SC court rules against sales tax exemption
By HME News Staff
Updated 9:18 AM CDT, Mon July 29, 2024
COLUMBIA, S.C. – The South Carolina Supreme Court has ruled the sales and use tax exemption for DME is unconstitutional. In Orthofix vs. S.C. Department of Revenue and KCI USA vs. S.C. Department of Revenue, the court found that certain language within the exemption discriminates against interstate commerce, which is prohibited under the dormant Commerce Clause. The state’s Department of Revenue has posted SC Information Letter #24-10 notifying DME providers that they are required to collect and remit sales tax on their sales of DME within the state after June 26, 2024. The letter also addresses the sale of DME to Medicaid and/or Medicare beneficiaries, where the state or U.S. funds under either the Medicaid or Medicare programs are used to partially or fully pay for the DME on behalf of beneficiaries. South Carolina imposes a sales tax of 6% on the gross proceeds of sales.
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