South Carolina Supreme Court Invalidates Durable Medical Equipment Tax Exemption on Interstate Commerce Grounds

• South Carolina Supreme Court invalidated the state’s durable medical equipment sales and use tax exemption
• Exemption was found to discriminate against interstate commerce
• Court declined to sever unconstitutional language from the exemption and invalidated it entirely on a prospective basis
• Exemption is no longer available to any taxpayer
• Background: Exemption applied to durable medical equipment and related supplies under certain conditions
• Taxpayer challenged the exemption in court, claiming it violated the Commerce Clause
• Supreme Court agreed that the exemption was discriminatory and lacked a legitimate local purpose
• Entire exemption was found to be invalid on a prospective basis
• Legislature could reenact the exemption without unconstitutional language if deemed appropriate
• Refunds were ordered for the taxpayer
• Next steps for taxpayers affected by the decision are unclear

Source: kpmg.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.

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