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VIOLENT CRIME in 1992, South Carolina Ranked Seventh in the Nation in Terms of Violent Crime

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VIOLENT CRIME in 1992, South Carolina Ranked Seventh in the Nation in Terms of Violent Crime State of South Carolina Department of Revenue and Taxation 301 Gervais Street, P.O. Box 125, Columbia, South Carolina, 29214 " REVENUE EFFECTS OF TAX LAW CHANGES FROM JANUARY 1987 TO DECEMBER 1993 The attached table provides estimates of the revenue gains or losses from general tax law changes enacted by the General Assembly from January 1987 through December 1993. These estimates, in many cases, are derived from historical data or forecasts generated by the Department of Revenue. When information on the revenue impact of specific legislation is not available, no estimate was made and undeterminable is indicated in the table. In this analysis, we have concentrated on tax law changes that affect the majority of South Carolinians, specifically in the areas of individual and corporate income, sales, and transportation taxes. The net result of these tax increases and decreases is that South Carolina taxpayer's pocketbooks were spared $241 million in payments to the state government. Individual income taxpayers liabilities were reduced by $262 million over the seven year period, while corporations tax bite was reduced by a cumulative total of $225 million. Sales and use taxes, paid by all South Carolinians, were also reduced by $41 million during the last seven years. Transportation taxes and fees only partially offset these tax decreases with increases in the gas tax being used to fund road and bridge construction in the state. FISCAL NPACTS OF GENERAL TAX CHANGES FROM JANJARY 1987 TO DECEMBER 1993 f)'88-87 EY87-88 EY88-89 f)'89-9Q EY90-91 f)'91-92 EY92-93 fY93-94 IQI& .INDIVIDUAL INCOME TA)( C<HORMlY (lncntmenlal gao,bss) (7,800,000) (7,800,000) (7,800,000) (7,280,000) (5,400,000) (1,487,818) (1,487,818) (2,740,049) (41,795,285) done ea:h )'ear since 1985 Repeal& Brachat (1-1-87) 0 20,000,000 25,206,914 27,879,828 28,010,290 28,500,038 30,194,943 31,370,864 191,162,676 Two wage eamar Cl9dlt (1-1-87) 0 (25,052,483) (29,784,974) (28,800, 131) (32.192, 157) (30,492,754) (31,179,277) (31,500,000) (208,781,776) Capital gains deduction I'8Sionld for 0 0 0 0 (5,800,000) 0 0 0 (5,600,000) gains 1/W7 to 8/fJ7 (8-8-88) ll1d (8-9-89) Raduce lowerbractet from a 0 0 0 0 (19,551,737) (19,893,590) (21,078,888) (21,897,485) (82,419,460) to z.mr. (1-1-90) Raduce lowerbraclet from 2.75,. 0 0 0 0 0 (8.808,447) (9,118,275) (9,473,380) (27, 198,101) to 2.5% (1...: 1-91) Ad~t lax braclels for lnllaiJon (1-1-89) 0 0 0 (1,501,920) (2,503.200) (4,172,000) (7,800,000) (3,800,000) (19,377,120) Capital gains 18ductlon (8-8-89) 0 0 0 0 (8.930,000) (18,310,000) (18,310,000) (18,310,000) (63,860,000) Samlc rhers deduction (5-18-89) 0 0 0 (2,559) 0 (83) 0 0 (2,622) Atllrement exclusion lncntased to $10,000 0 0 0 0 0 0 0 (4,381,000) (4,381,000) for certain mp8)9rs (8-12-91) Cradlt for In-home nursing C8r8 (1-1-92) !l !l !l !l !l !l !l (10,000) (10,000) Total Individual Income (7,800,000) (12,852,483) (12,358,080) (9,504,982) (48, 188,804) (54,482,435) (58,578,895) (60,541,049) (262,262,708) CORPORAJE INCQME TAJ( Corporals lax rate reduced from n. to 0 0 (17,000,000) (34!~.000) (34,000,000) (34,000,000) (34,000,000) (34,000,000) (187,000,000) 5% (1-1-88) ad (1-1-89) SavlrQs ad los1 tax rate raducllon 0 0 (285,221) (173,219) (438,492) (1,029,338) (1,504,629) (1,333,360) (11,754,012) from8'lftto8'lft (1-1-88) Jobs lax Cl9dlt 8lf)MSion to al 0 0 (38,800) (215,790) (883,344) (1,200,000) (1,800,000) (2,000,000) (5,935,734) COll1lles (B-22-87) lnfraslrUCIUI8 coratruclloncredlt (1-1-88) 0 0 0 (160,000) (479,000) (500,000) (500,000) (500,000) (2, 159,000) Corporal9 heatquarters credit (8-27-88) 0 0 (489,498) (1,769,435) (2,470,909) (3.000,000) (4,000,000) (4,200,000) {15,929,842) Palmetto Seed Capital Cradlt (8-7-88) 0 0 0 (300,000) (1,033,500) (450,000) (775,000) (1,250,000) (3,808,500) Annuall.lcen9e Fee lncnta!led to $15 (7-1-88) 0 0 450,000 450,000 450,000 450,000 450,000 450,000 2,700,000 Mfnlnun license - for ullfilles ad 0 0 0 600,000 600,000 600,000 600,000 600,000 3,000,000 CO-q:JS Increased from $10 to $25 (1-1-89) <Hd C8l8 Cl9dlt foi' 8rJ1lk¥ti'S !l !l !l !l !l (1.200,000) (1,500,000) (1,500,000) (4,200,000) Total Corporate lncoma 0 0 (17,361,319) (35,588,444) (38,253,245) (40,329,336) (42,829,629) (43,733,360) (225,087,088) FISCAL NPACTS OF GENERAL TAX CHANGES FROM JANUARY 1987 TO DECEMBER 1993 FY88-87 FVBZ-88 FYaa-89 FV89-90 FV90-91 FY91-92 FV92-93 Fy93-94 IQI& sALE9 oo use INC Kerosene for residential pu!p088S 0 (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (70,000) . eX8rJ1ll9d (3-31-87) Meals 10 eldettyAtlsdlled by llOI !pi'Oftt 0 (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) {700,000) groups eX8rJ1lted (8-1-87) Mealslgolf pacluQes eX8rJ1ll9d from Ur.telltrn*lllble acconrnodallons tax (8-22-87) Sales of assets when enllre business loti 0 0 0 (75.000) (75,000) (75,000) (75.000) (75,000) (375,000) exen.,at (7-1-87) Sales tax paid 10 another statB ls Cl8dll 0 (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (10,500,000) agalnsttaxduelnS.C. (1-1-88) Muleuns exen.,t from Lll8 tax on certain 0 0 (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (60,000) exhibits (7 -1-88) Conlalners/Chasls eX8111*d (8-8-88) 0 0 (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (600,000) Dental prosthetics eJempiBd (7 -1-89) 0 0 0 (300,000) (400,000) (500,000) (600,000) (600,000) (2,400,000) Meclcald or Meclcare wndor pay only 0 0 0 (50,000) (50,000) (50,000) (50,000) (50,000) (250,000) on 8'I1CU1t ralnt)lJI98d NollprOIII orgll'llz.allons exen.,tedon 0 0 0 (1,000,000) (2,000,000) (2, 100,000) (2.2J5,000) (2,282,000) (9,587,000) oertalnsales (7-1-89) Elempt sales of electricity 10 fadenll 0 0 0 (2,900,000). (2,900,000) (2,900,000) (2,900,000) (2,900,000) (14,500,000) govemment (7-1-89) . SlfJPIIes~ for motion 0 0 0 0 0 (50,000) (50,000) (50,000) (150,000) plclures (7-1-91) Electricity 10 lnlgatB crops n commerdal 0 0 0 0 0 (3.000,000) (3.120,000) (3,244,800) (9,364,800) potJtry hol.Birv eJemplad (7 -1-91) BulldlrQ malarlals for comrnerdal potJtry 0 0 0 0 0 (360,000) (374,400) (389,376) (1,123,776) ad flwsl0clc(7-1-91) W• memot1als eX8111Jted (8-12-91) 0 0 0 0 0 (8,000) 0 0 (8,000) S300 Cap on R&D equipment (!5-30-91) Ur.tellt~ 0 Maxlmun dlscomt 18duced 10 $:!.000 0 0 0 0 0 0 4,448,000 4,625,920 9,073,920 from $10,000 per fiscal year (7 -1-92) E'stlmatBd tax mpealed (7 -1-92) Noeflfct 0 900/976 subject to 10% sales tax (7 -1-92) 0 0 0 0 0 0 (8,500) (8,500) (17,000) FISCAL IMPACTS OF GENERAL TAX CHANGES FROM JANUARY 1987 TO DECEMBER 1993 fY88-87 Ft87-88 FY88-89 FY89-9Q FY90-91 FY 91-92 FY 92-93 fY 93-94 TOTAL ProcassorseX8111)ted from sales tax on 0 0 0 0 0 0 (150,000) (150,000) (:m,ooo) electricity (7-1-92) W&na'11y raplacamenl parts eX8f'l1)l (4-8-92) 0 0 0 0 0 0 (31,000) (3),000) (60,000) Salas ad l.B8 tax on religious p\IJs 0 0 0 0 0 0 (800,000) 400,000 (400,000) DlsCCU111ncnt898d for out-of-stale voU1tay 0 0 0 0 0 0 (7,000) (7,000) ralalle18 raglstarlug In S.C. (7 -1-93) Leglsla!Mt docunenlseJl8111)1 (7-1-93 lhlelltnnh!ble I I I I I I I . 108-3-94) Total Sales ... Use 0 (1,810,000) (1,73),000) (8.045,000) (7,145,000) (10,783,000) (7,834,900) (8.480,756) (41,398,656) JRANSPaJTADONTAXES NfD FEES GIB taxlncnt898d from 131015 Cl8l1tl (7-1-87) 0 34,324,788 35,212,474 38,081,814 38,087,418 38,589,080 37,813,362 38,365,63) 254,234,542 GIB tax to 18 cents (1-1-89) 0 0 8,803,119 18,o:JJ,907 18,033,707 18,294,53) 18,808,881 19,182,815 101,151,759 GIB tax Cl8dll for non-highway l.B8 (5-9-88) 0 0 (543.891) (575,548) (009,043) (844,490) (682.000) (702.000) (3, 756,969) Raglstl41on .
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