South Carolina To Increase Sales Tax.

South Carolina General Assembly passed Tax Reform Bill 4449 on February 9, 2006. The bill provides for a property tax exemption on the fair market value of owner-occupied residential property. To offset for potential state revenue losses, the bill imposes an additional 2% increase in state sales tax and provides for certain sales and use tax exemptions. The bill was sent to the South Carolina Senate Committee on Finance on February 14, 2006. In addition, the bill exempts unprepared food from sales tax, except for local sales and use tax enacted before May 31 of the year the exemption takes effect. Further, Fairfield County will impose a 1% increase in local sales and use tax, effective May 1, 2006, pending voter approval. (SC H 4449, ST 441)

Posted on March 15, 2006