Some farmers assert that South Carolina’s sales tax for agriculture is often the only profit margin that some farmers maintain.
Richard Doran is the owner-operator of Bush River Farms in Newberry, a dairy farm which also has a beef operation.
He was among those who addressed the South Carolina Tax Realignment Commission (TRAC) Thursday. As the commission reviews the state’s tax structure before a possible overhaul by state lawmakers, Doran wants to make sure that agriculture isn’t left behind.
Dairy farmer Richard Doran
At the very least, Doran wants the state to maintain its current exemptions. “That allows us to not have a sales tax on products that we’re not the end user of,” said Doran. “We do pay sales tax on purchases that we’re the end user of, like paper towels, used in the dairy operation. Some things shouldn’t be considered part of the input cost for producers.”
Doran says losing the agriculture tax exemption would be equivalent to losing 5.1 percent of his gross sales.
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