SALT Report 1519 – The South Carolina House of Representatives has approved a bill that would repeal several sales and use tax exemptions. The bill, H 4995, also requires the state to lower the overall sales tax rate by the amount of revenue generated, which is estimated to be $12,877,500 per year.
The following items would be no longer be exempt from sales and use tax:
- Railroad cars and their parts,
- Vessels and barges of more than 50 tons,
- Depreciable assets, used in the operation of a business, pursuant to the sale of the business,
- Motor vehicles sold to nonresident active duty service members located in South Carolina,
- Postage purchased by a person selling advertising services such as the mailing of printed advertising material directly to a client’s customers or potential customers,
- Office supplies and services resold by the Division of General Services of the State Budget and Control Board to departments and agencies of the state government,
- Machinery, equipment, building materials, and electricity used in the operation of a facility owned by a tax exempt organization that researches and tests the impact of natural hazards such as wind, fire, water, earthquake, and hail,
- Petroleum asphalt products transported and used outside the state, and
- Motor vehicle extended service contracts
For Further Information: