Legislators convene this week to take up tax conformity

Legislators convene this week to take up tax conformity
October 01 16:33 2018 Print This Article

The South Carolina General Assembly will convene this week to ensure conformity between the state income tax code and the federal tax code, which was updated in December 2017. Tax conformity legislation was offered by the House during the regular 2018 session but was not acted upon by the Senate. Governor Henry McMaster sent Senate President Hugh Leatherman a letter in April stating, “Failure to conform our state tax code before the end of this year will create confusion, frustration and chaos when South Carolinians attempt to file their taxes next year.”

The Senate will take up the tax conformity legislation Tuesday. The House will convene Wednesday. In January, the South Carolina Revenue and Fiscal Affairs Office projected that the federal Tax Cuts and Jobs Act would result in state residents paying $1.62 billion less in federal income taxes but that state income tax payers would be paying $180 million more in state taxes in 2018 without a conformity measure in place.

Legislators will also elect one of the seven members of state’s utility regulatory authority, the Public Service Commission (PSC). The PSC will vote later this year about whether to allow the proposed merger between Virginia-based Dominion Energy and SCANA Corporation to take place. If is not clear whether the House or Senate plans to override any of McMaster’s budget vetoes during the special session.