Opinion ID: 1330401
Heading Depth: 1
Heading Rank: 4

Heading: calculation of interest

Text: Department of Revenue next argues that if the Court should find Taxpayers are entitled to the second half of the refund as provided for in the 1989 Amendment, then the rate of interest under S.C.Code Ann. § 12-54-25 (Supp.1996) [6] should govern, rather than the rate of interest specified in S.C.Code Ann. § 34-31-20 (1987). [7] We agree. Respondent Taxpayers acknowledge that section 12-54-25 should govern if the second half of the monies due them constituted a tax. In light of our conclusion in Part A that Act 171 certainly was a taxation statute, as was the 1989 Amendment, we find section 12-54-25(C) should apply. In fact, section 12-54-25(C) specifically applies to tax refunds, and Taxpayers are, after all, arguing their entitlement to the second half of a tax refund. Therefore, interest on the refunds owed Taxpayers shall be calculated at the rate provided for by section 12-54-25.