South Carolina: Data Center Exemption Quid Pro Quo
- Sep 12, 2013 | Gail Cole
In June of 2012, South Carolina Department of Revenue released an information notice regarding the data center sales tax exemption, outlining investment requirements, job requirements, and what happens to companies that fail to meet those investment and job requirements. The exemption is not a give-away: it is intended to spark growth (investment and jobs) in the state.
The moral of the information release is simple: failure to meet investment and job requirements may result in an assessment of "any state or local sales or use tax due on items purchased." With that assessment would come applicable penalties and interest.
The onus to prove that all requirements have been met falls on the taxpayer, not the state: "Like other records maintained for tax purposes, the records must be readily available for inspection by the Department."
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