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Bill

Bill > S0688

SC S0688

SC S0688
DEW UI Tax Code

summary

Introduced
01/13/2026
In Committee
04/14/2026
Crossed Over
04/01/2026
Passed
05/22/2026
Dead
Signed/Enacted/Adopted
05/22/2026

Introduced Session

126th General Assembly

Bill Summary

Amend The South Carolina Code Of Laws By Amending Section 41-31-5, Relating To Contributions And Payments To The Unemployment Trust Fund Definitions, So As To Change The Lookback Period For The Benefit Ratio; By Amending Section 41-31-45, Relating To Debt Status Estimates, So As To Provide For A Solvency Target For The Fund; By Amending Section 41-31-60, Relating To The Tax Rate When A Delinquent Report Is Received, So As To Change The Penalty For An Outstanding Lien; By Amending Section 41-31-350, Relating To The Penalty For Failure To File A Report, So As To Remove The Cap On The Penalty For Failing To File A Report; By Amending Section 41-31-370, Relating To Interest On Unpaid Contributions, So As To Remove The Cap On The Penalty For Failure To Pay Contributions; By Amending Section 12-37-220, Relating To Property Tax Exemptions, So As To Exempt The First Ten Thousand Dollars Of Net Depreciated Value Of Business Personal Property Owned By A Small Business; By Amending Section 12-37-900, Relating To Property Tax Returns, So As To Provide That A Taxpayer Is Not Required To Return Business Personal Property For Taxation If The Taxpayer Has Less Than Ten Thousand Dollars Of Net Depreciated Value Of Business Personal Property; By Adding Section 12-37-980 So As To Require That All Business Personal Property Required To Be Returned For Taxation Be Returned To The Department Of Revenue; And By Amending Section 12-20-50, Relating To The License Tax On Corporations, So As To Provide That, Under Certain Circumstances, The Fee Does Not Apply To Any Portion Of The First Fifty Million Dollars Of Certain Capital Stock And Paid-in Or Capital Surplus. - Ratified Title

AI Summary

This bill makes several changes to South Carolina law, primarily concerning unemployment insurance taxes and business property taxes. It adjusts the "lookback period" used to calculate an employer's "benefit ratio," which is a factor in determining their unemployment insurance tax rate, by gradually increasing the number of calendar quarters considered from twelve to twenty by tax year 2028. The bill also establishes a "solvency target" for the Unemployment Trust Fund, which is a measure of the fund's adequacy to pay benefits, and introduces a "solvency surcharge" if the fund falls below this target. Penalties for delinquent unemployment tax reports and payments are modified by removing caps on certain penalties and adjusting how outstanding tax liens are handled. For small businesses, defined as those with fewer than one hundred employees or less than ten million dollars in gross annual sales, the bill exempts the first ten thousand dollars of their business personal property's net depreciated value from property taxes, and taxpayers with less than this amount of net depreciated business personal property will not be required to file a return for it. Additionally, all business personal property subject to taxation must now be returned to the Department of Revenue, and corporations with their headquarters in South Carolina may exclude the first fifty million dollars of certain equity contributions from their capital surplus when calculating their annual license fee, provided they meet specific criteria and obtain certification from the South Carolina Research Authority.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (2)

Last Action

Signed By Governor (on 05/22/2026)

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