Which exemptions apply to South Carolina's local sales and use taxes collected by the Department (per SC IL #07-1)?

Plain-English summary

This Information Letter is the Department's reference chart showing which exemptions apply to each type of local sales and use tax it collects. South Carolina law lets the citizens of a county impose one or several different local sales and use taxes depending on local needs. Most of these local taxes grant the same exemptions, but there are some differences — so the Department publishes a chart mapping the exemptions against each local tax type.

The chart covers the general local sales and use taxes the Department collects on behalf of counties, school districts, and the Catawba Indian tribal government, reflecting the state exemptions (for example those in § 12-36-2120) and the § 12-36-2110 maximum-tax cap. This January 8, 2007 edition reflects that, effective January 1, 2007, Allendale County no longer imposes the 1% Capital Projects Tax. It supersedes a series of earlier editions of the chart.

It does not cover the local taxes on accommodations or on prepared meals, which the counties collect directly rather than through the Department.

What this means for you

If you make taxable sales in South Carolina, use this chart to check whether a state exemption also applies to the particular local sales and use tax in the county where the sale occurs — the exemptions are not identical across every local tax type. Note the Allendale County change effective January 1, 2007, and remember the chart does not address the separately collected local accommodations or prepared-meals taxes. Because local taxes change, confirm the current chart (this edition was later superseded).

Common questions

Q: What does this chart tell me?
A: Which exemptions apply to each type of local sales and use tax the Department collects for counties, school districts, and the Catawba tribal government.

Q: What changed in this edition?
A: Effective January 1, 2007, Allendale County no longer imposes the 1% Capital Projects Tax.

Q: Does it cover local accommodations or restaurant (prepared-meals) taxes?
A: No. Those are collected directly by the counties and are outside this chart.

Subject

Exemptions - Local Sales and Use Taxes Collected by the Department of Revenue

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL07-1.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org

SC INFORMATION LETTER 07-1

SUBJECT:

Exemptions - Local Sales and Use Taxes Collected by the Department of
Revenue
(Sales and Use Tax)

DATE:

January 8, 2007

SUPERSEDES:

SC Information Letter #97-1, SC Information Letter #99-11, SC Revenue
Informational Bulletin #00-16, SC Revenue Informational Bulletin #01-1,
SC Revenue Informational Bulletin #02-2, SC Revenue Informational
Bulletin #02-21, SC Information Letter #03-7, SC Information Letter #0326, SC Information Letter #04-9, SC Information Letter #05-1, SC
Information Letter #05-15, SC Information Letter #06-9, SC Information
Letter #06-16 and all previous documents and any oral directives in conflict
herewith.

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (Supp. 2006)
SC Revenue Procedure #05-2

SCOPE:

An Information Letter is a written statement issued to the public to
announce general information useful in complying with the laws
administered by the Department. An Information Letter has no
precedential value.

The South Carolina Code of Laws allows the imposition of various types of local sales and use
taxes. As such, the citizens of a county, depending upon the needs within the county, may impose
one or several local sales and use taxes. While most of these local sales and use taxes provide the
same exemptions for certain sales and purchases, there are some differences. Attached is a chart
that should provide guidance concerning the various types of local sales and use taxes collected
by the Department of Revenue and the types of exemptions allowed under each tax. Please note
that this chart only addresses the general local sales and use taxes collected by the Department of
Revenue on behalf of the counties, school districts, and the Catawba Indian tribal government. It
does not address the local taxes on sales of accommodations or on sales of prepared meals that are
collected directly by the counties.

SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

12-36-2120
12-36-2130
STATE
EXEMPTIONS

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD
SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Abbeville

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Aiken

Capital Projects
4/1/06

Yes

Yes

No

Yes

No

Yes

1 & 12

Allendale

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

5

Bamberg

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Barnwell

Local Option
5/1/99

Yes

Yes

Yes

Yes

No

Yes

Beaufort

NOTE

6

Berkeley

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Calhoun

Local Option
5/1/05

Yes

Yes

Yes

Yes

No

Yes

Catawba Indian
Reservation

Tribal Tax
(See Note #14)

Yes

No

No

Yes

No

No

Charleston

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Transportation

Yes

Yes

No

Yes

No

Yes

1& 8

13 &14

5/1/05
Cherokee

Cherokee School
7/1/96

Yes

Yes

No

Yes

Yes

Yes

1

Chester

Local Option
5/1/94

Yes

Yes

Yes

Yes

No

Yes

3

Chesterfield

Local Option
5/1/97
Chesterfield
School
9-1-00

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Local Option

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes - until
6/30/05

Yes

Clarendon

1&4

5/1/97
Clarendon
Schools
6/1/04

Colleton

Local Option
7/1/91

No - effective
7/1/05
Yes

Yes

Yes

2

Yes

No

Yes

1 & 11

SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

Darlington

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

12-36-2120
12-36-2130
STATE
EXEMPTIONS

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD
SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

NOTE

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Darlington
School

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

Capital Projects

Yes

Yes

No

Yes

No

Yes

1&7

Yes

Yes

No

Yes

No

Yes

1

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

No

Yes

Local Option
5/1/94

Yes

Yes

Yes

Yes

No

Yes

Capital Projects

Yes

Yes

No

Yes

No

Yes

1 & 10

2/1/04
Dillon

5/1/03
Dorchester

Edgefield

Transportation
5/1/05
Local Option
5/1/92

Fairfield

Florence

Local Option
5/1/06

16

5/1/07
Greenwood

Capital Projects
5/1/07

Yes

Yes

No

Yes

No

Yes

Hampton

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/01/03

Yes

Yes

No

Yes

No

Yes

1&9

Horry

Capital Projects
5/1/07

Yes

Yes

No

Yes

No

Yes

17

Jasper

Local Option
7/1/91
Jasper School
12/1/02

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Kershaw

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Lancaster

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Laurens

Local Option
5/1/99

Yes

Yes

Yes

Yes

No

Yes

3

1&2

SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

Lee

Lexington

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

12-36-2120
12-36-2130
STATE
EXEMPTIONS

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD
SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Local Option
5/1/96
School District
10/1/06

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

1 & 15

Yes

Yes

No

Yes

Yes

Yes

1

Lexington
Schools
3/1/05

NOTE

Marion

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Marlboro

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

McCormick

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Newberry

Capital Projects
4/1/05

Yes

Yes

No

Yes

No

Yes

1 &12

Orangeburg

Capital
Projects
4/1/06

Yes

Yes

No

Yes

No

Yes

1 & 12

Pickens

Local Option
5/1/95

Yes

Yes

Yes

Yes

No

Yes

Richland

Local Option
5/1/05

Yes

Yes

Yes

Yes

No

Yes

Saluda

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Sumter

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

Williamsburg

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

York

Capital Projects
10/1/04

Yes

Yes

No

Yes

No

Yes

LOCAL TAX RATES:
Each local tax listed in the above chart is imposed at a rate of 1%, except for the Charleston
county Transportation tax which is imposed at a rate of ½ of 1% and the Catawba Tribal Sales
and use tax. See Notes #13 and #14 for information on the tax rates and the application of
either the State sales and use tax or the Catawba Tribal sales and use tax for sales (deliveries)
made on the Catawba Indian Reservation.

4

1 & 12

TYPES OF LOCAL SALES AND USE TAXES:
Local Option: The local option sales and use tax is authorized under Code Section 4-10-10
et. seq. This tax is a general sales and use tax on all sales at retail (with a few exceptions)
taxable under the state sales and use tax. This tax is imposed to reduce the property tax
burden on persons in the counties that impose this type of local tax and is collected by the
Department of Revenue on behalf of these counties.
Capital Projects: The local capital projects sales and use tax is authorized under Code
Section 4-10-300 et. seq. This tax is a general sales and use tax on all sales at retail (with a
few exceptions) taxable under the state sales and use tax. This tax is imposed specifically to
defray the debt service on bonds issued for various capital projects in the counties that
impose this type of local tax and is collected by the Department of Revenue on behalf of
these counties.
Transportation: The local transportation projects sales and use tax is authorized under Code
Section 4-37-30 et. seq. This tax is a general sales and use tax on all sales at retail (with a
few exceptions) taxable under the state sales and use tax. This tax is imposed specifically to
defray the debt service on bonds issued for various transportation projects in the counties that
impose this type of local tax and are collected by the Department of Revenue on behalf of
these counties.
Cherokee School: The Cherokee County School District One School Bond-Property Tax
Relief Act provided, that upon public approval in a referendum conducted by the Cherokee
County Election Commission, a 1% sales and use tax be imposed in Cherokee County for not
more than 20 years. The revenue from this sales and use tax is used to pay debt service on
general obligation bonds which were issued to defray the costs of specified improvements for
Cherokee County School District One. See Act No. 588 of 1994.
Union School: The School District of Union County School Bond-Property Tax Relief Act
provided, that upon public approval in a referendum conducted by the Union County Election
Commission, a sales and use tax (not to exceed 2%) be imposed in Union County for not
more than 25 years. The revenue from this sales and use tax will be used to pay debt service
on general obligation bonds which were issued pursuant to the School Bond Act or to pay
directly costs of acquisition or construction of specified improvements for the School District
of Union County. As of the date of this information letter, the sales and use tax
authorized under School District of Union County School Bond-Property Tax Relief
Act has not been imposed in Union county. See Act No. 497 of 1998.
Colleton School: The Colleton County School District School Bond-Property Tax Relief Act
provided, that upon public approval in a referendum conducted by the Colleton County
Election Commission, a 1% sales and use tax be imposed in Colleton County for not more
than 20 years. The revenue from this sales and use tax is used to pay debt service on general
obligation bonds which were issued pursuant to the School Bond Act. As of the date of this
information letter, the sales and use tax authorized under the Colleton County School
District School Bond-Property Tax Relief Act has not been imposed in Colleton county.
See Act No. 462 of 1998.

5

Chesterfield School: The Chesterfield County School District School Bond-Property Tax
Relief Act provided, that upon public approval in a referendum conducted by the Chesterfield
County Election Commission, a sales and use tax (not to exceed 1%) be imposed in
Chesterfield County for not more than 25 years. The revenue from this sales and use tax is
used to pay debt service on general obligation bonds which were issued pursuant to the
School Bond Act, or to pay directly the cost of acquisition or construction of any of the
improvements identified in the school board’s resolution. See Act No. 441 of 2000.
Berkeley School: The Berkeley County School District School Bond-Property Tax Relief
Act provided, that upon public approval in a referendum conducted by the Berkeley County
Board of Elections and Registration, a 1% sales and use tax be imposed in Berkeley County
for not more than 20 years. The revenue from this sales and use tax is used to pay debt
service on general obligation bonds which were issued pursuant to the School Bond Act. As
of the date of this information letter, the sales and use tax authorized under the
Berkeley County School District School Bond-Property Tax Relief Act has not been
imposed in Berkeley county. See Act No. 178 of 1999.
Jasper School: The governing body of the Jasper County School District may impose, by
referendum, a sales and use tax not exceeding 1% for not more than 25 years. The revenue
must be used to pay debt service on general obligation bonds issued pursuant o the School
Bond Act. See Act No. 146 of 2001.
Personal Property Tax Relief: The personal property tax relief sales and use tax is
authorized under Code Section 4-10-540. et. seq. This tax is a general sales and use tax on
all sales at retail (with a few exceptions) taxable under the state sales and use tax. This tax is
imposed in lieu of the personal property tax imposed on private passenger motor vehicles,
motorcycles, general aviation aircraft, boats, and boat motors. The tax may not exceed the
lesser of 2% or the amount necessary to replace the property tax on vehicles, motorcycles,
general aviation aircraft, boats, and boat motors in the most recently completed fiscal year.
As of the date of this information letter, this tax is not being imposed.
Richland County School Districts: The Richland County School Districts Property Tax
Relief Act provided, that upon public approval in a referendum, a 1% sales and use tax may
be imposed within Richland County for not more than 20 years. The proceeds of the tax must
be distributed to the three school districts in Richland County. As of the date of this
information letter, the sales and use tax authorized under the Richland County School
Districts Property Tax Relief Act has not been imposed in Richland county. See Act No.
326 of 2002.
Pickens County School District: The School District of Pickens County School Bond
Property Tax Relief Act provided, that upon public approval in a referendum, a 1% sales and
use tax may be imposed within Pickens County for not more than 20 years. The proceeds of
the tax must be distributed to the three school districts in Pickens County. As of the date of
this information letter, the sales and use tax authorized under the School District of
Pickens County School Bond Property Tax Relief Act has not been imposed in Pickens
county. See Act No. 463 of 2002.

6

Darlington County School District: The School District of Darlington County School Bond
Property Tax Relief Act provided that upon public approval in a referendum, a 1% sales and
use tax may be imposed within Darlington County for not more than 26 years. The revenue
from this sales and use tax is used to pay debt service on general obligation bonds which
were issued pursuant to the School Bond Act. See Act No. 132 of 2003.
Newberry County School District: The Newberry County School District School Bond
Property Tax Relief Act provided, that upon public approval in a referendum, a sales and use
tax not exceeding 1% may be imposed within Newberry for not more than 30 years. The
revenue from this sales and use tax is used to pay debt service on general obligation bonds
which were issued pursuant to the School Bond Act or to pay directly costs of acquisition or
construction of any of the improvements identified in the resolution providing for the
imposition of the tax. As of the date of this information letter, the sales and use tax
authorized under the Newberry County School District School Bond Property Tax
Relief Act has not been imposed in Newberry county. See Act No. 151 of 2003.
Clarendon County School District: The Clarendon County School Districts Property Tax
Relief Act provided, that upon county ordinance, a 1% sales and use tax may be imposed
within Clarendon for not more than 20 years. The revenue from this sales and use tax is used
to reduce ad valorem property taxes imposed to pay debt service on general obligation bonds
or to otherwise defray the cost of capital improvements within each school district. See Act
No. 355 of 2004 and Act No. 195 of 2005.
Edgefield County School District: The School District of Edgefield County School Bond
Property Tax Relief Act provided, that upon public approval in a referendum, a 1% sales and
use tax may be imposed within Edgefield County for not more than 26 years. The revenue
from this sales and use tax is used to pay debt service on general obligation bonds which
were issued pursuant to the School Bond Act or to pay directly costs of acquisition or
construction of any of the improvements identified in the resolution providing for the
imposition of the tax. As of the date of this information letter, the sales and use tax
authorized under the School District of Edgefield County School Bond Property Tax
Relief Act has not been imposed in Edgefield county. See Act No. 365 of 2004.
Horry County School District: The Horry County School District School Bond Property
Tax Relief Act provided, that upon public approval in a referendum, a sales and use tax not
exceeding 1% may be imposed within Horry County for not more than 10 years. The revenue
from this sales and use tax is used to pay debt service on general obligation bonds which
were issued pursuant to the School Bond Act or to pay directly costs of acquisition or
construction of any of the improvements identified in the resolution providing for the
imposition of the tax. See Act No. 371 of 2004. As of the date of this information letter,
the sales and use tax authorized under the Horry County School District School Bond
Property Tax Relief Act has not been imposed in Horry county. However, in November
2006, the citizens of Horry county voted to impose the 1% School District Tax, but (as
of the date of this information letter) the imposition of the School District Tax has been
challenged and is under review at this time. The 1% School District Tax will therefore
not be imposed until this matter is resolved and the imposition of the tax is upheld.

7

Lexington County School Districts: The Lexington County School District Property Tax
Relief Act provided, that upon public approval in a referendum, a 1% sales and use tax may
be imposed within Lexington County for 7 years, unless extended as provided in the Act. The
revenues from this sales and use tax allotted to a school district must be used to provide a
credit against the school property tax liability on property taxable in the district. See Act No.
378 of 2004.
McCormick County School District: The School District of McCormick County School
Bond Property Tax Relief Act provided, that upon public approval in a referendum, a 1%
sales and use tax may be imposed within McCormick County for not more than 26 years. The
revenue from this sales and use tax is used to pay debt service on general obligation bonds
which were issued pursuant to the School Bond Act or to pay directly costs of acquisition or
construction of any of the improvements identified in the resolution providing for the
imposition of the tax. As of the date of this information letter, the sales and use tax
authorized under the School District of McCormick County School Bond Property Tax
Relief Act has not been imposed in McCormick county. See Act No. 387 of 2004.
Marlboro County School District: The Marlboro County School District School Bond Property Tax Relief Act provided, that upon public approval in a referendum, a sales and use
tax not exceeding 1% may be imposed within Marlboro County for not more than 25 years.
The revenue from this sales and use tax is used to pay debt service on existing general
obligation bonds issued pursuant to the School Bond Act or to pay directly costs of
acquisition or construction of any of the improvements identified in the resolution providing
for the imposition of the tax. As of the date of this information letter, the sales and use tax
authorized under the School District of Marlboro County School Bond Property Tax
Relief Act has not been imposed in Marlboro county. See Act No. 204 of 2005.
Dillon County School Districts: The Dillon County School Facilities Financing Act
provided, that upon public approval in a referendum, a sales and use tax not exceeding 2%
may be imposed within Dillon County. However, the timing of the imposition may not result
in a rate of sales and use tax paid by the citizens of the county that will exceed 8%. In order
to ensure this limit is not exceeded, the tax may be phased in one cent at a time. The revenue
from this sales and use tax is used to defray payment obligations related to the financing of
the construction, acquisition, and renovation of school facilities in the county’s three school
districts, or pay directly the costs of the construction, acquisition, and renovation of school
facilities in the county’s three school districts. As of the date of this information letter, the
sales and use tax authorized under the Dillon County School Facilities Financing Act
has not been imposed in Dillon county. See Act No. 197 of 2005.
Lee County School District: The School District of Lee County Bond Property Tax Relief
Act provided, that upon ordinance of the Lee County Council, a 1% sales and use tax may be
imposed within Lee County for not more than 5 years. The revenue from this sales and use
tax is used to defray the cost of capital improvements within the school district, as identified
in a resolution by the board of trustees of the school district, by paying such costs directly or
by paying debt service on general obligation bonds issued by the school district or debt

8

service on debt issued by a nonprofit corporation on behalf of the school district. See House
Bill 4758 of 2006.
Local Property Tax Credits: The local option sales and use tax for local property tax
credits is authorized under Code Section 4-10-720 et. seq. (Act 388 of 2006, Part III). This
tax is a general sales and use tax on all sales at retail (with a few exceptions) taxable under
the state sales and use tax. This tax is imposed to provide a credit against property tax
imposed by a political subdivision for all classes of property subject to the property tax and is
collected by the Department of Revenue on behalf of these counties. As of the date of this
information letter, this tax is not being imposed.
Catawba Indian Tribal Tax: See Notes #13 and #14.
REMITTANCE OF LOCAL SALES AND USE TAXES BY RETAILERS:
For information on when a retailer is required to remit a local sales and use tax when
delivering product to a purchaser in another county, see SC Revenue Ruling #05-16.
TYPES OF EXEMPTIONS:
State Exemptions - 12-36-2120: Sales of tangible personal property exempt from the State
sales and use tax are exempt from the local sales and use tax if marked “Yes” under this
column.
Exemption for Maximum Tax Items- 12-36-2110: Sales of items subject to a maximum tax
under the State sales and use tax law (i.e. aircraft, motor vehicles, motorcycles, boats, trailers
and semitrailers pulled by truck tractors, horse trailers, recreational vehicles (including tent
campers, travel trailers, park models, park trailers, motor homes, and fifth wheels),
self-propelled light construction equipment, unassembled aircraft, manufactured homes,
musical instruments and office equipment purchased by certain religious organizations, fire
safety education trailers, and certain research and development machinery) are exempt from
the local sales and use tax if marked “Yes” under this column.
Exemption for Casual Excise Tax Items - 12-36-1710: Sales of items subject to the casual
excise tax under Code Section 12-36-1710 through Code Section 12-36-1740 (i.e. motor
vehicles, motorcycles, boats, motors, and airplanes required to be registered, titled, or
licensed) are exempt from the local sales and use tax if marked “Yes” under this column.
Exemption for Food Stamp Purchases: Sales of food purchased with foods stamps are
exempt from the State sales and use tax; therefore, such sales are exempt from the local sales
and use tax if marked “Yes” under this column.
Exemption for Certain Food Sales: Sales of certain foods, while subject to the State sales
and use tax, are exempt from the local sales and use tax if marked “Yes” under this column.
Sales of food which are eligible to be purchased with United States Department of
Agriculture food stamps come under this exemption. This exemption applies to everyone,
not just persons using food stamps.

9

Foods which may be purchased with food stamps and are exempt from these local sales
and use taxes include:
*

Any food intended to be eaten at home by people, including snacks, beverages
and seasonings

*

Seeds and plants intended to grow food (not birdseed or seeds to grow flowers)

*

Cold items, which may include salads or sandwiches, intended to be eaten at
home by people

Items which cannot be purchased with food stamps and are, therefore, subject to these
local sales and use taxes are:
*

Alcoholic beverages, such as beer, wine, or liquor

*

Hot beverages ready-to-drink such as coffee

*

Tobacco

*

Hot foods ready to eat

*

Foods designed to be heated in the store

*

Hot and cold food to be eaten at a lunch counter, in a dining area or anywhere
else in the store or in a nearby area such as a mall food court

*

Vitamins and medicines (Note: Sales of certain medicines are exempt from the
State sales and use tax, and therefore, are also exempt from all local sales and
use taxes.)

*

Pet food

*

Any non-food items such as tissue, soap or other household goods

“Grandfather Clause” Exemption for Certain Purchases By Construction Contractors:
All the local sales and use taxes discussed in this information letter exempt purchases of
building materials for use under a construction contract if both of the following conditions
are met:
A.

1. the construction contract is executed before the imposition date; or
2. a written bid is submitted before the imposition date culminating in a
   construction contract entered into before or after the imposition date; and

10

B.

a verified copy of the contract is mailed within 6 months of the imposition date to:
South Carolina Department of Revenue
Registration Unit
P. O. Box 125
Columbia, South Carolina 29214-0140

A "verified copy" is a copy accompanied by a statement, signed under penalties of perjury,
that it is true and correct. If the contractor is a corporation, the statement is to be signed by
an officer of the corporation or an employee authorized to sign. If the contractor is a
partnership, the statement is to be signed by a general partner. If the contractor is a sole
proprietorship, the owner is to sign.
Special Exemption Certificate. In order for a contractor to purchase building materials for
a particular contract free of the local tax, the contractor must complete Form ST-10-C
("Application for Exemption from Local Option Tax") and submit it to the Department of
Revenue. If the Department determines the contract in question meets the above
requirements, the contractor will be issued a special exemption certificate (Form ST-35).
The certificate may only be used to purchase building materials for the contract for which it
is issued and may not be used to purchase anything other than building material. If the
contractor uses this certificate to make purchases free of the local tax, upon which the tax
should have been paid, then the contractor will be held liable for the tax. Also, the certificate
does not allow the contractor to make purchases of building materials free of the State
tax.
An exemption certificate (Form ST-35) issued by the Department of Revenue to a prime
contractor under this exemption may not be used by a subcontractor nor may a prime
contractor use a subcontractor's exemption certificate. Each contractor must obtain his own
certificate for each construction contract.
Note #1: By not exempting items subject to the casual excise tax (“No” in the “Casual Excise
Items” column), counties imposing this local sales and use tax will impose the local tax on
sales and purchases of trailers that can be pulled by vehicles other than truck tractors, sales of
pole trailers and sales of boat motors not attached to a boat at the time of sale, but will not
impose the local sales and use tax on items subject to a maximum tax under the State sales and
use tax law.
Note #2: Effective December 1, 2002, Jasper county charges two local sales and use taxes the 1% Local Option Tax and the 1% Jasper School Tax. Jasper county has imposed the 1%
Local Option Tax since July 1, 1991 and imposed both the 1% Local Option Tax and 1%
Capital Projects Tax for the period of May 1, 1999 through November 30, 2002.
Note #3: Effective May 1, 2000 Chester county no longer imposes the 1% Capital Projects
Tax. Chester county still imposes the 1% Local Option Tax. Chester county imposed the 1%
Capital Projects Tax for the period of May 1, 1999 through April 30, 2000.

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Note #4: Effective September 1, 2000, Chesterfield county charges two local sales and use
taxes - the 1% Local Option Tax and the 1% Chesterfield School Tax.
Note #5: Since May 1, 1992, Allendale county has imposed the 1% Local Option Tax.
Effective January 1, 2007 Allendale county no longer imposes the 1% Capital Projects Tax.
Allendale county imposed the 1% Capital Projects Tax for the period of May 1, 2001 through
December 31, 2006.
Note #6: Beaufort county imposed a 1% Transportation Tax for the period of June 1, 1999
through November 30, 2000. In November 2006, the citizens of Beaufort county voted to
impose a 1% Transportation Tax again; however, the vote was not timely certified and the
imposition of the tax is postponed until May 1, 2008 unless the General Assembly enacts
legislation that allows an earlier imposition date.
Note #7: Since May 1, 1996, Dillon county has imposed the 1% Local Option Tax. Effective
May 1, 2003, Dillon county charges two local sales and use taxes - the 1% Local Option Tax
and the 1% Capital Projects Tax.
Note #8: Since July 1, 1991, Charleston county has imposed the 1% Local Option Tax.
Effective May 1, 2005, Charleston county charges two local sales and use taxes - the 1%
Local Option Tax and a ½ of 1% Transportation Tax. (Prior to the enactment of this
Transportation Tax, Charleston county was scheduled to impose another Transportation Tax at
the rate of ½ of 1% in May of 2003; however, this tax was not imposed as a result of a South
Carolina Supreme Court decision.)
Note #9: Since July 1, 1991, Hampton county has imposed the 1% Local Option Tax.
Effective May 1, 2003, Hampton county charges two local sales and use taxes - the 1% Local
Option Tax and the 1% Capital Projects Tax.
Note #10: Since May 1, 1997, Darlington county has imposed the 1% Local Option Tax.
Effective February 1, 2004, Darlington county charges two local sales and use taxes - the 1%
Local Option Tax and the 1% Darlington School Tax.
Note #11: Since May 1, 1997, Clarendon county has imposed the 1% Local Option Tax.
Effective June 1, 2004, Clarendon county charges two local sales and use taxes - the 1% Local
Option Tax and the 1% Clarendon Schools Tax. Sales of foods which are eligible to be
purchased with United States Department of Agriculture food stamps, and which are exempt
from the 1% Clarendon School Tax for the period of June 1, 2004 through June 30, 2005, are
subject to the 1% Clarendon School Tax effective July 1, 2005 (Senate Bill 426 of 2005).
Note #12: The citizens of Aiken, Newberry, Orangeburg, and York counties have imposed
Capital Projects taxes and have subsequently voted to extend the Capital Projects taxes in their
counties. The “new” Capital Projects tax in Aiken, Newberry, Orangeburg, and York counties
began immediately upon the expiration of the “original” tax. The effective date listed on the
chart for each of these counties is the effective date of the “new” Capital Projects tax. In each
county, the “original” Capital Projects tax expired on the previous day.

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Note #13: The application of either the State sales and use tax or the Catawba Tribal sales
and use tax for sales (deliveries) made on the Catawba Indian Reservation are determined by
the Catawba Indian Claims Settlement Act. The specific sales and use tax provisions can be
found in Code Section 27-16-130(H). The Catawba Tribal sales and use tax expires on
November 28, 2092.
The following chart provides a summary of these provisions:
Delivery on the
Reservation From:

Type Tax Applicable

Location On the
Reservation
Location Off the
Reservation But in SC –
Sales $100 or less
Location Off the
Reservation But in SC –
Sales Over $100
Location Off the
Reservation and Outside
the State – Seller
Registered with DOR
Location Off the
Reservation and Outside
the State – Seller Not
Registered with DOR

Tribal Sales Tax (Equal to
Combined State and Local Rate)
State Sales Tax (Local taxes would
not be applicable in these
circumstances.)
Tribal Sales Tax (Equal to
Combined State and Local Rate)

DOR

State Use Tax (Local taxes would
not be applicable in these
circumstances.

DOR

Tribal Use Tax (Equal to
Combined State and Local Rate*)

Catawba Indian Tribe

Administered and
Collected By:

DOR

DOR

• As of the date of this information letter, Lancaster county imposes a 1% local option sales
  and use tax and York county imposes a 1% Capital Projects sales and use tax in addition to
  the State sales and use tax. Therefore, the tribal sales tax and the tribal use tax are imposed at
  a rate of 6% at this time, whether such sales (deliveries) are made on the Reservation within
  Lancaster County or within York county. Please note that the rate for the tribal sales tax and
  the tribal use tax may increase or decrease dependent upon whether the total state and local
  sales and use tax rates change in Lancaster county or York county in the future.
  For additional information, see SC Revenue Ruling #98-18.
  Note #14: By not exempting sales of tangible personal property subject to the maximum tax
  provisions, sales of such maximum tax items are taxed under the tribal sales and use tax at
  6%, but the tax may not exceed the maximum tax set forth in Code Section 12-36-2110.
  Note #15: Since May 1, 1996, Lee county has imposed the 1% Local Option Tax. Effective
  October 1, 2006, Lee county charges two local sales and use taxes - the 1% Local Option Tax
  and the 1% Lee School Tax.
  Note #16: Since May 1, 1994, Florence county has imposed the 1% Local Option Tax.
  Effective May 1, 2007, Florence county charges two local sales and use taxes - the 1% Local
  Option Tax and the 1% Capital Projects Tax.

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Note #17: Effective May 1, 2007, Horry county will impose a 1% Capital Projects Tax. In
November 2006, the citizens of Horry county also voted to impose a 1% School District Tax;
however, as of the date of this information letter, the imposition of the School District Tax
has been challenged and is under review at this time. The 1% School District Tax will
therefore not be imposed until this matter is resolved and the imposition of the tax is upheld.

Please note that this chart only addresses the general local option taxes collected by the
Department of Revenue on behalf of the counties, school districts, and the Catawba
Indian tribal government. It does not address the local taxes on sales of accommodations
or on sales of prepared meals that are collected directly by the counties.

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