What firearms and transaction charges were exempt during South Carolina's one-time Second Amendment sales tax holiday in November 2010?

Plain-English summary

South Carolina created a one-time sales tax holiday for qualifying handguns, rifles, and shotguns from 12:01 a.m. Friday, November 26, 2010 through midnight Saturday, November 27, 2010. The ruling expressly said the uncodified holiday would occur only in 2010 unless the General Assembly reenacted or codified it.

A qualifying firearm could be exempt when delivered and paid for during the two days, or when ordered, paid for, and accepted for immediate shipment or delivery during the holiday. Delivery and engraving charges connected with the exempt firearm were also exempt.

Ammunition, black powder, cases, holsters, locks, safes, magazines, sights, stocks, barrels, clothing, and other separately sold parts or accessories remained taxable. A part or attachment prepackaged with a qualifying firearm could be included in the exempt single transaction.

What this means for you

Researchers and taxpayers

This is historical guidance for a specific 2010 weekend, not evidence of a recurring current holiday.

Firearm retailers

The ruling addressed tax timing and reporting only. It specifically directed retailers to separately research federal, state, and local rules governing firearm sales, delivery, and shipment.

Tax professionals

The source issuance date is October 27, 2010, as shown in the signature block. November 27 was the final day of the holiday and caused the scraper's date misclassification.

Common questions

Q: What items were exempt?
A: Qualifying handguns under § 16-23-10(1), rifles, and shotguns.

Q: Was ammunition exempt?
A: No. Ammunition and other separately sold supplies and accessories were taxable.

Q: Could an online or special order qualify?
A: Yes, if ordered and paid for during the holiday and accepted by the retailer for immediate shipment or delivery.

Q: Did the holiday apply to business or government purchases and rentals?
A: The ruling said yes for qualifying items and transactions meeting its timing requirements.

Q: Is this holiday still available?
A: The ruling described it as a one-time 2010 exemption unless later reenacted or codified; this page does not establish any current exemption.

Citations and references

• Act 291 of 2010, Part 1B, § 89, Proviso 89.107 (temporary holiday)
• S.C. Code § 16-23-10(1) (handgun definition quoted in the ruling)

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR10-9.pdf

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 #10-9

SUBJECT:

Second Amendment Sales Tax Holiday for 2010
(Sales and Use Tax)

EFFECTIVE DATE:

Beginning 12:01 a.m. on the Friday after Thanksgiving 2010 and
ending at twelve midnight the following Saturday.

SUPERSEDES:

SC Revenue Ruling #09-14 and all previous advisory opinions
and any oral directives in conflict herewith.

REFERENCES:

Act 291 of 2010, Part 1B, Section 89, Proviso 89.107 (Enacted
June 2010)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (Supp. 2009)
SC Revenue Procedure #09-3

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.

LAW:
The General Assembly enacted a Second Amendment Sales Tax Holiday for 2010 in the
2010-2011 State Appropriations Act, Act 291 of 2010, Part 1B, Section 89, Proviso
89.107, which states:
The gross proceeds of sales or sales price of handguns as defined pursuant
to Section 16-23-10(1) of the 1976 Code, rifles, and shot guns is exempt
from the taxes imposed pursuant to Chapter 36, Title 12 of the 1976 Code
and Chapter 10, Title 4 of the 1976 Code for sales occurring from 12:01
a.m., Friday, November 26, 2010, through twelve midnight, Saturday,
November 27, 2010.
Note: This Second Amendment Sales Tax Holiday is uncodified and will only take place
in 2010, unless the General Assembly re-enacts the temporary proviso or codifies this
sales tax holiday exemption.

1

In addition, although the above provision expressly includes only those local sales and
use taxes imposed under Chapter 10, Title 4 of the 1976 Code, the Second Amendment
Sales Tax Holiday for 2010 will also apply to other local sales and use taxes administered
and collected by the SC Department of Revenue since all laws enacting local sales and
use taxes require that such local taxes be administered and collected in the same manner
as the state sales and use tax.
EXEMPT ITEMS
The items listed below are the only items stated in the law to be exempt during the
“Second Amendment Sales Tax Holiday.”
The following items are exempt:
handguns as defined pursuant to Code Section 16-23-10(1) 1
rifles
shotguns
EXAMPLES OF NON-EXEMPT ITEMS
Any item that is not a handgun (as defined in Code Section 16-23-10(1)), rifle or shotgun
is subject to the tax, unless it is a part or attachment that is pre-packaged with a handgun,
rifle or shotgun. 2 The following are examples of items the Department considers to be
non-exempt during the “Second Amendment Sales Tax Holiday.” This list is not allinclusive.
Non-exempt items include the following:
ammunition
archery supplies
black powder
books

1

Code Section 16-23-10(1) defines a “handgun” as “any firearm designed to expel a projectile and
designed to be fired from the hand, but shall not include any firearm generally recognized or classified as
an antique, curiosity, or collector's item, or any that does not fire fixed cartridges.”
2

Some of the items in the non-exempt list are parts and attachments to handguns, rifles or shotguns (e.g.,
gun barrels, magazines, sights, stocks) and others are not (e.g., ammunition, black powder, carrying cases,
holsters, locks, clothing). Since sales tax is a "transaction tax," and since the law did not exempt parts or
attachments (e.g., gun barrels, magazines, sights, stocks) or supplies and accessories (e.g., ammunition,
black powder, carrying cases, holsters, locks, clothes), then the sale of a part or attachment, by itself, or the
sale of a supply or accessory, by itself, would not be exempt during the “Second Amendment Sales Tax
Holiday.” However, if a part or attachment to a handgun, rifle or shotgun (e.g., a sight) is pre-packaged
with a handgun, rifle or shotgun, then that is one transaction to purchase a handgun, rifle or shotgun and the
sale of the pre-packaged unit would be exempt, provided the transaction meets all the requirements of the
exemption as set forth in the law.

2

carrying cases
cleaning supplies
gun barrels
gun safes
handguns generally recognized or classified as antique, curiosity, or collector's items
handguns that do not fire fixed cartridges
holsters
hunting clothes
knives
lasers
lights
locks
magazines
range gear
reloading supplies
safety vests
sights
sporting clays
stocks
targets
toy handguns
toy rifles
toy shotguns
videos
QUESTIONS AND ANSWERS:
The following answers represent the department's opinion with respect to various issues
concerning the "Second Amendment Sales Tax Holiday:"
(1) When is the "Second Amendment Sales Tax Holiday?”
The two-day “Second Amendment Sales Tax Holiday” for 2010 will be held beginning at
12:01 a.m., Friday, November 26, 2010, through twelve midnight, Saturday, November
27, 2010.
(2) Must the eligible item being sold be delivered to the customer during the two-day
“Second Amendment Sales Tax Holiday” in order for the exemption to apply?
An item qualifying for the “Second Amendment Sales Tax Holiday” will be exempt if:
(a) the eligible item is both delivered to and paid for by the customer during the
two days of the “Second Amendment Sales Tax Holiday”; or
(b) the eligible item is ordered and paid for by the customer and the order is
accepted by the retailer during the “Second Amendment Sales Tax Holiday” for
immediate shipment or delivery, even if delivery is made after the “Second
Amendment Sales Tax Holiday.” An order is accepted by the retailer when it has
taken an action to fill the order for immediate shipment or delivery.
3

Actions to fill an order include placing an "in date" stamp on a mail order or
assigning an order number to a telephone order. An order is for immediate
shipment or delivery when delayed shipment or delivery is not requested by the
customer and is for immediate shipment or delivery, notwithstanding that the
shipment or delivery may be delayed because of a backlog of orders or because
stock is currently unavailable to, or on back order by, the retailer.
(3) Does the “Second Amendment Sales Tax Holiday” apply to sales made by mail order,
Internet or similar retailers?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs
during the two days of the “Second Amendment Sales Tax Holiday” as discussed in
Question #2.
(4) Does the “Second Amendment Sales Tax Holiday” apply to custom or special orders?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs
during the two days of the “Second Amendment Sales Tax Holiday” as discussed in
Question #2.
(5) Does the “Second Amendment Sales Tax Holiday” apply to sales made to a trade or
business (e.g., security firm, etc.) or to a government agency (e.g., police department,
sheriff’s office, etc.)?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs
during the two days of the “Second Amendment Sales Tax Holiday” as discussed in
Question #2.
(6) Does the “Second Amendment Sales Tax Holiday” apply to rentals?
Yes, provided the item rented is one qualifying for the exemption, the rental agreement is
signed during the two days of the “Second Amendment Sales Tax Holiday” whereby the
customer is bound by the rental agreement (creating an obligation to pay the periodic
rental payments), and the rental transaction meets all the requirements discussed in
Question #2.
Note: If the rental agreement is later renewed, then the renewal, and all periodic
payments under the renewal, are subject to the sales and use tax.
(7) Are delivery charges subject to the tax during the “Second Amendment Sales Tax
Holiday?”
Most delivery charges are included in the tax base for the sales tax and the use tax. If an
item qualifies for the exemption under the “Second Amendment Sales Tax Holiday,” then
all delivery charges associated with that sale are exempt. For example, if a retailer sells a
rifle during the sales tax holiday for $2,000 and also charges $55 to deliver the rifle, then
the entire charge of $2,055 is exempt from the sales or use tax.
4

(8) Are engraving charges for handguns, rifles, and shotguns sold during the “Second
Amendment Sales Tax Holiday” subject to the tax?
If an item qualifies for the exemption under the “Second Amendment Sales Tax
Holiday,” then all engraving charges associated with that sale are exempt. For example, if
a retailer sells a rifle during the “Second Amendment Sales Tax Holiday” for $2,000 and
also charges $50 to engrave a name on the stock, then the entire charge of $2,050 is
exempt from the sales or use tax.
(9) How are exchanges of items purchased during the "sales tax holiday" handled when
returned after the “Second Amendment Sales Tax Holiday?”
If a customer purchases an exempt item during the “Second Amendment Sales Tax
Holiday” and later exchanges the item for the same item (different caliber, different
brand, etc.) with no additional payment due as a result of the exchange, then no additional
tax will be due even if the exchange is made after the “Second Amendment Sales Tax
Holiday.”
For example: If the customer purchased a $500 handgun during the “Second
Amendment Sales Tax Holiday” and later exchanges it for another handgun ($500
or less) but one of a different caliber, then no additional tax will be due even if the
exchange is made after the “Second Amendment Sales Tax Holiday.”
However, if the customer returns the item after the “Second Amendment Sales Tax
Holiday” and is allowed a credit for the sales price of the item that can be used to
purchase of a different item, the sales or use tax will apply to the sale of the newly
purchased item.
For example: If the customer purchased a $500 handgun during the “Second
Amendment Sales Tax Holiday” and later returns it after the “Second Amendment
Sales Tax Holiday” and receives a credit for $500 that is used to purchase a rifle,
shotgun or other item, then the sales or use tax will apply to the sale of the newly
purchased rifle, shotgun or other item.
(10) How are exchanges of items purchased before the “Second Amendment Sales Tax
Holiday” handled when returned during the “Second Amendment Sales Tax Holiday?”
If a customer purchases an item before the “Second Amendment Sales Tax Holiday” and
later exchanges the item during the “Second Amendment Sales Tax Holiday” for the
handgun, rifle or shotgun that qualifies for the exemption, no additional tax will be due
since the item received in the exchange is one that qualifies for the exemption.
(11) How will the “Second Amendment Sales Tax Holiday” apply to rain checks?
The issuance of a rain check during the “Second Amendment Sales Tax Holiday” will not
qualify an item for the exemption if the item is actually purchased after the “Second
Amendment Sales Tax Holiday.”

5

Items that qualify for the exemption which are purchased during the “Second
Amendment Sales Tax Holiday” using a rain check will be exempt from sales or use tax
regardless of when the rain check was issued.
(12) Does an item placed on lay-away during the “Second Amendment Sales Tax
Holiday” qualify for the exemption?
Yes, provided the item sold is one qualifying for the exemption, the sale occurs during
the two days of the “Second Amendment Sales Tax Holiday, ” the terms of the lay away
agreement create an absolute obligation to pay for the customer, and the sale meets the
requirements discussed in Question #2.
Note: If the terms of the lay away agreement do not create an absolute obligation to pay
for the customer, then the sale is subject to the sales and use tax even if it occurs during
the “Second Amendment Sales Tax Holiday” since the sale has not met the requirements
of the exemption as discussed in Question #2.
(13) Does the “Second Amendment Sales Tax Holiday” apply to local sales and use taxes
collected by the department on behalf of counties that have imposed such local sales and
use taxes?
Yes, provided the item sold is one qualifying for the exemption and the sale occurs
during the two days of the “Second Amendment Sales Tax Holiday” as discussed in
Question #2. 3
(14) How should retailers report sales exempt during the “Second Amendment Sales Tax
Holiday?”
With respect to the return filed for November, all sales, whether or not exempt from the
tax, should be reported on Line 1 of the Worksheet on the back of the sales and use tax
return. Sales of items exempt from the tax during the “Second Amendment Sales Tax
Holiday” should be listed as one of the deductions in the space provided for allowable
deductions (i.e., Line 4 of the ST-3 Worksheet) on the sales and use tax return and listed
as “Second Amendment Sales Tax Holiday Exemption."
(15) Can retailers elect not to participate in the “Second Amendment Sales Tax Holiday”
and collect the sales tax from their customers on eligible items during the two days of the
“Second Amendment Sales Tax Holiday?”
No. Retailers may only "pass on" to their customers sales taxes that are legally due.
3

Although the temporary proviso for the “Second Amendment Sales Tax Holiday” expressly includes only
those local sales and use taxes imposed under Chapter 10, Title 4 of the 1976 Code, the Second
Amendment Sales Tax Holiday for 2010 will also apply to all other local sales and use taxes administered
and collected by the SC Department of Revenue since all laws enacting local sales and use taxes require
that such local taxes be administered and collected in the same manner as the state sales and use tax.

6

The department may revoke any and all licenses issued by the department and held by a
retailer, and impose any applicable penalties, if the retailer passes on sales taxes that are
not legally due.
(16) Is the sale of an exempt item on a "90 days same as cash" basis exempt from tax if
purchased during the “Second Amendment Sales Tax Holiday?”
Yes, provided the contract obligating the buyer to pay is signed during the “Second
Amendment Sales Tax Holiday” and delivery of the item is made during the “Second
Amendment Sales Tax Holiday” or the retailer accepts the order during the “Second
Amendment Sales Tax Holiday” for immediate shipment, even if delivery is made after
“Second Amendment Sales Tax Holiday.” See Question #2 for what is meant by
"immediate shipment or delivery."
If you have any questions, you may call the Department of Revenue at (803) 898-5788 or
e-mail the Department at [email protected].
Note: The advisory opinion only concerns the application of the “Second
Amendment Sales Tax Holiday” exemption for certain handguns, rifles and
shotguns and does not concern the laws and regulations for the sale, delivery or
shipment of such handguns, rifles, or shotguns by retailers. Retailers or other
persons with non-tax questions concerning federal, state or local laws or regulations
regarding the sale, or method of shipment or delivery, of a handgun, rifle or shotgun
should research such laws or regulations, contact the applicable federal, state or
local authorities or obtain professional advice concerning such non-tax matters.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Ray N. Stevens
Ray N. Stevens, Director
October 27

2010

Columbia, South Carolina

7