Thirteen States Join SC in Passing Tax Reform This Year
According to a study compiled by the Tax Foundation, thirteen states joined South Carolina this year in passing tax reform/relief during their respective legislative sessions. Ten states joined South Carolina in passing income tax reductions, with a handful of those states joining South Carolina in modernizing their income tax systems through the collapsing of brackets.
As previously noted, S.1087 modernized and simplified South Carolina’s income tax system by collapsing our six existing individual income tax brackets down to three and reduced the top marginal individual income tax rate from 7% to 6.5% effective immediately with a further reduction to 6% over the next five years with triggers to prevent the automatic annual decrease if the state’s general fund revenue does not increase. South Carolina’s legislation also effectively reduced the industrial property tax rate from 9% to 6% by increasing the manufacturing property tax exemption. Due to this reduction, some manufacturers will see annual property tax savings of over $100,000.
Eight states passed corporate income tax reductions this year, although none were located in the Southeast. Ten states joined South Carolina in returning money to taxpayers by passing income tax rebates this session. It is evident that record revenue collections allowed many states to enact tax reform and relief.
