The bills were part of a seven-bill tax package introduced by the GOP caucus.
South Carolina Press Association Executive Director Bill Rogers said, “Both would have a major impact on an industry already strained by market conditions,” and put a barrier up to readership.
The bill would mean readers would be taxed, making newspapers the only medium taxed at the consumer level, Rogers said.
Paid newspapers would not likely be impacted by the removal of the newsprint exemption, but free papers would have to start paying taxes on their newsprint, since they would be the end consumer.
The bills, S. 4994 and S. 4995, have been sent to the Ways and Means Committee. No date has been set yet for a hearing.
Rogers said the association will be undertaking a survey of publishers next week to quantify the impact of the tax on newspapers large and small.
The GOP press release says the bills: “Eliminate two-thirds of the special interest sales tax exemptions while preserving the ones that benefit families (gasoline, food, electricity, water, medicine). This is achieved with a corresponding sales tax rate decrease to offset the increased revenue collections.”
Rogers said having access to a newspaper is a great family benefit that didn’t make the cut of exemptions to be saved.
He said he believes newspapers are employers and pay their fair share of taxes.