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Sales tax exemption suit reaches SC high court
Posted: 11.29.2011 at 6:07 AM
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COLUMBIA, S.C. (AP) -- The South Carolina Supreme Court is getting ready to hear a case that could end the state's 78 sales tax exemptions.
Matthew Bodman of Columbia is asking the justices on Tuesday to rule the exemptions are illegal because they are special legislation that only helps certain entities.
Bodman's lawyers say the state could collect an extra $2.7 billion in revenues to help schools if exemptions on items like prescription drugs, power bills, groceries and even portable toilet rental are eliminated.
But Republican leaders in the Legislature say getting rid of the exemptions through the court would amount to a backdoor tax increase that was not approved by lawmakers and would increase the state's $6 billion budget by 50 percent. They say Democrats are backing the lawsuit
(Copyright 2011 by The Associated Press. All Rights Reserved.)