COLOMBIA, South Carolina (WSPA) – Another state income tax reduction bill, another unanimous vote.
It is likely that some South Carolina taxpayers will see some form of income tax relief in the near future.
A few weeks after the House of South Carolina adopted his state income tax reduction billthe South Carolina Senate passed its own proposal.
Senate Finance Chairman Sen. Harvey Peeler (R-Cherokee) tabled the 2022 full tax reduction last month. On the Senate floor after the unanimous vote, he said, “I’m like a dog playing poker. When I get a good hand, my tail starts wagging.
The legislation would immediately reduce the state’s top income tax rate from 7% to 5.7%. It would also reduce the South Carolina manufacturing property tax from 9% to 6%. It would cost the state about $1 billion.
The other $1 billion would be used to send one-time refunds to taxpayers. Every filer in South Carolina would get a refund of at least $100. Taxpayers who end up paying state income tax could recoup up to $700.
Lawmakers said excess state money helps make those rebates and reductions possible.
Senator Tom Davis (R-Beaufort) said, “There is a substantial amount of dollar money not only coming from General Fund revenues, but also from the federal government…given the robust growth, recurring revenues and account given all that one-time money, those tax cuts weren’t unreasonable in that context.
The House income tax cut proposal would raise the state’s top rate from 7% to 6.5% over time. It would also collapse the average tax brackets to 3%.
The Senate’s proposal was sent to the House.