S. 214 is an attempt to collect more money in sales tax revenue from out of state Internet focused retailers, and would require them to remit sales tax to the Department of Revenue as though they were brick and mortar locations in South Carolina.  

The usefulness of this legislation is suspect, as the Revenue and Fiscal Affairs Office notes in their statement of economic impact, “based on the mixed success experienced in other states to similar enacted click-through legislation, we do not anticipate that South Carolina will realize any appreciable increase in sales and use tax revenue from the enactment of this bill in FY 2017-18.”

When the Revenue and Fiscal Affairs Office observes that a bill to raise revenue wouldn’t raise revenue, the necessity of the legislation is called into question.

 

By South Carolina Policy Council

Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.