How did South Carolina's one-percentage-point state sales-tax reduction work for purchasers age 85 or older under the 2008 guidance?

Plain-English summary

Under the 2008 guidance, an individual age 85 or older received a one-percentage-point reduction in the state sales or use tax on qualifying purchases for personal use. At the time, this generally meant a 5% state rate instead of 6%, or 6% instead of the 7% accommodations rate. Applicable local taxes were not reduced.

The purchaser had to buy the item personally, use it personally, request the reduction at the time of sale, and show the retailer proof of age. No Department form was required. Business purchases and gifts for another person did not qualify, nor did a purchase made by someone else as a gift for the older individual.

The ruling applied the reduction across common transactions, including tangible goods, prepared food, communications, laundry, short-term vehicle rentals, accommodations, additional guest charges, and over-the-counter medicines. Items already exempt—such as the described residential electricity, prescription medicines, and qualifying diabetic supplies—remained exempt rather than receiving another reduction.

What this means for you

Purchasers age 85 or older

The historical benefit had to be requested at checkout with proof of age. A later refund was unavailable if the purchaser failed to request it or provide proof at the time of purchase.

Retailers

Retailers had to post notice of the one-percent exclusion at each entrance or cash register. The ruling described a penalty of up to $100 for each month of nonposting and possible retail-license revocation after a written warning.

Hotels, restaurants, and vehicle sellers

The reduction changed only the applicable state component. Local sales, hospitality, or accommodations taxes could still apply, while the ruling's then-current maximum-tax rules governed qualifying motor vehicles and long-term leases.

Common questions

Q: Did every purchase by someone age 85 or older qualify?
A: No. The purchaser had to buy the item for personal use. Business purchases and gifts for another person did not qualify.

Q: Did the reduction apply to local taxes?
A: No. The ruling said Department-administered local taxes and directly administered hospitality or accommodations taxes were unaffected.

Q: Was a special form required?
A: No. The purchaser had to request the reduction at the sale and provide proof of age.

Q: Could the purchaser claim a refund later?
A: Not under this guidance if the purchaser failed to request the reduction or show proof of age at the time of sale.

Q: Did already-exempt items receive an additional benefit?
A: No additional reduction was needed. The ruling treated qualifying unprepared food, residential electricity, prescription medicine, and specified diabetic supplies under their separate exemptions.

Citations and references

• S.C. Code § 12-36-2620 (one-percent state sales and use tax exclusion for qualifying personal purchases)
• S.C. Code § 12-36-2630 (components of the accommodations tax)
• S.C. Code § 12-36-2640 (components of the casual excise tax)
• Chapter 36 of Title 12 (sales and use tax provisions addressed throughout the ruling)
• SC Revenue Ruling #18-10 (later guidance superseding prior conflicting documents on the same subject)

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR08-5.pdf
• Later guidance: SC Revenue Ruling #18-10

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 REVENUE RULING #08-5

SUBJECT:

Purchases by Individuals 85 Years of Age and Older
(Sales and Use Tax)

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

All previous advisory opinions and any oral directives in
conflict herewith.

REFERENCES:

Chapter 36 of Title 12 (2000; Supp. 2007)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #05-2

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the
public and to Department personnel. It is an advisory opinion
issued to apply principles of tax law to a set of facts or general
category of taxpayers. It is the Department’s position until
superseded or modified by a change in statute, regulation, court
decision, or another Departmental advisory opinion.

Introduction:
South Carolina imposes a general sales and use tax rate of 6% and a sales tax rate of 7%
on rentals of accommodations. The Department of Revenue also administers and collects
local sales and use taxes on behalf of local jurisdictions. These local sales and use taxes
collected by the Department of Revenue are presently imposed at rates of 1%, 1.5% and
2%, depending on the county. Some municipalities and counties also impose a local
hospitality tax (prepared meals and food) and a local accommodations tax, which they
directly administer and collect.
The South Carolina sales and use tax law provides a lower state tax rate for purchases by
individuals 85 years of age and older for their personal use. This advisory opinion will
provide guidance as to the requirements of the law and its application to various
situations.

1

This document is not intended to address every issue an individual 85 years of age or
older may encounter. It is intended to only provide general guidance as to everyday
purchases and to make individuals 85 years of age or older aware of the lower state sales
and use tax rate available to them.
Note: The lower sales and use tax rate for individuals 85 years of age and older,
sometimes referred to as the “1% exclusion” for individuals 85 years of age and older,
does not apply to local taxes administered and collected by the Department of Revenue
on behalf of local jurisdictions or to local sales taxes administered and collected directly
by a city or county (i.e., the local hospitality tax or fee and the local accommodations tax
or fee).

Executive Summary
The state sales and use tax applies to purchases at retail of tangible personal property.
The sales and use tax law also applies to certain services, such as communication
services, laundry and drycleaning services, electricity, and accommodations.
An individual who is 85 years of age or older is entitled to a lower state sales and use tax
rate, sometimes referred to as the “1% exclusion,” for items that individual purchases for
his or her own personal use. In other words, a person who is 85 years of age or older
would pay a state sales tax of 5% instead of 6% (any local sales and use taxes would still
apply) on:
(1) purchases of tangible personal property (food, clothing, furniture, appliances,
etc.); and,
(2) purchases of communications services, such as phone service (long distance calls
are already exempt), cable television service, satellite programming services (radio,
emergency, television) as well as other communication services.
An individual who is 85 years of age or older would pay a state sales tax of 6% instead of
7% (any local sales and use taxes would still apply) on purchases of accommodations
services (the rental charge for a hotel room or condominium) and would pay a state sales
tax of 5% instead of 6% on any additional guest charges (charges for maid service, inroom movies, and other amenities) charged by the place providing the accommodations.
The law granting this exclusion for individuals 85 years of age or older does not require
the purchaser to complete any form with the Department of Revenue. It only requires that
(1) the individual purchases the tangible personal property himself or herself, (2) that the
tangible personal property is purchased for his or her own personal use, (3) that the
purchaser requests the exclusion at the time of the sale, and (4) that the purchaser
provides the retailer with proof of age.

2

Finally, purchases by an individual who is 85 years of age or older are not entitled to the
lower state sales and use tax rate if the purchase is not for the personal use of the
individual purchaser who is 85 years of age or older. For example, purchases for a
business use or as a gift for another individual are not entitled to the lower state sales and
use tax rate.
See the attached exhibits for a chart that provides general guidance (Exhibit “A”) and for
the code sections that authorize the “1% exclusion,” or lower state sales and use tax rate,
for individuals 85 years of age or older (Exhibit “B”).

Table of Contents
Section

Page Number

Introduction

1

Executive Summary

2

Procedure for Obtaining Lower Rate

3

Questions and Answers

4

General Purchases
4
Food Purchases
4
Communications Services
6
Residential Electricity
7
Laundry and Drycleaning
7
Motor Vehicles (incl. Leases & Rentals) 7
Sleeping Accommodations
8
Medicines
10
Diabetic Supplies
10
Gifts
10
Requirements of Retailers
11
Refunds
11
Exhibit A – Summary Chart

13

Exhibit B – Applicable Code Sections

15

Question Number

1
2–3
4
5
6
7–9
10 – 11
12 – 13
14
15 – 16
17 – 18
19 – 20

Procedure for Obtaining the Lower State Sales and Use Tax
Rate
The law granting the lower state sales and use tax rate for individuals 85 years of age or
older does not require the purchaser to complete any form with the Department of
Revenue. It only requires that:

3

(1) the individual purchases the tangible personal property himself or
herself;
(2) that the tangible personal property is purchased for his or her own
personal use;
(3) that the purchaser requests the exclusion at the time of the sale; and,
(4) that the purchaser provides the retailer with proof of age.

Questions and Answers:
General Purchases

1. If an individual 85 years of age or older purchases tangible personal property at retail
   for his or her personal use, what tax rate is applicable to the purchase?
   Except as discussed in subsequent questions, an individual 85 years of age or older who
   purchases tangible personal property at retail for his or her personal use would pay a state
   sales and use tax rate of 5% (instead of the 6% applicable to all other persons), plus any
   applicable local sales and use tax.
   Examples of purchases of tangible personal property subject to this 5% rate (instead of
   the 6% applicable to all other persons) include, but are not limited to:
   Clothing
   Clothing accessories, such as handbags, scarves, hats and hosiery
   Appliances, such as refrigerators, washers, dryers, microwave ovens
   Electronics, such as televisions, radios, computers, and computer accessories
   Household items, such as draperies and rugs
   Furniture, such as sofas, chairs, tables, and lamps
   Jewelry and Watches
   Cosmetics
   Household supplies, such as cleaning supplies, light bulbs, toiletries
   Food Purchases
2. If an individual 85 years of age or older purchases unprepared food at retail for his or
   her personal use, what tax rate is applicable to the purchase?
   Purchases of unprepared food products (the type that can be purchased with food stamps)
   by all individuals are exempt from the state sales and use tax. However, such purchases
   are still subject to any applicable local sales and use tax.
   The following are examples of foods eligible and not eligible for the exemption from the
   state sales and use tax.

4

Foods eligible for the state sales and use tax exemption 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 and that are not considered “prepared meals or food” as
discussed below
Items which are not eligible for state sales and use tax exemption and are, therefore,
subject to the state sales and use tax at the state rate of 5% for individuals 85 years of
age or older (instead of the 6% applicable to all other persons) 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 or that are
considered “prepared meals or food” as discussed above
Vitamins and medicines (Note: Medicines sold by prescription are exempt
from the state and local sales and use taxes.)
Pet food
Any non-food items such as tissue, soap or other household goods
The term “unprepared” food does not include (1) meals and food sold by a restaurant,
cafeteria, lunch wagon, or other similar places or businesses engaged in the business of
selling prepared meals or food for immediate consumption; (2) meals prepared and
delivered by a meal delivery service; (3) meals sold to or at congregate meal sites; or
(4) meals and food sold at a grocery store, convenience store or any other similar store
for the purpose of eating at or near the store, such as meals and food sold with eating
utensils (e.g., plates, knives, forks, spoons, cups, napkins) provided by the seller. These
meals and foods are considered “prepared meals or food” and are not eligible for the
state sales and use tax exemption and are subject to the state sales and use tax at the
state rate of 5% for individuals 85 years of age or older (instead of the 6% applicable to
all other persons).
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For more information on the state exemption for purchases of unprepared foods, see
SC Revenue Ruling #07-4. Also, the Department of Revenue has proposed a
regulation to provide guidance as to the application of the exemption for unprepared
foods. This regulation is presently being reviewed (during the 2008 session) by the
General Assembly. If the proposed regulation is approved by the General Assembly,
it will become an official regulation of the Department. The proposed regulation can
be found at the Department’s website.

3. If an individual 85 years of age or older purchases a prepared food or meal at retail at a
   restaurant or similar place for his or her personal use, what tax rate is applicable to the
   purchase?
   An individual 85 years of age or older who purchases a prepared food or meal at retail at
   a restaurant or similar place for his or her personal use would pay a state sales and use tax
   rate of 5% (instead of the 6% applicable to all other persons), plus any applicable local
   sales and use tax.
   Note: In addition to the 6% state tax (5% for individuals 85 years of age and older) and
   any local tax administered and collected by the Department of Revenue on behalf of local
   jurisdictions, some cities and counties impose a local hospitality tax of up to 2% on
   prepared meals and beverages.
   Communications Services (Telephone, Cable TV, Etc.)
4. If an individual 85 years of age or older purchases communication services at retail
   such as telephone services, cable televisions services, and satellite television, radio or
   emergency services for his or her personal use, what tax rate is applicable to the
   purchase?
   An individual 85 years of age or older who purchases communication services at retail
   such as telephone services, cable televisions services, and satellite television, radio or
   emergency services for his or her personal use would pay a state sales and use tax rate of
   5% (instead of the 6% applicable to all other persons), plus any applicable local sales and
   use tax.
   Examples of purchases of communication services subject to this 5% rate (instead of the
   6% applicable to all other persons) include, but are not limited to:
   Telephone services
   Paging Services
   Answering Services
   Cable Television Services

6

Satellite Programming Services and Other Programming Transmission Services
(includes, but is not limited to, emergency communication services and television,
radio, music or other programming services)
Fax Transmission Services
Database Access Transmission Services (On-Line Information Services), such as
charges to access an individual website (e.g., monthly charges to access a sports
website)
Note: Charges for long distance calls are exempt from the sales and use tax.
For more detailed information on communication services subject to the tax or exempt
from the tax, see SC Revenue Ruling #06-8.
Residential Electricity Purchases

5. If an individual 85 years of age or older purchases electricity at retail for residential
   purposes for his or her personal use, what tax rate is applicable to the purchase?
   Purchases of electricity at retail for residential purposes are exempt from state and local
   sales and use taxes.
   Laundry and Drycleaning Purchases
6. If an individual 85 years of age or older purchases laundry and drycleaning services at
   retail for his or her personal use, what tax rate is applicable to the purchase?
   An individual 85 years of age or older who purchases laundry and drycleaning services at
   retail for his or her personal use would pay a state sales and use tax rate of 5% (instead of
   the 6% applicable to all other persons), plus any applicable local sales and use tax.
   Note: Under a separate provision of law, some drycleaning facilities must also charge a
   1% environmental surcharge on charges for laundry and drycleaning services.
   Motor Vehicle Purchases, Leases and Rentals
7. If an individual 85 years of age or older purchases at retail a motor vehicle for his or
   her personal use, what tax rate is applicable to the purchase?
   An individual 85 years of age or older who purchases at retail a motor vehicle for his or
   her personal use would pay a state sales and use tax rate of 4% (instead of the 5%
   applicable to all other persons purchasing this maximum tax item).
   The 4% tax rate is applied to the sales price of the motor vehicle and if the tax as
   calculated exceeds the $300 maximum tax the individual 85 years of age or older would
   only pay $300.

7

Note: Local sales and use taxes do not apply to purchases of a motor vehicle subject to
the $300 maximum tax.

8. If an individual 85 years of age or older leases at retail a motor vehicle for more than
   ninety continuous days for his or her personal use, what tax rate is applicable to the
   lease?
   An individual 85 years of age or older who leases at retail a motor vehicle for more than
   ninety continuous days for his or her personal use would pay a state sales and use tax rate
   of 4% (instead of the 5% applicable to all other persons leasing a motor vehicle for more
   than ninety continuous) and would pay no more than the $300 maximum tax, provided
   the lease was in writing, stated a term of more than ninety continuous days, and remained
   in force for more than ninety continuous days. Local sales and use taxes do not apply to
   leases of motor vehicles that meet these requirements.
   The 4% tax rate is applied to each lease payment until the total tax paid equals $300;
   however, the law allows the entire $300 to be paid at the time the lease is executed.
   Note: If the lease is not in writing, or does not state a term of more than ninety
   continuous days, or does not remain in force for more than ninety continuous days, then
   the individual 85 years of age or older would pay a state sales and use tax rate of 5%
   (instead of the 6% applicable to all other persons) and the applicable local sales and use
   taxes. In addition, the $300 maximum tax would not apply to the lease.
9. If an individual 85 years of age or older rents at retail a motor vehicle for ninety or less
   continuous days for his or her personal use, what tax rate is applicable to the rental?
   An individual 85 years of age or older who rents at retail a motor vehicle for ninety or
   less continuous days for his or her personal use would pay a state sales and use tax rate of
   5% (instead of the 6% applicable to all other persons), plus any applicable local sales and
   use tax.
   Note: Under a separate provision of law, rental companies in the business of renting
   private passenger vehicles for 31 days or less must also charge a 5% rental surcharge.
   Sleeping Accommodations (Hotels, Motels, Condominium Rentals)
10. If an individual 85 years of age or older purchases at retail sleeping accommodations
    for his or her personal use, what tax rate is applicable to the purchase?
    Charges for accommodations at hotels, motels, campgrounds and any other place where
    sleeping accommodations are furnished are subject to the sales tax; however, charges for
    sleeping accommodations supplied to the same person for a period of ninety or more
    continuous days are not subject to the sales tax on accommodations.
    An individual 85 years of age or older who purchases sleeping accommodation for less
    than ninety continuous days for his or her personal use would pay a state sales and use

8

tax rate of 6% (instead of the 7% applicable to all other persons), plus any applicable
local sales and use tax.
Note: In addition to the 7% state tax (6% for individuals 85 years of age and older) and
any local tax administered and collected by the Department of Revenue on behalf of local
jurisdictions, some cities and counties impose a local accommodations tax of up to 3% on
sleeping accommodations.
For additional information on the sales tax imposed upon accommodations, see SC
Regulation 117-307.

11. If an individual 85 years of age or older pays “additional guest charges” that were for
    his or her personal use at a place that furnishes sleeping accommodations subject to the
    sales tax on accommodations, what tax rate is applicable to these “additional guest
    charges?”
    “Additional guest charges,” at a place that furnishes sleeping accommodations subject to
    the sales tax on accommodations, are subject to the sales tax. “Additional guest charges”
    include, but are not limited to:
    room service;
    amenities;
    entertainment;
    special items in promotional tourist packages;
    laundering and dry cleaning services;
    in-room movies;
    telephone charges;
    rentals of meeting rooms; and
    other guest services.
    For additional information on the “additional guest charges,” see SC Regulation 117-307.
    An individual 85 years of age or older pays “additional guest charges” that were for his or
    her personal use at a place that furnishes sleeping accommodations subject to the sales
    tax on accommodations would pay a state sales and use tax rate of 5% (instead of the 6%
    applicable to all other persons), plus any applicable local sales and use tax.

9

Medicines

12. If an individual 85 years of age or older purchases at retail prescription medicines
    from a pharmacy (as a result of a physician’s prescription) for his or her personal use,
    what tax rate is applicable to the purchase?
    Purchases at retail of prescription medicines from a pharmacy (as a result of a physician’s
    prescription) are exempt from state and local sales and use taxes.
13. If an individual 85 years of age or older purchases at retail over-the-counter
    medicines (e.g., aspirin) for his or her personal use, what tax rate is applicable to the
    purchase?
    An individual 85 years of age or older who purchases at retail over-the-counter medicines
    (e.g., aspirin) for his or her personal use would pay a state sales and use tax rate of 5%
    (instead of the 6% applicable to all other persons), plus any applicable local sales and use
    tax.
    Note: Under the state sales and use tax law, medicines administered or provided to a
    patient by a hospital, nursing home or at a doctor’s office are considered used and
    consumed by the hospital, nursing home or doctor in providing professional medical
    services. Therefore, purchases by hospitals, nursing homes and doctors of medicine for
    use in providing professional medical services are subject to the tax at the full state rate
    (unless otherwise exempt under the law), regardless of the age of the patient.
    Diabetic Supplies
14. If an individual 85 years of age or older who is a diabetic purchases at retail
    hypodermic needles, insulin, alcohol swabs, blood sugar testing strips, monolet lancets,
    dextrometer supplies, blood glucose meters, and other similar diabetic supplies under the
    written authorization and direction of a physician for his or her personal use, what tax
    rate is applicable to the purchase?
    Purchases by a diabetic of hypodermic needles, insulin, alcohol swabs, blood sugar
    testing strips, monolet lancets, dextrometer supplies, blood glucose meters, and other
    similar diabetic supplies under the written authorization and direction of a physician are
    exempt from state and local sales and use taxes.
    Gifts
15. If an individual 85 years of age or older purchases a gift for another individual, what
    tax rate is applicable to the purchase?
    An individual 85 years of age or older who purchases a gift for another individual would
    pay a state sales and use tax rate of 6%, plus any applicable local sales and use tax, since
    the item purchased is not for the personal use of the purchaser.

10

16. If an individual 85 years of age or older receives a gift purchased by another
individual, what tax rate is applicable to the purchase?
An individual who purchases a gift for an individual 85 years of age or older would pay a
state sales and use tax rate of 6%, plus any applicable local sales and use tax, since the
item was not purchased by an individual 85 years of age or older for his or her own
personal use.
Requirement for Retailers

17. What responsibilities does a retailer have with respect to the law that provides the
    lower state sales and use tax rate for sales to individuals 85 years of age or older?
    Retailers are required to post a sign at each entrance or each cash register which advises
    individuals eighty-five years of age or older of the lower state sales and use tax rate
    available to them.
    Note: The signs posted will generally refer to a “one percent exclusion” from the state
    sales and use tax when advising individuals 85 years of age or older of the lower state
    sales and use tax rate available under the law.
18. What if a retailer fails to post the sign?
    A retailer who fails to post the required signs is subject to a penalty of up to $100.00 for
    each month or portion of the month the sign or signs are not posted. Continued failure to
    post the signs after a written warning from the Department of Revenue may result in
    revocation of the retailer's retail license.
    Note: Failure to post the signs does not give rise to a cause of action by an individual
    eighty-five years of age or older who failed to request the exclusion and provide proof of
    age at the time of sale.
    Refunds
19. If an individual 85 years of age or older fails to request the lower state sales and use
    tax rate and therefore does not receive the lower tax rate at the time of purchase, may that
    individual subsequently request a refund of the 1% state tax?
    No. The lower state rate is only available if an individual 85 years of age or older
    requests the lower state sales and use tax rate at the time of purchase.
20. If an individual 85 years of age or older fails to provide proof of age at the time of
    purchase and therefore does not receive the lower state sales and use tax rate, may that
    individual subsequently request a refund of the 1% state tax?
    No. The lower state rate is only available if an individual 85 years of age or older
    provides proof of age at the time of purchase.
    11

Note: As stated above, this document is not intended to address every issue an
individual 85 years of age or older may encounter. It is intended to only provide
general guidance as to everyday purchases and to make individuals 85 years of age
or older aware of the lower state sales and use tax rate available to them. The
attached chart, Exhibit “A,” should also provide general guidance.
In addition, Exhibit “B” contains the various code sections that authorize the
“1% exclusion,” or lower state sales and use tax rate, for individuals 85 years of age
or older.
For general information about the sales and use tax, visit the Department’s website
at www.sctax.org.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Ray N. Stevens
Ray N. Stevens, Director
, 2008
April 25
Columbia, South Carolina

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Exhibit A
The attached chart is intended only as general guidance and is not intended to
address every issue an individual 85 years of age or older may encounter
or to address all the intricacies of the state sales and use tax law.
Any purchases that fall within the requirements of an exemption provided in the
law are not subject to the tax. (e.g., purchases of clothing or computers during the
annual sales tax holiday)

13

STATE SALES AND USE TAX RATES FOR
PURCHASES BY INDIVIDUALS
85 YEARS OF AGE AND OLDER
Examples

General Items
(Except as noted
below)

clothes, household
items, cosmetics,
appliances,
electronics, cleaning
supplies, etc.
grocery staples,
canned goods, meat,
milk, breads, soft
drinks, etc.

6%

State Rate for
Individuals 85
Years of Age
and Older
5%

0%

0%

restaurant foods and
meals
local telephone
service, cable TV
service
prescription
medicines sold by
prescription

6%

5%

Applicable,
unless
otherwise
exempt
under the
local law
Applicable

6%

5%

Applicable

0%

0%

0%

over-the-counter
medicines

6%

5%

Applicable

Residential
------------Electricity and
Gas
Items Subject to cars, boats
the $300
Maximum Tax
Accommodations room charges
Charges
additional guest
charges
store pick-up or
Drycleaning
home delivery

0%

0%

0%

5%, but no
more than
$300
7%

4%, but no more
than $300

0%

6%

Applicable

6%

5%

Applicable

6%

5%

Applicable

Unprepared
Food

Prepared Food
Communications
Services
Medicines

State Rate

Local
Sales and
Use Tax

Type of
Purchase

14

Applicable

Exhibit B
The attached exhibit contains the various code sections that authorize the
“1% exclusion” for individuals 85 years of age or older.

15

SECTION 12-36-2620 - SALES AND USE TAXES COMPOSED OF TWO
COMPONENTS.
The taxes imposed by Sections 12-36-910, 12-36-920(B), 12-36-1310, and 12-36-1320
are composed of two taxes as follows:
(1) a four percent tax, which must be credited as provided in Section 59-21-1010(A), and
(2) a one percent tax, which must be credited as provided in Section 59-21-1010(B). The
one percent tax specified in this item does not apply to sales to an individual eighty-five
years of age or older purchasing tangible personal property for his own personal use, if at
the time of sale, the individual requests the one percent exclusion from tax and provides
the retailer with proof of age.
SECTION 12-36-2630 - SEVEN PERCENT SALES TAX ON
ACCOMMODATIONS FOR TRANSIENTS COMPOSED OF THREE
COMPONENTS.
The tax imposed by Section 12-36-920(A) is composed of three taxes as follows:
(1) a four percent tax which must be credited as provided in Section 59-21-1010(A); and
(2) a one percent tax, which must be credited as provided in Section 59-21-1010(B). The
one percent tax specified in this item (2) does not apply to sales to an individual eightyfive years of age or older purchasing tangible personal property for his own personal use,
if at the time of sale, the individual requests the one percent exclusion from tax and
provides the retailer with proof of age; and
(3) a two percent local accommodations tax, which must be credited to the political
subdivisions of the State in accordance with Chapter 4 of Title 6. The proceeds of this
tax, less the department's actual increase in the cost of administration and the expenses of
the Tourism Expenditure Review Committee established pursuant to Section 6-4-35,
must be remitted quarterly to the municipality or the county in which it is collected. The
two percent tax provided by this item may not be increased except upon approval of twothirds of the membership of each House of the General Assembly. However, the tax may
be decreased or repealed by a simple majority of the membership of each House of the
General Assembly.
The tax imposed by Section 12-36-920 must be billed and paid in a single item listed as
tax, without itemizing the taxes referred to in this section.

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SECTION 12-36-2640 - CASUAL EXCISE TAX COMPOSED OF TWO
COMPONENTS.
The tax imposed by Section 12-36-1710 is composed of two taxes as follows:
(1) a four percent tax which must be credited to the general fund of the State; and
(2) a one percent tax which must be credited as provided in Section 59-21-1010(B). The
one percent tax specified in this item does not apply to the issuance of certificates of title
or other proof of ownership to an individual eighty-five years of age or older titling or
registering a motor vehicle, motorcycle, boat, motor, or airplane for his own personal use,
if at the time of sale, the individual requests the one percent exclusion from tax and
provides the retailer with proof of age.

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