Under the historical 2008 guidance, when did South Carolina collect casual excise tax or use tax on vehicles, boats, motors, airplanes, and trailers?

Plain-English summary

The South Carolina Department of Revenue separated two taxes that could apply when sales tax had not already been paid on vehicles and similar property. The casual excise tax generally applied when South Carolina issued a title or other proof of ownership after the last non-retailer sale of a motor vehicle, motorcycle, boat, motor, or airplane. It did not apply to trailers, semitrailers, or pole trailers.

The use tax generally applied when a motor vehicle, motorcycle, boat, motor, airplane, or trailer was bought from an out-of-state retailer for storage, use, or consumption in South Carolina. A credit was allowed for state and local sales or use tax properly due and paid to another state.

The ruling described a historical 5% tax capped at $300 for specified property, including motor vehicles, motorcycles, boats, aircraft, qualifying truck-tractor trailers, recreational vehicles, light construction equipment, and horse trailers. Other property—including separately purchased boat motors, ordinary boat trailers, pole trailers, and all-terrain vehicles—could be taxed at 6% without the cap. Numerous transfers were excluded or exempt, including certain family and inheritance transfers, qualifying gifts, resale transfers, federal-government transactions, total-loss insurance transfers, and specified sales of an entire business.

What this means for you

Private-party buyers

Under the historical rules, tax could be collected through the title or ownership process even though the seller was not a retailer. The casual excise tax applied only to the last sale before the title application.

Out-of-state purchases

Purchases from out-of-state retailers were analyzed under use-tax rules. Property substantially used outside South Carolina before being brought in, or purchases on which authorized sellers collected South Carolina tax, could receive the treatment described in the ruling.

Boats, motors, and trailers

The tax treatment depended on whether a motor was permanently attached and whether a trailer fell within the narrow truck-tractor category. Package pricing had to reasonably allocate the ordinary boat trailer's value.

Common questions

Q: Did casual excise tax apply to ordinary trailers?
A: No. The ruling limited casual excise tax to the listed titled property and excluded trailers, semitrailers, and pole trailers from that tax.

Q: What was the historical tax base for casual excise tax?
A: Fair market value, generally the agreed purchase price less a trade-in, with an adopted national valuation used when necessary.

Q: Were family transfers taxable?
A: The ruling excluded transfers to immediate family members, defined to include a spouse, parent, child, sibling, grandparent, and grandchild.

Q: Were gifts and prizes taxable?
A: Not when there was no sale to the recipient, under the gift and prize treatment described.

Q: Is this ruling still operative?
A: No. SC Revenue Ruling #20-1 expressly superseded it.

Citations and references

• S.C. Code §§ 12-36-1710 and 12-36-1720 (casual excise tax, value, and excluded transfers)
• S.C. Code §§ 12-36-1310 and 12-36-1330 (use tax and seller collection)
• S.C. Code § 12-36-2110 (historical maximum tax)
• S.C. Code § 12-36-2120 (sales and use tax exemptions affecting casual excise tax)
• S.C. Code § 12-36-2640 (historical age-85 rate provision)
• SC Revenue Ruling #20-1 (expressly superseding guidance)

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR08-8.pdf
• Superseding guidance: SC Revenue Ruling #20-1

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 08-8

SUBJECT:

Collection of Casual Excise Tax and Use Tax on Sale of a Motor Vehicle,
Motorcycle, Boat, Motor, Airplane, Trailer, etc.

EFFECTIVE DATE: June 1, 2007
SUPERSEDES:

SC Revenue Ruling #04-13, SC Revenue Ruling #95-12 and all previous
advisory opinions and any oral directive 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) (Supp. 2007)
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
In general, a South Carolina retailer collects and remits sales tax to the Department upon the sale of
a motor vehicle, motorcycle, boat, motor, airplane, trailer, semitrailer, or pole trailers. At times,
however, the property is purchased from an individual, non-retailer, or a retailer located outside of
South Carolina who is not responsible for collecting sales or use tax.
The purpose of this document is to update a previously issued advisory opinion, SC Revenue Ruling

04-13, so as to provide detailed information concerning the application of the casual excise tax or

use tax, if any, on motor vehicles, motorcycles, boats, motors, airplanes, trailers, etc. where sales tax
has not previously been paid.
For easy reference, this advisory opinion is arranged by major categories to assist in explaining the
general tax provisions and the types of transfers that are not subject to casual excise tax, use tax,
maximum tax, and/or sales tax. These categories are:

1. Casual Excise Tax

1

2.
3.
4.
5.
6.
7.

Use Tax
Maximum Tax
Transfers of Boats, Motors, and Boat Trailers
Special Provision for Persons 85 and Older
Local Sales and Use Taxes
Definitions

CASUAL EXCISE TAX - GENERAL PROVISIONS
1.

What is the casual excise tax and when is it imposed on sales of motor vehicles,
motorcycles, boats, motors, or airplanes?

The casual excise tax is imposed upon the issuance of a certificate of title or other proof
of ownership for every (1) motor vehicle, (2) motorcycle, (3) boat, (4) motor, or (5)
airplane required to be registered, titled, or licensed. It applies only to the last sale before
the application for title. (See Code Sections 12-36-1710(A) and 12-36-1720.) The casual
excise tax does not apply to trailers (including boat trailers), semitrailers, or pole trailers.
2.

What is the casual excise tax rate?

The tax is 5% of the “fair market value” of the motor vehicle, motorcycle, airplane, and
boat 1 purchased. (See Question 3 for the definition of “fair market value.”) However,
Code Section 12-36-2110 provides that the casual excise tax on sales of motor vehicles,
motorcycles, boats, or airplanes may not exceed the $300 maximum tax on these
transactions. (See Questions 11 and 12 concerning the maximum tax.)
The tax is 6% of the “fair market value” of a motor that is purchased alone (not
permanently attached to the boat) 2 . (See Question 3 for the definition of “fair market
value” and Question 13 for more information concerning the purchase of boats, motors,
and boat trailers, either individually or as a package.)
Note: Any transaction subject to the maximum tax of $300 is taxed at a state rate of 5%
and is not subject to any local tax administered and collected by the Department o
Revenue on behalf of local jurisdictions. Any transaction not subject to the maximum tax
of $300 is taxed at a state rate of 6% and is subject to any local tax administered and
collected by the Department of Revenue on behalf of local jurisdictions.
3.

On what amount is the casual excise tax computed?

The casual excise tax is computed on the “fair market value” which is defined as (1) the
total purchase price (i.e., price agreed upon by the buyer and seller) less any trade-in
1

A boat sold with a motor permanently attached to it is subject to the casual excise tax at the lesser of 5%
of the fair market value or $300. A boat motor is considered permanently attached to a boat if it is (1) an
inboard motor or (2) an outboard motor sold mounted to the boat, connected to a permanent steering
mechanism, and included in the price of the boat.
2
See footnote #1.

2

allowance of the motor vehicle, motorcycle, boat, motor, or airplane, or (2) the valuation
shown in a national publication adopted by the Department. The valuation shown in a
national publication of used values, however, is used only in cases of necessity, for
example, when closely held stock is exchanged for a motor vehicle.
The price agreed upon by the buyer and seller, less any trade in, includes: (1) the amount
of cash paid, (2) the amount of any loan assumed, (3) the value of any property
exchanges, or (4) the amount paid at delinquent property tax sales.
NOTE: This conclusion is based upon the following legal analysis:
Code Section 12-36-1710(A) imposes the casual excise tax on the fair market value of the
motor vehicle, motorcycle, boat, motor, or airplane. The term “fair market value” is
defined in Code Section 12-36-1710(C) as “the total purchase price less any trade-in, or
the valuation shown in a national publication of used values adopted by the department,
less any trade-in.” The term “total purchase price” is defined in Code Section 12-361710(D) as “the price of a motor vehicle, motorcycle, boat, motor, or airplane agreed
upon by the buyer and seller with an allowance for a trade-in, if applicable.”
In looking at the definition of fair market value above, the determination must be made as to
when the casual excise tax is imposed on the total purchase price and when it is imposed on
the valuation shown in a national publication. The court, in Investors Premium Corp. v.
South Carolina Tax Commission, 193 S.E. 2d 642 (1973), addressed a similar issue. The
court stated that “the word ‘or’ used in a statute marks an alternative, and ordinarily means
one or the other of two, but not both. We are of the opinion that... ‘or’, while marking an
alternative, must also be construed as introducing a substitute. That is, it does not set up an
alternative of choice available to the Tax Commission but allows an alternative of necessity.
We can find no logic in a purely equal alternative, and yet we must give some significance
to the ‘or’ and the alternative it provides.”
4.

How is the casual excise tax remitted?

Department of Revenue Form ST-236, “Casual or Use Excise Tax Return,” is used to
compute the casual excise tax or use tax due on the transfer of a motor vehicle, motorcycle,
boat, motor, or airplane. The tax may be paid at the Department, or at a Department of
Motor Vehicles office when registering a motor vehicle or motorcycle, or at the Department
of Natural Resources when registering a boat or motor. Form ST-236 can be obtained from
the Department’s website at www.sctax.org. Information on the Department of Motor
Vehicles or the Department of Natural Resources can be found at www.myscgov.com.
SPECIFIC TRANSFERS NOT SUBJECT TO THE CASUAL EXCISE TAX
5.

What types of transfers are not subject to the casual excise tax?

The following transfers of motor vehicles, motorcycles, boats, motors, or airplanes are
excluded from the casual excise tax pursuant to Code Section 12-36-1710 and 12-36-1720:

3

6.

a.

transfers to members of the immediate family (i.e., spouse, parent, child, sister,
brother, grandparent, and grandchild);

b.

transfers to a legal heir, legatee, or distributee;

c.

transfers from an individual to a partnership upon formation, or from a
stockholder to a corporation upon formation;

d.

transfers to a licensed motor vehicle dealer or licensed motorcycle dealer for the
purpose of resale;

e.

transfers to a financial institution for the purpose of resale;

f.

transfers to any other secured party, as a result of repossession, for the purpose of
resale;

g.

transfers to the seller or secured party in partial payment (e.g., trade-ins);

h.

transfers where a sales or use tax has been paid on the transaction necessitating
the transfer (this includes sales tax paid to an auctioneer licensed as a retailer);

i.

transfers of motor vehicles, motorcycles, or airplanes specifically exempted by
Section 12-36-2120 from the sales or use tax (see Question 6 below);

j.

transfers that are a gift or prize (see Question 6 below); and,

k.

vessels registered and documented by the United States Commissioner of
Customs.

What transfers are exempt from the casual excise tax because they are exempt
from sales or use tax under Code Section 12-36-2120?
Below are examples of transfers that are exempt from sales and use tax under Code
Section 12-36-2120 and, therefore, exempt from the casual excise tax. These
examples illustrate the more frequent methods of transferring a motor vehicle,
motorcycle, boat, motor, airplane, or trailer; see Code Section 12-36-2120 for a
complete list of exemptions.
Sales to Nonresident Military Personnel Motor vehicles, as described below, or motorcycles sold to military personnel
stationed in South Carolina by reason of orders of the U.S. Armed Forces who are not
residents of South Carolina are exempt from South Carolina sales and use tax, and
casual excise tax, provided (1) a copy of Form ST-178, “Nonresident Military Tax
Exemption Certificate” is furnished to the seller or (2) a leave and earnings statement
from the appropriate department of the armed services is provided that designates the
state of residence of the buyer. This information must be furnished within ten days of
the sale.
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This exemption applies only to the sale of motor vehicles that are primarily designed
to carry passengers, such as cars, passenger vans, and sports utility vehicles (e.g.,
Broncos, Explorers, Troopers). Sales and use tax or the casual excise tax (whichever
is applicable) is due on sales of motor vehicles designed primarily to carry cargo, such
as trucks or cargo vans.
Sales to the Federal Government Sales of a motor vehicle, motorcycle, boat, motor, or airplane to the federal
government are exempt from sales or use taxes under Code Section 12-36-2120(2)
and also exempt from the casual excise tax. When agents of the federal government
purchase one of these items on behalf of the federal government, the purchase is not
subject to sales and use taxes providing the credit of the agent is not advanced or
risked, the purchase order discloses the purchase is made on behalf of the federal
government, title to the property vests in the federal government, and the vendor is
paid directly from the federal government.
Sales by the Federal Government Sales of a motor vehicle, motorcycle, boat, motor, or airplane by the federal
government are exempt from sales and use taxes under Code Section 12-36-2120(1)
and exempt from the casual excise tax.
Sales by, or Sales to, Federal Credit Unions –
Sales of a motor vehicle, motorcycle, boat, motor, or airplane by, or sales of such
property to, a federal credit union are exempt from sales and use taxes and the casual
excise tax. See South Carolina Attorney General Opinion #S-OAG-59 wherein it was
concluded that federally chartered credit unions are instrumentalities of the federal
government.
Transfers to and from an Insurance Company Vehicles that have been declared a total loss and are transferred to or from an
insurance company in settlement of a claim are exempt from casual excise tax and
sales and use taxes under Code Section 56-19-480. (See also SC Revenue Ruling #9313.)
Sales of Farm Machinery Airplanes used in planting, cultivating or harvesting farm crops (e.g., crop dusting) are
exempt from South Carolina sales and use tax and casual excise tax pursuant to Code
Section 12-36-2120(16). The tax, however, applies to automobiles or trucks used in
farming.

5

Gifts and Prizes The sales and use tax and casual excise tax do not apply to property transferred as a
gift or prize since there has not been a “sale” to the recipient. A gift includes a motor
vehicle, motorcycle, boat, motor, or airplane transferred by “love and affection”. (See
Code Section 12-36-1720 and SC Revenue Ruling #92-10 3 .)
Sale of Entire Business –
The casual excise tax and sales and use tax do not apply to depreciable assets, used in
the operation of a business when the entire business is sold by the owner, pursuant to
a written contract, and the purchaser continues operation of the business. For
example, if ABC Company, a retail florist business, sells it’s entire business (e.g., the
building, inventory, delivery trucks, goodwill, etc.) to XYZ Company, a retail gift
store business who will operate the floral business it purchased, then there is no sales
and use tax due on the sale of the delivery trucks. If however, ABC Company sold
only a portion of its assets (e.g., all of its delivery trucks), then ABC Company is
liable for the sales tax due on the sale of its delivery trucks. See Code Sections 12-361710(B)(3), 12-36-2120(42), and SC Revenue Advisory Bulletin #01-1.
USE TAX - GENERAL PROVISIONS
7.

What is the use tax and when is it imposed on sales of motor vehicles,
motorcycles, boats, motors, airplanes, trailers, semitrailers, or pole trailers?

The use tax is imposed on the storage, use, or consumption in South Carolina of motor
vehicles, motorcycles, boats, motors, airplanes, trailers, semitrailers, or pole trailers
purchased from retailers who are not engaged in business in South Carolina. (See Code
Section 12-36-1310.)
8.

What is the use tax rate?

The use tax is 5% of the sales price of the motor vehicle, motorcycle, boat4 , airplane,
recreational vehicle, a trailer or semitrailer capable of being pulled only by a truck tractor, or
any other vehicle subject to the maximum tax. However, Code Section 12-36-2110 provides
that the use tax may not exceed $300 on these transactions. (See Questions 11 and 12
concerning the maximum tax.)

3

While the conclusions in SC Revenue Ruling #90-10 are still valid, it should be noted that SC Revenue
Ruling #90-10 was issued prior to the increase in the general state sales and use tax rate from 5% to 6%.
When reviewing SC Revenue Ruling #90-10, taxpayers should keep in mind the state tax rates discussed in
Question 2 and Question 8 of this document.
4
A boat sold with a motor permanently attached to it is subject to the use tax at the lesser of 5% of the sales
price or $300. A boat motor is considered permanently attached to a boat if it is (1) an inboard motor or (2)
an outboard motor sold mounted to the boat, connected to a permanent steering mechanism, and included in
the price of the boat.

6

The use tax is 6% of the sales price of a motor that is purchased alone (not permanently
attached to the boat) 5 , pole trailer, trailer or semitrailer capable of being pulled by vehicles
other than a truck tractor, boat trailer, or any other vehicle not subject to the maximum tax.
See Question 13 for more information concerning the purchase of boats, motors, and boat
trailers, either individually or as a package.
Note: Any transaction subject to the maximum tax of $300 is taxed at a state rate of 5%
and is not subject to any local tax administered and collected by the Department o
Revenue on behalf of local jurisdictions. Any transaction not subject to the maximum tax
of $300 is taxed at a state rate of 6% and is subject to any local tax administered and
collected by the Department of Revenue on behalf of local jurisdictions.
9.

Is a credit allowed for state and local sales or use tax paid in other states?

Yes, South Carolina allows a credit against the use tax due in South Carolina for the state
and local sales or use tax due and paid in another state provided the purchaser has proof that
the sales or use tax was due and paid. See Code Section 12-36-1310(C).
SPECIFIC TRANSFERS NOT SUBJECT TO THE USE TAX
10.

What sales or purchases of motor vehicles, motorcycles, boats, motors, airplanes,
trailers, semitrailers, or pole trailers are not subject to the use tax?

The following transfers of motor vehicles, motorcycles, boats, motors, airplanes, trailers,
semitrailers, or pole trailers are not subject to the use tax:
a.

Purchases from another state that have been substantially used outside South
Carolina by the purchaser before being titled, registered or licensed in South
Carolina. The purchaser must show proof that the property was titled, registered
or licensed in another state. (See Code Section 12-36-1310 and Regulation 117320.1.)

b.

Purchases in which the purchaser has a receipt from an out of state seller or
retailer authorized to collect South Carolina’s use tax that shows the seller has
collected the tax from the purchaser. (See Code Section 12-36-1330.)

c.

Sales to dealers for resale. The liability for tax will shift from the seller to the
purchaser if the seller receives a properly completed Form ST-8A, “Resale
Certificate”, from the purchaser. (See Code Sections 12-36-120, 12-36-1370, and
SC Revenue Procedure #08-2.)

5

A boat sold with a motor permanently attached to it is subject to the use tax at the lesser of 5% of the sales
price or $300. A boat motor is considered permanently attached to a boat if it is (1) an inboard motor or (2)
an outboard motor sold mounted to the boat, connected to a permanent steering mechanism, and included in
the price of the boat. .

7

d.

Sales to nonresident military personnel, sales to, and sales by, the federal
government or federal credit union, transfers to or from an insurance company of
vehicles declared a total loss, sales of airplanes used in farming as provided in
Question 6, sales of an entire business as provided in Code Section 12-362120(42), and any sale otherwise exempt under Code Section 12-36-2120.

THE MAXIMUM TAX - GENERAL PROVISIONS
11.

What transfers are subject to a maximum tax?

Code Section 12-36-2110 provides that the maximum tax imposed by Chapter 36 (Sales and
Use Tax Act) is $300 for sales or leases of each:
a.

aircraft;

b.

motor vehicle; (SC Revenue Advisory Bulletin #00-3 concluded that all terrain
vehicles and legend race cars are not motor vehicles subject to the $300
maximum tax; transfers of such property are subject to the State 6% sales tax and
any applicable local taxes.)

c.

motorcycle (on-road or off-road);

d.

boat (See Question 13 for a complete explanation.) Note: SC Revenue Ruling

04-10 concluded that the sale of personal watercraft, such as a jet ski, is the

transfer of a “boat” subject to the $300 maximum tax;

e.

trailer or semitrailer capable of being pulled only by a truck tractor;

f.

recreational vehicle, including tent campers, travel trailers, park trailers, motor
homes and fifth wheels;

g.

self-propelled light construction equipment with compatible attachments limited
to a maximum of 160 net engine horsepower; and,

h.

horse trailers.

Code Section 12-36-2110 provides that the maximum tax imposed is $300 for each sale. In
order for a lease to qualify for the $300 maximum tax, a lease must specifically state the
term of, and remain in force for, a period in excess of 90 continuous days.
NOTE: The local sales and use taxes do not apply to these sales that are subject to the $300
maximum tax.
12.

What transfers may exceed the $300 maximum tax?

The maximum tax does not apply to sales or leases of:

8

a.

trailers or semitrailers capable of being pulled by vehicles other than a truck
tractor;

b.

pole trailers;

c.

boat trailers (See Question 13 for a complete explanation); and,

d.

all terrain vehicles or legend race cars (See SC Revenue Advisory Bulletin #0003. These vehicles cannot be licensed for use on South Carolina highways.)

NOTE: The local sales and use taxes apply to these sales that are not subject to the $300
maximum tax.
TRANSFERS OF BOATS, MOTORS, AND BOAT TRAILERS
13.

What is the sales, use, or casual excise tax rate when a boat, motor, or boat
trailer is sold individually or as a complete package?

SC Revenue Ruling #08-x sets forth the following guidelines concerning the tax rates
applicable to the sale of boats, motors, or boat trailers:
a.

A boat sold alone is taxed at the lesser of 5% of the purchase price or $300.

b.

A motor sold alone is taxed at 6% of the purchase price.

c.

A boat trailer sold alone is taxed at 6% of the purchase price. (As stated in
Question 1, the casual excise tax does not apply to boat trailers.)

d.

A boat sold with a motor permanently attached to it is taxed at the lesser of 5% of
the purchase price of the boat and motor or $300.

e.

A boat trailer sold in conjunction with the sale of a boat is taxed at 6% of the
purchase price of the boat trailer. The boat is taxed at the lesser of 5% of the
purchase price of the boat or $300. (Boat trailers do not include trailers which
must be pulled by truck tractors or boat trailers which are used by manufacturers
to transport boats to dealerships).

f.

A boat trailer sold in conjunction with the sale of a boat that has a permanently
attached motor is taxed at 6% of the purchase price of the trailer. The boat with a
permanently attached motor is taxed at the lesser of 5% of the purchase price of
the boat and motor or $300. (Note: If the price of the boat trailer is not separately
stated from the price of the boat and motor, the boat trailer is subject to tax at 6%
of the fair market value of the boat trailer. If the price of the boat trailer is
separately stated from the price of the boat and motor, the price breakdown must
be reasonable and supported by the records of the taxpayer, otherwise the trailer
will be taxed at 6% of its fair market value.)

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NOTE: A boat motor is considered permanently attached to a boat if it is (1) an inboard
motor or (2) an outboard motor sold mounted to the boat, connected to a permanent steering
mechanism, and included in the price of the boat.
SPECIAL PROVISION FOR PERSONS 85 OR OLDER
For purposes of the casual excise tax and the sales and use tax, the tax rate imposed on a
purchase by an individual 85 years old or older who titles or registers a motor vehicle,
motorcycle, boat 6 , airplane, recreational vehicle, a trailer or semitrailer capable of being
pulled only by a truck tractor, or any other vehicle subject to the maximum tax for his own
personal use is 4%, instead of 5%. The maximum tax on these transactions is $300. (See
Code Section 12-36-2640.)
The tax rate imposed on a purchase by an individual 85 years old or older who titles or
registers a motor that is purchased alone (not permanently attached to the boat) 7 , pole
trailer, trailer or semitrailer capable of being pulled by vehicles other than a truck tractor,
boat trailer, or any other vehicle not subject to the maximum tax for his own personal use is
5%, instead of 6%.
Note: Any transaction subject to the maximum tax of $300 is not subject to any local tax
administered and collected by the Department of Revenue on behalf of local jurisdictions.
Any transaction not subject to the maximum tax of $300 is subject to any local tax
administered and collected by the Department of Revenue on behalf of local jurisdictions.
(See Code Section 12-36-2640 and SC Revenue Ruling #08-6.)
LOCAL SALES AND USE TAXES
The South Carolina Code allows the imposition of various types of local sales and use taxes.
As such, the citizens of a county, depending on the needs within the county, may impose
one or several local sales and use taxes (e.g., local option, capital projects, etc.) As with the
State sales and use tax, there are certain exemptions from local sales or use taxes. The
Department publishes a chart with the various types of local sales and use taxes collected by
the Department and the exemptions allowed under each tax. As of the date of this advisory
opinion, South Carolina Information Letter #07-4 contains the most recently published
information; updated information will be published on the Department’s website at
http://www.sctax.org/Tax+Policy/Policy/salesIndex.htm as warranted.

6

A boat sold with a motor permanently attached to it is subject to the use tax at the lesser of 5% of the sales
price or $300. A boat motor is considered permanently attached to a boat if it is (1) an inboard motor or (2)
an outboard motor sold mounted to the boat, connected to a permanent steering mechanism, and included in
the price of the boat.
7
See footnote #6.

10

DEFINITIONS
For purposes of computing the casual excise tax, maximum tax, or use tax, Code Section
56-3-20 provides the following definitions of motor vehicle, motorcycle, vehicle, trailer,
semitrailer, pole trailer, and truck tractor:
Motor Vehicle - Every vehicle which is self-propelled, except mopeds, and every vehicle
which is propelled by electric power obtained from overhead trolley wires, but not operated
upon rails.
Motorcycle – Every motorcycle having no more than two permanent functional wheels in
contact with the ground or trailer and having a saddle for the use of the rider, but excluding a
tractor.
Vehicle - Every device in, upon or by which any person or property is or may be transported
or drawn upon a highway, except devices moved by human power or used exclusively upon
stationary rails or tracks.
Trailer - Every vehicle with or without motive power, other than a pole trailer, designed for
carrying persons or property and for being drawn by a motor vehicle and so constructed that
no part of its weight rests upon the towing vehicle.
Semitrailer - Every vehicle with or without motive power, other than a pole trailer, designed
for carrying persons or property and for being drawn by a motor vehicle and so constructed
that some part of its weight and that of its load rests upon or is carried by another vehicle.
Pole Trailer - Every vehicle without motive power designed to be drawn by another vehicle
and attached to the towing vehicle by means of a reach or pole or by being boomed or
otherwise secured to the towing vehicle and ordinarily used for transporting long or
irregularly shaped loads such as poles, pipes or structural members capable, generally, of
sustaining themselves as beams between the supporting connections.
Truck Tractor - Every motor vehicle designed and used primarily for drawing other vehicles
and not constructed so as to carry a load other than a part of the weight of the vehicle and
load so drawn.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Ray N. Stevens
Ray N. Stevens, Director
, 2008
June 30
Columbia, South Carolina

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