The bill H. 3564 proposes significant changes to the South Carolina tax code by eliminating the individual income tax for individuals, estates, and trusts. It introduces a new section, 12-6-511, which states that starting from tax years after 2024, no tax will be imposed on the taxable income of these entities. Additionally, the bill removes any related requirements for tax filings and withholdings, effectively streamlining the tax process for individuals and entities affected by this change.

To facilitate this elimination, the bill repeals several existing sections of the South Carolina Code, specifically sections 12-6-510, 12-6-515, 12-6-520, and 12-6-545, which pertain to tax rates, income tax brackets, and annual adjustments related to income tax. The bill is set to take effect upon approval by the Governor, marking a significant shift in the state's approach to income taxation.

Statutes affected:
12/05/2024: 12-6-511, 12-6-510, 12-6-515, 12-6-520, 12-6-545
12/12/2024: 25-11-100
02/12/2025: 25-11-100
02/13/2025: 25-11-100
02/20/2025: 25-11-100
Latest Version: 12-6-511, 12-6-510, 12-6-515, 12-6-520, 12-6-545