South Carolina

Here’s why you got a $50 check in the mail from the state of South Carolina

It was a Thanksgiving surprise for 1.2 million South Carolinians: As of Monday, the SC Department of Revenue has mailed a $50 check for every household that filed more than $50 in income taxes last year.

The money arrived from an unexpected source: $61 million in taxes paid by last year’s $1.5 billion Mega-Millions jackpot winner, plus a $6 million supplement from the state to maintain the $50 amount. Postage to send the checks cost $700,000.

The state legislature decided to send lottery proceeds back to taxpayers in April. However, not everybody got the memo.

Robert Payne, a retired Hilton Head Island resident, said that he threw his check in the trash when it arrived on Friday, assuming it was junk mail.

“Most people, when they look at the check, would think it’s a scam,” he said.

But when he was searching the trash for something else, he spotted it and called the state treasury to ask about its legitimacy. He said since he’s deposited it, he hasn’t “gotten any calls, so I assume it’s good.”

The legislature’s decision to send the money back to taxpayers came after an unsuccessful January push by Gov. Henry McMaster to include a $200 million rebate for taxpayers in the state’s executive budget, The State reported.

Lawmakers instead agreed to a $50 rebate funded by taxes from lottery winnings, with a source already in mind.

By the time the budget passed in May, the Mega Millions winner chose to receive $877,784,124 of the $1.5 billion jackpot in a one-time payout.

It was the largest payout to an individual in U.S. history, according to The State newspaper. The winner has remained anonymous, but is a South Carolina resident who bought the lucky ticket at a Simpsonville KC Mart.

While the prize money was reduced because of the one-time payout, the tax give-back remained the same as it was mailed to taxpayers like Payne, who said he plans to give the money to charity.

“All the checks are out,” he said. “If you haven’t taken out the trash, run and check it, quick.”

This story was originally published December 2, 2019 at 3:11 PM.

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Rachel Jones
The Island Packet
Rachel Jones covers education for the Island Packet and the Beaufort Gazette. She attended the University of North Carolina at Chapel Hill, and has worked for the Daily Tar Heel and Charlotte Observer. She has won awards from the South Carolina Press Association, Associated College Press and North Carolina College Media Association for feature writing and education reporting.
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