Opinion ID: 1201596
Heading Depth: 1
Heading Rank: 3

Heading: Unlawful delegation of taxing power

Text: Appellant contends Act 588 is unconstitutional because the only taxing power which the legislature can constitutionally delegate to a political subdivision such as a school district is the power to tax property. Article X, § 6. Since Act 588 authorizes a sales tax, appellant contends it is an unconstitutional delegation. We disagree. Appellant's argument misconstrues Act 588's statutory provision. The sales tax authority is not delegated to the school district. Rather, upon approval by the electors of Cherokee County, an additional sales tax is imposed county-wide. The proceeds are returned pro-rata to the school districts operating in the county. Act 588 is analogous to the taxing scheme found in S.C.Code Ann. § 4-10-20 Local Sales and Use Tax (LOST), which has been upheld despite a constitutional challenge similar to that raised here. Westvaco Corp. v. South Carolina Dept. of Revenue, ___ S.C. ___, 467 S.E.2d 739 (1995). Contrary to appellant's position, there is no delegation of taxing power to the school district in Act 588, but instead an addition to the state sales tax upon the citizens of a county. Article X, § 6 is not implicated. For the foregoing reasons, the order of the Special Referee is AFFIRMED. TOAL, MOORE, WALLER and BURNETT, JJ., concur.