Tractor Supply Stuck With $1.4 Million South Carolina Tax Bill

Tractor Supply Co. and its affiliates are so closely intertwined that South Carolina can require them to file combined tax returns, a state appeals court ruled Wednesday, upholding a $1.4 million corporate income tax bill.

The company asked the court to overturn a 2023 administrative ruling that the state revenue department properly required the farm retailer to use combined unitary reporting to remedy unreliable transfer pricing between it and two subsidiaries. Transfer pricing refers to how companies assign prices to transactions among related entities, and it can be used to artificially shift income from a higher tax jurisdiction to a ...