COLUMBIA — Recommendations have not been finalized, but a preliminary report from a group of business and tax experts addresses options the state will have for broadening its tax collecting abilities in the coming year.

The Tax Realignment Commission (TRAC) is a group appointed by the governor and leaders of the state House and Senate, charged with conducting an independent study on the state’s tax structure, according to Sen. Larry Martin, R-Pickens.

Martin said that according to preliminary reports, the group is suggesting that the state broaden the tax base and make it more fair and equitable for everyone, including the possibility of doing away with some sales tax exemptions while lowering the actual tax rate for all.

But Martin emphasized that an official report has not been submitted to the legislature and that there will be a lot of discussions about the recommendations prior to the next session.

The preliminary report also addresses the state’s collection of sales taxes for online purchases, but Martin said state law already requires that individuals do so through their yearly state income tax.

The challenge, he said, is collecting those taxes, pointing out that many do not pay.

It will take either federal legislation, or some major agreement between all the states, to ensure those purchasing items outside of South Carolina pays the sales taxes on those items, Martin said.

The Pickens senator estimated that non-payment of internet sales taxes costs the state between $300 million and $400 million each year.