Recent South Carolina Apportionment Decisions
Two recent decisions confirm the broad alternative apportionment authority granted by S.C. Code § 12-6-2320 , and recognize that alternate apportionment methods can be used by the South Carolina Department of Revenue (SCDOR) and the taxpayer to determine corporate income tax liabilities. S.C. Code Ann. § 12-6-2320 gives the SCDOR or the taxpayer the ability to use “any method” that equitably allocates and apportions a taxpayer’s income in the event that the standard allocation methods within the South Carolina Income Tax Act “do not fairly represent the extent of the taxpayer’s business activity” in South Carolina. Media General Communications, Inc., et al. v. South Carolina Department of Revenue, Opinion No. 26828 (S.C. Sup. Ct. June 14, 2010) (“Media General”) . Multistate corporations (taxpayers) sought contested case review before the South Carolina Administrative Law Court ("SCALC") of a determination by the SCDOR employing the standard income apportionment met