Friday, Sep 29, 2006
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Shoppers welcome sales tax reduction

Savings on grocery tabs will kick in across S.C. Sunday

By DELAWESE FULTON
ddfulton@thestate.com
Melissa Irvin shops with her son, J.T. Irvin, 5, at the Piggly Wiggly on Devine Street.
RICH GLICKSTEIN/RGLICKSTEIN@THESTATE.COM
Melissa Irvin shops with her son, J.T. Irvin, 5, at the Piggly Wiggly on Devine Street.

Milk, bread and eggs will cost South Carolinians less come Sunday.

The statewide sales tax on unprepared foods — groceries — will be reduced to 3 percent from 5 percent — a savings of $2 if you spend $100 on groceries.

The reduction is part of a recently approved property tax relief bill signed by Gov. Mark Sanford. On most other purchases, the statewide sales tax will increase to 6 percent beginning June 1.

S.C. residents shopping this week at Piggly Wiggly on Devine Street said they are pleased with the coming tax savings.

“Every little bit helps,” said 61-year-old Barbara Reamy, who lives in Columbia’s Rosewood.

Although Reamy normally buys groceries only for herself and often eats out, she said this is a positive move.

Fellow Rosewood-area resident William Morris, 62, agreed.

“It’s a good idea,” Morris said. “I lived in California for 20 years, and they don’t charge you any (taxes) for food.”

The tax break — although well received by residents — does not affect any local sales and use taxes, which differ from county to county. And, it does not apply to prepared deli items, hot foods and drinks, alcoholic beverages and tobacco.

Lexington County residents will fare better than others in the Midlands.

Lexington adds a 1 percent school district tax to the state’s 5 percent tax, but unprepared foods there already were exempt from that local school district tax, according to the S.C. Department of Revenue. So Lexington residents will pay a 3 percent tax on their unprepared food purchases.

For residents of Richland and Kershaw counties who pay a 1 percent local option sales and use tax in addition to the state’s 5 percent sales tax, total tax on groceries will be 4 percent, said Adrienne Fairwell, a spokeswoman for the Department of Revenue.

Take Stuart James and her family of five — including herself — plus two dogs.

“We spend $250 per week in groceries,” said James, who was heading into the Piggly Wiggly store.

For this Richland County resident’s family, the taxes on their food bill will go from about $15 to about $10 — a $5 savings.

“I think the tax rate for everything in the state should go down,” James said.

Reach Fulton at (803) 771-8659.