Freedom First Outfitters, a sporting goods shop owned by state Senate District 35 Republican nominee Mike Jones, owed tens of thousands of dollars in tax liens according to Department of Revenue records obtained by The State.
Some liens were assessed during his run for the state Senate when he put thousands of his own dollars into his campaign and even took out a loan.
The latest lien on the Camden business that sells firearms was for more than $17,000 in late sales taxes and penalties owed.
But Jones said the business pays off the liens quickly after they’re levied and much of the issues deal with the timing of gun sales and whether background checks delay certain sales.
“These taxes are part of Freedom First Outfitters, which is its own entity, which has its own income, brings in its own income source and it pays its own taxes,” Jones said in an interview.
Jones said he does not take a salary from the business, but his wife, Terry, does. Jones, an army veteran, said contributions to his campaign came out of his personal resources.
Still, the appearance of the liens led to questions from a third party group about why Jones put his own money into his campaign while having tax liens on the business he’s owned for 10 years.
An expensive race
Jones is running to succeed state Sen. Thomas McEleveen, D-Sumter, who opted not to run for reelection. The district, which includes parts of Kershaw, Lee, Richland and Sumter counties has a Democratic partisan lean of 52 to 46% , according to Dave Redistricting.
The district is one Republicans may look to flip in November’s election .
Jones, who won the GOP nomination sought by three other candidates, is facing Democratic nominee Jeffrey Graham .
Through the end of June, Jones had raised $55,000 for his campaign, but ended the second quarter with only $11,000 cash on hand, according to state ethics commission records.
Jones has put his own resources into his campaign.
Jones took out a $10,000 loan for his campaign, state ethics records show. He also has put in more $25,000 into the race, which includes more than $21,000 in personal contributions ahead of the primary.
Last month, SC Taxpayers for Accountability, a third party group, sent a text message out to voters calling into question the liens levied on Jones’ business.
“Mike Jones had a choice to pay off one of his tax liens, but instead, he chose to give $10,000 to his campaign so he can profit off power. How much more money is Mike Jones going to take from taxpayers to direct to his campaign?” the text message read.
To win the nomination he faced off against Lindsay Agostini, Christina Allard and Jerry Chivers in the primary, and had to defeat Agostini in a runoff election , necessitating the high spending.
In the general election, Jones faces a candidate who has campaign staff and has an ability to raise money.
Through the end of June, Graham raised more than $119,000 for his race, as he also went through a competitive primary. Graham had more than $13,000 cash on hand at the end of June, according to the ethics commission.
Freedom First has had multiple tax liens
A lien filed in September for $17,000 covers taxes owed to the state in February, March, April and May of this year. Tax records showed the business owed more than $13,000 in taxes, a $2,600 penalty and more than $1,300 in interests and costs.
An earlier lien, filed in August showed First Freedom Outfitters owed more than $8,000 according to Department of Revenue documents obtained by The State.
Both of those liens have since been paid this month. A lien filed in June was also paid this month, according to Revenue records .
Freedom First Outfitters also had a lien filed in May 2022 and one in June 2023. Both were paid the month the Department of Revenue filed the liens.
According to the S.C. Department of Revenue, a tax lien usually takes about two months after a tax balance isn’t paid.
The department first issues an assessment on an individual or business if they don’t pay taxes they own on time. The assessment would include the tax owed, interest and penalties. A tax lien is then filed within 30 to 60 days of the assessment, the revenue department said in a statement.
Jones said the liens come when gun sales are delayed and straddle different months. The business might not pay the sales taxes right away because it wants to make sure the sale can go through or see if money has to be refunded if the customer pre-paid while waiting. He also ships firearms to other states as part of his business.
“Some of those transactions get put on hold,” Jones said.
Because gun buyers have to go through background checks, sales can be delayed as the store has to wait for the ATF to clear the purchase.
“It’s technically not a transaction that month,” Jones said. “We have to go back and scrub some of that and take some of those off. And there’s different things that go back and forth on that and so when the accountant tells me they’re ready to be paid, they’re paid.”
Jones denied any kind of wrong doing or using sales tax his business collected for other purposes.
“At no point in time, we withheld the money because we didn’t have it. We didn’t not pay the tax and use it somewhere else or anything,” Jones said.
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