Carolinas Independent Automobile Dealers Association
5643 Harrisburg Industrial Park Dr.
Harrisburg, NC 28075
February 20, 2017
HARRISBURG, N.C. — The Executive Committee of the Carolinas Independent Automobile Dealers Association (CIADA) acting on behalf of the membership, is strongly opposed to the proposed change to increase the cap on sales tax for automobile purchases that is currently in both pieces of legislation, South Carolina House Bill HB3516 aka Infrastructure and Economic Reform Act of 2017 and South Carolina Senate Bill SB54 version in their current forms.
CIADA Executive Committee President Darla Booher, (Owner Deal Depot located in Greer, SC 864.848.4040 Ext 115) said both bills unfairly tax lower-wage earners and place an undue burden on them to pay for much-needed road and infrastructure repair.
The bill, which calls for raising the $300 sales tax cap to $500, means a resident who purchases a $10,000.00 vehicle pays $500.00 in tax. The customer who purchases a $50,000.00 vehicle also pays $500.00 in tax.
“That disparity represents a greater tax on many low-wage earners than that of the higher-wage earner,” Booher said. “If you look at it from a monthly wages perspective, the low-wage earner can be taxed at five times the rate of high-wage earner.”
($10,000 purchase is taxed at 5% for the $500 cap. The $50,000 purchase is capped at $500 which represents a 1% equivalent tax rate. That means a lower priced vehicle purchaser pays 5 times the tax rate for the car that costs 5 times less.)
The CIADA is strongly in favor of finding a long-term solution to fixing South Carolina’s highways, roads and bridges. Many of our association members also service vehicles, and are keenly aware that vehicle repairs as a result of poor road conditions are a hidden tax on consumers.
While our association encourages infrastructure repair, our members feel a more equitable solution should be found, so that so many thousands of our members’ customers are not unfairly taxed to accomplish it.
Members of CIADA’s leadership in South Carolina are available for interviews on this important matter. Please contact John Brown at the number above for an interview.