When does South Carolina's Infrastructure Maintenance Fee apply to a vehicle instead of sales tax, and how are watercraft motors taxed after July 1, 2022?

Plain-English summary

When you buy a vehicle or other item that must be titled or registered with the SC Department of Motor Vehicles (SCDMV), South Carolina charges a 5% Infrastructure Maintenance Fee (IMF) — capped at $500 — instead of sales tax, and you pay it to the SCDMV rather than to the Department of Revenue. SC Information Letter #22-17 updates the Department's earlier guidance (SC Information Letter #17-10) on the Infrastructure and Economic Development Reform Act, the 2017 law that created the IMF effective July 1, 2017 to fund road and infrastructure work.

The two law changes this letter adds:

• IMF now applies to first titling and to lessees (effective May 10, 2021). Code Section 56-3-627 was amended so the IMF is triggered by the first titling of a vehicle, trailer, semitrailer, or other registrable item — not just first registration — and applies to a lessee as well as an owner.
• Watercraft (boat) motors are now maximum-tax items (effective July 1, 2022). Sold at retail, they are taxed at 5% but no more than $500 and are exempt from all local sales and use taxes the Department collects.

How the fee vs. tax works (the general rule):

• If the item must be registered and is registered/titled with SCDMV → the IMF applies, remitted to SCDMV (5% up to $500; a flat $250 when an owner re-registers in South Carolina an item first registered out of state).
• If the item is not required to be registered with SCDMV → the sales tax applies, remitted to the Department (e.g., a utility trailer for personal use).
• The casual excise tax no longer applies to motor vehicles and motorcycles — it now applies only to aircraft, boats, and boat motors.

The three charts walk through the fee/tax, rate, and cap for each item type across three situations: (Chart 1) a South Carolina resident buying and registering in-state; (Chart 2) a nonresident buying in South Carolina to register elsewhere (including active-duty military exemptions and the nonresident "lesser-of" rule under § 12-36-930); and (Chart 3) items previously registered outside South Carolina.

What this means for you

For most car, motorcycle, RV, and boat-motor purchases from an SCDMV-licensed dealer, you will not pay the Department's sales tax at all — you pay the SCDMV's Infrastructure Maintenance Fee (5% up to $500) when the item is titled/registered, and the sale is exempt from sales tax under § 12-36-2120(83). Watch the split: the IMF goes to SCDMV, while sales tax on non-registrable items (and some nonresident sales) goes to the Department of Revenue. Since July 1, 2022, a separately sold boat motor is a maximum-tax item capped at $500 and free of local tax. If you are a dealer or nonresident buyer, use the letter's charts — they spell out exactly which of the fee, sales tax, or casual excise tax applies and where to remit it.

Common questions

Q: Do I pay sales tax or the Infrastructure Maintenance Fee when I buy a car in South Carolina?
A: For a vehicle that must be titled/registered with SCDMV, you pay the 5% Infrastructure Maintenance Fee (capped at $500) to the SCDMV, and the sale is exempt from sales tax. Sales tax applies instead only to items that don't have to be registered.

Q: How is a boat motor taxed after July 1, 2022?
A: A separately sold watercraft (boat) motor became a maximum-tax item — taxed at 5% but no more than $500 — and is exempt from all local sales and use taxes.

Q: Does the casual excise tax still apply to cars?
A: No. The casual excise tax no longer applies to motor vehicles and motorcycles; it now applies only to aircraft, boats, and boat motors. The IMF is still paid at registration.

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL22-17.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE

300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC INFORMATION LETTER #22-17

SUBJECT:

South Carolina Infrastructure and Economic Development Reform Act

EFFECTIVE DATE: May 10, 2021, for IMF Titling and Lessee Issues; July 1, 2022, for Sales
and Use Tax and Casual Excise Tax Issues Involving Boat Motors; and
July 1, 2017 for All Other Issues Except as Noted for Mopeds
SUPERSEDES:

SC Information Letter #17-10 and all previous advisory opinions and any
oral directives in conflict herewith.

REFERENCE:

S.C. Code Ann. Section 56-3-627 (Supp. 2021)
Chapter 36 of Title 12 (2014, Supp. 2021)

AUTHORITY:

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

PURPOSE
The purpose of this Information Letter is to update the guidance provided in SC Information
Letter #17-10 (Revised) to reflect the following law changes:

1. Infrastructure Maintenance Fee – Titling: Code Section 56-3-627 was amended, effective
   May 10, 2021, to also impose the infrastructure maintenance fee on the first titling of
   each vehicle, trailer, semitrailer, or other item required to be registered pursuant to
   Chapter 3 of Title 56. Previously, the infrastructure maintenance fee only applied to first
   registration of a vehicle, trailer, semitrailer, or other item with the SC Department of
   Motor Vehicles (“SCDMV”). The infrastructure maintenance fee statute was also
   amended to apply, in addition to an owner, to a lessee first titling or registering a vehicle,
   trailer, semitrailer, or other item with SCDMV.

1

2. Maximum Tax – Watercraft Motors: Code Section 12-36-2110(A), concerning the sales of
items subject to a maximum sales and use tax and maximum casual excise tax, has been
amended to add watercraft motors (e.g., boat motors). The sales of watercraft motors,
effective July 1, 2022, are subject to the sales and use tax and the casual excise tax at a
rate of 5%, but no more than $500. With this amendment, sales of watercraft motors are
exempt, effective July 1, 2022, from all local sales and use taxes administered and
collected by the South Carolina Department of Revenue (“SCDOR”).
OVERVIEW OF NEW INFRASTRUCTURE MAINTENANCE FEE
In 2017, the General Assembly enacted the South Carolina Infrastructure and Economic
Development Reform Act to address the needs of South Carolina’s transportation infrastructure
system and to set the state on the path towards a first-class road network. As part of its effort to
improve the state’s transportation infrastructure network, the infrastructure maintenance fee was
enacted and became effective July 1, 2017.
Registration in South Carolina upon Purchase or Lease: The owner or lessee of each vehicle,
trailer, semitrailer, or other item that must be registered pursuant to Chapter 3 of Title 56 must
pay the infrastructure maintenance fee upon first titling or registering the vehicle, trailer,
semitrailer, or other item with the SCDMV. The infrastructure maintenance fee is remitted to
SCDMV and is imposed at a rate of 5% of the gross proceeds of the sale, not to exceed $500, for
a sale by a licensed SCDMV dealer or 5% of the vehicle’s fair market value, not to exceed $500,
for a sale by a person who is not a SCDMV licensed dealer.
Sales that are subject to the new infrastructure maintenance fee are exempt from the state and
local sales and use taxes.
If a dealer has a South Carolina retail license or offers to license, title, or register the item, then
the dealer must collect the infrastructure maintenance fee and remit it to the SCDMV. Generally,
based on information from the SCDMV, a dealer is a person in the business of selling motor
vehicles (e.g., cars, trucks, motorcycles, and motor homes) that is licensed with SCDMV. A
dealer also includes, a person licensed with SCDMV in the business of selling mopeds.
Registration in South Carolina after First Registration in Another State: The infrastructure
maintenance fee is also imposed when a vehicle, trailer, semi-trailer, or other item required to be
registered under Chapter 3 of Title 56 was first registered in another state by the owner and is
subsequently registered for the first time in South Carolina by the same owner. This
infrastructure maintenance fee is $250.
CHARTS FOR DEALERS, OTHER RETAILERS, AND NONRETAILERS
The SCDOR, in coordination with the SCDMV, is updating the charts first issued in SC
Information Letter #17-10 to assist dealers and other retailers in determining: (1) whether the
sale is subject to the new infrastructure maintenance fee or the sales and use tax; (2) whether to
remit the infrastructure maintenance fee to the SCDMV or remit the sales and use tax on sales to
nonresidents to the SCDMV or the SCDOR; and (3) the rate of the infrastructure maintenance
fee or the sales and use tax.
2

Attached are the three updated charts that address the following categories of sales, with each
chart providing information concerning the type of vehicle, the fee or tax that applies to the
transaction, the fee or tax rate, and the maximum fee or tax (if applicable):
•

Chart 1: Motor Vehicles and Other Items Purchased and Registered or Titled in South
Carolina by a South Carolina Resident and Other Items Purchased by a South Carolina
Resident

•

Chart 2: Motor Vehicles and Other Items Purchased in South Carolina by a Nonresident
to be Registered, Titled, or Used Outside of South Carolina

•

Chart 3: Motor Vehicles and Other Items Previously Registered Outside of South
Carolina

Chart 1 and Chart 2 address three types of transactions – (1) purchases from licensed SCDOR
retailers who are also licensed SCDMV dealers (e.g., a motor vehicle dealership); (2) purchases
from licensed SCDOR retailers who are not licensed SCDMV dealers (e.g., a retailer selling
motor vehicles from its delivery fleet); and (3) purchases from nonretailers (e.g., a casual sale by
an individual).
GENERAL SUMMARY
While these charts provide information about many different types of vehicles and other items, it
is not an all-inclusive list of transactions. The application of the new infrastructure maintenance
fee or the sales and use tax can generally be summarized as follows (unless the transaction is
otherwise exempt):
General Rule
•

If the vehicle is required to be registered and is registered or titled with the SCDMV, the
Infrastructure Maintenance Fee applies and is remitted to the SCDMV.

•

If the vehicle is of a type that is not required to be registered or titled with the SCDMV,
then the sales tax would apply and is remitted to the SCDOR (e.g., a utility trailer for
personal use).

Sales to Nonresidents
•

If the vehicle is subject to the maximum tax provisions of Code Section 12-362110(A)(1) (e.g., motor vehicle, motorcycle, recreational vehicle), is of the type that
would be registered in South Carolina if not for it being registered out-of-state, and is
sold by a SCDMV licensed dealer to a nonresident who will register it in his home state,
then the sales tax applies and is remitted to the SCDMV. (Note: The sales tax imposed on
such sales to a nonresident by a person who is not a licensed SCDMV dealer is remitted
to the SCDOR.)

3

However, based on Code Sections 12-36-930 and 12-36-2120, the sales tax is not due if
(1) the purchaser’s state of residence does not impose a sales tax on motor vehicles,
trailers, semitrailers, or pole trailers, (2) the purchaser’s state of residence does not allow
a credit against his use tax for sales tax paid on such items in South Carolina, or (3) the
sale is otherwise exempt from the sales tax.
•

If the vehicle is not subject to the maximum tax provisions of Code Section 12-362110(A)(1) and is sold to a nonresident who will register it in his home state, then the
sales tax applies and it is remitted to the SCDOR.

Casual Excise Tax
•

The casual excise tax no longer applies to motor vehicles and motorcycles. The casual
excise tax only applies to aircraft, boats, and boat motors. The infrastructure maintenance
fee, however, is paid at the time of registration.

The attached charts provide the applicable rate for the infrastructure maintenance fee or the sales
and use tax for each of the above scenarios and also provide general information, including
information on exemptions for active duty military members.
ADDITIONAL INFORMATION
If you have questions regarding the infrastructure maintenance fee remitted to the SCDMV, or
sales taxes remitted by licensed SCDMV dealers to the SCDMV on sales to nonresidents, please
contact the SCDMV at [email protected].
If you have questions regarding all other sales and use tax matters, please contact the SCDOR at
(803) 898-5000 or [email protected].

4

ITEMS SUBJECT TO SALES/USE TAX
OR INFRASTRUCTURE MAINTENANCE FEE (IMF)
Effective May 10, 2021 for IMF Titling/Lessee Issues
Effective July 1, 2022 for Boat Motor Sales Tax Issues
Effective July 1, 2017 for All Other Issues, Except as Noted For Mopeds
CHART 1:

ITEM PURCHASED

Motor Vehicle
(Including Low Speed Vehicles &
State/County/Local Government
Vehicles with a plate class of SG,
CG, MG, or RG)
(Maximum Sales Tax Item)

MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND TITLED OR
REGISTERED IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT
AND OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV

PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)

IMF Remitted by
Dealer to DMV
5% up to $500

No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)

Motorcycle
(Maximum Sales Tax Item)

IMF Remitted by
Dealer to DMV
5% up to $500

US Government Vehicle

Exempt

No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
Exempt
(See S.C. Code § 12-36-2120(2))

5

PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500

No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500

CHART 1:

ITEM PURCHASED

MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND TITLED OR
REGISTERED IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT
AND OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV

PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)

Motor Homes
(Maximum Sales Tax Item)

Moped
(Purchased on or after
November 19, 2018 See 2017 Act No. 89)
(Maximum Sales Tax Item)

IMF Remitted by
Dealer to DMV
5% up to $500

No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)

IMF Remitted by
Dealer to DMV
5% up to $500

No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)

6

PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)

No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500

No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500

CHART 1:

ITEM PURCHASED

MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND TITLED OR
REGISTERED IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT
AND OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV

PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)

Trailer or Semitrailer,
Pulled by a Truck Tractor
(Maximum Sales Tax Item)

No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)

Pole Trailer

No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)
No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83) or
S.C. Code § 12-36-2120(16)

Utility Trailers, Boat Trailers, and
Farm Trailers - Business Use

No IMF Collected by Retailer
IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)

7

PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)
No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500

No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500

No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller
IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500

CHART 1:

MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND TITLED OR
REGISTERED IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT
AND OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV

PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)

Utility Trailers, Boat Trailers, and
Farm Trailers - Personal Use

Sales Tax Remitted by Retailer to DOR
6% + Local (Unless Exempt Under
S.C. Code § 12-36-2120(16))

No Sales Tax, Casual Excise Tax, or IMF
Due on Transaction

Horse Trailer
(Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
5% up to $500

No Sales Tax, Casual Excise Tax, or IMF
Due on Transaction

ITEM PURCHASED

Recreational Vehicles
Pulled by a Motor Vehicle
(Tent Campers, Travel Trailers,
Park Models, Park Trailers,
and Fifth Wheels)
(Maximum Sales Tax Item)
Dirt Bikes (Off Road)
(Maximum Sales Tax Item)

No Sales Tax Due Since Transaction is Exempt Under
S.C. Code § 12-36-2120(83)
No IMF Collected by Retailer

No Sales Tax or Casual Excise Tax
Due on Transaction and
No IMF Collected by Seller

IMF Remitted by Buyer to DMV Upon Registration
5% up to $500
(However, if Payment of a Sales Tax
can be Documented, No IMF is Due)

IMF Remitted by Buyer to
DMV Upon Registration
5% up to $500

Sales Tax Remitted by Retailer to DOR
5% up to $500

No Sales Tax, Casual Excise Tax, or IMF
Due on Transaction
No Sales Tax Collected by Seller

Aircraft
(Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
5% up to $500

8

No Casual Excise Tax Due
(Casual Excise Tax Only Applies to
Airplanes; and Airplanes are Not Registered,
Titled, or Licensed by South Carolina)

CHART 1:

ITEM PURCHASED

Boat or Boat with Motor
Permanently Attached
at Time of Sale
(Maximum Sales Tax Item)

Boat Motor
(Not permanently attached
to boat at time of sale)
(Maximum Sales Tax Item)

Golf Carts, ATVs, and Go-Carts
Professional Race Cars Towed
to or from a Race Track
Single Family Modular Home
(Ch. 43, Title 23)
Musical Instrument/Office
Equipment Purchased by IRC §
501(c)(3) Religious Organization
(Maximum Sales Tax Item)
Manufactured Home
(Maximum Sales Tax Item)

MOTOR VEHICLES AND OTHER ITEMS PURCHASED AND TITLED OR
REGISTERED IN SOUTH CAROLINA BY A SOUTH CAROLINA RESIDENT
AND OTHER ITEMS PURCHASED BY A SOUTH CAROLINA RESIDENT
PURCHASED FROM A
LICENSED RETAILER
WITH SCDOR WHO IS A
LICENSED DEALER WITH
SCDMV

PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A NONRETAILER
(A person not in the business of selling
tangible personal property at retail - e.g., a
casual sale by an individual)
No Sales Tax Collected by Seller

Sales Tax Remitted by Retailer to DOR
5% up to $500

Buyer Remits Casual Excise Tax to DOR or
DNR Upon Issuance of Certificate of Title, or
Other Proof of Ownership
5% up to $500
No Sales Tax Collected by Seller

Sales Tax Remitted by Retailer to DOR
5% up to $500

Buyer Remits Casual Excise Tax to DOR or
DNR Upon Issuance of Certificate of Title, or
Other Proof of Ownership
5% up to $500

Sales Tax Remitted by Retailer to DOR
6% + Local

No Sales or Casual Excise Tax
Due on Transaction

Sales Tax Remitted by Retailer to DOR
6% + Local
Sales Tax Remitted by Retailer to DOR
6% + Local

No Sales Tax, Casual Excise Tax, or
IMF Due on Transaction
No Sales or Casual Excise Tax
Due on Transaction

Sales Tax Remitted by Retailer to DOR
5% up to $300
(See S.C. Code § 12-36-2110(C))

No Sales or Casual Excise Tax
Due on Transaction

Sales Tax Remitted by Retailer to DOR
(See S.C. Code § 12-36-2110(B))

No Sales or Casual Excise Tax
Due on Transaction

(See General Information for Chart 1 on the Following Page)

9

CHART 1 GENERAL INFORMATION
Maximum Tax Items (5% up to $500) under S.C. Code § 12-36-2110(A)
• Motor Vehicle
• Motorcycle
• Trailer or Semitrailer, capable
of being pulled only by a truck
tractor
• Recreational Vehicles including
Tent Campers, Travel Trailers,
Park Models, Park Trailers,
Motor Homes, and Fifth Wheels

• Horse Trailer
• Fire Safety Education Trailer
• Self-Propelled Light
Construction Equipment with
compatible attachments limited
to a maximum of 160 net engine
horsepower

• Boat; Boat Motor
• Aircraft, including
unassembled aircraft to be
assembled by the purchaser,
but not items to be added to
the unassembled aircraft

Sales and Use Tax Exemptions
Chart 1 provides the tax rate and maximum tax (if applicable) for various sales and use tax transactions. Notwithstanding the above, some sales may be exempt
under S.C. Code § 12-36-2120 (e.g., farm trailers used in planting, cultivating, and harvesting of farm crops - S.C. Code § 12-36-2120(16)) and therefore not
subject to the tax.

Purchases by Nonresidents for First Registration or Use in South Carolina
Chart 1 concerns motor vehicles and other items that are purchased and registered in South Carolina by South Carolina residents. However, Chart 1 also applies
to motor vehicles and other items purchased by nonresidents that are first registered in South Carolina with the SC Department of Motor Vehicles ("SCDMV")
(i.e., subject to the Infrastructure Maintenance Fee) or are purchased by nonresidents for use in South Carolina (sales or use tax), unless otherwise exempt.

Out-of-State Delivery by a Retailer or by a Common Carrier on Behalf of a Retailer
Notwithstanding the above, a sale is exempt from state and local sales and use tax if the seller, by contract of sale, is obligated either (1) to deliver the item to the
buyer (or an agent or donee of the buyer) at a point outside of South Carolina or (2) to deliver the item to a common carrier or the U.S. mail for transportation to
the buyer (or an agent or donee of the buyer) at a point outside of South Carolina. See S.C. Code § 12-36-2120(36).

Active Duty Military Members
See Charts 2 and 3 for information on the taxes and fees imposed on active duty military members, if any.

10

ITEMS SUBJECT TO SALES/USE TAX
OR INFRASTRUCTURE MAINTENANCE FEE (IMF)

• Effective July 1, 2017 -

CHART 2:

ITEM PURCHASED

Motor Vehicle
(Maximum Sales Tax Item)

Motor Homes
(Maximum Sales Tax Item)

Motorcycle
(Maximum Sales Tax Item)

MOTOR VEHICLES AND OTHER ITEMS PURCHASED IN
SOUTH CAROLINA BY A NONRESIDENT TO BE TITLED OR
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

Sales Tax Remitted by Dealer to DMV

Sales Tax Remitted by Retailer to DOR

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500

See Notes 1 and 2 for exceptions

See Note 1 for exceptions

Sales Tax Remitted by Dealer to DMV

Sales Tax Remitted by Retailer to DOR

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500

See Notes 1 and 2 for exceptions

See Note 1 for exceptions

Sales Tax Remitted by Dealer to DMV

Sales Tax Remitted by Retailer to DOR

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500

See Notes 1 and 2 for exceptions

See Note 1 for exceptions

11

PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

CHART 2:

MOTOR VEHICLES AND OTHER ITEMS PURCHASED IN
SOUTH CAROLINA BY A NONRESIDENT TO BE TITLED OR
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA

ITEM PURCHASED

PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)

Dirt Bikes (Off Road)
(Maximum Sales Tax Item)
(Not of a Type Subject to
Registration under
S.C. Code § 56-3-627)

Sales Tax Remitted by Dealer to DOR
5% up to $500

Sales Tax Remitted by Retailer to DOR
5% up to $500

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

Sales Tax Remitted by Dealer to DMV

Sales Tax Remitted by Retailer to DOR

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500

See Notes 1 and 2 for exceptions

See Notes 1 and 2 for exceptions

Moped
(Purchased on or after
November 19, 2018 See 2017 Act No. 89)
(Maximum Sales Tax Item)

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

Sales Tax Remitted by Retailer to DOR

Recreational Vehicles
Pulled by a Motor Vehicle
(Tent Campers, Travel Trailers,
Park Models, Park Trailers,
and Fifth Wheels)
(Maximum Sales Tax Item)

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

See Notes 1 and 2 for exceptions
Sales Tax Remitted by Retailer to DOR

Trailer or Semitrailer of a Type
Required to be Licensed and
Registered
(Maximum Sales Tax Item)

Lesser of sales tax imposed in the
purchaser’s state of residence or
5% sales tax, but no more than $500
See Notes 1 and 2 for exceptions

12

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

CHART 2:

ITEM PURCHASED

MOTOR VEHICLES AND OTHER ITEMS PURCHASED IN
SOUTH CAROLINA BY A NONRESIDENT TO BE TITLED OR
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)

Sales Tax Remitted by Retailer to DOR
Trailer, Semitrailer, or Pole Trailer of
a Type Required to be Licensed and
Registered
(Not a Maximum Sales Tax Item)

Lesser of sales tax imposed in the
purchaser’s state of residence or
6% + Local

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

See Notes 1 and 2 for exceptions

Trailer or Semitrailer of a Type Not
Required to be Licensed and
Registered
(Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
5% up to $500

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

Trailer or Semitrailer of a Type
Not Required to be Licensed and
Registered
(Not a Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
6% + Local

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

Nonresident Military
Motor Vehicles (excluding trucks)
and Motorcycles Purchased by a NonResident Member of the Military
Located in South Carolina by Reason
of Orders of the US Armed Forces
(e.g., car, minivan, SUV, motorcycle)
(Personal Use Only)

No IMF or Sales Tax
Remitted on Transaction

No IMF or Sales Tax
Remitted on Transaction

Exempt under S.C. Code §§
12-36-2120(25) & 56-3-627(H)
regardless of state of registration

Exempt under S.C. Code §§
12-36-2120(25) & 56-3-627(H) regardless
of state of registration

13

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

CHART 2:

ITEM PURCHASED

MOTOR VEHICLES AND OTHER ITEMS PURCHASED IN
SOUTH CAROLINA BY A NONRESIDENT TO BE TITLED OR
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)

Nonresident Military and Spouse
No IMF or Sales Tax Remitted on
No IMF or Sales Tax Remitted on
No Sales Tax or
Motor Vehicles (including trucks),
Transaction if the license, fee, or
Transaction if the license, fee, or
Casual
Excise Tax
Motorcycles, Trailers and Semitrailers
excise is paid by the servicemember
excise is paid by the servicemember
Due on Transaction
Purchased by a Non-Resident
in the servicemember’s state of
in the servicemember’s state of
Member of the Military (including
domicile or residence.
domicile or residence.
No IMF Due on Transaction
Spouse) Located in South Carolina by
if the license, fee, or
Reason of Orders of the US Armed
Exempt Under
Exempt Under
excise is paid by the
Forces
Servicemember Civil Relief Act
Servicemember Civil Relief Act
servicemember in the
(e.g., car, motor home,
See §§ 3911 (Definitions), 4001 (Exemption See §§ 3911 (Definitions), 4001 (Exemption
servicemember’s state of
recreational trailer, truck,
for Personal Property), and 49 U.S. Code §
for Personal Property), and 49 U.S. Code §
domicile or residence.
minivan, SUV, motorcycle)
30102 (Definition of Motor Vehicle)
30102 (Definition of Motor Vehicle)
(Personal Use Only)
No Sales Tax or IMF Due on
Transaction

Sales Tax Remitted by Retailer to DOR
5% up to $500

Aircraft
(Maximum Sales Tax Item)

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No Casual Excise Tax Due,
(Casual Excise Tax
Only Applies to
Airplanes; and Airplanes
are Not Registered,
Titled, or Licensed by
South Carolina)

CHART 2:

ITEM PURCHASED

MOTOR VEHICLES AND OTHER ITEMS PURCHASED IN
SOUTH CAROLINA BY A NONRESIDENT TO BE TITLED OR
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)
No Sales Tax or IMF Due on
Transaction

Boat or Boat with Motor Permanently
Attached
at Time of Sale
(Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
5% up to $500

No Casual Excise Tax Due,
Unless Buyer Obtains a
Certificate of Title or Other
Proof of Ownership in
South Carolina
(If Casual Excise
Tax Applies,
5% up to $500)
No Sales Tax or IMF Due on
Transaction

Boat Motor
(Not permanently attached
to boat at time of sale)
(Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
5% up to $500

Golf Carts, ATVs, and Go-Carts

Sales Tax Remitted by Retailer to DOR
6% + Local

15

No Casual Excise Tax Due,
Unless Buyer Obtains a
Certificate of Title or Other
Proof of Ownership in
South Carolina
(If Casual Excise
Tax Applies,
5% up to $500)

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

CHART 2:

MOTOR VEHICLES AND OTHER ITEMS PURCHASED IN
SOUTH CAROLINA BY A NONRESIDENT TO BE TITLED OR
REGISTERED OR USED OUTSIDE OF SOUTH CAROLINA
PURCHASED FROM A
LICENSED RETAILER WITH
SCDOR WHO IS NOT A
LICENSED DEALER WITH SCDMV

PURCHASED FROM A
NONRETAILER
(e.g., a casual sale by an
individual)

Moped
(Purchased prior to
November 19, 2018)

Sales Tax Remitted by Retailer to DOR
6% + Local

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

Musical Instrument/Office Equipment
Purchased by IRC § 501(c)(3)
Religious Organization
(Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
5% up to $300
See S.C. Code § 12-36-2110(C)

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

Manufactured Home
(Maximum Sales Tax Item)

Sales Tax Remitted by Retailer to DOR
See S.C. Code § 12-36-2110(B)

No Sales Tax, Casual Excise
Tax, or IMF Due on
Transaction

ITEM PURCHASED

PURCHASED FROM A LICENSED
RETAILER WITH SCDOR WHO IS A
LICENSED DEALER WITH SCDMV

(See General Information and Notes for Chart 2 on the Following Pages)

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CHART 2 GENERAL INFORMATION
Maximum Tax Items (5% up to $500) under S.C. Code § 12-36-2110(A)
• Motor Vehicle
• Motorcycle
• Trailer or Semitrailer, capable
of being pulled only by a truck
Tractor
• Recreational Vehicles including
Tent Campers, Travel Trailers,
Park Models, Park Trailers,
Motor Homes, and Fifth Wheels

• Horse Trailer
• Fire Safety Education Trailer
• Self-Propelled Light
Construction Equipment with
compatible attachments limited
to a maximum of 160 net engine
horsepower

• Boat; Boat Motor
• Aircraft, including
unassembled aircraft to be
assembled by the purchaser,
but not items to be added to
the unassembled aircraft

Sales and Use Tax Exemptions
Notwithstanding the above, some sales may be exempt under S.C. Code § 12-36-2120 (e.g., farm trailers used in planting, cultivating, and harvesting of
farm crops - S.C. Code § 12-36-2120(16)) and therefore not subject to the tax.

Purchases by Nonresidents for First Registration or Use in South Carolina
Chart 1 concerns motor vehicles and other items that are purchased and registered in South Carolina by South Carolina residents. However, Chart 1 also
applies to motor vehicles and other items purchased by nonresidents that are first registered in South Carolina with the SC Department of Motor Vehicles
("SCDMV") (i.e., subject to the Infrastructure Maintenance Fee) or are purchased by nonresidents for use in South Carolina (sales or use tax), unless
otherwise exempt.

Active Duty Military Members
Resident Military Members: See Chart 1 for registration or purchases by military members who are residents of South Carolina.
Nonresident Military Members: See also Charts 1 and 3 for more information on the taxes and fees imposed on nonresident active duty military members,
if any.

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CHART 2 NOTES
Note 1: Purchases by Nonresidents for Registration in the Purchaser’s State of Residence
Code Section 12-36-930 provides that the sales tax due on a sale to a nonresident of a motor vehicle, trailer, semitrailer, or pole trailer that is to be
registered and licensed in the nonresident purchaser’s state of residence, is the lesser of (1) the sales tax which would be imposed on the sale in the
purchaser’s state of residence or (2) the tax that would be imposed in South Carolina.
No sales tax is due in South Carolina if (1) a nonresident purchaser cannot receive a credit in his resident state for sales tax paid to South Carolina or
(2) the nonresident’s state does not impose a sales tax on the sale of a motor vehicle, trailer, semitrailer, or pole trailer.
Examples (as of July 1, 2017):
Georgia and North Carolina: Since Georgia and North Carolina do not impose a sales tax on the sale of motor vehicles, no sales tax is due in South
Carolina on a sale to a Georgia or North Carolina resident who will license and register the motor vehicle in his state of residence.
Virginia: Since Virginia does not allow a credit against its use tax for sales tax paid in South Carolina on the purchase of a motor vehicle, no sales tax is
due in South Carolina on a sale to a Virginia resident who will license and register the motor vehicle in his state of residence.
Alabama, Florida, and Tennessee: Since Alabama, Florida, and Tennessee impose a sales tax on the sale of motor vehicles and allow a credit against use
tax for sales taxes paid in South Carolina on purchases of motor vehicles, the South Carolina sales tax is due on the lesser of the sales tax imposed in the
purchaser’s state of residence or 5% South Carolina sales tax, but no more than $500.

Note 2: Out-of-State Delivery by a Retailer or by a Common Carrier on Behalf of a Retailer
Notwithstanding the above, a sale is exempt from state and local sales and use tax if the seller, by contract of sale, is obligated either (1) to deliver the
item to the buyer (or an agent or donee of the buyer) at a point outside of South Carolina or (2) to deliver the item to a common carrier or the U.S. mail
for transportation to the buyer (or an agent or donee of the buyer) at a point outside of South Carolina. See S.C. Code § 12-36-2120(36).

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CHART 3:

MOTOR VEHICLES AND OTHER ITEMS PREVIOUSLY
REGISTERED OUTSIDE OF SOUTH CAROLINA

• Effective July 1, 2017 -

Item Previously Registered
Outside of South Carolina

Infrastructure Maintenance Fee (IMF)

Vehicle Previously Registered Out-of-State
by the Owner and Subsequently Registered in
SC for the first time by the Same Owner
Active Duty Military Member and Family
(Resident or Nonresident):
Vehicle Previously Registered Out-of-State
by Active Duty Military or Spouse/
Dependent and Subsequently Registered for
the first time in SC by Same Owner

IMF Remitted by Owner to DMV
$250

No IMF Due on Registration in South Carolina
Exempt Under S.C. Code § 56-3-627(D)(2)

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