When is South Carolina's 2008 sales tax holiday and what is exempt (per SC IL #08-11)?

Plain-English summary

South Carolina's 2008 back-to-school sales tax holiday runs from 12:01 a.m. Friday, August 1, 2008 through midnight Sunday, August 3, 2008. Under S.C. Code § 12-36-2120(57), the holiday falls on the first weekend in August each year. During the holiday, neither the 6% state sales and use tax nor any applicable local sales and use tax is imposed on the covered items.

What is exempt: clothing, clothing accessories (hats, scarves, hosiery, handbags), footwear, school supplies (pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, calculators), computers, printers and printer supplies, computer software, and a list of bed and bath items (bath washcloths, blankets, bedspreads, bed linens, sheet sets, comforter sets, bath towels, shower curtains, bath rugs and mats, pillows, and pillowcases).

What is not exempt: jewelry, cosmetics, eyewear, wallets, watches, furniture, rental of clothing or footwear, items for use in a business, or items placed on layaway or a similar deferred payment and delivery plan.

For detailed lists of qualifying and non-qualifying items, the Department points to SC Revenue Ruling #05-9 (examples of exempt and nonexempt items) and SC Revenue Ruling #05-10 (a question-and-answer document).

Two new holidays for later. The letter also notes that the General Assembly, in its 2008 session (Senate Bill 1143), created two additional sales tax holidays: a Second Amendment Sales Tax Holiday on the Friday and Saturday after Thanksgiving (November 28-29, 2008) for handguns, rifles, and shotguns; and an Energy Star Sales Tax Holiday each October beginning in 2009 for certain energy-efficient home products priced at $2,500 or less, provided state revenue growth forecasts meet set levels. (The Energy Star holiday was later held unconstitutional by the South Carolina Supreme Court, as described in SC Information Letter #09-10.)

What this means for you

If you are a shopper, you can buy the covered clothing, school supplies, computers, and bed-and-bath items free of state and local sales tax during the August 1-3, 2008 weekend — but not jewelry, cosmetics, furniture, business-use items, or layaway purchases. If you are a retailer, apply the exemption to qualifying sales that weekend and consult SC Revenue Rulings #05-9 and #05-10 for edge cases.

Common questions

Q: When is the 2008 sales tax holiday?
A: From 12:01 a.m. Friday, August 1, 2008 through midnight Sunday, August 3, 2008.

Q: Are computers and school supplies included?
A: Yes — computers, printers and printer supplies, computer software, and school supplies are exempt, along with clothing, footwear, and listed bed and bath items.

Q: What is expressly excluded?
A: Jewelry, cosmetics, eyewear, wallets, watches, furniture, rental of clothing or footwear, items for business use, and layaway purchases.

Subject

Sales Tax Holiday - 2008

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL08-11.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 #08-11

SUBJECT:

Sales Tax Holiday - 2008

DATE:

June 26, 2008

SUPERSEDES:

All previous advisory opinions and any oral directives in
conflict herewith.

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000; Supp. 2007)
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.

Code Section 12-36-2120(57) provides for an annual sales tax holiday for sales taking
place during 12:01 a.m. on the first Friday in August and ending at midnight on the
following Sunday. Accordingly, the 2008 sales tax holiday weekend will begin Friday,
August 1, 2008 at 12:01 a.m. and end Sunday, August 3, 2008 at midnight.
During this time, the 6% state sales and use tax, and any applicable local sales and use
tax, will not be imposed on clothing, clothing accessories (e.g., hats, scarves, hosiery, and
handbags), footwear, school supplies (e.g., pens, pencils, paper, binders, notebooks,
books, bookbags, lunchboxes, and calculators), computers, printers and printer supplies,
computer software, and bath wash clothes, blankets, bed spreads, bed linens, sheet sets,
comforter sets, bath towels, shower curtains, bath rugs and mats, pillows, and pillow
cases. The sales tax holiday, however, does not apply to sales of jewelry, cosmetics,
eyewear, wallets, watches, furniture, rental of clothing or footwear, items for use in a
business, or items placed on layaway or similar deferred payment and delivery plans.
The Department has published two advisory opinions concerning the sales tax holiday;
each is available on our website at www.sctax.org. These documents are:

1. SC Revenue Ruling #05-9 – a detailed list of examples of exempt items during the
   sales tax holiday and a list of examples of nonexempt items.
2. SC Revenue Ruling #05-10 – a “question and answer” document addressing
   frequently asked sales tax holiday questions.
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Note: The General Assembly established the following two additional sales tax holidays
during the 2008 legislative session:
(1) Second Amendment Sales Tax Holiday: This two-day sales tax holiday
applies to purchases of handguns, rifles and shotguns and will take place every
year on the Friday and Saturday after Thanksgiving. This year the Second
Amendment Sales Tax Holiday will take place on November 28th and 29th of
2008. Information concerning the Second Amendment Sales Tax Holiday will be
published later this year.
(2) Energy Star Sales Tax Holiday: This month-long sales tax holiday applies to
purchases of certain energy efficient dishwashers, clothes washers, air
conditioners, ceiling fans, fluorescent light bulbs, dehumidifiers, programmable
thermostats, refrigerators, doors, and windows purchased for noncommercial
home or personal use and that have a sales price of $2,500.00 or less per product.
This exemption does not apply to purchases of energy efficient products
purchased for trade, business, or resale. The Energy Star Sales Tax Holiday will
take place every October beginning in 2009, provided revenue growth forecasts
for state government meet or exceed certain levels. Information concerning the
Energy Star Sales Tax Holiday will be published at a later date.
While the Department will be publishing information concerning these two new sales tax
holidays at a later date, interested persons may review the legislation enacting these sales
and use tax exemptions (Senate Bill 1143 of 2008) at the General Assembly website at
http://www.scstatehouse.net/index.html.

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