Which South Carolina tax regulations did the General Assembly approve in 2009 (per SC IL #09-11)?
Apply this to your situation
This page answers the general question as of 2009. Ezel answers yours, under current South Carolina tax law, with citations.
Plain-English summary
This Information Letter announces three South Carolina tax regulations the General Assembly approved on May 13, 2009, which became official regulations when published in the State Register on June 26, 2009. They are:
- Regulation 117-314.11 — Federal Government Construction Contracts (Sales and Use) — Document 4004.
- Regulation 117-1350 — Deed Recording Fee — Document 4005.
- Regulation 69-75 — Tax Credits for Fortification Measures (Income Tax) — Document 3205.
Each regulation was attached to the letter as published on the General Assembly website.
A correction to the admissions tax rate. During the 2008 session, Regulation 117-307.1 was amended to reflect the increase in the general sales and use tax rate from 5% to 6% (effective June 1, 2007). In doing so, the admissions tax rate cited in Question #16 of that regulation was inadvertently changed from 5% to 6%. The letter makes clear that the admissions tax rate established by S.C. Code § 12-21-2420 is 5%, and that an errata notice correcting the regulation was issued and published in the March 2009 State Register.
What this means for you
If your work touches federal government construction contracts, the deed recording fee, or the fortification-measures income tax credit, note that the associated regulations became official on June 26, 2009 — review the actual regulation text for the operative rules. And if you deal with the admissions tax, do not be misled by the earlier misprint: the rate is 5% under § 12-21-2420, not 6%; the 6% figure applied to the general sales and use tax, not admissions.
Common questions
Q: Which regulations did the General Assembly approve in 2009?
A: Regulation 117-314.11 (Federal Government Construction Contracts), Regulation 117-1350 (Deed Recording Fee), and Regulation 69-75 (Tax Credits for Fortification Measures), effective June 26, 2009.
Q: What is the South Carolina admissions tax rate?
A: 5%, as set by S.C. Code § 12-21-2420. A regulation had briefly shown 6% by mistake; an errata notice corrected it in the March 2009 State Register.
Q: Why was the admissions rate shown as 6%?
A: When Regulation 117-307.1 was updated for the general sales and use tax increase from 5% to 6% (June 1, 2007), the admissions rate in Question #16 was inadvertently changed to 6%; that was an error.
Subject
Regulations Approved by the General Assembly
Source
- Landing page: https://dor.sc.gov/advisory-opinion-search
- Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL09-11.pdf
Original ruling text
State of South Carolina
Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214
Web Address: www.sctax.org
SC INFORMATION LETTER #09-11
SUBJECT:
Regulations Approved by the General Assembly
DATE:
June 23, 2009
AUTHORITY:
S. C. Code Ann. Section 12-4-320 (2000; Supp. 2008)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3
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 following regulation proposals were approved by the General Assembly on May 13,
2009 and will become official regulations upon publication in the State Register on June
26, 2009.
Each regulation is attached as published on the General Assembly website at
http://www.scstatehouse.net/index.html (excluding the initial page of legislative history).
Regulation No.
Subject
Document
117-314.11
Federal Government Construction
Contracts
(Sales and Use)
4004
2
117-1350
Deed Recording Fee
4005
7
69-75
Tax Credits For Fortification
Measures
(Income Tax)
3205
35
1
Page No.
Finally, during the 2008 session of the General Assembly, SC Regulation 117-307.1 was
amended to reflect the increase in the general sales and use tax rate from 5% to 6%
beginning June 1, 2007. However, the admissions tax rate cited in Question #16 of this
regulation was inadvertently changed from 5% to 6%. The admissions tax rate, as
established by Code Section 12-21-2420, is 5%.
An errata notice was issued and published in the March 2009 edition of the State Register
to correct this error so that Question #16 of the regulation correctly states the admissions
tax rate as 5%. This errata notice, which became effective March 27, 2009, can be found
on page 38 of this information as published in the State Register.
2
Document No. 4004
DEPARTMENT OF REVENUE
CHAPTER 117
Statutory Authority: 1976 Code Section 12-4-320
117-314.11. Federal Government Construction Contracts
Synopsis:
The South Carolina Department of Revenue is considering adding SC Regulation 117314.11 concerning the application of the sales and use tax exemption in Code Section 1236-2120(29) to incorporate longstanding Department of Revenue policy concerning
federal government construction contracts into SC Regulation 117-314. This policy is
presently set forth in an advisory opinion issued by the Department – SC Revenue Ruling
04-9.
Instruction:
Add SC Regulation 117-314.11 concerning the application of the sales and use tax
exemption in Code Section 12-36-2120(29) to incorporate longstanding Department of
Revenue policy concerning federal government construction contracts in SC Regulation
117-314.
Text:
117-314.11 Federal Government Construction Contracts
Sales to, or purchases by, a construction contractor of tangible personal property for use
in a federal government construction project in South Carolina for which the contractor
has a written contract with the federal government are not subject to the sales and use tax
under Code Section 12-36-2120(29) if the contract necessitating the purchase provides
that title and possession of the property is to transfer from the contractor to the federal
government at the time of purchase or after the time of purchase and such property
actually transfer to the federal government in accordance with the contract or the property
becomes part of real or personal property owned by the federal government or is to
transfer to the federal government.
The purpose of this regulation is to address the application of Code Section 12-362120(29) to sales to, or purchases by, a construction subcontractor of tangible personal
property for use in a federal government construction project in South Carolina for which
the subcontractor has a written contract with a general contractor who has a written
contract for the project with the federal government.
For purposes of this regulation, the following example and information will be used to
illustrate the application of the exemption:
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The federal government is constructing a building on a military base located in South
Carolina. After following its contracting procedures, the federal government has entered
into a written contract with a general construction contractor (“Contractor A”) to
construct the building.
Contractor A has hired and entered into a written contract with a construction
subcontractor (“Subcontractor B”) to construct a certain portion of the building.
Subcontractor B in turn hires and enters into a written contract with a construction
subcontractor (“Subcontractor C”) to construct a certain portion of the building under its
contract.
Contractor A, Subcontractor B, and Subcontractor C each purchase the material
necessary to complete the project from various suppliers.
Based on the example and information, the exemption in Code Section 12-36-2120(29)
for federal government contracts applies as follows:
- Sales to, or purchases by, Contractor A of tangible personal property for use in a
federal government construction project in South Carolina as described in the facts are
exempt from the sales and use tax under Code Section 12-36-2120(29) if the written
contract necessitating the purchase provides that title and possession of the property is to
transfer from Contractor A to the federal government at the time of purchase or after the
time of purchase and such property actually transfers to the federal government in
accordance with the contract or the property becomes part of real or personal property
owned by the federal government, or is to transfer to the federal government. - Sales to, or purchases by, Subcontractor B of tangible personal property for use in a
federal government construction project in South Carolina as described in the facts are
subject to the sales and use tax since Subcontractor B does not have a written contract
with the federal government.
However, if Subcontractor B is an agent for the Contractor A, then sales to, or
purchases by, Subcontractor B of tangible personal property for use in a federal
government construction project in South Carolina as described in the facts are not
subject to the sales and use tax if all other provisions of the exemption found in Code
Section 12-36-2120(29) are met and all books and records support the existence of an
agency relationship. (See information below concerning an agency relationship.) - Sales to, or purchases by, Subcontractor C of tangible personal property for use in a
federal government construction project in South Carolina as described in the facts are
subject to the sales and use tax since Subcontractor C does not have a written contract
with the federal government.
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However, if Subcontractor C is a subagent for Subcontractor B and Contractor A has
specifically granted Subcontractor B the authority to appoint a subagent that can bind
Contractor A, then sales to, or purchases by, Subcontractor C of tangible personal
property for use in a federal government construction project in South Carolina as
described in the facts are not subject to the sales and use tax if all other provision of the
exemption found in Code Section 12-36-2120(29) are met and all books and records
support the existence of an agency relationship. (See information below concerning an
agency relationship.)
The Department will recognize the existence of an agency relationship with respect to the
exemption in Code Section 12-36-2120(29), such a determination must be made a caseby-case basis and that if it is determined an agency relationship does not exist the
Department will assess the applicable party (depending on the facts) under the sales and
use tax law (supplier or contractor or subcontractor) for the tax due. (Note: Regardless of
the facts and circumstances, the agency must be in writing.) However, the Department
has established the following “safe harbor” for which it will recognize an agency
relationship with respect to the above facts and the exemption in Code Section 12-362120(29):
- Purchases by Subcontractor B: Contractor A has appointed, in writing,
Subcontractor B as its agent when purchasing tangible personal property for the federal
government contract and that as a result of this agency relationship Contractor A is liable
for payment of such purchases if Subcontractor B fails to pay the supplier and is also
liable for the payment of any sales and use tax for any property that was purchased by
Subcontractor B in its capacity as agent and that does not qualify for the exemption in
Code Section 12-36-2120(29) if Subcontractor B fails to pay the tax.
Purchases by Subcontractor C: Subcontractor B has appointed, in writing,
Subcontractor C as its subagent when purchasing tangible personal property for the
federal government contract and Contractor A has specifically granted Subcontractor B
the authority to appoint a subagent that can bind Contractor A and that as a result of this
subagency relationship Contractor A is liable for payment of such purchases if
Subcontractor C fails to pay the supplier and is also liable for the payment of any sales
and use tax for any property that was purchased by Subcontractor C in its capacity as
subagent and that does not qualify for the exemption in Code Section 12-36-2120(29) if
Subcontractors B or C fail to pay the tax. - The purchase order of Subcontractor B or Subcontractor C submitted to the supplier
must clearly state that Subcontractor B or Subcontractor C is the agent of Contractor A in
purchasing the property. - Contractor A has applied for and received an exemption certificate from the
Department for purposes of the exemption in Code Section 12-36-2120(29). Copies of
the application for the exemption, Form ST-10G, can be found on the Department’s
website at www.sctax.org. The federal contractor’s exemption certificate that will be
issued by the Department will be Form ST-404.
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4. Contractor A must provide a copy of the exemption certificate to Subcontractor B
and must have completed Section C of the copy indicating that Subcontractor B and
Subcontractor C are its agents in purchasing tangible personal property for the federal
construction project. Subcontractor B will in turn provide a copy to its subagent,
Subcontractor C.
Note: Only Contractor A can complete Section C of the exemption certificate.
Therefore, when Contractor A has specifically granted Subcontractor B the authority to
appoint a subagent that can bind Contractor A, Subcontractor B will be required to
inform Contractor A, who then must list Subcontractor C as its agent on a copy of the
certificate.
- Subcontractor B or Subcontractor C must provide a copy of the certificate to the
supplier when purchasing tangible personal property exempt under Code Section 12-362120(29). - All books and records support the existence of an agency relationship.
Note: Sale or purchases of tangible personal property used or consumed by the purchaser
(contractor or subcontractor) are subject to the tax. The exemption in Code Section 1236-2120(29) only applies property where title and possession of the property transfers
from the contractor or subcontractor to the federal government at the time of purchase or
after the time of purchase or the property purchased becomes part of real or personal
property owned by the federal government.
Fiscal Impact Statement:
There will be no impact on state or local political subdivisions expenditures in complying
with this proposed legislation. There will be a minimal increase to general fund
collections.
Statement of Rationale:
The proposal to add SC Regulation 117-314.11 is needed to ensure that taxpayers
understand how the exemption in Code Section 12-36-2120(29) applies to the purchase of
tangible personal property by a construction subcontractor for use in a federal
government construction project in South Carolina for which the subcontractor has a
written contract with a general contractor who has a written contract for the project with
the federal government
The proposal to add this regulation is also reasonable in that it represents longstanding
Department policy.
6
Document No. 4005
DEPARTMENT OF REVENUE
CHAPTER 117
Statutory Authority: 1976 Code Section 12-4-320
117-1350. Deed Recording Fee
Synopsis:
The South Carolina Department of Revenue is considering amending SC Regulation 1171350 concerning the deed recording fee to incorporate longstanding Department of
Revenue policy concerning common real estate transactions and deed recording fee
issues. This policy is presently set forth in an advisory opinion issued by the Department
– SC Revenue Ruling #04-6 – and the Department’s deed recording fee manual.
Instructions: Amend SC Regulation 117-1350 concerning the deed recording fee to
incorporate longstanding Department of Revenue policy concerning common real estate
transactions and deed recording fee issues.
Text:
117-1350 Deed Recording Fee
South Carolina imposes a deed recording fee pursuant to Chapter 24 of Title 12. This fee
is composed of two fees – a state fee and a county fee. The fee is collected by the office
of the clerk of court or register of deeds, which remits the state portion of the fee to the
Department of Revenue on a monthly basis.
The purpose of this regulation is to provide a comprehensive discussion of the application
of the deed recording fee to a wide variety of real estate transactions.
117-1350.1 Basis for the Fee
The deed recording fee is imposed for the privilege of recording a deed based on the
transaction of transferring realty from one person to another person.
When the consideration paid for realty is money, then the deed recording fee is based on
the money paid.
When the consideration paid for realty is “money’s worth” (e.g., other realty, stocks,
forgiveness of debt), then the taxpayer must base the deed recording fee upon one of the
following:
(a) the fair market value of the consideration paid,
(b) the fair market value of the realty being transferred, or
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(c) the fair market value for property tax purposes of the realty being transferred.
When the realty is being “transferred between a corporation, a partnership, or other entity
and its stockholder, partner, or owner,” or the realty is being “transferred to a trust or as a
distribution to a trust beneficiary,” then the taxpayer must base the deed recording fee
upon one of the following:
(a) the fair market value of the realty being transferred, or
(b) the fair market value for property tax purposes of the realty being transferred.
It should also be noted that a “deduction from value is allowed for the amount of any lien
or encumbrance existing on the land, tenement, or realty before the transfer and
remaining on the land, tenement, or realty after the transfer.” As such, when the fair
market value of the realty being transferred is used to calculate the fee, the value of the
lien or encumbrance qualifying for this deduction may be deducted from the realty’s fair
market value before calculating the deed recording fee due.
The following are examples of the “value” as defined in deed recording fee law and used
in determining the deed recording fee due:
Example 1 Transaction: Realty transferred from John Doe to Jerry Public for $1,000 and
the assumption of a mortgage with a balance of $81,000.
Value: $1,000. Since the mortgage existed on the realty before the transfer and remained
on the realty after the transfer, the $81,000 is deducted from the total consideration of
$82,000.
Example 2 Transaction: Realty transferred from John Doe to Jerry Public for $82,000.
The grantor paid $1,000 down and $81,000 at closing by obtaining a mortgage at a local
financial institution.
Value: $82,000. Since the mortgage did not exist on the realty before the transfer, the
$81,000 cannot be deducted from the total consideration of $82,000.
Example 3 Transaction: Realty transferred from John Doe to XYZ Bank for cancellation
of debt. The balance due on the debt, plus accumulated interest, is $121,000. This is not
a deed in lieu of foreclosure.
Value: $121,000. By statute, consideration includes the forgiveness or cancellation of a
debt. However, the value used may be less than $121,000 if the fair market value of the
realty is less than $121,000 and the taxpayer elects to use the fair market value of the
realty being transferred in determining fair market value of the consideration. In
addition, the taxpayer may elect to use the fair market value for property tax purposes in
determining fair market value.
8
Example 4 Transaction: Realty transferred from John Doe to Jerry Public for the
cancellation of a debt, not associated with the realty, of $50,000.
Value: $50,000. By statute, consideration includes the forgiveness or cancellation of a
debt. However, the value used may be less than $50,000 if the fair market value of the
realty is less than $50,000 and the taxpayer elects to use the fair market value of the
realty being transferred in determining fair market value of the consideration. In
addition, the taxpayer may elect to use the fair market value for property tax purposes in
determining fair market value.
Example 5 Transaction: Realty transferred from XYZ Corporation to one of its
stockholders - John Doe. The fair market value of the realty for property tax purposes is
$90,000. No lien or encumbrance existed on the realty prior to the transfer.
Value: $90,000. By statute, the fair market value of the realty must be used in calculating
the fee due in a transaction between a corporation and one of its stockholders. Taxpayers
may elect to use the fair market value for property tax purposes in determining fair
market value under the law.
117-1350.2 Examples of the Application of the Deed Recording Fee to Various Real
Estate Transactions
The following are questions and answers to common real estate transactions and issues.
Value:
- What is the basis for the deed recording fee?
The basis for the deed recording fee is the realty’s value. Code Section 12-24-30 defines
the term “value” and states:
(A) For purposes of this chapter, the term “value” means the consideration paid or to be
paid in money or money’s worth for the realty including other realty, personal property,
stocks, bonds, partnership interest, and other intangible property, the forgiveness or
cancellation of a debt, the assumption of a debt, and the surrendering of a right. The fair
market value of the consideration must be used in calculating the consideration paid in
money’s worth. Taxpayers may elect to use the fair market value of the realty being
transferred in determining fair market value of the consideration under the provisions of
this section. However, in the case of realty transferred between a corporation, a
partnership, or other entity and its stockholder, partner, or owner, and in the case of realty
transferred to a trust or as a distribution to a trust beneficiary, “value” means the realty’s
fair market value.
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(B) A deduction from value is allowed for the amount of any lien or encumbrance
existing on the land, tenement, or realty before the transfer and remaining on the land,
tenement, or realty after the transfer.
(C) Taxpayers may elect to use the fair market value as determined for property tax
purposes in determining fair market value under the provisions of this section.
- If realty is transferred for money, and not money’s worth such as services, other realty,
forgiveness of debt, etc., what is the basis for the deed recording fee if the transaction
does not involve realty transferred between a corporation, a partnership, or other entity
and its stockholder, partner, or owner, or realty transferred to a trust or as a distribution to
a trust beneficiary?
Code Section 12-24-30, in subsection (A), states that the fair market value of the realty
may be used “in determining fair market value of the consideration under the provisions
of this section.” The only mention to fair market value in subsection (A) concerns when
the consideration is in money’s worth, or when the transaction involves a business entity
and its owners or a trust. Subsection (C) allows the fair market value for property taxes to
be used again only “in determining fair market value under the provisions of this
section.”
Therefore, if realty is transferred for money, and not money’s worth, the basis for the
deed recording fee is the money paid or to be paid if the transaction does not involve
realty transferred between a corporation, a partnership, or other entity and its stockholder,
partner, or owner, or realty transferred to a trust or as a distribution to a trust beneficiary.
The realty’s fair market value cannot be used in this case. - If realty is transferred for money’s worth, such as services, other realty, forgiveness of
debt, etc., what is the basis for the deed recording fee if the transaction does not involve
realty transferred between a corporation, a partnership, or other entity and its stockholder,
partner, or owner, or realty transferred to a trust or as a distribution to a trust beneficiary?
If realty is transferred for money’s worth, such as services, other realty, forgiveness of
debt, etc., and the transaction does not involve realty transferred between a corporation, a
partnership, or other entity and its stockholder, partner, or owner, or realty transferred to
a trust or as a distribution to a trust beneficiary, then the taxpayer must base the deed
recording fee upon one of the following:
(a) the fair market value of the consideration paid,
(b) the fair market value of the realty being transferred, or
(c) the fair market value for property tax purposes of the realty being transferred.
It should also be noted that a “deduction from value is allowed for the amount of any lien
or encumbrance existing on the land, tenement, or realty before the transfer and
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remaining on the land, tenement, or realty after the transfer.” As such, when the fair
market value of the realty being transferred is used to calculate the fee, the value of the
lien or encumbrance qualifying for this deduction may be deducted from the realty’s fair
market value before calculating the deed recording fee due.
- What is the basis for the deed recording fee if the transaction involves realty
transferred between a corporation, a partnership, or other entity and its stockholder,
partner, or owner, or realty transferred to a trust or as a distribution to a trust beneficiary?
When the realty is being “transferred between a corporation, a partnership, or other entity
and its stockholder, partner, or owner,” or the realty is being “transferred to a trust or as a
distribution to a trust beneficiary,” then the taxpayer must base the deed recording fee
upon one of the following:
(a) the fair market value of the realty being transferred, or
(b) the fair market value for property tax purposes of the realty being transferred.
It should also be noted that a “deduction from value is allowed for the amount of any lien
or encumbrance existing on the land, tenement, or realty before the transfer and
remaining on the land, tenement, or realty after the transfer.” As such, when the fair
market value of the realty being transferred is used to calculate the fee, the value of the
lien or encumbrance qualifying for this deduction may be deducted from the realty’s fair
market value before calculating the deed recording fee due.
Responsible Person Signing the Affidavit: - Who may sign the affidavit required under Code Section 12-24-70?
The affidavit required under Code Section 12-24-70 must be signed by a responsible
person connected with the transaction and the affidavit must state that connection. A
“responsible person connected with the transaction” includes, but is not limited to, the
grantor, grantee, and an attorney involved in the transaction. However, secretaries,
paralegals, runners, and other administrative personnel do not qualify as a “responsible
person connected with the transaction” and, therefore, may not sign the affidavit.
Realty Located in More Than One County: - If realty is located in more than one county, how should the deed recording fee be paid
when the deed is filed in each county?
Code Section 12-24-50 answers this question and states:
The fee imposed by this chapter must be remitted to the clerk of court or the register of
deeds in the county in which the realty is located and recorded. If the realty is located in
more than one county, the person having the deed recorded in a county must state by
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affidavit what portion of the value of the realty is in that county and payment of the fee
must be made based on the proportionate value of the realty located in that county.
Unrecorded Deeds:
- Are deeds that transfer realty but are not recorded at the courthouse (the office of the
clerk of court, register of deeds, register of mesne conveyance or other recording official)
subject to the deed recording fee?
Deeds that transfer realty but are not recorded at the courthouse (the office of the clerk of
court, register of deeds, register of mesne conveyance or other recording official) are not
subject to the deed recording fee since under Code Section 12-24-10 “a recording fee is
imposed for the privilege of recording a deed” and therefore the deed recording fee is not
applicable until the deed is recorded.
Refunds: - What are the procedures for applying for a refund of the deed recording fee?
The deed recording fee requires that each deed have a notation placed upon it by the
Clerk of Court or the Register of Deeds (“ROD”). This notation must include the date
the deed was filed, the fee collected, and any other information the county may require.
The notation must state “Exempt” if the transaction falls within one of the exemptions
provided under Code Section 12-24-40.
If a taxpayer seeks a refund of any fee paid, the following procedure must be followed:
(a) The original deed and the original affidavit (if the requirement for the affidavit has not
been waived by the clerk or register) must be presented to the Clerk of Court or ROD.
The Clerk or ROD will verify that the notation on the deed is the notation placed on the
deed by the Clerk or ROD. The Clerk or ROD will then sign a letter or form verifying
that the notation is authentic and present this to the taxpayer.
(b) The taxpayer should then forward the original deed, the original affidavit and the
notation verification letter or form to the Department of Revenue. The taxpayer should
also include a cover letter requesting the refund and containing all the information
required by Code Section 12-60-470. All refund requests for deed recording fees should
be mailed to:
SC Department of Revenue
Refund Request - Deed Recording Fee
P.O. Box 125
Columbia, South Carolina 29214
All refund requests received without the notation verification letter or form will be sent
back to the taxpayer with a letter stating that the notation must first be verified by the
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Clerk or ROD and that the refund request must contain the verification letter or form.
Refunds will also not be issued unless the Department receives the original deed and the
original affidavit (unless the requirement for the affidavit has been previously waived by
the Clerk or ROD).
(c) If a refund is due, the Department will refund the State portion to the taxpayer and
issue an order to the Clerk or ROD to refund the taxpayer the county portion of the fee.
The Clerk or ROD should not issue a refund for the county portion of the fee unless they
have received a refund order from the Department of Revenue. The Department, prior to
returning the original deed and other documentation to the taxpayer, will note on the deed
the date of the refund and the amount of the refund issued/ordered.
(d) If the Department determines a refund is not due, the Department will advise the
taxpayer. The taxpayer may appeal this denial of the refund under the provisions of Code
Sections 12-60-470 and 12-24-150.
Gifts From One Individual To Another Individual:
- Are deeds that transfer realty from one individual to another individual as a gift (no
consideration paid of any kind) subject to the deed recording fee?
Deeds that transfer realty from one individual to another individual as a gift (no
consideration paid of any kind) are exempt from the deed recording fee under Code
Section 12-24-40(1).
Family Deeds: - Are deeds that transfer realty to a spouse subject to the deed recording fee?
Deeds that transfer realty to a spouse are exempt from the deed recording fee under Code
Section 12-24-40(4) regardless of whether or not any consideration was paid or will be
paid for the transfer. - Are deeds that transfer realty to a family member, other than a spouse, subject to the
deed recording fee?
Deeds that transfer realty to a family member, other than a spouse, are subject to the deed
recording fee based on the consideration paid for the realty, unless otherwise exempt
from the deed recording fee. The following are examples of deeds between family
members (other than spouses) that are subject to the deed recording fee unless otherwise
exempt under Code Section 12-24-40:
(a) a transfer to a brother for $30,000.00,
(b) a transfer to a sister in exchange for the forgiveness of a debt,
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(c) a transfer to a child for $10,000.00
(d) a transfer to a brother in exchange for other realty, and
(e) a transfer to a sister in exchange for paying off the mortgage on the realty.
The following are examples of deeds between family members (other than spouses) that
are exempt from the deed recording fee under Code Section 12-24-40:
(a) a transfer in which the consideration that is paid or will be paid is equal to or less than
$100.00 (12-24-40(1)),
(b) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect the
partition (12-24-40(5)),
(c) a transfer that constitutes a contract for the sale of timber to be cut (12-24-40(7)) (see
questions concerning timber deeds),
(d) a transfer in which the realty is subject to a mortgage and the family member
receiving the realty is the mortgagee and the transfer constitutes a deed in lieu of
foreclosure executed by the family member that is the mortgagor or a deed executed
pursuant to a foreclosure proceeding (12-24-40(13)). (see questions concerning
foreclosure proceedings), and
(e) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
- Are deeds that transfer realty to a former spouse subject to the deed recording fee?
Deeds that transfer realty to a former spouse are subject to the deed recording fee based
on the consideration paid for the realty, unless otherwise exempt from the deed recording
fee. The following are examples of deeds to a former spouse that are subject to the deed
recording fee unless otherwise exempt under Code Section 12-24-40:
(a) a transfer in exchange for past due alimony payments when the transfer of the realty is
not pursuant to the terms of the divorce decree or settlement,
(b) a transfer for $30,000.00,
(c) a transfer in exchange for the forgiveness of a debt,
(d) a transfer in exchange for other realty, and
(e) a transfer in exchange for paying off the mortgage on the realty.
14
The following are examples of deeds to a former spouse that are exempt from the deed
recording fee under Code Section 12-24-40:
(a) a transfer in which the consideration that is paid or will be paid is equal to or less than
$100.00 (12-24-40(1)),
(b) a transfer pursuant to the terms of the divorce decree or settlement,
(c) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect the
partition (12-24-40(5)),
(d) a transfer that constitutes a contract for the sale of timber to be cut (12-24-40(7)) (see
questions concerning timber deeds),
(e) a transfer in which the realty is subject to a mortgage and the former spouse receiving
the realty is the mortgagee and the transfer constitutes a deed in lieu of foreclosure
executed by the grantor as the mortgagor or a deed executed pursuant to a foreclosure
proceeding (12-24-40(13)). (see questions concerning foreclosure proceedings), and
(f) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
Charitable Deeds:
- Are deeds that transfer realty to a church or other charitable organization subject to
the deed recording fee?
Deeds that transfer realty to a church or other charitable organization are subject to the
deed recording fee based on the consideration paid for the realty, unless otherwise
exempt from the deed recording fee. The following are examples of deeds to a church or
other charitable organization that are subject to the deed recording fee unless otherwise
exempt under Code Section 12-24-40:
(a) a transfer for $50,000.00,
(b) a transfer in exchange for other realty whether or not the transaction qualifies as a
like-kind exchange for federal income tax purposes (both deeds are subject to the deed
recording fee), and
(c) a transfer of realty with a fair market value of $100,000.00 for only $50,000.00 (the
deed recording fee is based upon $50,000.00).
Note: If the church or other charitable organization is a stockholder, partner, limited
liability company member, or trust beneficiary of the grantor (corporation, partnership,
limited liability company or trust), then the deed recording fee is based on the fair market
value of the realty or the fair market value of the realty for property tax purposes.
15
The following are examples of deeds to a church or other charitable organization that are
exempt from the deed recording fee under Code Section 12-24-40:
(a) a transfer in which the consideration that is paid or will be paid is equal to or less than
$100.00 (12-24-40(1)),
(b) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect the
partition (12-24-40(5)),
(d) a transfer that constitutes a contract for the sale of timber to be cut (12-24-40(7)) (see
questions concerning timber deeds),
(e) a transfer in which the realty is subject to a mortgage and the church or other
charitable organization receiving the realty is the mortgagee and the transfer constitutes a
deed in lieu of foreclosure executed by the grantor as the mortgagor or a deed executed
pursuant to a foreclosure proceeding (12-24-40(13)) (see questions concerning
foreclosure proceedings), and
(f) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
- Are deeds that transfer realty from a church or other charitable organization to an
individual or business subject to the deed recording fee?
Deeds that transfer realty from a church or other charitable organization to an individual
or business are subject to the deed recording fee based on the consideration paid for the
realty, unless otherwise exempt from the deed recording fee. The following are examples
of deeds to a church or other charitable organization that are subject to the deed recording
fee unless otherwise exempt under Code Section 12-24-40:
(a) a transfer for $50,000.00, and
(b) a transfer in exchange for other realty whether or not the transaction qualifies as a
like-kind exchange for federal income tax purposes (both deeds are subject to the deed
recording fee).
The following are examples of deeds from a church or other charitable organization to an
individual or business that are exempt from the deed recording fee under Code Section
12-24-40:
(a) a transfer in which the consideration that is paid or will be paid is equal to or less than
$100.00 (12-24-40(1)),
16
(b) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect the
partition (12-24-40(5)),
(c) a transfer that constitutes a contract for the sale of timber to be cut (12-24-40(7)) (see
questions concerning timber deeds),
(d) a transfer in which the realty is subject to a mortgage and the individual or business
receiving the realty is the mortgagee and the transfer constitutes a deed in lieu of
foreclosure executed by the church or other charitable organization as the mortgagor or a
deed executed pursuant to a foreclosure proceeding (12-24-40(13)) (see questions
concerning foreclosure proceedings), and
(e) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
Deeds from an Estate:
- Are deeds that transfer realty from an estate to a beneficiary subject to the deed
recording fee?
Deeds that transfer realty from an estate to a beneficiary are subject to the deed recording
fee based on the consideration paid for the realty, unless otherwise exempt from the deed
recording fee. The following are examples of deeds from an estate to a beneficiary that
are subject to the deed recording fee unless otherwise exempt under Code Section 12-2440:
(a) a transfer pursuant to the will where the will requires the beneficiary to pay a
consideration for the realty, and
(b) a transfer in which the beneficiary of the realty directs the personal representative of
the estate to transfer the realty directly to a third party in exchange for a consideration
paid to the personal representative or the beneficiary (e.g., cash, forgiveness of a debt,
etc.).
The following are examples of deeds from an estate to a beneficiary that are exempt from
the deed recording fee under Code Section 12-24-40:
(a) a transfer in which the consideration that is paid or will be paid is equal to or less than
$100.00 (12-24-40(1)),
(b) a deed of distribution assigning, transferring, or releasing real property to the
distributee of a decedent’s estate pursuant to Code Section 62-3-907 as evidence of the
distributee’s title to the property, and
(c) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
17
16. Are deeds that transfer realty from an estate to a third party for a consideration in
order to pay off debts of the estate subject to the deed recording fee?
Deeds that transfer from an estate to a third party for a consideration in order to pay off
debts of the estate are subject to the deed recording fee if the consideration paid
(including debts forgiven) for the transfer of realty is more than $100.00 and the transfer
is not otherwise exempt under Code Section 12-24-40.
Deeds to and from Trusts:
- Are deeds that transfer realty into a trust subject to the deed recording fee?
Deeds that transfer realty into a trust are subject to the deed recording fee based on the
fair market value of the realty, except for the following deeds:
(a) a transfer to a trust by a beneficiary of the trust or by a person who will become a
beneficiary of the trust as a result of the transfer as long as no consideration is paid for
the transfer other than beneficial interest in the trust or an increase in value in the
beneficial interest in the trust (12-24-40(8)),
(b) a transfer from one family trust to another family trust for the same family, provided
no consideration is paid or will be paid for the transfer (12-24-40(8) and 12-24-40(9)),
(c) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect the
partition (12-24-40(5)),
(d) a transfer in which the realty is subject to a mortgage and the trust receiving the realty
is the mortgagee and the transfer constitutes a deed in lieu of foreclosure executed by the
mortgagor or a deed executed pursuant to a foreclosure proceeding (12-24-40(13)) (see
questions concerning foreclosure proceedings), and
(e) a transfer otherwise exempt under the provisions of Code Section 12-24-40. - Are deeds that transfer realty from a trust to an individual or other legal entity subject
to the deed recording fee?
Deeds that transfer realty from a trust to an individual or other legal entity are subject to
the deed recording fee based on the fair market value of the realty if the grantee is a
beneficiary of the trust, except for the following deeds:
(a) a transfer from a family trust to a trust beneficiary as long as no consideration is paid
for the transfer other than a reduction in the grantee’s interest in the family trust (12-2440(9)),
18
(b) a transfer from one family trust to another family trust for the same family, provided
no consideration is paid or will be paid for the transfer (12-24-40(8) and 12-24-40(9)),
(c) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect the
partition (12-24-40(5)),
(d) a transfer in which the realty is subject to a mortgage and the trust beneficiary
receiving the realty is the mortgagee and the transfer constitutes a deed in lieu of
foreclosure executed by the family trust that is the mortgagor or a deed executed pursuant
to a foreclosure proceeding (12-24-40(13)) (see questions concerning foreclosure
proceedings), and
(e) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
Deeds that transfer realty from a trust to an individual or other legal entity are subject to
the subject to the deed recording fee based on the consideration paid or to be paid if the
grantee is not a beneficiary of the trust, the consideration paid or to be paid is more than
$100.00, and the transfer is not otherwise exempt under Code Section 12-24-40.
Deeds to and from Partnerships:
- Are deeds that transfer realty from a partner to the partnership subject to the deed
recording fee?
Deeds that transfer realty from a partner to the partnership are subject to the deed
recording fee based on the fair market value of the realty, except for the following deeds:
(a) a transfer from a partner to the partnership if no consideration is paid for the transfer
other than additional interest in the partnership or an increase in value in the partner’s
interest in the partnership (12-24-40(8)),
(b) a transfer in order to partition realty owned jointly by the partner and the partnership
of which he is a partner, as long as no consideration is paid for the transfer other than the
interests in the realty that are exchanged in order to effect the partition (12-24-40(5)), and
(c) a transfer that is otherwise exempt under Code Section 12-24-40. - Are deeds that transfer realty from the partnership to a partner subject to the deed
recording fee?
Deeds that transfer realty from the partnership to a partner, including deeds transferring
realty to the partner upon liquidation of the partnership, are subject to the deed recording
fee based on the fair market value of the realty, except for the following deeds:
19
(a) a transfer from a family partnership to a partner as long as no consideration is paid for
the transfer other than a reduction in the grantee’s interest in the partnership (12-2440(9)),
(b) a transfer in order to partition realty owned jointly by the partner and the partnership
of which he is a partner, as long as no consideration is paid for the transfer other than the
interests in the realty that are exchanged in order to effect the partition (12-24-40(5)),
(c) a transfer in which the realty is subject to a mortgage and the partner receiving the
realty is the mortgagee and the transfer constitutes a deed in lieu of foreclosure executed
by the partnership that is the mortgagor or a deed executed pursuant to a foreclosure
proceeding (12-24-40(13)) (see questions concerning foreclosure proceedings), and
(d) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
- Are deeds that transfer realty from a non-partner to a partnership, or from a
partnership to a non-partner, subject to the deed recording fee?
Deeds that transfer realty from a non-partner to a partnership are subject to the deed
recording fee if the consideration paid or to be paid is more than $100.00 and the transfer
is not otherwise exempt under Code Section 12-24-40.
If a consideration of $100.00 or less is paid or the transfer is otherwise exempt under
Code Section 12-24-40, then the deed transferring realty from a non-partner to the
partnership is exempt from the deed recording fee. - If Partnership A and Partnership B have the same partners but neither partnership is a
partner in the other, is a deed that transfers realty from Partnership A to Partnership B
subject to the deed recording fee?
If Partnership A and Partnership B have the same partners but neither partnership is a
partner in the other, then a deed that transfers realty from Partnership A to Partnership B
is subject to the deed recording fee if the consideration paid or to be paid is more than
$100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
If a consideration of $100.00 or less is paid or the transfer is otherwise exempt under
Code Section 12-24-40, then the deed transferring realty from Partnership A to
Partnership B is exempt from the deed recording fee.
Limited Liability Company (“LLC”) Deeds: - How are deeds that transfer realty to and from a limited liability company (“LLC”)
treated under the deed recording fee law?
Deeds that transfer realty to and from an LLC, which is treated as a partnership for South
Carolina income tax purposes, are treated in the same manner under the deed recording
20
fee as deeds that transfer realty to and from a partnership. See the section in this
regulation concerning deeds to and from partnerships.
Deeds that transfer realty to and from an LLC, which is treated as a corporation for South
Carolina income tax purposes, are treated in the same manner under the deed recording
fee as deeds that transfer realty to and from a corporation. See the section in this
regulation concerning deeds to and from corporations.
Deeds that transfer realty to and from a single member LLC (“SMLLC”), which is treated
as a corporation for South Carolina income tax purposes, are treated in the same manner
under the deed recording fee as deeds that transfer realty to and from a corporation. See
the section in this regulation concerning deeds to and from corporations.
Deeds that transfer realty to the SMLLC from its single member, and deeds that transfer
realty to the single member of the SMLLC from the SMLLC, are not subject to the deed
recording fee if the SMLLC is ignored for all tax purposes under the provisions of Code
Section 12-2-25(B).
Deeds that transfer realty from the SMLLC to a person who is not the single member, and
deeds that transfer realty from a person who is not the single member to the SMLLC, are
treated as if the realty were transferred from or to the single member if the SMLLC is
ignored for all tax purposes under the provisions of Code Section 12-2-25(B). As such,
the application will depend on the facts and circumstances of the transfer and on whether
the single member is an individual, partnership, LLC, trust or corporation.
Written instruments whereby a single member transfers its interest in the SMLLC to
another person are treated as if the realty were transferred from the single member to the
other person if the SMLLC is ignored for all tax purposes under the provisions of Code
Section 12-2-25(B). As such, the application will depend on the facts and circumstances
of the transfer and on whether the single member selling the interest is an individual,
partnership, LLC, trust or corporation and whether the person purchasing the interest, the
new single member, is an individual, partnership, LLC, trust or corporation.
Deeds to and from Corporations:
- Are deeds that transfer realty from a stockholder to the corporation subject to the deed
recording fee?
Deeds that transfer realty from a stockholder to the corporation are subject to the deed
recording fee based on the fair market value of the realty, except for the following deeds:
(a) a transfer from a stockholder to the corporation if no consideration is paid for the
transfer other than stock in the corporation or an increase in value in the stockholder’s
stock in the corporation (12-24-40(8)),
21
(b) a transfer in which the realty is subject to a mortgage and the corporation receiving
the realty is the mortgagee and the transfer constitutes a deed in lieu of foreclosure
executed by the stockholder that is the mortgagor or a deed executed pursuant to a
foreclosure proceeding (12-24-40(13)) (see questions concerning foreclosure
proceedings),
(c) a transfer in order to partition realty owned jointly by the stockholder and the
corporation of which he is a stockholder, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect the
partition (12-24-40(5)), and
(d) a transfer that is otherwise exempt under Code Section 12-24-40.
- Are deeds that transfer realty from the corporation to one of the stockholders subject
to the deed recording fee?
Deeds that transfer realty from the corporation to one of the stockholders, including deeds
transferring realty to the stockholder upon dissolution of the corporation, are subject to
the deed recording fee under Code Section 12-24-40(8) except for the following deeds:
(a) a transfer in order to partition realty owned jointly by the stockholder and the
corporation of which he is a stockholder, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect the
partition (12-24-40(5)),
(b) a transfer in which the realty is subject to a mortgage and the stockholder receiving
the realty is the mortgagee and the transfer constitutes a deed in lieu of foreclosure
executed by the corporation that is the mortgagor or a deed executed pursuant to a
foreclosure proceeding (12-24-40(13)) (see questions concerning foreclosure
proceedings), and
(c) a transfer otherwise exempt under the provisions of Code Section 12-24-40. - Are deeds that transfer realty from a non-stockholder to a corporation, or from a
corporation to a non-stockholder, subject to the deed recording fee?
Deeds that transfer realty from a non-stockholder to a corporation are subject to the deed
recording fee if the consideration paid or to be paid is more than $100.00 and the transfer
is not otherwise exempt under Code Section 12-24-40.
If a consideration of $100.00 or less is paid or will be paid or the transfer is otherwise
exempt under Code Section 12-24-40, then the deed transferring realty from a nonstockholder to the corporation is exempt from the deed recording fee.
22
27. If Corporation A and Corporation B have the same stockholders but neither
corporation is a stockholder in the other, is a deed that transfers realty from Corporation
A to Corporation B subject to the deed recording fee?
If Corporation A and Corporation B have the same stockholders but neither corporation is
a stockholder in the other, then a deed that transfers realty from Corporation A to
Corporation B is subject to the deed recording fee if the consideration paid or to be paid
is more than $100.00 and the transfer is not otherwise exempt under Code Section 12-2440.
If a consideration of $100.00 or less is paid or will be paid or the transfer is otherwise
exempt under Code Section 12-24-40, then the deed transferring realty from Corporation
A to Corporation B is exempt from the deed recording fee.
Master-in-Equity Deeds:
- Are deeds that transfer realty from a Master-in-Equity to an individual or business
subject to the deed recording fee?
Deeds that transfer realty from a Master-in-Equity to an individual or business are subject
to the deed recording fee, with the grantee liable for the fee under the provisions of Code
Section 12-24-20(B), unless the transfer is otherwise exempt under Code Section 12-2440.
Note: Since the liability for the deed recording fee has shifted to the grantee in the case of
a Master-in-Equity deed, the deed may be exempt if the grantee is otherwise exempted by
law. For example, the following deeds are exempt from the deed recording fee when the
grantor is a Master-in-Equity:
Grantee
Reason for Exemption
Federal, State or Local Government
Federal Credit Union
Government National Mortgage Association
Farm Credit Bank
Production Credit Association
Bank for Cooperatives
Federal Land Bank Association
U.S. Veterans Administration
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(3), 12 USCA 1717,
and 12 USCA 1723a
12-24-40(3) and 12 USCA
1452
Note: By statute or case law, Federal Credit Unions, the Government National Mortgage
Association, Farm Credit Banks, Production Credit Associations, Banks for
23
Cooperatives, and Federal Land Bank Associations are considered instrumentalities of
the federal government.
The Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan
Mortgage Corporation (“Freddie Mac”) are not instrumentalities of the federal
government, but have been granted exemption from most state and local taxes when the
liability for the tax falls upon them. Since the liability for the fee transfers to the grantee
in the case of a deed from a Master-in-Equity to Fannie Mae or Freddie Mac, the transfer
is exempt from the deed recording fee pursuant to federal law.
Foreclosure Deeds:
- Are deeds that transfer realty, subject to a mortgage, from the mortgagor to the
mortgagee subject to the deed recording fee?
Deeds that transfer realty, subject to a mortgage, from the mortgagor to the mortgagee are
exempt from the deed recording fee under Code Section 12-24-40(13) if the transfer is by
a deed in lieu of foreclosure executed by the mortgagor.
Deeds that transfer realty from the mortgagor to the mortgagee for cancellation or
forgiveness of the mortgage are subject to the deed recording fee and do not come within
the exemption under Code Section 12-24-40(13) unless the books and records of the
parties indicate that the transfer was made in lieu of foreclosure. If the Department
determines after the deed is recorded that the transfer was not in lieu of foreclosure, the
Department will assess the appropriate deed recording fee, penalty and interest. - Are deeds that transfer realty, subject to a mortgage, to the mortgagee pursuant to a
foreclosure proceeding subject to the deed recording fee?
Deeds that transfer realty, subject to a mortgage, to the mortgagee pursuant to a
foreclosure proceeding are exempt from the deed recording fee under Code Section 1224-40(13). - Are deeds that transfer realty, subject to a mortgage, to the assignee of the mortgagee
pursuant to a foreclosure proceeding subject to the deed recording fee?
Since the assignee was not the mortgagee of record at the time of the sale, the provisions
of Code Section 12-24-40(13) are not applicable.
However, if the assignee is the federal government, or the deed is a Master-in-Equity
deed and the assignee is the Federal National Mortgage Association or the Federal Home
Loan Mortgage, the deed that transfers the realty, subject to a mortgage, to the assignee
of the mortgagee pursuant to a foreclosure proceeding is not subject to the deed recording
fee.
24
Chapter 7 Bankruptcy Deeds:
- Are deeds that transfer realty under a Chapter 7 bankruptcy subject to the deed
recording fee?
Deeds that transfer realty under a Chapter 7 bankruptcy to a person who is not a
stockholder, partner, or owner of the business are subject to the deed recording fee if a
consideration of more than $100.00 is paid or will be paid and the transfer is not
otherwise exempt under Code Section 12-24-40.
Deeds that transfer realty under a Chapter 7 bankruptcy to a person who is a stockholder,
partner, or owner of the business are subject to the deed recording fee based on the fair
market value of the realty unless the transfer is otherwise exempt under Code Section 1224-40.
Chapter 11 Bankruptcy Deeds: - Are deeds that transfer realty under a Chapter 11 bankruptcy subject to the deed
recording fee?
Deeds that transfer realty under a Chapter 11 bankruptcy are exempt from the deed
recording fee under Code Section 12-24-40(3) and 11 USCA Section 1146 if the transfer
is under a plan confirmed under 11 USCA Section 1129. If the transfer is not under a plan
confirmed under 11 USCA Section 1129, then the deed transferring the realty is subject
to the deed recording fee if consideration of more than $100.00 is paid for the transfer
and the transfer is not otherwise exempt under Code Section 12-24-40.
Chapter 12 Bankruptcy Deeds: - Are deeds that transfer realty under a Chapter 12 bankruptcy subject to the deed
recording fee?
Deeds that transfer realty under a Chapter 12 bankruptcy are exempt from the deed
recording fee under Code Section 12-24-40(3) and 11 USCA Section 1231 if the transfer
is under a plan confirmed under 11 USCA Section 1225. If the transfer is not under a plan
confirmed under 11 USCA Section 1225, then the deed transferring the realty is subject
to the deed recording fee if consideration of more than $100.00 is paid for the transfer
and the transfer is not otherwise exempt under Code Section 12-24-40.
Chapter 13 Bankruptcy Deeds: - Are deeds that transfer realty under a Chapter 13 bankruptcy subject to the deed
recording fee?
25
Deeds that transfer realty under a Chapter 13 bankruptcy to a person who is not a
stockholder, partner, or owner of the business are subject to the deed recording fee if a
consideration of more than $100.00 is paid or will be paid and the transfer is not
otherwise exempt under Code Section 12-24-40.
Deeds that transfer realty under a Chapter 13 bankruptcy to a person who is a
stockholder, partner, or owner of the business are subject to the deed recording fee based
on the fair market value of the realty unless the transfer is otherwise exempt under Code
Section 12-24-40.
State and Local Government Deeds:
- Are deeds that transfer realty to the State, or to a political subdivision of the State
(e.g., counties, cities, school districts), subject to the deed recording fee?
Deeds that transfer realty to the State, or to a political subdivision of the State (e.g.,
counties, cities, school districts), are exempt from the deed recording fee under Code
Section 12-24-40(2). - Are deeds that transfer realty from the State, or from a political subdivision of the
State (e.g., counties, cities, school districts), to a non-governmental entity subject to the
deed recording fee?
Deeds that transfer realty from the State, or from a political subdivision of the State (e.g.,
counties, cities, school districts), to a non-governmental entity are subject to the deed
recording fee if the consideration paid or to be paid is more than $100.00 and the transfer
is not otherwise exempt under Code Section 12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the State, or from a political subdivision
of the State (e.g., counties, cities, school districts), to a non-governmental entity, the deed
may be exempt if the grantee is otherwise exempted by law. - Are deeds that transfer realty from the State, or from a political subdivision of the
State (e.g., counties, cities, school districts), to another governmental entity subject to the
deed recording fee?
Deeds that transfer realty from the State, or from a political subdivision of the State (e.g.,
counties, cities, school districts), to another governmental entity are exempt from the
deed recording fee under Code Section 12-24-40(2).
Federal Government Deeds: - Are deeds that transfer realty to the federal government subject to the deed recording
fee?
26
Deeds that transfer realty to the federal government are exempt from the deed recording
fee under Code Section 12-24-40(2).
- Are deeds that transfer realty from the federal government to a non-governmental
entity subject to the deed recording fee?
Deeds that transfer realty from the federal government to a non-governmental entity are
subject to the deed recording fee if the consideration paid or to be paid is more than
$100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the federal government, the deed may be
exempt if the grantee is otherwise exempted by law.
Federal Credit Union Deeds: - Are deeds that transfer realty to a federal credit union subject to the deed recording
fee?
Deeds that transfer realty to a federal credit union are exempt from the deed recording fee
under Code Section 12-24-40(2) since federal credit unions are considered
instrumentalities of the federal government. See 1986 Op. Atty. Gen. No. 86-72, and a
second South Carolina Attorney General Opinion dated March 26, 1991, which both
concluded that federally chartered credit unions are instrumentalities of the federal
government. - Are deeds that transfer realty from the federal credit union to a non-governmental
entity subject to the deed recording fee?
Deeds that transfer realty from a federal credit union to a non-governmental entity are
subject to the deed recording fee if the consideration paid or to be paid is more than
$100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the federal government, the deed may be
exempt if the grantee is otherwise exempted by law.
Government National Mortgage Association Deeds: - Are deeds that transfer realty to the Government National Mortgage Association
subject to the deed recording fee?
Deeds that transfer realty to the Government National Mortgage Association are exempt
from the deed recording fee under Code Section 12-24-40(2) since the Government
National Mortgage Association is considered an instrumentality of the federal
government pursuant to 12 USCA 1717 and 12 USCA 1723a.
27
44. Are deeds that transfer realty from the Government National Mortgage Association to
a non-governmental entity subject to the deed recording fee?
Deeds that transfer realty from the Government National Mortgage Association to a nongovernmental entity are subject to the deed recording fee if the consideration paid or to
be paid is more than $100.00 and the transfer is not otherwise exempt under Code Section
12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the federal government, the deed may be
exempt if the grantee is otherwise exempted by law.
Farm Credit Bank Deeds:
- Are deeds that transfer realty to a Farm Credit Bank subject to the deed recording
fee?
Deeds that transfer realty to a Farm Credit Bank are exempt from the deed recording fee
under Code Section 12-24-40(2) since a Farm Credit Bank is considered an
instrumentality of the federal government pursuant to 12 USCA 2011 and 12 USCA
2023. - Are deeds that transfer realty from a Farm Credit Bank to a non-governmental entity
subject to the deed recording fee?
Deeds that transfer realty from a Farm Credit Bank to a non-governmental entity are
subject to the deed recording fee if the consideration paid or to be paid is more than
$100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the federal government, the deed may be
exempt if the grantee is otherwise exempted by law.
Production Credit Association Deeds: - Are deeds that transfer realty to a Production Credit Association subject to the deed
recording fee?
Deeds that transfer realty to a Production Credit Association are exempt from the deed
recording fee under Code Section 12-24-40(2) since a Production Credit Association is
considered an instrumentality of the federal government pursuant to 12 USCA 2071 and
12 USCA 2077. - Are deeds that transfer realty from a Production Credit Association to a nongovernmental entity subject to the deed recording fee?
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Deeds that transfer realty from a Production Credit Association to a non-governmental
entity are subject to the deed recording fee if the consideration paid or to be paid is more
than $100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the federal government, the deed may be
exempt if the grantee is otherwise exempted by law.
Federal Land Bank Association Deeds:
- Are deeds that transfer realty to a Federal Land Bank Association subject to the deed
recording fee?
Deeds that transfer realty to a Federal Land Bank Association are exempt from the deed
recording fee under Code Section 12-24-40(2) since a Federal Land Bank Association is
considered an instrumentality of the federal government pursuant to 12 USCA 2091 and
12 USCA 2098. - Are deeds that transfer realty from a Federal Land Bank Association to a nongovernmental entity subject to the deed recording fee?
Deeds that transfer realty from a Federal Land Bank Association to a non-governmental
entity are subject to the deed recording fee if the consideration paid or to be paid is more
than $100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the federal government, the deed may be
exempt if the grantee is otherwise exempted by law.
Federal National Mortgage Association (“Fannie Mae”) Deeds: - Are deeds that transfer realty to the Federal National Mortgage Association (“Fannie
Mae”) subject to the deed recording fee?
Deeds that transfer realty to the Federal National Mortgage Association (“Fannie Mae”)
are subject to the deed recording fee if the consideration paid or to be paid is more than
$100.00 and the transfer is not otherwise exempt under Code Section 12-24-40. - Are deeds that transfer realty from the Federal National Mortgage Association
(“Fannie Mae”) to a non-governmental entity subject to the deed recording fee?
Deeds that transfer realty from the Federal National Mortgage Association (“Fannie
Mae”) to a non-governmental entity are exempt from the deed recording fee under Code
Section 12-24-40(3), 12 USCA 1717, and 12 USCA 1723a.
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Note: The Federal National Mortgage Association is not a federal instrumentality
Federal Home Loan Mortgage Corporation (“Freddie Mac”) Deeds:
- Are deeds that transfer realty to the Federal Home Loan Mortgage Corporation
(“Freddie Mac”) subject to the deed recording fee?
Deeds that transfer realty to the Federal Home Loan Mortgage Corporation (“Freddie
Mac”) are subject to the deed recording fee if the consideration paid or to be paid is more
than $100.00 and the transfer is not otherwise exempt under Code Section 12-24-40. - Are deeds that transfer realty from the Federal Home Loan Mortgage Corporation
(“Freddie Mac”) to a non-governmental entity subject to the deed recording fee?
Deeds that transfer realty from the Federal Home Loan Mortgage Corporation (“Freddie
Mac”) to a non-governmental entity are exempt from the deed recording fee under Code
Section 12-24-40(3) and 12 USCA 1452.
Note: The Federal Home Loan Mortgage Corporation (“Freddie Mac”) is not a federal
instrumentality.
Timeshare Deeds: - Are deeds that transfer a one-week interest in a timeshare unit under a vacation time
sharing ownership plan (not a “vacation time sharing lease plan”) as defined in Chapter
32 of Title 27 subject to the deed recording fee?
Deeds that transfer a one-week interest in a timeshare unit under a vacation time sharing
ownership plan as defined in Chapter 32 of Title 27 are subject to the deed recording fee
if the consideration paid or to be paid is more than $100.00 and the transfer is not
otherwise exempt under Code Section 12-24-40. - Are deeds that transfer a one-week interest in a timeshare unit under a vacation time
sharing ownership plan (not a “vacation time sharing lease plan”) as defined in Chapter
32 of Title 27 to the original seller, or to the company managing the timeshare
development, in exchange for forgiving any unpaid fees subject to the deed recording
fee?
Deeds that transfer a one-week interest in a timeshare unit under a vacation time sharing
ownership plan as defined in Chapter 32 of Title 27 to the original seller, or to the
company managing the timeshare development, in exchange for forgiving any unpaid
fees are subject to the deed recording fee if the consideration paid or to be paid (the
amount of the unpaid fees forgiven) is more than $100.00 and the transfer is not
otherwise exempt under Code Section 12-24-40.
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Manufactured Homes:
- Are deeds that transfer land and the manufactured home anchored to the land subject
to the deed recording fee based on the full consideration paid or may the value of the
home be deducted in calculating the deed recording fee?
Deeds that transfer land and the manufactured home anchored to the land are subject to
the deed recording fee based on the full consideration paid. The manufactured home
anchored to the land is realty and its value may not be deducted from the consideration
paid in calculating the deed recording fee.
Note: “A deduction from value is allowed for the amount of any lien or encumbrance
existing on the land, tenement, or realty before the transfer and remaining on the land,
tenement, or realty after the transfer.” See Code Section 12-24-30(B).
Timber Deeds: - Are “timber deeds” subject to the deed recording fee?
Deeds that constitute a contract for the sale of timber to be cut are exempt from the deed
recording fee under Code Section 12-24-40(7).
Deeds transferring the timber and the underlying land are subject to the deed recording
fee based on the full “value” as defined in Code Section 12-24-30, unless otherwise
exempt under the statute.
Mineral Rights: - Is the recording of a deed that conveys mineral rights (oil, gas, sand, etc.) to another
person subject to the deed recording fee?
A deed that conveys mineral rights (oil, gas, sand, etc.) to another person where the
minerals are to be severed by the grantee (buyer) is a deed that conveys realty. The
recording of this deed is subject to the deed recording fee, unless otherwise exempt under
the law, based on the value of the mineral rights as determined by Code Section 12-2430.
Easements and Rights-of-Way: - Is the recording of a deed that conveys an easement or a right of way to another
person subject to the deed recording fee?
The recording of a deed that conveys an easement or a right of way to another person is
subject to the deed recording fee, unless otherwise exempt under the law, based on the
value of the easement or right of way as determined by Code Section 12-24-30.
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Note: In addition to the discussion portion of this regulation, see Questions #1 through #4
for a discussion of “value” as determined by Code Section 12-24-30.
Deeds to Obtain Construction Loans:
To best address Questions #61 and #62 (below) concerning deeds to obtain construction
loans, the following example will be used:
Mr. X owns realty with a fair market value of $22,000.00 and wants to construct a home
on that realty. Mr. X hires ABC Home Contractors (“ABC”) to build a home on the realty
for $250,000.00.
In order to obtain the construction loan to build the home, the financial institution is
requiring that title to the realty on which the home is to be constructed be in the name of
ABC. Mr. X transfers the realty to ABC under an agreement that ABC will construct the
home (per specifications agreed upon by both parties) and then transfer the realty back to
Mr. X upon payment of the $250,000.00.
Note: For purposes of this example, neither transfer involves a lien or encumbrance that
existed on the realty before the transfer and remained on the realty after the transfer. In
addition, neither transfer in this example involves (1) a transaction between a corporation,
a partnership, or other entity and its stockholder, partner, or owner, or (2) a transaction
involving a transfer of realty to a trust or as a transfer of realty as a distribution to a trust
beneficiary.
- Is the deed that transfers realty from Mr. X to ABC, as discussed in the facts above,
so that ABC may obtain a construction loan to build a home for the Mr. X, subject to the
deed recording fee?
The deed that transfers realty from Mr. X to ABC, so that ABC may obtain a construction
loan to build a home for Mr. X, is subject to the deed recording fee based on $22,000.00 the fair market value of the realty.
Note: If the fair market value of the realty for property tax purposes is less than
$22,000.00, Code Section 12-24-30(C) allows the taxpayer to use that figure in
computing the deed recording fee due. - Is the deed that transfers the same realty, as discussed in the facts above, from ABC
back to Mr. X upon completion of the building subject to the deed recording fee?
The deed that transfers the same realty from ABC back to Mr. X upon completion of the
home is subject to the deed recording fee based on $250,000.00 - the money paid or to be
paid pursuant to the contract for constructing the home. - Are deeds that transfer realty as part of an income tax deferred exchange under
Internal Revenue Code Section 1031 subject to the deed recording fee?
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The exchange of realty pursuant Section 1031 of the Internal Revenue Code constitutes a
transfer of realty for a consideration subject to the fee unless otherwise exempted under
Code Section 12-24-40.
117-1350.3 Remittance of Fee in the County in Which the Realty is Located
The fee must be remitted to the clerk of court or the register of deeds in the county in
which the realty is located and recorded.
117-1350.4 Remittance of Fee for Realty Located in More Than One County
If the realty is located in more than one county, the person having the deed recorded in a
county must state by affidavit what portion of the value of the realty is in that county, and
payment of the fee must be made based on the proportionate value of the realty located in
that county.
117-1350.5 Notation on the Instrument
Prior to recording a deed subject to the fee, the county must collect the fee and place a
notation on the deed containing the following (1) the date the deed was filed; (2) the fee
collected; and (3) any other information required by the county. If the deed qualifies for
an exemption, the word "EXEMPT" should be placed in the notation.
117-1350.6 Affidavit of Value
An affidavit is to be filed with a deed, and that affidavit must show the value of the
realty. For deeds exempt under the law, the value will not be required to be stated on the
affidavit. Such affidavits must state the reason why the deed is exempt from the fee. The
affidavit required by this section must be signed by a responsible person connected with
the transaction and the affidavit must state that connection. Secretaries, paralegals,
runners, and other administrative personnel do not qualify as a “responsible person
connected with the transaction” and, therefore, may not sign the affidavit.
The clerk of court or register of deeds shall file these affidavits in his office.
The clerk of court or register of deeds may, at his discretion, waive the affidavit
requirement. In addition, “[a]n affidavit is not required for an instrument or deed of
distribution assigning, transferring, or releasing real property to the distributee of an
estate pursuant to Section 62-3-907 as evidence of the distributee's title.”
A person required to furnish the affidavit who wilfully furnishes a false or fraudulent
affidavit is guilty of a misdemeanor and, upon conviction, must be fined not more than
one thousand dollars or imprisoned not more than one year, or both.
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117-1350.7 Assumption of a Mortgage in the Conveyance of Real Property
To set forth the true, full, and complete consideration, paid or to be paid, where any
mortgage is assumed in the conveyance of real property, it is necessary for the deed or
affidavit to state the Number of the Real Estate Mortgage Book and the Page Number,
and the remaining balance assumed.
Fiscal Impact Statement:
There will be no impact on state or local political subdivisions’ expenditures in
complying with this proposed legislation. There will be a minimal increase to general
fund collections.
Statement of Rationale:
The purpose of this proposal is to amend SC Regulation 117-1350 to ensure that the
present regulation concerning the deed recording fee has information concerning
common real estate transactions and deed recording fee issues.
The proposal to amend this regulation is also reasonable in that it represents longstanding
Department policy that is consistent with the statute.
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Document No. 3205
DEPARTMENT OF INSURANCE
CHAPTER 69
Statutory Authority: 1976 Code Sections 1-23-110 et seq., 12-6-3660 and 38-3-110
69-75. Tax Credits For Fortification Measures
Synopsis:
The Omnibus Coastal Property Insurance Reform Act of 2007 amended Article 25,
Chapter 6, Title 12 of the S.C. Code Ann. by adding Section 12-6-3660 to require that an
individual taxpayer is allowed a credit against the tax imposed pursuant to Section 12-6510 for costs incurred to retrofit a structure qualifying as the taxpayer’s legal residence
pursuant to Section 12-43-220(c) to make it more resistant to loss due to hurricane, rising
floodwater, or other catastrophic windstorm event. Section 12-6-3665 provides that an
individual taxpayer is allowed a credit from the income tax imposed pursuant to Section
12-6-510 for South Carolina state sales or use taxes paid on purchases of tangible
personal property used to retrofit the individual’s legal residence pursuant to Section 126-3660. The Act provides the authority to the Department of Insurance to define by
regulation how these fortification measures qualify for income tax credits and the
evidence that the individual taxpayer shall maintain and provide to claim the credit. The
proposed regulation provides detailed information about the fortification measures that
qualify for the credits.
Instructions:
Add Regulation 69-75, Tax Credits For Fortification Measures, as drafted below, to the
South Carolina Code of Regulations.
Text:
69-75. Tax Credits For Fortification Measures
Section 1. Purpose and Qualifying Fortification Measures
A. The purpose of this regulation is to set forth the fortification measures that qualify
for the state income tax credit allowed pursuant to Section 12-6-3660.
B. An individual taxpayer is allowed a state income tax credit for costs incurred to
implement the fortification measures outlined in this regulation. The fortification
measures must be made to a structure qualifying as the taxpayer’s legal residence
pursuant to Section 12-43-220(c). The tax credit allowed pursuant to Section 12-6-3660
for any taxable year must not exceed the lesser of:
(1) twenty-five percent of the cost incurred; or
(2) one thousand dollars
for a qualifying residence regardless of the number of taxpayers residing in the residence.
35
C. The standards which must be met by an individual taxpayer to qualify for state
income tax credits for costs to fortify the taxpayer’s legal residence pursuant to S.C. Code
Section 12-6-3660 or sales and use tax credits pursuant to S.C. Code Section 12-6-3665
are the same as those required under the SC Safe Home Program that are contained in the
South Carolina Safe Home Resource Document for Mitigation Techniques dated July
2008, developed for the SC Safe Home Program by the Federal Alliance for Safe Homes
and available at www.scsafehome.com. That document is incorporated herein by
reference and available on the Department’s website. Fortification measures must be
accomplished in accordance with the standards contained in the South Carolina Safe
Home Resource Document for Mitigation Techniques. All products must have an ICC
Evaluation Services Legacy Report or other appropriate test reports acceptable to the
local building officials for the intended use.
The South Carolina Department of Insurance must review and update the manual as
necessary to comply with changes in building code standards, mitigation measures or
other applicable provisions of state or federal law.
Section 2. Evidence
A. To qualify for the tax credit, the individual taxpayer must maintain evidence that the
fortification measures were implemented and costs incurred. Evidence necessary to prove
the taxpayer is entitled to the credit must be provided to the Department of Revenue upon
request.
B. The acceptable forms of evidence include:
(1) A written certification or a report (with certification) from a licensed professional
with expertise in construction techniques, building design or property inspection or
appraisal including, but not limited to an: architect; appraiser; building inspector; or
contractor that the fortification measure has been implemented in accordance with
applicable standards. Copies of the applicable receipts must accompany the certification
or report; or
(2) An Affidavit from the individual taxpayer certifying that the fortification
measures have been implemented. Copies of the applicable receipts must accompany the
affidavit.
Fiscal Impact Statement:
There will be no increased costs to the state or its political subdivisions. There may be a
reduction in income tax collected by the state from those taxpayers who qualify for the
credit. It is believed this will be offset by the anticipated benefit to the state in reduced
damage from windstorm. Any such decrease will positively affect the state by reducing
debris, etc. from damaged property, and will benefit the public by reducing the possibility
of death, injury, and homelessness from hurricanes or other catastrophic windstorm
events.
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Statement of Rationale:
This proposed regulation is a part of a comprehensive initiative to address the property
insurance issues in South Carolina. A healthy insurance marketplace is imperative to the
well-being of our state’s economy. Significant hurricane losses by the insurance industry
and predictions for above-average hurricane frequency and severity have contributed to
the decline of the property insurance market in South Carolina. Strengthening of
residential structures should lessen the extent of damage to homes and reduce the loss of
life or injury due to hurricanes or other catastrophic windstorm events.
37
SOUTH CAROLINA DEPARTMENT OF REVENUE
ERRATA
117-307.1 Examples of the Application of Tax to Various Charges Imposed by Hotels,
Motels, and Other Facilities.
During the 2008 session of the General Assembly, SC Regulation 117-307.1 was
amended to reflect the increase in the general sales and use tax rate from 5% to 6%
beginning June 1, 2007. However, the admissions tax rate cited in Question #16 of this
regulation was inadvertently changed from 5% to 6%. The admissions tax rate, as
established by SC Code Section 12-21-2420, is 5%.
This notice is being issued to correct that error; therefore, Question #16 of SC Regulation
117-307.1 should read as follows:
Golf and Other Tourist Packages
16.Q. If a hotel has a "golf package" for $100.00 per night, and the customer is entitled to
a room at the hotel, one round of golf at a golf course at no extra charge, and a meal at no
extra charge, what tax rate applies?
A. The $100 charge would be subject to the 7% tax, except any portion forwarded to the
golf course for payment of the green fee and any portion forwarded to the restaurant for
payment of the meal. However, see the one exception in the "Note" in Example #1.
The following examples best explain this answer:
Example #1: The hotel receives $100 from the guest for the golf package. The hotel pays
the golf course $30 for the guest's green fee and pays the restaurant $5 for the guest's
meal.
The hotel would be liable for the 7% tax on $65 ($100 - $35). The golf course would be
liable for the 5% admissions tax on $30 and the restaurant would be liable for 6% sales
tax on the sale of the meal. This calculation must be made on a guest by guest basis. In
other words, the 7% tax due will be determined for each guest by multiplying 7% by the
total charge for the package less the portion forwarded to the golf course for payment of
the green fee and the portion forwarded to the restaurant for payment of the meal.
Note: If the hotel's guest is unable to play golf that day ("No-Show") (but still received
the meal), and under terms of the golf package the guest will not be required to pay the
"green fee portion" of the package, the hotel would be liable for the 7% tax on the
amount it received from the guest less the amount paid by the hotel to the restaurant. For
example, if the hotel determined that the "green fee portion" of the $100 package was $30
and required the guest to only pay $70 for that day, then the hotel would be liable for the
7% tax on $65 and the restaurant would be liable the 6% sales tax on the sale of meal.
38
If the hotel's guest is unable to play golf that day ("No-Show") (but still received the
meal), and under terms of the golf package the guest must still pay the hotel the full $100,
the hotel would be liable for the 7% tax on the "accommodations portion" of the package.
The golf course would not be liable for the 5% admissions tax since the guest did not
play golf and the golf course did not receive an admissions fee from the hotel. However,
the hotel is liable for the 6% tax on the other portion of the $100 paid by the guest since it
now represents an additional guest charge for the service of making the golf
arrangements that were not used. This additional guest charge will be equal to the green
fee that the hotel would have had to pay to the golf course. In other words, if the hotel
would have been required to pay $30 had the guest played golf, then the additional guest
charge would be $30. As such, the hotel would be liable for the 7% tax on $65 and the
6% tax (as an additional guest charge for the service) on $30 and the restaurant would be
liable for the 6% sales tax on the sale of the meal.
Example #2: The hotel receives $100 from the guest for the golf package. The hotel pays
the restaurant $5 for the guest's meal. The hotel has an agreement with the golf course to
pay the golf course $30 for the guest's green fee. When a guest does play golf, the hotel
pays the $30; however, the hotel will receive money back from the golf course at a later
date to help pay for the hotel's advertisements of its golf packages.
The hotel would be liable for the 7% tax on $65 ($100 - $35). The golf course would be
liable for the 5% admissions tax on $30 and the restaurant would be liable for the 6%
sales tax on the sale of the meal. The fact that the hotel will receive a portion of the
money back in the future does not affect the taxation of the charges. It is merely an
expense of the golf course that is paid to the hotel.
Notes: 1. To ensure the 7% tax is not circumvented by sending most of the package
charge to the golf course and then later having a large portion of it returned to the hotel as
"advertising," the amount paid to the golf course and returned to the hotel to pay for
advertising must be reasonable and supported by the books and records of both taxpayers.
Otherwise, the Department will assess taxes according to a reasonable breakdown of
room charges, green fees, and meal charges.
- Other tourist packages, such as tennis, honeymoon, and entertainment packages,
handled in a similar manner would be taxed in the manner described above for golf
packages.
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