What local sales and use taxes and Catawba tribal tax rates does South Carolina collect effective August 1, 2009 (per SC IL #09-8)?

Plain-English summary

This Information Letter is the Department's set of reference charts, effective August 1, 2009, showing the local sales and use taxes it collects and which exemptions apply to each. The charts cover general local taxes collected on behalf of counties, municipalities, and school districts, the Catawba Indian tribal tax, and the municipal local tourism-development sales tax/fee. They do not cover local accommodations taxes or prepared-meals (hospitality) taxes, which counties and municipalities collect directly. This letter supersedes SC Information Letter #09-2 and all previous versions.

The August 1, 2009 edition was issued to reflect the new local Tourism Development sales and use tax being imposed in the City of Myrtle Beach, effective August 1, 2009.

For the Catawba Indian Reservation, which spans Lancaster and York Counties, effective May 1, 2009 the combined sales and use tax rate is 8% in the Lancaster County portion and 7% in the York County portion, under S.C. Code § 27-16-130(H), with maximum-tax items capped at the § 12-36-2110 maximum tax.

What this means for you

If you make taxable sales in South Carolina, use these charts to confirm the combined local rate for the county or city you are selling into and which state exemptions carry over to each local tax. Retailers in the City of Myrtle Beach should note the new Tourism Development sales and use tax effective August 1, 2009. Sellers delivering onto the Catawba Indian Reservation should apply the tribal chart rather than the ordinary county rate.

Common questions

Q: What changed in this edition?
A: The City of Myrtle Beach began imposing a new local Tourism Development sales and use tax, effective August 1, 2009.

Q: What are the Catawba tribal rates?
A: Effective May 1, 2009, the combined rate is 8% in the Lancaster County portion of the reservation and 7% in the York County portion, with maximum-tax items capped at the state maximum tax.

Q: Do these charts include local accommodations or restaurant (prepared-meals) taxes?
A: No. Those are collected directly by the counties and municipalities and are outside these charts.

Subject

Local Sales and Use Tax Charts, Catawba Tribal Sales and Use Tax Chart and Exemption Information

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL09-8.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 09-8
SUBJECT:

Local Sales and Use Tax Charts, Catawba Tribal Sales
and Use Tax Chart and Exemption Information
(Sales and Use Tax)

EFFECTIVE DATE: August 1, 2009
SUPERSEDES:

SC Information Letter #09-2 and all previous documents and any oral
directives in conflict herewith.

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (Supp. 2008)
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 South Carolina Code of Laws allows the imposition of various types of local sales and use
taxes. Citizens of a county, depending upon the needs within the county, may impose one or
several local sales and use taxes. Municipal councils, or the citizens of a municipality, may
impose a sales and use tax1 for tourism development if the municipality is located in a county
where revenue from state accommodations tax is at least fourteen million dollars in a fiscal year.2
While most of these local sales and use taxes provide the same exemptions for certain sales and
purchases, there are some differences. Attached are three charts that should provide guidance
concerning the various types of local sales and use taxes collected by the Department of Revenue
and the types of exemptions allowed under each tax.
Please note that these charts only address the general local sales and use taxes collected by the
Department of Revenue on behalf of the counties, municipalities, school districts, and the
Catawba Indian tribal government. They do not address the local taxes on sales of
accommodations or on sales of prepared meals that are collected directly by the counties or
municipalities.
This information letter is being issued to reflect the new local Tourism Development sales
and use tax being imposed in the City of Myrtle Beach effective August 1, 2009.
1

This municipal sales and use tax is actually a fee (Local Option Tourism Development Fee) imposed under Article 9
of Chapter 10 of Title 4. (See Senate Bill No. 483 of 2009). For purposes of simplicity, this fee will be referred to as a
sales and use tax in this information letter.
2
As of the date of this information letter, only Horry county meets this criterion.

CHART 1: COUNTY SALES AND USE TAXES3
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

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

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD
SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Abbeville

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Aiken

Capital Projects
4/1/06

Yes

Yes

No

Yes

No

Yes

Allendale

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Capital Projects

Yes

Yes

No

Yes

No

Yes

NOTE

1 & 12

1&5

5/1/09
Bamberg

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Barnwell

Local Option
5/1/99

Yes

Yes

Yes

Yes

No

Yes

Beaufort

Transportation

Yes

Yes

No

Yes

No

Yes

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Transportation

Yes

Yes

No

Yes

No

Yes

1&6

5/1/07
Berkeley

1 & 18

5/1/09
Calhoun

Local Option
5/1/05

Yes

Yes

Yes

Yes

No

Yes

Charleston

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Transportation

Yes

Yes

No

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

No

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

1& 8

5/1/05
Cherokee

Cherokee School
7/1/96
Local Option

1 & 19

5/1/09
Chester

Local Option
5/1/94
Capital Projects

1&3

5/1/09
Chesterfield

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

3

“County Sales and Use Taxes” listed in this chart (Chart 1) are imposed county–wide, whether imposed by the
county or one or more school districts.

2

1&4

SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

Clarendon

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

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

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD
SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Local Option

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes - until
6/30/05

Yes

NOTE

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

1 & 11

No - effective
7/1/05

Colleton

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Darlington

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Darlington
School

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

1&7

Yes

Yes

No

Yes

No

Yes

1

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

No

Yes

1 & 10

2/1/04
Dillon

Local Option
5/1/96
School District
10/1/08
Transportation

Dorchester

5/1/05

Edgefield

Local Option
5/1/92
Local Option

Fairfield

5/1/06

Florence

Local Option
5/1/94

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/07

Yes

Yes

No

Yes

No

Yes

Greenwood

Capital Projects
5/1/07

Yes

Yes

No

Yes

No

Yes

Hampton

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/01/03

Yes

Yes

No

Yes

No

Yes

1&9

Capital Projects
5/1/07
Ed. Capital Imp.
3/1/09

Yes

Yes

No

Yes

No

Yes

1 & 17

Yes

Yes

No

Yes

Yes

Yes

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

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Horry

Jasper

Kershaw

3

1 & 16

1

1&2

SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

Lancaster

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

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

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD
SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Local Option
5/1/92
Capital Projects

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

No

Yes

NOTE

1 & 20

5/1/09
Laurens

Local Option
5/1/99

Yes

Yes

Yes

Yes

No

Yes

Lee

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

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

1 & 15

Yes

Yes

No

Yes

Yes

Yes

1

Lexington

Lexington
Schools
3/1/05

Marion

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Marlboro

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

McCormick

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Newberry

Capital Projects
4/1/05

Yes

Yes

No

Yes

No

Yes

1 &12

Orangeburg

Capital
Projects
4/1/06

Yes

Yes

No

Yes

No

Yes

1 & 12

Pickens

Local Option
5/1/95

Yes

Yes

Yes

Yes

No

Yes

Richland

Local Option
5/1/05

Yes

Yes

Yes

Yes

No

Yes

Saluda

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Sumter

Local Option
5/1/96
Capital Projects

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

No

Yes

1 & 21

5/1/09
Williamsburg

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

York

Capital Projects
10/1/04

Yes

Yes

No

Yes

No

Yes

4

1 & 12

CHART 2: CATAWBA INDIAN RESERVATION TRIBAL TAX4
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
RESERVATION
LOCATED IN
YORK AND
LANCASTER
COUNTIES

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

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

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD
SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

NOTE

Catawba Indian
Reservation

Tribal Tax
(See Notes #13
and #14)

Yes

See Note #14

See Note #14

Yes

See Note #13

See Note #14

13 &14

CHART 3: MUNICIPAL SALES AND USE TAXES5
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
Municipality

TYPE OF
LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

Myrtle Beach

Tourism
Development
8/1/09

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

12-36-2110
EXEMPTION
FOR
MAXIMUM
TAX ITEMS

12-36-1710
EXEMPTION
FOR CASUAL
EXCISE ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR
CERTAIN
FOOD
SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

NOTE

Yes

Yes

No

Yes

Yes

Yes

1

LOCAL TAX RATES:
Each local tax listed in the above charts is imposed at a rate of 1%, except for the Charleston
county Transportation tax which is imposed at a rate of ½ of 1% (Chart #1) and the Catawba
Tribal Sales and use tax (Chart #2). See Notes #13 and #14 for information on the tax rates
and the application of either the State sales and use tax or the Catawba Tribal sales and use tax
for sales (deliveries) made on the Catawba Indian Reservation.

TYPES OF LOCAL SALES AND USE TAXES:
Local Option: The local option sales and use tax is authorized under Code Section 4-10-10
et. seq. This tax is a general sales and use tax on all sales at retail (with a few exceptions)
taxable under the state sales and use tax. This tax is imposed to reduce the property tax
burden on persons in the counties that impose this type of local tax and is collected by the
Department of Revenue on behalf of these counties.
4

Chart 2 concerns the Catawba Tribal Sales and Use Tax; however, see Notes #13 and #14 for information on
the tax rates and the application of either the State sales and use tax or the Catawba Tribal sales and use tax for
sales (deliveries) made on the Catawba Indian Reservation.
5
Chart 3 concerns the Local Tourism Development Sales and Use Tax that may only be imposed by
municipalities located in a county where revenue from state accommodations tax is at least fourteen million
dollars in a fiscal year. As of the date of this information letter, only Horry county meets this criterion;
therefore, only municipalities in Horry county may impose the Local Tourism Development Sales and Use Tax
at this time.

5

Capital Projects: The local capital projects sales and use tax is authorized under Code
Section 4-10-300 et. seq. This tax is a general sales and use tax on all sales at retail (with a
few exceptions) taxable under the state sales and use tax. This tax is imposed specifically to
defray the debt service on bonds issued for various capital projects in the counties that
impose this type of local tax and is collected by the Department of Revenue on behalf of
these counties.
Transportation: The local transportation projects sales and use tax is authorized under Code
Section 4-37-30 et. seq. This tax is a general sales and use tax on all sales at retail (with a
few exceptions) taxable under the state sales and use tax. This tax is imposed specifically to
defray the debt service on bonds issued for various transportation projects in the counties that
impose this type of local tax and are collected by the Department of Revenue on behalf of
these counties.
Personal Property Tax Relief: The personal property tax relief sales and use tax is
authorized under Code Section 4-10-540. et. seq. This tax is a general sales and use tax on
all sales at retail (with a few exceptions) taxable under the state sales and use tax. This tax is
imposed in lieu of the personal property tax imposed on private passenger motor vehicles,
motorcycles, general aviation aircraft, boats, and boat motors. The tax may not exceed the
lesser of 2% or the amount necessary to replace the property tax on vehicles, motorcycles,
general aviation aircraft, boats, and boat motors in the most recently completed fiscal year.
As of the date of this information letter, this tax is not being imposed.
Local Property Tax Credits: The local option sales and use tax for local property tax
credits is authorized under Code Section 4-10-720 et. seq. (Act 388 of 2006, Part III). This
tax is a general sales and use tax on all sales at retail (with a few exceptions) taxable under
the state sales and use tax. This tax is imposed to provide a credit against property tax
imposed by a political subdivision for all classes of property subject to the property tax and is
collected by the Department of Revenue on behalf of these counties. As of the date of this
information letter, this tax is not being imposed.
Education Capital Improvement Sales and Use Tax. The school district or school districts
within a county may impose a 1% sales and use tax within the county for specific education
capital improvements for the school district for not more than 15 years. The tax is authorized
under Code Section 4-10-410 et. seq. (Act No. 316 of 2008) and must be approved by a
referendum open to all qualified electors residing in the county. Pursuant to a memorandum
of agreement, a portion of the revenue may be shared with the area commission (governing
body of a technical college) or higher education board of trustees (governing body of a public
institution of higher learning) or both, for specific education capital improvements on the
campus of the recipient located in the county listed in the referendum. This tax may only be
imposed in counties which have collected at least $7 million in state accommodations taxes
in the most recent fiscal year for which data is available. Once the threshold is met, a county
remains eligible to impose this tax. This tax may not be imposed in a county that is imposing
or is scheduled to impose a local sales and use tax for public school capital improvements.
School District Taxes. The General Assembly has authorized certain school districts to
impose a sales and use tax within the county. These taxes are generally imposed to pay debt
service on general obligation bonds and/or the cost of capital improvements. Currently, only
8 of the 20 school district taxes authorized by the General Assembly are being imposed.

6

As of the date of this information letter, these school district taxes are being imposed at a rate
of 1%6:
County

Act Authorizing Tax

Cherokee
Chesterfield
Clarendon
Darlington
Dillon
Jasper
Lee
Lexington

Act No. 588 0f 1994
Act No. 441 of 2000
Act No. 355 of 2004 and Act No. 195 of 2005
Act No. 132 of 2003
Act No. 137 of 2007
Act No, 146 of 2001
Act No. 426 of 2006
Act No. 378 of 2004

As of the date of this information letter, these school district taxes are not currently being
imposed:
County

Act Authorizing Tax

Allendale
Berkeley
Colleton
Dillon
Edgefield
Horry
Marlboro
McCormick
Newberry
Richland
Pickens
Union

Act No. 371 of 2008
Act No. 178 of 1999
Act No. 462 of 1998
Act No. 197 of 20057
Act No. 365 of 2004
Act No. 371 of 2004
Act No. 204 of 2005
Act No. 387 of 2004
Act No. 151 of 2003
Act No. 326 of 2002
Act No. 463 of 2002
Act No. 497 of 1998

Catawba Indian Tribal Tax: The Catawba Indian Reservation is located in Lancaster and
York counties where the combined sales and use tax rate in each county is 7% through April
30, 2009. Effective May 1, 2009, the combined sales and use tax rate for Lancaster county
will be 8% and York county will remain 7%. Code Section 27-16-130(H) contains the
specific sales and use tax provisions. The sales tax is administered and collected by the
Department. See South Carolina Revenue Ruling #98-18 and see Notes #13 and #14.
Tourism Development Tax: The local tourism development sales and use tax is authorized
under Code Section 4-10-910 et. seq. (Senate Bill No. 483 of 2009). This tax is a general
sales and use tax on all sales at retail (with a few exceptions) taxable under the state sales and
use tax and may only be imposed by a municipality located in a county where revenue from
the state accommodations tax is at least fourteen million dollars in a fiscal year. As of this
date, only Horry county meets this criterion; therefore, only municipalities in Horry county
may impose this tax. This tax may be imposed by an ordinance adopted by a two-thirds
6

See the Chart #1 for the date each school district tax was first imposed.
This school district tax was never imposed and the Act authorizing the tax was repealed by Act No. 137 of
2007.
7

7

majority of the municipal council or by approval by a majority of qualified electors voting in
a referendum authorized by a majority of the municipal council. The tax is imposed
specifically for tourism advertisement and promotion directed at non-South Carolina
residents; however, in the third and subsequent years of this tax a portion of the tax may be
used for certain property tax rollbacks. The tax collected by the Department of Revenue on
behalf of these municipalities.

REMITTANCE OF LOCAL SALES AND USE TAXES BY RETAILERS:
For information on when a retailer is required to remit a local sales and use tax when
delivering product to a purchaser in another county, see SC Revenue Ruling #05-16. Please
note that the principles established in SC Revenue Ruling #05-16 also apply to a retailer’s
responsibility for remitting the Tourism Development Tax when delivering product into a
municipality that has imposed a Tourism Development Tax.

TYPES OF EXEMPTIONS:
State Exemptions - 12-36-2120: Sales of tangible personal property exempt from the State
sales and use tax are exempt from the local sales and use tax if marked “Yes” under this
column.
Exemption for Maximum Tax Items- 12-36-2110: Sales of items subject to a maximum tax
under the State sales and use tax law [i.e. aircraft, motor vehicles, motorcycles, boats, trailers
and semitrailers pulled by truck tractors, horse trailers, recreational vehicles (including tent
campers, travel trailers, park models, park trailers, motor homes, and fifth wheels),
self-propelled light construction equipment, unassembled aircraft, manufactured homes,
musical instruments and office equipment purchased by certain religious organizations and
fire safety education trailers] are exempt from the local sales and use tax if marked “Yes”
under this column.
Exemption for Casual Excise Tax Items - 12-36-1710: Sales of items subject to the casual
excise tax under Code Section 12-36-1710 through Code Section 12-36-1740 (i.e. motor
vehicles, motorcycles, boats, motors, and airplanes required to be registered, titled, or
licensed) are exempt from the local sales and use tax if marked “Yes” under this column.
Exemption for Food Stamp Purchases: Sales of food purchased with foods stamps are
exempt from the State sales and use tax; therefore, such sales are exempt from the local sales
and use tax if marked “Yes” under this column.
Exemption for Certain Food Sales: Sales of certain foods are exempt from the local sales
and use tax if marked “Yes” under this column. Sales of food which are eligible to be
purchased with United States Department of Agriculture food stamps come under this
exemption. This exemption applies to everyone, not just persons using food stamps.

8

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

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

*

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

*

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

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

Alcoholic beverages, such as beer, wine, or liquor

*

Hot beverages ready-to-drink such as coffee

*

Tobacco

*

Hot foods ready to eat

*

Foods designed to be heated in the store

*

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

*

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

*

Pet food

*

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

For more detailed information on this food exemption, see SC Regulation 117-337.
“Grandfather Clause” Exemption for Certain Purchases By Construction Contractors:
All the local sales and use taxes discussed in this information letter exempt purchases of
building materials for use under a construction contract if both of the following conditions
are met:
A.

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

9

B.

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

A "verified copy" is a copy accompanied by a statement, signed under penalties of perjury,
that it is true and correct. If the contractor is a corporation, the statement is to be signed by
an officer of the corporation or an employee authorized to sign. If the contractor is a
partnership, the statement is to be signed by a general partner. If the contractor is a sole
proprietorship, the owner is to sign.
Special Exemption Certificate. In order for a contractor to purchase building materials for
a particular contract free of the local tax, the contractor must complete Form ST-10-C
("Application for Exemption from Local Option Tax") and submit it to the Department of
Revenue. If the Department determines the contract in question meets the above
requirements, the contractor will be issued a special exemption certificate (Form ST-35).
The certificate may only be used to purchase building materials for the contract for which it
is issued and may not be used to purchase anything other than building material. If the
contractor uses this certificate to make purchases free of the local tax, upon which the tax
should have been paid, then the contractor will be held liable for the tax. Also, the certificate
does not allow the contractor to make purchases of building materials free of the State
tax.
An exemption certificate (Form ST-35) issued by the Department of Revenue to a prime
contractor under this exemption may not be used by a subcontractor nor may a prime
contractor use a subcontractor's exemption certificate. Each contractor must obtain his own
certificate for each construction contract.
Note #1: By not exempting items subject to the casual excise tax (“No” in the “Casual Excise
Items” column), counties imposing this local sales and use tax will impose the local tax on
sales and purchases of trailers that can be pulled by vehicles other than truck tractors, sales of
pole trailers and sales of boat motors not attached to a boat at the time of sale, but will not
impose the local sales and use tax on items subject to a maximum tax under the State sales and
use tax law.
Note #2: Effective December 1, 2002, Jasper county charges two local sales and use taxes the 1% Local Option Tax and the 1% Jasper School Tax. Jasper county has imposed the 1%
Local Option Tax since July 1, 1991 and imposed both the 1% Local Option Tax and 1%
Capital Projects Tax for the period of May 1, 1999 through November 30, 2002.
Note #3: Since May 1, 1994, Chester county has imposed the 1% Local Option Tax. Effective
May 1, 2009 Chester county charges two local sales and use taxes - the 1% Local Option Tax
and the 1% Capital Projects. Chester county had previously imposed another 1% Capital
Projects Tax for the period of May 1, 1999 through April 30, 2000.

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Note #4: Since May 1, 1997, Chesterfield county has imposed the 1% Local Option Tax.
Effective September 1, 2000, Chesterfield county charges two local sales and use taxes - the
1% Local Option Tax and the 1% Chesterfield School Tax.
Note #5: Since May 1, 1992, Allendale county has imposed the 1% Local Option Tax.
Allendale county previously imposed the 1% Capital Projects Tax for the period of May 1,
2001 through December 31, 2006. In November 2008, the citizens of Allendale county voted
to impose a 1% Capital Projects Tax again; however, the vote was not timely certified and the
imposition of the tax was scheduled to be postponed until May 1, 2010 unless the General
Assembly enacted legislation to allow an earlier imposition date. On February 25, 2009, the
Governor signed such legislation, House Bill 3232 of 2009, authorizing the imposition of the
1% Capital Projects Tax in Allendale county effective May 1, 2009.
Note #6: Beaufort county imposed a 1% Transportation Tax for the period of June 1, 1999
through November 30, 2000. In November 2006, the citizens of Beaufort county voted to
impose a 1% Transportation Tax again; however, the vote was not timely certified and the
imposition of the tax was scheduled to be postponed until May 1, 2008 unless the General
Assembly enacted legislation to allow an earlier imposition date. On February 19, 2006, the
Governor signed such legislation, Senate Bill 273 of 2006, authorizing the imposition of the
1% Transportation Tax in Beaufort county effective May 1, 2007.
Note #7: Since May 1, 1996, Dillon county has imposed the 1% Local Option Tax. Effective
May 1, 2003 and ending September 30, 2008, Dillon county charged two local sales and use
taxes - the 1% Local Option Tax and the 1% Capital Projects Tax. Effective October 1, 2008,
Dillon county charges two local sales and use taxes - the 1% Local Option Tax and a 1%
School District Tax.
Note #8: Since July 1, 1991, Charleston county has imposed the 1% Local Option Tax.
Effective May 1, 2005, Charleston county charges two local sales and use taxes - the 1%
Local Option Tax and a ½ of 1% Transportation Tax. (Prior to the enactment of this
Transportation Tax, Charleston county was scheduled to impose another Transportation Tax at
the rate of ½ of 1% in May of 2003; however, this tax was not imposed as a result of a South
Carolina Supreme Court decision.)
Note #9: Since July 1, 1991, Hampton county has imposed the 1% Local Option Tax.
Effective May 1, 2003, Hampton county charges two local sales and use taxes - the 1% Local
Option Tax and the 1% Capital Projects Tax.
Note #10: Since May 1, 1997, Darlington county has imposed the 1% Local Option Tax.
Effective February 1, 2004, Darlington county charges two local sales and use taxes - the 1%
Local Option Tax and the 1% Darlington School Tax.
Note #11: Since May 1, 1997, Clarendon county has imposed the 1% Local Option Tax.
Effective June 1, 2004, Clarendon county charges two local sales and use taxes - the 1% Local
Option Tax and the 1% Clarendon Schools Tax. Sales of foods which are eligible to be
purchased with United States Department of Agriculture food stamps, and which are exempt
from the 1% Clarendon School Tax for the period of June 1, 2004 through June 30, 2005, are
subject to the 1% Clarendon School Tax effective July 1, 2005 (Senate Bill 426 of 2005).

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Note #12: The citizens of Aiken, Newberry, Orangeburg, and York counties have imposed
Capital Projects taxes and have subsequently voted to extend the Capital Projects taxes in their
counties. The “new” Capital Projects tax in Aiken, Newberry, Orangeburg, and York counties
began immediately upon the expiration of the “original” tax. The effective date listed on the
chart for each of these counties is the effective date of the “new” Capital Projects tax. In each
county, the “original” Capital Projects tax expired on the previous day.
Note #13: The application of either the State sales and use tax or the Catawba Tribal sales
and use tax for sales (deliveries) made on the Catawba Indian Reservation are determined by
the Catawba Indian Claims Settlement Act. The specific sales and use tax provisions can be
found in Code Section 27-16-130(H).
The Catawba Tribal sales and use tax expires on November 28, 2092.
The following chart provides a summary of these provisions:
Delivery on the
Reservation From:

Type Tax Applicable

Administered and
Collected By:

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

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

DOR

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

DOR

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

Catawba Indian Tribe

DOR

DOR

• Effective May 1, 2009, Lancaster county imposes a 1% local option sales and use tax and a
  1% Capital Projects Tax. York county imposes a 1% Capital Projects sales and use tax.
  These local taxes are in addition to the State sales and use tax. Therefore, effective May 1,
  2009, the tribal sales tax and the tribal use tax are imposed at the following rates:
  For sales (deliveries) made on the Reservation within Lancaster County:
  8% for general sales of tangible personal property
  9% for sales of accommodations
  2% for sales of unprepared foods
  For sales (deliveries) made on the Reservation within York county:
  7% for general sales of tangible personal property
  8% for sales of accommodations
  1% for sales of unprepared foods
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Please note that the rate for the tribal sales tax and the tribal use tax may increase or decrease
dependent upon whether the total state and local sales and use tax rates change in Lancaster
county or York county in the future.
For additional information, see SC Revenue Ruling #98-18.
Note #14: Maximum Tax Items: For sales (deliveries) made on the Reservation of tangible
personal property subject to the maximum tax provisions, the tribal sales and use tax rate is
5% in each county (since the state sales and use tax on maximum tax items is 5% and
maximum tax items are exempt from all local sales and use taxes), but the tax may not
exceed the maximum tax set forth in Code Section 12-36-2110.
Casual Excise Tax Items: Counties imposing a local sales and use tax that do not exempt
casual excise tax items will impose the local tax on sales and purchases of (a) trailers that can
be pulled by vehicles other than truck tractors, (b) sales of pole trailers and (c) sales of boat
motors not attached to a boat at the time of sale. Therefore, for sales (deliveries) of these
trailers and boat motors made on the Reservation within each county, the tribal sales and use
tax rate is 7% (since only the local option tax in Lancaster county exempts these casual
excise items).
“Grandfather Clause” Exemption for Certain Purchases By Construction Contractors: As a
result of any increase in the tribal sales and use tax rate due to the imposition of a new local
sales and use tax in either Lancaster county or York county, there is an exemption from the
portion of the tribal sales and use tax represented by the new local sales and use tax for
certain purchases by construction contractors. For more information about this partial
exemption, see the discussion on pages 8 and 9 of this information letter concerning
“Grandfather Clause” Exemption for Certain Purchases By Construction Contractors and
the Special Exemption Certificate.
Note #15: Since May 1, 1996, Lee county has imposed the 1% Local Option Tax. Effective
October 1, 2006, Lee county charges two local sales and use taxes - the 1% Local Option Tax
and the 1% Lee School Tax.
Note #16: Since May 1, 1994, Florence county has imposed the 1% Local Option Tax.
Effective May 1, 2007, Florence county charges two local sales and use taxes - the 1% Local
Option Tax and the 1% Capital Projects Tax.
Note #17: Since May 1, 2007, Horry county has imposed a 1% Capital Projects Tax.
Effective March 1, 2009, Horry county charges two local sales and use taxes - the 1% Capital
Projects Tax and the 1% Education Capital Improvements Tax.
Note #18: Since May 1, 1997, Berkeley county has imposed the 1% Local Option Tax.
Effective May 1, 2009, Berkeley county charges two local sales and use taxes - the 1% Local
Option Tax and the 1% Transportation Tax.
Note #19: Since July 1, 1996, Cherokee county has imposed the 1% School District Tax.
Effective May 1, 2009, Cherokee county charges two local sales and use taxes - the 1%
School District Tax and the 1% Local Option Tax.

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Note #20: Since May 1, 1992, Lancaster county has imposed the 1% Local Option Tax.
Effective May 1, 2009, Lancaster county charges two local sales and use taxes - the 1%
Local Option Tax and the 1% Capital Projects Tax.
Note #21: Since May 1, 1996, Sumter county has imposed the 1% Local Option Tax.
Effective May 1, 2009, Sumter county charges two local sales and use taxes - the 1% Local
Option Tax and the 1% Capital Projects Tax.
Please note that these charts only address the general local option taxes collected by the
Department of Revenue on behalf of the counties, municipalities, school districts, and the
Catawba Indian tribal government. They do not address the local taxes on sales of
accommodations or on sales of prepared meals that are collected directly by the counties
or municipalities.

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