Subcommittee advances sales tax exemption fix for durable medical equipment (H.3800)
March 26, 2025 | 2025 Legislative Meetings, South Carolina
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The House subcommittee voted 3-0 to advance House Bill 3800, a bill amending the sales tax exemption for durable medical equipment (DME) providers.
Ken Wells, introduced as representing the South Carolina Medical Equipment Services Association (SC MESA), told the committee that the original exemption, enacted in 2007, had been narrowed by a court ruling and needs technical correction. Wells said the 2007 law limited the exemption to businesses headquartered in South Carolina, but an out-of-state company successfully challenged that restriction and the Supreme Court upheld the appeals court decision. That ruling, Wells said, requires removing the headquarters limitation to conform with the U.S. Constitution’s interstate commerce clause.
Wells told lawmakers Medicare reimbursement cuts and the sales tax are squeezing small providers. “This tax is costing my business personally $6,000 a month,” Wells said, describing the financial pressure on small, often family-run firms. Kim Cannon, who identified herself as a DME provider and SC MESA board member at Hawthorne Medical Equipment and Pharmacy on Taylor Street, said the change has cost her business about $8,000 a month and that 18 counties in South Carolina currently have no DME providers.
Wells and Cannon asked the subcommittee to modify the bill’s language in one place: the draft currently references “Medicaid and Medicare,” and they recommended changing that wording to avoid misunderstanding — for example, to reference federal programs or federal law more broadly. The chair said staff would prepare an amendment for full committee consideration to adjust that wording.
Representative Hosey moved a favorable report; Representative Taylor seconded. Staff called the roll: Representative Newton — Aye; Representative Hosey — Aye; Representative Stavrunakis — excused; Representative Taylor — Aye; Representative Crawford — excused. The tally was 3 Aye, 0 No; the bill received a favorable report and will go to the full committee.
Committee members did not record any amendments in subcommittee. The bill’s sponsors and providers asked for the technical redraft at full committee to clarify which federal programs the exemption will apply to.
Ken Wells, introduced as representing the South Carolina Medical Equipment Services Association (SC MESA), told the committee that the original exemption, enacted in 2007, had been narrowed by a court ruling and needs technical correction. Wells said the 2007 law limited the exemption to businesses headquartered in South Carolina, but an out-of-state company successfully challenged that restriction and the Supreme Court upheld the appeals court decision. That ruling, Wells said, requires removing the headquarters limitation to conform with the U.S. Constitution’s interstate commerce clause.
Wells told lawmakers Medicare reimbursement cuts and the sales tax are squeezing small providers. “This tax is costing my business personally $6,000 a month,” Wells said, describing the financial pressure on small, often family-run firms. Kim Cannon, who identified herself as a DME provider and SC MESA board member at Hawthorne Medical Equipment and Pharmacy on Taylor Street, said the change has cost her business about $8,000 a month and that 18 counties in South Carolina currently have no DME providers.
Wells and Cannon asked the subcommittee to modify the bill’s language in one place: the draft currently references “Medicaid and Medicare,” and they recommended changing that wording to avoid misunderstanding — for example, to reference federal programs or federal law more broadly. The chair said staff would prepare an amendment for full committee consideration to adjust that wording.
Representative Hosey moved a favorable report; Representative Taylor seconded. Staff called the roll: Representative Newton — Aye; Representative Hosey — Aye; Representative Stavrunakis — excused; Representative Taylor — Aye; Representative Crawford — excused. The tally was 3 Aye, 0 No; the bill received a favorable report and will go to the full committee.
Committee members did not record any amendments in subcommittee. The bill’s sponsors and providers asked for the technical redraft at full committee to clarify which federal programs the exemption will apply to.
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