For Carolina Christian Academy, it could be manna from the General Assembly. In addition, the budget provision would exempt all private nonprofit schools from paying sales taxes on items purchased through the Internet, mail order or catalog in the future. Thomas, chairman of the Senate Banking and Insurance Committee, could not be reached for comment. Thomas proposal helps wipe the slate clean for Carolina Christian Academy which is at loggerheads with the Department of Revenue over the tax issue. South Carolina requires residents to pay a 5 percent tax on property purchased tax-free outside the state and brought into the state for use.
Officials refer to it as a use tax.
The religious school with more than 350 students became at odds with revenue department officials following a January audit. Pastor Huey Mills of Fellowship Bible Church said he was frustrated that money from his private religious school was going to fund public education. Mills said the revenue department officials told the school it owed use taxes on purchases back to September 1996. Our audit certainly is the catalyst that brought the proviso about, Mills said. But the proviso covers every church school in the state.