SC attorney general opposes tax incentives for retail projects

S.C. Attorney General Henry McMaster, a Republican candidate for governor, said during a campaign stop in Sun City Hilton Head Saturday that he is "not convinced the law should be changed" to give tax incentives to retail developers such as the Sembler Co.

Sembler plans to build Okatie Crossings, a 280-acre shopping center and luxury outlet mall in Beaufort and Jasper counties. Sembler has said the incentives are critical to its plan.

Saturday's statement, which came in response to a question from a Sun City resident, was the first time McMaster has spoken publicly on the bill for which Sembler is lobbying.

That bill could come to the Senate floor as soon as Tuesday.

"I'm not sure we should be in the business of judging one retail establishment against another," McMaster said of choosing which retailers should get tax incentives.

McMaster's office wrote an opinion on similar legislation in 2009.

The opinion, which was written by an assistant attorney general and is not legally binding, examined legislation passed into law several years ago that would have allowed the state to use tax incentives to lure "extraordinary retail facilities."

The office questioned the constitutionality of the law because it "permits a select few retail establishments to obtain an advantage allowing them to compete in free enterprise with other businesses that are not allow(ed) such an advantage," according to the opinion. "... We must caution you that a court would likely find this legislation unconstitutional."

On Saturday, McMaster said, "It was my opinion then and it is my opinion now."

McMaster, addressing the Sun City Republican Club, said he has gained the executive experience necessary to be governor from his current post as state attorney general and from his former position as a U.S. Attorney under President Ronald Reagan.

"We need to put South Carolina back on the path to prosperity," McMaster said.

He said the state already has the resources necessary -- including ports, technical schools and agricultural potential -- for an economic turn-around.

The other Republican candidates for governor are U.S. Rep. Gresham Barrett, Lt. Gov. Andre Bauer and state Rep. Nikki Haley. Democratic candidates include state Sen. Robert Ford, state superintendent of education Jim Rex and state Sen. Vincent Sheheen.