Court rejects cleaner’s sales tax
case
One man’s bid to eliminate a sales
tax for South Carolina drycleaners fell short recently when the
state’s Supreme Court ruled 3-2 against the notion.
Ed Robinson, who operates six area-based
drycleaning stores, has claimed for several years that a 1959
law which permits the state to levy a 5 percent sales tax on
cleaners is unconstitutional.
He argued before the court that 61 kinds
of businesses are currently exempt from the tax and it is
discrimination for other businesses to have to pay it.
According to the state Board of Economic
Advisors, if all 61 exemptions were abolished, the state would
gain $1.388 billion in additional revenue this fiscal year.
Following the ruling, Justice Jean Toal
wrote of her disapproval of the General Assembly for letting
the exemption list become so cluttered over the past few
decades, noting that many of them were whimsical.
Justice Diane Goodstein agreed with
Toal’s sentiments.
“Although this court ruled in 1951
that the then-19 exemptions to the sales tax were not a
‘tyrannical exercise of arbitrary power,’ it is in
my view that they would conclude that 61 exemptions rise to
that level,” Toal said.
In her writing, Justice Toal also added
that if the voting had been reversed, she would have directed a
lower court to determine the legality of the sales tax
exemption.
Though disheartened by the end result,
Robinson told an Associated Press reporter that his quest to
abolish the tax may not be over yet. He is still considering
appealing the decision.
“I’m quite disappointed. [I]
still feel like we had a good case and obviously two justices
thought the same thing,” said Robinson.
According to his own estimates, Robinson
guesses that the sales tax adds about 45 cents to the total
billing cost of cleaning a man’s two-piece suit.
Annually, the industry generates about $6
million altogether in tax revenues, according to figures
calculated by the South Carolina Department of Revenue.
Voting in favor of upholding the sales tax
were Associate Justices E.C. Burnette, James Moore and John
Waller, reasoning that Robinson failed to prove that the tax
exemptions were, in fact, unconstitutional.
They concurred with the state’s
lower court that sales tax can be charged on drycleaning
because, unlike other service industries, cleaners are not
required to pay sales taxes on machinery and supply purchases.
However, Justice Toal disagreed with that
logic.
“I find no reason today for singling
out drycleaners’ startup costs as a justification for
imposing a sales tax upon their services when all other
services also are faced with high costs to enter the
marketplace, yet a sales tax is not levied on their
services,” she wrote.
Though settled for the moment, the issue
will likely be up for debate in the coming months as some South
Carolina leaders plan their own solutions to the taxing
problem.
House Ways and Means Committee Chairman
Rep. Bobby Harrell (R-Charleston) has expressed interest in
initiating a bill in the coming months to reduce the high
number of state tax exemptions.
Similarly, House Majority Leader Rick
Quinn (R-Richland) is also in the process of drafting a tax
reform bill for sometime next year.
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East Coast School ready for Fall courses
With a curriculum aimed at teaching the
industry’s best cleaning principles and practices, the East Coast School of Dry Cleaning is launching a busy Fall season at its
facilities located at 1965 West 9th St. in Riviera Beach, FL.
The educational series will begin with a
one-day course on drycleaning maintenance and equipment
troubleshooting on Saturday, Nov. 8.
One week later, a comprehensive two-day
course on spotting, wetcleaning and bleaching will be offered
on Nov. 15-16. Some topics in the course that will be covered
include: wetcleaning volume and profits; wetcleaning
technologies; stain identification; methods of stain removal;
understanding fabrics and dyes; moisture; and garment
classification.
On Nov. 22 and 23, the East Coast School
will meet once again for an informational look at pressing and
finishing. Key topics such as equipment overview, operating
methods, finishing tips and tricks and the production of
delicate fabrics are scheduled to be discussed. The class will
also teach attendees about drycleaning maintenance and
troubleshooting equipment.
In the following month, cleaners can learn
about spotting, wetcleaning and bleaching in two-day courses
scheduled for Dec. 6 and 7, as well as Dec. 13 and 14.
All courses at the school will be
conducted in a classroom-lab setting designed to be both
informational and interactive.
At the conclusion of each course, students
who have successfully met all of the class requirements, will
receive a certificate of completion to show for their efforts.
Class registration typically costs $250
per student; however, those who enroll at least one month prior
to the start of a class can pay an Early Bird registration fee
of $225 per class.
The school’s management and
instruction team consists of: Dan Eisen, who has more than 35
years of industry experience and currently contributes
regularly to National Clothesline; executive director Steve
Jennings, who is also the founder of Radiant Specialty Leather
Care; associate director Rick Watson, who works for Radiant
Specialty Services as an assistant manager and also as the
assistant garment analyst for the International Independent
Garment Analysis Service; and Hydra Ventures, a consulting
company that develops strategic solutions for growing
companies.
For more information, contact the East
Coast School of Dry Cleaning at (561) 494-0737.
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Slatten to teach stain removal in GA, AL
Cowboy Cleaner Kenney Slatten will be off
on the trail again to help cleaners learn cleaning techniques
using R.R. Street’s portable spotting board.
First up will be a stop at The Morris
& Eckels Supply Company in Atlanta, GA, on Saturday, Nov.
15. Slatten will demonstrate live stain removal from 8:30 a.m.
until 2 p.m. Finishing procedures will also be discussed.
Morris & Eckels’ Bernie
Santandera and staff will be present along with R.R. Streets
sales managers Jim Groshans of Florida and Mike Miller of
Atlanta.
The price of the class is $29.95 per
student and $19.95 for additional students from the same plant.
Call Morris & Eckels at (770) 428-5545 for more details.
On Saturday, Dec. 13, Trademark Equipment
Company will host a five-hour educational seminar at its
warehouse in Bessemer, AL from 9 a.m. until 2 p.m.
Slatten will discuss effective spotting
and cleaning with hydrocarbon. He will be joined by David
Daniel, who will conduct a short maintenance class, as well.
The class is free to the public. For more
information, contact Trademark Equipment Company at (877)
456-2515.
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SEFA elects new directors
During its annual board meeting in Destin,
FL, the South Eastern Fabricare Association inducted two new
directors, Stan Martin, Jr. and Ron McLamb.
Martin is the owner and operator of White
Cleaners, located in Augusta, GA. McLamb owns and operates
Presstime Cleaners of Atlanta, GA.
Also recently elected to the board was
Billy Stewart, who was inducted previously at the
association’s board meeting in Ft. Lauderdale. Stewart
runs Continental Custom Cleaners of Columbus, GA.
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