When is South Carolina's 2018 sales tax holiday and what items are exempt (per SC IL #18-5)?

Plain-English summary

South Carolina's 2018 sales tax holiday ran from 12:01 a.m. Friday, August 3, 2018 through midnight Sunday, August 5, 2018. Under S.C. Code § 12-36-2120(57), the holiday is an annual three-day event covering the first Friday in August through the following Sunday.

During the holiday, neither the 6% state sales and use tax nor any applicable local sales and use tax applies to a defined list of items: clothing and clothing accessories (hats, scarves, hosiery, handbags), footwear, school supplies (pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, calculators), computers, printers and printer supplies, computer software, and certain bed and bath items (bath washcloths, blankets, bedspreads, bed linens, sheet sets, comforter sets, bath towels, shower curtains, bath rugs and mats, pillows, and pillowcases).

The holiday does not apply to jewelry, cosmetics, eyewear, wallets, watches, furniture, rental of clothing or footwear, items for use in a business, or items placed on layaway or a similar deferred-payment plan. The Department points to two detailed advisory opinions for examples and FAQs: SC Revenue Ruling #10-7 (lists of exempt and nonexempt items) and SC Revenue Ruling #10-8 (a question-and-answer document).

What this means for you

If you are a retailer

Do not collect state or local sales tax on the exempt categories during the August 3-5, 2018 weekend, and continue to tax excluded items (jewelry, cosmetics, furniture, business-use items, layaway, etc.). See SC Revenue Rulings #10-7 and #10-8 for line-item examples.

If you are a shopper

Clothing, footwear, school supplies, computers, and many bed/bath items are tax-free that weekend; most other goods are not.

Common questions

Q: What are the 2018 holiday dates?
A: Friday, August 3, 2018 (12:01 a.m.) through Sunday, August 5, 2018 (midnight).

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

Q: What is not exempt?
A: Jewelry, cosmetics, eyewear, wallets, watches, furniture, rental of clothing or footwear, items for business use, and layaway items remain taxable.

Subject

Sales Tax Holiday Dates for 2018

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL18-5.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC INFORMATION LETTER #18-5

SUBJECT:

Sales Tax Holiday Dates for 2018

DATE:

June 18, 2018

REFERENCE:

S.C. Code Ann. Section 12-36-2120(57) (2014)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
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.

Code Section 12-36-2120(57) provides for an annual three-day sales tax holiday for sales taking
place from 12:01 a.m. on the first Friday in August and ending at midnight on the following Sunday.
Accordingly, the 2018 sales tax holiday weekend will begin Friday, August 3, 2018 at 12:01 a.m. and
end Sunday, August 5, 2018 at midnight.
During this time, the 6% state sales and use tax, and any applicable local sales and use tax, will not
be imposed on clothing, clothing accessories (e.g., hats, scarves, hosiery, and handbags), footwear,
school supplies (e.g., pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, and
calculators), computers, printers and printer supplies, computer software, and bath wash cloths,
blankets, bed spreads, bed linens, sheet sets, comforter sets, bath towels, shower curtains, bath rugs
and mats, pillows, and pillow cases. The sales tax holiday, however, does not apply to sales of
jewelry, cosmetics, eyewear, wallets, watches, furniture, rental of clothing or footwear, items for use
in a business, or items placed on layaway or similar deferred payment and delivery plans.
The Department has published two advisory opinions concerning the sales tax holiday; each is
available on our website at www.dor.sc.gov. These documents are:

1. SC Revenue Ruling #10-7 – a detailed list of examples of exempt items during the sales tax
   holiday and a list of examples of nonexempt items.
2. SC Revenue Ruling #10-8 – a “question and answer” document addressing frequently asked sales
   tax holiday questions.
   If you have any questions, you may call the Department of Revenue at (803) 898-5000 or email the
   Department at [email protected].

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