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Sales tax going up June 1 That shopping spree will soon cost you a little more. Beginning June 1, the state's sales tax will increase to six cents on the dollar, up a penny from the current rate. The increase was passed by the state Legislature last year as part of property tax relief reform. The increase is expected to generate about $580 million, with $500 million of that used to eliminate school operating costs from owner-occupied housing. The rate increase will not apply to the 7 percent sales tax imposed on sleeping accommodations, the 5 percent sales tax imposed on items subject to the maximum sales tax and the 3 percent sales tax on unprepared food that may be purchased with Department of Agriculture food stamps. Patricia Byrd, manager of Prime Outlets Gaffney, said she doesn't believe the change will deter shoppers. "We don't anticipate (the sales tax increase) will have an impact," Byrd said. "South Carolina (sales tax) is still lower than our neighboring states." There is some good news for consumers. Starting in October, the state sales tax on groceries will fall to 3 percent. |
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