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SC bill doesn't touch sales tax cap on vehicles - Live5News.com | Charleston, SC | News, Weather, Sports

SC bill doesn't touch sales tax cap on vehicles

By SEANNA ADCOX
Associated Press

COLUMBIA, S.C. (AP) - The poster child for outdated sales tax exemptions in South Carolina is the $300 sales tax cap on vehicles.

But House Republicans' proposal for reforming the state tax code doesn't touch the cap. A bill deleting two-thirds of tax exemptions was among a seven-bill package introduced by the caucus last month. It would delete $260 million worth of exemptions while reducing the state sales tax by half a penny.

Rep. Tommy Stringer says the caucus decided to postpone dealing with the caps to concentrate on targeted exemptions.

The $300 cap dates to 1984 and was a reaction to similar caps in neighboring North Carolina and Georgia. But those states have since repealed theirs.

Rep. Gary Simrill says lawmakers need to consider the larger tax burden - specifically, local property taxes on vehicles.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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