reglab/statecodes huggingface dataset:
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-520. Dealings with county tax officials; oversight of county taxation matters.

The department:
(1) shall call meetings of all county assessors to provide instruction as to the law governing the assessment and taxation of all classes of property and shall formulate and prescribe rules to govern assessors and county boards of tax appeals in the discharge of their duties;
(2) shall confer with, advise, and direct assessors and county boards of tax appeals as to their duties pursuant to the laws of the State;
(3) may visit counties in the State to investigate the assessment, equalization, and taxation of property subject to taxation and take action necessary to ensure the proper assessment, equalization, and taxation of the property;
(4) as often as annually, may examine the books, papers, and accounts of assessors, auditors, treasurers, and tax collectors, to protect the interests of the State, counties, and other political subdivisions and to render these officers aid or instruction. The department does not have jurisdiction over personnel or equipment purchases of political subdivisions;
(5) shall require county auditors to place upon the assessment rolls omitted property that may have escaped assessment and taxation in whole or in part, in the current or previous years; and
(6) may extend the time for the performance of the duties imposed upon the county assessors or auditors for the valuation of property for tax purposes, and, if the department extends the time for the collection of taxes, the department may postpone the time for the imposition of penalties.
HISTORY: 1991 Act No. 50, Section 2; 2006 Act No. 386, Section 55.B, eff June 14, 2006; 2015 Act No. 87 (S.379), Section 1, eff June 11, 2015.
Effect of Amendment
2015 Act No. 87, Section 1, in (4), substituted "may examine" for "shall examine".
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-530. Investigation and prosecution of violations.

The department may:
(1) examine cases in which the laws of this State relating to the valuation, assessment, or taxation of property is complained of, or discovered to have been evaded or violated in any manner;
(2) require the Attorney General or circuit solicitor to assist in the commencement and prosecutions of actions and proceedings for penalties, forfeitures, removals, and punishment for violation of the laws of this State in respect to the assessment and taxation of property;
(3) direct proceedings, actions, and prosecutions to be instituted to enforce the laws relating to penalties, liabilities, and punishment of public officers and officers and agents of corporations for failure or neglect to comply with the provisions of the laws of this State governing the assessment and taxation of property and the rules of the department; and
(4) cause complaints to be made against assessors, county boards of tax appeal, or other assessing and taxing officers to the proper authority for their removal from office for official misconduct or neglect of duty.
HISTORY: 1991 Act No. 50, Section 2; 2015 Act No. 87 (S.379), Section 2, eff June 11, 2015.
Effect of Amendment
2015 Act No. 87, Section 2, in the introductory paragraph, substituted "The department may" for "The department shall".
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-535. Department determinations.

(A) The department may issue a department determination directing the appropriate county official to comply with all applicable state law relating to the valuation, assessment, or taxation of property.
(B) Within thirty days of the date the department determination is mailed or hand delivered, the county must respond in writing by first class mail or hand delivery to the department and state its agreement or disagreement with the department determination.
(C) If the county disagrees with, or fails to respond to, the department determination, the department by its director or designee or the county governing body by resolution may request a contested case hearing before the Administrative Law Court within thirty days after the date the county disagreement notice was, or should have been, mailed or hand delivered. A request for a contested case hearing before the Administrative Law Court must be made in accordance with its rules.
(D) The county governing body by resolution may request a department determination on any state law regarding the valuation, assessment, or taxation of property. Within thirty days of a request by a county governing body, the department may issue, in its discretion, the determination, which must be issued by first class mail or hand delivery to the county.
HISTORY: 2007 Act No. 110, Section 35, eff June 21, 2007; 2007 Act No. 116, Section 41, eff June 28, 2007, applicable for tax years beginning after 2007.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-540. Appraisal, assessment and equalization by department; appraisal, assessment and equalization of certain business property.

(A)(1) The department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of corporate headquarters, corporate office facilities, and distribution facilities and of the real and personal property owned by or leased to the following businesses and used in the conduct of their business:
(a) manufacturing;
(b) railway;
(c) private carline;
(d) airline;
(e) water, heat, light and power;
(f) telephone;
(g) cable television;
(h) sewer;
(i) pipeline;
(j) mining.
(2) In addition, the department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of the personal property of merchants.
(B) Except as otherwise provided, the department may use any accepted or recognized valuation method which reflects the property's fair market value, including methods within the unit valuation concept. In assessing railroad transportation property, the department shall use the unit valuation concept.
(C) When the unit valuation concept is used, the value allocated to this State must be distributed to the taxing entities in which the property is situated.
(D) Except as otherwise provided, the department shall assess all real and personal property, leased or used, to the owner.
(E) When the department uses the unit valuation concept, property taxes on all leased and used real and personal property must be paid by the lessee. Whether or not the unit valuation concept is used, an airline or private carlines shall pay property taxes on all leased real and personal property in its control.
(F) If the department discovers that property required by law to be returned to the department has not been returned, the department may value and assess the property. If property has been returned or assessed incorrectly, the department may value and assess the property and give notice to the taxpayer of the valuation and assessment. After the expiration of the appeal period, the department shall certify the corrected assessment to the county auditor of the county where the property is located.
HISTORY: 1991 Act No. 50, Section 2; 2005 Act No. 161, Section 3, eff upon approval (became law without the Governor's signature on June 9, 2005).
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-550. Requirement for public officers, and for all persons, to furnish information in connection with taxes.

The department shall:
(1) require municipal, county, and other public officers to report information as to the assessment of property, collection of taxes, receipts from licenses and other sources, and information necessary in the work of the department in the form the department prescribes; and
(2) require all persons to furnish information concerning their capital, bonded or other debts, current assets and liabilities, value of property, earnings, operating and other expenses, taxes, and other facts necessary for the department to ascertain the value and relative tax burden borne by all kinds of property.
HISTORY: 1991 Act No. 50, Section 2.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-560. Manuals, guides, and aids to assessment; listing of property by groups and classes.

The department shall prepare appropriate manuals, guides, and other aids for the equitable assessment of all properties and prepare suitable forms for an adequate listing and description of property by groups and classes.
HISTORY: 1991 Act No. 50, Section 2.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-570. Report of all taxable property and its value.

The department, at the request of the Governor or a member of the General Assembly, shall prepare and make available a report showing all taxable property in the State and its value in tabulated form.
HISTORY: 1991 Act No. 50, Section 2.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-580. Authority allowing department to contract to collect outstanding liabilities.

(A) The department and another governmental entity may contract to allow the department to collect an outstanding liability owed the governmental entity. In administering the provisions of those agreements, the department has all the rights and powers of collection provided pursuant to this title for the collection of taxes and all the rights and powers authorized the governmental entity to which the liability is owed.
(B) The department may charge and retain a reasonable fee for a collection effort made on behalf of a governmental entity. The amount of the fee must be negotiated between the governmental entity and the department. The debtor must be given full credit toward the satisfaction of the debt for the amount of the fee collected by the department pursuant to this section.
(C) Governmental entities that contract with the department pursuant to this section and those entities whose debts are submitted for collection through an association shall indemnify the department against injuries, actions, liabilities, or proceedings arising from the collection or attempted collection by the department of the liability owed to the governmental entity.
(D) As used in this section:
(1) "Governmental entity" means the State and a state agency, board, committee, department, or public institution of higher learning; all political subdivisions of the State; all federal agencies, boards, and commissions; and a federal, state, county, or local governmental or quasi-governmental entity. "Political subdivision" includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of a county or local governmental or quasi- governmental entity.
(2) "Liabilities owed the governmental entity" has the same meaning as a "delinquent debt" as defined in Section 12-56-20(4).
(E) The governmental entity shall notify the debtor of its intention to submit the liability to the department for collection and of the debtor's right to protest not less than thirty days before the liability is submitted to the department for collection. The notice, hearing, appeals, and other provisions contained in Section 12-56-50 through 12-56-120 apply to this section with additional language in the notice letter as specified by the department.
HISTORY: 1996 Act No. 458, Part II, Section 59A; 1999 Act No. 93, Section 9; 2001 Act No. 89, Section 44, eff July 20, 2001; 2002 Act No. 363, Section 4C, eff July 1, 2002; 2003 Act No. 69, Section 3.KK.1, eff June 18, 2003.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-710. Department to determine exemptions.

Except for the exemption provided by Section 12-37-220(A)(9), the department shall determine if any property qualifies for exemption from local property taxes under Section 12-37-220 in accordance with the Constitution and general laws of this State. This determination must be made on an annual basis and the appropriate county official so advised by June first of each year by the department.
HISTORY: 1991 Act No. 50, Section 2; 1995 Act No. 125, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-720. Filing of applications for exemptions.

(A) Applications for property exemptions, other than the exemption provided by Section 12-37-220(A)(9), must be filed as follows:
(1) Except as otherwise provided any property owner whose property may qualify for property exemption shall file an application for exemption with the department within the period provided in Section 12-54-85(F) for claims for refund. This item does not relieve the taxpayer of any responsibility to file timely and accurate property tax returns.
(2) Owners of property exempt under Section 12-37-220(A)(8) shall file an application for exemption before the first penalty date for payment of property taxes.
(3) Applications for exemption are not required for properties owned by the United States Government or those exempt properties enumerated in Section 12-37-220(A)(1), (5), (6), (10), and (B)(9), (13), (14), (15), (17), (23), (25), and (30).
(B) If a taxpayer files a property tax return listing property as exempt, that listing is considered an application for exemption from property taxes.
(C) A taxpayer who is required to file property tax returns with the department shall claim any exemption on the return each year the property is exempt.
(D) Except for the requirement in subsection (C), the owner is not required to file more than one application for each exemption, unless there is a change in the status of the property as reported in the initial application or unless requesting an exemption for property which was not included in the initial or subsequent application.
HISTORY: 1991 Act No. 50, Section 2; 1994 Act No. 516, Section 28; 1995 Act No. 125, Section 2A; 1995 Act No. 125, Section 2B.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-730. Declaration and certification of exemption; voiding of tax notices by auditor.

The department, upon receipt of an application and upon proper investigation, may declare the real and personal property of a property owner qualifying for an exemption from ad valorem taxation identified in this chapter as exempt and shall certify the exemption to the auditor's office in the county in which the property is located. Upon certification by the department, the auditor shall void any tax notice applicable to the property.
HISTORY: 1991 Act No. 50 Section 2; 1992 Act No. 361, Section 3.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-740. Information to be furnished in support of request for exemption; inspection of premises.

(A) An owner of tax-exempt property or a property owner requesting tax exemption shall furnish information and records requested by the department. The department and its agents may examine portions of the financial records of the owners of real and personal property as necessary to determine if the property qualifies for tax-exempt status.
(B) The department and its authorized agents may enter the premises upon reasonable notice and inspect them for tax exemption purposes.
HISTORY: 1991 Act No. 50, Section 2.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 4 - The South Carolina Department Of Revenue › Section 12-4-750. Revocation of exempt status; imposition of tax and penalty.

(A) The department may revoke tax-exempt status if the property does not qualify or continue to qualify for tax-exempt status under the provisions of the Constitution and the general laws of the State.
(B) If the department finds within three years from the date that taxes would have been due on property that has been granted an exemption that the exemption was for any reason improperly granted due to incomplete, misleading, or fraudulent information furnished by the applicant or its agents, the department shall notify the appropriate county official, and the county auditor shall enter on the duplicate the taxes that would have been due for those years that the property escaped taxation, with an added ten percent penalty.
HISTORY: 1991 Act No. 50, Section 2.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-20. Administration and enforcement of chapter.

The department shall administer and enforce the taxes imposed by this chapter. The department shall make and publish rules and regulations, not inconsistent with this chapter, necessary to enforce its provisions. These rules and regulations have the force of law.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-30. Definitions.

As used in this chapter, the following words have the meaning provided unless otherwise required by the context:
(1) "Taxpayer" includes an individual, trust, estate, partnership, association, company, corporation, or any other entity subject to the tax imposed by this chapter or required to file a return.
(2) "Resident individual" means an individual domiciled in this State. A "nonresident individual" means an individual other than a resident individual or a part-year resident.
(3) "Part-year resident" means an individual who is a resident individual for only a portion of the tax year.
(4) "Resident estate" means the estate of a decedent who was domiciled in this State at death. "Nonresident estate" means an estate other than a resident estate.
(5) "Resident trust" means a trust administered in this State. "Nonresident trust" is a trust other than a resident trust.
(6) "Resident beneficiary" means a beneficiary of an estate or trust who is a resident individual, resident estate, resident trust, resident partnership, or resident corporation. "Nonresident beneficiary" means a beneficiary other than a resident beneficiary.
(7) "Resident partner" means a partner who is a resident individual, resident estate, resident trust, or resident corporation or resident partnership during the taxable year. "Nonresident partner" means a partner other than a resident partner.
(8) "Resident corporation" means a corporation whose principal place of business, as defined in item (9), is located within this State. "Nonresident corporation" means a corporation other than a resident corporation.
(9) "Principal place of business" means the domicile of a corporation. However, when none of the business of the corporation is conducted in the state of domicile, the department shall determine the principal place of business of the corporation based upon the available evidence.
(10) "Business" includes trade, profession, occupation, or employment.
(11) "Tangible property" includes real property and corporeal personal property but does not include money, bank deposits, shares of stock, bonds, credits, evidences of debt, choses in action, or evidences of an interest in property.
(12) "Intangible property" means all property other than tangible property.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-60. Role of distribution facility in determining nexus with state for income tax and corporate license fee purposes.

(A) Notwithstanding another provision of this chapter, whether or not a person has nexus with South Carolina for income tax and corporate license fee purposes, is determined without regard to whether the person:
(1) owns or utilizes a distribution facility within South Carolina;
(2) owns or leases property at a distribution facility within South Carolina that is used at, or distributed from, that facility; or
(3) sells property shipped or distributed from a distribution facility within South Carolina.
(B) The distribution facility is not considered to be a fixed place of business in South Carolina for the purposes of nexus.
(C) For purposes of this section, a distribution facility is defined in Section 12-6-3360.
HISTORY: 2005 Act No. 157, Section 1, eff June 10, 2005, applicable for taxable years beginning January 1, 2006.
Editor's Note
2005 Act No. 157, Section 5, as amended by 2006 Act No. 389, Section 4, provides as follows:
"(A) The General Assembly finds that many tax incentives outlive their usefulness and should exist only for a time certain. It is the intent of the General Assembly to provide for a sunset provision on each tax incentive, including credits and exemptions, enacted by this act.
"(B) Each tax incentive, including credits and exemptions, enacted by this act shall be repealed for tax years beginning after five years from the date of enactment, unless a different time frame is otherwise provided herein, but this repeal does not apply to the small business targeted jobs tax credit allowed pursuant to Section 12-6-3360(C)(2), as amended by this act."
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-515. State individual income tax bracket reduction.

Section repealed upon contingency. See, Editor's Note.
Notwithstanding any other provision of law, for taxable years beginning after 2006, the rate of tax imposed pursuant to Section 12-6-510(A) on the lowest bracket of South Carolina taxable income is reduced from 2.5 percent to zero percent, and the Department of Revenue shall adjust amounts due in tax tables prescribed by the department.
HISTORY: 2007 Act No. 115, Section 5, eff June 29, 2007.
Editor's Note
2022 Act No. 228, Sections 1 and 4, provide as follows:
"SECTION 1. This act may be cited as the 'Comprehensive Tax Cut Act of 2022'."
"SECTION 4.A. Section 12-6-515 of the 1976 Code is repealed.
"B. This SECTION takes effect on January first of the first tax year in which the provisions of Section 12-6-510(B) are fully phased-in and the top marginal rate equals six percent."
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-520. Annual adjustments to individual state income tax brackets; inflation adjustments.

Beginning on December 15, 2018, and each December fifteenth thereafter, the department shall cumulatively adjust the brackets in Section 12-6-510 using the Chained Consumer Price Index for All Consumers, as published by the Bureau of Labor and Statistics of the Department of Labor, pursuant to Internal Revenue Code Section (1)(f). However, the adjustment may not exceed four percent a year, and notwithstanding the rounding amount provided in (1)(f)(7), the rounding amount is ten dollars. The brackets, as adjusted, apply instead 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.
HISTORY: 1995 Act No. 76, Section 1; 2018 Act No. 266 (H.5341), Section 4.A, eff October 3, 2018.
Editor's Note
2018 Act No. 266, Sections 1, 4.B, 7, 8, and 9, provide as follows:
"SECTION 1. This act may be referred to as the 'South Carolina Taxpayer Protection and Relief Act'."
"[4.]B. This SECTION takes effect upon approval by the Governor and first applies to the adjustment made for tax year 2019, with the 2018 income tax brackets being used first as the base year upon which adjustments made pursuant to Section 12-6-520, as amended by this act, are made."
"SECTION 7. The Department of Revenue shall take actions necessary to implement the provisions of this act and take the appropriate actions to educate taxpayers of the amendments contained within this act, especially those, if any, that impact filing requirements or determination of taxable income.
"SECTION 8. By January 15, 2025, the Department of Revenue, in coordination with the Revenue and Fiscal Affairs Office, shall deliver a report to the General Assembly that specifies the many provisions of the Tax Cuts and Jobs Act of 2017 that expire after tax year 2025.
"SECTION 9. Except where specified otherwise, this act takes effect upon approval by the Governor and first applies to tax years beginning after 2017."
Effect of Amendment
2018 Act No. 266, Section 4.A, rewrote the section, deleting a provision that limited the inflation rate and providing for the use of the Chained Consumer Price Index to make adjustments.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-530. Corporate income tax.

An income tax is imposed annually at the rate of five percent on the South Carolina taxable income of every corporation, other than those described in Sections 12-6-540 and 12-6-550, and any other entity taxed using the rates of a corporation for federal income tax purposes, transacting, conducting, or doing business within this State or having income within this State, regardless of whether these activities are carried on in intrastate, interstate, or foreign commerce. The terms "transacting", "conducting", and "doing business" include transacting or engaging in any activity for the purpose of financial profit or gain.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-535. Small business trust taxed at highest rate.

For purposes of Internal Revenue Code Section 641(c), an electing small business trust is taxed at the highest rate provided in Section 12-6-510.
HISTORY: 2003 Act No. 69, Section 3.R, eff June 18, 2003.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-540. Income tax rates for exempt organizations and cooperatives.

An income tax is imposed annually at the rate of five percent on the South Carolina taxable income of an organization described in Internal Revenue Code Sections 501 through 528 (Exempt Organizations) and 1381 (Cooperatives) as computed under Internal Revenue Code Sections 501(b) (unrelated business income), 528(d) (taxable income of homeowners' associations), and 1382 and 1383 (taxation of cooperatives). The modifications provided in Article 9 of this chapter and the allocation and apportionment provisions provided in Article 17 of this chapter apply for the taxes imposed by this section.
HISTORY: 1995 Act No. 76, Section 1; 2003 Act No. 69, Section 3.E.3, eff June 18, 2003.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-550. Corporations exempt from taxes imposed by Sections 12-6-530 and 12-6-540.

The following corporations are exempt from the tax imposed by Section 12-6-530 and Section 12-6-540:
(1) banks as defined in Section 12-11-10;
(2) building and loan associations as defined in Section 12-13-10;
(3) insurance companies;
(4) nonprofit corporations organized pursuant to Chapter 36 of Title 33 for the purpose of providing water supply and sewage disposal or a combination of those services;
(5) organizations exempt from income taxes pursuant to Section 33-49-120.
HISTORY: 1995 Act No. 76, Section 1; 2000 Act No. 404, Section 6(C), eff October 3, 2000.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-555. Persons not having nexus with state other than contract for commercial printing in state not subject to state income or sales and use taxes; conditions.

Notwithstanding any other provision of this chapter, with respect to a person that does not otherwise have a nexus with South Carolina, and that has contracted with a commercial printer for printing:
(1) the ownership or leasing by that person of tangible or intangible property located at the South Carolina premises of the commercial printer and used in connection with printing contracts;
(2) the sale by that person of property printed or imprinted at and shipped or distributed from the South Carolina premises of the commercial printer by the commercial printer;
(3) the activities performed pursuant or incident to a printing contract by or on behalf of that person at the South Carolina premises of the commercial printer by the commercial printer; or
(4) the activities performed pursuant or incident to a printing contract by the commercial printer in South Carolina for or on behalf of that person; shall not cause that person to have income derived from sources within South Carolina for purposes of the taxes imposed by this chapter, unless that person engages in other activities in South Carolina that exceed the protection of 15 U.S.C. Section 381. The person shall not be considered to have a fixed place of business in South Carolina at either the commercial printer's premises or at any place where the commercial printer performs printing and related services on behalf of that person.
HISTORY: 1997 Act No. 155, Part II, Section 68A.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-560. Computation of resident individual's gross, adjusted gross, and taxable income.

A resident individual's South Carolina gross income, adjusted gross income, and taxable income is computed as determined under the Internal Revenue Code with the modifications provided in Article 9 of this chapter and subject to allocation and apportionment as provided in Article 17 of this chapter.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-570. Computation of nonresident individual, trust, estate, and beneficiary's gross, adjusted gross, and taxable income.

A nonresident individual, nonresident trust, nonresident estate, and nonresident beneficiary's South Carolina gross income, adjusted gross income, and taxable income is computed as provided in Section 12-6-1720.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-580. Computation of corporation's gross and taxable income.

A corporation's South Carolina gross income, taxable income, and the unrelated business income of a corporation exempt from taxation under Internal Revenue Code Section 501 et seq., is computed as determined under the Internal Revenue Code with the modifications provided in Article 9 of this chapter and subject to allocation and apportionment as provided in Article 17 of this chapter.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-590. Treatment of "S" corporations for tax purposes; shareholders.

(A) Except as provided in Section 12-6-1210(F), an "S" Corporation having a valid federal election under the Internal Revenue Code Subchapter "S" is not subject to tax under this chapter to the extent it would be exempt from federal corporate income tax. Each shareholder shall include its share of South Carolina "S" Corporation income on the shareholder's income tax return. All of the provisions of the Internal Revenue Code apply to determine the gross income, adjusted gross income, and taxable income of an "S" Corporation and its shareholders subject to the modifications provided in Article 9 of this chapter and subject to allocation and apportionment as provided in Article 17 of this chapter.
(B) A taxpayer who is a shareholder in a bank, as defined in Section 581 of the IRC, having a valid federal election under Subchapter S, is allowed a tax credit that equals the difference between: (i) the taxpayer's tax as computed pursuant to this chapter, including all credits other than the credit allowed pursuant to this section; and (ii) the tax as computed pursuant to this chapter, including all credits other than the credit allowed pursuant to this section, but excluding the taxpayer's prorata share of the net items of income and expense of the bank. The credit may not exceed the taxpayer's prorata share of the tax imposed on the bank pursuant to Section 12-11-30. These taxpayers are taxed pursuant to the provisions of this section and Section 12-6-545, notwithstanding the exception contained in Section 12-6-545(A)(1).
HISTORY: 1995 Act No. 76, Section 1; 2007 Act No. 116, Section 65.A, eff June 28, 2007, applicable to calendar years beginning January 1, 2007; 2010 Act No. 150, Section 2, eff April 27, 2010; 2010 Act No. 290, Section 37, eff June 23, 2010.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-600. Taxation of partnerships.

An entity treated as a partnership for federal income tax purposes is not subject to tax under this chapter. Each partner shall include its share of South Carolina partnership income on the partner's respective income tax return. All of the provisions of the Internal Revenue Code apply to determine the gross income, adjusted gross income, and taxable income of a partnership and its partners, subject to the modifications provided in Article 9 of this chapter and subject to allocation and apportionment as provided in Article 17 of this chapter.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-610. Computation of gross and taxable income of resident estate or trust.

A resident estate or resident trust's South Carolina gross income and taxable income is computed as determined under the provisions of the Internal Revenue Code, including the provisions of Internal Revenue Code Section 584 (Common Trust Funds), with the modifications provided in Article 9 of this chapter and subject to allocation and apportionment as provided in Article 17 of this chapter.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-620. Computation of gross, adjusted gross, and taxable income of nonresident individual, trust, and estate.

A nonresident individual, nonresident trust, and nonresident estate's South Carolina gross income, adjusted gross income, and taxable income is computed as provided in Section 12-6-1720.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-630. Taxation of entities not specified or excluded.

Entities, other than those specified in Sections 12-6-560 through 12-6-620 and those specifically excluded from income taxation under Section 12-6-550, are taxed as provided in the Internal Revenue Code with the modifications provided in Article 9 of this chapter and subject to allocation and apportionment as provided in Article 17 of this chapter.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-640. Use of monies appropriated to Commissioners of Pilotage.

Monies appropriated to the Commissioners of Pilotage must be used as a grant to the Maritime Association of the Port of Charleston for the purpose of supporting the establishment of a maritime exchange system to provide vessel information services and is not taxable income for purposes of this chapter.
HISTORY: 2000 Act No. 406, Section 3, eff June 8, 2000.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-1110. Modifications of gross, adjusted gross, and taxable income calculated under Internal Revenue Code.

For South Carolina income tax purposes, gross income, adjusted gross income, and taxable income as calculated under the Internal Revenue Code are modified as provided in this article and subject to allocation and apportionment as provided in Article 17 of this chapter.
HISTORY: 1995 Act No. 76, Section 1; 2005 Act No. 145, Section 9, eff June 7, 2005; 2018 Act No. 265 (S.1043), Section 4.B, eff October 3, 2018.
Editor's Note
2005 Act No. 145, Section 42, provides as follows:
"Notwithstanding the ratification of another act during the 2004-2005 Session of the General Assembly affecting the sections of the 1976 Code amended in Sections 7, 8, 9, and 10 of this act, the ratification of this act is deemed to be the last action of the General Assembly regarding those code sections."
2018 Act No. 265, Section 4.C, provides as follows:
"C. This SECTION takes effect upon approval by the Governor and first applies to tax years beginning after 2017."
Effect of Amendment
2018 Act No. 265, Section 4.B, deleted the paragraph designators and deleted (B), which had related to elections to determine taxable income from certain international shipping activities.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-1150. Net capital gain; deduction from taxable income for individuals, estates, and trusts.

(A) Individuals, estates, and trusts are allowed a deduction from South Carolina taxable income equal to forty-four percent of net capital gain recognized in this State during a taxable year. In the case of estates and trusts, the deduction is applicable only to income taxed to the estate or trust or individual beneficiaries and not income passed through to nonindividual beneficiaries.
(B)(1) South Carolina income includes capital gains and losses from partnerships and "S" Corporations.
(2) Net capital gain is as defined in Internal Revenue Code, Section 1222 and related sections.
HISTORY: 1995 Act No. 76, Section 1; 2000 Act No. 387, Part II, Section 40B, eff June 30, 2000 and applicable for taxable years beginning after 2000.
Editor's Note
2000 Act No. 387, Part II, Section 40A., provides as follows:
"This section may be cited as the South Carolina Capital Gain Holding Period Reform Act."
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-1160. Dependent deduction for resident individual.

A resident individual taxpayer is allowed an additional deduction for each dependent eligible for the South Carolina dependent exemption pursuant to Section 12-6-1140 who has not yet attained the age of six years during the applicable tax year. The deduction allowed by this section is an amount equal to the South Carolina dependent exemption allowed pursuant to Section 12-6-1140.
HISTORY: 1995 Act No. 76, Section 1; 2018 Act No. 266 (H.5341), Section 6, eff October 3, 2018.
Editor's Note
2018 Act No. 266, Sections 1, 7, 8, and 9, provide as follows:
"SECTION 1. This act may be referred to as the 'South Carolina Taxpayer Protection and Relief Act'."
"SECTION 7. The Department of Revenue shall take actions necessary to implement the provisions of this act and take the appropriate actions to educate taxpayers of the amendments contained within this act, especially those, if any, that impact filing requirements or determination of taxable income.
"SECTION 8. By January 15, 2025, the Department of Revenue, in coordination with the Revenue and Fiscal Affairs Office, shall deliver a report to the General Assembly that specifies the many provisions of the Tax Cuts and Jobs Act of 2017 that expire after tax year 2025.
"SECTION 9. Except where specified otherwise, this act takes effect upon approval by the Governor and first applies to tax years beginning after 2017."
Effect of Amendment
2018 Act No. 266, Section 6, rewrote the section, providing that the amount of the dependent exemption is equal to the amount of the South Carolina dependent exemption.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-1171. Military retirement income deduction; definitions; surviving spouse.

(A) An individual taxpayer may deduct all military retirement income that is included in South Carolina taxable income.
(B) The term "retirement income", as used in this section, means the total of all otherwise taxable income not subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from a qualified military retirement plan. For purposes of a surviving spouse, "retirement income" also includes a retirement benefit plan and dependent indemnity compensation related to the deceased spouse's military service.
(C) A surviving spouse receiving military retirement income that is attributable to the deceased spouse shall apply this deduction in the same manner that the deduction applied to the deceased spouse. If the surviving spouse also has another retirement income, an additional retirement exclusion is allowed.
(D) The department may require the taxpayer to provide information necessary for proper administration of this subsection.
HISTORY: 2016 Act No. 272 (H.3147), Section 1.B, eff June 7, 2016; 2022 Act No. 156 (H.3247), Section 2, eff May 13, 2022; 2022 Act No. 228 (S.1087), Section 3.A, eff June 17, 2022.
Code Commissioner's Note
At the direction of the Code Commissioner, the amendments to (A) made by 2022 Act No. 156 and 2022 Act No. 228 were read together.
Editor's Note
2016 Act No. 272, Section 1.C, provides as follows:
"C. Notwithstanding the deduction allowed pursuant to Section 12-6-1171(A)(1), beginning in tax year 2016, the amount of the deduction shall be five thousand nine hundred dollars, and it shall increase by two thousand nine hundred dollars every year, until it is completely phased in in 2020. Notwithstanding the deduction allowed pursuant to Section 12-6-1171(A)(2), beginning in tax year 2016, the amount of the deduction shall be eighteen thousand dollars, and it shall increase by three thousand dollars every year, until it is completely phased in in 2020."
2022 Act No. 156, Sections 1 and 3, provide as follows:
"SECTION 1. This act shall be known and may be cited as the 'Workforce Enhancement and Military Recognition Act'."
"SECTION 3. This act takes effect upon approval by the Governor and first applies to tax years beginning after 2021."
2022 Act No. 228, Sections 1 and 3.B provide as follows:
"SECTION 1. This act may be cited as the 'Comprehensive Tax Cut Act of 2022'."
"[SECTION 3.]B. This SECTION takes effect upon approval by the Governor and first applies to tax years beginning after 2021."
Effect of Amendment
2022 Act No. 156, Section 2, rewrote (A).
2022 Act No. 228, Section 3.A, rewrote (A).
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-1175. Wages paid to unauthorized alien; business expense deduction disallowed.

(A) As used in this section:
(1) "Unauthorized alien" means an unauthorized alien as defined by 8 USC Section 1324A(h)(3).
(2) "Labor services" means the physical performance of services in this State.
(B) On or after January 1, 2009, no wages or remuneration for labor services to an individual of six hundred dollars or more per annum may be claimed and allowed as a deductible business expense for state income tax purposes by a taxpayer if the individual is an unauthorized alien. The provisions of this subsection shall apply whether or not an Internal Revenue Service Form 1099 is issued in conjunction with the wages or remuneration.
(C) This section shall not apply to a business domiciled in this State that is exempt from compliance with federal employment verification procedures under federal law.
(D) This section shall not apply to an individual hired by the taxpayer prior to January 1, 2009.
(E) This section shall not apply to a taxpayer where the individual being paid is not directly compensated or employed by said taxpayer.
(F) This section shall not apply to wages or remuneration paid for labor services to any individual whose employment authorization status was verified in accordance with the provisions of Section 41-8-20.
(G) A taxpayer must not be held liable for failing to comply with the provisions of this section, if, based on a reasonable investigation of the individual, the taxpayer did not know or should not have known that the individual was an unauthorized alien. For purposes of this subsection, a taxpayer shall be deemed to have conducted a reasonable investigation if the individual met the requirements of subsection (F), and the information provided by the individual to the taxpayer was facially correct.
(H) The Director of the South Carolina Department of Revenue is authorized to prescribe forms and promulgate regulations deemed necessary in order to administer and effectuate this section in accordance with the provisions of Chapter 23 of Title 1 of the South Carolina Code of Laws.
(I) The Director of the Department of Revenue shall send written notice of this section to all South Carolina employers no later than July 1, 2008.
HISTORY: 2008 Act No. 280, Section 7, eff June 4, 2008.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-1190. Cost recovery of retirement benefits from retirement systems maintained by the State or its political subdivisions.

Retirees receiving benefits from the various state retirement systems or any other retirement plan maintained by a political subdivision of this State who have recovered all or a part of their recoverable costs in their retirement benefits for federal income tax purposes before January 1, 1989, are considered to have recovered those costs for purposes of the state income tax. For taxable years beginning after 1988, cost recovery of these retirement benefits is the same for both state and federal income tax purposes.
HISTORY: 1995 Act No. 76, Section 1.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-1220. Individual Development Account.

Families on AFDC and those not receiving welfare but whose household income falls below one hundred eighty-five percent of the federal poverty level may own an Individual Development Account. Contributions to and interest on these accounts are tax free, and a recipient may accrue up to ten thousand dollars in the account. Withdrawals used for education or job training or to start a business or to purchase a home are tax free. Withdrawals for other purposes are not tax free.
The State shall seek a waiver from the federal government providing that no lump sum payment of ten thousand dollars or less deposited in an Individual Development Account within thirty days of receipt will make the family ineligible for receipt of AFDC.
HISTORY: 1995 Act No. 102, Part IV, Section 4.
2023 South Carolina Code of Laws › Title 12 - Taxation › Chapter 6 - South Carolina Income Tax Act › Section 12-6-1610. Definitions.

As used in this article:
(1) "Qualified catastrophe expenses" mean expenses paid or incurred by reason of a major disaster that has been declared by the Governor to be an emergency by executive order.
(2) "Qualified deductible" means the deductible for the individual's homeowner's policy for a taxpayer's legal residence.
(3) "Legal residence" means the taxpayer's legal residence pursuant to Section 12-43-220(c).
HISTORY: 2007 Act No. 78, Section 2, eff June 11, 2007, applicable to taxable years beginning after December 31, 2006.