets that beforehand have been at 6%, 5%, 4% and three% into one 3% bracket.
The state’s present 3.1% efficient revenue tax charge could be lowered to 2.54%, in line with Home Majority Chief Gary Simrill, R-York.
The invoice the Senate handed included a $1 billion rebate on 2021 state taxes, with rebates between $100 and $700 per state tax return. The 43% of South Carolina residents who don’t pay state revenue tax will nonetheless obtain $100 in tax rebate funds this yr once they file taxes, which can quantity to $116 million of the funds.
Anybody set to pay as much as $100 in taxes will obtain the $100 rebate and that rebate will develop together with tax legal responsibility as much as a cap of $700 per tax submitting.
The Senate model additionally included $1 billion in recurring revenue tax cuts, and would lower the state’s high two tax tiers (7% and 6%) to five.7% for tax yr 2022, a plan that might value $887 million yearly.