Friday Follies: A Tax Exemption for … Huh?

A TAX BREAK FOR FOOD AND CLOTHING IN THE PREPARATION OF PERISHABLE FOOD. THAT MAKES PERFECT SENSE. It’s often the case, and South Carolina is no exception. Lawmakers tend to view the sales tax provisions in state law, not as a means of raising revenue to carry out the necessary functions of government, but rather […]

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ANALYSIS: Here Come the TIFs

  WITH DISASTERS COME NEW REASONS TO TAX Last October’s floods, in addition to creating havoc for some individuals and businesses, have unleashed a torrent of ill-advised governmental proposals and initiatives – additional farm subsidies, new taxes, and a host of complicated federal-state matching funds. Add TIFs to that list. H.4995 authorizes counties to create […]

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New Impact Fees on Residential Dwelling Units

H.4625 would permit county and municipal governments to impose an impact fee on developers, not to exceed $250, for each new residential dwelling unit constructed by a developer within the county or municipality. Residential dwelling unit is defined as “all residential units, including, but not limited to, single family attached, single family detached, duplex, condominium, […]

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Collapsing Income Tax Brackets

House bill H.4228 would condense the middle income tax brackets while leaving the highest and lowest brackets essentially unchanged. This bill would eliminate the 3, 4, 5 and 6% tax brackets and replace them with a single tax bracket at 3.75% applying to all incomes between $2,910 and $14,550. Unchanged is the 0% rate for […]

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Eliminating some Sales Tax Exemptions

H.4227 would eliminate a number of sales tax exemptions and would direct the resultant revenue to the state’s general fund. Some of the items that would no longer be exempt from sales tax include: railroad cars, vessels and barges of more than 50 tons burden, petroleum asphalt products purchased in South Carolina but used out […]

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Cutting Income Tax Brackets by 1%

H.4152 would cut all South Carolina income tax brackets by 1% over four years. The first 0.25% cut to each bracket would begin in 2015 and would continue for three more years until the full 1% cut had been achieved. The final effect of these cuts (if carried through) would be a lowering of the […]

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Adding Flexibility to the Sunset Provision of Local Sales Taxes

S.683 (and companion bill H.5078) amends the sunset provision in current state law for locally-imposed sales taxes. Under current law, a locally-imposed sales tax must not last longer than eight years. If it is renewed, it must not last longer than seven years and must end in an odd-numbered year. This bill would remove the requirement that […]

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Swapping Property Taxes on large commercial vehicles for “road use fees”

H.3948 would exempt large commercial motor vehicles (vehicles weighing over 2,600 pounds used for the transportation of property on a public highway) from property taxes. In place of property taxes the Department of Motor Vehicles (DMV) would impose a road use fee based on the fair market value of the vehicle and an assessment ratio […]

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BILL ANALYSIS: House Roads Plan

• Bill raises taxes on gasoline and motor vehicle sales. • Enacts a roughly $360 million tax hike next year. • Allows Infrastructure Bank to fund more projects, not fewer. • Gives Infrastructure Bank $50 million more in annual funding. • Does nothing to alter the Bank’s emphasis on new construction. • Maintains legislature’s influence over DOT Commission.  […]

Replacing the Income Tax with a Flat Tax

H.3164 replaces the income tax with a 3.5% tax on adjusted gross income, and allows a tax forgiveness credit based on income level and dependents. The bill creates a set of income level brackets determining the percentage of the tax forgiveness credit issued. Cutting South Carolina’s top income tax bracket (currently at 7%) in half […]

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