Bill
S 9
Excludes funeral home equipment-use fees from sales tax, narrowing the tax base for burial/graveside services and allowing refunds for prior tax collections on these charges.
Status snapshot
- Bill number: S 9
- Title shown: Funeral Home Charges
- Introduced: January 7, 2025
- Referred to: Committee on Finance
- Current actions: hearings scheduled; bill pending committee consideration.
- Note on materials: the submitted bill text package also contains unrelated legislative material (a Massachusetts constitutional amendment on judicial/appointed‑official term renewals). This summary focuses on the Funeral Home Charges provision (South Carolina statutory language) because it matches the bill title and main substantive text provided.
Purpose and intent
- To exclude certain fees or charges that funeral homes or undertakers impose for use of their equipment during burial or graveside services from the statutory definition of “gross proceeds of sales” subject to South Carolina sales tax. The intent is to narrow the taxable base so that those specific equipment‑use fees are not treated as taxable retail sales.
Key provisions
- Amends S.C. Code § 12‑36‑90(2) (definition of what is not included in “gross proceeds of sales”) by adding subitem (m):
- Excludes “fees or charges imposed by a funeral home or undertaker for the use of its equipment in its provision of burial or graveside services.”
- Provides a non‑exhaustive definition of “equipment,” explicitly listing examples: awnings, canopies, tents, artificial turf, podiums, chairs, audio equipment, and lowering mechanisms.
- Effective date: the act takes effect upon approval by the Governor.
- Refunds: for any open period during which sales tax was charged contrary to the new exclusion, taxpayers may apply to the Department of Revenue for a refund of tax paid.
Who would be affected
- Funeral homes and undertakers: would no longer have to collect or remit sales tax on separately‑stated charges for use of listed equipment for burial/graveside services.
- Consumers/families: would not pay sales tax on those specific equipment‑use charges.
- South Carolina Department of Revenue and state finances: potential reduction in sales tax receipts from these charges; administrative workload for processing refund claims for open periods where tax was previously collected.
- Funeral industry vendors and local governments: may see modest changes in pricing, compliance, and tax reporting.
Practical impact and considerations
- Revenue impact: not specified in the text. The fiscal effect depends on how frequently funeral homes separately itemize and collect tax on these equipment fees statewide.
- Administrative: the Department of Revenue would handle refund claims for affected tax periods; guidance likely needed to clarify scope (e.g., bundled service charges vs separately stated equipment fees).
- Legal clarity: the bill narrows the tax base by explicit statutory exclusion and lists examples to reduce disputes about what counts as “equipment.”
Additional notes (unrelated materials in filing)
- The packet includes a Massachusetts “Proposal for a legislative amendment to the Constitution” concerning 10‑year term renewals and reappointment/reconfirmation for judges and certain appointed officials. That constitutional amendment proposal appears unrelated to the South Carolina sales‑tax change and was reported as “ought not to pass” and placed on file under Joint Rule 23 in that filing history.
- A list of sponsors provided in the document (many U.S. Senators) appears inconsistent with a state statute amendment and likely pertains to a different measure; it does not change the substance of the South Carolina tax amendment summarized above.
If you’d like, I can:
- Draft a short fiscal note outline estimating potential revenue change based on funeral service data, or
- Prepare suggested Department of Revenue guidance language to implement the refund and exemption mechanics.
Compiled from official sources — confirm details with the bill’s official record.
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