Could Charleston County council review taxpayer records in a business license appeal and disclose them publicly?

Plain-English summary

Charleston County's attorney asked whether county council could receive business license tax applications and audit materials when reviewing a taxpayer's appeal, and whether those records then became fully public. The 2000 informal opinion drew a distinction. Section 6-1-120 allowed officials to inspect and share taxpayer information in connection with audits, appeals, collection, and official duties, so the confidentiality statute did not bar council members from using it for the appeal.

For public access, the AG said information protected by Section 6-1-120 appeared exempt under FOIA. The council could separate exempt material and make the rest of the appeal record available. The letter also cited a circuit court ruling that nonfinancial business license application information, such as the applicant's name and the business's name, location, and type, had to be disclosed. It rejected the suggestion that a public council appeal made every financial detail public.

Currency note

This opinion was issued in 2000. Subsequent statutory amendments, court decisions, or later
AG opinions may have changed the analysis. Treat this page as historical context, not current
legal advice. Verify current law before relying on any specific rule, deadline, or remedy
mentioned here.

Common questions

Q: Could council members see confidential tax information during an appeal?
A: Yes. The AG said Section 6-1-120 permitted official inspection and sharing for the appeal and related duties.

Q: Did a public council meeting open the entire taxpayer file to inspection?
A: No. The opinion said the county could redact information protected by the tax-confidentiality statute before making the remaining record available.

Q: What license application details did the cited court ruling say were public?
A: The letter reported that the circuit court required access to nonfinancial details, including the applicant's name and the business's name, location, and type.

Background and statutory framework

The opinion discussed Section 6-1-120 as amended in 2000, including its protection for taxpayer financial information and its exceptions for official audits, appeals, collections, and data sharing. It then applied Section 30-4-40's exemption and separation provisions to the council appeal record. The answer distinguished access by officials handling an appeal from access by members of the public.

Citations and references

• Section 6-1-120, taxpayer information protection and official-use exceptions.
• Section 30-4-40, exemptions and separation of exempt from nonexempt public-record material.

Official title

Informing this Office that pursuant to S.C. Code Ann. § 4-9-30(12), Charleston County imposes a business license tax on the conduct of business in the unincorporated areas of the county.

Requester

Samuel W. Howell, IV, Esquire

Source

• Landing page: https://www.scag.gov/opinions/opinions-archive/june-28-2000/
• Original PDF: https://www.scag.gov/wp-content/uploads/2013/11/00june28howell.pdf

Original opinion text

·1

The State of South Carolina

OFFICE OF THE ATTORNEY GENERAL
CHARLIE CONDON
ATTORNEY GENERAL

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June 28, 2000

Samuel W. Howell, IV, Esquire
Charleston County Attorney
Post Office Box 1119
Charleston, South Carolina 29402-1119

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RE:

Informal Opinion

Dear Mr. Howell:
Your opinion request has been forwarded to me for reply. I apologize for the delay in responding to your request but, as you know, the statute in question has been the subject of recent litigation and legislative amendment. These matters have now been resolved. You have informed this Office that pursuant to S.C. Code Ann. § 4-9-30(12), Charleston County imposes a business license tax on the conduct of business in the unincorporated areas of the county. County agents conduct inspections and make audits for purposes of enforcing the business licence imposed by county ordinance. Any person aggrieved by a final assessment, charge back from an audit, or a denial of a business license may appeal to the Business License/User Fee Appeals Board. The decision of the appeals board is final unless appealed to the Charleston County Council within ten days of service of the Board's decision. County Council reviews the record and decides the appeal without further hearing. County Council's decision is then appealable to the circuit court. In your opinion request, you state: During the 1999 term of the legislature, Act No . I I l of 1999 was enacted, effective 30 June 1999. Section I of Act No. 111 (codified at Section 6-I-120(A)) provides that ·' it is unlawfol for an officer or employee of a county or municipality. or the agent of such an officer or employee to divulge or make known in any manner the information provided by taxpayer included in a report. tax return. or application required to be filed by the taxpayer with that county or municipality. pursuant to a

Mr. Howell
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June 28, 2000

county or a municipal ordinance imposing a : ... (2) business license tax authorized under Section 4-9-30(12) .... " Paragraph (B) of that section provides that ·'nothing in this section prohibits the ... (2) inspection ofreports, returns. or applications and the infonnation included on them by an ofiicer or employee of the county or municipality or an agent retained by an officer or employee in connection with audits of the taxpayer. appeals by the taxpayer. and collection efforts in connection with the tax or fee which is the subject of the return, report, or application.'' It appears to me that the statute contemplates that materials obtained in the application or as a result of an audit of the taxpayer. in a contested case subject to an appeal. may be released to the members of the County Council for use in their evaluation of the appeal. Pursuant to the Freedom oflnformation Act (S.C. Code Section 30-4-60). the meeting of Charleston County Council at which the appeal of a business license matter is to be considered must be open to the public. I have been unable to identify any exemption from the definition of··public record'' contained in S.C. Code Section 30-4-20(c) for the record on appeal to Charleston County Council in a business license appeal matter. Consequently, it appears to me that any person has a right to inspect and copy that record under S.C. Code Section 30-4-30(a).

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In summary, it appears to me that the application and materials gathered by county officers in an inspection or audit which becomes the matter of an appeal by the taxpayer may be properly disclosed to the members of Charleston County Council for that appeal. As a result of the Freedom of Information Act those materials become fully disclosable to the public as a result of being a public record and as part of a public meeting of Charleston County Council. Because of the severe penalties involved in violation Act No. 111 of 1999 (fine or imprisonment or both, and loss of employment for five years). I should greatly appreciate your assistance and opinion in analyzing this situation. Business license appeals occur routinely several times each vear for Charleston Countv
. government. It is thus. a matter of continual concern and on-going importance.

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The General Assembly recently amended S.C. Code Ann. § 6-1-120 by Act No. 269 of :2000. The section now provides as follows:

Mr. Howell
Page 3
June 28. 2000

(A) Except in accordance with a proper judicial order or as otherwise provided by the Freedom of Information Act, it is unlawful for an officer or employee of a county or municipality, or the agent of such an officer or employee to divulge or make known in any manner the financial information, or other information indicative of units of goods or services sold, provided by a taxpayer included in a report. tax return. or application required to be filed by the taxpayer with that county or municipality pursuant to a county or municipal ordinance imposing a:

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(1) tax authorized under Article 5 or Article 7:

(2) business license tax authorized under Section 4-9-30(12) or Section 5-730: (3) fee the measure of vvhich is: (a) gross proceeds of sales of goods or services: or (b) paid admissions to a place of amusement. (B) Nothing in this section prohibits the: ( 1) publication of statistics classified to prevent the identification of particular reports. returns, or applications and the information on them: (2) inspection ofreports, returns, or applications and the information included on them by an officer or employee of the county or municipality. or an agent retained by an officer or employee, in connection \Vi th audits of the taxpayer. appeals by the taxpayer. and collection efforts in connection with the tax or fee which is the subject of the return. report. or application: (3) sharing of data bet\veen public officials or employees in the performance

of their duties.
(C) A person vvho knowingly violates the provisions of this section is guilty of a

misdemeanor and. upon conviction. must be fined not more than one thousand dollars or imprisoned not more than one year. or both. In addition. if the person convicted is an ot1icer or employee of the county or municipality. the offender must be

Mr. Howell
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June 28, 2000

dismissed from the office or position held and is disqualified from holding a public office in this State for five years following the conviction. The first issue raised in your request is ·'[i]t appears to me that the statute contemplates that materials obtained in the application or as a result of an audit of the taxpayer. in a contested case subject to an appeal, may be released to the members of the County Council for use in their evaluation of the appeal.'' I agree with your assessment of this issue. Section 6-l-120(B)(2) specifically provides that nothing in the section prohibits the "'inspection of reports, returns, or applications and the information included on them by an officer or employee of the county or municipality, or an agent retained by an officer or employee, in connection with audits of the taxpayer, appeals by the taxpayer, and collection efforts in connection with the tax or fee which is the subject of the return. report, or application." This past legislative session, the General Assembly further clarified this issue by adding Section 6-1-120(8)(3) which provides that nothing in the section prohibits the "sharing of data between public officials or employees in the performance of their duties ... Accordingly, Section 6-1-120 does not bar the release of taxpayer information to members of county council for use in the evaluation of an appeal. The next issue raised in your request is: Pursuant to the Freedom oflnformation Act (S.C. Code Section 30-4-60). the meeting of Charleston County Council at which the appeal of a business license matter is to be considered must be open to the public. I have been unable to identify any exemption from the definition of·'public record" contained in S.C. Code Section 30-4-20(c) for the record on appeal to Charleston County Council in a business license appeal matter. Consequently. it appears to me that any person has the right to inspect and copy that record under S.C. Code Section 30-4-30(a). Section 30-4-40 lists those items which may be exempt from disclosure under the FOIA. It \vould appear that information discussed in Section 6-1-120 may be exempt as
··[M]atters specifically exempted from disclosure by statute or lmv ... S.C. Code Ann.§ 30-4..J.O(a)( 4 ). Pursuant to Section 30-4-40(b). if a public record contains material \vhich is exempt. the public body shall separate the exempt and nonexempt material and make the nonexempt material available in accordance with the requirements of the FOIA. Thus. it would appear that county council would be entitled to redact information discussed in Section 6-1-120 from the record before allowing an individual to inspect or copy the record.

Mr. Howell
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June 28, 2000

I would also like to call your attention to the recent case The State-Record Co., Inc. Plaintiffs. v. Citv of Columbia, Defendant, C.A. No. 99-CP-40-3284. In this case, the circuit court declared that:
... §6- l-l 20(A) must be read to preclude disclosure only of financial information contained in business license applications. Based on this determination, the court concludes that defendant's failure to provide public access to the non-financial information contained in business license applications, including specifically the name of the applicant, and the name, location and type of business, is a violation of the FOIA. Based on this declaration. the court ordered that defendant be permanently restrained and enjoined from withholding public access to the non-financial information contained in a business license application, including specifically the name of the applicant and the name, location, and type of business for which a license is sought. This letter is an informal opinion only. It has been written by a designated assistant attorney general and represents the position of the undersigned attorney as to the specific questions asked. It has not, however, been personally scrutinized by the Attorney General nor officially published in the manner of a formal opinion. With best personal regards, I am Sincerely yours,

B_J.~4
Paul M. Koch
Assistant Attorney General