SC SC Information Letter #26-5 Sales and Use Tax

What local sales-tax changes and exemption rules does South Carolina's March 2026 chart identify for counties, municipalities, and the Catawba Reservation?

Short answer: Effective March 1, 2026, the Department's charts add a new 1% Williamsburg County Capital Projects Tax beginning May 1, extend Lexington County's 1% School District Tax from March 1, and show Aiken County's 1% Capital Projects Tax being reimposed May 1. The charts identify which state, maximum-tax-item, food, and contractor exemptions apply to Department-collected county, municipal, and Catawba taxes. They do not cover locally collected accommodations, beach-preservation, or hospitality taxes.

Apply this to your situation

This page answers the general question. Ezel answers yours, under current South Carolina tax law, with citations.

Disclaimer: This is an official South Carolina Department of Revenue Information Letter. Per the Department, an Information Letter announces general information useful in complying with the laws administered by the Department and has NO precedential value. It is a March 1, 2026 chart and supersedes SC Information Letter #25-9; later local enactments can change rates or exemptions. The Department collects the general local taxes charted here, but counties and municipalities directly collect separate accommodations, beach-preservation, and hospitality taxes and fees that this letter does not cover. This summary is informational only and is not legal or tax advice. Consult a licensed South Carolina tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

SC Information Letter 26-5 is the Department's March 2026 reference for which local sales and use taxes apply and which exemptions each tax recognizes. It covers general local taxes collected by the Department for counties, municipalities, school districts, and the Catawba Indian tribal government.

The update highlights three 2026 changes:

Williamsburg County: a new 1% Capital Projects Tax begins May 1, 2026.
Lexington County: the 1% School District Tax that was scheduled to expire February 28, 2026 was extended by Act No. 89 of 2025, effective March 1, 2026.
Aiken County: the 1% Capital Projects Tax scheduled to expire April 30, 2026 is reimposed effective May 1, 2026.

The three charts cover county taxes, the Catawba Indian Reservation tribal tax, and Myrtle Beach's municipal tourism-development tax. They indicate whether each tax recognizes five exemption groups: state exemptions, maximum-tax items, food-stamp purchases, certain food sales, and qualifying pre-existing construction contracts.

Important local-tax boundary

The charts do not cover local taxes on accommodations or prepared meals that counties or municipalities collect directly. The source identifies separate local accommodations taxes, beach-preservation fees, and hospitality taxes under Title 6.

Food exemptions are not identical across every local tax

Most state-exempt tangible personal property is also exempt from a local tax when the chart says "Yes." Unprepared food is different: it is exempt from a particular local tax only when that local tax's law provides the exemption.

The food category described in the letter generally includes food intended for home consumption, seeds and plants that grow food, and qualifying cold foods. It excludes items such as alcohol, tobacco, hot ready-to-eat food, food meant to be eaten in the store, pet food, vitamins and medicines, and non-food household goods, subject to the specific state-law exemptions noted in the letter.

Construction-contract grandfather rule

The local taxes discussed in the letter exempt building materials for a construction contract when the contract was executed before the new tax's imposition date, or a pre-imposition written bid led to a contract, and a verified contract copy is submitted to the Department within six months after imposition.

The contractor must apply on Form ST-10-C and receive a contract-specific Form ST-585 exemption certificate. Each prime contractor and subcontractor needs its own certificate; the certificate covers only building materials for that contract and does not exempt the state sales tax.

Catawba Reservation rules

The Catawba Indian Reservation is in York County. As of this letter, tribal tax rates for deliveries on the reservation were 7% for general tangible-personal-property sales, 8% for accommodations, and 0% for unprepared food. The Department administers and collects the tribal sales tax, while the Catawba Indian Tribe administers and collects the tribal use tax in the circumstance identified by the letter. The tribal sales and use tax expires November 28, 2092, and rates can change with York County's combined state and local rate.

What this means for you

Retailers making deliveries across South Carolina

Use the chart for the destination county, municipality, or reservation and check every exemption column. Do not assume an exemption under one local tax automatically applies under another.

Hotels, restaurants, and prepared-meal sellers

This chart is not a complete local-tax answer for accommodations or prepared meals. Separate county or municipal accommodations, beach, and hospitality charges may be administered locally.

Construction contractors

If a new local tax starts after your bid or contract, the timing and six-month filing requirement are critical. Obtain a separate ST-585 for each contractor and contract before buying materials without the new local tax.

Common questions

Q: What changed in Williamsburg County?
A: A 1% Capital Projects Tax begins May 1, 2026.

Q: Did Lexington County's school tax expire in February 2026?
A: No. Act No. 89 of 2025 extended the 1% School District Tax effective March 1, 2026.

Q: Are all local South Carolina sales taxes collected by the Department?
A: The general local taxes in these charts are, but the letter excludes locally collected accommodations, beach-preservation, and hospitality taxes and fees.

Q: Are unprepared foods exempt from every local tax?
A: No. The exemption applies only when the law for that particular local tax exempts those sales.

Q: Who collects the Catawba tribal tax?
A: The Department collects the tribal sales tax. The Catawba Indian Tribe collects the tribal use tax in the out-of-state, unregistered-seller circumstance described by the letter.

Citations and references

Authority, statutes, and regulation:

S.C. Code Ann. § 12-4-320 and SC Revenue Procedure #09-3
S.C. Code Ann. §§ 12-36-2120 and 12-36-2130 (state exemptions)
S.C. Code Ann. § 12-36-2110 (maximum-tax items)
S.C. Code Ann. § 27-16-130(H) (Catawba Indian tribal tax)
S.C. Code Ann. §§ 6-1-500 through 6-1-770 (local accommodations, beach, and hospitality taxes and fees)
S.C. Regulation 117-337 (food exemption details)
Act No. 89 of 2025 (Lexington County School District Tax extension)

Source

Landing page: https://dor.sc.gov/advisory-opinion-search
Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL26-5.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 #26-5
SUBJECT:

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

EFFECTIVE DATE:

March 1, 2026

SUPERSEDES:

S.C. Information Letter #25-9

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
S.C. 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.

South Carolina law 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 from which revenues from the state
accommodations tax are at least $14 million in a fiscal year.
While most of these local sales and use taxes provide the same exemptions for certain sales and
purchases, there are some differences with respect to sales of unprepared foods. Attached are three
charts that provide guidance concerning the various types of local sales and use taxes collected by
the Department and the types of exemptions allowed under each tax.
The attached charts only address the general local sales and use taxes collected by the Department
on behalf of the counties, municipalities, school districts, and the Catawba Indian tribal government.
They do not address the local taxes imposed on sales of accommodations 2 or on sales of prepared
meals 3 that are collected directly by the counties or municipalities.

This municipal sales and use tax is actually a fee (Local Option Tourism Development Fee) imposed under Article 9 of
Chapter 10, Title 4. For purposes of simplicity, this fee is referred to as a sales and use tax in this Information Letter.
2
Code Sections 6-1-500 through 6-1-570 provide for local accommodations taxes, and Code Sections 6-1-610 through
6-1-660 provide for beach preservation fees.
3
Code Sections 6-1-700 through 6-1-770 provide for a local hospitality tax.
1

This Information Letter is being issued to reflect the following changes.
One county has newly imposed local sales and use taxes set to begin in 2026.
Williamsburg County: The 1% “Capital Projects Tax” will be imposed, effective May 1, 2026.
Certain counties have extended or reimposed local sales and use taxes set to expire in 2026.
Lexington County: The 1% “School District Tax,” which is set to expire on February 28, 2026,
was extended by the General Assembly in Act No. 89 of 2025, effective March 1, 2026.
Aiken County: The 1% “Capital Projects Tax,” which is set to expire on April 30, 2026, will be
reimposed, effective May 1, 2026.
CHART 1: COUNTY SALES AND USE TAXES
(See “Types of Exemptions” section below for a brief description of each exemption listed.)
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

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

Aiken

Capital Projects
5/1/26

Yes

Ed. Capital Imp.
3/1/25

Yes

Local Option
5/1/92

Yes

Capital Projects
5/1/25

Yes

Anderson

Ed. Capital Imp.
3/1/15

Yes

Bamberg

Local Option
5/1/92

Yes

Capital Projects
5/1/21

Yes

Local Option
5/1/99

Yes

Capital Projects
5/1/25

Yes

Allendale

Barnwell

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

Beaufort
Berkeley

Calhoun

Charleston

Cherokee

Chester

Chesterfield

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

No local sales and use tax is imposed in Beaufort.
Local Option
5/1/97

Yes

Transportation
5/1/23

Yes

Ed. Capital Imp.
3/1/23

Yes

Local Option
5/1/05

Yes

Capital Projects
5/1/19

Yes

Local Option
7/1/91

Yes

Transportation
5/1/05

Yes

Ed. Capital Imp.
1/1/23

Yes

Transportation
5/1/17

Yes

Local Option
5/1/09

Yes

Ed. Capital Imp.
3/1/15

Yes

Local Option
5/1/94

Yes

Capital Projects
5/1/21

Yes

Local Option
5/1/97

Yes

Ed. Capital Imp.
3/1/25
Clarendon

12-36-2110
EXEMPTION
FOR MAXIMUM
TAX ITEMS

Local Option
5/1/97

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

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Colleton

Local Option
7/1/91

Yes

Capital Projects
5/1/23

Yes

Local Option
5/1/97

Yes

Ed. Capital Imp.
3/1/17

Yes

Local Option
5/1/96

Yes

School District
10/1/08

Yes

Dorchester

Transportation
5/1/23

Yes

Edgefield

Local Option
5/1/92

Yes

Capital Projects
5/1/21

Yes

Fairfield

Local Option
5/1/06

Yes

Florence

Local Option
5/1/94

Yes

Capital Projects
5/1/21

Yes

Capital Projects
5/1/2025

Yes

Darlington

Dillon

Georgetown

No local sales and use tax is imposed in Greenville

Greenville
Greenwood

Capital Projects
5/1/25

Yes

Hampton

Local Option
7/1/91

Yes

Horry

Ed. Capital Imp.
3/1/24

Yes

Transportation
5/1/25

Yes

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

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Jasper

Local Option
7/1/91

Yes

Ed. Capital Imp.
3/1/25

Yes

Transportation
5/1/25

Yes

Local Option
5/1/97

Yes

Ed. Capital Imp.
3/1/17

Yes

Local Option
5/1/92

Yes

Capital Projects
5/1/23

Yes

Local Option
5/1/99

Yes

Capital Projects
5/1/21

Yes

Local Option
5/1/96

Yes

Capital Projects
5/1/21

Yes

Lexington

School District
3/1/26

Yes

Marion

Local Option
7/1/91

Yes

Capital Projects
5/1/21

Yes

Local Option
5/1/92

Yes

School District
2/1/13

Yes

Local Option
7/1/91

Yes

Capital Projects
5/1/25

Yes

Capital Projects
5/1/24

Yes

Kershaw

Lancaster

Laurens

Lee

Marlboro

McCormick

Newberry

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

Oconee

12-36-2110
EXEMPTION
FOR MAXIMUM
TAX ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

No local sales and use tax is imposed in Oconee

Orangeburg

Capital Projects
5/1/20

Yes

Pickens

Local Option
5/1/95

Yes

Richland

Local Option
5/1/05

Yes

Transportation
5/1/13

Yes

Local Option
5/1/92

Yes

Capital Projects
5/1/19

Yes

Spartanburg

Capital Projects
5/1/24

Yes

Sumter

Local Option
5/1/96

Yes

Capital Projects
5/1/25

Yes

Union

Local Option
5/1/17

Yes

Williamsburg

Local Option
5/1/97

Yes

Capital Projects
5/1/26

Yes

Capital Projects
5/1/25

Yes

Saluda

York

CHART 2: CATAWBA INDIAN RESERVATION TRIBAL TAX
(See “Types of Exemptions” section and “Catawba Indian Tribal Tax” notes at the end of this
Information Letter for a brief description of each exemption listed.)
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
COUNTY

TYPE OF LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE

Catawba Indian
Reservation

Tribal Tax
(See Notes #1 and

2)

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

12-36-2110
EXEMPTION
FOR MAXIMUM
TAX ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Yes

See Note #2

Yes

See Note #2

CHART 3: MUNICIPAL SALES AND USE TAXES – LOCAL TOURISM DEVELOPMENT
SALES AND USE TAX
(See “Types of Exemptions” section below for a brief description of each exemption listed.)
SALES AND PURCHASES EXEMPT FROM LOCAL SALES AND USE TAXES
MUNICIPALITY

Myrtle Beach

TYPE OF LOCAL
SALES AND
USE TAX AND
EFFECTIVE
DATE
Tourism
Development
8/1/19

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

12-36-2110
EXEMPTION
FOR MAXIMUM
TAX ITEMS

EXEMPTION
FOR FOOD
STAMP
PURCHASES

EXEMPTION
FOR CERTAIN
FOOD SALES

“GRANDFATHER
CLAUSE”
EXEMPTION FOR
CERTAIN
PURCHASES BY
CONTRACTORS

Yes

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 certain exemptions and exclusions)
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 on behalf
of these counties.
Capital Projects: The local capital projects sales and use tax is authorized under Code Section 410-300 et seq. This tax is a general sales and use tax on all sales at retail (with certain exemptions
and exclusions) 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 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 certain
exemptions and exclusions) 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 is collected by the Department on behalf of these counties.
7

County Green Space Tax: The county green space sales and use tax is authorized under Code
Section 4-10-1010 et seq. This tax is a general sales and use tax on all sales at retail (with certain
exemptions and exclusions) taxable under the state sales and use tax. This tax is imposed specifically
for procuring, or for servicing bonds used to procure open lands or green space for preservation by
and through the acquisition of interests in real property. The interest in real property that may be
acquired for preservation includes the acquisition of fee simple titles, conservation easements,
development rights, rights of first refusal, options, leases with options to purchase, and any other
interest in real property.
Education Capital Improvement 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. The tax is authorized under Code Section 4-10-410 et seq. 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.
The General Assembly established several criteria that make a county or school district eligible to
impose this tax. The county or school district must meet only one of these criteria, established in
Code Section 4-10-470, in order for the tax to be imposed within the county. Depending on the
criteria met, this tax may be imposed for up to 15 years.
School District Taxes: The General Assembly 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. These taxes are imposed countywide,
whether imposed by the county or one or more school districts.
As of the date of this Information Letter, these school district taxes are being imposed at a rate of
1%:
County

Act Authorizing Tax

Clarendon
Dillon
Jasper
Lexington

Act No. 355 of 2004 and Act No. 195 of 2005
Act No. 137 of 2007
Act No. 146 of 2001(set to expire on February 28, 2025)
Act No. 378 of 2004, Act No. 88 of 2011,
Act No. 278 of 2018, and Act No. 89 of 2025
Act No. 204 of 2005

Marlboro

Catawba Indian Tribal Tax: The Catawba Indian Reservation is located in York County, where
the general, combined sales and use tax rate is 7%. Code Section 27-16-130(H) contains the specific
sales and use tax provisions.
The tribal sales tax is administered and collected by the Department. The tribal use tax is
administered and collected by the Catawba Indian Tribe. For additional information on the Catawba
Indian Tribal Tax, including information on the specific tax rates for sales of accommodations and
8

unprepared food, see S.C. Revenue Ruling #98-18 and Notes #1 and #2 at the end 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 $14 million in a
fiscal year. 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 nonresidents of South Carolina; 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 is collected by the Department on behalf of these municipalities.
Personal Property Tax Relief: The personal property tax relief sales and use tax is authorized under
Code Section 4-10-510 et seq. This tax is a general sales and use tax on all sales at retail (with certain
exemptions and exclusions) 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. This tax is a general sales and use tax on all sales at
retail (with certain exemptions and exclusions) 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 on behalf of these counties.
As of the date of this Information Letter, this tax is not being imposed.
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, see the most recent
revenue ruling entitled “Local Sales and Use Taxes and Catawba Tribal Sales and Use Tax.”
TYPES OF EXEMPTIONS:
State Exemptions – Code Sections 12-36-2120 and 12-36-2130: 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” in this column on the above charts.
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 - Code Section 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,
watercraft motors, trailers and semitrailers pulled by truck tractors,4 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” in this column
on the above charts.
Note: Code Section 12-36-2120(83) exempts from state and local sales and use tax the sale or
purchase of each vehicle or other item that is subject to an infrastructure maintenance fee under
Code Section 56-3-627. The infrastructure maintenance fee is due when the vehicle or other item is
first registered with the South Carolina Department of Motor Vehicles pursuant to Chapter 3 of Title
56.
Exemption for Food Stamp Purchases: Sales of food purchased with food 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” in this column on the above charts.
Exemption for Certain Food Sales: Sales of certain foods are exempt from the local sales and use
tax if marked “Yes” in this column on the above charts. Sales of foods 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
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

Pole trailers and trailers that can be pulled by vehicles other than truck tractors are not maximum tax items under Code
Section 12-36-2110 and are subject to the local sales and use tax.

•
•
•

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 S.C. 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

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 submitted to the Department within six months of the
imposition date.
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 must sign.
Special Exemption Certificate. 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 Tax for Construction Contractors”). If the Department determines the
contract in question meets the above requirements, the Department will issue a special exemption
certificate (Form ST-585) to the contractor. 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 materials. 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 is 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-585) issued by the Department 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.
CATAWBA INDIAN TRIBAL TAX – NOTES #1 and #2:
Note #1: Whether the State sales and use tax or the Catawba Tribal sales and use tax for sales (deliveries)
made on the Catawba Indian Reservation applies is determined by the Catawba Indian Claims Settlement
Act (Chapter 16, Title 27, South Carolina Code of Laws). The provisions specific to sales and use tax
are 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:
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

Administered and
Collected By:

Type Tax Applicable
Tribal Sales Tax (Equal to
DOR
Combined State and Local Rate)
State Sales Tax (Local Taxes Do Not DOR
Apply.)
Tribal Sales Tax (Equal to
Combined State and Local Rate)

DOR

State Use Tax (Local Taxes Do Not
Apply.)

DOR

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

Catawba Indian Tribe

York County imposes a 1% Capital Projects Tax. This local tax is in addition to the State sales and use
tax. As of the date of this Information Letter, the tribal sales tax and the tribal use tax are imposed
at the following rates 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
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 York County in the future.
For additional information, see S.C. Revenue Ruling #98-18.
Note #2: 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% (because 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.
“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 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 earlier in this Information Letter
concerning “Grandfather Clause” Exemption for Certain Purchases by Construction Contractors and
the Special Exemption Certificate.

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