What local sales and use taxes and Catawba tribal tax rates does South Carolina collect effective January 1, 2012 (per SC IL #12-1)?

Plain-English summary

This Information Letter is a set of three reference charts, effective January 1, 2012, showing the local sales and use taxes the South Carolina Department of Revenue collects and which exemptions apply to each. The charts cover general local taxes collected on behalf of counties, municipalities, and school districts (Chart 1), the Catawba Indian tribal tax (Chart 2), and the municipal local tourism-development sales tax/fee (Chart 3). They do not cover local accommodations taxes or prepared-meals (hospitality) taxes, which counties and municipalities collect directly. This letter supersedes SC Information Letter #11-18.

The January 1, 2012 edition reflects that York County re-imposed its 1% Capital Projects Tax: the prior 1% Capital Projects Tax expired December 31, 2011 and the new one became effective the next day, January 1, 2012. The new York County 1% Capital Projects Tax exempts sales of unprepared food effective January 1, 2012.

For the Catawba Indian Reservation, which spans Lancaster and York Counties, the tribal sales and use tax rates are:

• Lancaster County portion: 8% general tangible personal property, 9% accommodations, 2% unprepared food.
• York County portion: 7% general tangible personal property, 8% accommodations, 0% unprepared food.

For maximum-tax items (such as vehicles), the tribal rate is 5% in each county, capped at the § 12-36-2110 maximum tax. The tribal sales tax is collected by the Department; the tribal use tax is collected by the Catawba Indian Tribe.

What this means for you

If you are a retailer collecting local tax

Use the chart for the specific county to confirm which local taxes apply and which exemptions (state exemptions, maximum-tax items, casual excise items, food stamp purchases, unprepared food) apply to each.

If you sell on or deliver to the Catawba Indian Reservation

Apply the tribal rates above rather than the ordinary county local taxes; the specific rate depends on whether the delivery is in the Lancaster or York County portion and on the type of item sold.

Common questions

Q: What changed with this edition?
A: York County re-imposed its 1% Capital Projects Tax — the prior tax expired December 31, 2011 and a new 1% Capital Projects Tax (which exempts unprepared food) took effect January 1, 2012.

Q: What are the Catawba tribal tax rates?
A: In the Lancaster County portion, 8% general TPP / 9% accommodations / 2% unprepared food; in the York County portion, 7% / 8% / 0%. Maximum-tax items are taxed at 5% in each county, capped at the state maximum tax.

Q: Do these charts cover accommodations and prepared-meals taxes?
A: No. Those local taxes are collected directly by the counties or municipalities, not by the Department, and are outside these charts.

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL12-1.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org
SC INFORMATION LETTER #12-1
SUBJECT:

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

EFFECTIVE DATE: January 1, 2012
SUPERSEDES:

SC Information Letter #11-18 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. 2010)
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 tax 1 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 that York county has “re-imposed” its 1%
Capital Projects Tax. The prior 1% Capital Projects Tax imposed in York county expired
on December 31, 2011 and the new Capital Projects Tax became effective the next day on
January 1, 2012. In addition, the new 1% Capital Projects Tax in York county exempts
sales of unprepared food effective January 1, 2012.
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. 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.

1

CHART 1: COUNTY SALES AND USE TAXES 3
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

Ed. Capital Imp.
3/1/11

Yes

Yes

No

Yes

Yes

Yes

Cherokee School
7/1/96

Yes

Yes

No

Yes

Yes

Yes

Local Option

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

No

Yes

1& 8

5/1/05

Cherokee

1 & 19

5/1/09
Chester

Local Option
5/1/94
Capital Projects

1&3

5/1/09

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

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

Chesterfield

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

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Local Option

Yes

Yes

Yes

Yes

No

Yes

5/1/97
Clarendon
Schools

Yes

Yes

No

Yes

Yes - until
6/30/05

Yes

Clarendon

6/1/04

NOTE

1&4

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
2/1/04

Yes

Yes

No

Yes

Yes

Yes

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

School District

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

Dillon

1 & 10

10/1/08
Transportation
Dorchester

Edgefield

5/1/05
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

Yes

Yes

No

Yes

No

Yes

1 & 16

5/1/07
Greenwood

Capital Projects
5/1/07

Yes

Yes

No

Yes

No

Yes

1

Hampton

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

1&9

Horry

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

3

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

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

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Kershaw

Local Option
5/1/97

Yes

Yes

Yes

Yes

No

Yes

Lancaster

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Capital Projects
5/1/09

Yes

Yes

No

Yes

No

Yes

Laurens

Local Option
5/1/99

Yes

Yes

Yes

Yes

No

Yes

Lee

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

1 & 15

Lexington

Lexington
Schools
3/1/05

Yes

Yes

No

Yes

Yes

Yes

1

Jasper

NOTE

1&2

1 & 20

Marion

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Marlboro

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

McCormick

Local Option
7/1/91

Yes

Yes

Yes

Yes

No

Yes

Newberry

Capital Projects
4/1/05

Yes

Yes

No

Yes

No

Yes

1 &12

Orangeburg

Capital
Projects
4/1/06

Yes

Yes

No

Yes

No

Yes

1 & 12

Pickens

Local Option
5/1/95

Yes

Yes

Yes

Yes

No

Yes

Richland

Local Option
5/1/05

Yes

Yes

Yes

Yes

No

Yes

Saluda

Local Option
5/1/92

Yes

Yes

Yes

Yes

No

Yes

Sumter

Local Option
5/1/96

Yes

Yes

Yes

Yes

No

Yes

Capital Projects

Yes

Yes

No

Yes

No

Yes

Yes

Yes

Yes

Yes

No

Yes

1 & 21

5/1/09

Williamsburg

Local Option
5/1/97

4

SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

York

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

Capital Projects
1/1/12

Yes

Yes

No

Yes

Yes

Yes

1, 12 &
22

CHART 2: CATAWBA INDIAN RESERVATION TRIBAL TAX 4
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 TAXES 5
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

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

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.
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.

6

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 7 of the 20
school district taxes authorized by the General Assembly are being imposed.
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
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. 378 of 2004

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

6
7

County

Act Authorizing Tax

Allendale
Berkeley
Colleton
Dillon
Edgefield
Horry

Act No. 371 of 2008
Act No. 178 of 1999
Act No. 462 of 1998
Act No. 197 of 2005 7
Act No. 365 of 2004
Act No. 371 of 2004

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

Lee
Marlboro
McCormick
Newberry
Richland
Pickens
Union

Act No. 426 of 2006 8
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 was 7% through April 30,
2009. Effective May 1, 2009, the combined sales and use tax rate for Lancaster County is 8%
and York County remains 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 of this information letter.
Tourism Development Tax: The local tourism development sales and use tax is authorized
under Code Section 4-10-910 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 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 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 #09-9. 9

TYPES OF EXEMPTIONS:
State Exemptions - 12-36-2120: Except for sales of unprepared food exempt from the 6% state
sales and use tax under Code Section 12-36-2120(75), 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.
8

The 1% Lee county School District Tax was imposed from October 1, 2006 to September 30, 2011.
For a detailed discussion of this matter, see also SC Revenue Ruling #05-16. However, please note that SC Revenue
Ruling #09-9 modifies SC Revenue Ruling #05-16 since at the time it was issued all local sales and use taxes were
administered and collected on a county-wide basis. With the enactment of the Tourism Development Tax, the principles
of SC Revenue Ruling #05-16 also apply to local sales and use taxes imposed on a municipal-wide or other basis, such
as the Tourism Development Tax.
9

8

Note: Sales of unprepared food are only exempt from a local sales and use tax if the local sales
and use tax law specifically exempts such sales. For information on the exemption for sales of
unprepared food from local sales and use taxes, see the discussion below entitled “Exemption for
Certain Food Sales.”
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.
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

9

*

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

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.
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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.
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.

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Note #8: Since July 1, 1991, Charleston County has imposed the 1% Local Option Tax.
Effective May 1, 2005 and ending February 28, 2011, Charleston county charged 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.) Effective March 1, 2011, Charleston
county charges three local sales and use taxes - the 1% Local Option Tax, a ½ of 1%
Transportation Tax, and the 1% Education Capital Improvement Tax.
Note #9: Since July 1, 1991, Hampton County has imposed the 1% Local Option Tax. Hampton
County previously imposed a 1% Capital Projects Tax for the period of May 1, 2003 through
December 31, 2009.
Note #10: Since May 1, 1997, Darlington County has imposed the 1% Local Option Tax.
Effective February 1, 2004, Darlington county charges two local sales and use taxes - the 1%
Local Option Tax and the 1% Darlington School Tax.
Note #11: Since May 1, 1997, Clarendon County has imposed the 1% Local Option Tax.
Effective June 1, 2004, Clarendon county charges two local sales and use taxes - the 1% Local
Option Tax and the 1% Clarendon Schools Tax. Sales of foods which are eligible to be
purchased with United States Department of Agriculture food stamps, and which are exempt
from the 1% Clarendon School Tax for the period of June 1, 2004 through June 30, 2005, are
subject to the 1% Clarendon School Tax effective July 1, 2005 (Senate Bill 426 of 2005).
Note #12: The citizens of Aiken, Newberry, Orangeburg, and York counties have imposed
Capital Projects taxes and have subsequently voted on one or more occasions to extend the
Capital Projects taxes in their counties. In each case, the “re-imposed” Capital Projects tax began
immediately upon the expiration of the “original” or ”prior” Capital Projects tax. The effective
date listed on the chart for each of these counties is the effective date of the most current Capital
Projects tax.
However, as the result of approval of new referendums in November, 2010, Aiken, Newberry
and Orangeburg counties are again scheduled to re-impose a Capital Projects tax the day after the
current tax expires. When each new Capital Projects tax is re-imposed, the Department will
update this information letter to advise taxpayers of the date the new tax will become effective.
The date the new tax becomes effective is important since sales of unprepared food will be
exempt from the Capital Projects taxes in Aiken, Newberry and Orangeburg when the new
Capital Projects tax is re-imposed.
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.

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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

• 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 January 1, 2012, 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
  0% for sales of unprepared foods 10
  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.
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York county “re-imposed” its 1% Capital Projects Tax effective January 1, 2012. The prior 1% Capital Projects
Tax imposed in York county expired on December 31, 2011 and the new Capital Projects Tax became effective the
next day on January 1, 2012. In addition, the new 1% Capital Projects Tax in York county exempts sales of
unprepared food effective January 1, 2012.

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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. Lee County
previously imposed a 1% School District Tax for the period of October 1, 2006 through
September 30, 2011.
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.
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.
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Note #22: York county has “re-imposed” its 1% Capital Projects Tax. The prior 1% Capital
Projects Tax imposed in York county expired on December 31, 2011 and the new Capital
Projects Tax became effective the next day on January 1, 2012. In addition, since the referendum
was held after June 3, 2009, the new 1% Capital Projects Tax in York county exempts sales of
unprepared food effective January 1, 2012 (See Act 49 of 2009).
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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