The South Carolina Court of Appeals affirmed the Administrative Law Court’s holding that proceeds from a book retailer’s sales of book club memberships should have been included in the retailer’s “gross proceeds of sales” and subject to sales tax. The Court of Appeals concluded that South Carolina case law provides that the gross proceeds of sales includes all value that comes from or is a direct result of the sale of tangible personal property. The Court explained that the retailer’s membership fees are a direct result of the sale of tangible personal property, i.e., books, magazines, etc., because the retailer would not be able to sell the memberships but for its sale of tangible personal property.
SALT Shaker
Shaking things up in state and local tax
SALT Shaker
Shaking things up in state and local tax