Posted on Sun, Jan. 02, 2005


Tax increase delayed in Lexington County


Associated Press

The state Revenue Department said it is not ready to start collecting an additional 1 percent sales tax approved by Lexington County voters in November.

Tax collections will be delayed until March 1 while the agency sets up a computer systems to account for the money and notifies businesses about the tax.

Voters approved the increase to 6 percent from 5 percent in November. The money will pay for school construction and reduce the school portion of property taxes. In some areas, that relief could mean a reduction of $500 on a $100,000 house.

Catherine Reed, a spokeswoman for the state tax collection agency, said the department had to wait for certified election results to begin setting up the county's first local option sales tax.

"We wouldn't have been able to get started doing anything until we knew the outcome," Reed said. "December is a hard month to get anything done."

Because of the delay, the full effect of the property tax relief won't be seen this year.

A similar sales tax increase will begin in Richland County on May 1.

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Information from: The State, http://www.thestate.com/





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