Lowe’s Grilled by South Carolina Judges in Sales Tax Dispute

Judges grilled Lowe’s Homes Centers LLC over its practice of remitting sales tax on the wholesale price, instead of retail price, of materials it acquired for installation contracts, during oral arguments in the South Carolina Court of Appeals.

“The way you do it, aren’t you basically skipping out on paying a retail sales tax?” Chief Judge James E. Lockemy asked Tuesday.

Lowe’s counsel, Michael McConnell of Jones Day, said the company was complying with the state’s Dual Business Regulation, which requires it to buy materials for its installation contracts at wholesale price. The regulation applies to the company because it’s ...