The South Carolina Supreme Court is currently considering arguments in a case filed by Mathew Bodman that could eliminate the state’s 78 sales tax exemptions. The suit argues that the exemptions and tax caps contained in S.C. Code Ann. §§ 12-36-2110 and 12-36-2120 are unconstitutional and should be removed. According to the plaintiff, the statutes’ tax scheme has become so riddled with exemptions that they have undermined its purpose of funding public education. The suit also claims that the sheer number of exemptions and overbroad classifications violate the constitutional prohibition against special legislation and equal protection under the law. If the state Supreme Court agrees with the case, it will be up to state legislators to rewrite the tax code.
The case, Matthew Bodman, Plaintiff, v. State of South Carolina and South Carolina Department of Revenue, Defendants, is on the Court’s roster for the morning of November 29th.