By Lindsay Street, Statehouse correspondent | If House Republicans have their way, the three-day state sales tax holiday that starts Aug. 2 may be the last for South Carolina.
Called “poor tax policy” by the Tax Foundation in a new report, the state’s sales tax holiday is one of 16 being held across the country in the weeks ticking down to back-to-school.
In recent years, the S.C. House Tax Policy Review Committee has held hearings and pushed tax-related legislation, including a bill that remove exemptions and lower the state’s sales tax. The bill is sponsored by House Speaker Pro Tempore Tommy Pope and a slew of other Republicans. Democratic Reps. Roger K. Kirby of Lake City and Mandy Powers-Norrell of Lancaster have also signed onto the bill.
The committee has addressed the annual sales tax holiday in passing, but it has never been the focus of any in-depth conversation, according to staff. But should exemptions be removed, it’s likely the state’s annual tax holiday could be axed, staff said.
The Tax Foundation found sales tax holidays “do not promote economic growth or significantly increase consumer purchases.” The report said consumers simply shift the timing of purchases and that some retailers raise prices during the holiday, reducing consumer savings.
“Sales tax holidays create complexities for tax code compliance, efficient labor allocation, and inventory management. However, free advertising for what is effectively a paltry 4 to 7 percent discount leads many larger businesses to lobby for the holidays,” the report said.
In other news,
No more common-law marriages. The S.C. Supreme Court ruled this week to abolish the state’s common-law marriage, joining other states moving to remove the law from the books. The ruling doesn’t affect any current marriages where couples who live together for a long time can be considered married without a license, however. Read more.
College governing board diversity follow-up. In a conversation about higher education governing board diversity with Statehouse Report this week, Senate President Harvey Peeler, R-Gaffney, said, “I’m not down on old, white men — I am one — but I understand the importance of diversity.” Peeler said he is working Hopkins Sen. Darrell Jackson, a Democrat, on helping bring more diversity to governing boards. Read our story from last week about how the boards are mostly white men.
- See Andy Brack’s column this week on the need for diversity on college boards.
Gaming rears its head. Weeks after an S.C.-based Indian nation said it would open a casino in North Carolina due to the state’s reticence on gambling, a forum convened in Horry County touting gambling benefits. The Palmetto Forum for Gaming Studies said increasing gambling’s presence in the state could be an economic stimulant that provides the state revenue for education and infrastructure. Read more.
Harris cites S.C. unsafe water. U.S. Sen. Kamala Harris, D-California, introduced the “Water Justice Act” this week in Washington, citing 360,000 South Carolinians receiving lead-tainted drinking water. The bill by the 2020 Democratic presidential candidate pledges $250 billion for clean and safe drinking water programs and would prioritize high-risk communities and schools, and $50 billion will go towards communities and schools with contaminated water to test for water quality and remedy toxic infrastructure.
2020 candidate calendar
Throughout the campaign season, we are working to keep South Carolina informed of candidate events in the state. Have an event you want us to know about? Email us at 2020news@statehousereport.com.
Williamson heads to the coast. Advice author and Democratic candidate Marianna Williamson is visiting the South Carolina coast this weekend. She has an event scheduled 5:30 p.m. July 26 at Unity Myrtle Beach in Surfside, and another event scheduled 4 p.m. July 27 at Unity Church in Beaufort.
Ryan visits the Upstate. U.S. Rep. Tim Ryan of Ohio will be in South Carolina this weekend with a visit to Laurel Creek Community Center 4 p.m. July 26 in Greenville, dinner at 8:30 p.m. July 26 at Halls Chophouse in Greenville, a meeting with Greenville County Democratic Party 8:30 a.m. July 27 at Upstate Circle of Friends in Greenville, canvassing in with S.C. candidate Carrie Counton at 10 a.m. July 27 in Greenville, lunch 11:45 a.m. July 27 at Carolina Drive Inn in Greenville, and touring the Regenesis Community Development Corp. 1:30 p.m. July 27 in Spartanburg.
De Blasio’s wife, son visit Sumter. New York Mayor Bill de Blasio’s wife Chirlane McCray and Dante de Blasio will have lunch with the Sumter Democratic Party noon July 27 at Jeffrey Lampkin’s Country Boy Kitchen. Visit here to RSVP.
Surrogates. See other upcoming events with Democratic candidates’ surrogates here, including actor Danny Glover for U.S. Sen. Bernie Sanders of Vermont, and former Florida attorney general candidate Sean Shaw for South Bend Mayor Pete Buttigieg.
Looking ahead
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