Funding South Carolina’s Future
This report outlines key features of the tax system currently in place in South Carolina. Its purpose is to generate discussion and identify issues of particular importance with regards to the impact of comprehensive tax reform legislation. It is organized by key issues affecting the impact of the tax on economic agents and the economy.
General Fund Revenues are primarily composed of three major tax revenue sources—Individual Income, Sales and Use, and Corporate Income. For Fiscal Year (FY) 2013-2014, the amounts and percentage makeup of these sources are featured in the report.
When compared to other Southeastern States, South Carolina’s primary revenue sources are largely similar. Versus the average, South Carolina collects a larger percentage of revenue from personal income tax rather than sales or corporate income tax. Removing states which do not levy personal income tax (i.e.-Florida, Tennessee, and Texas), South Carolina collects less on average from personal income tax and more from sales tax. In both cases, South Carolina collects less as a percentage in corporate income tax.