COLUMBIA, SC (WSPA) – Another state income-tax cut bill, another unanimous vote.
It’s likely some South Carolina tax payers will see some form of state income-tax relief in the near future.
A few weeks after the South Carolina House passed their own state income tax cut bill, the South Carolina Senate passed their own proposal.
Senate Finance Chairman Senator Harvey Peeler (R-Cherokee) filed the Comprehensive Tax Cut of 2022 last month. On the Senate floor following the unanimous vote he said, “I’m like a dog playing poker. When I get dealt a good hand, my tail starts wagging.”
The legislation would cut the state’s highest income tax rate from 7% to 5.7% right away. It would also cut South Carolina’s manufacturing property tax from 9% to 6%. This would cost the state about $1 billion.
The other $1 billion would be used to send out one-time rebates to tax payers. Every tax filer in South Carolina would get a rebate of at least $100. Taxpayers who actually end up paying state income tax would be able to get up to $700 back.
Lawmakers said the state’s surplus money is helping make these rebates and cuts possible.
Sen. Tom Davis (R-Beaufort) said, “There is a substantial amount of money in one time dollars not only from General Fund revenues but also the federal government…given the robust growth, recurring revenues and given all that one time money, these tax cuts were not unreasonable in that context.”
The House’s income tax-cut proposal would lower the state’s highest rate from 7% to 6.5% over time. It would also collapse the middle tax brackets to 3%.
The Senate’s proposal has been sent to the House.