SOUTH CAROLINA DEPARTMENT OF REVENUE
Public Affairs Office Phone (803) 898-5464
Fax (803) 898-5446
FOR IMMEDIATE RELEASE
Feb. 25, 2003
Revenue Department will appeal January court ruling
The South Carolina Department of Revenue said today it would appeal the South Carolina Court of Appeals' Jan. 8 unpublished decision that would overturn the Department's long-standing administrative policy concerning sales and use tax exemptions for many South Carolina manufacturers.
The decision by the Court in South Carolina Department of Revenue vs. Springs Industries, Inc. would allow for a broader interpretation of how sales and use tax exemptions apply to certain manufacturing equipment and manufacturing construction contracts. The decision also would expand the Department's interpretation of the exemption for chemicals used in treating wastewater.
While manufacturers affected by this decision can apply to the Department of Revenue for a refund for the past three years, agency officials said a determination on these refund claims would not be made until all appeals of the decision have been exhausted.
The Department has not determined how the Court's ruling would affect sales and use tax revenue collections or the number of manufacturers who would be due a refund should the Department's appeal be unsuccessful. The Department will issue a news release once all appeals for both the taxpayer and the agency have been resolved.
The Court of Appeals' opinion in Springs is available at the Department of Revenue web site at www.sctax.org under "What's New."