by T.A. DeFeo
The South Carolina Senate passed a measure to exempt feminine care products from the state’s sales tax, a move that could cost the state and local governments millions in tax revenue.
The Senate voted unanimously in favor of H.3563, which now heads to Republican Gov. Henry McMaster for consideration. The state House unanimously passed the bill last year.
According to the South Carolina Senate Democratic Caucus, if signed, the Palmetto State would join more than 20 other states that exempt feminine care products from taxes.
According to a South Carolina Revenue and Fiscal Affairs Office analysis from last year, the measure could reduce state and local sales and use tax revenue by more than $7.3 million. However, the Department of Revenue will not need additional funding to administer the law.
The revenue reduction includes more than $3.9 million from state General Fund sales and use tax collections, $986,000 from the Education Improvement Act Fund and $986,000 from the Homestead Exemption Act Fund. The analysis also revealed the exemption could lower local sales and use taxes by $1.4 million.
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T.A. DeFeo is a contributor to The Center Square.
Photo “South Carolina Capitol” by w_lemay. CC BY-SA 2.0.
