U.S. Supreme Court won't hear challenge to Hilton Head business tax
The U.S. Supreme Court won't hear a plea from a Hilton Head Island company challenging how the town collects business-license fees.
The high court on Monday denied a request to review Kigre Inc.'s appeal of a ruling in June that upheld the town's practice. The court did not give a reason for the decision.
Last summer, the S.C. Supreme Court ruled the town does not violate the U.S. Constitution's interstate commerce clause by charging Kigre a fee based upon its revenue. Kigre, a laser-component manufacturer on Marshland Road, has argued it should not have to pay the full amount since most of its revenue is from out-of-state customers.
"While disappointed, Kigre accepts the ruling of the U.S. Supreme Court," said Tom Taylor, Kigre's attorney. "(The company) will abide by it."
Town officials have defended the practice, citing previous state court rulings that affirmed municipalities can impose the fees -- no matter where the sales occur.
"We're obviously very pleased that the position of the town and (previous court) orders ... have been upheld," town attorney Greg Alford said.
The Supreme Court was unlikely to hear the case. It receives about 10,000 requests for review each year and only accepts 70 or 80, or less than 1 percent, according to its website.
But the high court's denial won't end the nine-year legal battle between the company and the town.
Kigre still plans to pursue pending legal action in federal and state courts, Taylor said.
In federal court, Taylor has asked U.S. District Judge Sol Blatt Jr. to reactivate Kigre's lawsuit against the town. The company said it paid "excessive" business license fees -- about $87,000 -- from 2007 to 2012. The town denies the claims, arguing that many similar issues have been decided in court.
Blatt halted the lawsuit pending a decision in the Supreme Court case. Taylor said the case could be restarted within three months.
In a state lawsuit filed last month, Kigre protests paying $12,000 from 2013 to 2014. Taylor said the fees were twice what the town should have charged.
"This was entirely based on animosity and discrimination from town staff," Taylor said Tuesday. "This is not about the money at issue. This is a matter of principle."
The town has not filed a response to the lawsuit. Alford said Wednesday the town denies the claims and will respond within the next week.
"We expect a similar outcome as those that have already been litigated," he said.
Meanwhile, Kigre is still considering moving off Hilton Head, Taylor said. He said the company is "actively exploring sites in and out of state," but declined to say where.
The move would take 50 jobs from the island, he said.
"Considering the type of business development the county wants to attract -- high-paying, tech jobs -- Kigre is disappointed in the town's continued fight," Taylor said. "Now that the Supreme Court has ruled, that will likely bring the decision (whether to move) to a head."
Follow reporter Dan Burley on Twitter at twitter.com/IPBG_Dan.
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- Kigre asks US Supreme Court to hear Hilton Head dispute , Oct. 28, 2014
This story was originally published January 15, 2015 at 1:35 PM with the headline "U.S. Supreme Court won't hear challenge to Hilton Head business tax."