COLUMBIA — The South Carolina House will debate a bill that eliminates two dozen sales tax exemptions worth less than $13 million.
The House expects to discuss the bill today. It initially eliminated more than $220 million worth of exemptions when House Republicans introduced it last month. But legislators re-inserted 18 items during the committee process after they heard from affected businesses. State budget advisers provided an updated estimate Monday.
The bill has a tax-neutral provision, requiring any increased revenue to be offset by lowering the state sales tax. The committee amendments mean the state’s current 6 percent sales tax would be reduced by a small fraction to 5.98 percent.
The House voted Wednesday to send two bills that cut personal and small business income taxes to the Senate.
Some of the sales-tax exemptions that would be eliminated under the revised bill up for debate today, and their estimated worth in 2012-13:
$3.2 million: Extended service contracts and warranties on vehicles.
$2.1 million: Amusement park rides and parts.
$1.9 million: Supplies and equipment bought by laundries, dry cleaners and carpet cleaners.
$800,000: Non-truck vehicle and motorcycle sales to military members in S.C. on orders.
$825,000: Postage paid by advertisers.
$886,400: Cooperative direct mail advertising materials and discount coupons.
$614,000: Paving asphalt products bought in South Carolina and used in another state.
$561,567: Parts and supplies used to repair aircraft.
$374,400: Sweetgrass baskets made by S.C. artists.
$352,710: Railroad cars, monorail cars and their parts.
$487,220: 70 percent of portable toilet rental sales or leases.
$240,000: Building materials and electricity used by a facility researching the impact of natural disasters.
$169,546: Vessels and barges more than 50 tons burden.
$125,000: Depreciable assets used in a business and sold as part of the business.
$60,000: Audiovisual masters used by a production company.
*Law creating the exemption was declared unconstitutional by SC Supreme Court
Sources: SC Board of Economic Advisors, April 23 update