Olds v. City of Goose Creek

The City of Goose Creek (the City) collected a business license fee on persons doing business within the city limits. The amount of the fee was based upon a business's gross income from the preceding year. The issue on appeal before the South Carolina Supreme Court stemmed from Todd Olds' dispute with the City as to the meaning of "gross income" under the City's business license fee ordinance. Since Olds and the City differed on the definition of gross income, their calculations of the amount of the fee owed differed too. The circuit court ruled the City's definition of gross income was correct, and the court of appeals affirmed. The Supreme Court granted Olds a writ of certiorari to address whether the court of appeals erred in its interpretation of the term "gross income" as defined and used in the City's business license ordinance. Under the very narrow facts of this case, the Supreme Court reversed. Based on the plain language of this particular ordinance, the Court found the City adopted the definition of gross income as provided in section 61(a)(3) of the I.R.C. for Olds' particular business. For Olds' business, "gross income" therefore meant "[g]ains derived from dealings in property." For the years in dispute, Olds' business license fee had to be calculated according to Olds' gains derived from dealings in property. View "Olds v. City of Goose Creek" on Justia Law