By Dan McCue

Gov. Mark Sanford visited Charleston this morning and will be in the Upstate this afternoon to protest an incentive package passed by the Legislature that he says forces small businesses in the state to subsidize larger corporate competitors.

The legislation—initially vetoed by Sanford—provides what the governor describes as “sizable and unprecedented tax rebates” to outdoor retailers like Cabela’s and Bass Pro Shops without reliable guarantees that these stores would meet sales and visitor goals.

Cabela’s has long been working to open a location in the city of North Charleston, while Bass Pro Shops has been eyeing a sizable location in Duncan.

In vetoing H. 3749, Sanford said the bill “does what we should never do to small businesses in our state—it takes their money to subsidize a large corporate competitor that could well put them out of business.”

Sanford described the bill as “unprecedented” in regard to an incentive that would qualify the big-box retailers for job tax credits for every full-time position created and up to a possible 50 cents in rebates on every dollar generated in sales tax by its planned stores. 

 “We have never before used sales taxes in this way, and in total, taxpayers would have been saddled with almost $9 million in possible incentives in the first five years,” Sanford said. “This is true special interest legislation.”

Unlike previous versions of the bill, which were geared solely to Cabela’s and which Sanford also vetoed, the latest version opened the incentive statewide in an effort to lure a Bass Pro Shops to the Upstate.

“Companies like Sportsman’s Warehouse are expanding to our state without these incentives,” Sanford said. “It’s extremely unfair to ask retailers who haven’t been given the advantage of these kinds of tax incentives to subsidize a competitor.”

According to the governor, the bill grants its benefits before the store opens its doors and reaches any of the qualifying criteria.

“According to the bill, the Department of Parks, Recreation & Tourism may grant a conditional certification if it ‘looks like’ the store may meet requirements such as attracting 3.5 million visitors per year, investing a least $25 million, and reaching $33 million in sales,” he said. “In addition, once the store is certified under this hypothetical scenario, there is no further certification process in years to come.”

Ultimately, Sanford said, the incentive package could open “Pandora’s box” in regard to future tax exemptions.

Sanford will be at Brown’s Bait & Tackle, located at 404 Berry Shoals Road in Duncan, at about 1:45 p.m. for what his staff is describing “a call to attention” regarding the legislation.

The governor isn’t expected to propose any reform legislation at this time.

In all, Sanford vetoed 243 bills sent to him by the Legislature this year. The state Legislature sustained only 15 of them.