Seniors over 85 still face shortchanging on sales tax break
BY CHRISTINE ROBINSON Of The Post and Courier Staff Under South Carolina law, seniors are entitled to a penny off the state's sales tax, but Harold and Violet Murray, both in their 80s, still get puzzled looks when they ask for the break in checkout lines. A resident of Goose Creek, Violet Murray, 85, said she and her 88-year-old husband recently were refused their 1 percent discount at the North Charleston OfficeMax, even though they were willing to show IDs proving they were the required age. "We went into OfficeMax and asked for the 1 percent discount, and they said they had never heard of it, and we said it was the law, and they just said they had never heard of it," Violet Murray said. "You stand there and other people think you're trying to get something extra, but it's nice to get something for being old aside from wrinkles." The clerks at the OfficeMax on Rivers Avenue aren't alone in being in the dark about the policy. A quick check Friday of a handful of businesses along King Street downtown revealed that about one-third of the retailers did not know about the requirement. Others had a sign posted in bold print informing everyone of the law. That sign is required by state law. In most cases, it appeared that the large chain stores such as OfficeMax and Pottery Barn weren't aware of the law, while locally owned businesses such as Barton's Candy and Gift Shop and Bob Ellis Shoes not only were aware of the rule but also had the required sign posted. The reduction in seniors' taxes was created as part of the Education Improvement Act of 1984, which raised the sales tax for the majority of taxpayers to 5 percent while leaving the 85-and-over crowd at the previous 4 percent. Total sales tax revenue for the state was $2 billion last year. The state Board of Economic Advisors said that in fiscal 2003, $3.85 million in revenue was lost as a result of some of South Carolina's estimated 30,749 eligible seniors requesting the break. South Carolina Department of Revenue spokesman Danny Brazell said the law was passed as a way to give something back to seniors. The only problem is that some businesses, despite all these years later, still remain unaware of the law. After the law was passed, the Department of Revenue was receiving three to four calls a week from seniors complaining stores were refusing the discount, Brazell said. "We have publicized as much as we could that it was the law and retailers had to give the seniors their break, but there were problems with retailers not knowing and also taxpayers not knowing," he said. To help raise awareness of the tax break, a follow-up law was passed four years ago that requires stores not only to acknowledge the discount but also to post the signs informing seniors and staff of the discount. Brazell said that move cut down significantly on complaint calls, but the Revenue Department still hears grumbles on occasion, at which point he personally calls the business to inform it of the now two-decade-old policy. "We would suggest that (customers) go back to the merchant and remind them this is a state law and they are entitled to an exemption, and if someone is going to be a little bullheaded about it, they should contact the Department of Revenue," Brazell said. If a business continues to refuse to provide a discount to the senior, the Department of Revenue can revoke the retail license of the store, essentially shutting it down. "We cannot grant a taxpayer the refund, but we can call the retailer and tell them it is the law, and if the retailer refuses, we can revoke their retail sales license," Brazell said. "But I've never seen it go that far." The department also will issue a card, on which the law is printed, to any senior who requests it, informing the business that the senior is, indeed, entitled to a discount.
SALES TAX FACTS -- Those 85 and older pay 4 percent in sales tax; everyone else pays 5 percent. -- Those who want cards explaining the law to merchants can call (803) 898-5419. The card reads: "Retailer: Purchases made by people 85 years old and older are exempt from the additional 1 percent sales tax imposed by the Educational Improvement Act of 1984." -- Those who want to report a store not following the law can call the state Revenue Department at (803) 898-5788.
|