In S.C., they could put a sales tax on water and lights

Georgia has a tax reform commission not unlike this one, headed by Gov. Sonny Perdue. From The State newspaper in South Carolina:

You could have to pay a state sales tax soon on the water and electricity that you use at your home, and the groceries and prescription drugs you buy at a store.

Members of the S.C. Tax Realignment Commission, a legislatively appointed group of finance and tax experts, will vote today on whether to eliminate nearly $700 million in state sales tax exemptions.

If the commission approves, the General Assembly will have the final say on whether the exemptions are eliminated during its session that begins in January.

But that’s far from a done deal. S.C. legislators have been loathe to increase any taxes.

The elimination of the sales tax exemptions would be paired with a cut in the state’s overall sales tax to 4.96 percent. That is down from the current 6 percent rate.

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5 comments Add your comment

Phantom99

July 21st, 2010
5:52 pm

Publicans are only good for one thing…lowering taxes and you are telling me that in the most republican state this side of the Mississippi they can’t even get that right? Hahahaha. Awesome.

RK

July 21st, 2010
6:02 pm

Good. Close these loopholes.

Jon Lester

July 21st, 2010
6:09 pm

I’m not sure how I feel about sales taxes on utilities, but surely they can find more loopholes to close before resorting to taxing groceries again. SC has more than its share of income-challenged residents and the food tax exemption is one of the precious few favors that state government has ever done for them.

Vicki Davis

July 21st, 2010
9:37 pm

So, anyone else realize the EVERY prestige or special GA car tag will now cost the owner $35 EVERY year. Yep, not just the one-time fee to get the tag, but $35 every renewal. When did this nice piece of a tax raise get passed? Certainly seems to have flown way below the radar……My county tag office is keeping a box of “turned in tags” to count how many are not being renewed because of this “gotcha” move………..thanks, Sonny.

TJ

July 21st, 2010
9:48 pm

Phantom99,
Never says there is a tax cut. Rate goes down, but more things taxed, so pay the same (or I would guess) more each year in taxes. Not too many places passing tax cuts these days.

Vicki, thanks for that tidbit. We have a wildlife tag (renewal later in year). $35 a year will warrant a ‘new tag’ that costs less (and costs the state to process a new one, I’m sure).