general fund revenue: trends & analysis...fy 08 fy 09 fy 10 fy 11 fy 12 fy 13 fy 14 fy 15 fy 16...
TRANSCRIPT
GENERAL FUND REVENUE:
TRENDS & ANALYSIS
REQUESTED BY
HOUSE TAX POLICY REVIEW COMMITTEE
By
Frank A. Rainwater
Executive Director
South Carolina Revenue and Fiscal Affairs Office
1000 Assembly Street
Rembert Dennis Building, Suite 402
Columbia, SC 29201
(803) 734-2265
www.rfa.sc.gov
POPULATION
2
3
6% 5% 4% 3% 2% 1% 0% 1% 2% 3% 4% 5% 6%
under 5
5 to 9
10 to 14
15 to 19
20 to 24
25 to 29
30 to 34
35 to 39
40 to 44
45 to 49
50 to 54
55 to 59
60 to 64
65 to 69
70 to 74
75 to 79
80 to 84
85+
SOUTH CAROLINA POPULATION PYRAMID1970
FEMALE MALE
Source: Revenue and Fiscal Affairs Office: CPA 1/20/2016
4
6% 5% 4% 3% 2% 1% 0% 1% 2% 3% 4% 5% 6%
under 5
5 to 9
10 to 14
15 to 19
20 to 24
25 to 29
30 to 34
35 to 39
40 to 44
45 to 49
50 to 54
55 to 59
60 to 64
65 to 69
70 to 74
75 to 79
80 to 84
85+
SOUTH CAROLINA POPULATION PYRAMIDEstimated 2020
FEMALE MALE
Source: Revenue and Fiscal Affairs Office: CPA 1/20/2016
5Source: U.S. Census Bureau, Population Estimates; RFA LJ-08/22/2016
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000G
reen
ville
Rich
land
Char
lest
onHo
rry
Spar
tanb
urg
Lexi
ngto
nYo
rkBe
rkel
eyAn
ders
onBe
aufo
rtAi
ken
Dorc
hest
erFl
oren
cePi
cken
sSu
mte
rO
rang
ebur
gLa
ncas
ter
Oco
nee
Gre
enw
ood
Darli
ngto
nLa
uren
sKe
rsha
wG
eorg
etow
nCh
erok
eeCh
este
rfie
ldN
ewbe
rry
Colle
ton
Clar
endo
nW
illia
msb
urg
Ches
ter
Mar
ion
Dillo
nJa
sper
Uni
onM
arlb
oro
Edge
field
Abbe
ville
Fairf
ield
Barn
wel
lSa
luda
Ham
pton Le
eBa
mbe
rgCa
lhou
nM
cCor
mic
kAl
lend
ale
Popu
latio
n SOUTH CAROLINA POPULATION BY COUNTY
Estimates as of July 1, 2015
Notes: Population• S.C. is growing older. The average age is expected to
increase from 24.8 in 1970 to 39.8 in 2020.• In 1970, 41.5 percent of the population was age 19 or
below. By 2020, that population is expected to decrease to 24.4 percent of the total.
• In 1970, 7.4 percent of the population was age 65 or higher. By 2020, that population is expected to increase to 18.5 percent of the total.
• The impact on the economy and revenue will be different in the next twenty to thirty years than over the past few years.
• 49.6 percent of the state’s population is in the top seven counties.
6
PERSONAL INCOME
7
$0
$50,000
$100,000
$150,000
$200,000
$250,000
FY 8
0FY
81
FY 8
2FY
83
FY 8
4FY
85
FY 8
6FY
87
FY 8
8FY
89
FY 9
0FY
91
FY 9
2FY
93
FY 9
4FY
95
FY 9
6FY
97
FY 9
8FY
99
FY 0
0FY
01
FY 0
2FY
03
FY 0
4FY
05
FY 0
6FY
07
FY 0
8FY
09
FY 1
0FY
11
FY 1
2FY
13
FY 1
4FY
15
FY 1
6 e.
FY 1
7 e.
(Mill
ions
of D
olla
rs)
Fiscal Year
SOUTH CAROLINA TOTAL PERSONAL INCOME
8Source: U.S. Department of Commerce, Bureau of Economic Analysis; RFA 171-LJ/08/19/2016
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000G
reen
ville
Char
lest
onRi
chla
ndLe
ton
Spar
tanb
urg
Horr
yYo
rkBe
aufo
rtBe
rkel
eyAn
ders
onAi
ken
Flor
ence
Dorc
hest
erPi
cken
sSu
mte
rLa
ncas
ter
Oco
nee
Ora
ngeb
urg
Geo
rget
own
Gre
enw
ood
Kers
haw
Darli
ngto
nLa
uren
sCh
erok
eeCh
este
rfie
ldN
ewbe
rry
Colle
ton
Ches
ter
Mar
ion
Clar
endo
nW
illia
msb
urg
Uni
onEd
gefie
ldDi
llon
Abbe
ville
Fairf
ield
Mar
lbor
oJa
sper
Salu
daBa
rnw
ell
Ham
pton
Calh
oun
Lee
Bam
berg
McC
orm
ick
Alle
ndal
e
(Mill
ions
of D
olla
rs)
TOTAL SOUTH CAROLINA PERSONAL INCOME2014 by County
9Source: U.S. Department of Commerce, Bureau of Economic Analysis; RFA 171B-LJ/08/22/2016
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2010 2011 2012 2013 2014 2015 2016 2017
Perc
enta
ge G
row
th
Calendar Year and Quarter
SC PERSONAL INCOME GROWTH RATESActuals and Estimates - June 2016
10Source: U.S. Department of Commerce, Bureau of Economic Analysis; RFA -LJ/08/19/2016
Source: US Department of Commerce, Bureau of Economic Analysis RFA-LJ/08/19/16 11
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
FY 8
0FY
81
FY 8
2FY
83
FY 8
4FY
85
FY 8
6FY
87
FY 8
8FY
89
FY 9
0FY
91
FY 9
2FY
93
FY 9
4FY
95
FY 9
6FY
97
FY 9
8FY
99
FY 0
0FY
01
FY 0
2FY
03
FY 0
4FY
05
FY 0
6FY
07
FY 0
8FY
09
FY 1
0FY
11
FY 1
2FY
13
FY 1
4FY
15
FY 1
6 es
tFY
17
est
FY 1
8 es
tFY
19
est
FY 2
0 es
tFY
21
est
FY 2
2 es
tFY
23
est
FY 2
4 es
tFY
25
est
FY 2
6 es
t
SC PERSONAL INCOME FY GROWTH RATESActuals, Estimates, and Averages
10 Year AVG4.1%
20 Year AVG4.8%
30 Year AVG5.4%
Long Term EST4.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1980 1990 2000 2010 2015
(Per
cent
)
Calendar Year
SHARES OF PERSONAL INCOME COMPONENTS In South Carolina
Wages & Salaries Dividends, Interest, & Rent Transfer Payments Other Personal Income
Source: U.S. Department of Commerce, Bureau of Economic Analysis, Washington, D.C. BEA/RWM/09/14/15
Notes: Personal Income• S.C. personal income is growing at close to its 20-year
average.• S.C. is experiencing a shift in the components of
personal income.• Wages as a component of total personal income have
decreased from 62 percent to 48 percent.• The top seven counties account for 53 percent of
personal income in S.C.
13
GENERAL FUND APPROPRIATIONS
14
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7
(Mill
ions
of D
olla
rs)
GENERAL FUND APPROPRIATIONS FY 1979-80 to FY 2016-17
15Source: S.C. Revenue and Fiscal Affairs Office –JS/08/24/16
16Source: S.C. Revenue and Fiscal Affairs Office –JS/08/23/16
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
$2,750
$3,000
SDE
HHS
High
er E
duca
tion
Corr
ectio
ns/D
JJ
Aid
to S
ubdi
visio
ns
DDSN
DMH
Debt
Ser
vice DS
S
CRF
DHEC
All O
ther
Age
ncie
s
(Mill
ions
of D
olla
rs)
FY 2016-17 GENERAL FUND APPROPRIATIONS
Notes: General Fund Appropriations• The two largest General Fund appropriations are for
the Department of Education and Health and Human Services. These two agencies account for 55 percent of total General Fund appropriations.
17
GENERAL FUND REVENUE
18
19
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7 e.
(Mill
ions
of D
olla
rs)
Fiscal Year
SOUTH CAROLINA GENERAL FUND REVENUE
Source: S.C. Revenue and Fiscal Affairs Office LJ/08/24/16
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7 e.
Perc
enta
ge o
f Per
sona
l Inc
ome
Fiscal Year
SOUTH CAROLINA GENERAL FUND REVENUEas a Percentage of Total Personal Income
20Sources U.S. Department of Commerce, Bureau of Economic Analysis; S.C. Revenue and Fiscal Affairs Office LJ/08/22/16
Source: S.C. Revenue and Fiscal Affairs Office, 28-LJ/08/19/16 21
4.7
-0.1
-3.1
16.4
2.6
1.0
9.7
20.1
0.7
2.5
9.3
6.2
12.2
18.1
11.4
3.9
13.4
19.7
10.5
15.2
26.8
11.9
6.1
11.4
13.815.1
11.812.0
7.05.6
9.2
13.1
7.4
4.8
7.3
9.1
6.9
4.8
0.31.1
9.99.6
5.2
2.7
5.65.6
8.7
2.31.8
-3.4
0.1
5.0
7.8
9.7
8.2
-3.1
-12.5
-5.3
6.45.2
8.2
1.6
6.8
4.35.1
(15.0)
(10.0)
(5.0)
-
5.0
10.0
15.0
20.0
25.0
30.0FY
53
FY 5
5
FY 5
7
FY 5
9
FY 6
1
FY 6
3
FY 6
5
FY 6
7
FY 6
9
FY 7
1
FY 7
3
FY 7
5
FY 7
7
FY 7
9
FY 8
1
FY 8
3
FY 8
5
FY 8
7
FY 8
9
FY 9
1
FY 9
3
FY 9
5
FY 9
7
FY 9
9
FY 0
1
FY 0
3
FY 0
5
FY 0
7
FY 0
9
FY 1
1
FY 1
3
FY 1
5
FY 1
7 (e
)
(Per
cent
Cha
nge)
Fiscal Year
PERCENT CHANGE IN S.C. GENERAL FUND REVENUE
$119.0 $97.0
($183.7)
$4.5
$266.0
$434.8
$581.0 $537.9
($222.4)
($860.9)
($322.2)
$367.4 $314.3
$523.8
$108.4
$479.9
$326.3 $286.9
-$1,000
-$800
-$600
-$400
-$200
$0
$200
$400
$600
FY 0
0
FY 0
1
FY 0
2
FY 0
3
FY 0
4
FY 0
5
FY 0
6
FY 0
7
FY 0
8
FY 0
9
FY 1
0
FY 1
1
FY 1
2
FY 1
3
FY 1
4
FY 1
5
FY 1
6
FY 1
7 (e
)
(Mill
ions
of D
olla
rs)
ANNUAL GENERAL FUND REVENUE GROWTH
22Source: S.C. Revenue and Fiscal Affairs Office – 169 LJ/08/24/16
Source: S.C. Revenue and Fiscal Affairs Office 170- LJ/08/22/16 23
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500FY
96
FY 9
7
FY 9
8
FY 9
9
FY 0
0
FY 0
1
FY 0
2
FY 0
3
FY 0
4
FY 0
5
FY 0
6
FY 0
7
FY 0
8
FY 0
9
FY 1
0
FY 1
1
FY 1
2
FY 1
3
FY 1
4(P
relim
.)
(Mill
ions
of D
olla
rs)
Fiscal Year
ESTIMATED ANNUAL TAX SAVINGSFY 1995-96 to FY 2013-14
$3,833,48.9%
$2,819,36.0%
$411,5.2% $212,
2.7%$107,1.4% $89,
1.1%$74,0.9%
$46,0.6%
$29,0.4%
$28,0.4%
$28,0.4%
$25,0.3%
$25,0.3%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Indi
vidu
alIn
com
e Ta
x
Sale
s and
Use
Tax
Corp
orat
eIn
com
e Ta
x
Insu
ranc
eTa
xes
Beer
and
Win
e Ta
x
Corp
orat
ion
Lice
nse
Tax
Alco
holic
Liqu
or T
ax
Docu
men
tary
Tax
Bank
Tax
Toba
cco
Tax
Adm
issio
nsTa
x
Earn
ed o
nIn
vest
men
ts
Secu
rity
Deal
er F
ees
(Mill
ions
of D
olla
rs)
FY 2015-16 GENERAL FUND REVENUE BY TYPECategories in Excess of $25 Million
Values: Revenue,Percentage of Total General Fund
Source: S.C. Revenue and Fiscal Affairs Office, LJ/08/22/16 24
25
6,367.7
5,455.7 5,062.55,438.5
5,756.9
6,265.1
6,370.46,862.1
7,195.37,606.9
520.2
526.0529.0
534.7536.6
542.8 552.4
560.3568.3
578.0
14.5
59.8 127.8113.5
107.5
116.9 110.4
90.775.8
50.9
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 e.
(Mill
ions
of D
olla
rs)
General Fund Revenue (Net) Property Tax Relief Trust Fund Homestead Exemption Shortfall
GENERAL FUND REVENUE Less Trust Fund and Homestead Exemption Shortfall
Source: S.C. Revenue and Fiscal Affairs Office LJ/08/19/16
Notes: General Fund Revenue• S.C. General Fund revenue as a percentage of total
personal income has declined from 6.8 percent in FY 80 to approximately 4.1 percent in FY 17.
• General Fund revenue dropped twenty percent during the last recession.
• Sales and individual income tax revenue account for approximately 85 percent of total General Fund revenue.
• Since FY 96, estimated annual tax savings due to legislative enactments have increased from $700 million to $2.9 billion in FY 14.
26
SALES TAX
27
Source: S.C. Revenue and Fiscal Affairs Office 32A-LJ/08/22/16 28
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7 e.
(Mill
ions
of D
olla
rs)
Fiscal Year
SOUTH CAROLINA TOTAL AND GENERAL FUND SALES TAX COLLECTIONS
Total Sales Tax General Fund Sales Tax
Source: SC sales tax collections and U.S. Department of Commerce, Bureau of Economic Analysis. RFA 32 – GOS/08/19/16 29
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7 e.
Perc
enta
ge o
f Per
sona
l Inc
ome
Fiscal Year
SOUTH CAROLINA TOTAL AND GENERAL FUND SALES TAX COLLECTIONS as a Percentage of Total Personal Income
Total Sales Tax General Fund Sales Tax
Maximum cap on autos and EIA
additional 1% in 1985
Sales tax on food to 3% in 10/2006 and 0% in
11/2007
Additional 1% for residential property tax
relief in FY 2007-08
30Source: U.S. Department of Commerce, Bureau of Economic Analysis; S.C. Revenue and Fiscal Affairs Office 171A-LJ/08/19/16
100.0%
88.0%
35.5%
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
PersonalIncome
Personal Consumption Taxable Sales
(Mill
ions
of D
olla
rs)
2014
SOUTH CAROLINA PERSONAL INCOME, PERSONAL CONSUMPTION, AND TAXABLE SALES
Goods
Services
722
449 435
277245
169127
97 82 70 58 42 39 28 25
$0
$100
$200
$300
$400
$500
$600
$700
$800
*Mot
or F
uel
Pres
crip
tion
Med
icin
e
Unp
repa
red
Food
*Res
iden
tial
Elec
tric
ty
*Fed
eral
Gov
. Sal
es
Vehi
cle
Sale
sTa
x Ca
p
*Coa
l and
Fue
lU
sed
in M
anuf
.
*Ele
ctric
ty U
sed
in M
anuf
.
*Liv
esto
ck
*Man
uf. M
achi
nes
*Tel
ecom
.
*Liv
esto
ck F
eed
Lott
ery
Tick
ets
*Con
tain
ers
& W
rapp
ing
Out
-of S
tate
Reta
iler
(Mill
ions
of D
olla
rs)
FY 2012-13 SALES TAX EXEMPTIONS AND EXCLUSIONSIn Excess of $25 Million
*Original Exemptions from 1951
31Source: S.C. Revenue and Fiscal Affairs Office 172-LJ/08/19/16
32
63%
29%
7%
1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Households Businesses Out-of-State Visitors Government
Perc
enta
ge o
f Sal
es T
axPERCENTAGE OF SALES TAX BY PURCHASER
Source: S.C. Revenue and Fiscal Affairs Office 172A-LJ/08/23/16
Notes: Sales Tax• Sales tax accounts for 36 percent of total General Fund
revenue.• Sales tax as a percentage of total personal income has
declined from almost 2.5 percent to less than 1.5 percent
• Total statewide sales tax collections at 6 percent equaled 2.2 percent of total personal income in FY 16 compared to 2.5 percent for the 4 percent rate in FY 80.
• Consumer spending is about 88 percent of total personal income. Taxable sales equal approximately 36 percent.
• The three largest sales tax exemptions are motor fuel, prescription medicine, and unprepared food. These items account for approximately 53 percent of exemptions.
33
INDIVIDUAL INCOME
34
Source: S.C. Revenue and Fiscal Affairs Office 34A,-LJ/08/19/16 35
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
FY 8
0FY
81
FY 8
2FY
83
FY 8
4FY
85
FY 8
6FY
87
FY 8
8FY
89
FY 9
0FY
91
FY 9
2FY
93
FY 9
4FY
95
FY 9
6FY
97
FY 9
8FY
99
FY 0
0FY
01
FY 0
2FY
03
FY 0
4FY
05
FY 0
6FY
07
FY 0
8FY
09
FY 1
0FY
11
FY 1
2FY
13
FY 1
4FY
15
FY 1
6FY
17
e.
(Mill
ions
of D
olla
rs)
Fiscal Year
SOUTH CAROLINA INDIVIDUAL INCOME TAX REVENUE
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7 e.
Perc
enta
ge o
f Per
sona
l Inc
ome
Fiscal Year
SOUTH CAROLINA INCOME TAX COLLECTIONSas a Percentage of Total Personal Income
Indexation of tax brackets beginning in
FY 91
Job development/retraining fee enacted for FY 96; Large
scale use of credits beginning in FY 2001; Credits totaled
$88.5 million in FY 09
Lowest bracket of
2.5% reducedto 0% for
FY 08
Phased-in reduction of maximum 7% tax rate on pass-through trade and business income to 5% beginning in
FY 07 and fully implemented in FY 10 Beginning in FY 13 maximum rate is further reduced to
4.33% will be reduced to 3.67% in FY 14 and 3% in FY 15
Internal Revenue Code
conformity effective FY 86
Source: SC General Fund individual income tax collections and U.S. Department of Commerce, Bureau of Economic Analysis. RFA 34-GOS/08/19/16 36
Source: U.S. Department of Commerce, Bureau of Economic Analysis; S.C. Department of Revenue federal and state individual income tax return sample RFA-LJ/08/19/16 37
$169,269
$111,748
$73,613
$58,050
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Personal Income Federal AGI FederalTaxable Income
SCTaxable Income
(Mill
ions
of D
olla
rs)
DEFINITIONS OF SOUTH CAROLINA INCOMETax Year 2013
42% of Returns (0% of Total Taxes)
6% of Returns (0% of Total Taxes)
12% of Returns (2% of Total Taxes)
8% of Returns (4% of Total Taxes)
11% of Returns (10% of Total Taxes)
21% of Returns (84% of Total Taxes)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
$0 $1-$100 $101-$500 $501-$1000 $1001-$2000 $2001 +
Num
ber o
f Ind
ivid
ual I
ncom
e Ta
x Re
turn
s
Range of SC Individual Income Tax Per Return
2014 SOUTH CAROLINA INDIVIDUAL INCOME TAX RETURNSBy Tax Amount Per Return
Source: S.C. Department of Revenue individual income tax returns RFA-LJ/08/23/16 38
$38 M $38 M$51 M $51 M$64 M $64 M$76 M $76 M
$353 M
$2,652 M
$0 avg.$0 Million
$0 avg.$0 Million
$196 avg.$87 Million
$1,317 avg.$582 Million
$6,517 avg.$2,881 Million
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
First 20% of Returns Second 20% ofReturns
Third 20% of Returns Fourth 20% ofReturns
Top 20% of Returns
Indi
vidu
al In
com
e Ta
x(M
illio
ns o
f Dol
lars
)
Returns Ranked by SC Individual Income Tax
2014 SOUTH CAROLINA INDIVIDUAL INCOME TAX By Tax Bracket
7% Rate
6% Rate
5% Rate
4% Rate
3% Rate
0% Rate
Source: S.C. Department of Revenue individual income tax return sample RFA-LJ/05/11/16 39
Notes: Individual Income Tax• Individual income tax accounts for 49 percent of total
General Fund revenue.• Individual income tax as a percentage of total personal
income has fluctuated over the past 40 years and is slightly lower than in FY 80.
• S.C. taxable income is approximately 34 percent of total personal income.
• The lowest 42 percent of tax returns have no S.C. tax liability.
• The middle twenty percent of returns pay an average of $196. The top 20 percent of returns pay an average of $6,517 and account for 81 percent of the total income tax liability.
40
CORPORATE INCOME & LICENSE TAXES
41
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7 e.
(Mill
ions
of D
olla
rs)
Fiscal Year
SOUTH CAROLINA TOTAL CORPORATE INCOME TAX COLLECTIONS
42Source: S.C. Revenue and Fiscal Affairs Office 34B-LJ/08/22/16
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7 e.
Perc
enta
ge o
f Per
sona
l Inc
ome
Fiscal Year
SOUTH CAROLINA CORPORATE INCOME TAX COLLECTIONSas a Percentage of Total Personal Income
43Source: U.S. Department of Commerce, Bureau of Economic Analysis, S.C. Revenue and Fiscal Affairs Office 34C-LJ/08/19/16
$0
$20
$40
$60
$80
$100
$120
$140FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7 e.
(Mill
ions
of D
olla
rs)
Fiscal Year
SOUTH CAROLINA TOTAL CORPORATE LICENSE TAX COLLECTIONS
44Source: S.C. Revenue and Fiscal Affairs Office 34D-LJ/08/22/16
45Source: U.S. Department of Commerce, Bureau of Economic Analysis, S.C. Revenue and Fiscal Affairs Office 34E-LJ/08/19/16
0.00%
0.02%
0.04%
0.06%
0.08%
0.10%FY
80
FY 8
1FY
82
FY 8
3FY
84
FY 8
5FY
86
FY 8
7FY
88
FY 8
9FY
90
FY 9
1FY
92
FY 9
3FY
94
FY 9
5FY
96
FY 9
7FY
98
FY 9
9FY
00
FY 0
1FY
02
FY 0
3FY
04
FY 0
5FY
06
FY 0
7FY
08
FY 0
9FY
10
FY 1
1FY
12
FY 1
3FY
14
FY 1
5FY
16
FY 1
7 e.
Perc
enta
ge o
f Per
sona
l Inc
ome
Fiscal Year
SOUTH CAROLINA TOTAL CORPORATION LICENSE TAX COLLECTIONSas a Percentage of Total Personal Income
Notes: Corporate Income and License Tax• Corporate income tax is the third largest revenue item
in the General Fund and the most volatile.• For comparison, the S.C. Education Lottery contributes
$406.5 million to the state compared to $411.2 million from corporate income tax in FY 16.
• Corporate license tax has been a growing but volatile revenue source for the General Fund.
46
PROPERTY TAX
47
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,00020
00
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(Mill
ions
of D
olla
rs)
Tax Year
TOTAL PROPERTY TAX REVENUERevenue Reported by Schools, Counties, Municipalities, and Special Districts
48Source: S.C. Department of Revenue, Local Government Report; S.C. Revenue and Fiscal Affairs Office, Local Government Finance Report – LJ/08/24/16
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Perc
enta
ge o
f Per
sona
l Inc
ome
Tax Year
TOTAL PROPERTY TAX REVENUE as a Percentage of Personal Income
Revenue Reported by Schools, Counties, Municipalities, and Special Districts
49Source: U.S. Department of Commerce, Bureau of Economic Analysis; S.C. Department of Revenue, Local Government Report; S.C. Revenue and Fiscal Affairs Office,Local Government Finance Report – LJ/08/24/16
35.9%
15.4% 15.8%
9.7%
5.2%
9.1%
4.7%2.9%
1.3%
45.2%
18.8%
11.0%8.6%
5.4% 4.7% 3.7%1.6% 1.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Com
mer
cial
&Re
ntal
Ow
ner O
ccup
ied
Pers
onal
Pro
pert
y(V
ehic
les) U
tility
Fee-
in-L
ieu
Man
ufac
turin
g
Busin
ess P
erso
nal
Oth
er P
erso
nal
Prop
erty Oth
er
Perc
enta
ge o
f Tot
al P
rope
rty
Tax
Reve
nue
ESTIMATED PERCENTAGE OF TOTAL PROPERTY TAX REVENUE By Assessment Classification
Tax Year 2003 Tax Year 2013
Other: Motor Carrier, Agricultural Real Property (corporate and private)
50Source: S.C. Revenue and Fiscal Affairs Office, Local Government Finance Report; S.C. Department of Revenue, Index of Taxpaying Ability and Local Government Report – LJ/08/23/16
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%20
00
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(Per
cent
)
Tax Year
ANNUAL GROWTH IN PROPERTY TAX REVENUE AND REIMBURSEMENTSRevenue Reported by School Districts, Counties, Municipalities, and
Special Purpose Districts and All State ReimbursementsPre-Act 388 of 2006 and Recession
6.9% Annual GrowthPost-Act 388 of 2006 and Recession
4.7% Annual Growth
51Source: S.C. Department of Revenue; S.C. Revenue and Fiscal Affairs Office, Local Government Finance Report – LJ/08/23/16
Notes: Property Tax• Property tax revenue, as a percentage of total personal
income, has increased from 2.9 percent in 2000 to 3.3 percent in 2013.
• Between tax years 2003 and 2013:• Commercial property increased from 35.9 percent to 45.2
percent of total property tax revenue.• Owner occupied property increased from 15.4 percent to
18.8 percent of the total.• Motor vehicles declined from 15.8 percent to 11.0
percent of the total.• Manufacturing declined from 9.1 percent to 4.7 percent
of the total.
52
QUESTIONS
53