Tax Law Insights Blog | Burr & Forman LLP

An Overview of the Unit Valuation Method

Jeffrey T. Allen — Tue, 22 Oct 2013 09:00:01 -0400

For property tax purposes, the South Carolina Department of Revenue has the sole responsibility for appraising real and personal property used by specified businesses, including utilities, manufacturers, and transportation businesses (e.g. railways and airlines). The South Carolina Department of Revenue is authorized to use any accepted or recognized valuation method which reflects property’s fair market value, including methods with the unit valuation concept, when appraising real and personal property for property tax purposes.

The unit valuation method is not set ...

South Carolina Supreme Court Strictly Construes Infrastructure Tax Credit Requirements

Jeffrey T. Allen — Mon, 05 Aug 2013 09:00:02 -0400

On July 24, 2013 the South Carolina Supreme Court issued its opinion in the case of Centex International, Inc. v. South Carolina Department of Revenue, Opinion No. 27288. In a 3-2 decision, the Court found that a partnership did not qualify for the infrastructure tax credit and that its corporate owners could not claim the infrastructure tax credit. The partnership clearly incurred infrastructure expenses, but the Department of Revenue argued that only a corporate taxpayer was entitled to earn and claim the credit. The Court agreed.

The Court framed its analysis by reciting general ...

How to Amend South Carolina Use Tax Reported on Form SC1040

Jeffrey T. Allen — Mon, 24 Jun 2013 09:00:03 -0400

Anyone who buys tangible personal property from out-of-state and brings it into South Carolina is responsible for paying a use tax of 6% on the sales price of the property, plus any local tax rate addition. Individuals may report purchases subject to use tax on their individual income tax return (SC 1040, Line 26). The Department of Revenue publishes a worksheet, UT-3W, which can be used to determine the purchases subject to use tax and the amount of use tax due. An individual who does not report use tax purchases on his or her income tax return should file Form UT-3, Use Tax Payment Return. ...

South Carolina Abandoned Buildings Revitalization Act Provides New Tax Credit

Jeffrey T. Allen — Fri, 14 Jun 2013 09:00:04 -0400

On June 11, 2013 the "South Carolina Abandoned Buildings Revitalization Act" was signed into law by the Governor. The Act provides new incentives for the rehabilitation, renovation, and redevelopment of abandoned buildings in South Carolina. Taxpayers meeting the requirements of the Act can receive a tax credit equal to 25% of the cost of rehabilitating property against either (1) state income taxes and corporate license fees, or (2) property taxes.

In order to qualify for the credit a taxpayer must rehabilitate an abandoned building for commercial use. A building with an ...

Accounting Firm Members Held Personally Liable For Client's Unpaid Federal Employment Taxes

Erik P. Doerring — Tue, 30 Apr 2013 09:00:05 -0400

A federal district court has ruled that the members of an accounting firm were each personally liable for the trust fund portion of the unpaid federal employment taxes of their client.

Buddy Light Accounting & Tax Services provided accounting and payroll services to their client, GC Affordable Dining, Inc., which included managing payroll and accounts payable, making federal tax deposits, issuing payroll checks to employees, and preparation of federal employment tax returns (Form 941) for the client. When the client began experiencing financial difficulties, it failed to make ...

South Carolina Property Owners Can Now Challenge Property Tax Valuations Where They Did Not Own Property In The Prior Year

Erik P. Doerring — Thu, 11 Apr 2013 09:00:06 -0400

In what can only be considered a "game-changer" for South Carolina property owners, the South Carolina Court of Appeals in Taylor v. Aiken County Assessor, ___ S.E.2d ___, 2013 WL 1223185 (S.C. Ct. App., March 27, 2013) has recently ruled that a current owner of property can "look back" and challenge the county assessed value of real estate not owned in the prior year.

For over half a century, tax practitioners in South Carolina have assumed, without much comment, that South Carolina law imposed responsibility to pay current property taxes on the owner of property as of December 31^st of ...