Twin lawsuits target hospitality tax
Posted: 08.18.2011 at 4:41 PM
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COLUMBIA (WACH) - Two Columbia restaurant owners are suing the city of Columbia, over how the 2% hospitality tax is imposed.

Co-plaintiff Kirkman Finlay says the city is broadly enforcing the 1997 state law that levies a tax on prepared foods and beverages. 

The other plaintiff in the suit is James Bigby, owner of the Salty Nut bar.  Finlay is a former Columbia city councilman and owner of Pawley's Front Porch grill.

Attorney Hank Wall is handling the case.  Walls is also working on a similar lawsuit filed by a Richland County bar owner in 2008.

"If you go to the grocery store and buy a whole watermelon, its not taxed, but if the watermelon has been sliced, it's been quote "modified," said Wall, referring to the term officials use to determine what foods can be taxed under the law.

City officials did not return our calls for comment on the case. 

Richland County Attorney Larry Smith told WACH-Fox he cannot comment in detail about the 2008 lawsuit.  "We're currently waiting on rulings on motions that have been filed," said Smith.

Finlay says he's hoping the court opinion's will encourage the General Assembly to re-evaluate the law. 

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