- South Carolina Supreme Court declared a discriminatory sales tax exemption invalid
- Exemption applied to durable medical equipment sold directly by Medicaid or Medicare funds
- Businesses outside of South Carolina were not able to claim the exemption
- Orthofix, Inc. and KCI USA, Inc. challenged the exemption as discriminatory
- Court found the law had a discriminatory effect and purpose
- Department of Revenue argued the law was intended to promote economic development
- Court found no legitimate local purpose that could not be served by non-discriminatory means
- Court could not sever the unconstitutional language from the exemption
- Absence of a “savings clause” in the exemption was noted as significant
Source: jdsupra.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
