SC Senate Passes Income Tax Reform Bill

The Senate passed H. 4216, the South Carolina Income Tax Reform bill. The bill as amended offers the following:

Delivers $309 million in income tax relief in year one.

Reduces the top income tax rate from 6% to 5.21%.

Shifts South Carolina’s income tax base from federal taxable income to adjusted gross income (AGI).

Includes a long-term mechanism to reduce the top rate by $200 million annually.

The bill was sent back to the full House who must decide whether to concur with the Senate changes or not.