South Carolina: U.S. District Court Finds Municipalities Authorized to Delegate Insurance Premiums Tax Collection

The United States District Court for the District of South Carolina ruled that local municipalities are permitted to delegate their authority to collect delinquent taxes and penalties, and to engage in litigation to collect delinquent payments. The Municipal Association of South Carolina (MASC), a nonprofit organization made up of virtually all South Carolina municipalities, administers the Insurance Tax Program (ITP) and collects a gross premiums tax on behalf of municipal members. MASC sought unpaid taxes and penalties from the taxpayers who contended MASC lacked authority under South Carolina Code §5-7-300(E) because the statute failed to expressly authorize collection of delinquent ...